GDB Information Disclosure Requirements Information Templates for Schedules 1 10

Transcription

1 GDB Information Disclosure Requirements Information Templates for Schedules 1 10 Vector gas distribution business Disclosure Date 4 December 2014 Disclosure Year (year ended) Templates for Schedules 1 10 Template Version 3.0. Prepared 14 April GDB Information Disclosure 2014 schedules 1 10 (public).xlsx CoverSheet

2 Table of Contents Schedule Description 1 Analytical Ratios 2 Report on Return on Investment 3 Report on Regulatory Profit 4 Report on Value of the Regulatory Asset Base (Rolled Forward) 5a Report on Regulatory Tax Allowance 5b Report on Related Party Transactions 5c Report on Term Credit Spread Differential Allowance 5d Report on Cost Allocations 5e Report on Asset Allocations 5h Report on Transitional Financial Information 6a Report on Capital Expenditure for the Disclosure Year 6b Report on Operational Expenditure for the Disclosure Year 7 Comparison of Forecasts to Actual Expenditure 8 Report on Billed Quantities and Line Charge Revenues (by Price Component) 9a Asset Register 9b Asset Age Profile 9c Report on Pipeline Data 9d Report on Demand 10a Report on Network Reliability and Interruptions 10b Report on Network Integrity and Consumer Service 2 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx TOC

3 Disclosure Template Guidelines for Information Entry These templates have been prepared for use by GDBs when making disclosures under subclauses 2.3.1, , , 2.5.1, and of the Gas Distribution Information Disclosure Determination Disclosures must be made available to the public within 6 months after the end of the disclosure year and a copy provided to the Commission within 5 working days of being disclosed to the public. Version 3.0 templates These templates correct formula errors contained in previous versions of the templates. A list of the formula corrections can be found in the ID issues register under "Excel Template Issues v2.x (2013)" in the category column. We have included additional guidance for schedules 2, 4 and 5a indicating where information for certain rows are expected to be sourced from. and Dates To prepare the templates for disclosure, the supplier's company name should be entered in cell C8, the date of the last day of the current (disclosure) year should be entered in cell C12, and the date on which the information is disclosed should be entered in cell C10 of the CoverSheet worksheet. The cell C12 entry (current year) is used to calculate disclosure years in the column headings that show above some of the tables and in labels adjacent to some entry cells. It is also used to calculate the For year ended date in the template title blocks (the title blocks are the light green shaded areas at the top of each template). The cell C8 entry (company name) is used in the template title blocks. Dates should be entered in day/month/year order (Example "1 April 2013"). Data Entry Cells and Calculated Cells Data entered into this workbook may be entered only into the data entry cells. Data entry cells are the bordered, unshaded areas (white cells) in each template. Under no circumstances should data be entered into the workbook outside a data entry cell. In some cases, where the information for disclosure is able to be ascertained from disclosures elsewhere in the workbook, such information is disclosed in a calculated cell. Under no circumstances should the formulas in a calculated cell be overwritten. Validation Settings on Data Entry Cells To maintain a consistency of format and to help guard against errors in data entry, some data entry cells test keyboard entries for validity and accept only a limited range of values. For example, entries may be limited to a list of category names, to values between 0% and 100%, or either a numeric entry or the text entry N/A. Where this occurs, a validation message will appear when data is being entered. These checks are applied to keyboard entries only and not, for example, to entries made using Excel s copy and paste facility. Conditional Formatting Settings on Data Entry Cells Schedule 9b columns Z to AD (2013 to 2017) contain conditional formatting. The data entry cells for future years are hidden (are changed from white to yellow). Schedule 9b cells AG10 to AG637 will change colour if the total assets at year end for each asset class does not equal the corresponding values in column H in Schedule 9a. Schedule 9c cell P30 will change colour if P30 (overhead circuit length by terrain) does not equal P18 (overhead circuit length by operating voltage). Schedule 4 cells Q97:Q103 and Q105 will change colour if the RAB values do not equal the corresponding values in table 4(ii). Inserting Additional Rows and Columns The templates for schedules 4, 5b, 5c, 5d, 5e, 5i, 6a, 8, 9c, 9d, 10a and 10b may require additional rows to be inserted in tables marked 'include additional rows if needed' or similar. Additional rows in schedules 5c, 6a, 9c and 9d must not be inserted directly above the first row or below the last row of a table. This is to ensure that entries made in the new row are included in the totals. Schedules 5d and 5e may require new cost or asset category rows to be inserted in allocation change tables 5d(iii) and 5e(ii). Accordingly, cell protection has been removed from row 71 of each template to allow blocks of rows to be copied. The four steps to add new cost category rows to table 5d(iii) and table 5e(ii) are: Select Excel rows 62:69 of the relevant template, copy, select Excel row 71, then insert copied cells. The template for schedule 8 may require additional columns to be inserted between column M and Q. To avoid interfering with the title block entries, these should be inserted to the left of column N. If inserting additional columns, the formulas for standard consumers total, nonstandard consumers totals and total for all consumers will need to be copied into the cells of the added columns. The formulas can be found in the equivalent cells of the existing columns. 3 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx Guidelines

