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We have been asked to investigate and advise on appropriate pricing arrangements for the NSW grain line network as it is defined in the NSW Grain Freight Review.

This draft report and draft determination set out and explains our draft decisions on changes in regulated electricity retail prices from 1 July 2011.

This draft report considers the impact of moving to a post-tax cost of capital approach using an effective rather than a statutory tax rate.

In calculating a regulated business’s costs for the purpose of setting prices we generally include an allowance for a return on capital. This requires us to estimate a weighted average cost of capital (WACC).