Revenue Requirement Clause Examples

Revenue Requirement. The Parties agree that the total estimated revenue deficiency inclusive of Beethoven and the air quality control system added to the Big Stone Generating Station (Big Stone AQCS) is $29,234,022 as illustrated in the chart below. When recognizing the existing Beethoven QF contracts costs to be eliminated, the net impact to customers is $20,919,313. Per SDCL 49-34A- 21, in no event shall the rates approved by the Commission exceed the level of rates requested by NorthWestern. When examining this statute, the Parties agree it is appropriate to recognize the reduction in the Delivered Cost of Fuel adjustment that will be achieved as including Xxxxxxxxx in this rate case is merely a shift in the method of cost recovery and the Delivered Cost of Fuel adjustment is a rate paid by customers that impacts the total level of revenues received by NorthWestern. While the first-year revenue requirement for Xxxxxxxxx is $703,109 higher than the current QF contracts, power prices under the QF contracts escalate quickly and are expected to be higher than the owned revenue requirement after the second year and throughout the remainder of the QF contracts. The Parties estimate that NorthWestern’s customers will save approximately $44 million ($25 million NPV) over the 20-year period by NorthWestern acquiring Beethoven versus the 20-year QF contracts. Except as noted elsewhere in this Stipulation, the table below shows the total rate impact of all of the Parties’ agreements. NWE SD Electric Beethoven Total The actual first-year impact on NorthWestern’s customers will be less than the $21 million net impact shown in the table above due to the effect of the delayed in-service date of some assets. Paragraphs 2, 3, and 4 below describe adjustments due to the dates at which Xxxxxxxxx, the Big Stone AQCS, and incremental allowed capital investments through September 30, 2015, are put in service. The Parties agree to a 7.24% rate of return on rate base.

Revenue Requirement. ICMA-RC shall receive total annual aggregate revenue of 0.0725% of Plan assets under ICMA-RC’s administration for providing recordkeeping and other services to the Plans. Such revenue shall be deducted by ICMA-RC from amounts collected through the application of the asset-based fee described in section 8(a) prior to allocation of any participant level asset-based fees to the Administrative Allowance Account described is section 8(c) below.

Revenue Requirement. The Settling Parties agree to a total revenue requirement for PAC in the amount of $820,848 as calculated based on the proposed modified rate structure described above. This increase represents an overall 5.43% increase in overall pro forma test year revenues of $778,598. Further, this revenue requirement includes proposed revenues from water sales of $818,185, which represents a 5.45% increase in PAC’s pro forma test year revenues from water sales of $775,935, or an increase of $42,250. The calculation of the revenue requirement proposed for PAC is contained in Attachment A to this Agreement. The Settling Parties agree that this represents a reasonable compromise of all issues relating to the revenue requirement pending before the Commission for the purposes of permanent rates, including, but not limited to, debt service, pro forma adjustments, capital additions, and operating expenses. As the sums expressed above are the result of compromise and settlement, they are liquidations of all revenue requirement issues and do not constitute precedent regarding any particular principle or issue. The Settling Parties agree that the revenue requirement recommended to the Commission results in rates for PAC’s customers that are just and reasonable.

Revenue Requirement. (a) The Mainline System's revenue requirement ("Revenue Requirement") for the period January 1, 2015 to December 31, 2020 used to determine the tolls during the same period shall include all prudently incurred costs, including the following: (i) a deemed debt / equity ratio of 60/40; (ii) a rate of return on equity ("XXX") of 10.1%; (iii) a $20 million after-tax contribution from TransCanada, annually, from January 1, 2015 to December 31, 2020; (iv) the Annual Bridging Amount as set forth in Appendix A; (v) a forecast of incremental capital costs; and (vi) a forecast of cost of service components. (b) The Parties agree that: (i) all prudently incurred capital costs for facilities constructed in the EOT during the period from January 1, 2015 to December 31, 2030 shall be included in the EOT rate base and tolled on a rolled in basis; (ii) all prudently incurred costs associated with the EOT, including costs associated with all new facilities constructed in the EOT during the period from January 1, 2015 to December 31, 2030, shall be recovered from all services on the Mainline System whose paths include Receipt Points and/or Delivery Points in the EOT during the period from January 1, 2015 to December 31, 2030; and (iii) the LDCs are not restricted from taking any position with respect to the determination of whether such EOT costs are prudently incurred. (c) Allowance for funds used during construction shall be calculated using the Mainline System's approved XXX, actual cost of debt and a deemed debt/equity ratio of 60/40. (d) During the period January 1, 2014 to December 31, 2030, the Parties agree that any and all costs and expenses reasonably and prudently incurred by TransCanada as a result of its transportation contracts on the TQM System, Union System and Enbridge System, and costs and expenses reasonably and prudently incurred by TransCanada as a result of its long term firm transportation contracts on the GLGT System for up to 500,000 GJ/day from St. Clair Receipt Point at the interconnection of the Mainline System and GLGT System to the Xxxxxxx Delivery Point at the interconnection of the GLGT System and the Mainline System (including deliveries to Sault Ste. Xxxxx) ("TBO Costs") shall be included in TransCanada's Revenue Requirement and each LDC shall actively support TransCanada in obtaining the inclusion of the TBO Costs into its Revenue Requirement provided that they are reasonably and prudently incurred. (e) Subject to subsections 12.1(b) and (...