4 Disclosures by SubNetwork Schedules 8, 9a, 9b, 9c, 9d, 10a and 10b must be completed for the network and for each subnetwork. A copy of the schedule worksheet(s) must be made for each subnetwork and named accordingly. Schedule References The references labelled '' in the leftmost column of each template are consistent with the row references in the Gas Distribution ID Determination 2012 (as issued on 1 October 2012). They provide a common reference between the rows in the determination and the template. Due to page formatting, the row reference sequences contained in the determination schedules are not necessarily contiguous. Description of Calculation References Calculation cell formulas contain links to other cells within the same template or elsewhere in the workbook. Key cell references are described in a column to the right of each template. These descriptions are provided to assist data entry. Cell references refer to the row of the template and not the schedule reference. Worksheet Completion Sequence Calculation cells may show an incorrect value until precedent cell entries have been complated. Data entry may be assisted by completing the schedules in the following order: 1. Coversheet 2. Schedules 5a 5e 3. Schedules 6a and 6b 4. Schedule 8 5. Schedule 3 6. Schedule 4 7. Schedule 2 8. Schedule 7 9. Schedules 9a 9d 10. Schedules 10a and 10b Changes to disclosure year 2013 Clauses to of the Gas Distribution ID Determination 2012 does not apply for disclosure years 2014 and onwards. GDBs do not need to complete transitional schedule 5h and this schedule has been excluded from this version of the templates. All schedules in this workbook must now be completed in full and publicly disclosed. Schedule 2: Report on Return on Investment The ROI calculations are performed in this template. All suppliers must complete tables 2(i) Return on Investment and 2(ii) Information Supporting the ROI. Only suppliers who meet either of the two thresholds set out in subclause of the Gas Distribution Information Disclosure Determination 2012 need to complete table 2(iii) Information Supporting the Monthly ROI. We expect that most suppliers will generally not meet either threshold. You will need to work out if you met either threshold using your own tools (e.g. Excel) and do not need to disclosure these calculations. If you met either threshold you will need to provide a breakdown of five cash flow items on a month by month basis, as well as your opening revenue related working capital. The definitions for these items are the same as for the rest of the schedules. The values for assets commissioned and asset disposals should relate to the RAB (not the unallocated RAB). The Excel worksheet uses several calculated cells beyond the rightmost edge of the template to calculate the monthly The prior year comparison information in the table 2(i) columns labelled CY1 and CY2 should be completed by copying the results from the previous year's disclosure. Schedule 8: Report on Billed Quantities and Line Charge Revenues This template should be completed in respect of each consumer groups or price category code (as applicable) that applied in the relevant disclosure year. The 'Average number of ICPs in disclosure year' column entries should be the arithmetic mean of monthly total ICPs (at month end). 4 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx Guidelines

5 SCHEDULE 1: ANALYTICAL RATIOS Vector gas distribution business This schedule calculates expenditure, revenue and service ratios from the information disclosed. The disclosed ratios may vary for reasons that are company specific and, as a result, must be interpreted with care. The Commerce Commission will publish a summary and analysis of information disclosed in accordance with the ID determination. This will include information disclosed in accordance with this and other schedules, and information disclosed under the other requirements of the determination. 7 1(i): Expenditure Metrics 8 Expenditure per TJ energy delivered to ICPs ($/TJ) Expenditure per average no. of ICPs ($/ICP) Ratio of expenditure to maximum monthly amount of gas entering network ($ per GJ/month) Expenditure per km of pipeline for supply ($/km) 9 Operational expenditure , Network Nonnetwork Expenditure on assets 1, , Network 1, , Nonnetwork (ii): Revenue Metrics 19 Revenue per TJ energy delivered to ICPs ($/TJ) Revenue per average no. of ICPs ($/ICP) 20 Total line charge revenue 3, Standard consumer line charge revenue 6, Nonstandard consumer line charge revenue , (iii): Service Intensity Measures Demand density 202 Maximum monthly amount of gas entering network (GJ/month)/Total pipeline length 27 Volume density 2 Total TJ delivered to ICPs/Total pipeline length 28 Connection point density 15 Average number of ICPs in disclosure year/total pipeline length 29 Energy intensity 137 Total GJ delivered to ICPs/Average number of ICPs in disclosure year (iv): Composition of Revenue Requirement 32 ($000) % of revenue 33 Operational expenditure 16, % 34 Passthrough and recoverable costs 2, % 35 Total depreciation 14, % 36 Total revaluation 7, % 37 Regulatory tax allowance 10, % 38 Regulatory profit/loss 39, % 39 Total regulatory income 75, (v): Reliability Interruptions per 100km of pipeline length 42 Interruption rate GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S1.Analytical Ratios

