West Australia’s Economic Regulation Authority (ERA) released its decision on the Goldfields Gas Transmission Pipeline (GGT) access arrangement today. Australian Pipeline Trust (APA) owns 88.12 per cent of the GGT.
APA Chief Executive Officer-elect, Mick McCormack, said APA is disappointed with the decision and is likely to seek a number of changes to it.
“Our initial view is that while the ERA has increased the initial capital base by $20 million up to $500 million as at 31 December 1999, it does not appear to have adequately addressed the risks faced by GGT and this has flowed into the calculation of the permitted rate of return.
“The ERA has also made incorrect assumptions about the proper calculation of revenue received since the commissioning of the pipeline”.
APA has several options at this stage in the process including, resubmitting the access arrangement and approaching the WA government under the State Agreement.
“We believe we will be able to demonstrate to the ERA that the GGT should be permitted to recover higher revenues than those indicated by the decision.
“The decision as it stands, will not affect revenues for this financial year. The impact on future revenues will depend on the final access arrangement to be approved by the ERA.
“There are good growth prospects for the GGT and early finalisation of the access arrangement process will allow several of those prospects to mature in the near future,” Mr McCormack said.
GGT has until 14 June 2005 to respond to the decision, including lodging a revised access arrangement addressing the matters in the decision. The ERA will then decide whether to accept that revised access arrangement or whether to establish its own access arrangement.

Mick McCormack
Acting Chief Executive Officer