PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
PUC Annual ReportâFiscal Year 2011-12 - Public Utilities Commission
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<strong>Public</strong> <strong>Utilities</strong> <strong>Commission</strong> <strong>Annual</strong> Report <strong>2011</strong>-<strong>12</strong><br />
State of Hawaii Page 65<br />
Rates of Return for Utility Companies<br />
As shown in Figure 13a-e, HECO and HELCO have been earning close to their<br />
authorized rate of return, while MECO and TGC have not been earning their authorized<br />
rate of return. KIUC uses a times interest earned ratio (“TIER”), which they converted to<br />
in 2002.<br />
Figure 13a. HECO Rate of Return<br />
10.0%<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0.0%<br />
Jun<br />
'08<br />
Jun<br />
'09<br />
Jun<br />
'10<br />
Jun<br />
'11<br />
Jun<br />
'<strong>12</strong><br />
Authorized ROR 8.62% 8.62% 8.45% 8.16% 8.11%<br />
Ratemaking ROR 6.60% 5.61% 6.98% 5.02% 8.25%<br />
Figure 13b. HELCO rate of return<br />
10.0%<br />
9.0%<br />
8.0%<br />
7.0%<br />
6.0%<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0.0%<br />
Jun '08 Jun '09 Jun '10 Jun '11 Jun '<strong>12</strong><br />
Authorized ROR 8.33% 8.33% 8.33% 8.59% 8.31%<br />
Ratemaking ROR 7.98% 4.87% 6.52% 7.55% 8.39%
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