6 SCHEDULE 2: REPORT ON RETURN ON INVESTMENT 7 2(i): Return on Investment CY2 CY1 Current Year CY 8 for year ended 30 Jun Jun Jun 14 9 Post tax WACC % % % 10 ROI comparable to a post tax WACC 7.93% 8.24% 7.52% Midpoint estimate of post tax WACC 6.89% 6.02% 6.16% 13 25th percentile estimate 6.08% 5.21% 5.35% 14 75th percentile estimate 7.70% 6.83% 6.97% Vanilla WACC 18 ROI comparable to a vanilla WACC 8.72% 8.94% 8.20% Midpoint estimate of vanilla WACC 7.69% 6.72% 6.84% 21 25th percentile estimate 6.88% 5.91% 6.03% 22 75th percentile estimate 8.50% 7.53% 7.65% (ii): Information Supporting the ROI ($000) Total opening RAB value 467, plus Opening deferred tax (19,014) 29 Opening RIV 448, Operating surplus / (deficit) 56, less Regulatory tax allowance 10, less Assets commissioned 23, plus Asset disposals Notional net cash flows 23, Total closing RAB value 483, less Adjustment resulting from asset allocation less Lost and found assets adjustment 40 plus Closing deferred tax (22,545) 41 Closing RIV 460, ROI comparable to a vanilla WACC 8.20% 44 Vector gas distribution business This schedule requires information on the Return on Investment (ROI) for the GDB relative to the Commerce Commission's estimates of post tax WACC and vanilla WACC. GDBs must calculate their ROI based on a monthly basis if required by clause of the ID Determination or if they elect to. If a GDB makes this election, information supporting this calculation must be provided in 2(iii). GDBs must provide explanatory comment on their ROI in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section Leverage (%) 44% 46 Cost of debt assumption (%) 5.49% 47 Corporate tax rate (%) 28% ROI comparable to a post tax WACC 7.52% 6 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S2.Return on Investment

7 SCHEDULE 2: REPORT ON RETURN ON INVESTMENT Vector gas distribution business This schedule requires information on the Return on Investment (ROI) for the GDB relative to the Commerce Commission's estimates of post tax WACC and vanilla WACC. GDBs must calculate their ROI based on a monthly basis if required by clause of the ID Determination or if they elect to. If a GDB makes this election, information supporting this calculation must be provided in 2(iii). GDBs must provide explanatory comment on their ROI in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section (iii): Information Supporting the Monthly ROI Cash flows ($000) 60 Total regulatory income Expenses Tax payments Assets commissioned Asset disposals Notional net cash flows 61 Month 1 10,357 1, , Month 2 10,024 1,460 1, , Month 3 8,368 1,600 1, , Month 4 5,603 1,512 2, , Month 5 4,873 1,524 1,013 2,424 1 (87) 66 Month 6 4,297 1,397 1, , Month 7 4,504 1,550 1, , Month 8 3,995 1,524 1, , Month 9 4,785 1,622 9,110 2,954 4 (8,897) 70 Month 10 4,818 1,512 2, , Month 11 6,300 1,715 1, , Month 12 7,389 1,829 3, , Total 75,313 18,883 10,123 23, , Opening / closing RAB Adjustment resulting from asset allocation Lost and found assets adjustment Opening / closing deferred tax Revenue related working capital 77 Monthly ROI opening RIV 467,458 (19,014) 9, , Monthly ROI closing RIV 483, (22,545) 7, , Monthly ROI closing RIV less term credit spread differential allowance 468, Monthly ROI comparable to a vanilla WACC 7.62% Monthly ROI comparable to a posttax WACC 6.95% (iv): YearEnd ROI Rates for Comparison Purposes Yearend ROI comparable to a vanilla WACC 8.54% Yearend ROI comparable to a posttax WACC 7.86% * these yearend ROI values are comparable to the ROI reported in pre 2012 disclosures by GDBs and do not represent the Commission's current view on ROI. Total 7 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S2.Return on Investment

8 SCHEDULE 3: REPORT ON REGULATORY PROFIT 7 3(i): Regulatory Profit ($000) 8 Income 9 Line charge revenue 74, plus Gains / (losses) on asset disposals (50) 11 plus Other regulated income (other than gains / (losses) on asset disposals) Total regulatory income 75, Expenses 15 less Operational expenditure 16, less Pass through and recoverable costs 2, Operating surplus / (deficit) 56, less Total depreciation 14, plus Total revaluation 7, Regulatory profit / (loss) before tax & term credit spread differential allowance 49, less Term credit spread differential allowance Regulatory profit / (loss) before tax 49, less Regulatory tax allowance 10, Regulatory profit / (loss) 39, (ii): PassThrough and Recoverable Costs ($000) Passthrough costs 38 Rates 1, Commerce Act levies GIC levies 41 Other specified passthrough costs Recoverable costs Vector gas distribution business This schedule requires information on the calculation of regulatory profit for the GDB for the disclosure year. GDBs must complete all sections and must provide explanatory comment on their regulatory profit in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section Net recoverable costs allowed under incremental rolling incentive scheme 44 Input Methodology clawback 45 Recoverable customised pricequality path costs 46 Passthrough and recoverable costs 2, (iii): Incremental Rolling Incentive Scheme 56 CY1 CY Jun Jun Allowed controllable opex 59 Actual controllable opex Incremental change in year Previous years' incremental change Previous years' incremental change adjusted for inflation 64 CY5 30 Jun CY4 30 Jun CY3 30 Jun CY2 30 Jun CY1 30 Jun Net incremental rolling incentive scheme Net recoverable costs allowed under incremental rolling incentive scheme (iv): Merger and Acquisition Expenditure Merger and acquisition expenses 76 Provide commentary on the benefits of merger and acquisition expenditure to the gas distribution business, including required disclosures in accordance with section 2.7, in 77 Schedule 14 (Mandatory Explanatory Notes) 78 3(v): Other Disclosures 79 Selfinsurance allowance ($000) 8 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S3.Regulatory Profit

