Western Australian Current Regulations Western Australian Current Regulations By way of example, the
Rate of Return may be set on the basis of a weighted average of the return
applicable to each source of funds (equity, debt and any other relevant source
of funds). Such returns may be determined on the basis of a well accepted
financial model, such as the Capital Asset Pricing Model. In general, the
weighted average of the return on funds should be calculated by reference to a
financing structure that reflects standard industry structures for a going
concern and best practice. However, other approaches may be adopted where the
Relevant Regulator is satisfied that to do so would be consistent with the
objectives contained in section 8.1.