COST OF CAPITAL. 8.1 The Company shall be allowed a return on equity of 9.3 percent.
8.2 The Settling Parties have agreed that a capital structure of 54.4 percent equity and 45.6 debt shall be used for purposes of determining the Company’s revenue requirement in this proceeding.
8.3 The Company shall be allowed a pre-tax weighted cost of capital of 6.87 percent.
8.4 The capital structure and overall cost of debt has been adjusted to reflect the issuance of $150 million in long-term debt in August 2020 at favorable rates, which reduced both PSNH’s cost of debt and its overall cost of capital.
COST OF CAPITAL. The capital structure is based on end-of-year ratios of debt, preferred stock, and common equity. The cost of each capital component is computed using the end-of-year embedded cost of debt and preferred stock and the return on common equity as set forth in the Exhibit No. 1 to this Appendix as the same may be changed subject to appropriate filing with the FERC.
COST OF CAPITAL. 3.1 Aquarion shall be allowed a pre-tax, weighted average cost of capital (“WACC”) of 7.54 percent and the components thereof are calculated as follows: Long-Term Debt 45.57% 5.68% 2.59% Preferred Equity 0.01% 6.00% 0.00% Common Equity 54.42% 9.10% 4.95% WACC 7.54%
3.2 The WACC assumes an average cost of long-term debt at 5.68 percent, which the parties agree shall represent a cap on the cost of long-term debt until the next rate case, notwithstanding the results of the planned long-term debt issuance anticipated by the Company. The Settling Parties further agree that elimination of short-term debt in the capital structure is appropriate from a ratemaking perspective.
COST OF CAPITAL. Holdco commits that future cost of service and rates of KCP&L and Westar shall not be adversely impacted on an overall basis as a result of the Merger and that future cost of service and rates will be set commensurate with financial and business risks attendant to their individual regulated utility operations. Neither KCP&L nor Westar shall seek an increase to their cost of capital as a result of (i.e., arising from or related to) the Merger or KCP&L’s and Westar’s ongoing affiliation with Holdco and its affiliates after the Merger. The return on equity capital (“XXX”) as reflected in Westar’s and KCP&L’s rates will not be adversely affected as a result of the Merger. Holdco agrees the XXX shall be determined in future rate cases, consistent with applicable law, regulations and practices of the Commission. The burden of proof that any increase to the cost of capital is not a result of the Merger shall be borne by KCP&L or Westar. Any net increase in the cost of capital that KCP&L or Westar seeks shall be supported by documentation that: (a) the increases are a result of factors not associated with the Merger or the post-Merger operations of Holdco or its non-KCP&L and non-Westar affiliates; (b) the increases are not a result of changes in business, market, economic or other conditions caused by the Merger or the post-Merger operations of Holdco or its non-KCP&L and non-Westar affiliates; and (c) the increases are not a result of changes in the risk profile of KCP&L or Westar caused by the Merger or the post-Merger operations of Holdco or its non-KCP&L and non-Westar affiliates. The provisions of this section are intended to recognize the Commission’s authority to consider, in appropriate proceedings, whether this Merger or the post-Merger operations of Holdco or its non-KCP&L and non-Westar affiliates have resulted in capital cost increases for KCP&L or Westar. Nothing in this condition shall restrict the Commission from disallowing such capital cost increases from recovery in KCP&L or Westar’s rates.
COST OF CAPITAL. Subject to the provisions of Section 6.3(c) and Section 7.2.2 of this Work Letter, a cost of capital charge ("Cost of Capital Charge") equal to (x) four and one-half percent (4.5%) per annum (the "Applicable Rate") calculated on a daily basis (and prorated in the case of partial periods, on the basis of a 360 day year) of (y) all Improvement Costs (other than Cost of Capital Charges) paid by Landlord, from the date each such Improvement Cost is so paid by Landlord until the Commencement Date; provided, however, that Cost of Capital Charges shall also include an amount equal to interest at the Applicable Rate on the total Improvement Costs paid or incurred as of the Commencement Date for the first month of the Early Occupancy Period (defined in Paragraph 4.3 of the Lease).
COST OF CAPITAL. 4.1 The Company shall be allowed a return on equity of 9.3 percent.
4.2 The Settling Parties have agreed that a capital structure of 52.0 percent equity and 48.0 percent debt shall be used for purposes of determining the Company’s revenue requirement in this proceeding, which results in the following pre-tax and after-tax weighted average costs of capital based on the current federal and state tax rates and the Company’s current cost of long-term debt: Description Capital Structure Cost of Capital Weighted Cost of Capital Tax Rate Pre-Tax Common Stock 52.00% 9.30% 4.84% 27.08% 6.64% Long-Term Debt 48.00% 4.420% 2.12% 2.12% Total 100.00% 6.96% 8.76%
COST OF CAPITAL. In the event the Agreed Amount is not paid in cash to the Company on or prior to the 60th day following the Closing, for the period beginning on the day following the 60th day following the Closing until the Agreed Amount is paid in cash to the Company TMCS shall pay the Company interest on the Agreed Amount, which interest shall be calculated at a rate of the prime rate plus 2% per annum.
COST OF CAPITAL. “Cost Of Capital” means the Corporation’s cost of funds for money invested by the Corporation under the terms of the Contract and for money paid to Executive pursuant to the terms of this Agreement. For purposes of this Agreement, the Corporation’s cost of funds shall be deemed to be 10% pre-tax. Whenever, Cost Of Capital must be calculated hereunder for money invested under the terms of the Contract or paid under the terms of this Agreement, such money shall be credited with 10% pre-tax interest compounded on an annual basis.
COST OF CAPITAL. TNMP commits that any potential increase in the cost of capital, resulting from the transaction, will not have a negative impact on TNMP’s customers through the True-Up Date. Any projected financing included in the determination of the 2002 test year, as required by the April 1, 2000 unbundling case, will be assumed to be done at investment grade rates, regardless of TNMP’s actual bond ratings.
COST OF CAPITAL. The Parties agree to an overall rate of return of 7.161 percent, a return on equity of 9.40 percent, a 5.066 percent cost of long-term debt, a 2.186 percent cost of short-term debt, and a capital structure of 49.0 percent equity, 50.0 percent long-term debt and 1.0 percent short-term debt.
