ElectraNet

ElectraNet operates and manages the regulated electricity transmission network throughout South Australia, providing the high voltage, large capacity network for generators to transport their electricity to end users.

ElectraNet's principal business, which accounts for more than 90 percent of the company's revenues, is regulated by the Australian Energy Regulator (AER), with regulatory resets every five years. ElectraNet's current regulatory period began on 1 July 2008 and will end on 30 June 2013. ElectraNet has a long-term lease over its assets expiring in 2200.

Performance highlights 2011

In financial year 2011, ElectraNet's revenue increased 10.4 percent to $302.7 million and EBITDA increased by 11.3 percent to a total of $235.3 million.

ElectraNet successfully invested $232.0 million in regulated capital projects over the 2011 financial year, increasing the company's Regulated Asset Base by 15.4 percent to $1.7 billion. ElectraNet's largest project during 2011 was the Adelaide Central Reinforcement project, which is within budget and due for practical completion in the last quarter of 2011.

ElectraNet Transmission Investments (ETI) commissioned two new unregulated connection projects during the year, North Brown Hill Wind Farm in July 2010 and Porcupine Range Wind Farm in February 2011. ETI invests in unregulated transmission connection opportunities outside of the regulated entity. However, uncertainty surrounding renewable energy and emissions trading laws has delayed progress on third party projects that were anticipated to commence in 2011.

During February 2011, management successfully raised A$221.6 million through the US Private Placement market providing it with five and seven year debts to refinance upcoming maturities and fund capital expenditure. The pricing and tenor achieved were better than expected and will help lengthen ElectraNet's maturity profile.

During the year, Hastings joined a Financial Investor Group to provide analysis to input into the debate on economic regulation in the run up to the proposed review of the National Electricity Rules (NER), the next Weighted Average Cost of Capital (WACC) review and the other forthcoming regulatory decisions.

performance Outlook

ElectraNet has regulatory certainty for another two years until the next scheduled regulatory reset. ElectraNet's primary focus will be on implementing the proposed operating and capital expenditure programs over the remaining years of the current regulatory period, as well as beginning to undertake the substantial planning required for the next regulatory period.

ElectraNet
Financial and operational performance

*CAGR: Compound Annual Growth Rate.
Note: Figures may differ slightly from previously reported information due to the timing of the completion of the audit of both statutory and regulatory accounts

For more information please visit the ElectraNet website