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ENERGY EFFICIENCY BENEFITS CALCULATOR

National Action Plan for Energy Efficiency


July 31, 2006 Version
Contractor: Energy and Environmental Econcomics, Inc.

ENERGY EFFICIENCY BENEFITS CALCULATOR

Instructions

National Action Plan for Energy Efficiency


31-Jul-06
Contractor: Energy and Environmental Economics, Inc.

INSTRUCTIONS
PURPOSE
The Energy Efficiency Benefits Calculator (Calculator) is a tool that demonstrates the benefits
to customers, utilities, and society of implementing energy efficiency programs. The Calculator
was developed for the Leadership Group of the National Action Plan for Energy Efficiency and
is one of the resources available to aid users in promoting the adoption of energy efficiency
programs. The Calculator is designed to support the new national commitment for energy
efficiency by demonstrating the energy efficiency business case from multiple perspectives
using transparent input assumptions and easily verifiable calculation methodology. Results
from the Calculator can be used, in conjunction with other program planning materials, to:
- Make the business case for an aggressive new energy efficiency commitment.
- Gain support for energy efficiency across the diverse set of stakeholders making decisions
about energy supply, including utilities, regulators, customers, businesses, and others.
- Show the range of benefits and impact on different approaches to program design using
what-if type analysis.
INTRODUCTION
The Calculator is a powerful resource that utilities, regulators, and partner organizations can use
to demonstrate the economic and environmental benefits accruing to all parties through
adoption of energy efficiency measures. The tool can evaluate the business case for energy
efficiency universally across utility types and provides robust results encompassing consumer,
utility, and societal benefits. It can be calibrated to numerous applications: electricity and
natural gas; public or private utilities (investor-owned utilities, municipal utilities and
cooperatives); vertically integrated or restructured markets; various utility financial structures;
different rate-setting approaches; with/without decoupling in base case and EE case; and
with/without shareholder incentives. It is straightforward to use and produces compelling
results. Because the Calculator was designed to accommodate a wide variety of utility types,
while at the same time requiring easily obtainable input data, the results are geared to education
and outreach purposes. The Calculator is not designed to be used for applications requiring
detailed data for specific applications such as rate-setting, comparing different types of energy
efficiency policies, cost effectiveness testing, energy efficiency resource planning analysis, and
consumer behavior analysis.
INSTRUCTIONS FOR USE
The Calculator is designed for users with a basic understanding of Excel and a moderate
understanding of utility economics. Data should be entered in cells with yellow highlighting
and blue color.
The model consists of 14 tabs, including the Cover and Instructions.
* Data will be entered only on the Step1 and Step2 tabs.
* If you do not wish to adapt the model to a specific utility, you may select one of the cases on
the Interpretation tab. To run one of these cases, simply select the case from the drop-down
menu in column D. To save a case you have manually input, press the Save Scenario button.
* The Interpretation tab provides an explanation of Calculator results, based on active
assumptions.
* The other tabs in the model (Electric No EE, Electric EE, Electric EE No Decoupling, Gas
No EE, Gas EE, Gas EE No Decoupling, Energy Forecast, Emissions, and Scenarios) perform
calculations only and have been hidden.
On the Step1 tab, you will calibrate inputs to your utility (size, rate-base, rate levels, growth
forecast, costs).
On the Step2 tab, you will adjust energy efficiency costs and savings inputs, decoupling and
sensitivities, then examine charts depicting program impact.
The Interpretation tab is a summary of results and is intended to be utilized to communicate the
business case for cost-effective energy efficiency to stakeholders.

Instructions

STEP 1 INPUTS SHEET - UTILITY-SPECIFIC INSTRUCTIONS


Utility Type
From the drop-down menu, select whether your utility is investor owned (1) or a public power or
cooperative utility (2). Your choice is shown in column E. Inputs not required will show in gray.
From the drop-down menus, select whether your utility provides electricity, gas or both by selecting
TRUE or FALSE. Your choice is shown in column E. Inputs not required will show in gray.
2007 is fixed as the first year of this analysis.
Separate results are provided for each type of utility (electric and natural gas).
You do not need to zero out data pertaining to a utility type that you do not use.
Load Forecast
Enter 2006 peak load (MW or mcf/day), 2006 load factor (%), and average annual forecast sales growth
rate (%) for your utility type(s).
Rates Inputs
Enter 2006 average rate ($/kWh or $/therm).
The model calculates 2006 annual sales (MWh or bcf) and 2006 revenue ($MM).
Energy Cost Forecasts
Average Cost Inputs
These inputs are used to calculate to purchases or production costs, before energy efficiency is applied.
Enter 2006 average costs of purchases or production cost for power and/or fuel:
For electric utilities, enter an energy cost in $/MWh and/or a capacity cost in $/kW-yr.
For gas utilities, enter a fuel cost in $/MMBtu and/or a capacity/storage cost in $/mcf/day.
Enter average marginal losses and/or unaccounted for (%). This figure is applied as an increase to
annual energy (vs capacity) sales.
Enter average energy and capacity cost escalation.
Marginal Cost Inputs
These inputs are used to calculate cost savings of purchased energy due to EE measures (no purchased
capacity savings assumed).
Pricing used to calculate this savings can be either market-forward curves or first-year inputs, which are
then escalated.
Selecting TRUE activates the market-forward curves:
For electricity, you must then select market location from the drop-down menu.
For gas, you must input the average nominal basis adjustment to Henry Hub
Enter the peak to off-peak or winter to summer price ratio. This ratio is applied to the peak/winter
price to calculate the off-peak/summer price.
Selecting FALSE activates first-year pricing, for which you must input a peak price, peak to off-peak
price ratio, and cost escalation.
Peak price should be the average peak price ($/MWh or $/MMBtu) for 2007 in 2007$. For a gas
utility, the price you enter should include any basis adjustment.
The peak to off-peak or winter to summer price ratio is applied to the peak/winter price to
calculate the off-peak/summer price.
The first year prices active in model calculations are shown below "Year 1 Marginal Cost"
Emissions Inputs
For electric utility, select marginal technology during peak and off-peak periods, 2007 cost of emissions
($), and cost escalation.
For gas utility, input emissions rates, 2007 cost of emissions ($), and escalation.
Capital Expenditure and Depreciation
Enter average book and tax asset depreciation terms (years).
Enter average annual capex expenditure (2006$MM), escalation, and percent of capex expenditure to
serve growth (vs maintenance).
Growth capital expenditure is reduced by energy efficiency measures in the EE case.
See Line Item Capital Expenditures below for additional capex inputs.
Other Expenses, Maintenance
Enter O&M expense as a percent of 2006 revenue. 2006 expense assumption active in model appears in
cell below (in $MM).
Enter O&M cost escalation rate.
Financing and Taxes
For investor-owned utilities:
Enter average interest rate for debt (%), average debt to total capital ratio and target return on
equity (%). Model then calculates WACC.
Enter applicable federal and state tax rates. Model calculates a combined rate for use in calculations.
Enter rate base assets ($MM) projected for the end of 2006.
For public and cooperative utilities:
Taxes always assumed to be zero.

Instructions

Enter debt cost, total asset base ($MM) projected for the end of 2006, and total debt amount
($MM) projected for the end of 2006.

Instructions
Rate Setting
For investor-owned utilities:
Enter trigger for determining rate case year: regular cycle (1) or earnings band (2).
Enter length of cycle if (1) is selected per above.
Enter next rate case year if (1) is selected per above.
Enter band on earnings (+/- ROE) if (2) is selected per above.
For public power or cooperative utilities:
Enter trigger for determining rate case year: debt service coverage ratio (1) or cash position (2)
If (1) is selected, enter pre-tax DSCR for triggering rate case and target DSCR for establishing rates.
If (2) is selected, enter cash position at the end of 2006 ($MM) and cash position triggering rate case ($MM).
Enter percent of annual revenue paid in lieu of tax.

Line Item Capital Expenditures


Enter projected nominal dollar capital expenditures and year of expense for capex not already included in average
annual capital expenditures above.
Capital expenditure schedule will be delayed based upon growth-related capacity savings resulting from EE program.
STEP 2 INPUTS SHEET - ENERGY EFFICIENCY PROGRAM ASSUMPTIONS AND RESULTS CHARTS
EE Costs and Budget
Enter percent of 2006 revenue devoted to energy efficiency program budget. This percent is treated as an annual
expense recovered in rates, with no associated profit component.
Enter administrator cost in $/MWh and/or $/MMBtu. This input converts EE program budget entered
above into total MWh/mcf savings
Total MWh/mcf savings is then converted to annual savings per average life of efficiency measures and
utility WACC.
Enter participant cost in $/MWh and/or $/MMBtu. Model then shows total cost of EE.
Enter escalation - escalation is applied to both program costs and administrator costs.
Enter average life (in years) of implemented energy efficiency measures.
Resource Savings
For Electric Utility:
Enter percent of energy savings on-peak (onpeak MWh / total MWh). Applies to EE savings of
purchased/produced energy.
Enter ratio of peak MW savings to average MW savings. Must be >= 100%.
This ratio is the inverse of the coincident peak load factor of the energy efficiency program.
For example, 200% means that 2 MW are saved during the coincident peak load hour, for energy savings of 1
average MW or 8760 MWh of energy efficiency. Average MW = Annual MWh savings / 8760.
Enter percent growth related capacity saved. Applies to EE savings of purchased/produced capacity.
Enter percent
related
capex saved.
Applies
annual and
line itemcost
capex.
whethergrowth
to include
emissions
cost savings
in to
economics
(emissions
by default assumed
always included in base case economics)
For Natural Gas Utility:
Enter percent of savings in winter (winter mcf / total mcf). Applies to EE savings of purchased/produced energy.
Enter
related
capex saved.
Applies
EE savings
of annualcost
andbyline
item assumed
capex.
Enter percent
whethergrowth
to include
emissions
cost savings
in to
economics
(emissions
default
always included in base case economics)
Revenue Requirement and Decoupling Inputs
Enter whether to activate decoupling (adjusts rates for variations in throughput) in No EE and EE cases.
The decoupling mechanism assumed by the Calculator is a generic balancing account that adjusts rates
annually to account for reduced sales volumes, thereby maintaining revenue at target projections.
Differences in utility incentives that alternative decoupling mechanisms provide are discussed in the
Utility Ratemaking and Revenue Requirements Working Group paper, but are not modeled.
The decoupling mechanism does not protect the utility from variations in costs.
Enter whether to activate shareholder incentive (relevant only in EE case).
Enter target incentive (% of EE budget).
Enter additional EE implemented due to shareholder incentive as % of total EE budget. Increases both cos
This input quantifies additional EE resulting from a utility having additional monetary incentive to implement EE.
Sensitivity
For Electric Utility:
Enter % cost increase / (savings) variation from forecast. Applied to Average Cost Inputs (capacity
Enter % decrease in average and marginal energy prices due to EE demand reduction. Applied to average
purchased energy cost, marginal energy cost and actual consumption.
Enter % cost increase / (savings) variation from forecast. Applied to Marginal Cost Inputs (EE) per above.
Enter % sales increase / (decrease) variation from forecast. Applied to energy sold.
Enter % of EE MWh to include in Ratesetting Forecast.
For Natural Gas Utility:
Enter % cost increase / (savings) variation from forecast. Applied to Average Cost Inputs (capacity
Enter % decrease in average and marginal energy prices due to EE demand reduction. Applied to
average purchased energy cost, marginal energy cost and actual consumption.
Enter % cost increase / (savings) variation from forecast. Applied to Marginal Cost Inputs (EE) per above.
Enter % sales increase / (decrease) variation from forecast. Applied to fuel sales.
Enter % of EE mcf to include in Ratesetting Forecast.

STEP2 - RESULTS CHARTS

Instructions

The second part of the Step2 tab is the results section.


The table located on rows 23-55 above the charts area provides a summary of key quantitative data.
The results are also presented in 11 charts organized in 3 columns: Customer, Utility, Society. Note that if either
of the electric/gas utility types has been switched to FALSE in Step1, data for that utility type will be hidden.
Two EE scenarios have been presented: "EE no Decoupling" and "EE and Decoupling." The "EE no
Decoupling" case always has no decoupling but enables shareholder incentive when that option is activated. The
"EE and Decoupling" case enables both decoupling and the shareholder incentive when those options are
activated.
Customer Perspective Charts
Percent Change in Customer Bills Chart
Shows percent change in customer bills over time versus the no EE case.
At first, customer bills increase because investments have been made in EE. Energy savings are assumed to result
in the years following initial investment, and as money saved on energy becomes greater than the cost of the
efficiency program, the chart area grows below the x-axis.
Comparison of Average Rate Chart
Shows average customer rates over time.
Customer rates increase over time due to inflation and increasing rate bases.
Rates equal total revenue (which is equal to the total customer revenue figure in the chart above) divided by total
energy sales.
Rates are higher in the with EE case because although total customer revenue decreases over time, total energy
sales also decrease due to EE measures. Because energy sales decrease at a higher rate than customer revenue,
rates are higher in the EE case.
Percent Difference in Average Rate Chart
Shows percent difference in average customer rates over time.
Calculated by subtracting the without EE rate from the with EE rate, then taking that result as a percent of the
without EE rate.
The percent difference increases over time, indicating rates are increasing more quickly in the with EE case.
Again, this is driven by the decrease in energy sales.

Utility Perspective Charts


Investor-Owned Utility Comparison of Return on Equity
Shows utility target ROE and achieved ROE.
Depending upon inclusion of decoupling and/or shareholder incentives, the achieved ROE may be higher or
lower than target.
OR
Public Power/Cooperative Debt Service Coverage Ratio
The DSCR remains constant when decoupling is activated.
OR
Cash Position at End of Year or Utility returns
Shows aggregate cash on hand at utility at year end in $MM.
Cash increases in each year when utility is profitable.
Utility Earnings
Shows utility earnings in $MM over time.
Trend will be upward if rate base is growing and downward if rate base is shrinking (i.e., capex is less than
depreciation).
Comparison of Peak Load Growth
Both lines trend upward, indicating annual load growth versus 2007 load.
Peak load increases more quickly in the no EE case because peak capacity savings are not captured.
Because decoupling does not impact load growth, only one EE case has been shown.
Growth Offset by EE
Shows base case (no EE) demand growth, energy savings due to EE, and the percentage of demand growth saved
due to EE.
Energy growth is upward sloping because of demand growth. Energy savings is upward sloping due to the
cumulative effect of EE savings. When demand growth is larger than energy savings growth, the percent growth
offset line trends downward.
Community or Society Perspective Charts
Total Societal Net Savings
Shows total benefits to society in $MM over time.
The net savings are the difference of total costs, including EE participant costs, and the savings from EE.
In the first year, the cost of the EE program is a cost to society. Over time, cumulative energy efficiency savings
lead to cost savings that are greater than the EE program cost. The graph shape is therefore upward sloping.
Because decoupling does not impact net savings, only one EE case has been shown.
Delivered Costs and Benefits of EE
Shows total utility costs in $MM per unit of EE energy savings and total utility savings in $MM per unit of EE
energy savings.
Total cost per unit declines over time because of the impact of cumulative EE energy savings. The savings per
unit stays relatively constant because of cumulative EE savings impacts both utility savings cost and unit energy
savings.
Because decoupling does not impact the cost or savings, only one EE case has been shown.
Emissions Savings
This graph shows annual tons of emissions saved due to EE.
The graph is upward sloping indicating increasing savings.
Emissions Cost Savings
This graph shows annual emissions cost savings in $MM due to EE.
If emissions costs are monetized, the graph is upward sloping indicating increasing savings; otherwise, no
change.

Customer Perspective Charts


Percent Change in Customer Bills Chart
Shows percent change in customer bills over time versus the no EE case.
At first, customer bills increase because investments have been made in EE. Energy savings are assumed to result
Instructions
in the years following initial investment, and as money saved on energy becomes greater than the cost of the
efficiency program, the chart area grows below the x-axis.
Comparison of Average Rate Chart
Shows average customer rates over time.
Customer rates increase over time due to inflation and increasing rate bases.
Rates equal total revenue (which is equal to the total customer revenue figure in the chart above) divided by total
energy sales.
Rates are higher in the with EE case because although total customer revenue decreases over time, total energy
sales also decrease due to EE measures. Because energy sales decrease at a higher rate than customer revenue,
rates are higher in the EE case.
Percent Difference in Average Rate Chart
Shows percent difference in average customer rates over time.
Calculated by subtracting the without EE rate from the with EE rate, then taking that result as a percent of the
without EE rate.
The percent difference increases over time, indicating rates are increasing more quickly in the with EE case.
Again, this is driven by the decrease in energy sales.

Utility Perspective Charts


Investor-Owned Utility Comparison of Return on Equity
Shows utility target ROE and achieved ROE.
Depending upon inclusion of decoupling and/or shareholder incentives, the achieved ROE may be higher or
lower than target.
OR
Public Power/Cooperative Debt Service Coverage Ratio
The DSCR remains constant when decoupling is activated.
OR
Cash Position at End of Year or Utility returns
Shows aggregate cash on hand at utility at year end in $MM.
Cash increases in each year when utility is profitable.
Utility Earnings
Shows utility earnings in $MM over time.
Trend will be upward if rate base is growing and downward if rate base is shrinking (i.e., capex is less than
depreciation).
Comparison of Peak Load Growth
Both lines trend upward, indicating annual load growth versus 2007 load.
Peak load increases more quickly in the no EE case because peak capacity savings are not captured.
Because decoupling does not impact load growth, only one EE case has been shown.
Growth Offset by EE
Shows base case (no EE) demand growth, energy savings due to EE, and the percentage of demand growth saved
due to EE.
Energy growth is upward sloping because of demand growth. Energy savings is upward sloping due to the
cumulative effect of EE savings. When demand growth is larger than energy savings growth, the percent growth
offset line trends downward.
Community or Society Perspective Charts
Total Societal Net Savings
Shows total benefits to society in $MM over time.
The net savings are the difference of total costs, including EE participant costs, and the savings from EE.
In the first year, the cost of the EE program is a cost to society. Over time, cumulative energy efficiency savings
lead to cost savings that are greater than the EE program cost. The graph shape is therefore upward sloping.
Because decoupling does not impact net savings, only one EE case has been shown.
Delivered Costs and Benefits of EE
Shows total utility costs in $MM per unit of EE energy savings and total utility savings in $MM per unit of EE
energy savings.
Total cost per unit declines over time because of the impact of cumulative EE energy savings. The savings per
unit stays relatively constant because of cumulative EE savings impacts both utility savings cost and unit energy
savings.
Because decoupling does not impact the cost or savings, only one EE case has been shown.
Emissions Savings
This graph shows annual tons of emissions saved due to EE.
The graph is upward sloping indicating increasing savings.
Emissions Cost Savings
This graph shows annual emissions cost savings in $MM due to EE.
If emissions costs are monetized, the graph is upward sloping indicating increasing savings; otherwise, no
change.

Utility Perspective Charts


Investor-Owned Utility Comparison of Return on Equity
Shows utility target ROE and achieved ROE.
Depending upon inclusion of decoupling and/or shareholder incentives, the achieved ROE may be higher or
lower than target.
Instructions
OR
Public Power/Cooperative Debt Service Coverage Ratio
The DSCR remains constant when decoupling is activated.
OR
Cash Position at End of Year or Utility returns
Shows aggregate cash on hand at utility at year end in $MM.
Cash increases in each year when utility is profitable.
Utility Earnings
Shows utility earnings in $MM over time.
Trend will be upward if rate base is growing and downward if rate base is shrinking (i.e., capex is less than
depreciation).
Comparison of Peak Load Growth
Both lines trend upward, indicating annual load growth versus 2007 load.
Peak load increases more quickly in the no EE case because peak capacity savings are not captured.
Because decoupling does not impact load growth, only one EE case has been shown.
Growth Offset by EE
Shows base case (no EE) demand growth, energy savings due to EE, and the percentage of demand growth saved
due to EE.
Energy growth is upward sloping because of demand growth. Energy savings is upward sloping due to the
cumulative effect of EE savings. When demand growth is larger than energy savings growth, the percent growth
offset line trends downward.
Community or Society Perspective Charts
Total Societal Net Savings
Shows total benefits to society in $MM over time.
The net savings are the difference of total costs, including EE participant costs, and the savings from EE.
In the first year, the cost of the EE program is a cost to society. Over time, cumulative energy efficiency savings
lead to cost savings that are greater than the EE program cost. The graph shape is therefore upward sloping.
Because decoupling does not impact net savings, only one EE case has been shown.
Delivered Costs and Benefits of EE
Shows total utility costs in $MM per unit of EE energy savings and total utility savings in $MM per unit of EE
energy savings.
Total cost per unit declines over time because of the impact of cumulative EE energy savings. The savings per
unit stays relatively constant because of cumulative EE savings impacts both utility savings cost and unit energy
savings.
Because decoupling does not impact the cost or savings, only one EE case has been shown.
Emissions Savings
This graph shows annual tons of emissions saved due to EE.
The graph is upward sloping indicating increasing savings.
Emissions Cost Savings
This graph shows annual emissions cost savings in $MM due to EE.
If emissions costs are monetized, the graph is upward sloping indicating increasing savings; otherwise, no
change.

Key Equations

ENERGY EFFICIENCY BENEFITS CALCULATOR KEY EQUATIONS


Summary of the Calculators key equations and relationships.
Revenue Requirement and Decoupling Inputs

The decoupling mechanism assumed by the Calculator is a generic balancing account that adjusts
rates annually to account for reduced sales volumes, thereby maintaining revenue at target projections.
Differences in utility incentives that alternative decoupling mechanisms provide are discussed in the
Utility Ratemaking and Revenue Requirements Working Group paper, but are not modeled. The
decoupling mechanism does not protect the utility from variations in costs.
The shareholder incentive (relevant only in EE case) provides additional monetary incentive to the
utility to implement EE. The target incentive (% of EE budget) must be entered in conjunction with
activating the shareholder incentive. The model also allows the user to enter how much additional
energy efficiency might be expected because of the shareholder incentive - if set at zero the incentive
will not change the amount of energy efficiency.
EE Costs and Budget
The annual EE utility program expense is entered as a percent of 2006 utility revenue devoted to energy
efficiency program budget. It is treated as an annual expense recovered in rates, with no associated
profit component. For example, if annual utility revenue is $1MM and the program expense is 1
percent, then the utility EE budget is $10,000.
The costs of energy efficiency are entered using two assumptionsthe costs in $/MWh and/or
$/MMBtu for the utility and participant, and an assumption about the average life of the energy
efficiency investments. These inputs are then used to convert annual utility EE program budget ($) into
lifecycle MWh, or mcf savings, and savings per year over the life of the measure. For example, if the
utility EE budget is $10,000 and the administrator cost is $20/MWh then the total EE resulting from the
$10,000 invested is 500 MWh.

Total MWh/mcf savings is then converted to annual savings using the average life of efficiency
measures and the utility WACC. For example, if the average life of efficiency measures is 15 years and
the utility WACC is 8.5 percent, then the annual savings resulting from the $10,000 EE utility budget is
-PMT(.085, 15, 1)*10,000 = 1,204 MWh.

Key Equations

Load Forecast

Forecast sales growth rate (%) has a large impact on efficiency program results. For example, a highgrowth utility can see ROE decreased when decoupling is implemented, whereas a low-growth utility
will see ROE increase when decoupling is implemented. Note: the Calculator does not adjust the
amount of energy efficiency investment for changes in growth rate, because the efficiency investment is
based on the cost and budget assumptions explained previously.
Energy and Capacity Savings
The percent of energy savings on-peak (on peak MWh / total MWh or winter mcf/total mcf) applies to
EE savings of purchased/produced energy.
The ratio of peak MW savings to average MW savings is the inverse of the coincident peak load factor
of the energy efficiency program and must be >=100%. This input converts the average annual capacity
saved to capacity savings during the coincident peak load hour so that peak capacity savings can be
captured. This input is only applicable in the context of an electric utility.
For example, 200 percent means that 2 MW are saved during the coincident peak load hour, for energy
savings of 1 average MW or 8,760 MWh of energy efficiency. Average MW = Annual MWh savings /
8,760 hrs per year.
Emissions Inputs
Emissions savings estimates are provided for natural gas and coal generation technologies per MWh of
saved electricity or per MMBtu of saved natural gas. They are applied to quantities of energy saved,
resulting in emissions savings in physical units. In addition, the model allows the user to input costs per
unit emissions saved for monetizing emissions savings (which is optional).