9 SCHEDULE 4: REPORT ON VALUE OF THE REGULATORY ASSET BASE (ROLLED FORWARD) 7 4(i): Regulatory Asset Base Value (Rolled Forward) RAB RAB RAB RAB RAB 8 for year ended 30 Jun Jun Jun Jun Jun 14 9 ($000) ($000) ($000) ($000) ($000) 10 Total opening RAB value 418, , , , , less Total depreciation 13,416 12,571 13,662 14,398 14, plus Total revaluations 6,925 13,596 4,248 3,134 7, plus Assets commissioned 12,363 22,745 20,664 20,404 23, less Asset disposals plus Lost and found assets adjustment plus Adjustment resulting from asset allocation (15) Vector gas distribution business This schedule requires information on the calculation of the Regulatory Asset Base (RAB) value to the end of this disclosure year. This informs the ROI calculation in Schedule 2. GDBs must provide explanatory comment on the value of their RAB in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section Total closing RAB value 423, , , , , (ii): Unallocated Regulatory Asset Base Unallocated RAB * RAB ($000) ($000) ($000) ($000) 28 Total opening RAB value 493, , less 30 Total depreciation 22,991 14, plus 32 Total revaluations 7,935 7, plus 34 Assets commissioned (other than below) 31,614 23, Assets acquired from a regulated supplier 36 Assets acquired from a related party 37 Assets commissioned 31,614 23, less 39 Asset disposals (other than below) Asset disposals to a regulated supplier 41 Asset disposals to a related party 42 Asset disposals plus Lost and found assets adjustment plus Adjustment resulting from asset allocation Total closing RAB value 509, , * The 'unallocated RAB' is the total value of those assets used wholly or partially to provide gas distribution services without any allowance being made for the allocation of costs to nonregulated services. The RAB value represents the value of these assets after applying this cost allocation. Neither value includes works under construction. 9 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S4.RAB Value (Rolled Forward)

10 SCHEDULE 4: REPORT ON VALUE OF THE REGULATORY ASSET BASE (ROLLED FORWARD) Vector gas distribution business This schedule requires information on the calculation of the Regulatory Asset Base (RAB) value to the end of this disclosure year. This informs the ROI calculation in Schedule 2. GDBs must provide explanatory comment on the value of their RAB in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section (iii): Calculation of Revaluation Rate and Revaluation of Assets CPI 4 1, CPI 4 1, Revaluation rate (%) 1.62% ($000) ($000) ($000) ($000) 65 Total opening RAB value 493, , less Opening RAB value of fully depreciated, disposed and lost assets 2, Total opening RAB value subject to revaluation 491, , Total revaluations 7,935 7, (iv): Roll Forward of Works Under Construction Works under construction preceding disclosure year 2,790 1, plus Capital expenditure 37,825 28, less Assets commissioned 31,614 23, plus Adjustment resulting from asset allocation (113) 77 Works under construction current disclosure year 9,001 6, Unallocated RAB * Unallocated works under construction 79 Highest rate of capitalised finance applied 6.97% RAB Allocated works under construction 10 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S4.RAB Value (Rolled Forward)

11 SCHEDULE 4: REPORT ON VALUE OF THE REGULATORY ASSET BASE (ROLLED FORWARD) Vector gas distribution business This schedule requires information on the calculation of the Regulatory Asset Base (RAB) value to the end of this disclosure year. This informs the ROI calculation in Schedule 2. GDBs must provide explanatory comment on the value of their RAB in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section (v): Regulatory Depreciation 88 Unallocated RAB * RAB 89 ($000) ($000) ($000) ($000) 90 Depreciation standard 12,902 12, Depreciation no standard life assets 10,089 1, Depreciation modified life assets 93 Depreciation alternative depreciation in accordance with CPP 94 Total depreciation 22,991 14, (vi): Disclosure of Changes to Depreciation Profiles ($000 unless otherwise specified) 97 Asset or assets with changes to depreciation * include additional rows if needed Reason for nonstandard depreciation (text entry) Depreciation charge for the period (RAB) Closing RAB value under 'nonstandard' depreciation Closing RAB value under 'standard' depreciation 107 4(vii): Disclosure by Asset Category ($000 unless otherwise specified) 108 Intermediate pressure main pipelines Medium pressure main pipelines Low pressure main pipelines Service pipe Stations Line valve Special crossings Other network assets 109 Total opening RAB value 59, ,438 11,894 63,959 5,529 3,488 10,676 4, , less Total depreciation 1,586 7, , ,502 14, plus Total revaluations 966 4, , , plus Assets commissioned 822 9, ,617 1, ,935 1,166 23, less Asset disposals plus Lost and found assets adjustment 115 plus Adjustment resulting from asset allocation plus Asset category transfers (1,496) (3,293) (15) (111) (12) (2) 4,679 (471) Total closing RAB value 58, ,833 11,990 70,446 6,464 3,929 4,757 11,485 5, , Asset Life 120 Weighted average remaining asset life (years) 121 Weighted average expected total asset life (years) Nonnetwork assets Total 11 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S4.RAB Value (Rolled Forward)

