COST OF CAPITAL. 8.1 The Company shall be allowed a return on equity of 9.3 percent.
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: Weighted Cost of Capital Computation Percentage Cost Weighted Cost 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%
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. The State will evaluate the risk-adjusted cost of capital inherent in any financing or capital funding strategy. This evaluation will consider the risks associated with the strategy and interest rate sensitivity analysis (to the extent applicable) to estimate the probable and potential cost of the strategy. The evaluation will also require the development of a rationale for the funding strategy that considers not only the economics and risks of the strategy, but also its probable and potential budgetary impact. More particularly: • The State should use tax-exempt debt whenever the interest subsidy inherent therein produces an economic benefit; • The State should compare the cost of capital of any federally authorized bonds that have subsidies or tax credits with traditional tax-exempt bonds; • If the expected use characteristics of a financed facility preclude the use of tax-exempt debt under federal tax law, the State may issue taxable debt and the use of taxable debt will be specifically reviewed by the office of the Attorney General and, if necessary, Bond Counsel prior to issuance; • The State will continue to finance multiple CIP projects within a given bond issuance to reduce issuance costs by consolidating various enabling act authorizations into semi-annual bond sales and using the cash flow method described in Section 4.1 • The State will consider all costs, including any costs specific to variable rate debt such as liquidity and remarketing fees, when evaluating the benefits of variable and fixed rate debt.
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.
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 annual Cost of Capital shall be the greater of (i) the Minimum Capital Charge multiplied by the number of months in such Year that are within the projected period of Market Exclusivity used to compute such Minimum Capital Charge or (ii) the Total Capital Charge. For purposes of calculating the Total Capital charge, the pre-tax cost of capital rate 22% will be applied to the Total Average Assets Employed for KBI-Commercial Production for the Year. Cost of Capital will be charged as a portion of the unitized estimates of the Transfer Price based on the annual KB Budget. Astra corporate headquarters functions are not part of Cost of Capital. The Total Average Assets Employed for KBI-Related Commercial Production for the Year will be determined by the following formula, applied to each manufacturing Site: Total Average Assets Employed for Average Inventory (defined below) plus KBI-Related Commercial Average Gross Fixed Assets (defined below) Production for the Year = plus Cash (defined below) plus accounts receivable (1/12 of sum of 12 month net accounts receivable balances due KB from KBI or any Producer for KBI-Related Commercial Production) Average Inventory = 1/12 of (the sum of 12 months ending inventory of Product Cost of chemical entities and finished and packaged pharmaceutical forms produced by KB for KBI-Related Commercial Production + the sum of 12 months ending inventory of related raw materials and work in process for KBI-Related Commercial Production) Cash = 1/12 of (Product Cost charged to KBI for KBI-Related Commercial Production + Ending KB inventory of KBI chemical entities and finished and packaged pharmaceutical forms for KBI-Related Commercial Production - Beginning KB inventory of KBI chemical entities and finished and packaged pharmaceutical forms for KBI- Related Commercial Production)
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. 3.1 The actual test year capital structure comprised of 49.97% long-term debt and 50.03% common equity shall be adopted.