Utility Type
1
1
1
2007

1=Investor-owned, 2=Public Power and Cooperative Utilities


Electric Utility (Enter TRUE, if electric, otherwise FALSE)
Natural Gas Utility (Enter TRUE, if electric, otherwise FALSE)
Base Year (Fixed as 2007 in this model)

Load Forecast
Electric

Natural Gas
956,000 Peak Load (MW) - Year0
46% Annual Load Factor - Year 0

121,479 Peak Day Sales (Mcf/day)


50% Annual Load Factor - Year 0

1.6% Forecast Sales Growth Rate

0.70% Forecast Sales Growth Rate

Rates Inputs
Electric
$

Natural Gas
$

0.086 Average Rate ($/kWh) - Year 0


3,867,000,000 Annual Sales (MWh) - Year 0
331,848.1 Base Year Revenue ($M) - Year 0

Investor-owned
Electric and Natural Gas Utility

0.93 Average Rate ($/therm)


22,170.0 Annual Sales (Bcf)
212,294.16 Year0 Revenue ($M)

Energy Cost Forecasts (Distribution utility = market purchases, Vertical utility = production cost and market purchases)
Electric Average Costs
Natural Gas Average Costs
$
61.06 Average Cost of Purchased Power or Average Production Cost ($/MWh)
$
4.05 Average Cost of Purchased Fuel or Average Production Cost ($/MMBtu)
6% Average Marginal Losses (for Energy Savings)
5% Losses and Unaccounted For
$

- Generation Capacity Cost if purchased ($/kW-yr)


2.3% Cost Escalation of Average Energy and Capacity Cost

Electric Marginal Costs


1 Use Market Price for Marginal Cost

NP15

Select market if Market Price is active

65.00 Input Peak Price ($/MWh)


1.65 Peak to Off-Peak Price Ratio
2.3% Marginal Cost Escalation

Year 1 Marginal Cost


$
$

Forecast Streams on Energy Forecast Tab


75.72 Peak ($/MWh)
60.10 Off-Peak ($/MWh)

- Capacity Cost/Storage if purchased ($/mcf/day)


2.3% Cost Escalation

Natural Gas Marginal Costs


1 Use Market Price for Marginal Cost
$
$

8.00
1.26
2.3%

Basis Adjustment to Henry Hub if Market Price is active


Input Winter Price (Year 1) ($/MMBtu)
Winter to Summer Price Ratio
Marginal Cost Escalation (also for Henry Hub post-2011)

Year 1 Marginal Cost


Forecast Streams on Energy Forecast Tab
$
10.67 Winter ($/MMBtu)
$
8.47 Summer ($/MMBtu)

Emissions Inputs
Marginal Electric Generation Technology for Emissions

Natural Gas CCGT (117 lb/MMBTU)


Coal, subbituminous coals (212 lb/MMBtu)

Marginal Emission Rate for Natural Gas


<---- Select for Peak Period

0.06 Tons CO2 per MMBtu

<---- Select for Off-Peak Period

Year 1 Cost for Monetized Emissions - (Sensitivity)


9.3 $/Ton CO2
4.6 $/lb Nox
6.5 $/lb PM-10
0 $/lb Sox
0 $/lb CO
0 $/lb VOC

0.10 lbs Nox per MMBtu


Year 1 Cost for Monetized Emissions - (Sensitivity)
9.3 $/Ton CO2
4.6 $/lb Nox
6.5 $/lb PM-10
0 $/lb Sox
0 $/lb CO
0 $/lb VOC

2.3% Escalation Rate

2.3% Escalation Rate

Capital Expenditure and Depreciation


Electric
30 Average Asset Book Depreciation (years)
20 Tax depreciation (years)
$

19,733 Total Year0 CapEx ($M) - Except Line Item Schedule

Natural Gas
50 Average Asset Book Depreciation (years)
30 Tax depreciation (years)
$

22,330 Total Year0 CapEx ($M) - Except Line Item Schedule

Source:
California Public Utility Commissi
Note: Inputs have been escalated

2.3% Capex Cost Escalation


32% Percent Capex Growth Related

2.3% Capex Cost Escalation


55% Percent Capex Growth Related

Also See Line Item Capital Expenditures Below


Other Expenses, Maintenance
5% O&M, other expense as % of yr0 revenue
$
16,592.40 Annual expense - Year0 $M
2.3% O&M Escalation Rate
Financing and Taxes
Electric - Investor-owned
7.00%
50%
11.00%
50%
9.00%

Debt Cost
Debt %
Target Return on Equity
Equity %
WACC

Also See Line Item Capital Expenditures Below

Natural Gas - Investor-Owned


7.00% Debt Cost
50% Debt %
11.00% Target Return on Equity
50% Equity %
9.00% WACC

35.00% Federal Tax Rate


0.00% State Tax Rate
35.00% Combined Federal & State Tax Rate
$

400,000 Rate Base Assets $MM (book and tax)

5% O&M, other expense as % of revenue


10,614.7 Annual expense
2.3% O&M escalation rate

35.00% Federal Tax Rate


0.00% State Tax Rate
35.00% Combined Federal & State Tax Rate
$

525,000 Rate Base Assets $MM (book and tax)

Electric - Public Power or Cooperative Utility


5% Debt Cost
$
400,000.0 Asset Base Year0
$
250 Debt Amount Year 0

Natural Gas - Public Power or Cooperative Utility


6% Debt Cost
$
525,000.0 Asset Base Year0
$
275 Debt Amount Year 0

Rate Setting
Electric
Investor-Owned

Natural Gas
Investor-Owned
1
1
2007
2.00%

1=Regular Cycle, 2=Earnings Band


Years between rate cases
Next rate case year for cyclical rate cycle
Band on earnings (+/- ROE) for earnings band rate cycle

Public Power / Cooperative


2 1=Debt Service Coverage Ratio, 2=Cash Position
1.00% Percent of Revenue for Payment in Lieu of Tax
Trigger Rate Adjustments
2.00 Debt Service Coverage Ratio (assumed pre-tax)
2.00 Target Debt Service Coverage Ratio
Cash Position Trigger
50.00 Cash Position (Year 0) $M
45.00 Minimum Cash position before targetting an increase

1
1
2007
2.00%

1=Regular Cycle, 2=Earnings Band


Years between rate cases
Next rate case year for cyclical rate cycle
Band on earnings (+/- ROE) for earnings band rate cycle

Public Power / Cooperative


2 1=Debt Service Coverage Ratio, 2=Cash Position
1.50% Percent of Revenue for Payment in Lieu of Tax
Trigger Rate Adjustments
2.00 Minimum Debt Service Coverage Ratio (or Rates are Reset)
2.20 Target debt service when rates are reset
Cash Position Trigger
50.00 Cash Position (Year 0) $M
45.00 Minimum Cash position before targetting an increase

Line Item Capital Expenditures


Electric Capital Expenses - Line Item Base Case
Year

Description
2010 Investment 1 Description
2010 Investment 2 Description
2010 Investment 3 Description

Natural Gas Capital Expenses - Line Item Base Case


Capital Cost
(Nominal $M) Year
Description
0
2010 Investment 1 Description
0
2010 Investment 2 Description
0
2010 Investment 3 Description

Capital Cost
(Nominal $M)
0
0
0

Comparison of Investment Timing - Natural Gas Utility

Comparison of Investment Timing - Electric Utility

1
Capital Expenditure (Nominal $Millions)

Capital Expenditure (Nominal $Millions)

1
0.9
0.8
0.7
0.6
0.5
0.4

Without Energy Ef ficiency

0.3

With Energy Eff iciency

0.2
0.1
0
2007

2008

2009

2010

2011
Year

2012

2013

2014

2015

2016

0.9
0.8
0.7
0.6
0.5
0.4
0.3

Without Energy Efficiency

0.2

With Energy Ef ficiency

0.1
0
2007

2008

2009

2010

2011
Year

2012

2013

2014

2015

2016

Investor-owned Electric and Natural Gas Utility


Efficiency Program
Planning Inputs
Electric EE Costs and Budget
Electric Resource Savings
2.0% EE Program Budget = % of Base Case revenue
75% Percent of Energy Savings on Peak (%)
$
20.00 EE Administrator Cost $/MWh
200% EE Capacity Savings (peak MW / average
$
15.00 Participant Cost $/MWh
$
35.00 Total Cost of EE $/MWh - electric
0% Growth Related Gen Capacity Saved
2% EE Cost Escalation
25% Growth Related Capex Saved
15 EE Life (Years) (maximum 15 per model term)
0% Decrease in market price
0 Monetize Emissions Savings
Natural Gas EE Costs and Budget
Natural Gas Resource Savings
0.5% EE Program Budget = % of Base Case revenue
75% Percent of Energy Savings in Winter (%)
$
1.50 EE Administrator Cost $/MMBtu
$
1.50 Participant Cost $/MMBtu
10.0% Growth Related Capex Saved
$
3.00 Total Cost of EE $/MMBtu - gas
0 Monetize Emissions Savings
2% EE Cost Escalation
0% Decrease in market price
15 EE Life (Years) (maximum 15 per model term)

Revenue Requirement and Decoupling Inputs


Decoupling
1 No EE Case
1 With EE Case
Shareholder Incentives
0 Add Shareholder Incentives
0% Target Incentive (% of EE Budget)
0% Additional EE Implemented
Sensitivities
Electric
0% Variation in average purchased energy cost
0% Variation in marginal energy cost
0% Variation in forecast sales
100% % of EE in Ratesetting Forecast
Natural Gas
0% Variation in average purchased energy cost
0% Variation in marginal energy cost
0% Variation in forecast sales
100% % of EE in Ratesetting Forecast

Summary of Results
Program Cost
Electric
Gas
Utility Program Spending (% of utility revenue)
2.0%
Total Cost of Efficiency (Customer & Utility)
$35/MWh
Cost of Efficiency (Customer)
$15/MWh
Average Annual Cost of Efficiency $MM
$6,829
Total Cost of Efficiency (NPV, $MM)
$139,247
Efficiency Spending - Customer (NPV, $MM)
$59,677
Efficiency Program Spending - Utility (NPV,
$79,570
Resulting Savings
Electric
Gas
Net Customer Savings (NPV, $MM)
$276,893
Annual Customer Savings $MM
$18,012
Net Resource Savings (NPV, $MM)
$270,879
Annual Net Resource Savings ($MM)
$17,621
Decrease in Revenue Requirement (NPV, $MM)
$336,571
Annual Decrease in Revenue Requirement ($M
$21,894
Energy Savings
Electric
Gas
Percent of Growth Saved
61%
Percent of Consumption Saved
12%
Energy Saved (maximum annual)
587,889 GWh
Energy Saved (cumulative)
9,448,217 GWh
Peak Capacity Saved (MW) (Derated)
33555
Emissions Reductions
Electric
Gas
CO2 Emissions Reduction (1000 Tons)
337,889
NOx Emissions Reduction (Tons)
66,578
Other Assumptions
Load Growth (%)
NPV term of discounting period (years)
Utility NPV discount rate
Customer NPV discount rate
EE Project Life Term (years)

Electric

Total
0.5%
$3/MMBtu
$2/MMBtu
$1,248
$25,452
$12,726
$12,726

$276,893
$276,893

Total
$76,500
$4,976
$74,040
$4,816
$89,226
$5,804

$353,394

$139,247

$344,919

$7,878,997

$425,797

$7,878,997

Total
52%
5%
1,192 BCF
19,159 BCF
Total
71,900
61,453

Gas
2%
30
5%
5%
15

electr
$164,699
$72,403
$92,296

1%
30
5%
5%
15

409,789
128,031

Electric Utility

Customer Perspective

Community or Society Perspective

Investor-owned Utility
Comparison of Return on Equity

Annual Total Societal Net Savings


$20,000.0

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
1

10

Comparison of Average Rate

$5,000.0
$$(5,000.0)
$(10,000.0)
$(15,000.0)
1

10

Year

Total Societal Net Savings ($M)

Utility Earnings

Delivered Costs and Benefits of EE

$23,500.0

$0.12

$350.00

$0.06
$0.04
$0.02
$2

$300.00
$250.00

$22,500.0
$22,000.0
$21,500.0

9 10

Year

Utility Average Rate - No EE

Earnings $MM - No EE

Utility Average Rate - EE no


Decoupling

Earnings $MM - EE no
Decoupling

4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%

$1

GWh

400,000
300,000
200,000
100,000
-

10

Tons PM-10 Saved

80000

Tons SOx Saved

70000

Tons VOC Saved

9 10

250000

Tons CO Saved

200000

1000 Tons CO2 Saved

60000
50000

150000

40000
100000

30000
20000

50000

10000
0

Energy Savings GWh

Year

0
1

Demand Grow th GWh

Percent Change in Rate - EE and Decoupling

Tons NOx Saved

Year

Percent Change in Rate - EE no Decoupling

Cumulative Emissions Savings

500,000

Societal Savings ($/MWh saved)

80%
70%
60%
50%
40%
30%
20%
10%
0%
1

Societal Year
Cost ($/MWh saved)

600,000

$100.00
$50.00

9 10

700,000

$150.00

Percent Growth Offset by


Energy Efficiency

Percent Difference in Average Rate

$200.00

Year

Tons Saved

$23,000.0

9 10

Year

Cumulative Emissions Cost Savings

Comparison of Peak Load Growth

1.00

115%

0.80

110%

$MM Saved

Peak Load % of First Yr

120%

105%
100%
95%

0.60
0.40
0.20
-

90%
1

Year

Forecasted Grow th - No EE
Forecasted Grow th - EE and Decoupling

10

Year
CO2
PM10
CO

8
NOx
SOx
VOC

10

1000 Tons CO2 saved

$0.08

$/MWh

Earnings ($MM)

$0.10

10

$10,000.0

ROE% - No EE
ROE% - EE no Decoupling
ROE% - EE and Decoupling
Target ROE%

Change in Customer Bills (%) - EE and Decoupling

Average Rate ($/kWh)

$15,000.0

Year

Year

Change in Customer Bills (%) - EE no Decoupling

% Change in Rate

Net Societal Benefit ($M)

3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
-6.00%

After Tax ROE (%)

Change in Bills (%)

Percent Change in Customer Bills

Utility Perspective

Natural Gas Utility

Customer Perspective

Utility Perspective

Percent Change in Customer Bills

Investor-owned Utility
Comparison of Return on Equity

0.0%
-1.0%
-2.0%
-3.0%
2

15.0%
10.0%
5.0%
0.0%
1

10

$6,000.0

10

$4,000.0
$2,000.0
$$(2,000.0)
$(4,000.0)
1

Change in Customer Bills (%) - EE and Decoupling

$34,000.0

$2.50

$32,000.0

$2.00

$0.90
$0.70
$0.50
6

$28,000.0
2

Utility Average Rate - No EE


Utility Average Rate - EE no
Decoupling

9 10

9 10

$1

10

Year
Societal
Savings ($/therm saved)
Societal Cost ($/therm saved)

Comparison of Peak Load Growth


Peak Load % of First Yr

Cumulative Emissions Savings

108%

1000 Tons CO2 Saved

106%

50000

Tons NOx Saved

104%

40000

Tons SOx Saved

102%
100%
98%
96%
1

9 10

Tons PM-10 Saved


Tons CO Saved
Tons VOC Saved

30000
20000
10000

Year

Year

Percent Change in Rate - EE no Decoupling

Forecasted Grow th - No EE

Percent Change in Rate - EE and Decoupling

Forecasted Grow th - EE and Decoupling

10

Year

Cumulative Emissions Cost Savings

Percent Growth Offset by


Energy Efficiency
2,000,000

60%
50%
40%
30%
20%
10%
0%

1,500,000
1,000,000

mcf

Earnings $MM - no EE
Earnings $MM - EE no Decoupling
Earnings $MM - EE and
Decoupling

0.7%
0.6%
0.5%
0.4%
0.3%
0.2%
0.1%
0.0%

$1.00

Year

Year

Percent Difference in Average Rate

$0.50
1

10

$1.50

$26,000.0

Tons Saved

$30,000.0

500,000
1

Year

Gas Savings mcf


Demand Grow th mcf

9 10

5
4
$MM Saved

$/therm

$1.30

Earnings ($MM)

$3.00

$1.10

Delivered Costs and Benefits of EE

$36,000.0

Total Societal Net Savings ($M)

Utility Earnings

Comparison of Average Rate

Year

$1.50

ROE% - No EE
ROE% - EE no Decoupling
ROE% - EE and Decoupling
Target ROE%

Change in Customer Bills (%) - EE no Decoupling

Average Rate ($/therm)

Year

Year

% Change in Rate

Annual Total Societal Net Savings


Net Societal Benefit ($M)

After Tax ROE (%)

Change in Bills (%)

1.0%

Community or Society Perspective

3
2
1
0
1

5
Year
CO2
PM10
CO

7
NOx
SOx
VOC

10

Business Case for Energy Efficiency

A business case is an analysis that shows the benefits of energy efficiency to customers, the utility, and society within an approach that can lead to
actions by utilities, regulators, and other stakeholders. Making the business case for energy efficiency programs requires a different type of analysis
than that required for traditional supply-side resources. Because adoption of energy efficiency reduces utility sales and utility size, traditional
metrics such as impact on rates and total earnings do not measure the benefits of energy efficiency. By examining other metrics, however, such as
customer bills and utility earnings per share, the benefits to all stakeholders of adopting energy efficiency can be demonstrated. (These benefits
include reduced customer bills, decreased cost per megawatt-hour (MWh) of energy provided, increased net resource savings, decreased emissions,
and decreased reliance on energy supplies.)
The summary and interpretation of results below demonstrates the benefits of energy efficiency to customers, the utility, and society, based on the
assumptions active in the Energy Efficiency Benefits Calculator. Select a case from the Business Case Summary by using the pull-down list in the
upper right-hand corner of this sheet.

Summary of Results: Case 12: National Case


Program Cost
Utility Program Spending (% of utility revenue)
Total Cost of Efficiency (Customer & Utility)
Cost of Efficiency (Customer)
Average Annual Cost of Efficiency $MM
Total Cost of Efficiency (NPV, $MM)
Efficiency Spending - Customer (NPV, $MM)
Efficiency Program Spending - Utility (NPV, $MM)

Resulting Savings
Net Customer Savings (NPV, $MM)
Annual Customer Savings $MM
Net Societal Savings (NPV, $MM)
Annual Net Societal Savings ($MM)
Decrease in Revenue Requirement (NPV, $MM)
Annual Decrease in Revenue Requirement ($MM)
Energy Savings
Percent of Growth Saved, Year 15
Percent of Consumption Saved, Year 15
Peak Load Reduction, Year 15 (Derated)
Energy Saved, Year 15
Energy Saved (cumulative)
Emissions Reductions
CO2 Emissions Reduction (1000 Tons)
NOx Emissions Reduction (Tons)
Other Assumptions
Load Growth (%)
NPV term of discounting period (years)
Utility NPV discount rate
Customer NPV discount rate
EE Project Life Term (years)

Electric
2.0%
$35/MWh
$15/MWh
$6,829
$139,247
$59,677
$79,570

Natural Gas
0.5%
$3/MMBtu
$2/MMBtu
$1,248
$25,452
$12,726
$12,726

Electric
$276,893
$18,012
$270,879
$17,621
$336,571
$21,894
Electric
61%
12%
33,555 MW
587,889 GWh
9,448,217 GWh
Electric
337,889
66,578

Natural Gas
$76,500
$4,976
$74,040
$4,816
$89,226
$5,804
Natural Gas
52%
5%

Electric
2%
30
5%
5%
15

1,192 BCF
19,159 BCF
Natural Gas
71,900
61,453
Natural Gas
1%
30
5%
5%
15

Page 17 of 45

Total

$164,699
$72,403
$92,296

Total
$353,394
$22,989
$344,919
$22,437
$425,797
$27,699
Total

Total
409,789
128,031

Summary of Results: Case 12: National Case

Page 18 of 45

Electric

Customer Perspective

Natural Gas

Customer Bills Decrease


In the first year, customer utility bills increase because the
cost of the EE program has not yet produced savings.
Total customer bills decline over time, usually within the
first three years, indicating customer savings resulting
from lower energy consumption.

Percent Change in Customer Bills

Percent Change in Customer Bills

3.00%
Change in Bills (%)

Change in Bills (%)

-1.00%
-5.00%
-9.00%
-13.00%
-17.00%
-21.00%
-25.00%
1

3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
-6.0%
1

10

10

Years
Change in Customer Bills (%) - EE no Decoupling

Years
Change in Customer Bills (%) - EE no Decoupling

Change in Customer Bills (%) - EE and Decoupling

Utility Rates Mild Increase


The rates customers pay ($/kWh, $/therm) increase
when avoided costs are less than retail rates, which
is typically the case for most energy efficiency
programs. Rates increase because revenue
requirements increase more quickly than sales.

Comparison of Average Rate

$0.22

Average Rate ($/therm)

Average Rate ($/kWh)

Comparison of Average Rate

$0.17
$0.12
$0.07
1

Years
Utility
Average Rate - No EE
Utility Average Rate - EE no
Decoupling

10

$1.50
$1.30
$1.10
$0.90
$0.70
1

10

Years

Utility Average Rate - No EE


Utility Average Rate - EE no
Decoupling

Summary of Results: Case 12: National Case

Page 19 of 45

Utility Perspective

Natural Gas

Electric

Utility Financial Health Small Changes

Investor-Owned Utility
Comparison of Return on Equity

Investor-Owned Utility
Comparison of Return on Equity
13.0%

13.0%

11.0%

After Tax ROE (%)

After Tax ROE (%)

The change in utility financial health depends on whether


or not there are decoupling mechanisms in place, if there
are shareholder incentives in place (for investor-owned
utilities), the frequency of rate adjustments, and other
factors. Depending on the type of utility the measure of
financial health changes. Investor-Owned Utility - ROE,
Publicly- or Cooperatively-Owned Utility - Cash Position
or Debt Coverage Ratio.

9.0%
7.0%
5.0%
1

11.0%
9.0%
7.0%
5.0%

10

Years
ROE%
- No EE
ROE% - EE no Decoupling
ROE% - EE and Decoupling
Target ROE%

10

Years
ROE% - No EE
ROE% - EE no Decoupling
ROE% - EE and Decoupling

Utility Earnings

Earnings ($MM)

Utility earnings depend on growth rate, capital


investment, frequency of rate adjustments, and other
factors. If energy efficiency reduces capital investment,
the earnings will be lower in the energy efficiency case
unless shareholder incentives for EE are introduced.
However, utility return (ROE or earnings per share) may
not be affected.

Earnings ($MM)

Utility Earnings Results Vary

$23,400.0
$23,200.0
$23,000.0
$22,800.0
$22,600.0
$22,400.0
$22,200.0
$22,000.0
$21,800.0
$21,600.0

Utility Earnings
$35,000.0
$34,000.0
$33,000.0
$32,000.0
$31,000.0
$30,000.0
$29,000.0
$28,000.0

Year

Earnings $MM - No EE
Earnings $MM - EE no
Decoupling

10

$27,000.0
1

10

Year

Earnings $MM - no EE
Earnings $MM - EE no Decoupling
Earnings $MM - EE and
Decoupling

Summary of Results: Case 12: National Case

Page 20 of 45

Community or Society Perspective

Natural Gas

Electric

Societal Net Savings - Increase

Annual Total Societal Net Savings

Annual Total Societal Net Savings

$20,000.0
$15,000.0

Net Societal Benefit ($M)

Net Societal Benefit ($M)

The net savings are the difference of total utility costs,


including EE program costs, with EE and without EE. In
the first year, the cost of the EE program is a cost to
society. Over time, cumulative energy efficiency savings
lead to a utility production cost savings that is greater
than the EE program cost. The graph shape is therefore
upward sloping. Total Societal Net Savings is the same
with and without decoupling; therefore, only one line is
shown.

$10,000.0
$5,000.0
$$(5,000.0)
$(10,000.0)
$(15,000.0)
1

$5,000.0
$4,000.0
$3,000.0
$2,000.0
$1,000.0
$$(1,000.0)
$(2,000.0)
$(3,000.0)
1

9 10

Year

YearNet Savings ($M)


Total Societal

Total Societal Net Savings ($M)

Total Societal Cost Per Unit - Declines

Delivered Costs and Benefits of EE

Years

Delivered Costs and Benefits of EE

10

$/therm

$/MWh

Total cost of providing each unit of energy (MWh, cf)


declines over time because of the impacts of energy
savings, decreased peak load requirements, and decreased
costs during peak periods. Well-designed energy
efficiency programs can deliver energy at an average cost
less than that of new power sources. When the two lines
cross, the annual cost of energy efficiency equals the
annual savings resulting from energy efficiency. The
Societal Cost and Societal Savings are the same with and
without decoupling.

$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$1

Societal Cost ($/MWh saved)


Societal Savings ($/MWh saved)

10

Years

Societal Savings ($/therm saved)


Societal Cost ($/therm saved)

Summary of Results: Case 12: National Case

Page 21 of 45

Electric

Emissions and Cost Savings - Increase


Annual tons of emissions saved increases. Emissions cost
savings increases when emissions cost is monetized.
Emissions costs and savings are the same with and
without decoupling, therefore only one case is shown.

