Gas Access Arrangement Review 20032007

1
Gas Access Arrangement Review (2003-2007)
Draft Decision August 13, 2002
2
Overview

• Key Issues
• Capital expenditure 2003 -2007
• Capital expenditure 2002
• Operating expenditure 2003 - 2007

3
Capital Expenditure 2003 -2007

• TXU Networks asset management plan requires
  expenditure of 230M to
• meet customer demand
• reinforce the network and
• ensure safety requirements
• are at least met.

4
Capital Expenditure 2002

• TXU Networks is spending 41M in 2002 to
  efficiently prudently
• meet customer demand reinforce the network,
  while ensuring customer safety requirements are
  met and
• deliver imposed full retail contestability
  requirements, deemed to be anticipated
• This expenditure should be added to the
  regulatory asset base for 2003 to 2007

5
Operating expenditure 2003 -2007

• TXU Networks forecasts include efficient
  prudent levels of expenditure for the education
  of the public and promotion of natural gas
• This expenditure should be included in the
  revenue requirement for 2003 to 2007

6
Operating Maintenanceexpenditure - step change

• Metering Pending
• GSL scheme ?
• Licence fees ?
• Marketing X
• Customer service X
• Insurance premium X
• Self Insurance X

7
Conclusion

• Capital expenditure 2003 - 2007 of 230M is
  required to meet customer demand and safety
  standards
• Capital expenditure 2002 is efficient prudent
  and should be rolled into the opening RAB
• Allowance for promotion education expenditure
  is in the long term interests of current and
  future customers