12 SCHEDULE 5a: REPORT ON REGULATORY TAX ALLOWANCE 7 5a(i): Regulatory Tax Allowance ($000) 8 Regulatory profit / (loss) before tax 49, plus Income not included in regulatory profit / (loss) before tax but taxable * 11 Expenditure or loss in regulatory profit / (loss) before tax but not deductible 19 * 12 Amortisation of initial differences in asset values 4, Amortisation of revaluations , less Income included in regulatory profit / (loss) before tax but not taxable 7,548 * 18 Expenditure or loss deductible but not in regulatory profit / (loss) before tax * 19 Notional deductible interest 10, , Regulatory taxable income 36, less Utilised tax losses 25 Regulatory net taxable income 36, Corporate tax rate (%) 28% 28 Regulatory tax allowance 10, * Workings to be provided in Schedule a(ii): Disclosure of Permanent Differences 33 In Schedule 14, Box 8, provide descriptions and workings of items recorded in the asterisked categories in Schedule 5a(i). 34 5a(iii): Amortisation of Initial Difference in Asset Values ($000) Opening unamortised initial differences in asset values 160, Amortisation of initial differences in asset values 4, Adjustment for unamortised initial differences in assets acquired 39 Adjustment for unamortised initial differences in assets disposed (72) 40 Closing unamortised initial difference in asset values 156, Opening weighted average remaining asset life (years) a(iv): Amortisation of Revaluations ($000) Opening Sum of RAB values without revaluations 441, Vector gas distribution business This schedule requires information on the calculation of the regulatory tax allowance.this information is used to calculate regulatory profit/loss in Schedule 3 (regulatory profit). GDBs must provide explanatory commentary on the information disclosed in this schedule, in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section Adjusted depreciation 13, Total depreciation 14, Amortisation of revaluations GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5a.Regulatory Tax Allowance

13 SCHEDULE 5a: REPORT ON REGULATORY TAX ALLOWANCE Vector gas distribution business This schedule requires information on the calculation of the regulatory tax allowance.this information is used to calculate regulatory profit/loss in Schedule 3 (regulatory profit). GDBs must provide explanatory commentary on the information disclosed in this schedule, in Schedule 14 (Mandatory Explanatory Notes). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section a(v): Reconciliation of Tax Losses ($000) Opening tax losses 60 plus Current period tax losses 61 less Utilised tax losses 62 Closing tax losses 63 5a(vi): Calculation of Deferred Tax Balance ($000) Opening deferred tax plus Tax effect of adjusted depreciation 3, less Tax effect of total tax depreciation 6, plus Tax effect of other temporary differences* less Tax effect of amortisation of initial differences in asset values 1, (19,014) 75 plus Deferred tax balance relating to assets acquired in the disclosure year less Deferred tax balance relating to assets disposed in the disclosure year plus Deferred tax cost allocation adjustment (4) Closing deferred tax 82 (22,545) 83 5a(vii): Disclosure of Temporary Differences In Schedule 14, Box 9, provide descriptions and workings of items recorded in the asterisked category in Schedule 5a(vi) (Tax effect of other temporary differences). 86 5a(viii): Regulatory Tax Asset Base RollForward Opening Sum of regulatory tax asset values 214, less Tax depreciation 22, plus Regulatory tax asset value of assets commissioned 23, less Regulatory tax asset value of asset disposals plus Lost and found assets adjustment 93 plus Other adjustments to the RAB tax value Closing sum of regulatory tax asset values 216,376 ($000) 13 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5a.Regulatory Tax Allowance

14 SCHEDULE 5b: REPORT ON RELATED PARTY TRANSACTIONS Vector gas distribution business This schedule provides information on the valuation of related party transactions, in accordance with section and of the ID determination. This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section b(i): Summary Related Party Transactions ($000) 8 Total regulatory income 6,197 9 Operational expenditure 10 Capital expenditure 11 Market value of asset disposals 12 Other related party transactions 13 5b(ii): Entities Involved in Related Party Transactions 14 Name of related party 15 Vector Gas Limited (gas wholesale) * include additional rows if needed A fully owned unregulated business unit of Vector Gas Limited. Related party relationship 21 5b(iii): Related Party Transactions 22 Name of related party Related party transaction type 23 Vector Gas Limited (gas wholesale) Sales Sold distribution services 6, [Select one] 25 [Select one] 26 [Select one] 27 [Select one] 28 [Select one] 29 [Select one] 30 [Select one] 31 [Select one] 32 [Select one] 33 [Select one] 34 [Select one] 35 [Select one] 36 [Select one] 37 [Select one] * include additional rows if needed Description of transaction Value of transaction ($000) Basis for determining value Clause (2) (a) price received by the GDB as more than 50% of the GDB's sales are to third parties who receive substantially the same terms, including price, as the related party. 14 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5b.Related Party Transactions

