October 05, 2016

Report on Natural Gas Pipeline Integration Featured in The Australian Financial Review

A report authored by Brattle economists on behalf of APA Group was recently quoted in an article in the October 5, 2016 issue of The Australian Financial Review.

The article discusses the return of APA Group’s Chief Executive Officer and Managing Director Mick McCormack, who will be speaking to media and investors on the analysis prepared by Brattle experts highlighting the economic costs and benefits associated with integration in APA’s pipeline operations in Eastern Australia.

Among the benefits quantified, the report finds that integrated ownership has resulted in cost savings of over $110m as the otherwise wasteful duplication of facilities has been avoided, as well as a further $40m of savings that will be realized if expectations of demand increases are borne out. Additionally, operating APA’s pipelines centrally saves around $7m annually in operating costs relative to independent operation of APA’s main Eastern Australia pipelines.

The report, “Benefits and Costs of Integration in Transmission/Transportation Networks: An Application to Eastern Australia Gas Markets,” is authored by Brattle Principals Toby Brown, Paul Carpenter, and James Reitzes, and Senior Associates Jeremy Verlinda and Neil Lessem.

Associated Experts
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Dr. Toby Brown specializes in the regulation and economics of the gas and electricity sectors. He has consulted for pipelines, utilities, and regulators and he has particular expertise in incentive-based regulation in the energy sector. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Carpenter 063
Dr. Carpenter specializes in the fields of energy economics, regulation, corporate planning, pricing policy, and antitrust. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Reitzes 067
(Washington) +1.202.955.5050
(Toronto) +1.416.360.4849
Dr. Reitzes, a former Federal Trade Commission economist, specializes in antitrust and regulatory economics. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Lessem 054
Senior Associate
Dr. Lessem assists utilities, policymakers and technology firms across North America, Asia, the Middle East and Australia on rate design, energy policy, innovative pricing, experimental design, technology adoption and policy impact measurement. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4
Verlinda web
Senior Associate
Dr. Verlinda specializes in industrial organization, antitrust, econometrics, and statistics. More icon f02782c24cccaf6d90e1da53920c42f20e5a8955f54ac2ca5727ec7dc89987b4