SCEG OATT Formula Transmission Rate Filing.pdf - SCANA ...

20091231-0037 FERC PDF (Unofficia1) 12/29/2009
Direct Testimony of Alan C. Heintz
Docket ER 10- -000
Page 15 of28
Exhibit No. SCE-8
Attachment 2 and functionalized by the gross plant allocator. Attachment 2 also specifies
2 taxes not functionalized to transmission and reconciles Other Taxes to the total shown in
3 FERC Form I.
4 (g) Return/Capitalization Calculations
5 Lines 99 through 125 calculate the overall rate of return on rate base ("ROR"). With the
6 exception of ROE, the cost rate for common equity (line 121), the majority of the input
7 data are sourced from FERC Form I data and are ultimately trued-up from FERC Form I.
8 Note I instructs that ROE "will be supported in the original filing and no change in ROE
9 will be made absent a filing with FERC."
10 The long-term debt ("LTD") cost rate (line 119) is developed by dividing the LTD
II interest expense (line 101) by total LTD outstanding (line 112). LTD interest expense
12 may be adjusted, if appropriate, to remove interest associated with outstanding
13 securitization bonds (line 100).
14 LTD outstanding is total LTD per FERC Form I (line 108) adjusted for reacquired debt,
IS non-interest bearing debt and securitization bonds. (lines 109 through III).
16 The preferred cost rate (line 120) is the amount of booked preferred dividends (line 102)
17 divided by preferred stock outstanding (line 113).
18 The common equity of the capital structure (line 107) is developed at lines 103 through
19 106 as total booked proprietary capital less the balance of preferred stock outstanding,
20 less the balance recorded in Account No. 216.1 (Unappropriated Undistributed
21 Subsidiary Earnings), plus a securitization adjustment (if applicable).