Western Australian Current Regulations Western Australian Current Regulations Sections 8.15 to 8.29
then describe the principles to be applied in adjusting the value of the
Capital Base over time as a result of additions to the capital assets that are
used to provide Services and as a result of capital assets ceasing to be used
for the delivery of Services. Consistently with those principles, the Capital
Base at the commencement of each Access Arrangement Period after the first,
for the Cost of Service methodology, is determined as:
(a) the
Capital Base at the start of the immediately preceding Access Arrangement
Period; plus
(b)
subject to sections 8.16(b) and sections 8.20 to 8.22, the New Facilities
Investment or Recoverable Portion (whichever is relevant) in the immediately
preceding Access Arrangement Period; less
(c)
Depreciation for the immediately preceding Access Arrangement Period; less
(d)
Redundant Capital identified prior to the commencement of that Access
Arrangement Period,
and for the IRR or NPV
methodology, is determined as:
(e)
subject to sections 8.16(b) and sections 8.20 to 8.22, the Residual Value
assumed in the previous Access Arrangement Period; less
(f)
Redundant Capital identified prior to the commencement of that Access
Arrangement Period,
subject, irrespective
of which methodology is applied, to such adjustment for inflation (if any) as
is appropriate given the approach to inflation adopted pursuant to
section 8.5A.
[Section 8.9 amended: Gazette 7 January 2000 p.
62; 2 May 2003 p. 1524-5.]