Investor Presentaiton
FCC-Cable Formula
Section 224(d) Cable Formula for Determining Maximum Rate For Use of Electric Utility Poles
Using FERC Accounts
Maximum Rate
Space Occupied
Net Pole Investment
Carrying
I
x 0.85 x Charge
per Pole
Usable Space
Total Number of Poles
Rate
Where:
Space Occupied
1 foot (presumed, but rebuttable)
Usable Space 13.5 feet (presumed, but rebuttable)
And:
Net Pole
Gross Pole
Accumulated
Accumulated Deferred
Investment
Carrying
Charge Rate
Investment (Account 364) Depreciation (Account108) (Poles) Income Taxes (Account190, 281-283) (Poles)
Administrative + Maintenance + Depreciation + Taxes + Retum
Administrative
Total General and Administrative
Element
Gross Plant Investment
(Electric)
Accumulated Depreciation
(Account108 Electric)
Accumulated Deferred
Taxes (ElectricPlant)
(Accounts190, 281-283)
Maintenance
Element
Pole Investment in
Accounts 364, 365, & 369 -
Account 593
Depreciation (Poles) Related to
Accounts 364, 365, & 369
Accumulated Deferred
Income Taxes related to
Accounts 364, 365, & 369
Depreciation Gross Pole Investment (Account 364)
Element
Net Pole Investment
Taxes
Element
Depreciation Rate
X
for Gross Pole Investment
Accounts 408.1 +409.1410.1 +411.4411.1
Gross Plant Investment Accumulated Depreciation Accumulated Deferred Taxes (Plant)
(Account190,281-283)
(TotalPlant)
(Account108)
Return
Element
Applicable Rate of Return (default = 11.25%)
35
Davis Wright
Tremaine LLPView entire presentation