Natural Gas

Annual Emissions Savings

Annual Emissions Savings

1000 Tons CO2 Saved

Tons NOx Saved

70000

Tons CO Saved

Tons SOx Saved


Tons VOC Saved

Tons Saved

60000
50000

150000

40000
100000

30000
20000

50000

10000
0

0
2

Year

10

Tons NOx Saved


Tons PM-10 Saved

45000

Tons SOx Saved

40000

200000

1000 Tons CO2 Saved

50000

250000

Tons CO Saved
Tons VOC Saved

35000
Tons Saved

Tons PM-10 Saved

1000 Tons CO2 saved

80000

30000
25000
20000
15000
10000
5000
0
1

10

Year

Summary of Results: Case 12: National Case

Page 22 of 45

Electric

As energy efficiency programs ramp up, energy


consumption declines. This comparison shows the growth
with and without the energy efficiency and illustrates the
amount of energy efficiency relative to load growth.
Demand growth and energy savings are not impacted by
decoupling, therefore only one case is shown.

Natural Gas

Percent Growth Offset by


Energy Efficiency

700,000

80%
70%
60%
50%
40%
30%
20%
10%
0%

600,000

GWh

500,000
400,000
300,000
200,000
100,000
1

Percent Growth Offset by


Energy Efficiency

1,600,000

60%

1,400,000
MCF

Growth Offset by EE Increase

50%

1,200,000

40%

1,000,000
800,000

30%

600,000

20%

400,000

10%

200,000
-

10

0%
1

Year

9 10

Year

Energy Savings GWh

Gas Savings mcf

Demand Grow th GWh

Demand Grow th mcf

Peak Load Growth Decrease


Peak load requirements decrease because peak capacity
savings are captured due to EE measures. Peak load is
not impacted by decoupling, therefore only one case is
shown.

Comparison of Peak Load Growth

Comparison of Peak Load Growth


110%

150%

Peak Load % of First Yr

Peak Load % of First Yr

160%
140%
130%
120%
110%
100%
90%
1

10

Years
Forecasted Grow th - No EE
Forecasted Grow th - EE and Decoupling

105%
100%
95%
90%
1

10

Years

Forecasted Grow th - No EE
Forecasted Grow th - EE and Decoupling

Summary of Results: Case 12: National Case

Page 23 of 45

Case 1: LowGrowth
Electric and
Gas Utility

Case 2: HighGrowth
Electric and
Gas Utility

Case 3: Low
Growth with
2009
Powerplant

Case 4: High
Growth with
2009
Powerplant

Case 5:
Vertically
Integrated
Utility

Case 6:
Distribution
Utility

Case 7:
Electric
Public/Coop
- Debt
Coverage
Ratio

Case 8:
Electric
Public/Coop
- No Debt

Case 1:
Low-Growth
Electric and
Gas Utility

Case 2:
High-Growth
Electric and
Gas Utility

Utility Size
Annual Revenue ($mil) - Year 0
Peak Load (MW) or Sales (BCF) - Year 0
Parameter Tested

284
600 MW

Load Growth

284

###

600 MW

600 MW

Load Growth

Load Growth

284

###

284

###

600 MW

600 MW

600 MW

600 MW

Vertical Utility

Delivery Utility

Load Growth

Debt
Coverage
Ratio

284
600 MW
Cash
Position

344

344

33 BCF

33 BCF

Load Growth

Load Growth

Assumptions that Differ Between Cases


Load Growth Assumption
Average Rate - Year 1
EE Program
Cumulative Savings (EE vs No EE case)

1%

5%

1%

5%

2%

2%

2%

2%

0%

2%

$0.16/kWh

$0.15/kWh

$0.16/kWh

$0.15/kWh

$0.16/kWh

$0.16/kWh

$0.12/kWh

$0.10/kWh

$0.91/Therm

$0.90/Therm

EE Program results do not change when decoupling is activated.


8,105 GWh

8,105 GWh

8,105 GWh

8,105 GWh

8,105 GWh

8,105 GWh

8,105 GWh

8,105 GWh

31 BCF

31 BCF

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

0.5%

0.5%

Annual Utility Spending (NPV in $mil)

$70

$70

$70

$70

$70

$70

$70

$70

$21

$21

EE Project Life Term (years)

15

15

###

15

###

15

###

15

15

142%

21%

142%

21%

66%

66%

66%

66%

Total Cost of EE in Year 0 ($/MWh or $/MMBtu)

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$35.00

$3.00

$3.00

Utility Cost in Year 0 ($/MWh or $/MMBtu)

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$20.00

$1.50

$1.50

Customer Cost in Year 0 ($/MWh or $/MMBtu)

$15.00

$15.00

$15.00

$15.00

$15.00

$15.00

$15.00

$15.00

$1.50

$1.50

Utility Spending as Percent of Revenue (%)

Percent of Growth Saved

Business Case Results


(NPV in $mil)

#NA

15
18%

Revenue Requirement and Net Societal Savings do not change with decoupling.
Business Case Results are the difference between the No EE and EE cases.

Reduction in Revenue Requirement ($mil)


% of Total Revenue Requirement

$396
5.5%

$318
3.0%

$476
6.0%

$338
3.0%

$359
4.9%

$348
4.4%

$347
4.8%

$323
5.1%

$139
2.5%

$142
2.2%

Net Customer Savings - no decoupling ($mil)


% of Total Customer Bills

$407
7.1%

$342
5.8%

$503
8.7%

$364
6.2%

$373
6.4%

$363
6.3%

$292
6.6%

$280
7.3%

$123
2.6%

$129
2.7%

Net Customer Savings - decoupling ($mil)


% of Total Customer Bills

$247
4.3%

$236
4.0%

$319
5.5%

$275
4.7%

$307
5.3%

$222
3.8%

$98
2.2%

$240
6.2%

$19
0.4%

$64
1.3%

Net Societal Savings ($mil)


% of Total Societal Cost

$289
8.2%

$258
4.5%

$332
8.4%

$269
4.4%

$263
9.2%

$271
7.0%

$271
7.0%

$271
7.0%

$118
4.7%

$119
3.7%

Air Emission Savings


1000 Tons CO2
Tons NOx

Air Emission Savings are the difference between No EE and EE cases and do not change when decoupling is activated.
311

311

311

311

311

311

311

311

128

128

61

61

61

61

61

61

61

61

107

107

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

339,404.8
289,062.9
50,341.93

351,129.4
299,794.4
51,334.99

363,239.8
310,927.7
52,312.16

375,751.5
322,478.4
53,273.08

388,680.6
334,463.2
54,217.37

402,043.8
346,899.1
55,144.65

14,006.2
14,130.5
28,136.8
1.79

14,694.6
14,249.0
28,943.7
1.77

15,398.8
14,355.2
29,754.0
1.76

16,119.3
14,448.7
30,568.0
1.74

16,856.2
14,529.3
31,385.6
1.73

17,610.2
14,596.7
32,206.9
1.71

0
0

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

22,205.14
22,255.1
22,205.14
50.00

22,391.34
22,441.3
22,391.34
50.00

22,558.14
22,608.1
22,558.14
50.00

22,705.12
22,755.1
22,705.12
50.00

22,831.81
22,881.8
22,831.81
50.00

22,937.74
22,987.7
22,937.74
50.00

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Rate Case Flag for Debt Coverage Method

2.00

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Rate Case Flag for Cash Position Method

50.00

45.00
-

0
0

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

1.02
1.00
3,928,872,000
-

1.02
1.00
3,991,733,952
-

1.02
1.00
4,055,601,695
-

1.02
1.00
4,120,491,322
-

1.02
1.00
4,186,419,184
-

1.02
1.00
4,253,401,890
-

3,928,872,000

3,991,733,952

4,055,601,695

4,120,491,322

4,186,419,184

4,253,401,890

1.02
3,928,872,000
3,928,872,000

1.02
3,991,733,952
3,991,733,952

1.02
4,055,601,695
4,055,601,695

1.02
4,120,491,322
4,120,491,322

1.02
4,186,419,184
4,186,419,184

1.02
4,253,401,890
4,253,401,890

3,928,872,000
1.06
4,164,604,320

3,991,733,952
1.06
4,231,237,989

4,055,601,695
1.06
4,298,937,797

4,120,491,322
1.06
4,367,720,802

4,186,419,184
1.06
4,437,604,335

4,253,401,890
1.06
4,508,606,004

1.02
62.46

1.05
63.90

1.07
65.37

1.10
66.87

1.12
68.41

1.15
69.98

62.46

63.90

65.37

66.87

68.41

69.98

4,164,604,320
260,132.2
260,132.2

4,231,237,989
270,373.1
270,373.1

4,298,937,797
281,017.1
281,017.1

4,367,720,802
292,080.2
292,080.2

4,437,604,335
303,578.8
303,578.8

4,508,606,004
315,530.1
315,530.1

75.72
60.10

72.86
57.82

73.22
58.11

74.09
58.80

75.80
60.16

77.54
61.54

ELECTRIC UTILITY CALCULATIONS


Electric Sales Forecasts - MWh
Peak Load Capacity (MW)
Average Load Factor
Forecast Electric Sales (MWh) - yr 0
Forecast Electric Sales - Annual Increase
Rate Case Year
Forecast Electric Sales (NoEE) MWh - Adjusted per actuals
Actual Energy Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Energy Efficiency Reductions
Forecast Electric Sales MWh - Adjusted per actuals during rate case
Electric Sales Actual MWh
Electric Sales - MWh - year 0
Growth Rate - actual MWh
Actual Electric Sales (MWh) with EE
Actual Electric Sales (MWh) without EE

956,000
46%
3,867,000,000

100%
3,867,000,000
3,867,000,000
3,867,000,000
3,867,000,000

ELECTRIC UTILITY COST CALCULATIONS


Electric Purchases MWh
Actual Electric Sales (MWh) without EE
Average Marginal Losses - additional above sales MWh
MWh Purchased / Produced without EE
Cost of Energy (Purchased or Produced)
Average Cost of Energy $/MWh
Escalation
Forecast Average Cost of Energy $/MWh
Sensitivity to Fuel Cost
Actual Average Cost of Energy $/MWh

61.06

0%

MWh Purchased / Produced - Without EE


Forecast Average Cost of Energy $MM
Actual Average Cost of Energy $MM
Energy Efficiency Cost Savings - Forecasted
Peak Period ($/MWh)
Off-Peak Period ($/MWh)
Percent of EE Included in Forecast
Peak Period EE Savings (MWh)

100%
-

Off-Peak Period EE Savings (MWh)


Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecast Energy Savings ($MM)

0
0

Energy Efficiency Cost Savings - Actual


Sensitivity % variation in cost

0
0

0
0

0
0

0
0

0
0
-

0%

Peak Period ($/MWh)


Off-Peak Period ($/MWh)
Peak Period EE Savings (MWh)
Off-Peak Period EE Savings (MWh)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Energy Savings ($MM)

75.72
60.10
-

72.86
57.82
-

73.22
58.11
-

74.09
58.80
-

75.80
60.16
-

77.54
61.54
-

260,132
260,132

270,373
270,373

281,017
281,017

292,080
292,080

303,579
303,579

315,530
315,530

1.02
956,000
-

1.05
971,296
-

1.07
986,837
-

1.10
1,002,626
-

1.12
1,018,668
-

1.15
1,034,967
-

260,132.2
260,132.2

270,373.1
270,373.1

281,017.1
281,017.1

292,080.2
292,080.2

303,578.8
303,578.8

315,530.1
315,530.1

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

20,187

20,652

21,126

21,612

22,109

22,618

Total Electric Capital Expenditures ($MM)

20,187

20,652

21,126

21,612

22,109

22,618

1.02
16,974

1.05
17,364

1.07
17,764

1.10
18,172

1.12
18,590

1.15
19,018

420,187.2

440,838.7

461,965.2

483,577.6

505,687.1

528,305.1

Forecast Cost of Energy with EE ($MM)


Actual Cost of Energy with EE ($MM)
Cost of Capacity
Average Cost of Purchased Electricity Capacity or Production Cost $/kW-yr
Escalation
Forecasted Cost of Capacity ($/kW-yr )
Actual Cost for Sensitivity ($/kW-yr)
Peak Capacity Purchases with EE
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

Forecast Cost of Energy and Capacity with EE ($MM)


Actual Total Cost of Energy and Capacity with EE ($MM)

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Electric O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Electric Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - electric utility

16,592.40

400,000

20

400,000

Municipal - Cooperative Utility Debt Cost


Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level
Annual Debt Cost
Debt Interest Rate
Debt
Interest on Debt
Return on Rate Base - Investor-owned Utility
Utility Equity Return
Rate Base Equity
Return - electric utility

5%

5%

5%

5%

5%

399,177.8
22,041.9
20,651.5
397,787.4

397,787.4
23,098.3
21,126.5
395,815.6

395,815.6
24,178.9
21,612.4
393,249.2

393,249.2
25,284.4
22,109.5
390,074.3

390,074.3
26,415.3
22,618.0
386,277.0

30

400,000

3%

3%

3%

3%

3%

3%

400,000.0
14,006.2
20,187.2
406,181.0

406,181.0
14,694.6
20,651.5
412,137.8

412,137.8
15,398.8
21,126.5
417,865.5

417,865.5
16,119.3
21,612.4
423,358.6

423,358.6
16,856.2
22,109.5
428,611.9

428,611.9
17,610.2
22,618.0
433,619.7

2,451.1
2,451.1

2,571.6
5,022.7

2,694.8
7,717.4

2,820.9
10,538.3

2,949.8
13,488.2

3,081.8
16,569.9

420187.2
14,006.2
2,451.1
403,729.9

440838.7
28,700.9
5,022.7
407,115.2

461965.2
44,099.7
7,717.4
410,148.0

483577.6
60,219.0
10,538.3
412,820.3

505687.1
77,075.2
13,488.2
415,123.7

528305.1
94,685.4
16,569.9
417,049.8

201,864.9
201,864.9

203,557.6
203,557.6

205,074.0
205,074.0

206,410.2
206,410.2

207,561.9
207,561.9

208,524.9
208,524.9

20,187.2
14,006.2
6,431.0

20,651.5
14,694.6
12,387.8

21,126.5
15,398.8
18,115.5

21,612.4
16,119.3
23,608.6

22,109.5
16,856.2
28,861.9

22,618.0
17,610.2
33,869.7

201,864.9
14,130.5

203,557.6
14,249.0

205,074.0
14,355.2

206,410.2
14,448.7

207,561.9
14,529.3

208,524.9
14,596.7

201,864.9
22,205.1

203,557.6
22,391.3

205,074.0
22,558.1

206,410.2
22,705.1

207,561.9
22,831.8

208,524.9
22,937.7

35.00%

Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve
Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt
Rate Base % Equity
Rate Base Debt
Rate Base Equity

5%
400,000.0
21,009.4
20,187.2
399,177.8

50%
50%

250.00

7%

11.0%

Tax Rate
Tax - electric utility

35%

Earnings Target - Municipal and Cooperative Utilities


1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax

11,956.6

12,056.9

12,146.7

12,225.8

12,294.0

12,351.1

28,136.8
28,136.8

28,943.7
28,943.7

29,754.0
29,754.0

30,568.0
30,568.0

31,385.6
31,385.6

32,206.9
32,206.9

2
2.00

35%
15,150.6

15,585.0

16,021.4

16,459.7

16,899.9

17,342.2

339,404.8

351,129.4

363,239.8

375,751.5

388,680.6

402,043.8

3,318.5
22,205.1

3,394.0
22,391.3

3,511.3
22,558.1

3,632.4
22,705.1

3,757.5
22,831.8

3,886.8
22,937.7

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Electricity/Production Cost
Taxes
Annual Revenue Requirement

22,205.1
14,006.2
14,130.5
16,974.0
260,132.2
11,956.6
339,404.8

22,391.3
14,694.6
14,249.0
17,364.4
270,373.1
12,056.9
351,129.4

22,558.1
15,398.8
14,355.2
17,763.8
281,017.1
12,146.7
363,239.8

22,705.1
16,119.3
14,448.7
18,172.4
292,080.2
12,225.8
375,751.5

22,831.8
16,856.2
14,529.3
18,590.3
303,578.8
12,294.0
388,680.6

22,937.7
17,610.2
14,596.7
19,017.9
315,530.1
12,351.1
402,043.8

Check Revenue Requirement Achieves Annual ROE


Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

339,404.8
14,006.2
291,236.8
34,161.8
11,956.6
22,205.14
11.0%

351,129.4
14,694.6
301,986.6
34,448.2
12,056.9
22,391.34
11.0%

363,239.8
15,398.8
313,136.1
34,704.8
12,146.7
22,558.14
11.0%

375,751.5
16,119.3
324,701.3
34,931.0
12,225.8
22,705.12
11.0%

388,680.6
16,856.2
336,698.5
35,125.9
12,294.0
22,831.81
11.0%

402,043.8
17,610.2
349,144.8
35,288.8
12,351.1
22,937.74
11.0%

CALCULATION OF ELECTRIC RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement

$ 339,404.79
$ 79,272.57
$ 260,132.21

$ 351,129.39
$ 80,756.29
$ 270,373.10

$ 363,239.82
$ 82,222.67
$ 281,017.15

$ 375,751.52
$ 83,671.30
$ 292,080.23

$ 388,680.61
$ 85,101.77
$ 303,578.84

$ 402,043.80
$ 86,513.66
$ 315,530.14

Rate Case Year


Sales for Test Year
Actual Electric Sales MWh

1
1
1
1
1
1
3,928,872,000 3,991,733,952 4,055,601,695 4,120,491,322 4,186,419,184 4,253,401,890
3,928,872,000 3,991,733,952 4,055,601,695 4,120,491,322 4,186,419,184 4,253,401,890

Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

Input Year 0 rate


Non-fuel rate $/kWh
Fuel rate $/kWh
Total rate $/kWh

331,848.07
1%

35%

$
$

Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

0.085815378
0.0200 $
0.0658 $
$

0.0202
0.0662
0.0864

$
$
$

0.0202
0.0677
0.0880

$
$
$

0.0203
0.0693
0.0896

$
$
$

0.0203
0.0709
0.0912

$
$
$

0.0203
0.0725
0.0928

$
$
$

0.0203
0.0742
0.0945

100%
79,272.57
260,132.21

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset
Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Energy Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

80,756.29
270,373.10

82,222.67
281,017.15

83,671.30
292,080.23

85,101.77
303,578.84

86,513.66
315,530.14

0%

Average Rate $/kWh


Non-fuel Rate $/kWh
Fuel Rate $/kWh
Non-fuel Bal Acct $/kWh
Fuel Bal Acct $/kWh
Shareholder Incentive Acct $/kWh
AnualTot lResourcNtSavin gs
12
10

$
$
$
$
$
$

Average Rate $/kWh

0.020
0.066
0.086

$
$
$
$
$
$

0.020
0.068
0.088

$
$
$
$
$
$

0.020
0.069
0.090

$
$
$
$
$
$

0.020
0.071
0.091

$
$
$
$
$
$

0.020
0.073
0.093

$
$
$
$
$
$

0.02
0.07
0.095

8
6
4
2
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue

339,404.79

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

339,404.79
305,243.0
34,161.8
11,956.6
22,205.1
11.0%

351,129.4
316,681.2
34,448.2
12,056.9
22,391.3
11.0%

363,239.8
328,535.0
34,704.8
12,146.7
22,558.1
11.0%

375,751.5
340,820.6
34,931.0
12,225.8
22,705.1
11.0%

388,680.6
353,554.8
35,125.9
12,294.0
22,831.8
11.0%

402,043.8
366,755.0
35,288.8
12,351.1
22,937.7
11.0%

62,299
28,137
2.21

63,392
28,944
2.19

64,459
29,754
2.17

65,499
30,568
2.14

66,511
31,386
2.12

67,496
32,207
2.10

50.00

50.00

50.00

50.00

50.00

50.00

339,405

351,129

363,240

375,752

388,681

402,044

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)
ACHIEVED ROE CALCULATION (without Decoupling)
Revenue

50.00

351,129.39

363,239.82

375,751.52

388,680.61

402,043.80

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

2013
7

2014
8

2015
9

2016
10

2017
11

2018
12

2019
13

2020
14

2021
15

2022
16

2023
17

2024
18

2025
19

2026
20

2027
21

2028
22

2029
23

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Rate Case Flag for Debt Coverage Method

2
346,174.5
295,832.6
50,341.93

354,977.3
303,768.1
51,209.25

364,143.3
312,079.8
52,063.52

373,628.0
320,723.6
52,904.38

383,334.5
329,603.0
53,731.49

393,338.4
338,793.9
54,544.48

403,652.2
348,309.2
55,342.98

414,289.1
358,162.5
56,126.60

425,262.8
368,367.8
56,894.97

436,587.4
378,939.8
57,647.68

448,278.1
389,893.7
58,384.32

460,350.2
401,245.7
59,104.48

472,819.9
413,012.2
59,807.73

485,704.3
425,210.7
60,493.63

499,020.9
437,859.2
61,161.73

503,677.0
441,865.4
61,811.57

526,008.2
463,286.7
62,721.45

549,181.8
485,576.0
63,605.83

573,231.3
508,767.1
64,464.20

598,191.1
532,895.1
65,295.99

624,097.3
557,996.7
66,100.65

650,987.1
584,109.5
66,877.61

678,899.3
611,273.0
67,626.27

14,006.2
14,130.5
28,136.8
1.79

14,659.6
14,213.7
28,873.4
1.77

15,328.6
14,285.8
29,614.4
1.76

16,013.6
14,346.4
30,360.0
1.74

16,714.8
14,395.4
31,110.2
1.73

17,432.8
14,432.3
31,865.1
1.71

18,167.9
14,457.0
32,624.9
1.70

18,920.5
14,469.1
33,389.5
1.68

19,690.9
14,468.2
34,159.2
1.67

20,479.7
14,454.2
34,933.9
1.65

21,287.2
14,426.7
35,713.8
1.63

22,113.8
14,385.2
36,499.1
1.62

22,960.1
14,329.6
37,289.8
1.60

23,826.5
14,259.4
38,085.9
1.59

24,713.4
14,174.3
38,887.8
1.57

25,621.3
14,074.0
39,695.3
1.56

26,628.3
14,036.2
40,664.5
1.54

27,657.8
13,979.8
41,637.6
1.53

28,710.4
13,904.3
42,614.6
1.51

29,786.5
13,809.2
43,595.8
1.50

30,886.8
13,694.3
44,581.1
1.48

32,011.7
13,559.0
45,570.7
1.47

33,161.8
13,402.8
46,564.7
1.45

2.00
0
0

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Rate Case Flag for Cash Position Method

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

50.00
22,205.14
22,255.1
22,205.14
50.00

22,335.87
22,385.9
22,335.87
50.00

22,449.10
22,499.1
22,449.10
50.00

22,544.38
22,594.4
22,544.38
50.00

22,621.28
22,671.3
22,621.28
50.00

22,679.34
22,729.3
22,679.34
50.00

22,718.11
22,768.1
22,718.11
50.00

22,737.09
22,787.1
22,737.09
50.00

22,735.82
22,785.8
22,735.82
50.00

22,713.78
22,763.8
22,713.78
50.00

22,670.48
22,720.5
22,670.48
50.00

22,605.39
22,655.4
22,605.39
50.00

22,517.97
22,568.0
22,517.97
50.00

22,407.68
22,457.7
22,407.68
50.00

22,273.97
22,324.0
22,273.97
50.00

22,116.26
22,166.3
22,116.26
50.00

22,056.92
22,106.9
22,056.92
50.00

21,968.23
22,018.2
21,968.23
50.00

21,849.55
21,899.6
21,849.55
50.00

21,700.23
21,750.2
21,700.23
50.00

21,519.59
21,569.6
21,519.59
50.00

21,306.95
21,356.9
21,306.95
50.00

21,061.60
21,111.6
21,061.60
50.00

45.00
-

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

1.02
1.00
###
-

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
4,633,028,358
-

1.02
1.00
4,707,156,812
-

1.02
1.00
4,782,471,321
-

ELECTRIC UTILITY CALCULATIONS


Electric Sales Forecasts - MWh
Peak Load Capacity (MW)
Average Load Factor
Forecast Electric Sales (MWh) - yr 0
Forecast Electric Sales - Annual Increase
Rate Case Year
Forecast Electric Sales (NoEE) MWh - Adjusted per actuals
Actual Energy Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Energy Efficiency Reductions
Forecast Electric Sales MWh - Adjusted per actuals during rate case
Electric Sales Actual MWh
Electric Sales - MWh - year 0
Growth Rate - actual MWh
Actual Electric Sales (MWh) with EE
Actual Electric Sales (MWh) without EE

956,000
46%
3,867,000,000

100%
3,867,000,000

3,867,000,000
3,867,000,000

ELECTRIC UTILITY COST CALCULATIONS


Electric Purchases MWh
Actual Electric Sales (MWh) without EE
Average Marginal Losses - additional above sales MWh
Actual MWh Purchased / Produced without EE
Cost of Energy (Purchased or Produced)
Average Cost of Energy $/MWh
Escalation
Forecast Average Cost of Energy $/MWh
Sensitivity to Fuel Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency
Actual Average Cost of Energy $/MWh
MWh Purchased / Produced - Without EE
Forecast Average Cost of Energy $MM
Actual Average Cost of Energy $MM