15 SCHEDULE 5c: REPORT ON TERM CREDIT SPREAD DIFFERENTIAL ALLOWANCE Vector gas distribution business This schedule is only to be completed if, as at the date of the most recently published financial statements, the weighted average original tenor of the debt portfolio (both qualifying debt and nonqualifying debt) is greater than five years. This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section c(i): Qualifying Debt (may be Commission only) 9 10 Issuing party Issue date Pricing date Original tenor (in years) Coupon rate (%) Book value at issue date (NZD) Book value at date of financial statements (NZD) Term Credit Spread Difference Cost of executing an interest rate swap Debt issue cost readjustment 11 Senior bonds fixed coupon 27May09 27May , ,408 []VCI []VCI []VCI Capital bonds fixed coupon 15Jun12 14Jun , ,316 []VCI []VCI []VCI Floating rate notes 4Apr07 4Apr07 10 BKBM+ []VCI 200,000 []VCI []VCI []VCI 26Oct05 26Oct05 10 BKBM + []VCI 250,000 []VCI []VCI []VCI 26Oct05 26Oct05 12 BKBM + []VCI 400,000 []VCI []VCI []VCI 26Oct05 26Oct05 15 BKBM + []VCI 350,000 []VCI []VCI []VCI Subtotal of floating rate notes 1,200,000 1,154,414 Medium term notes GBP fixed rate 11Apr08 8Apr , ,154 []VCI []VCI []VCI Senior notes USD fixed rate 16Sep04 19Jul ,875 []VCI []VCI []VCI Senior notes USD fixed rate 16Sep04 19Jul ,623 []VCI []VCI []VCI Senior notes USD fixed rate 20Dec10 22Sep10 12 []VCI 250,516 []VCI []VCI []VCI Subtotal of senior notes USD fixed rate 646, ,361 Bank loans 3Feb12 3Feb12 3 BKBM + []VCI 3Feb12 3Feb12 3 BKBM + []VCI 17Dec13 17Dec13 3 BKBM + []VCI Subtotal of bank loans 99,797 Working capital and other loans 17Dec13 17Dec13 3 BKBM + []VCI 17Dec13 17Dec13 3 BKBM + []VCI 17Dec13 17Dec13 3 BKBM + []VCI Subtotal of working capital and other 28, * include additional rows if needed 2,468,988 []VCI []VCI []VCI c(ii): Attribution of Term Credit Spread Differential Gross term credit spread differential 1, Total book value of interest bearing debt 2,420, Leverage 44% 24 Average opening and closing RAB values 475, Attribution Rate (%) 9% Term credit spread differential allowance GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5c.TCSD Allowance

16 SCHEDULE 5d: REPORT ON COST ALLOCATIONS Vector gas distribution business This schedule provides information on the allocation of operational costs. GDBs must provide explanatory comment on their cost allocation in Schedule 14 (Mandatory Explanatory Notes), including on the impact of any reclassifications. This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section d(i): Operating Cost Allocations Service interruptions, incidents and emergencies Arm's length deduction Gas distribution services 11 Directly attributable 3,732 Nongas distribution services 12 Not directly attributable 13 Total attributable to regulated service 3, Routine and corrective maintenance and inspection 15 Directly attributable 3, Not directly attributable 17 Total attributable to regulated service 3, Asset replacement and renewal 19 Directly attributable 20 Not directly attributable 21 Total attributable to regulated service 22 System operations and network support 23 Directly attributable 1, Not directly attributable 714 3,920 4, Total attributable to regulated service 2, Business support 27 Directly attributable Not directly attributable 6,132 39,093 45, Total attributable to regulated service 6, Operating costs directly attributable 9, Operating costs not directly attributable 6,846 43,013 49, Operating expenditure 16,466 Value allocated ($000s) Total OVABAA allocation increase ($000s) 41 5d(ii): Other Cost Allocations 42 Pass through and recoverable costs 43 Pass through costs 44 Directly attributable 2, Not directly attributable 46 Total attributable to regulated service 2, Recoverable costs 48 Directly attributable 49 Not directly attributable 50 Total attributable to regulated service 51 ($000) 52 5d(iii): Changes in Cost Allocations* CY1 Current Year (CY) 53 Change in cost allocation 1 30 Jun Jun Cost category Original allocation 55 Original allocator or line items New allocation 56 New allocator or line items Difference Rationale for change CY1 Current Year (CY) 61 Change in cost allocation 2 30 Jun Jun Cost category Original allocation 63 Original allocator or line items New allocation 64 New allocator or line items Difference Rationale for change CY1 Current Year (CY) 69 Change in cost allocation 3 30 Jun Jun Cost category Original allocation 71 Original allocator or line items New allocation 72 New allocator or line items Difference Rationale for change * a change in cost allocation must be completed for each cost allocator change that has occurred in the disclosure year. A movement in an allocator metric is not a change in allocator or component. include additional rows if needed 16 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5d.Cost Allocations

