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

EXHIBIT NO. SCE-I6
Table No. MJV-4
Panel A: Commission-Based Unrestricted Electric Sample
Summary of High, Low and Median Cost of Equity Estimates
Companies Meeting Sample Screening Criteria
DCF Cost of Equity
6_MQnth Dividend Yield Adjusted Dividend Yield Grov.rthRates Implied Cost of Equity
Company Bond Rating High Low High Low High Low High Low
[t) [2) [3) [4) [5) [6) [7) [8) [9)
American Electric Power Co Inc BBB 5.92% 5,55% 6.07% 5.68% 5.00% 4.81% 11.07% \0.49%
Cleco Corp BBB 4.10% 3.85% 4.35% 3.95% 11.82% 4.81% 16.16% 8,76%
Empire District Electric Co/The • BSB- 7.87% 7.39% 9.21% 7,50% 34.00% l.8ID/':' 43.21% 10.30%
Entergy Corp BBB 4.17% 3,87% 4.34% 3,99% 8.25% 6.33% 12.59% 10.33%
aGE Energy Corp BBB+ 523% 4.88% 5,39% 5.00% 6,32% 5.00% 11.71% 10.00%
Centerpoint Energy Inc BBB 7.04% 6.48% 7.28% 6.70% 7.00% 6.62% 14.28% 13.32%
Progress Energy Inc BBB+ 6.88% 6.50% 7.06% 6.59% 5.42% 2.51% 12.48% 9.09%
Dominion Resources Inc/VA A· 5.54% 5.28% 5.77% 5.42% 7.99% 5.33% 13.75% 10.75%
FPL Group Inc A 3.52% 3.29% 3.68% 3.44% 9.05% 8.80% 12.73'% 12.23%
SCANACorp BBB 5.99% 5.64% 6.14% 5.77% 4.91% 4.66% 11.05% 10.43%
Southern Co A 5.92% 5.58% 6.07% 5.70% 5.25% 4.31% 11.32% 1000%
TECO Energy Inc BBB 6.86% 6.30% 7.05% 6.42% 5.50% 3.62% 12.55% 10.04%
Duke Energy Corp A- 6.71% 6.39% 6.82% 644% 3.38% 1.28% 10.20% 7.72%
Xce1 Energy Inc BBB+ 5.39% 5.10% 5.54% 5.20% 5.50% 4.06% 11.04% 9.26%
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Range 16.16% 7.72%
Midpoint 11.94%
Median 11.04%
Mean 11.28%
Number of companies meet screening criteria 14
Number of companies included in the calculation of Implied Cost of Equity 13
Sources
and Notes
[I]: Table No. MJV-2, [3]
[2]: Workpaper #7 to Table No. MJV-4, Panel 8, [4].
[3) Workpaper #7 to Table No. MIV-4, Panel A, [4]
[4) [2) x ( 1 +5 x [6) ).
[5) [3)x( 1 +5x[7))
[6]: Highest Growth Rate from Workpaper #1 to Table No. MJV-4, [7] and Workpaper #10 to Table No. MJV-4, [l].
[7]: Lowest Growth Rate from Workpaper #1 to Table No. MJV-4 [7] and Workpaper#1O to Table No MJV-4, [IJ.
[8) [4) + [6).
[9) [5) + [7) .
• Companies which were excluded either because their growth rate is above 13.3% or estimated cost of equity is below cost of debt plus 100 bps (excluded numbers are bold and italicized). These
companies are not included in the calculation of Median and Mean.
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