###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

###

###

###

###

4,633,028,358

4,707,156,812

4,782,471,321

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
4,633,028,358
5,396,871,020

1.02
4,707,156,812
5,483,220,956

1.02
4,782,471,321
5,570,952,492

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

5,396,871,020
1.06
5,720,683,281

5,483,220,956
1.06
5,812,214,214

5,570,952,492
1.06
5,905,209,641

1.02
62.46

1.05
63.90

1.07
65.37

1.10
66.87

1.12
68.41

1.15
69.98

1.17
71.59

1.20
73.24

1.23
74.92

1.26
76.65

1.28
78.41

1.31
80.21

1.34
82.06

1.37
83.95

1.41
85.88

1.44
87.85

1.47
89.87

1.51
91.94

1.54
94.05

1.58
96.22

1.61
98.43

1.65
100.70

1.69
103.01

62.46
###
260,132.2
260,132.2

63.90
###
270,373.1
270,373.1

65.37
###
281,017.1
281,017.1

66.87
###
292,080.2
292,080.2

68.41
###
303,578.8
303,578.8

69.98
###
315,530.1
315,530.1

71.59
###
327,951.9
327,951.9

73.24
###
340,862.7
340,862.7

74.92
###
354,281.8
354,281.8

76.65
###
368,229.2
368,229.2

78.41
###
382,725.6
382,725.6

80.21
###
397,792.8
397,792.8

82.06
###
413,453.1
413,453.1

83.95
###
429,729.9
429,729.9

85.88
###
446,647.5
446,647.5

87.85
###
464,231.1
464,231.1

89.87
###
482,507.0
482,507.0

91.94
###
501,502.3
501,502.3

94.05
###
521,245.5
521,245.5

96.22
###
541,765.9
541,765.9

98.43
5,720,683,281
563,094.1
563,094.1

100.70
5,812,214,214
585,262.0
585,262.0

103.01
5,905,209,641
608,302.6
608,302.6

3,867,000,000

61.06

0%
0%

Energy Efficiency Cost Savings - Forecasted


Peak Period ($/MWh)
Off-Peak Period ($/MWh)
Percent of EE Included in Forecast
Peak Period EE Savings (MWh)
Off-Peak Period EE Savings (MWh)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecasted Energy Savings ($MM)

75.72
60.10

72.86
57.82

73.22
58.11

74.09
58.80

75.80
60.16

77.54
61.54

79.32
62.95

81.15
64.40

83.01
65.88

84.92
67.40

86.88
68.95

88.87
70.54

90.92
72.16

93.01
73.82

95.15
75.52

97.34
77.25

99.58
79.03

101.87
80.85

104.21
82.71

106.61
84.61

109.06
86.55

111.57
88.54

114.13
90.58

31,494,056
10,498,019
2295
607
2,902

62,988,112
20,996,037
4612
1220
5,832

94,482,167
31,494,056
7000
1852
8,852

125,976,223
41,992,074
9549
2526
12,075

157,470,279
52,490,093
12210
3230
15,440

188,964,335
62,988,112
14989
3965
18,955

220,458,390
73,486,130
17890
4733
22,622

251,952,446
83,984,149
20916
5533
26,449

283,446,502
94,482,167
24071
6368
30,439

314,940,558
104,980,186
27361
7238
34,599

346,434,614
115,478,205
30789
8145
38,935

377,928,669
125,976,223
34361
9090
43,451

409,422,725
136,474,242
38080
10074
48,154

440,916,781
146,972,260
41953
11099
53,051

472,410,837
157,470,279
45983
12165
58,148

440,916,781
146,972,260
43905
11615
55,520

409,422,725
136,474,242
41706
11033
52,740

377,928,669
125,976,223
39384
10419
49,803

346,434,614
115,478,205
36932
9770
46,702

314,940,558
104,980,186
34347
9086
43,433

283,446,502
94,482,167
31623
8366
39,989

251,952,446
83,984,149
28756
7607
36,363

75.72
60.10
-

72.86
57.82
31,494,056
10,498,019
2,295
607
2,902

73.22
58.11
62,988,112
20,996,037
4,612
1,220
5,832

74.09
58.80
94,482,167
31,494,056
7,000
1,852
8,852

75.80
60.16
125,976,223
41,992,074
9,549
2,526
12,075

77.54
61.54
157,470,279
52,490,093
12,210
3,230
15,440

79.32
62.95
188,964,335
62,988,112
14,989
3,965
18,955

81.15
64.40
220,458,390
73,486,130
17,890
4,733
22,622

83.01
65.88
251,952,446
83,984,149
20,916
5,533
26,449

84.92
67.40
283,446,502
94,482,167
24,071
6,368
30,439

86.88
68.95
314,940,558
104,980,186
27,361
7,238
34,599

88.87
70.54
346,434,614
115,478,205
30,789
8,145
38,935

90.92
72.16
377,928,669
125,976,223
34,361
9,090
43,451

93.01
73.82
409,422,725
136,474,242
38,080
10,074
48,154

95.15
75.52
440,916,781
146,972,260
41,953
11,099
53,051

97.34
77.25
472,410,837
157,470,279
45,983
12,165
58,148

99.58
79.03
440,916,781
146,972,260
43,905
11,615
55,520

101.87
80.85
409,422,725
136,474,242
41,706
11,033
52,740

104.21
82.71
377,928,669
125,976,223
39,384
10,419
49,803

106.61
84.61
346,434,614
115,478,205
36,932
9,770
46,702

109.06
86.55
314,940,558
104,980,186
34,347
9,086
43,433

111.57
88.54
283,446,502
94,482,167
31,623
8,366
39,989

114.13
90.58
251,952,446
83,984,149
28,756
7,607
36,363

260,132
260,132

267,472
267,472

275,185
275,185

283,228
283,228

291,504
291,504

300,090
300,090

308,997
308,997

318,240
318,240

327,833
327,833

337,790
337,790

348,126
348,126

358,858
358,858

370,002
370,002

381,575
381,575

393,596
393,596

406,083
406,083

426,987
426,987

448,762
448,762

471,443
471,443

495,063
495,063

519,661
519,661

545,273
545,273

571,939
571,939

1.02
956,000
-

1.05
971,296
-

1.07
986,837
-

1.10
1,002,626
-

1.12
1,018,668
-

1.15
1,034,967
-

1.17
1,051,526
-

1.20
1,068,351
-

1.23
1,085,444
-

1.26
1,102,811
-

1.28
1,120,456
-

1.31
1,138,384
-

1.34
1,156,598
-

1.37
1,175,103
-

1.41
1,193,905
-

1.44
1,213,008
-

1.47
1,232,416
-

1.51
1,252,134
-

1.54
1,272,168
-

1.58
1,292,523
-

1.61
1,313,204
-

1.65
1,334,215
-

1.69
1,355,562
-

100%
0
0
-

Energy Efficiency Cost Savings - Actual


Sensitivity % cost variation from forecast
% Cost Decrease due to Demand Reduction from Energy Efficiency
Peak Period ($/MWh)
Off-Peak Period ($/MWh)
Peak Period EE Savings (MWh)
Off-Peak Period EE Savings (MWh)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Energy Savings ($MM)

0%
0%

Forecast Cost of Energy with EE ($MM)


Actual Cost of Energy with EE ($MM)
Cost of Capacity
Average Cost of Purchased Electricity Capacity or Production Cost $/kW-yr
Escalation
Forecasted Cost of Capacity ($/kW-yr )
Actual Cost for Sensitivity ($/kW-yr)
Peak Capacity Purchases with EE
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

260,132
260,132.2

267,472
267,472

275,185
275,185

283,228
283,228

291,504
291,504

300,090
300,090

308,997
308,997

318,240
318,240

327,833
327,833

337,790
337,790

348,126
348,126

358,858
358,858

370,002
370,002

381,575
381,575

393,596
393,596

406,083
406,083

426,987
426,987

448,762
448,762

471,443
471,443

495,063
495,063

519,661
519,661

545,273
545,273

571,939
571,939

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

Forecast Cost of Energy and Capacity with EE ($MM)


Actual Total Cost of Energy and Capacity with EE ($MM)

20,187

19,602

20,070

20,548

21,038

21,539

22,052

22,577

23,114

23,663

24,225

24,800

25,389

25,991

26,607

27,238

30,209

30,885

31,577

32,284

33,008

33,748

34,504

Total Electric Capital Expenditures ($MM)

20,187

19,602

20,070

20,548

21,038

21,539

22,052

22,577

23,114

23,663

24,225

24,800

25,389

25,991

26,607

27,238

30,209

30,885

31,577

32,284

33,008

33,748

34,504

1.02
16,974

1.05
17,364

1.07
17,764

1.10
18,172

1.12
18,590

1.15
19,018

1.17
19,455

1.20
19,903

1.23
20,361

1.26
20,829

1.28
21,308

1.31
21,798

1.34
22,299

1.37
22,812

1.41
23,337

1.44
23,874

1.47
24,423

1.51
24,985

1.54
25,559

1.58
26,147

1.61
26,748

1.65
27,364

1.69
27,993

420,187

439,789

459,859

480,407

501,445

522,985

545,037

567,614

590,727

614,390

638,615

663,415

688,804

714,795

741,402

768,640

798,849

829,735

861,312

893,596

926,603

960,351

994,855

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Electric O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Electric Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - electric utility
Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve

16,592.40

400,000

20

400,000

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

400,000
21,009
20,187
399,178

399,178
21,989
19,602
396,790

396,790
22,993
20,070
393,867

393,867
24,020
20,548
390,395

390,395
25,072
21,038
386,361

386,361
26,149
21,539
381,751

381,751
27,252
22,052
376,551

376,551
28,381
22,577
370,747

370,747
29,536
23,114
364,325

364,325
30,720
23,663
357,268

357,268
31,931
24,225
349,562

349,562
33,171
24,800
341,192

341,192
34,440
25,389
332,140

332,140
35,740
25,991
322,392

322,392
37,070
26,607
311,929

311,929
38,432
27,238
300,734

300,734
39,942
30,209
291,001

291,001
41,487
30,885
280,400

280,400
43,066
31,577
268,911

268,911
44,680
32,284
256,516

5%
256,516
46,330
33,008
243,193

5%
243,193
48,018
33,748
228,923

5%
228,923
49,743
34,504
213,685

30

400,000

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

400,000
14,006
20,187
406,181

406,181
14,660
19,602
411,123

411,123
15,329
20,070
415,864

415,864
16,014
20,548
420,399

420,399
16,715
21,038
424,723

424,723
17,433
21,539
428,829

428,829
18,168
22,052
432,713

432,713
18,920
22,577
436,369

436,369
19,691
23,114
439,792

439,792
20,480
23,663
442,975

442,975
21,287
24,225
445,913

445,913
22,114
24,800
448,600

448,600
22,960
25,389
451,028

451,028
23,827
25,991
453,193

453,193
24,713
26,607
455,087

455,087
25,621
27,238
456,703

456,703
26,628
30,209
460,284

460,284
27,658
30,885
463,511

463,511
28,710
31,577
466,378

466,378
29,787
32,284
468,876

3%
468,876
30,887
33,008
470,996

3%
470,996
32,012
33,748
472,732

3%
472,732
33,162
34,504
474,075

35.00%
2,451.1
2,451.1

2,565.4
5,016.5

2,682.5
7,699.0

2,802.4
10,501.4

2,925.1
13,426.5

3,050.7
16,477.3

3,179.4
19,656.6

3,311.1
22,967.7

3,445.9
26,413.6

3,583.9
29,997.6

3,725.3
33,722.8

3,869.9
37,592.7

4,018.0
41,610.8

4,169.6
45,780.4

4,324.8
50,105.3

4,483.7
54,589.0

4,660.0
59,248.9

4,840.1
64,089.1

5,024.3
69,113.4

5,212.6
74,326.0

5,405.2
79,731.2

5,602.0
85,333.3

5,803.3
91,136.6

420187.2
14,006.2
2,451.1

439789.2
28,665.9
5,016.5

459858.9
43,994.5
7,699.0

480407.3
60,008.1
10,501.4

501445.5
76,722.9
13,426.5

522984.7
94,155.8
16,477.3

545036.8
112,323.7
19,656.6

567613.5
131,244.1
22,967.7

590727.2
150,935.0
26,413.6

614390.1
171,414.7
29,997.6

638615.2
192,701.9
33,722.8

663415.5
214,815.7
37,592.7

688804.3
237,775.8
41,610.8

714795.2
261,602.4
45,780.4

741402.3
286,315.8
50,105.3

768639.9
311,937.1
54,589.0

798849.2
338,565.4
59,248.9

829734.7
366,223.2
64,089.1

861311.6
394,933.6
69,113.4

893595.8
424,720.1
74,326.0

926603.4
455,606.9
79,731.2

960350.9
487,618.6
85,333.3

994855.2
520,780.4
91,136.6

Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt
Rate Base % Equity
Rate Base Debt
Rate Base Equity
Municipal - Cooperative Utility Debt Cost
Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level

403,729.9

406,106.8

408,165.4

409,897.8

411,296.0

412,351.7

413,056.5

413,401.7

413,378.5

412,977.9

412,190.6

411,007.0

409,417.6

407,412.4

404,981.3

402,113.8

401,034.9

399,422.4

397,264.6

394,549.6

391,265.2

387,399.0

382,938.1

201,864.9
201,864.9

203,053.4
203,053.4

204,082.7
204,082.7

204,948.9
204,948.9

205,648.0
205,648.0

206,175.9
206,175.9

206,528.2
206,528.2

206,700.8
206,700.8

206,689.3
206,689.3

206,488.9
206,488.9

206,095.3
206,095.3

205,503.5
205,503.5

204,708.8
204,708.8

203,706.2
203,706.2

202,490.6
202,490.6

201,056.9
201,056.9

200,517.4
200,517.4

199,711.2
199,711.2

198,632.3
198,632.3

197,274.8
197,274.8

195,632.6
195,632.6

193,699.5
193,699.5

191,469.1
191,469.1

20,187.2
14,006.2
6,431.0

19,602.0
14,659.6
11,373.3

20,069.7
15,328.6
16,114.4

20,548.4
16,013.6
20,649.2

21,038.1
16,714.8
24,972.5

21,539.3
17,432.8
29,079.0

22,052.1
18,167.9
32,963.1

22,576.7
18,920.5
36,619.4

23,113.6
19,690.9
40,042.1

23,663.0
20,479.7
43,225.5

24,225.1
21,287.2
46,163.4

24,800.3
22,113.8
48,849.8

25,388.8
22,960.1
51,278.4

25,991.0
23,826.5
53,442.9

26,607.1
24,713.4
55,336.6

27,237.6
25,621.3
56,952.8

30,209.4
26,628.3
60,533.8

30,885.4
27,657.8
63,761.4

31,576.9
28,710.4
66,628.0

32,284.2
29,786.5
69,125.6

33,007.6
30,886.8
71,246.5

33,747.5
32,011.7
72,982.3

34,504.3
33,161.8
74,324.7

201,864.9
14,130.5

203,053.4
14,213.7

204,082.7
14,285.8

204,948.9
14,346.4

205,648.0
14,395.4

206,175.9
14,432.3

206,528.2
14,457.0

206,700.8
14,469.1

206,689.3
14,468.2

206,488.9
14,454.2

206,095.3
14,426.7

205,503.5
14,385.2

204,708.8
14,329.6

203,706.2
14,259.4

202,490.6
14,174.3

201,056.9
14,074.0

200,517.4
14,036.2

199,711.2
13,979.8

198,632.3
13,904.3

197,274.8
13,809.2

195,632.6
13,694.3

193,699.5
13,559.0

191,469.1
13,402.8

201,864.9
22,205.1

203,053.4
22,335.9

204,082.7
22,449.1

204,948.9
22,544.4

205,648.0
22,621.3

206,175.9
22,679.3

206,528.2
22,718.1

206,700.8
22,737.1

206,689.3
22,735.8

206,488.9
22,713.8

206,095.3
22,670.5

205,503.5
22,605.4

204,708.8
22,518.0

203,706.2
22,407.7

202,490.6
22,274.0

201,056.9
22,116.3

200,517.4
22,056.9

199,711.2
21,968.2

198,632.3
21,849.6

197,274.8
21,700.2

195,632.6
21,519.6

193,699.5
21,306.9

191,469.1
21,061.6

11,956.6

12,027.0

12,088.0

12,139.3

12,180.7

12,212.0

12,232.8

12,243.1

12,242.4

12,230.5

12,207.2

12,172.1

12,125.1

12,065.7

11,993.7

11,908.8

11,876.8

11,829.0

11,765.1

11,684.7

11,587.5

11,473.0

11,340.9

28,136.8
28,136.8

28,873.4
28,873.4

29,614.4
29,614.4

30,360.0
30,360.0

31,110.2
31,110.2

31,865.1
31,865.1

32,624.9
32,624.9

33,389.5
33,389.5

34,159.2
34,159.2

34,933.9
34,933.9

35,713.8
35,713.8

36,499.1
36,499.1

37,289.8
37,289.8

38,085.9
38,085.9

38,887.8
38,887.8

39,695.3
39,695.3

40,664.5
40,664.5

41,637.6
41,637.6

42,614.6
42,614.6

43,595.8
43,595.8

44,581.1
44,581.1

45,570.7
45,570.7

46,564.7
46,564.7

50%
50%

250.00

Annual Debt Cost


Debt Interest Rate
Debt
Interest on Debt

7%

Return on Rate Base - Investor-owned Utility


Utility Equity Return
Rate Base Equity
Return - electric utility
Tax Rate
Tax - electric utility
Earnings Target - Municipal and Cooperative Utilities
1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax
Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

11.0%

35%

2
2.00

35%
15,150.6

15,547.2

15,946.2

16,347.7

16,751.7

17,158.1

17,567.2

17,979.0

18,393.4

18,810.6

19,230.5

19,653.4

20,079.1

20,507.8

20,939.6

21,374.4

21,896.3

22,420.2

22,946.3

23,474.6

24,005.2

24,538.0

25,073.3

346,174.5

354,977.3

364,143.3

373,628.0

383,334.5

393,338.4

403,652.2

414,289.1

425,262.8

436,587.4

448,278.1

460,350.2

472,819.9

485,704.3

499,020.9

503,677.0

526,008.2

549,181.8

573,231.3

598,191.1

624,097.3

650,987.1

678,899.3

3,318.5
22,205.1

3,461.7
22,335.9

3,549.8
22,449.1

3,641.4
22,544.4

3,736.3
22,621.3

3,833.3
22,679.3

3,933.4
22,718.1

4,036.5
22,737.1

4,142.9
22,735.8

4,252.6
22,713.8

4,365.9
22,670.5

4,482.8
22,605.4

4,603.5
22,518.0

4,728.2
22,407.7

4,857.0
22,274.0

4,990.2
22,116.3

5,036.8
22,056.9

5,260.1
21,968.2

5,491.8
21,849.6

5,732.3
21,700.2

5,981.9
21,519.6

6,241.0
21,306.9

6,509.9
21,061.6

22,205.1
14,006.2
14,130.5
16,974.0
6,769.7
260,132.2
11,956.6
346,174.5

22,335.9
14,659.6
14,213.7
17,364.4
6,905.1
267,471.5
12,027.0
354,977.3

22,449.1
15,328.6
14,285.8
17,763.8
7,043.2
275,184.8
12,088.0
364,143.3

22,544.4
16,013.6
14,346.4
18,172.4
7,184.1
283,227.9
12,139.3
373,628.0

22,621.3
16,714.8
14,395.4
18,590.3
7,327.7
291,504.2
12,180.7
383,334.5

22,679.3
17,432.8
14,432.3
19,017.9
7,474.3
300,089.7
12,212.0
393,338.4

22,718.1
18,167.9
14,457.0
19,455.3
7,623.8
308,997.3
12,232.8
403,652.2

22,737.1
18,920.5
14,469.1
19,902.8
7,776.3
318,240.4
12,243.1
414,289.1

22,735.8
19,690.9
14,468.2
20,360.6
7,931.8
327,833.1
12,242.4
425,262.8

22,713.8
20,479.7
14,454.2
20,828.9
8,090.4
337,790.0
12,230.5
436,587.4

22,670.5
21,287.2
14,426.7
21,307.9
8,252.2
348,126.4
12,207.2
448,278.1

22,605.4
22,113.8
14,385.2
21,798.0
8,417.3
358,858.3
12,172.1
460,350.2

22,518.0
22,960.1
14,329.6
22,299.4
8,585.6
370,002.2
12,125.1
472,819.9

22,407.7
23,826.5
14,259.4
22,812.3
8,757.3
381,575.4
12,065.7
485,704.3

22,274.0
24,713.4
14,174.3
23,336.9
8,932.5
393,596.1
11,993.7
499,020.9

22,116.3
25,621.3
14,074.0
23,873.7
406,083.0
11,908.8
503,677.0

22,056.9
26,628.3
14,036.2
24,422.8
426,987.1
11,876.8
526,008.2

21,968.2
27,657.8
13,979.8
24,984.5
448,762.4
11,829.0
549,181.8

21,849.6
28,710.4
13,904.3
25,559.1
471,442.8
11,765.1
573,231.3

21,700.2
29,786.5
13,809.2
26,147.0
495,063.4
11,684.7
598,191.1

21,519.6
30,886.8
13,694.3
26,748.4
519,660.8
11,587.5
624,097.3

21,306.9
32,011.7
13,559.0
27,363.6
545,272.9
11,473.0
650,987.1

21,061.6
33,161.8
13,402.8
27,993.0
571,939.2
11,340.9
678,899.3

346,174.5
14,006.2
298,006.5
34,161.8
11,956.6
22,205.14
11.0%

354,977.3
14,659.6
305,954.8
34,362.9
12,027.0
22,335.87
11.0%

364,143.3
15,328.6
314,277.6
34,537.1
12,088.0
22,449.10
11.0%

373,628.0
16,013.6
322,930.8
34,683.7
12,139.3
22,544.38
11.0%

383,334.5
16,714.8
331,817.7
34,802.0
12,180.7
22,621.28
11.0%

393,338.4
17,432.8
341,014.3
34,891.3
12,212.0
22,679.34
11.0%

403,652.2
18,167.9
350,533.4
34,950.9
12,232.8
22,718.11
11.0%

414,289.1
18,920.5
360,388.5
34,980.1
12,243.1
22,737.09
11.0%

425,262.8
19,690.9
370,593.7
34,978.2
12,242.4
22,735.82
11.0%

436,587.4
20,479.7
381,163.5
34,944.3
12,230.5
22,713.78
11.0%

448,278.1
21,287.2
392,113.2
34,877.7
12,207.2
22,670.48
11.0%

460,350.2
22,113.8
403,458.8
34,777.5
12,172.1
22,605.39
11.0%

472,819.9
22,960.1
415,216.8
34,643.0
12,125.1
22,517.97
11.0%

485,704.3
23,826.5
427,404.4
34,473.4
12,065.7
22,407.68
11.0%

499,020.9
24,713.4
440,039.8
34,267.6
11,993.7
22,273.97
11.0%

503,677.0
25,621.3
444,030.7
34,025.0
11,908.8
22,116.26
11.0%

526,008.2
26,628.3
465,446.1
33,933.7
11,876.8
22,056.92
11.0%

549,181.8
27,657.8
487,726.7
33,797.3
11,829.0
21,968.23
11.0%

573,231.3
28,710.4
510,906.2
33,614.7
11,765.1
21,849.55
11.0%

598,191.1
29,786.5
535,019.6
33,385.0
11,684.7
21,700.23
11.0%

624,097.3
30,886.8
560,103.5
33,107.1
11,587.5
21,519.59
11.0%

650,987.1
32,011.7
586,195.5
32,779.9
11,473.0
21,306.95
11.0%

678,899.3
33,161.8
613,335.0
32,402.5
11,340.9
21,061.60
11.0%

$ 346,174.49
$ 86,042.27
$ 260,132.21

$ 354,977.32
$ 87,505.79
$ 267,471.54

$ 364,143.27
$ 88,958.50
$ 275,184.77

$ 373,627.99
$ 90,400.10
$ 283,227.89

$ 383,334.51
$ 91,830.27
$ 291,504.25

$ 393,338.40
$ 93,248.65
$ 300,089.75

$ 403,652.22
$ 94,654.92
$ 308,997.30

$ 414,289.11
$ 96,048.72
$ 318,240.39

$ 425,262.76
$ 97,429.69
$ 327,833.07

$ 436,587.45
$ 98,797.47
$ 337,789.98

$ 448,278.07
$ 100,151.66
$ 348,126.40

$ 460,350.16
$ 101,491.90
$ 358,858.26

$ 472,819.94
$ 102,817.78
$ 370,002.17

$ 485,704.31
$ 104,128.89
$ 381,575.43

$ 499,020.91
$ 105,424.81
$ 393,596.09

$ 503,676.99
$ 97,594.01
$ 406,082.99

$ 526,008.16
$ 99,021.03
$ 426,987.13

$ 549,181.81
$ 100,419.38
$ 448,762.43

$ 573,231.26
$ 101,788.49
$ 471,442.78

$ 598,191.12
$ 103,127.74
$ 495,063.38

331,848.07
1%

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Electricity/Production Cost
Taxes
Annual Revenue Requirement
Check Revenue Requirement Achieves Annual ROE
Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