17 SCHEDULE 5e: REPORT ON ASSET ALLOCATIONS 7 5e(i):Regulated Service Asset Values Main pipe Value allocated ($000s) Gas distribution services 11 Directly attributable 381, Not directly attributable 13 Total attributable to regulated service 381, Service pipe 15 Directly attributable 70, Not directly attributable 17 Total attributable to regulated service 70, Stations 19 Directly attributable 6, Not directly attributable 21 Total attributable to regulated service 6, Line valve 23 Directly attributable 3, Not directly attributable 25 Total attributable to regulated service 3, Special crossings 27 Directly attributable 4, Not directly attributable 29 Total attributable to regulated service 4, Other network assets 31 Directly attributable 11, Not directly attributable 33 Total attributable to regulated service 11, Nonnetwork assets 35 Directly attributable 1, Not directly attributable 3, Total attributable to regulated service 5, Regulated service asset value directly attributable 479, Regulated service asset value not directly attributable 3, Total closing RAB value 483, Vector gas distribution business This schedule requires information on the allocation of asset values. This information supports the calculation of the RAB value in Schedule 4. GDBs must provide explanatory comment on their cost allocation in Schedule 14 (Mandatory Explanatory Notes), including on the impact of any changes in asset allocations. This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section e(ii): Changes in Asset Allocations* 51 CY1 Current Year (CY) 52 Change in asset value allocation 1 30 Jun Jun Asset category Original allocation 55 Original allocator or line items New allocation 56 New allocator or line items Difference Rationale for change 59 CY1 Current Year (CY) 60 Change in asset value allocation 2 30 Jun Jun Asset category Original allocation 62 Original allocator or line items New allocation 63 New allocator or line items Difference Rationale for change 66 CY1 Current Year (CY) 67 Change in asset value allocation 3 30 Jun Jun Asset category Original allocation 69 Original allocator or line items New allocation 70 New allocator or line items Difference Rationale for change 73 ($000) 74 * a change in asset allocation must be completed for each allocator or component change that has occurred in the disclosure year. A movement in an allocator metric is not a change in allocator or component. include additional rows if needed 17 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S5e.Asset Allocations

18 SCHEDULE 6a: REPORT ON CAPITAL EXPENDITURE FOR THE DISCLOSURE YEAR Vector gas distribution business This schedule requires a breakdown of capital expenditure on assets incurred in the disclosure year, including any assets in respect of which capital contributions are received, but excluding assets that are vested assets. Information on expenditure on assets must be provided on an accounting accruals basis and must exclude finance costs. GDBs must provide explanatory comment on their expenditure on assets in Schedule 14 (Explanatory notes to templates). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section a(i): Expenditure on Assets ($000) ($000) 8 Consumer connection 16,316 9 System growth 1, Asset replacement and renewal 9, Asset relocations 2, Reliability, safety and environment: 13 Quality of supply Legislative and regulatory 15 Other reliability, safety and environment Total reliability, safety and environment 1, Expenditure on network assets 31, Nonnetwork assets 1, Expenditure on assets 32, plus Cost of financing less Value of capital contributions 4, plus Value of vested assets Capital expenditure 28, a(ii): Subcomponents of Expenditure on Assets (where known) ($000) 27 Research and development 28 6a(iii): Consumer Connection 29 Consumer types defined by GDB* ($000) ($000) 30 Mains Extensions/Subdivsions 8, Service Connections Residential 6, Service Connections Commercial 1, Customer Easements * include additional rows if needed 36 Consumer connection expenditure 16, less Capital contributions funding consumer connection expenditure 1, Consumer connection less capital contributions 14, GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S6a.Actual Expenditure Capex

19 SCHEDULE 6a: REPORT ON CAPITAL EXPENDITURE FOR THE DISCLOSURE YEAR Vector gas distribution business This schedule requires a breakdown of capital expenditure on assets incurred in the disclosure year, including any assets in respect of which capital contributions are received, but excluding assets that are vested assets. Information on expenditure on assets must be provided on an accounting accruals basis and must exclude finance costs. GDBs must provide explanatory comment on their expenditure on assets in Schedule 14 (Explanatory notes to templates). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section 2.8. Asset Replacement and 48 System Growth Renewal 49 ($000) ($000) 50 Intermediate pressure 47 6a(iv): System Growth and Asset Replacement and Renewal 51 Main pipe 52 Service pipe 53 Stations Line valve Special crossings 4 56 Intermediate pressure total 781 1, Medium pressure 58 Main pipe 651 7, Service pipe Stations Line valve 62 Special crossings Medium pressure total 651 7, Low pressure 65 Main pipe 66 Service pipe 67 Line valve 68 Special crossings 69 Low pressure total 70 Other network assets 71 Monitoring and control systems Cathodic protection systems Other Other network assets total System growth and asset replacement and renewal expenditure 1,432 9, less Capital contributions funding system growth and asset replacement and renewal 78 System growth and asset replacement and renewal less capital contributions 1,432 9, a(v): Asset Relocations 80 Project or programme* ($000) ($000) 81 Waterview Connection [Description of material project or programme] 83 [Description of material project or programme] 84 [Description of material project or programme] 85 [Description of material project or programme] 86 * include additional rows if needed 87 All other asset relocations projects or programmes 1, Asset relocations expenditure 2, less Capital contributions funding asset relocations 2, Asset relocations less capital contributions 91 6a(vi): Quality of Supply 92 Project or programme* ($000) ($000) 93 [Description of material project or programme] 94 [Description of material project or programme] 95 [Description of material project or programme] 96 [Description of material project or programme] 97 [Description of material project or programme] 98 * include additional rows if needed 99 All other quality of supply projects or programmes Quality of supply expenditure less Capital contributions funding quality of supply 102 Quality of supply less capital contributions 654 (91) 19 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S6a.Actual Expenditure Capex

