2001 Adjustment Sample Clauses

2001 Adjustment. [Complete Settlement] In its RP-1999-0017 Decision, the Board ruled that an earnings sharing mechanism should apply for use during the trial PBR. The earnings sharing mechanism applies to actual earnings that fall outside of a range of 100 basis points from the benchmark return on equity. The benchmark return on equity is determined through the use of the Board’s formula. For 2001, Union had proposed to use the current Board’s formula for the determination of the benchmark return on equity. Union is proposing to use an average reflecting actual long Canada yields for the period January 2001 to May 2001 and the June consensus forecast for the June 2001 to December 2001 period. The average long Canada for the period January to May was 5.8%. The long Canada forecast for the period June to December was 5.89% (i.e. 10-year Canada bond yield per the June consensus forecast of 5.75% plus an average spread between 10 year and 30 year Canada bond yields of 0.14%). When applied to the current Board approved formula, the resulting benchmark return on equity is 9.75%. Some parties were of the view that more recent information should be used in the determination of the inputs to the formula for the determination of the benchmark return on equity for the earnings sharing mechanism. The parties agree to use actual long Canada bond yields for the determination of potential earnings sharing for 2001. The actual long Canada bond yield for 2001 was 5.73%. When applied to the current Board approved formula, the resulting benchmark return on equity is 9.66%. The following parties agree with the settlement of this issue: CAC, CCK, ECG, IGUA, LPMA, Schools, VECC, Group The following parties take no position on this issue: CME, CEED, GEC, HVAC, OAPPA, Pollution Probe, TCPL, Tobacco Evidence References: