Cost of Capital Rate Sample Clauses

Cost of Capital Rate. The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes. (a) The Weighted Costs of Capital will be calculated for the Transmission Investment Base using Connecting Transmission Owner’s actual capital structure and will equal the sum of (i), (ii), and (iii) below: (i) the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s long-term debt then outstanding and the actual long-term debt capitalization ratio. (ii) the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s preferred stock then outstanding and the actual preferred stock capitalization ratio; (iii) the return on equity component, shall be the product of the allowed XXX of 10.30% or such value as most recently approved by the Commission plus a 50 basis point adder (per FERC Order 697 and 697-A, if authorized by the Commission for the Connecting Transmission Owner) and Connecting Transmission Owner’s actual common equity capitalization ratio. (b) Federal Income Tax shall equal where A is the sum of the preferred stock component and the return on equity component, each as determined in Sections 2.(a)(ii) and for the XXX set forth in 2.(a)(iii) above (c) State Income Tax shall equal Where A is the sum of the preferred stock component and the return on equity component as determined in A.2.(a)(ii) and A.2.(a)(iii) above and Federal income Tax is determined in 2.(b) above.

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Cost of Capital Rate. The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes. (a) The Weighted Costs of Capital will be calculated for the Transmission Investment Base using NMPC’s actual capital structure and will equal the sum of (i), (ii), and (iii) below: (i) the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of NMPC’s long-term debt then outstanding and the actual long-term debt capitalization ratio. (ii) the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of NMPC’s preferred stock then outstanding and the actual preferred stock capitalization ratio; (iii) the return on equity component, shall be the product of the allowed XXX of 11.9% plus a 50 basis point adder (per FERC Order 697 and 697A) and NMPC’s actual common equity capitalization ratio. (b) Federal Income Tax shall equal A x Federal Income Tax Rate (1 - Federal Income Tax Rate) where A is the sum of the preferred stock component and the return on equity component, each as determined in Sections 2.(a)(ii) and for the XXX set forth in 2.(a)(iii) above (c) State Income Tax shall equal Where A is the sum of the preferred stock component and the return on equity component as determined in A.2.(a)(ii) and A.2.(a)(iii) above and Federal income Tax is determined in 2.(b) above.

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Cost of Capital Rate. The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes.

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Cost of Capital Rate. The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes. (a) The Weighted Costs of Capital will be calculated for the Transmission Investment Base using Connecting Transmission Owner’s actual capital structure and will equal the sum of (i), (ii), and (iii) below: Issued by: Xxxxxxx X. Xxxxxxx, President Effective: December 17, 2009 Issued on: January 5, 2010 (i) the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s long-term debt then outstanding and the actual long-term debt capitalization ratio. (ii) the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s preferred stock then outstanding and the actual preferred stock capitalization ratio; (iii) the return on equity component, shall be the product of the allowed XXX of 11.9% plus a 50 basis point adder (per FERC Order 697 and 697A) and Connecting Transmission Owner’s actual common equity capitalization ratio. (b) Federal Income Tax shall equal A x Federal Income Tax Rate (1 - Federal Income Tax Rate) where A is the sum of the preferred stock component and the return on equity component, each as determined in Sections 2.(a)(ii) and for the XXX set forth in 2.(a)(iii) above (c) State Income Tax shall equal Where A is the sum of the preferred stock component and the return on equity component as determined in A.2.(a)(ii) and A.2.(a)(iii) above and Federal income Tax is determined in 2.(b) above.

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Cost of Capital Rate. The Cost of Capital Rate shall equal the proposed Weighted Costs of Capital plus Federal Income Taxes and State Income Taxes. (a) The Weighted Costs of Capital will be calculated for the Transmission Investment Base using Connecting Transmission Owner’s actual capital structure and will equal the sum of (i), (ii), and (iii) below: (i) the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s long-term debt then outstanding and the actual long-term debt capitalization ratio. (ii) the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of Connecting Transmission Owner’s preferred stock then outstanding and the actual preferred stock capitalization ratio; (iii) the return on equity component, which shall be the product of the allowed XXX of 10.3% and Connecting Transmission Owner’s actual common equity capitalization ratio. (b) Federal Income Tax shall equal where A is the sum of the preferred stock component and the return on equity component, each as determined in Sections 2.(a)(ii) and for the XXX set forth in 2.(a)(iii) above (c) State Income Tax shall equal Where A is the sum of the preferred stock component and the return on equity component as determined in A.2.(a)(ii) and A.2.(a)(iii) above and Federal income Tax is determined in 2.(b) above.

Cost of Capital Rate. The Cost of Capital Rate will equal (a) the Transmission Provider's Weighted Cost of Capital, plus (b) Federal Income Tax plus (c) State Income Tax. (a) The Weighted Cost of Capital will be calculated based upon the capital structure at the end of each year and will equal the sum of: (i) the long-term debt component, which equals the product of the actual weighted average embedded cost to maturity of the Transmission Provider's long-term debt then outstanding and the ratio that long-term debt is to the Transmission Provider's total capital. NEPOOL Open Access Transmission Tariff Original Sheet No. 220 (ii) the preferred stock component, which equals the product of the actual weighted average embedded cost to maturity of the Transmission Provider's preferred stock then outstanding and the ratio that preferred stock is to the Transmission Provider's total capital. (iii) the return on equity component, which equals the product of the Transmission Provider's Return on Equity as set in the Provider's LNS open access tariff rate and the ratio that common equity is to the Transmission Provider's total capital. (b) Federal Income Tax shall equal A x FT ------ 1 - FT Where FT is the Federal Income Tax Rate and A is the sum of the preferred stock component and the return on equity component, as determined in Section (I)(A)(2)(a)(ii) and Section (I)(A)(2)(a)(iii) above. (c) State Income Tax shall equal (A + Federal Income Tax) x ST ------------------------------ 1 - ST where ST is the State Income Tax Rate, A is the sum of the preferred stock component and the return on equity component determined in Section (I)(A)(2)(a)(ii) and Section (I)(A)(2)(a)(iii) above, and Federal Income Tax is the rate determined in Section (I)(A)(2)(b) above. NEPOOL Open Access Transmission Tariff Original Sheet No. 221

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