Return on Rate Base Sample Clauses
Return on Rate Base. Component The Return on Rate Base shall be the aggregate sum of the total Annual Revenue Requirement for the Public Water Supply System as defined in Article 8.4 less the sum of the Utility Basis Revenue Requirement components established in (a) through (d) above. (Annual Cash Basis Revenue Requirement – Direct Operation, Maintenance and Repair Costs – Administrative and Indirect Operating Costs - PILOT – Depreciation Expense = Return on Rate Base)
Return on Rate Base. (a) The components of the Weighted Cost of Capital to be used in calculating the Total Cost of Service shall consist of an Equity Ratio, a Rate of Return on Equity, a Long Term Debt Ratio, and a Rate of Return on Long Term Debt. The stipulated amount for each component is set forth in Section II-11(b)-(d). The stipulated amount for each component shall apply to all periods after December 31, 2016, through the Initial Term of the Agreement and each additional three-year term, except as provided in subpart (j) below.
(b) The Long Term Debt Ratio is 52.07 percent. The Equity Ratio is 47.93 percent.
(c) The Rate of Return on Long Term Debt is 5.21 percent.
(d) The Rate of Return on Equity is 10.86 percent.
(e) The Return on Rate Base for a calendar year shall equal the Average Rate Base multiplied by the Weighted Cost of Capital.
(f) Average Rate Base equals Rate Base at the end of the prior calendar year plus Rate Base at the end of the current calendar year divided by two (midyear convention).
(g) The Weighted Cost of Capital is equal to the Equity Ratio multiplied by the Rate of Return on Equity plus the Long Term Debt Ratio multiplied by the Rate of Return on Long Term Debt.
(h) The Long Term Debt Portion of Return on Rate Base for a calendar year equals: - the Average Rate Base for that calendar year multiplied by: - the Long Term Debt Ratio, multiplied by: - the Rate of Return on Long Term Debt.
(i) The Equity Portion of the Return on Rate Base for a calendar year equals: - the Average Rate Base for that calendar year multiplied by: - the Equity Ratio, multiplied by: - the Rate of Return on Equity.
(j) Each Party shall have the right to request an adjustment of any of the cost of capital components identified in Section I-II(a)-(d) above, to be effective upon commencement of the immediately following three-year term, at the end of the Initial Term or at the end of any following three-year term by giving notice to the other Parties a minimum of 150 days prior to the end of the applicable term. If any Party requests an adjustment of any of the cost of capital components, the Parties shall confer in good faith in order to stipulate to cost of capital components to be used during the next three-year period. If the Parties are unable to agree to cost of capital components for the next three-year period and the Agreement is not otherwise terminated as provided for in Section II-1(a), the TAPS Carriers shall calculate the Maximum Allowable Interstate Rate under...
Return on Rate Base. (a) The components of the Weighted Cost of Capital to be used in calculating the Total Cost of Service for a calendar year consist of an Equity Ratio, a Rate of Return on Equity, a Long-Term Debt Ratio, and a Rate of Return on Long-Term Debt.
(b) The Capital Structure consists of a Long-Term Debt Ratio of 51.6% and an Equity Ratio of 48.4%.
(c) The Rate of Return on Long-Term Debt will be 5.06%.
(d) The Rate of Return on Equity will be 10.77%.
(e) The Return on Rate Base for a calendar year shall equal the Average Rate Base multiplied by the Weighted Cost of Capital.
(f) Average Rate Base equal Rate Base at the end of the prior calendar year plus Rate Base at the end of the current calendar year divided by two (midyear convention).
(g) The Weighted Cost of Capital is equals the Equity Ratio multiplied by the Rate of Return on Equity plus the Long-Term Debt Ratio multiplied by the Rate of Return on Long- Term Debt.
(h) The Debt Portion of Return on Rate Base for a calendar year equal: - the Average Rate Base for that calendar year multiplied by: - the Long-Term Debt Ratio, multiplied by: - the Rate of Return on Long-Term Debt.
(i) The Equity Portion of the Return on Rate Base for a calendar year equals: - the Average Rate Base for that calendar year multiplied by: - the Equity Ratio, multiplied by: - the Rate of Return on Equity.
(j) Each Party shall have the right to request an adjustment of the Capital Structure, Rate of Return on Long-Term Debt, or the Rate of Return on Equity, to be effective in calculating the Maximum Rates for the years 2019 through 2021 and each three-year period after that by giving notice to the other Parties at least 90 days prior to the beginning of the applicable three-year period.
(i) If any Party makes an election to request an adjustment of the Capital Structure, the Capital Structure for the applicable three-year period shall be based on the average Capital Structure of the proxy group that the RCA would allow to be used to calculate Rate of Return on Equity for a natural gas pipeline. The Capital Structure for the proxy group shall be determined as of the end of the calendar year in which notice to reopen was given. Since the rates for the new term must be filed by November 1 of the calendar year in which the notice to reopen was given, OPC shall file rates for the first year of the upcoming three-year period using the Capital Structure from the prior three-year period and account for any difference using the Net Carryover....
Return on Rate Base