Investor Presentaiton
Rhode Island Regulatory Overview
Rhode Island Energy
Key Attributes
2022 Rate Base
Year-End Rate Base ($B)
$3.2
% of Total PPL Rate Base
Allowed ROE
Electric Transmission
Electric Distribution
Gas Distribution
Capital Structure (2021A)
ppl
13%
10.57% +adders (1)
9.275%(2)
9.275% (2)
51%
49%
Constructive Regulatory Features Mitigating Regulatory Lag
Multi-year rate plans for electric and gas distribution
Infrastructure, Safety, and Reliability (ISR) tracker
Annual recovery mechanism for certain capital and O&M costs for
electric and gas distribution projects filed with the RIPUC
Performance-based incentive revenues
Includes electric system performance, energy efficiency, natural gas
optimization, and renewables incentives
Revenue decoupling
Storm cost recovery
Equity
Debt
Last Base Rate Case
9/1/2018
(rates effective date)
Test Year
Multi-year(3)
Pension expense tracker
ā
Energy Efficiency tracker
FERC Formula Transmission Rates
(1)
Reflects base allowed ROE. Rhode Island Energy receives a 50-basis point RTO adder and additional project adder mechanisms that may increase the allowed ROE up to 11.74%.
(2) Reflects base allowed ROE. Rhode Island Energy can earn higher returns than the base allowed ROE through incentive mechanisms and efficiencies that are supported by customer sharing mechanisms. Earnings sharing with customers includes 50% of
earnings above the base allowed return between 9.275% and 10.275% and 75% of earnings over 10.275%.
(3) Based on regulatory framework established in 2018, which included a multi-year framework for Rhode Island Energy Electric and Gas base rates based on a historical test year with the ability to forecast certain O&M categories for future years. All other
O&M expenses are increased by inflation each year. Includes annual rate reconciliation mechanism that incorporates allowance for anticipated capital investments.
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