Discussion Paper - Review of Rate of Return under the NSW Rail Access Undertaking - February 2009

IPART has released a rate of return discussion paper to facilitate discussion at the stakeholder hearing into its rail access review of the rate of return and remaining mine life from 1 July 2009. The revised rate of return is to be applied to the regulatory asset base to yield a return on rail infrastructure of the coal network for the five years commencing 1 July 2009. Under the NSW rail access undertaking, the rate of return is part of the calculation of costs that sets a revenue ceiling for Railcorp and ARTC. The revenue ceiling also includes operating costs and depreciation.