20 SCHEDULE 6a: REPORT ON CAPITAL EXPENDITURE FOR THE DISCLOSURE YEAR Vector gas distribution business This schedule requires a breakdown of capital expenditure on assets incurred in the disclosure year, including any assets in respect of which capital contributions are received, but excluding assets that are vested assets. Information on expenditure on assets must be provided on an accounting accruals basis and must exclude finance costs. GDBs must provide explanatory comment on their expenditure on assets in Schedule 14 (Explanatory notes to templates). This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section a(vii): Legislative and Regulatory 111 Project or programme* ($000) ($000) 112 [Description of material project or programme] 113 [Description of material project or programme] 114 [Description of material project or programme] 115 [Description of material project or programme] 116 [Description of material project or programme] 117 * include additional rows if needed 118 All other legislative and regulatory projects or programmes 119 Legislative and regulatory expenditure 120 less Capital contributions funding legislative and regulatory 121 Legislative and regulatory less capital contributions a(viii): Other Reliability, Safety and Environment 124 Project or programme* ($000) ($000) 125 Tuhikaramea Rd: IP pipeline protection HM [Description of material project or programme] 127 [Description of material project or programme] 128 [Description of material project or programme] 129 [Description of material project or programme] 130 * include additional rows if needed 131 All other reliability, safety and environment projects or programmes Other reliability, safety and environment expenditure less Capital contributions funding other reliability, safety and environment 134 Other reliability, safety and environment less capital contributions a(ix): NonNetwork Assets 136 Routine expenditure 137 Project or programme* ($000) ($000) 138 [Description of material project or programme] 139 [Description of material project or programme] 140 [Description of material project or programme] 141 [Description of material project or programme] 142 [Description of material project or programme] 143 * include additional rows if needed 144 All other routine expenditure projects or programmes Routine expenditure Atypical expenditure 147 Project or programme* ($000) ($000) 148 [Description of material project or programme] 149 [Description of material project or programme] 150 [Description of material project or programme] 151 [Description of material project or programme] 152 [Description of material project or programme] 153 * include additional rows if needed 154 All other atypical expenditure projects or programmes 1, Atypical expenditure 1, Nonnetwork assets expenditure 1, GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S6a.Actual Expenditure Capex

21 SCHEDULE 6b: REPORT ON OPERATIONAL EXPENDITURE FOR THE DISCLOSURE YEAR 7 6b(i): Operational Expenditure ($000) ($000) 8 Service interruptions, incidents and emergencies 3,732 9 Routine and corrective maintenance and inspection 3, Asset replacement and renewal 11 Network opex 7, System operations and network support 2, Business support 6, Nonnetwork opex 8, Operational expenditure 16, b(ii): Subcomponents of Operational Expenditure (where known) Vector gas distribution business This schedule requires a breakdown of operating expenditure incurred in the current disclosure year. GDBs must provide explanatory comment on their operational expenditure in Schedule 14 (Explanatory notes to templates). This includes explanatory comment on any atypical operating expenditure and assets replaced or renewed as part of asset replacement and renewal operational expenditure, and additional information on insurance. This information is part of audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section Research and development 19 Insurance GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S6b.Actual Expenditure Opex

22 SCHEDULE 7: COMPARISON OF FORECASTS TO ACTUAL EXPENDITURE Vector gas distribution business This schedule compares actual revenue and expenditure to the previous forecasts that were made for the disclosure year. Accordingly, this schedule requires the forecast revenue and expenditure information from previous disclosures to be inserted. GDBs must provide explanatory comment on the variance between actual and target revenue and forecast expenditure in Schedule 14 (Mandatory Explanatory Notes). This information is part of the audited disclosure information (as defined in section 1.4 of the ID determination), and so is subject to the assurance report required by section 2.8. For the purpose of this audit, target revenue and forecast expenditures only need to be verified back to previous disclosures. 8 7(i): Revenue Target ($000) ¹ Actual ($000) % variance 9 Line charge revenue 69,155 74,664 8% 10 7(ii): Expenditure on Assets Forecast ($000) ² Actual ($000) % variance 11 Consumer connection 10,446 16,316 56% 12 System growth 3,689 1,432 (61%) 13 Asset replacement and renewal 12,858 9,686 (25%) 14 Asset relocations 4,006 2,294 (43%) 15 Reliability, safety and environment: 16 Quality of supply % 17 Legislative and regulatory 18 Other reliability, safety and environment Total reliability, safety and environment 613 1, % Expenditure on network assets 31,612 31,221 (1%) 21 Nonnetwork capex 1,708 1,300 (24%) 22 Expenditure on assets 33,320 32,521 (2%) 23 7(iii): Operational Expenditure 24 Service interruptions, incidents and emergencies 4,149 3,732 (10%) 25 Routine and corrective maintenance and inspection 4,704 3,782 (20%) 26 Asset replacement and renewal 27 Network opex 8,853 7,514 (15%) 28 System operations and network support 4,146 2,655 (36%) 29 Business support 8,210 6,297 (23%) 30 Nonnetwork opex 12,356 8,952 (28%) 31 Operational expenditure 21,209 16,466 (22%) 32 7(iv): Subcomponents of Expenditure on Assets (where known) 33 Research and development 34 7(v): Subcomponents of Operational Expenditure (where known) 35 Research and development 36 Insurance (6%) 37 1 From the nominal dollar target revenue for the disclosure year disclosed under clause 2.4.3(3) of the Determination 38 2 From the nominal dollar expenditure forecast and disclosed in the second to last AMP as the year CY+1 forecast 22 GDB Information Disclosure 2014 schedules 1 10 (public).xlsx S7.Actual vs Forecast Exp