35%

CALCULATION OF ELECTRIC RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement

Rate Case Year


Sales for Test Year
Actual Electric Sales MWh

1
###
###

Input Year 0 rate


Non-fuel rate $/kWh
Fuel rate $/kWh
Total rate $/kWh

0.085815378
$
0.0213 $
$
0.0645 $
$

Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

0.0219
0.0662
0.0881

1
###
###

$
$
$

0.0222
0.0677
0.0899

1
###
###

$
$
$

0.0224
0.0693
0.0917

1
###
###

$
$
$

0.0226
0.0709
0.0936

1
###
###

$
$
$

0.0229
0.0726
0.0955

1
###
###

$
$
$

0.0231
0.0743
0.0974

1
###
###

$
$
$

0.0233
0.0761
0.0994

1
###
###

$
$
$

0.0235
0.0780
0.1015

1
###
###

$
$
$

0.0237
0.0799
0.1036

1
###
###

$
$
$

0.0239
0.0818
0.1057

1
###
###

$
$
$

0.0241
0.0838
0.1079

1
###
###

$
$
$

0.0243
0.0859
0.1102

1
###
###

$
$
$

0.0245
0.0880
0.1125

1
###
###

$
$
$

0.0246
0.0903
0.1149

1
###
###

$
$
$

0.0248
0.0925
0.1173

1
###
###

$
$
$

0.0228
0.0949
0.1177

1
###
###

$
$
$

0.0228
0.0982
0.1210

1
###
###

$
$
$

0.0227
0.1016
0.1243

1
###
###

$
$
$

0.0227
0.1050
0.1277

1
###
###

$
$
$

0.0226
0.1086
0.1312

$
$
$

624,097.30
104,436.51
519,660.79

$
$
$

650,987.12
105,714.18
545,272.94

$
$
$

678,899.30
106,960.10
571,939.21

1
4,633,028,358
4,633,028,358

1
4,707,156,812
4,707,156,812

1
4,782,471,321
4,782,471,321

$
$
$

$
$
$

$
$
$

0.0225
0.1122
0.1347

0.0225
0.1158
0.1383

0.0224
0.1196
0.1420

100%
86,042.27
260,132.21

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset

87,505.79
267,471.54

Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Energy Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

88,958.50
275,184.77

90,400.10
283,227.89

91,830.27
291,504.25

93,248.65
300,089.75

94,654.92
308,997.30

96,048.72
318,240.39

97,429.69
327,833.07

98,797.47
337,789.98

100,151.66
348,126.40

101,491.90
358,858.26

102,817.78
370,002.17

104,128.89
381,575.43

105,424.81
393,596.09

97,594.01
406,082.99

99,021.03
426,987.13

100,419.38
448,762.43

101,788.49
471,442.78

103,127.74
495,063.38

104,436.51
519,660.79

105,714.18
545,272.94

106,960.10
571,939.21

6,769.70

6,905.09

7,043.20

7,184.06

7,327.74

7,474.30

7,623.78

7,776.26

7,931.78

8,090.42

8,252.23

8,417.27

8,585.62

8,757.33

8,932.48

0%
-

Average Rate $/kWh


Non-fuel Rate $/kWh
Fuel Rate $/kWh
Non-fuel Bal Acct $/kWh
Fuel Bal Acct $/kWh
Shareholder Incentive Acct $/kWh
AnualTotResrcN Savings
12
10

$
$
$
$
$
$

Average Rate $/kWh

0.022
0.066
0.088

$
$
$
$
$
$

0.022
0.068
0.090

$
$
$
$
$
$

0.022
0.069
0.092

$
$
$
$
$
$

0.023
0.071
0.094

$
$
$
$
$
$

0.023
0.073
0.095

$
$
$
$
$
$

0.02
0.07
0.097

$
$
$
$
$
$

0.02
0.08
0.099

$
$
$
$
$
$

0.02
0.08
0.101

$
$
$
$
$
$

0.02
0.08
0.104

$
$
$
$
$
$

0.02
0.08
0.106

$
$
$
$
$
$

0.02
0.08
0.108

$
$
$
$
$
$

0.02
0.09
0.110

$
$
$
$
$
$

0.02
0.09
0.113

$
$
$
$
$
$

0.02
0.09
0.115

$
$
$
$
$
$

0.02
0.09
0.117

$
$
$
$
$
$

0.02
0.09
0.118

$
$
$
$
$
$

0.02
0.10
0.121

$
$
$
$
$
$

0.02
0.10
0.124

$
$
$
$
$
$

0.02
0.11
0.128

$
$
$
$
$
$

0.02
0.11
0.131

$
$
$
$
$
$

0.02
0.11
0.135

$
$
$
$
$
$

0.02
0.12
0.138

$
$
$
$
$
$

0.02
0.12
0.142

68
24
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue

346,174.49

425,262.76

436,587.45

499,020.91

503,676.99

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

346,174.49
312,012.7
34,161.8
11,956.6
22,205.1
11.0%

354,977.3
320,614.4
34,362.9
12,027.0
22,335.9
11.0%

364,143.3
329,606.2
34,537.1
12,088.0
22,449.1
11.0%

373,628.0
338,944.3
34,683.7
12,139.3
22,544.4
11.0%

383,334.5
348,532.5
34,802.0
12,180.7
22,621.3
11.0%

393,338.4
358,447.1
34,891.3
12,212.0
22,679.3
11.0%

403,652.2
368,701.3
34,950.9
12,232.8
22,718.1
11.0%

414,289.1
379,309.0
34,980.1
12,243.1
22,737.1
11.0%

425,262.8
390,284.6
34,978.2
12,242.4
22,735.8
11.0%

436,587.4
401,643.2
34,944.3
12,230.5
22,713.8
11.0%

448,278.1
413,400.4
34,877.7
12,207.2
22,670.5
11.0%

460,350.2
425,572.6
34,777.5
12,172.1
22,605.4
11.0%

472,819.9
438,176.9
34,643.0
12,125.1
22,518.0
11.0%

485,704.3
451,230.9
34,473.4
12,065.7
22,407.7
11.0%

499,020.9
464,753.3
34,267.6
11,993.7
22,274.0
11.0%

503,677.0
469,652.0
34,025.0
11,908.8
22,116.3
11.0%

526,008.2
492,074.4
33,933.7
11,876.8
22,056.9
11.0%

549,181.8
515,384.5
33,797.3
11,829.0
21,968.2
11.0%

573,231.3
539,616.6
33,614.7
11,765.1
21,849.6
11.0%

598,191.1
564,806.2
33,385.0
11,684.7
21,700.2
11.0%

624,097.3
590,990.2
33,107.1
11,587.5
21,519.6
11.0%

650,987.1
618,207.2
32,779.9
11,473.0
21,306.9
11.0%

678,899.3
646,496.8
32,402.5
11,340.9
21,061.6
11.0%

62,299
28,137
2.21

63,236
28,873
2.19

64,151
29,614
2.17

65,044
30,360
2.14

65,912
31,110
2.12

66,756
31,865
2.09

67,576
32,625
2.07

68,370
33,390
2.05

69,137
34,159
2.02

69,878
34,934
2.00

70,592
35,714
1.98

71,277
36,499
1.95

71,933
37,290
1.93

72,559
38,086
1.91

73,155
38,888
1.88

73,720
39,695
1.86

74,598
40,665
1.83

75,435
41,638
1.81

76,229
42,615
1.79

76,981
43,596
1.77

77,688
44,581
1.74

78,351
45,571
1.72

78,967
46,565
1.70

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)

50.00

ACHIEVED ROE CALCULATION (without Decoupling)


Revenue
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

354,977.32

364,143.27

373,627.99

383,334.51

393,338.40

403,652.22

414,289.11

448,278.07

460,350.16

472,819.94

485,704.31

526,008.16

549,181.81

573,231.26

598,191.12

624,097.30

650,987.12

678,899.30

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

346,174
312,012.7
34,161.8
11,956.6
22,205.1
11.0%

354,977
320,614.4
34,362.9
12,027.0
22,335.9
11.0%

364,143
329,606.2
34,537.1
12,088.0
22,449.1
11.0%

373,628
338,944.3
34,683.7
12,139.3
22,544.4
11.0%

383,335
348,532.5
34,802.0
12,180.7
22,621.3
11.0%

393,338
358,447.1
34,891.3
12,212.0
22,679.3
11.0%

403,652
368,701.3
34,950.9
12,232.8
22,718.1
11.0%

414,289
379,309.0
34,980.1
12,243.1
22,737.1
11.0%

425,263
390,284.6
34,978.2
12,242.4
22,735.8
11.0%

436,587
401,643.2
34,944.3
12,230.5
22,713.8
11.0%

448,278
413,400.4
34,877.7
12,207.2
22,670.5
11.0%

460,350
425,572.6
34,777.5
12,172.1
22,605.4
11.0%

472,820
438,176.9
34,643.0
12,125.1
22,518.0
11.0%

485,704
451,230.9
34,473.4
12,065.7
22,407.7
11.0%

499,021
464,753.3
34,267.6
11,993.7
22,274.0
11.0%

503,677
469,652.0
34,025.0
11,908.8
22,116.3
11.0%

526,008
492,074.4
33,933.7
11,876.8
22,056.9
11.0%

549,182
515,384.5
33,797.3
11,829.0
21,968.2
11.0%

573,231
539,616.6
33,614.7
11,765.1
21,849.6
11.0%

598,191
564,806.2
33,385.0
11,684.7
21,700.2
11.0%

624,097
590,990.2
33,107.1
11,587.5
21,519.6
11.0%

650,987
618,207.2
32,779.9
11,473.0
21,306.9
11.0%

678,899
646,496.8
32,402.5
11,340.9
21,061.6
11.0%

1
6,769.7

1
6,905.1

1
7,043.2

1
7,184.1

1
7,327.7

1
7,474.3

1
7,623.8

1
7,776.3

1
7,931.8

1
8,090.4

1
8,252.2

1
8,417.3

1
8,585.6

1
8,757.3

1
8,932.5

6,769.7

6,905.1

7,043.2

7,184.1

7,327.7

7,474.3

7,623.8

7,776.3

7,931.8

8,090.4

8,252.2

8,417.3

8,585.6

8,757.3

8,932.5

5,077.3

5,178.8

5,282.4

5,388.0

5,495.8

5,605.7

5,717.8

5,832.2

5,948.8

6,067.8

6,189.2

6,313.0

6,439.2

6,568.0

6,699.4

11,847.0

12,083.9

12,325.6

12,572.1

12,823.5

13,080.0

13,341.6

13,608.5

13,880.6

14,158.2

14,441.4

14,730.2

15,024.8

15,325.3

15,631.8

6769.7

6905.1

7043.2

7184.1

7327.7

7474.3

7623.8

7776.3

7931.8

8090.4

8252.2

8417.3

8585.6

8757.3

8932.5

ENERGY EFFICIENCY CALCULATIONS


ENERGY EFFICIENCY PROGRAM COSTS
Escalation of Efficiency Costs
Base Case Revenue without EE ($MM)
Cost of EE Program % of revenue
Additional Energy Efficiency through Shareholder Incentive
Flag for Program Costs Active
Budget (Cost) of EE Program - Utility
Budget (Cost) of EE Program - Utility
Participant Cost of EE Program
Cost of EE Program - Participant

2%
331848
2%
0%
15

75%

Total Program Cost - Utility and Participant

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

ENERGY EFFICIENCY PROGRAM SAVINGS


Calculations of Cumulative MWh saved
Budget (Cost) of EE Program - Utility
Cost of Energy Efficiency $/MWh Year1
EE Cost Escalation
Levelized Cost of Energy Efficiency $/MWh
Annualization Factor to Convert Levelized Costs

20
$

1.00
20.00 $

1.02
20.40

1.04
20.81

1.06
21.22 $

1.08
21.65 $

1.10
22.08 $

1.13
22.52 $

1.15
22.97 $

1.17
23.43 $

1.20
23.90 $

1.22
24.38 $

1.24
24.87 $

1.27
25.36 $

1.29
25.87 $

1.32
26.39 $

1.35
26.92 $

1.37
27.46 $

1.40
28.00 $

1.43
28.56 $

1.46
29.14 $

1.49
29.72 $

1.52
30.31 $

1.55
30.92

12%

Saved MWh - assumed in next calendar year after cost incurred


Cumulative Saved MWh

41,992,074
41,992,074

41,992,074
83,984,149

41,992,074
125,976,223

41,992,074
167,968,298

41,992,074
209,960,372

41,992,074
251,952,446

41,992,074
293,944,521

41,992,074
335,936,595

41,992,074
377,928,669

41,992,074
419,920,744

41,992,074
461,912,818

41,992,074
503,904,893

41,992,074
545,896,967

41,992,074
587,889,041

41,992,074
629,881,116

587,889,041

545,896,967

503,904,893

461,912,818

419,920,744

377,928,669

335,936,595

Calculations of Cumulative MW saved


EE Capacity Savings (peak MW/average MW)
Cumulative Savings average MW
Cumulative Savings peak MW
Peak Load Forecast No EE (MW)
Growth Related Gen Capacity Saved
Peak Load Forecast for Capacity Purchases (MW)
Capex Escalation Rate
CapEx - No EE Case $MM
Percentage of Capital Expenditure that is Growth Related %
Growth Related Capex Saved %

200%
4,794
9,587

9,587
19,174

14,381
28,762

19,174
38,349

23,968
47,936

28,762
57,523

33,555
67,111

38,349
76,698

43,143
86,285

47,936
95,872

52,730
105,460

57,523
115,047

62,317
124,634

67,111
134,221

71,904
143,808

67,111
134,221

62,317
124,634

57,523
115,047

52,730
105,460

47,936
95,872

43,143
86,285

38,349
76,698

956,000

971,296

986,837

1,002,626

1,018,668

1,034,967

1,051,526

1,068,351

1,085,444

1,102,811

1,120,456

1,138,384

1,156,598

1,175,103

1,193,905

1,213,008

1,232,416

1,252,134

1,272,168

1,292,523

1,313,204

1,334,215

1,355,562

956,000

971,296

986,837

1,002,626

1,018,668

1,034,967

1,051,526

1,068,351

1,085,444

1,102,811

1,120,456

1,138,384

1,156,598

1,175,103

1,193,905

1,213,008

1,232,416

1,252,134

1,272,168

1,292,523

1,313,204

1,334,215

1,355,562

20,187.20

20,651.51

21,126.49

21,612.40

22,109.48

22,618.00

23,138.22

23,670.40

24,214.82

24,771.76

25,341.51

25,924.36

26,520.62

27,130.60

27,754.60

28,392.95

29,045.99

29,714.05

30,397.47

31,096.62

31,811.84

32,543.51

33,292.01

0%

0.023
19,733.33
32%
25%

Peak Load Forecast for Capital Expenditures (MW)


Non-Growth Related Capex
Other Growth-Related CapEx $MM
Growth Rate - No EE (MW)
Growth Rate with EE (MW)
Percentage of Growth Related Capex Saved
Other Capex - Electric $MM with EE

Matrix to Determine Life of EE Savings


Life of EE Projects
Flag for EE Projects Life

968,899

982,043

995,436

1,009,081

1,022,983

1,037,145

1,051,573

1,066,270

1,081,240

1,096,488

1,112,019

1,127,836

1,143,945

1,160,350

1,177,055

1,198,860

1,220,976

1,243,407

1,266,158

1,289,235

1,312,644

1,336,388

13,640
6,547
0%

13,954
6,698
15,296
12,899
16%

14,275
6,852
15,541
13,144
15%

14,603
7,009
15,789
13,393
15%

14,939
7,171
16,042
13,645
15%

15,282
7,336
16,299
13,902
15%

15,634
7,504
16,559
14,163
14%

15,994
7,677
16,824
14,428
14%

16,361
7,853
17,094
14,697
14%

16,738
8,034
17,367
14,970
14%

17,123
8,219
17,645
15,248
14%

17,516
8,408
17,927
15,530
13%

17,919
8,601
18,214
15,817
13%

18,331
8,799
18,506
16,109
13%

18,753
9,001
18,802
16,405
13%

19,184
9,209
19,102
16,706
13%

19,626
9,420
19,408
21,805
-12%

20,077
9,637
19,719
22,115
-12%

20,539
9,859
20,034
22,431
-12%

21,011
10,085
20,355
22,752
-12%

21,494
10,317
20,680
23,077
-12%

21,989
10,555
21,011
23,408
-11%

22,495
10,797
21,347
23,744
-11%

20,187.20

19,602.00

20,069.75

20,548.38

21,038.13

21,539.27

22,052.05

22,576.75

23,113.63

23,662.98

24,225.10

24,800.26

25,388.77

25,990.95

26,607.10

27,237.55

30,209.36

30,885.43

31,576.92

32,284.19

33,007.60

33,747.51

34,504.30

15
1
1

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Annual MWh Savings (savings assumed in next calendar year after cost incurred)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Cumulative MWh Savings
Savings Percentage on Peak
On-Peak Savings (MWh)
Off-Peak Savings (MWh)

956,000

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

1
1
1
-

1
1
1
1

1
1
1
1
1
-

1
1
1
1
1
1
-

1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

41,992,074
-

41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074

83,984,149

125,976,223

167,968,298

209,960,372

251,952,446

293,944,521

335,936,595

377,928,669

419,920,744

461,912,818

503,904,893

545,896,967

31,494,056
10,498,019

62,988,112
20,996,037

94,482,167
31,494,056

125,976,223
41,992,074

157,470,279
52,490,093

188,964,335
62,988,112

220,458,390
73,486,130

251,952,446
83,984,149

283,446,502
94,482,167

314,940,558
104,980,186

346,434,614
115,478,205

377,928,669
125,976,223

409,422,725
136,474,242

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

587,889,041

629,881,116

587,889,041

545,896,967

503,904,893

461,912,818

419,920,744

377,928,669

335,936,595

440,916,781
146,972,260

472,410,837
157,470,279

440,916,781
146,972,260

409,422,725
136,474,242

377,928,669
125,976,223

346,434,614
115,478,205

314,940,558
104,980,186

283,446,502
94,482,167

251,952,446
83,984,149

75%

Emissions Rates Calculations


Monetize Emissions Costs
Escalation Rate
$/Ton CO2
$/lb Nox
$/lb PM-10
$/lb Sox
$/lb CO
$/lb VOC

0
2%
$
$
$

$
$
$

Tons CO2 Saved


lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

Peak Emissions Rates


0.429
0.078
0.04
0.004
0.01
0.0006
On-Peak Savings
-

Off-Peak Period Savings


Tons CO2 per MWh
lbs NOx per MWh
lbs PM-10 per MWh
lbs SOx per MWh
lbs CO per MWh
lbs VOC per MWh

Emissions Rates
1.012
0.672
0.144
1.15
1.438
0.028

Tons CO2 Saved


lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

0
0
0

On-Peak Energy Savings (MWh)


Off-Peak Energy Savings (MWh)

Peak Period Savings


Tons CO2 per MWh
lbs NOx per MWh
lbs PM-10 per MWh
lbs SOx per MWh
lbs CO per MWh
lbs VOC per MWh

Off-Peak Savings
-

Annual Emissions Saved (Physical Units)


Tons CO2 Saved
lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

Annual Emissions Savings ($MM)


$MM CO2
$MM Nox
$MM PM-10
$MM Sox
$MM CO
$MM VOC
Total

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

0
0
0

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

24,134,945
9,511,205
2,771,477
12,198,698
15,411,091
312,841

48,269,889
19,022,410
5,542,954
24,397,395
30,822,183
625,682

72,404,834
28,533,615
8,314,431
36,596,093
46,233,274
938,523

96,539,779
38,044,819
11,085,908
48,794,790
61,644,365
1,251,364

120,674,724
47,556,024
13,857,385
60,993,488
77,055,456
1,564,205

144,809,668
57,067,229
16,628,861
73,192,186
92,466,548
1,877,046

168,944,613
66,578,434
19,400,338
85,390,883
107,877,639
2,189,887

193,079,558
76,089,639
22,171,815
97,589,581
123,288,730
2,502,728

217,214,503
85,600,844
24,943,292
109,788,278
138,699,822
2,815,569

241,349,447
95,112,048
27,714,769
121,986,976
154,110,913
3,128,410

265,484,392
104,623,253
30,486,246
134,185,674
169,522,004
3,441,250

289,619,337
114,134,458
33,257,723
146,384,371
184,933,096
3,754,091

313,754,282
123,645,663
36,029,200
158,583,069
200,344,187
4,066,932

337,889,226
133,156,868
38,800,677
170,781,766
215,755,278
4,379,773

362,024,171
142,668,073
41,572,154
182,980,464
231,166,369
4,692,614

337,889,226
133,156,868
38,800,677
170,781,766
215,755,278
4,379,773

313,754,282
123,645,663
36,029,200
158,583,069
200,344,187
4,066,932

289,619,337
114,134,458
33,257,723
146,384,371
184,933,096
3,754,091

265,484,392
104,623,253
30,486,246
134,185,674
169,522,004
3,441,250

241,349,447
95,112,048
27,714,769
121,986,976
154,110,913
3,128,410

217,214,503
85,600,844
24,943,292
109,788,278
138,699,822
2,815,569

193,079,558
76,089,639
22,171,815
97,589,581
123,288,730
2,502,728

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

2013
7

2014
8

2015
9

2016
10

2017
11

2018
12

2019
13

2020
14

2021
15

2022
16

2023
17

2024
18

2025
19

2026
20

2027
21

2028
22

2029
23

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Rate Case Flag for Debt Coverage Method

2
346,174.5
295,832.6
50,341.93

354,977.3
303,768.1
51,209.25

364,143.3
312,079.8
52,063.52

373,628.0
320,723.6
52,904.38

383,334.5
329,603.0
53,731.49

393,338.4
338,793.9
54,544.48

403,652.2
348,309.2
55,342.98

414,289.1
358,162.5
56,126.60

425,262.8
368,367.8
56,894.97

436,587.4
378,939.8
57,647.68

448,278.1
389,893.7
58,384.32

460,350.2
401,245.7
59,104.48

472,819.9
413,012.2
59,807.73

485,704.3
425,210.7
60,493.63

499,020.9
437,859.2
61,161.73

503,677.0
441,865.4
61,811.57

526,008.2
463,286.7
62,721.45

549,181.8
485,576.0
63,605.83

573,231.3
508,767.1
64,464.20

598,191.1
532,895.1
65,295.99

624,097.3
557,996.7
66,100.65

650,987.1
584,109.5
66,877.61

678,899.3
611,273.0
67,626.27

14,006.2
14,130.5
28,136.8
1.79

14,659.6
14,213.7
28,873.4
1.77

15,328.6
14,285.8
29,614.4
1.76

16,013.6
14,346.4
30,360.0
1.74

16,714.8
14,395.4
31,110.2
1.73

17,432.8
14,432.3
31,865.1
1.71

18,167.9
14,457.0
32,624.9
1.70

18,920.5
14,469.1
33,389.5
1.68

19,690.9
14,468.2
34,159.2
1.67

20,479.7
14,454.2
34,933.9
1.65

21,287.2
14,426.7
35,713.8
1.63

22,113.8
14,385.2
36,499.1
1.62

22,960.1
14,329.6
37,289.8
1.60

23,826.5
14,259.4
38,085.9
1.59

24,713.4
14,174.3
38,887.8
1.57

25,621.3
14,074.0
39,695.3
1.56

26,628.3
14,036.2
40,664.5
1.54

27,657.8
13,979.8
41,637.6
1.53

28,710.4
13,904.3
42,614.6
1.51

29,786.5
13,809.2
43,595.8
1.50

30,886.8
13,694.3
44,581.1
1.48

32,011.7
13,559.0
45,570.7
1.47

33,161.8
13,402.8
46,564.7
1.45

2.00
0
0

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Rate Case Flag for Cash Position Method