Revenue Requirement. KCP&L’s revenue requirement will be reduced by $21 million. GMO’s revenue requirement will be reduced by $24 million. This Stipulation resolves the following issues in the September 12, 2018 Corrected List of Issues filed in this case: II. Cost of Capital; III. Crossroads Energy Center; IV. GPE/Westar Merger-Transition Costs; V. Fuel Adjustment Clause (“FAC”);

Revenue Requirement. The Parties agree and recommend that Liberty Utilities be authorized to increase its annual non-gas Missouri jurisdictional base rate revenues by a total amount of Four Million, Six Hundred Thousand Dollars ($4,600,000). Such changes are shown in the specimen tariff sheets set forth in Attachment 1 hereto and are to be effective for service rendered on and after July 1, 2018. The revenue amounts referenced in this paragraph are exclusive of any applicable license, occupation, franchise, gross receipts taxes or other similar tax or taxes. Without agreeing to any ratemaking principle or precedent, the Parties acknowledge that the costs being excluded from the revenue requirement in this case are sufficient in amount to reflect a sharing of rate case expense as well as the full or partial adoption of other adjustments proposed by the Staff and OPC in this proceeding. The revenue requirement recommended herein is based on a 9.8% XXX which is 20 basis points lower than the 10% XXX recommended by the Staff in recognition of a number of factors, including the adoption of a WNAR in this proceeding.

Revenue Requirement. Alberta Clipper Canada’s revenue requirement shall consist of: (a) a capital revenue requirement (“CRR”), including a return on rate base as more particularly set out in Paragraph 4; and (b) a non-capital revenue requirement (“NCRR”) as set out in Paragraph 5 below.

Revenue Requirement. 2.1 Aquarion’s permanent rates shall be based on a total revenue decrease of $305,227 reflecting expenses and plant investments through 2019, effective for service rendered on and after the dates the Commission issues orders approving both the permanent rate and Step 1 revenue requirements (See Appendix 3), to be reconciled back to February 1, 2021, the effective date of temporary rates, consistent with Order No. 26,488 (June 21, 2021) in this proceeding.2 2.2 The agreed-upon revenue decrease is a function of the net adjustments that have been made to the revenue requirement in order to reach settlement. 2.3 In setting this revenue requirement, the Settling Parties agree to the adjustments shown in Appendix 1. 2.4 Aquarion shall use whole life depreciation and the depreciation accrual rates shown in Appendix 2. The OCA agrees to the whole life method only for the purposes of this Settlement 2 Based on Order No. 26,449 suspending rates for 18 months, the outside date for the Commission to render an order on permanent rates is July 31, 2022. The Commission stated therein that it “will endeavor to set rates as expeditiously as possible.” Order No. 26,449 at 4. Agreement and reserves the right to urge the Commission in other cases, for the Company or any other utility, to use an alternative method of depreciation. 2.5 Permanent rates and the step adjustment (as provided in Section 4 below) shall be effective upon approval of the step adjustment. Appendix 3 describes the process and timing for implementation of permanent rates, the temporary-to-permanent rate recoupment and the step adjustment, in addition to the Company’s filings for rate case expense and property-tax reconciliation. 2.6 Consistent with Aquarion’s representations to the Commission in DW 17-114, the agreed- upon revenue requirement includes the amortized recovery of merger-related transaction costs only to the extent of quantifiable net merger savings. The merger-related transaction costs eligible for recovery exclude recovery of any acquisition premium associated with the merger transaction in that docket. The parties agree that there shall be no recovery of any amount of acquisition premium. The merger costs are to be amortized over a period of 20 years. 2.7 It is explicitly understood and agreed among the Settling Parties that adjustments made to the revenue requirement for purposes of reaching settlement shall not establish precedent for future rate proceedings.

Revenue Requirement. KCP&L shall be authorized to file revised tariff sheets containing rate schedules for electric service designed to produce an increase in overall Missouri jurisdictional gross annual electric revenues, exclusive of any applicable license, occupation, franchise, gross receipts taxes or other similar fees or taxes, of $95.0 million, effective for electric service rendered on and after September 1, 2009, provided however, that the Iatan 1 Air Quality Control System (“AQCS”) facilities meet the Staff’s in-service criteria which are attached to the Direct Testimony of Xxxxx Xxxxx as Schedule BCD-2 by May 30, 2009. $10.0 million of the $95 million rate increase shall be comprised of “Additional Amortizations to Maintain Financial Ratios” (“Additional Amortizations”), as that term is defined in the Stipulation And Agreement reached in the Company’s proceeding to approve its Experimental Regulatory Plan, Case No. EO-2005-0329, as approved by the Commission (“2005 Stipulation”). Exemplar revised tariff sheets designed to implement this 2009 Stipulation are attached as Schedule 1 (to be late-filed). The rates reflected in Schedule 1 have been calculated based on the billing determinants developed by Staff in this proceeding. Subject to the provisions herein, the stipulated rate increase resolves all revenue requirement issues in this case.