Calculating the Revenue Requirement in Electricity
Calculating the Revenue Requirement in Electricity
Calculating the Revenue Requirement in Electricity
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Assess<strong>in</strong>g Value of Utility – Rate Base• Rate Base Determ<strong>in</strong>ationGross Plant <strong>in</strong> Service (orig<strong>in</strong>al cost of physical asset)Less : Accumulated DepreciationEquals : Net Plant <strong>in</strong> ServicePlus : Work<strong>in</strong>g CapitalPlus : Materials and suppliesPlus : Customer depositsLess : Cumulative reserve for deferred <strong>in</strong>come taxesEquals : Rate Base11
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