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

1.00
1

50.00
22,205.14
22,255.1
22,205.14
50.00

22,335.87
22,385.9
22,335.87
50.00

22,449.10
22,499.1
22,449.10
50.00

22,544.38
22,594.4
22,544.38
50.00

22,621.28
22,671.3
22,621.28
50.00

22,679.34
22,729.3
22,679.34
50.00

22,718.11
22,768.1
22,718.11
50.00

22,737.09
22,787.1
22,737.09
50.00

22,735.82
22,785.8
22,735.82
50.00

22,713.78
22,763.8
22,713.78
50.00

22,670.48
22,720.5
22,670.48
50.00

22,605.39
22,655.4
22,605.39
50.00

22,517.97
22,568.0
22,517.97
50.00

22,407.68
22,457.7
22,407.68
50.00

22,273.97
22,324.0
22,273.97
50.00

22,116.26
22,166.3
22,116.26
50.00

22,056.92
22,106.9
22,056.92
50.00

21,968.23
22,018.2
21,968.23
50.00

21,849.55
21,899.6
21,849.55
50.00

21,700.23
21,750.2
21,700.23
50.00

21,519.59
21,569.6
21,519.59
50.00

21,306.95
21,356.9
21,306.95
50.00

21,061.60
21,111.6
21,061.60
50.00

45.00
-

1
1

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

1.02
1.00
###
-

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
41,992,074

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
###
-

1.02
1.00
4,633,028,358
-

1.02
1.00
4,707,156,812
-

1.02
1.00
4,782,471,321
-

ELECTRIC UTILITY CALCULATIONS


Electric Sales Forecasts - MWh
Peak Load Capacity (MW)
Average Load Factor
Forecast Electric Sales (MWh) - yr 0
Forecast Electric Sales - Annual Increase
Rate Case Year
Forecast Electric Sales (NoEE) MWh - Adjusted per actuals
Actual Energy Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Energy Efficiency Reductions
Forecast Electric Sales MWh - Adjusted per actuals during rate case
Electric Sales Actual MWh
Electric Sales - MWh - year 0
Growth Rate - actual MWh
Actual Electric Sales (MWh) with EE
Actual Electric Sales (MWh) without EE

956,000
46%
3,867,000,000

100%
3,867,000,000

3,867,000,000
3,867,000,000

ELECTRIC UTILITY COST CALCULATIONS


Electric Purchases MWh
Actual Electric Sales (MWh) without EE
Average Marginal Losses - additional above sales MWh
Actual MWh Purchased / Produced without EE
Cost of Energy (Purchased or Produced)
Average Cost of Energy $/MWh
Escalation
Forecast Average Cost of Energy $/MWh
Sensitivity to Fuel Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency
Actual Average Cost of Energy $/MWh
MWh Purchased / Produced - Without EE
Forecast Average Cost of Energy $MM
Actual Average Cost of Energy $MM

###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

41,992,074
###

###

###

###

###

4,633,028,358

4,707,156,812

4,782,471,321

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
###
###

1.02
4,633,028,358
5,396,871,020

1.02
4,707,156,812
5,483,220,956

1.02
4,782,471,321
5,570,952,492

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

###
1.06
###

5,396,871,020
1.06
5,720,683,281

5,483,220,956
1.06
5,812,214,214

5,570,952,492
1.06
5,905,209,641

1.02
62.46

1.05
63.90

1.07
65.37

1.10
66.87

1.12
68.41

1.15
69.98

1.17
71.59

1.20
73.24

1.23
74.92

1.26
76.65

1.28
78.41

1.31
80.21

1.34
82.06

1.37
83.95

1.41
85.88

1.44
87.85

1.47
89.87

1.51
91.94

1.54
94.05

1.58
96.22

1.61
98.43

1.65
100.70

1.69
103.01

62.46
###
260,132.2
260,132.2

63.90
###
270,373.1
270,373.1

65.37
###
281,017.1
281,017.1

66.87
###
292,080.2
292,080.2

68.41
###
303,578.8
303,578.8

69.98
###
315,530.1
315,530.1

71.59
###
327,951.9
327,951.9

73.24
###
340,862.7
340,862.7

74.92
###
354,281.8
354,281.8

76.65
###
368,229.2
368,229.2

78.41
###
382,725.6
382,725.6

80.21
###
397,792.8
397,792.8

82.06
###
413,453.1
413,453.1

83.95
###
429,729.9
429,729.9

85.88
###
446,647.5
446,647.5

87.85
###
464,231.1
464,231.1

89.87
###
482,507.0
482,507.0

91.94
###
501,502.3
501,502.3

94.05
###
521,245.5
521,245.5

96.22
###
541,765.9
541,765.9

98.43
5,720,683,281
563,094.1
563,094.1

100.70
5,812,214,214
585,262.0
585,262.0

103.01
5,905,209,641
608,302.6
608,302.6

3,867,000,000

61.06

0%
0%

Energy Efficiency Cost Savings - Forecasted


Peak Period ($/MWh)
Off-Peak Period ($/MWh)
Percent of EE Included in Forecast
Peak Period EE Savings (MWh)
Off-Peak Period EE Savings (MWh)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecasted Energy Savings ($MM)

75.72
60.10

72.86
57.82

73.22
58.11

74.09
58.80

75.80
60.16

77.54
61.54

79.32
62.95

81.15
64.40

83.01
65.88

84.92
67.40

86.88
68.95

88.87
70.54

90.92
72.16

93.01
73.82

95.15
75.52

97.34
77.25

99.58
79.03

101.87
80.85

104.21
82.71

106.61
84.61

109.06
86.55

111.57
88.54

114.13
90.58

31,494,056
10,498,019
2295
607
2,902

62,988,112
20,996,037
4612
1220
5,832

94,482,167
31,494,056
7000
1852
8,852

125,976,223
41,992,074
9549
2526
12,075

157,470,279
52,490,093
12210
3230
15,440

188,964,335
62,988,112
14989
3965
18,955

220,458,390
73,486,130
17890
4733
22,622

251,952,446
83,984,149
20916
5533
26,449

283,446,502
94,482,167
24071
6368
30,439

314,940,558
104,980,186
27361
7238
34,599

346,434,614
115,478,205
30789
8145
38,935

377,928,669
125,976,223
34361
9090
43,451

409,422,725
136,474,242
38080
10074
48,154

440,916,781
146,972,260
41953
11099
53,051

472,410,837
157,470,279
45983
12165
58,148

440,916,781
146,972,260
43905
11615
55,520

409,422,725
136,474,242
41706
11033
52,740

377,928,669
125,976,223
39384
10419
49,803

346,434,614
115,478,205
36932
9770
46,702

314,940,558
104,980,186
34347
9086
43,433

283,446,502
94,482,167
31623
8366
39,989

251,952,446
83,984,149
28756
7607
36,363

75.72
60.10
-

72.86
57.82
31,494,056
10,498,019
2,295
607
2,902

73.22
58.11
62,988,112
20,996,037
4,612
1,220
5,832

74.09
58.80
94,482,167
31,494,056
7,000
1,852
8,852

75.80
60.16
125,976,223
41,992,074
9,549
2,526
12,075

77.54
61.54
157,470,279
52,490,093
12,210
3,230
15,440

79.32
62.95
188,964,335
62,988,112
14,989
3,965
18,955

81.15
64.40
220,458,390
73,486,130
17,890
4,733
22,622

83.01
65.88
251,952,446
83,984,149
20,916
5,533
26,449

84.92
67.40
283,446,502
94,482,167
24,071
6,368
30,439

86.88
68.95
314,940,558
104,980,186
27,361
7,238
34,599

88.87
70.54
346,434,614
115,478,205
30,789
8,145
38,935

90.92
72.16
377,928,669
125,976,223
34,361
9,090
43,451

93.01
73.82
409,422,725
136,474,242
38,080
10,074
48,154

95.15
75.52
440,916,781
146,972,260
41,953
11,099
53,051

97.34
77.25
472,410,837
157,470,279
45,983
12,165
58,148

99.58
79.03
440,916,781
146,972,260
43,905
11,615
55,520

101.87
80.85
409,422,725
136,474,242
41,706
11,033
52,740

104.21
82.71
377,928,669
125,976,223
39,384
10,419
49,803

106.61
84.61
346,434,614
115,478,205
36,932
9,770
46,702

109.06
86.55
314,940,558
104,980,186
34,347
9,086
43,433

111.57
88.54
283,446,502
94,482,167
31,623
8,366
39,989

114.13
90.58
251,952,446
83,984,149
28,756
7,607
36,363

260,132
260,132

267,472
267,472

275,185
275,185

283,228
283,228

291,504
291,504

300,090
300,090

308,997
308,997

318,240
318,240

327,833
327,833

337,790
337,790

348,126
348,126

358,858
358,858

370,002
370,002

381,575
381,575

393,596
393,596

406,083
406,083

426,987
426,987

448,762
448,762

471,443
471,443

495,063
495,063

519,661
519,661

545,273
545,273

571,939
571,939

1.02
956,000
-

1.05
971,296
-

1.07
986,837
-

1.10
1,002,626
-

1.12
1,018,668
-

1.15
1,034,967
-

1.17
1,051,526
-

1.20
1,068,351
-

1.23
1,085,444
-

1.26
1,102,811
-

1.28
1,120,456
-

1.31
1,138,384
-

1.34
1,156,598
-

1.37
1,175,103
-

1.41
1,193,905
-

1.44
1,213,008
-

1.47
1,232,416
-

1.51
1,252,134
-

1.54
1,272,168
-

1.58
1,292,523
-

1.61
1,313,204
-

1.65
1,334,215
-

1.69
1,355,562
-

100%
0
0
-

Energy Efficiency Cost Savings - Actual


Sensitivity % cost variation from forecast
% Cost Decrease due to Demand Reduction from Energy Efficiency
Peak Period ($/MWh)
Off-Peak Period ($/MWh)
Peak Period EE Savings (MWh)
Off-Peak Period EE Savings (MWh)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Energy Savings ($MM)

0%
0%

Forecast Cost of Energy with EE ($MM)


Actual Cost of Energy with EE ($MM)
Cost of Capacity
Average Cost of Purchased Electricity Capacity or Production Cost $/kW-yr
Escalation
Forecasted Cost of Capacity ($/kW-yr )
Actual Cost for Sensitivity ($/kW-yr)
Peak Capacity Purchases with EE
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

260,132
260,132.2

267,472
267,472

275,185
275,185

283,228
283,228

291,504
291,504

300,090
300,090

308,997
308,997

318,240
318,240

327,833
327,833

337,790
337,790

348,126
348,126

358,858
358,858

370,002
370,002

381,575
381,575

393,596
393,596

406,083
406,083

426,987
426,987

448,762
448,762

471,443
471,443

495,063
495,063

519,661
519,661

545,273
545,273

571,939
571,939

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

Forecast Cost of Energy and Capacity with EE ($MM)


Actual Total Cost of Energy and Capacity with EE ($MM)

20,187

19,602

20,070

20,548

21,038

21,539

22,052

22,577

23,114

23,663

24,225

24,800

25,389

25,991

26,607

27,238

30,209

30,885

31,577

32,284

33,008

33,748

34,504

Total Electric Capital Expenditures ($MM)

20,187

19,602

20,070

20,548

21,038

21,539

22,052

22,577

23,114

23,663

24,225

24,800

25,389

25,991

26,607

27,238

30,209

30,885

31,577

32,284

33,008

33,748

34,504

1.02
16,974

1.05
17,364

1.07
17,764

1.10
18,172

1.12
18,590

1.15
19,018

1.17
19,455

1.20
19,903

1.23
20,361

1.26
20,829

1.28
21,308

1.31
21,798

1.34
22,299

1.37
22,812

1.41
23,337

1.44
23,874

1.47
24,423

1.51
24,985

1.54
25,559

1.58
26,147

1.61
26,748

1.65
27,364

1.69
27,993

420,187

439,789

459,859

480,407

501,445

522,985

545,037

567,614

590,727

614,390

638,615

663,415

688,804

714,795

741,402

768,640

798,849

829,735

861,312

893,596

926,603

960,351

994,855

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Electric O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Electric Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - electric utility
Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve

16,592.40

400,000

20

400,000

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

5%

400,000
21,009
20,187
399,178

399,178
21,989
19,602
396,790

396,790
22,993
20,070
393,867

393,867
24,020
20,548
390,395

390,395
25,072
21,038
386,361

386,361
26,149
21,539
381,751

381,751
27,252
22,052
376,551

376,551
28,381
22,577
370,747

370,747
29,536
23,114
364,325

364,325
30,720
23,663
357,268

357,268
31,931
24,225
349,562

349,562
33,171
24,800
341,192

341,192
34,440
25,389
332,140

332,140
35,740
25,991
322,392

322,392
37,070
26,607
311,929

311,929
38,432
27,238
300,734

300,734
39,942
30,209
291,001

291,001
41,487
30,885
280,400

280,400
43,066
31,577
268,911

268,911
44,680
32,284
256,516

5%
256,516
46,330
33,008
243,193

5%
243,193
48,018
33,748
228,923

5%
228,923
49,743
34,504
213,685

30

400,000

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

3%

400,000
14,006
20,187
406,181

406,181
14,660
19,602
411,123

411,123
15,329
20,070
415,864

415,864
16,014
20,548
420,399

420,399
16,715
21,038
424,723

424,723
17,433
21,539
428,829

428,829
18,168
22,052
432,713

432,713
18,920
22,577
436,369

436,369
19,691
23,114
439,792

439,792
20,480
23,663
442,975

442,975
21,287
24,225
445,913

445,913
22,114
24,800
448,600

448,600
22,960
25,389
451,028

451,028
23,827
25,991
453,193

453,193
24,713
26,607
455,087

455,087
25,621
27,238
456,703

456,703
26,628
30,209
460,284

460,284
27,658
30,885
463,511

463,511
28,710
31,577
466,378

466,378
29,787
32,284
468,876

3%
468,876
30,887
33,008
470,996

3%
470,996
32,012
33,748
472,732

3%
472,732
33,162
34,504
474,075

35.00%
2,451.1
2,451.1

2,565.4
5,016.5

2,682.5
7,699.0

2,802.4
10,501.4

2,925.1
13,426.5

3,050.7
16,477.3

3,179.4
19,656.6

3,311.1
22,967.7

3,445.9
26,413.6

3,583.9
29,997.6

3,725.3
33,722.8

3,869.9
37,592.7

4,018.0
41,610.8

4,169.6
45,780.4

4,324.8
50,105.3

4,483.7
54,589.0

4,660.0
59,248.9

4,840.1
64,089.1

5,024.3
69,113.4

5,212.6
74,326.0

5,405.2
79,731.2

5,602.0
85,333.3

5,803.3
91,136.6

420187.2
14,006.2
2,451.1

439789.2
28,665.9
5,016.5

459858.9
43,994.5
7,699.0

480407.3
60,008.1
10,501.4

501445.5
76,722.9
13,426.5

522984.7
94,155.8
16,477.3

545036.8
112,323.7
19,656.6

567613.5
131,244.1
22,967.7

590727.2
150,935.0
26,413.6

614390.1
171,414.7
29,997.6

638615.2
192,701.9
33,722.8

663415.5
214,815.7
37,592.7

688804.3
237,775.8
41,610.8

714795.2
261,602.4
45,780.4

741402.3
286,315.8
50,105.3

768639.9
311,937.1
54,589.0

798849.2
338,565.4
59,248.9

829734.7
366,223.2
64,089.1

861311.6
394,933.6
69,113.4

893595.8
424,720.1
74,326.0

926603.4
455,606.9
79,731.2

960350.9
487,618.6
85,333.3

994855.2
520,780.4
91,136.6

Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt
Rate Base % Equity
Rate Base Debt
Rate Base Equity
Municipal - Cooperative Utility Debt Cost
Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level

403,729.9

406,106.8

408,165.4

409,897.8

411,296.0

412,351.7

413,056.5

413,401.7

413,378.5

412,977.9

412,190.6

411,007.0

409,417.6

407,412.4

404,981.3

402,113.8

401,034.9

399,422.4

397,264.6

394,549.6

391,265.2

387,399.0

382,938.1

201,864.9
201,864.9

203,053.4
203,053.4

204,082.7
204,082.7

204,948.9
204,948.9

205,648.0
205,648.0

206,175.9
206,175.9

206,528.2
206,528.2

206,700.8
206,700.8

206,689.3
206,689.3

206,488.9
206,488.9

206,095.3
206,095.3

205,503.5
205,503.5

204,708.8
204,708.8

203,706.2
203,706.2

202,490.6
202,490.6

201,056.9
201,056.9

200,517.4
200,517.4

199,711.2
199,711.2

198,632.3
198,632.3

197,274.8
197,274.8

195,632.6
195,632.6

193,699.5
193,699.5

191,469.1
191,469.1

20,187.2
14,006.2
6,431.0

19,602.0
14,659.6
11,373.3

20,069.7
15,328.6
16,114.4

20,548.4
16,013.6
20,649.2

21,038.1
16,714.8
24,972.5

21,539.3
17,432.8
29,079.0

22,052.1
18,167.9
32,963.1

22,576.7
18,920.5
36,619.4

23,113.6
19,690.9
40,042.1

23,663.0
20,479.7
43,225.5

24,225.1
21,287.2
46,163.4

24,800.3
22,113.8
48,849.8

25,388.8
22,960.1
51,278.4

25,991.0
23,826.5
53,442.9

26,607.1
24,713.4
55,336.6

27,237.6
25,621.3
56,952.8

30,209.4
26,628.3
60,533.8

30,885.4
27,657.8
63,761.4

31,576.9
28,710.4
66,628.0

32,284.2
29,786.5
69,125.6

33,007.6
30,886.8
71,246.5

33,747.5
32,011.7
72,982.3

34,504.3
33,161.8
74,324.7

201,864.9
14,130.5

203,053.4
14,213.7

204,082.7
14,285.8

204,948.9
14,346.4

205,648.0
14,395.4

206,175.9
14,432.3

206,528.2
14,457.0

206,700.8
14,469.1

206,689.3
14,468.2

206,488.9
14,454.2

206,095.3
14,426.7

205,503.5
14,385.2

204,708.8
14,329.6

203,706.2
14,259.4

202,490.6
14,174.3

201,056.9
14,074.0

200,517.4
14,036.2

199,711.2
13,979.8

198,632.3
13,904.3

197,274.8
13,809.2

195,632.6
13,694.3

193,699.5
13,559.0

191,469.1
13,402.8

201,864.9
22,205.1

203,053.4
22,335.9

204,082.7
22,449.1

204,948.9
22,544.4

205,648.0
22,621.3

206,175.9
22,679.3

206,528.2
22,718.1

206,700.8
22,737.1

206,689.3
22,735.8

206,488.9
22,713.8

206,095.3
22,670.5

205,503.5
22,605.4

204,708.8
22,518.0

203,706.2
22,407.7

202,490.6
22,274.0

201,056.9
22,116.3

200,517.4
22,056.9

199,711.2
21,968.2

198,632.3
21,849.6

197,274.8
21,700.2

195,632.6
21,519.6

193,699.5
21,306.9

191,469.1
21,061.6

11,956.6

12,027.0

12,088.0

12,139.3

12,180.7

12,212.0

12,232.8

12,243.1

12,242.4

12,230.5

12,207.2

12,172.1

12,125.1

12,065.7

11,993.7

11,908.8

11,876.8

11,829.0

11,765.1

11,684.7

11,587.5

11,473.0

11,340.9

28,136.8
28,136.8

28,873.4
28,873.4

29,614.4
29,614.4

30,360.0
30,360.0

31,110.2
31,110.2

31,865.1
31,865.1

32,624.9
32,624.9

33,389.5
33,389.5

34,159.2
34,159.2

34,933.9
34,933.9

35,713.8
35,713.8

36,499.1
36,499.1

37,289.8
37,289.8

38,085.9
38,085.9

38,887.8
38,887.8

39,695.3
39,695.3

40,664.5
40,664.5

41,637.6
41,637.6

42,614.6
42,614.6

43,595.8
43,595.8

44,581.1
44,581.1

45,570.7
45,570.7

46,564.7
46,564.7

50%
50%

250.00

Annual Debt Cost


Debt Interest Rate
Debt
Interest on Debt

7%

Return on Rate Base - Investor-owned Utility


Utility Equity Return
Rate Base Equity
Return - electric utility
Tax Rate
Tax - electric utility
Earnings Target - Municipal and Cooperative Utilities
1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax
Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

11.0%

35%

2
2.00

35%
15,150.6

15,547.2

15,946.2

16,347.7

16,751.7

17,158.1

17,567.2

17,979.0

18,393.4

18,810.6

19,230.5

19,653.4

20,079.1

20,507.8

20,939.6

21,374.4

21,896.3

22,420.2

22,946.3

23,474.6

24,005.2

24,538.0

25,073.3

346,174.5

354,977.3

364,143.3

373,628.0

383,334.5

393,338.4

403,652.2

414,289.1

425,262.8

436,587.4

448,278.1

460,350.2

472,819.9

485,704.3

499,020.9

503,677.0

526,008.2

549,181.8

573,231.3

598,191.1

624,097.3

650,987.1

678,899.3

3,318.5
22,205.1

3,461.7
22,335.9

3,549.8
22,449.1

3,641.4
22,544.4

3,736.3
22,621.3

3,833.3
22,679.3

3,933.4
22,718.1

4,036.5
22,737.1

4,142.9
22,735.8

4,252.6
22,713.8

4,365.9
22,670.5

4,482.8
22,605.4

4,603.5
22,518.0

4,728.2
22,407.7

4,857.0
22,274.0

4,990.2
22,116.3

5,036.8
22,056.9

5,260.1
21,968.2

5,491.8
21,849.6

5,732.3
21,700.2

5,981.9
21,519.6

6,241.0
21,306.9

6,509.9
21,061.6

22,205.1
14,006.2
14,130.5
16,974.0
6,769.7
260,132.2
11,956.6
346,174.5

22,335.9
14,659.6
14,213.7
17,364.4
6,905.1
267,471.5
12,027.0
354,977.3

22,449.1
15,328.6
14,285.8
17,763.8
7,043.2
275,184.8
12,088.0
364,143.3

22,544.4
16,013.6
14,346.4
18,172.4
7,184.1
283,227.9
12,139.3
373,628.0

22,621.3
16,714.8
14,395.4
18,590.3
7,327.7
291,504.2
12,180.7
383,334.5

22,679.3
17,432.8
14,432.3
19,017.9
7,474.3
300,089.7
12,212.0
393,338.4

22,718.1
18,167.9
14,457.0
19,455.3
7,623.8
308,997.3
12,232.8
403,652.2

22,737.1
18,920.5
14,469.1
19,902.8
7,776.3
318,240.4
12,243.1
414,289.1

22,735.8
19,690.9
14,468.2
20,360.6
7,931.8
327,833.1
12,242.4
425,262.8

22,713.8
20,479.7
14,454.2
20,828.9
8,090.4
337,790.0
12,230.5
436,587.4

22,670.5
21,287.2
14,426.7
21,307.9
8,252.2
348,126.4
12,207.2
448,278.1

22,605.4
22,113.8
14,385.2
21,798.0
8,417.3
358,858.3
12,172.1
460,350.2

22,518.0
22,960.1
14,329.6
22,299.4
8,585.6
370,002.2
12,125.1
472,819.9

22,407.7
23,826.5
14,259.4
22,812.3
8,757.3
381,575.4
12,065.7
485,704.3

22,274.0
24,713.4
14,174.3
23,336.9
8,932.5
393,596.1
11,993.7
499,020.9

22,116.3
25,621.3
14,074.0
23,873.7
406,083.0
11,908.8
503,677.0

22,056.9
26,628.3
14,036.2
24,422.8
426,987.1
11,876.8
526,008.2

21,968.2
27,657.8
13,979.8
24,984.5
448,762.4
11,829.0
549,181.8

21,849.6
28,710.4
13,904.3
25,559.1
471,442.8
11,765.1
573,231.3

21,700.2
29,786.5
13,809.2
26,147.0
495,063.4
11,684.7
598,191.1

21,519.6
30,886.8
13,694.3
26,748.4
519,660.8
11,587.5
624,097.3

21,306.9
32,011.7
13,559.0
27,363.6
545,272.9
11,473.0
650,987.1

21,061.6
33,161.8
13,402.8
27,993.0
571,939.2
11,340.9
678,899.3

346,174.5
14,006.2
298,006.5
34,161.8
11,956.6
22,205.14
11.0%

354,977.3
14,659.6
305,954.8
34,362.9
12,027.0
22,335.87
11.0%

364,143.3
15,328.6
314,277.6
34,537.1
12,088.0
22,449.10
11.0%

373,628.0
16,013.6
322,930.8
34,683.7
12,139.3
22,544.38
11.0%

383,334.5
16,714.8
331,817.7
34,802.0
12,180.7
22,621.28
11.0%

393,338.4
17,432.8
341,014.3
34,891.3
12,212.0
22,679.34
11.0%

403,652.2
18,167.9
350,533.4
34,950.9
12,232.8
22,718.11
11.0%

414,289.1
18,920.5
360,388.5
34,980.1
12,243.1
22,737.09
11.0%

425,262.8
19,690.9
370,593.7
34,978.2
12,242.4
22,735.82
11.0%

436,587.4
20,479.7
381,163.5
34,944.3
12,230.5
22,713.78
11.0%

448,278.1
21,287.2
392,113.2
34,877.7
12,207.2
22,670.48
11.0%

460,350.2
22,113.8
403,458.8
34,777.5
12,172.1
22,605.39
11.0%

472,819.9
22,960.1
415,216.8
34,643.0
12,125.1
22,517.97
11.0%

485,704.3
23,826.5
427,404.4
34,473.4
12,065.7
22,407.68
11.0%

499,020.9
24,713.4
440,039.8
34,267.6
11,993.7
22,273.97
11.0%

503,677.0
25,621.3
444,030.7
34,025.0
11,908.8
22,116.26
11.0%

526,008.2
26,628.3
465,446.1
33,933.7
11,876.8
22,056.92
11.0%

549,181.8
27,657.8
487,726.7
33,797.3
11,829.0
21,968.23
11.0%

573,231.3
28,710.4
510,906.2
33,614.7
11,765.1
21,849.55
11.0%

598,191.1
29,786.5
535,019.6
33,385.0
11,684.7
21,700.23
11.0%

624,097.3
30,886.8
560,103.5
33,107.1
11,587.5
21,519.59
11.0%

650,987.1
32,011.7
586,195.5
32,779.9
11,473.0
21,306.95
11.0%

678,899.3
33,161.8
613,335.0
32,402.5
11,340.9
21,061.60
11.0%

$ 346,174.49
$ 86,042.27
$ 260,132.21

$ 354,977.32
$ 87,505.79
$ 267,471.54

$ 364,143.27
$ 88,958.50
$ 275,184.77

$ 373,627.99
$ 90,400.10
$ 283,227.89

$ 383,334.51
$ 91,830.27
$ 291,504.25

$ 393,338.40
$ 93,248.65
$ 300,089.75

$ 403,652.22
$ 94,654.92
$ 308,997.30

$ 414,289.11
$ 96,048.72
$ 318,240.39

$ 425,262.76
$ 97,429.69
$ 327,833.07

$ 436,587.45
$ 98,797.47
$ 337,789.98

$ 448,278.07
$ 100,151.66
$ 348,126.40

$ 460,350.16
$ 101,491.90
$ 358,858.26

$ 472,819.94
$ 102,817.78
$ 370,002.17

$ 485,704.31
$ 104,128.89
$ 381,575.43

$ 499,020.91
$ 105,424.81
$ 393,596.09

$ 503,676.99
$ 97,594.01
$ 406,082.99

$ 526,008.16
$ 99,021.03
$ 426,987.13

$ 549,181.81
$ 100,419.38
$ 448,762.43

$ 573,231.26
$ 101,788.49
$ 471,442.78

$ 598,191.12
$ 103,127.74
$ 495,063.38

331,848.07
1%

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Electricity/Production Cost
Taxes
Annual Revenue Requirement
Check Revenue Requirement Achieves Annual ROE
Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

