Common use of COST OF CAPITAL AND CAPITAL STRUCTURE Clause in Contracts

COST OF CAPITAL AND CAPITAL STRUCTURE. 3.1 In determining the annual changes to distribution revenue and rates, the Settling Parties agreed that application of an overall capital structure and cost of capital as set forth in the table below, including a 9.2 percent return on equity is just and reasonable in the context of this Settlement Agreement taken as a whole: Component Percentage Cost Weighted Cost Tax Factor Pre-Tax Cost Common Equity 52.00 % 9.20 % 4.78 % 1.371422 6.56 % Long-Term Debt 48.00 % 5.49 % 2.64 % 2.64 % Total 100.00 % 7.42 % 9.20 %

COST OF CAPITAL AND CAPITAL STRUCTURE. 3.1 4.1 In determining the annual changes to distribution revenue and ratesrate levels, the Settling Parties agreed that application of utilized an overall capital structure and cost of capital as set forth in the table below, including a 9.2 9.67 percent return on equity is just and reasonable in the context of this Settlement Agreement taken as a wholeequity: Component Percentage Cost Weighted Cost Tax Factor Pre-Tax Cost Common Equity 52.00 45.45% 9.20 9.67% 4.78 4.39% 1.371422 6.56 Preferred Stock Equity 0.16% 6.00% 0.01% Long-Term Debt 48.00 51.53% 5.49 7.60% 2.64 3.92% 2.64 Short-Term Debt 2.86% 2.50% 0.07% Total 100.00 100.00% 7.42 % 9.20 8.39%

COST OF CAPITAL AND CAPITAL STRUCTURE. 3.1 In determining the annual changes to distribution revenue and ratesrate levels, the Settling Parties agreed that application of utilized an overall capital structure and cost of capital as set forth in the table below, including a 9.2 percent 9.67% return on equity is just and reasonable in the context of this Settlement Agreement taken as a wholeequity: Component Percentage Cost Weighted Cost Tax Factor Pre-Tax Cost Common Equity 52.00 52.40% 9.20 9.670% 4.78 5.067% 1.371422 6.56 % Long-Long Term Debt 48.00 45.73% 5.49 5.263% 2.64 2.407% 2.64 Short Term Debt 1.87% 2.100% 0.039% Total 100.00 100.00% 7.42 % 9.20 7.513%

COST OF CAPITAL AND CAPITAL STRUCTURE. 3.1 3.1. In determining the annual changes to distribution revenue and ratesrequirement, the Settling Parties agreed that application of utilized an overall capital structure and cost of capital as set forth in the table below, including a 9.2 9.50 percent return on equity is just and reasonable in the context of this Settlement Agreement taken as a wholeequity: Component Percentage Cost Weighted Cost Tax Factor Pre-Tax Cost Common Equity 52.00 40.25% 9.20 9.50% 4.78 3.82% 1.371422 6.56 Preferred Stock Equity 0.0% 0.00% 0.00% Long-Term Debt 48.00 58.28% 5.49 5.81% 2.64 3.39% 2.64 Short-Term Debt 1.47% 2.28% 0.03% Total 100.00 100.00% 7.42 % 9.20 7.24%

COST OF CAPITAL AND CAPITAL STRUCTURE. 3.1 In determining the annual changes to distribution revenue and rates, the Settling Parties agreed that application of an overall capital structure and cost of capital as set forth in the table below, including a 9.2 percent return on equity is just and reasonable in the context of this Settlement Agreement taken as a whole: Component Percentage Cost Weighted Cost Tax Factor Pre-Tax Cost Common Equity 52.00 52.00% 9.20 9.20% 4.78 4.78% 1.371422 6.56 6.56% Long-Term Debt 48.00 48.00% 5.49 5.49% 2.64 2.64% 2.64 2.64% Total 100.00 100.00% 7.42 7.42% 9.20 9.20%