Common use of Return on Equity Clause in Contracts

Return on Equity. The Parties agree that a return on equity of 9.75% is reasonable for the Utilities’ electric operations, and the agreed stipulated revenue requirement increases for the Utilities’ electric operations reflect that return on equity as applied to the Utilities’ capitalizations and capital structures underlying their originally proposed electric revenue requirement increases as modified through discovery. Use of a 9.75% return on equity reduces the Utilities’ proposed electric revenue requirement increases by $15.3 million for KU and $10.1 million for LG&E.

Return on Equity. The Parties agree that stipulate a return on equity of 9.759.725% is reasonable for the Utilities’ electric operations, and the agreed stipulated revenue requirement increases provided above for the Utilities’ electric operations reflect that return on equity as applied to the Utilities’ capitalizations and capital structures underlying their originally proposed electric revenue requirement increases as modified through discoveryincreases. Use of a 9.759.725% return on equity reduces the Utilities’ proposed electric revenue requirement increases as set forth in their applications by $15.3 20.14 million for KU and $10.1 12.71 million for LG&E.