Topic:"Return On Equity" in M04265

Full Range of Evaluation Criteria PROSCREEN II provides a full range of evaluation criteria so that every aspect of a plan can be assessed: RATES Average Cass Prices - Base and Fuel Class Rate Increases - Base and Fuel ECONOMICS Present Wo...

AI summary PROSCREEN II offers a comprehensive set of evaluation criteria for assessing energy plans, covering rates, economics, reliability, financial integrity, customer impact, and societal and shareholder considerations. Key aspects include revenue requirements, cost assessments, reliability metrics, financial ratios, and stakeholder impacts.

Rate Change Logic After the desired financial condition is reached, the FIR Module recreates the Income Statement, Balance Sheet, and Statement of Cash Flows to account for changes in interest expense, dividends, etc. Expenses and rate bas...

AI summary The FIR Module iteratively adjusts revenues to meet desired financial targets such as rate of return on equity, total capital, or jurisdictional rate base. This process recalculates financial statements and ensures liquidity by adjusting revenues until the desired cash and rate of return levels are achieved, resulting in an initial rate change request for regulatory approval.

ASSUMPTIONS USED IN DEVELOPING MODEL Rate Base Lateral cost -$35 million, distribution system - $20 million Distributor will build out basic system as quickly as possible to have service ready for customer connections to gain early revenue...

AI summary The assumptions used in developing the model include capital expenditures for lateral and distribution systems, depreciation rates, equity and debt ratios, operating and maintenance costs, and revenue requirements. The model assumes a 35% equity ratio with a 12% return on equity, and capital is capitalized at different rates over the project timeline. Operating costs are estimated, with normalized ratios emerging in later years as the system becomes operational.

Toll Reduction Techniques Distribution tolls for each consumer class are normally set by the provincial utility board with jurisdiction. In Nova Scotia, this function will be administered by the Nova Scotia Utilities and Review Board under...

AI summary The text discusses toll reduction techniques used by regulatory boards to lower transportation tolls from new distribution systems. It outlines methods such as adjusting depreciation terms, forward levelizing rates, reducing return on equity, government debt guarantees, and cost savings incentives. It also notes that cross-subsidization is no longer used in modern unbundled service environments.

SEMPRA ATLANTIC GAS Sempra makes several suggestions in respect of rate design. At Page 6 of the brief Sempra indicates the requirement for a price floor. As noted in the post hearing brief of NSPI there is a price floor in that the rate m...

AI summary Sempra suggests a price floor, minimum and maximum take provisions, and unbundling of services in rate design. NSPI questions the need for these restrictions and argues that Sempra is not subject to the same regulatory oversight as NSPI, including a 20-year rate plan, unrestricted contract negotiation, and higher return on equity.

Re Diamond State Telephone Company Docket No. 86-20 Phase IA Order No. 2970 Delaware Public Service Commission August 16, 1988 PETITION by local exchange telephone carrier for approval of a range of equity returns under an "incentive regul...

AI summary The Delaware Public Service Commission rejected a petition by a local exchange telephone carrier for an 'incentive regulation' proposal and instead implemented a 'rate stability' plan. The Commission has the authority to impose penalties or rewards based on equity returns, and excessive returns do not automatically render rates unreasonable.