35%

CALCULATION OF ELECTRIC RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement

Rate Case Year


Sales for Test Year
Actual Electric Sales MWh

1
###
###

Input Year 0 rate


Non-fuel rate $/kWh
Fuel rate $/kWh
Total rate $/kWh

0.085815378
$
0.0213 $
$
0.0645 $
$

Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

0.0219
0.0662
0.0881

1
###
###

$
$
$

0.0222
0.0677
0.0899

1
###
###

$
$
$

0.0224
0.0693
0.0917

1
###
###

$
$
$

0.0226
0.0709
0.0936

1
###
###

$
$
$

0.0229
0.0726
0.0955

1
###
###

$
$
$

0.0231
0.0743
0.0974

1
###
###

$
$
$

0.0233
0.0761
0.0994

1
###
###

$
$
$

0.0235
0.0780
0.1015

1
###
###

$
$
$

0.0237
0.0799
0.1036

1
###
###

$
$
$

0.0239
0.0818
0.1057

1
###
###

$
$
$

0.0241
0.0838
0.1079

1
###
###

$
$
$

0.0243
0.0859
0.1102

1
###
###

$
$
$

0.0245
0.0880
0.1125

1
###
###

$
$
$

0.0246
0.0903
0.1149

1
###
###

$
$
$

0.0248
0.0925
0.1173

1
###
###

$
$
$

0.0228
0.0949
0.1177

1
###
###

$
$
$

0.0228
0.0982
0.1210

1
###
###

$
$
$

0.0227
0.1016
0.1243

1
###
###

$
$
$

0.0227
0.1050
0.1277

1
###
###

$
$
$

0.0226
0.1086
0.1312

$
$
$

624,097.30
104,436.51
519,660.79

$
$
$

650,987.12
105,714.18
545,272.94

$
$
$

678,899.30
106,960.10
571,939.21

1
4,633,028,358
4,633,028,358

1
4,707,156,812
4,707,156,812

1
4,782,471,321
4,782,471,321

$
$
$

$
$
$

$
$
$

0.0225
0.1122
0.1347

0.0225
0.1158
0.1383

0.0224
0.1196
0.1420

0
86,042.27
260,132.21

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset

87,505.79
267,471.54

Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Energy Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

88,958.50
275,184.77

90,400.10
283,227.89

91,830.27
291,504.25

93,248.65
300,089.75

94,654.92
308,997.30

96,048.72
318,240.39

97,429.69
327,833.07

98,797.47
337,789.98

100,151.66
348,126.40

101,491.90
358,858.26

102,817.78
370,002.17

104,128.89
381,575.43

105,424.81
393,596.09

97,594.01
406,082.99

99,021.03
426,987.13

100,419.38
448,762.43

101,788.49
471,442.78

103,127.74
495,063.38

104,436.51
519,660.79

105,714.18
545,272.94

106,960.10
571,939.21

6,769.70

6,905.09

7,043.20

7,184.06

7,327.74

7,474.30

7,623.78

7,776.26

7,931.78

8,090.42

8,252.23

8,417.27

8,585.62

8,757.33

8,932.48

0%
-

Average Rate $/kWh


Non-fuel Rate $/kWh
Fuel Rate $/kWh
Non-fuel Bal Acct $/kWh
Fuel Bal Acct $/kWh
Shareholder Incentive Acct $/kWh
AnualTotResrcN Savings
12
10

$
$
$
$
$
$

Average Rate $/kWh

0.022
0.066
0.088

$
$
$
$
$
$

0.022
0.068
0.090

$
$
$
$
$
$

0.022
0.069
0.092

$
$
$
$
$
$

0.023
0.071
0.094

$
$
$
$
$
$

0.023
0.073
0.095

$
$
$
$
$
$

0.02
0.07
0.097

$
$
$
$
$
$

0.02
0.08
0.099

$
$
$
$
$
$

0.02
0.08
0.101

$
$
$
$
$
$

0.02
0.08
0.104

$
$
$
$
$
$

0.02
0.08
0.106

$
$
$
$
$
$

0.02
0.08
0.108

$
$
$
$
$
$

0.02
0.09
0.110

$
$
$
$
$
$

0.02
0.09
0.113

$
$
$
$
$
$

0.02
0.09
0.115

$
$
$
$
$
$

0.02
0.09
0.117

$
$
$
$
$
$

0.02
0.09
0.118

$
$
$
$
$
$

0.02
0.10
0.121

$
$
$
$
$
$

0.02
0.10
0.124

$
$
$
$
$
$

0.02
0.11
0.128

$
$
$
$
$
$

0.02
0.11
0.131

$
$
$
$
$
$

0.02
0.11
0.135

$
$
$
$
$
$

0.02
0.12
0.138

$
$
$
$
$
$

0.02
0.12
0.142

68
24
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue

346,174.49

425,262.76

436,587.45

499,020.91

503,676.99

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

346,174.49
312,012.7
34,161.8
11,956.6
22,205.1
11.0%

354,977.3
320,614.4
34,362.9
12,027.0
22,335.9
11.0%

364,143.3
329,606.2
34,537.1
12,088.0
22,449.1
11.0%

373,628.0
338,944.3
34,683.7
12,139.3
22,544.4
11.0%

383,334.5
348,532.5
34,802.0
12,180.7
22,621.3
11.0%

393,338.4
358,447.1
34,891.3
12,212.0
22,679.3
11.0%

403,652.2
368,701.3
34,950.9
12,232.8
22,718.1
11.0%

414,289.1
379,309.0
34,980.1
12,243.1
22,737.1
11.0%

425,262.8
390,284.6
34,978.2
12,242.4
22,735.8
11.0%

436,587.4
401,643.2
34,944.3
12,230.5
22,713.8
11.0%

448,278.1
413,400.4
34,877.7
12,207.2
22,670.5
11.0%

460,350.2
425,572.6
34,777.5
12,172.1
22,605.4
11.0%

472,819.9
438,176.9
34,643.0
12,125.1
22,518.0
11.0%

485,704.3
451,230.9
34,473.4
12,065.7
22,407.7
11.0%

499,020.9
464,753.3
34,267.6
11,993.7
22,274.0
11.0%

503,677.0
469,652.0
34,025.0
11,908.8
22,116.3
11.0%

526,008.2
492,074.4
33,933.7
11,876.8
22,056.9
11.0%

549,181.8
515,384.5
33,797.3
11,829.0
21,968.2
11.0%

573,231.3
539,616.6
33,614.7
11,765.1
21,849.6
11.0%

598,191.1
564,806.2
33,385.0
11,684.7
21,700.2
11.0%

624,097.3
590,990.2
33,107.1
11,587.5
21,519.6
11.0%

650,987.1
618,207.2
32,779.9
11,473.0
21,306.9
11.0%

678,899.3
646,496.8
32,402.5
11,340.9
21,061.6
11.0%

62,299
28,137
2.21

63,236
28,873
2.19

64,151
29,614
2.17

65,044
30,360
2.14

65,912
31,110
2.12

66,756
31,865
2.09

67,576
32,625
2.07

68,370
33,390
2.05

69,137
34,159
2.02

69,878
34,934
2.00

70,592
35,714
1.98

71,277
36,499
1.95

71,933
37,290
1.93

72,559
38,086
1.91

73,155
38,888
1.88

73,720
39,695
1.86

74,598
40,665
1.83

75,435
41,638
1.81

76,229
42,615
1.79

76,981
43,596
1.77

77,688
44,581
1.74

78,351
45,571
1.72

78,967
46,565
1.70

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)

50.00

ACHIEVED ROE CALCULATION (without Decoupling)


Revenue
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

354,977.32

364,143.27

373,627.99

383,334.51

393,338.40

403,652.22

414,289.11

448,278.07

460,350.16

472,819.94

485,704.31

526,008.16

549,181.81

573,231.26

598,191.12

624,097.30

650,987.12

678,899.30

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

50.00

346,174
312,012.7
34,161.8
11,956.6
22,205.1
11.0%

354,977
320,614.4
34,362.9
12,027.0
22,335.9
11.0%

364,143
329,606.2
34,537.1
12,088.0
22,449.1
11.0%

373,628
338,944.3
34,683.7
12,139.3
22,544.4
11.0%

383,335
348,532.5
34,802.0
12,180.7
22,621.3
11.0%

393,338
358,447.1
34,891.3
12,212.0
22,679.3
11.0%

403,652
368,701.3
34,950.9
12,232.8
22,718.1
11.0%

414,289
379,309.0
34,980.1
12,243.1
22,737.1
11.0%

425,263
390,284.6
34,978.2
12,242.4
22,735.8
11.0%

436,587
401,643.2
34,944.3
12,230.5
22,713.8
11.0%

448,278
413,400.4
34,877.7
12,207.2
22,670.5
11.0%

460,350
425,572.6
34,777.5
12,172.1
22,605.4
11.0%

472,820
438,176.9
34,643.0
12,125.1
22,518.0
11.0%

485,704
451,230.9
34,473.4
12,065.7
22,407.7
11.0%

499,021
464,753.3
34,267.6
11,993.7
22,274.0
11.0%

503,677
469,652.0
34,025.0
11,908.8
22,116.3
11.0%

526,008
492,074.4
33,933.7
11,876.8
22,056.9
11.0%

549,182
515,384.5
33,797.3
11,829.0
21,968.2
11.0%

573,231
539,616.6
33,614.7
11,765.1
21,849.6
11.0%

598,191
564,806.2
33,385.0
11,684.7
21,700.2
11.0%

624,097
590,990.2
33,107.1
11,587.5
21,519.6
11.0%

650,987
618,207.2
32,779.9
11,473.0
21,306.9
11.0%

678,899
646,496.8
32,402.5
11,340.9
21,061.6
11.0%

1
6,769.7

1
6,905.1

1
7,043.2

1
7,184.1

1
7,327.7

1
7,474.3

1
7,623.8

1
7,776.3

1
7,931.8

1
8,090.4

1
8,252.2

1
8,417.3

1
8,585.6

1
8,757.3

1
8,932.5

6,769.7

6,905.1

7,043.2

7,184.1

7,327.7

7,474.3

7,623.8

7,776.3

7,931.8

8,090.4

8,252.2

8,417.3

8,585.6

8,757.3

8,932.5

5,077.3

5,178.8

5,282.4

5,388.0

5,495.8

5,605.7

5,717.8

5,832.2

5,948.8

6,067.8

6,189.2

6,313.0

6,439.2

6,568.0

6,699.4

11,847.0

12,083.9

12,325.6

12,572.1

12,823.5

13,080.0

13,341.6

13,608.5

13,880.6

14,158.2

14,441.4

14,730.2

15,024.8

15,325.3

15,631.8

6769.7

6905.1

7043.2

7184.1

7327.7

7474.3

7623.8

7776.3

7931.8

8090.4

8252.2

8417.3

8585.6

8757.3

8932.5

ENERGY EFFICIENCY CALCULATIONS


ENERGY EFFICIENCY PROGRAM COSTS
Escalation of Efficiency Costs
Base Case Revenue without EE ($MM)
Cost of EE Program % of revenue
Additional Energy Efficiency through Shareholder Incentive
Flag for Program Costs Active
Budget (Cost) of EE Program - Utility
Budget (Cost) of EE Program - Utility
Participant Cost of EE Program
Cost of EE Program - Participant

2%
331848
2%
0%
15

75%

Total Program Cost - Utility and Participant

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

ENERGY EFFICIENCY PROGRAM SAVINGS


Calculations of Cumulative MWh saved
Budget (Cost) of EE Program - Utility
Cost of Energy Efficiency $/MWh Year1
EE Cost Escalation
Levelized Cost of Energy Efficiency $/MWh
Annualization Factor to Convert Levelized Costs

20
$

1.00
20.00 $

1.02
20.40

1.04
20.81

1.06
21.22 $

1.08
21.65 $

1.10
22.08 $

1.13
22.52 $

1.15
22.97 $

1.17
23.43 $

1.20
23.90 $

1.22
24.38 $

1.24
24.87 $

1.27
25.36 $

1.29
25.87 $

1.32
26.39 $

1.35
26.92 $

1.37
27.46 $

1.40
28.00 $

1.43
28.56 $

1.46
29.14 $

1.49
29.72 $

1.52
30.31 $

1.55
30.92

12%

Saved MWh - assumed in next calendar year after cost incurred


Cumulative Saved MWh

41,992,074
41,992,074

41,992,074
83,984,149

41,992,074
125,976,223

41,992,074
167,968,298

41,992,074
209,960,372

41,992,074
251,952,446

41,992,074
293,944,521

41,992,074
335,936,595

41,992,074
377,928,669

41,992,074
419,920,744

41,992,074
461,912,818

41,992,074
503,904,893

41,992,074
545,896,967

41,992,074
587,889,041

41,992,074
629,881,116

587,889,041

545,896,967

503,904,893

461,912,818

419,920,744

377,928,669

335,936,595

Calculations of Cumulative MW saved


EE Capacity Savings (peak MW/average MW)
Cumulative Savings average MW
Cumulative Savings peak MW
Peak Load Forecast No EE (MW)
Growth Related Gen Capacity Saved
Peak Load Forecast for Capacity Purchases (MW)
Capex Escalation Rate
CapEx - No EE Case $MM
Percentage of Capital Expenditure that is Growth Related %
Growth Related Capex Saved %

200%
4,794
9,587

9,587
19,174

14,381
28,762

19,174
38,349

23,968
47,936

28,762
57,523

33,555
67,111

38,349
76,698

43,143
86,285

47,936
95,872

52,730
105,460

57,523
115,047

62,317
124,634

67,111
134,221

71,904
143,808

67,111
134,221

62,317
124,634

57,523
115,047

52,730
105,460

47,936
95,872

43,143
86,285

38,349
76,698

956,000

971,296

986,837

1,002,626

1,018,668

1,034,967

1,051,526

1,068,351

1,085,444

1,102,811

1,120,456

1,138,384

1,156,598

1,175,103

1,193,905

1,213,008

1,232,416

1,252,134

1,272,168

1,292,523

1,313,204

1,334,215

1,355,562

956,000

971,296

986,837

1,002,626

1,018,668

1,034,967

1,051,526

1,068,351

1,085,444

1,102,811

1,120,456

1,138,384

1,156,598

1,175,103

1,193,905

1,213,008

1,232,416

1,252,134

1,272,168

1,292,523

1,313,204

1,334,215

1,355,562

20,187.20

20,651.51

21,126.49

21,612.40

22,109.48

22,618.00

23,138.22

23,670.40

24,214.82

24,771.76

25,341.51

25,924.36

26,520.62

27,130.60

27,754.60

28,392.95

29,045.99

29,714.05

30,397.47

31,096.62

31,811.84

32,543.51

33,292.01

0%

0.023
19,733.33
32%
25%

Peak Load Forecast for Capital Expenditures (MW)


Non-Growth Related Capex
Other Growth-Related CapEx $MM
Growth Rate - No EE (MW)
Growth Rate with EE (MW)
Percentage of Growth Related Capex Saved
Other Capex - Electric $MM with EE

Matrix to Determine Life of EE Savings


Life of EE Projects
Flag for EE Projects Life

968,899

982,043

995,436

1,009,081

1,022,983

1,037,145

1,051,573

1,066,270

1,081,240

1,096,488

1,112,019

1,127,836

1,143,945

1,160,350

1,177,055

1,198,860

1,220,976

1,243,407

1,266,158

1,289,235

1,312,644

1,336,388

13,640
6,547
0%

13,954
6,698
15,296
12,899
16%

14,275
6,852
15,541
13,144
15%

14,603
7,009
15,789
13,393
15%

14,939
7,171
16,042
13,645
15%

15,282
7,336
16,299
13,902
15%

15,634
7,504
16,559
14,163
14%

15,994
7,677
16,824
14,428
14%

16,361
7,853
17,094
14,697
14%

16,738
8,034
17,367
14,970
14%

17,123
8,219
17,645
15,248
14%

17,516
8,408
17,927
15,530
13%

17,919
8,601
18,214
15,817
13%

18,331
8,799
18,506
16,109
13%

18,753
9,001
18,802
16,405
13%

19,184
9,209
19,102
16,706
13%

19,626
9,420
19,408
21,805
-12%

20,077
9,637
19,719
22,115
-12%

20,539
9,859
20,034
22,431
-12%

21,011
10,085
20,355
22,752
-12%

21,494
10,317
20,680
23,077
-12%

21,989
10,555
21,011
23,408
-11%

22,495
10,797
21,347
23,744
-11%

20,187.20

19,602.00

20,069.75

20,548.38

21,038.13

21,539.27

22,052.05

22,576.75

23,113.63

23,662.98

24,225.10

24,800.26

25,388.77

25,990.95

26,607.10

27,237.55

30,209.36

30,885.43

31,576.92

32,284.19

33,007.60

33,747.51

34,504.30

15
1
1

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Annual MWh Savings (savings assumed in next calendar year after cost incurred)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Cumulative MWh Savings
Savings Percentage on Peak
On-Peak Savings (MWh)
Off-Peak Savings (MWh)

956,000

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

1
1
1
-

1
1
1
1

1
1
1
1
1
-

1
1
1
1
1
1
-

1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

41,992,074
-

41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074

83,984,149

125,976,223

167,968,298

209,960,372

251,952,446

293,944,521

335,936,595

377,928,669

419,920,744

461,912,818

503,904,893

545,896,967

31,494,056
10,498,019

62,988,112
20,996,037

94,482,167
31,494,056

125,976,223
41,992,074

157,470,279
52,490,093

188,964,335
62,988,112

220,458,390
73,486,130

251,952,446
83,984,149

283,446,502
94,482,167

314,940,558
104,980,186

346,434,614
115,478,205

377,928,669
125,976,223

409,422,725
136,474,242

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
41,992,074
-

587,889,041

629,881,116

587,889,041

545,896,967

503,904,893

461,912,818

419,920,744

377,928,669

335,936,595

440,916,781
146,972,260

472,410,837
157,470,279

440,916,781
146,972,260

409,422,725
136,474,242

377,928,669
125,976,223

346,434,614
115,478,205

314,940,558
104,980,186

283,446,502
94,482,167

251,952,446
83,984,149

75%

Emissions Rates Calculations


Monetize Emissions Costs
Escalation Rate
$/Ton CO2
$/lb Nox
$/lb PM-10
$/lb Sox
$/lb CO
$/lb VOC

0
2%
$
$
$

$
$
$

Tons CO2 Saved


lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

Peak Emissions Rates


0.429
0.078
0.04
0.004
0.01
0.0006
On-Peak Savings
-

Off-Peak Period Savings


Tons CO2 per MWh
lbs NOx per MWh
lbs PM-10 per MWh
lbs SOx per MWh
lbs CO per MWh
lbs VOC per MWh

Emissions Rates
1.012
0.672
0.144
1.15
1.438
0.028

Tons CO2 Saved


lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

0
0
0

On-Peak Energy Savings (MWh)


Off-Peak Energy Savings (MWh)

Peak Period Savings


Tons CO2 per MWh
lbs NOx per MWh
lbs PM-10 per MWh
lbs SOx per MWh
lbs CO per MWh
lbs VOC per MWh

Off-Peak Savings
-

Annual Emissions Saved (Physical Units)


Tons CO2 Saved
lbs NOx Saved
lbs PM-10 Saved
lbs SOx Saved
lbs CO Saved
lbs VOC Saved

Annual Emissions Savings ($MM)


$MM CO2
$MM Nox
$MM PM-10
$MM Sox
$MM CO
$MM VOC
Total

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

$
$
$

0
0
0

0
0
0

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

31,494,056
10,498,019

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

13,510,950
2,456,536
1,259,762
125,976
314,941
18,896

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

10,623,995
7,054,668
1,511,715
12,072,721
15,096,151
293,945

24,134,945
9,511,205
2,771,477
12,198,698
15,411,091
312,841

48,269,889
19,022,410
5,542,954
24,397,395
30,822,183
625,682

72,404,834
28,533,615
8,314,431
36,596,093
46,233,274
938,523

96,539,779
38,044,819
11,085,908
48,794,790
61,644,365
1,251,364

120,674,724
47,556,024
13,857,385
60,993,488
77,055,456
1,564,205

144,809,668
57,067,229
16,628,861
73,192,186
92,466,548
1,877,046

168,944,613
66,578,434
19,400,338
85,390,883
107,877,639
2,189,887

193,079,558
76,089,639
22,171,815
97,589,581
123,288,730
2,502,728

217,214,503
85,600,844
24,943,292
109,788,278
138,699,822
2,815,569

241,349,447
95,112,048
27,714,769
121,986,976
154,110,913
3,128,410

265,484,392
104,623,253
30,486,246
134,185,674
169,522,004
3,441,250

289,619,337
114,134,458
33,257,723
146,384,371
184,933,096
3,754,091

313,754,282
123,645,663
36,029,200
158,583,069
200,344,187
4,066,932

337,889,226
133,156,868
38,800,677
170,781,766
215,755,278
4,379,773

362,024,171
142,668,073
41,572,154
182,980,464
231,166,369
4,692,614

337,889,226
133,156,868
38,800,677
170,781,766
215,755,278
4,379,773

313,754,282
123,645,663
36,029,200
158,583,069
200,344,187
4,066,932

289,619,337
114,134,458
33,257,723
146,384,371
184,933,096
3,754,091

265,484,392
104,623,253
30,486,246
134,185,674
169,522,004
3,441,250

241,349,447
95,112,048
27,714,769
121,986,976
154,110,913
3,128,410

217,214,503
85,600,844
24,943,292
109,788,278
138,699,822
2,815,569

193,079,558
76,089,639
22,171,815
97,589,581
123,288,730
2,502,728

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

185,878.4
126,831.8
59,046.58

190,726.0
130,376.9
60,349.08

195,675.0
134,017.4
61,657.63

200,728.3
137,756.0
62,972.37

205,889.1
141,595.6
64,293.44

211,160.4
145,539.4
65,620.99

10,956.9
18,701.6
29,658.4
1.99

11,424.3
19,026.3
30,450.6
1.98

11,902.4
19,349.3
31,251.6
1.97

12,391.5
19,670.3
32,061.8
1.96

12,891.9
19,989.5
32,881.4
1.96

13,403.8
20,306.7
33,710.5
1.95

0
0

1.00
1

1.00
1

1.00
1

1.00
1

29,388.16
29,438.2
29,388.16
50.00

29,898.51
29,948.5
29,898.51
50.00

30,910.52
30,960.5
30,910.52
50.00

31,412.06
31,462.1
31,412.06
50.00

31,910.52
31,960.5
31,910.52
50.00

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

1.00
1

50.00
30,405.98
30,456.0
30,405.98
50.00

45.00
-

1
1

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

101%
1.00
22,340,481
-

101%
1.00
22,496,865
-

101%
1.00
22,654,343
-

101%
1.00
22,812,923
-

101%
1.00
22,972,614
-

101%
1.00
23,133,422
-

22,340,481

22,496,865

22,654,343

22,812,923

22,972,614

23,133,422

1.01
22,340,481
22,340,481

1.01
22,496,865
22,496,865

1.01
22,654,343
22,654,343

1.01
22,812,923
22,812,923

1.01
22,972,614
22,972,614

1.01
23,133,422
23,133,422

22,340,481
105%
23,457,505

22,496,865
105%
23,621,708

22,654,343
105%
23,787,060

22,812,923
105%
23,953,569

22,972,614
105%
24,121,244

23,133,422
105%
24,290,093

GAS UTILITY CALCULATIONS


Gas Sales Forecasts - mcf
Peak Load Capacity (mcf/day)
Average Load Factor
Forecast Gas Sales (mcf) - yr 0
Forecast Gas Sales - Annual Increase
Rate Case Year
Forecast Gas Sales (NoEE) mcf - Adjusted per actuals
Actual Fuel Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Fuel Efficiency Reductions
Forecast Gas Sales mcf - Adjusted per actuals during rate case
Gas Sales Actual mcf
Gas Sales - mcf - year 0
Growth Rate - actual mcf
Actual Gas Sales (mcf) with EE
Actual Gas Sales (mcf) without EE

