BIP ? Topics ? AUSTRALIAN ENERGY TRANSMISSION & DISTRIBUTION...

BIP ? Topics ? AUSTRALIAN ENERGY TRANSMISSION & DISTRIBUTION (AET&D)
This excerpt taken from the BIP 6-K filed Oct 22, 2009.

AUSTRALIAN ENERGY TRANSMISSION & DISTRIBUTION (AET&D)

The goodwill associated with the AET&D cash-generating unit arose when the business was acquired by Babcock & Brown Infrastructure as part of the Alinta acquisition. The recoverable amount of WA Gas Networks and Tasmania Gas Pipeline have been determined using value in use calculations based on approved 2010 financial year budgets and financial projections beyond this date. The WA Gas Networks? projections extend to 2049 whilst the Tasmania Gas Pipeline projection extends to 2072. In the current Financial Year, a discount rate range of 9.29% to 9.95% has been used for impairment purposes.

Cash flow projections for WA Gas Networks have been calculated assuming a revised estimate of the regulatory WACC and tariffs that will apply to the 2010 Access Arrangement reset, updated estimates on new connections and consumption volumes by tariff band and a revised asset management plan. An inflation of rate of 2.5% has been used.

WestNet Energy, which is the asset management business, has been valued using a fair value less cost to sell methodology consistent with prior periods. In determining this fair value less cost to sell amount, an EBITDA multiple has been used.

Babcock & Brown Infrastructure also has equity accounted investments in Multinet Gas Networks and the Dampier Bunbury Natural Gas Pipeline. These investments are valued using fair value less costs to sell using a RAB (Regulated Asset Base) multiple.

In the current Financial Year, a total impairment charge of $232.0 million has been recognised in respect of the AET&D businesses. Of this amount, $106.4 million has been written off the equity accounted investments, with the balance of $125.6 million being charged against goodwill. Key reasons for the impairment charges that have been recognised include lower assumed growth forecasts across the Group as a result of the local and global financial conditions, increased operating costs and maintenance costs in certain assets, lower RAB and EBITDA multiples for those assets that were valued using the fair value less costs to sell methodology and an increased discount rate reflecting higher cost of debt and asset betas.

http://www.wikinvest.com/stock/Brookfield_Infra_PTNR_LP_%28BIP%29/Australian_Energy_Transmission_Distribution_Aetd

Ends.

Q.

does this cover the extent of AET&D assets or are there others ? Tasmania?