121,479
50%
22,185,185

100%
22,185,185
22,185,185
22,185,185
22,185,185

GAS UTILITY COST CALCULATIONS


Gas Purchases mcf
Actual Gas Sales (mcf) without EE
Average Marginal Losses - additional above sales mcf
Gas mcf Purchased / Produced without EE
Cost of Fuel (Purchased or Produced)
Average Cost of Fuel $/MMBtu
Escalation
MMBtu per mcf conversion factor
Forecast Average Cost of Fuel $/mcf
Sensitivity to Fuel Cost
Actual Average Cost of Fuel $/mcf

4.05
1.02

1.05

1.07

1.10

1.12

1.15

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

1031
0%

mcf Purchased / Produced - Without EE


Forecast Average Cost of Fuel $MM
Actual Average Cost of Fuel $MM
Fuel Efficiency Cost Savings - Forecasted
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Percent of EE Included in Forecast
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecast Fuel Savings ($MM)

23,457,505
100,148.6
100,148.6

23,621,708
103,169.1
103,169.1

23,787,060
106,280.8
106,280.8

23,953,569
109,486.4
109,486.4

24,121,244
112,788.6
112,788.6

24,290,093
116,190.4
116,190.4

10.67
8.47

10.22
8.11

9.69
7.69

9.19
7.29

8.72
6.92

8.93
7.08

100%
-

0
0

Fuel Efficiency Cost Savings - Actual


Sensitivity % variation in cost
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Fuel Savings ($MM)

0
0
-

0
0

0
0

0
0

0
0

0%
10.67
8.47
-

10.22
8.11
-

9.69
7.69
-

9.19
7.29
-

8.72
6.92
-

8.93
7.08
-

100,149
100,149

103,169
103,169

106,281
106,281

109,486
109,486

112,789
112,789

116,190
116,190

1.02
121,479
-

1.05
122,329
-

1.07
123,186
-

1.10
124,048
-

1.12
124,916
-

1.15
125,791
-

100,148.6
100,148.6

103,169.1
103,169.1

106,280.8
106,280.8

109,486.4
109,486.4

112,788.6
112,788.6

116,190.4
116,190.4

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

22,844

23,369

23,906

24,456

25,019

25,594

Total Gas Capital Expenditures ($MM)

22,844

23,369

23,906

24,456

25,019

25,594

1.02
10,859

1.05
11,109

1.07
11,364

1.10
11,625

1.12
11,893

1.15
12,166

547,843.6

571,212.6

595,119.1

619,575.4

644,594.2

670,188.5

3%

3%

3%

3%

3%

525,000.0
18,261.5
22,843.6
529,582.1

529,582.1
19,040.4
23,369.0
533,910.7

537,979.9
20,652.5
24,456.3
541,783.7

541,783.7
21,486.5
25,018.8
545,316.1

545,316.1
22,339.6
25,594.3
548,570.7

2%

2%

2%

2%

2%

525,000.0
10,956.9
22,843.6
536,886.7

536,886.7
11,424.3
23,369.0
548,831.5

548,831.5
11,902.4
23,906.5
560,835.6

560,835.6
12,391.5
24,456.3
572,900.4

572,900.4
12,891.9
25,018.8
585,027.3

585,027.3
13,403.8
25,594.3
597,217.8

2,556.6
2,556.6

2,665.7
5,222.3

2,777.2
7,999.5

2,891.4
10,890.8

3,008.1
13,898.9

3,127.5
17,026.5

547843.6
10,956.9
2,556.6
534,330.1

571212.6
22,381.1
5,222.3
543,609.2

595119.1
34,283.5
7,999.5
552,836.1

619575.4
46,675.0
10,890.8
562,009.5

644594.2
59,566.9
13,898.9
571,128.4

670188.5
72,970.7
17,026.5
580,191.3

267,165.1
267,165.1

271,804.6
271,804.6

276,418.0
276,418.0

281,004.8
281,004.8

285,564.2
285,564.2

290,095.7
290,095.7

Forecast Cost of Fuel with EE ($MM)


Actual Cost of Fuel with EE ($MM)
Cost of Capacity (production/LNG facilities, pipeline/storage capacity)
Average Cost of Purchased Gas Capacity or Production Cost $/mcf/day
Escalation
Forecasted Cost of Capacity ($/mcf/day )
Actual Cost for Sensitivity ($/mcf/day)
Peak Capacity Purchases with EE (mcf/day)
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

Forecast Cost of Fuel and Capacity with EE ($MM)


Actual Total Cost of Fuel and Capacity with EE ($MM)

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Gas O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Gas Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - Gas utility

10,614.71

525,000

30

525,000

533,910.7
19,837.3
23,906.5
537,979.9

50

525,000

2%

35.00%

Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve
Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt
Rate Base % Equity
Rate Base Debt
Rate Base Equity

3%

50%
50%

Municipal - Cooperative Utility Debt Cost


Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level

275.00
22,843.6
10,956.9
12,161.7

23,369.0
11,424.3
24,106.5

23,906.5
11,902.4
36,110.6

24,456.3
12,391.5
48,175.4

25,018.8
12,891.9
60,302.3

25,594.3
13,403.8
72,492.8

267,165.1
18,701.6

271,804.6
19,026.3

276,418.0
19,349.3

281,004.8
19,670.3

285,564.2
19,989.5

290,095.7
20,306.7

267,165.1
29,388.2

271,804.6
29,898.5

276,418.0
30,406.0

281,004.8
30,910.5

285,564.2
31,412.1

290,095.7
31,910.5

15,824.4

16,099.2

16,372.5

16,644.1

16,914.2

17,182.6

29,658.4
35,590.1

30,450.6
36,540.7

31,251.6
37,502.0

32,061.8
38,474.2

32,881.4
39,457.7

33,710.5
40,452.6

19,163.9

19,675.8

20,193.4

20,716.9

21,246.4

21,782.1

185,878.4

190,726.0

195,675.0

200,728.3

205,889.1

211,160.4

3,184.4
29,388.2

2,788.2
29,898.5

2,860.9
30,406.0

2,935.1
30,910.5

3,010.9
31,412.1

3,088.3
31,910.5

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Gas/Production Cost
Taxes
Annual Revenue Requirement

29,388.2
10,956.9
18,701.6
10,858.8
100,148.6
15,824.4
185,878.4

29,898.5
11,424.3
19,026.3
11,108.6
103,169.1
16,099.2
190,726.0

30,406.0
11,902.4
19,349.3
11,364.1
106,280.8
16,372.5
195,675.0

30,910.5
12,391.5
19,670.3
11,625.5
109,486.4
16,644.1
200,728.3

31,412.1
12,891.9
19,989.5
11,892.9
112,788.6
16,914.2
205,889.1

31,910.5
13,403.8
20,306.7
12,166.4
116,190.4
17,182.6
211,160.4

Check Revenue Requirement Achieves Annual ROE


Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

185,878.4
10,956.9
129,709.0
45,212.5
15,824.4
29,388.16
11.0%

190,726.0
11,424.3
133,304.1
45,997.7
16,099.2
29,898.51
11.0%

195,675.0
11,902.4
136,994.2
46,778.4
16,372.5
30,405.98
11.0%

200,728.3
12,391.5
140,782.2
47,554.7
16,644.1
30,910.52
11.0%

205,889.1
12,891.9
144,670.9
48,326.2
16,914.2
31,412.06
11.0%

211,160.4
13,403.8
148,663.5
49,093.1
17,182.6
31,910.52
11.0%

$ 185,878.38
$ 85,729.82
$ 100,148.56

$ 190,726.01
$ 87,556.87
$ 103,169.14

$ 195,675.00
$ 89,394.18
$ 106,280.82

$ 200,728.33
$ 91,241.97
$ 109,486.36

$ 205,889.06
$ 93,100.48
$ 112,788.58

$ 211,160.36
$ 94,969.97
$ 116,190.39

1
22,340,481
22,340,481

1
22,496,865
22,496,865

1
22,654,343
22,654,343

1
22,812,923
22,812,923

1
22,972,614
22,972,614

1
23,133,422
23,133,422

Annual Debt Cost


Debt Interest Rate
Debt
Interest on Debt

7%

Return on Rate Base - Investor-owned Utility


Utility Equity Return
Rate Base Equity
Return - Gas utility
Tax Rate
Tax - Gas utility

11.0%

35.00%

Earnings Target - Municipal and Cooperative Utilities


1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax

2
2.20

35%

Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

212,294.16
1.5%

35%

CALCULATION OF GAS RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement
Rate Case Year
Sales for Test Year (mcf)
Actual Gas Sales (mcf)
Input Year 0 rate $/therm
Non-fuel rate $/therm
Fuel rate $/therm
Total rate $/therm
therm per mcf
Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

$
$
$

0.93
0.4284
0.5004

$
$
$

0.3722
0.4348
0.8070

$
$
$

0.3775
0.4448
0.8223

$
$
$

0.3827
0.4550
0.8378

$
$
$

0.3879
0.4655
0.8534

$
$
$

0.3931
0.4762
0.8693

$
$
$

0.3982
0.4872
0.8853

10,310
100%
85,729.82
100,148.56

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset
Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Fuel Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

87,556.87
103,169.14

89,394.18
106,280.82

91,241.97
109,486.36

93,100.48
112,788.58

94,969.97
116,190.39

0%

Average Rate $/therm


Non-fuel Rate $/therm
Fuel Rate $/therm
Non-fuel Bal Acct $/therm
Fuel Bal Acct $/therm
Shareholder Incentive Acct $/therm
AnualTot lResourcNtS avings
12
10
8
6
4
2
0

$
$
$
$
$

0.372
0.435
-

$
$
$
$
$

0.377
0.445
-

$
$
$
$
$

0.383
0.455
-

$
$
$
$
$

0.388
0.466
-

$
$
$
$
$

0.393
0.476
-

$
$
$
$
$

0.40
0.49
-

AnualTot lResourcNtS avings


12
10

Average Rate $/therm

0.807

0.822

0.838

0.853

0.869

0.885

8
6
4
2
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue $MM

185,878.38

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

185,878.38
140,665.8
45,212.5
15,824.4
29,388.2
11.0%

190,726.0
144,728.3
45,997.7
16,099.2
29,898.5
11.0%

195,675.0
148,896.6
46,778.4
16,372.5
30,406.0
11.0%

200,728.3
153,173.7
47,554.7
16,644.1
30,910.5
11.0%

205,889.1
157,562.8
48,326.2
16,914.2
31,412.1
11.0%

211,160.4
162,067.3
49,093.1
17,182.6
31,910.5
11.0%

71,687
29,658
2.42

73,660
30,451
2.42

75,169
31,252
2.41

76,681
32,062
2.39

78,197
32,881
2.38

79,715
33,710
2.36

26,253.74

53,364.07

80,909.17

108,884.57

137,285.70

166,107.89

185,878

190,726

195,675

200,728

205,889

211,160

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)
ACHIEVED ROE CALCULATION (without Decoupling)
Revenue

50.00

190,726.01

195,675.00

200,728.33

205,889.06

211,160.36

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

186,961.1
127,914.5
59,046.58

190,931.2
130,620.1
60,311.07

195,091.7
133,509.9
61,581.80

199,438.7
136,579.9
62,858.89

203,964.2
139,821.7
64,142.51

208,401.9
142,969.2
65,432.78

10,956.9
18,701.6
29,658.4
1.99

11,417.2
19,014.3
30,431.5
1.98

11,888.2
19,325.3
31,213.5
1.97

12,370.0
19,634.6
32,004.6
1.96

12,863.0
19,942.0
32,805.0
1.96

13,367.4
20,247.7
33,615.0
1.95

0
0

1.00
1

1.00
1

1.00
1

1.00
1

29,388.16
29,438.2
29,388.16
50.00

29,879.59
29,929.6
29,879.59
50.00

30,854.32
30,904.3
30,854.32
50.00

31,337.48
31,387.5
31,337.48
50.00

31,817.75
31,867.8
31,817.75
50.00

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %
Flag for Rate Case Year - Investor Owned Utility, Cycle Method

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

1.00
1

50.00
30,368.33
30,418.3
30,368.33
50.00

45.00
-

1
1

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

101%
1.00
22,340,481
-

101%
1.00
22,496,865
85,150

101%
1.00
22,568,596
85,150

101%
1.00
22,640,830
85,150

101%
1.00
22,713,570
85,150

101%
1.00
22,786,818
85,150

22,340,481

85,150
22,411,714

85,150
22,483,446

85,150
22,555,680

85,150
22,628,419

85,150
22,701,668

1.01
22,340,481
22,340,481

1.01
22,411,714
22,496,865

1.01
22,483,446
22,654,343

1.01
22,555,680
22,812,923

1.01
22,628,419
22,972,614

1.01
22,701,668
23,133,422

22,340,481
105%
23,457,505

22,496,865
105%
23,621,708

22,654,343
105%
23,787,060

22,812,923
105%
23,953,569

22,972,614
105%
24,121,244

23,133,422
105%
24,290,093

GAS UTILITY CALCULATIONS


Gas Sales Forecasts - mcf
Peak Load Capacity (mcf/day)
Average Load Factor
Forecast Gas Sales (mcf) - yr 0
Forecast Gas Sales - Annual Increase
Rate Case Year
Forecast Gas Sales (NoEE) mcf - Adjusted per actuals
Actual Fuel Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Fuel Efficiency Reductions
Forecast Gas Sales mcf - Adjusted per actuals during rate case
Gas Sales Actual mcf
Gas Sales - mcf - year 0
Growth Rate - actual mcf
Actual Gas Sales (mcf) with EE
Actual Gas Sales (mcf) without EE

121,479
50%
22,185,185

100%
22,185,185
22,185,185
22,185,185
22,185,185

GAS UTILITY COST CALCULATIONS


Gas Purchases mcf
Actual Gas Sales (mcf) without EE
Average Marginal Losses - additional above sales mcf
Gas mcf Purchased / Produced without EE
Cost of Fuel (Purchased or Produced)
Average Cost of Fuel $/MMBtu
Escalation
MMBtu per mcf conversion factor
Forecast Average Cost of Fuel $/mcf
Sensitivity to Fuel Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency

4.05
1.02

1.05

1.07

1.10

1.12

1.15

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

1031
0%
0%

Actual Average Cost of Fuel $/mcf


mcf Purchased / Produced - Without EE
Forecast Average Cost of Fuel $MM
Actual Average Cost of Fuel $MM
Fuel Efficiency Cost Savings - Forecasted
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Percent of EE Included in Forecast
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecast Fuel Savings ($MM)

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

23,457,505
100,148.6
100,148.6

23,621,708
103,169.1
103,169.1

23,787,060
106,280.8
106,280.8

23,953,569
109,486.4
109,486.4

24,121,244
112,788.6
112,788.6

24,290,093
116,190.4
116,190.4

10.67
8.47

10.22
8.11

9.69
7.69

9.19
7.29

8.72
6.92

8.93
7.08

100%
-

63,862.70
21,287.57
673
178
851

127,725.40
42,575.13
1276
338
1,614

191,588.09
63,862.70
1815
480
2,295

255,450.79
85,150.26
2298
608
2,906

319,313.49
106,437.83
2938
777
3,716

10.67
8.47
-

10.22
8.11
63,862.7
21,287.6
673
178
851

9.69
7.69
127,725.4
42,575.1
1,276
338
1,614

9.19
7.29
191,588.1
63,862.7
1,815
480
2,295

8.72
6.92
255,450.8
85,150.3
2,298
608
2,906

8.93
7.08
319,313.5
106,437.8
2,938
777
3,716

100,149
100,149

102,318
102,318

104,667
104,667

107,192
107,192

109,883
109,883

112,475
112,475

1.02
121,479
-

1.05
122,329
-

1.07
123,186
-

1.10
124,048
-

1.12
124,916
-

1.15
125,791
-

100,148.6
100,148.6

102,318.2
102,318.2

104,667.2
104,667.2

107,191.5
107,191.5

109,882.9
109,882.9

112,474.7
112,474.7

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

22,844

23,016

23,548

24,092

24,649

25,219

Total Gas Capital Expenditures ($MM)

22,844

23,016

23,548

24,092

24,649

25,219

1.02
10,859

1.05
11,109

1.07
11,364

1.10
11,625

1.12
11,893

1.15
12,166

547,843.6

570,860.0

594,408.2

618,500.7

643,149.8

668,368.5

3%

3%

3%

3%

3%

525,000.0
18,261.5
22,843.6
529,582.1

529,582.1
19,028.7
23,016.4
533,569.9

537,304.5
20,616.7
24,092.4
540,780.2

540,780.2
21,438.3
24,649.1
543,991.1

543,991.1
22,278.9
25,218.7
546,930.8

2%

2%

2%

2%

2%

525,000.0
10,956.9
22,843.6
536,886.7

536,886.7
11,417.2
23,016.4
548,485.9

548,485.9
11,888.2
23,548.3
560,146.0

560,146.0
12,370.0
24,092.4
571,868.4

571,868.4
12,863.0
24,649.1
583,654.6

583,654.6
13,367.4
25,218.7
595,505.9

2,556.6
2,556.6

2,664.0
5,220.6

2,773.9
7,994.5

2,886.3
10,880.9

3,001.4
13,882.2

3,119.1
17,001.3

547843.6
10,956.9
2,556.6
534,330.1

570860.0
22,374.1
5,220.6
543,265.3

594408.2
34,262.2
7,994.5
552,151.5

618500.7
46,632.2
10,880.9
560,987.6

643149.8
59,495.2
13,882.2
569,772.3

668368.5
72,862.6
17,001.3
578,504.6

0
0
-

Fuel Efficiency Cost Savings - Actual


Sensitivity Variation % in Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Fuel Savings ($MM)

0%
0%

Forecast Cost of Fuel with EE ($MM)


Actual Cost of Fuel with EE ($MM)
Cost of Capacity (production/LNG facilities, pipeline/storage capacity)
Average Cost of Purchased Gas Capacity or Production Cost $/mcf/day
Escalation
Forecasted Cost of Capacity ($/mcf/day )
Actual Cost for Sensitivity ($/mcf/day)
Peak Capacity Purchases with EE (mcf/day)
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

Forecast Cost of Fuel and Capacity with EE ($MM)


Actual Total Cost of Fuel and Capacity with EE ($MM)

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Gas O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Gas Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - Gas utility

10,614.71

525,000

30

525,000

533,569.9
19,813.6
23,548.3
537,304.5

50

525,000

2%

35.00%

Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve
Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt

3%

50%

Rate Base % Equity


Rate Base Debt
Rate Base Equity

50%
267,165.1
267,165.1

271,632.6
271,632.6

276,075.7
276,075.7

280,493.8
280,493.8

284,886.2
284,886.2

289,252.3
289,252.3

22,843.6
10,956.9
12,161.7

23,016.4
11,417.2
23,760.9

23,548.3
11,888.2
35,421.0

24,092.4
12,370.0
47,143.4

24,649.1
12,863.0
58,929.6

25,218.7
13,367.4
70,780.9

267,165.1
18,701.6

271,632.6
19,014.3

276,075.7
19,325.3

280,493.8
19,634.6

284,886.2
19,942.0

289,252.3
20,247.7

267,165.1
29,388.2

271,632.6
29,879.6

276,075.7
30,368.3

280,493.8
30,854.3

284,886.2
31,337.5

289,252.3
31,817.8

15,824.4

16,089.0

16,352.2

16,613.9

16,874.0

17,132.6

29,658.4
35,590.1

30,431.5
36,517.8

31,213.5
37,456.2

32,004.6
38,405.5

32,805.0
39,366.0

33,615.0
40,338.0

19,163.9

19,663.4

20,168.7

20,679.9

21,197.1

21,720.5

186,961.1

190,931.2

195,091.7

199,438.7

203,964.2

208,401.9

3,184.4
29,388.2

2,804.4
29,879.6

2,864.0
30,368.3

2,926.4
30,854.3

2,991.6
31,337.5

3,059.5
31,817.8

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Gas/Production Cost
Taxes
Annual Revenue Requirement

29,388.2
10,956.9
18,701.6
10,858.8
1,082.7
100,148.6
15,824.4
186,961.1

29,879.6
11,417.2
19,014.3
11,108.6
1,104.4
102,318.2
16,089.0
190,931.2

30,368.3
11,888.2
19,325.3
11,364.1
1,126.4
104,667.2
16,352.2
195,091.7

30,854.3
12,370.0
19,634.6
11,625.5
1,149.0
107,191.5
16,613.9
199,438.7

31,337.5
12,863.0
19,942.0
11,892.9
1,171.9
109,882.9
16,874.0
203,964.2

31,817.8
13,367.4
20,247.7
12,166.4
1,195.4
112,474.7
17,132.6
208,401.9

Check Revenue Requirement Achieves Annual ROE


Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

186,961.1
10,956.9
130,791.7
45,212.5
15,824.4
29,388.16
11.0%

190,931.2
11,417.2
133,545.4
45,968.6
16,089.0
29,879.59
11.0%

195,091.7
11,888.2
136,483.0
46,720.5
16,352.2
30,368.33
11.0%

199,438.7
12,370.0
139,600.6
47,468.2
16,613.9
30,854.32
11.0%

203,964.2
12,863.0
142,889.7
48,211.5
16,874.0
31,337.48
11.0%

208,401.9
13,367.4
146,084.2
48,950.4
17,132.6
31,817.75
11.0%

$ 186,961.08
$ 86,812.52
$ 100,148.56

$ 190,931.20
$ 88,613.04
$ 102,318.16

$ 195,091.69
$ 90,424.52
$ 104,667.17

$ 199,438.75
$ 92,247.20
$ 107,191.55

$ 203,964.23
$ 94,081.34
$ 109,882.89

$ 208,401.94
$ 95,927.20
$ 112,474.74

1
22,340,481
22,340,481

1
22,411,714
22,411,714

1
22,483,446
22,483,446

1
22,555,680
22,555,680

1
22,628,419
22,628,419

1
22,701,668
22,701,668

Municipal - Cooperative Utility Debt Cost


Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level

275.00

Annual Debt Cost


Debt Interest Rate
Debt
Interest on Debt

7%

Return on Rate Base - Investor-owned Utility


Utility Equity Return
Rate Base Equity
Return - Gas utility
Tax Rate
Tax - Gas utility

11.0%

35.00%

Earnings Target - Municipal and Cooperative Utilities


1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax

2
2.20

35%

Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

212,294.16
1.5%

35%

CALCULATION OF GAS RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement
Rate Case Year
Sales for Test Year (mcf)
Actual Gas Sales (mcf)
Input Year 0 rate $/therm
Non-fuel rate $/therm
Fuel rate $/therm
Total rate $/therm
therm per mcf
Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

$
$
$

0.93
0.4313
0.4975

$
$
$

0.3769
0.4348
0.8117

$
$
$

0.3835
0.4428
0.8263

$
$
$

0.3901
0.4515
0.8416

$
$
$

0.3967
0.4609
0.8576

$
$
$

0.4033
0.4710
0.8743

$
$
$

0.4099
0.4805
0.8904

10,310
100%
86,812.52
100,148.56

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset

88,613.04
102,318.16

Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Fuel Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

90,424.52
104,667.17

92,247.20
107,191.55

94,081.34
109,882.89

95,927.20
112,474.74

1,082.70

1,104.35

1,126.44

1,148.97

1,171.95

1,195.39

0%
-

Average Rate $/therm


Non-fuel Rate $/therm
Fuel Rate $/therm

$
$

0.377
0.435

$
$

0.383
0.443

$
$

0.390
0.452

$
$

0.397
0.461

$
$

0.403
0.471

$
$

0.41
0.48

Non-fuel Bal Acct $/therm


Fuel Bal Acct $/therm
Shareholder Incentive Acct $/therm
AnualTot lResourcNtS avings
12
10

$
$
$
$

Average Rate $/therm

0.812

$
$
$
$

0.826

$
$
$
$

0.842

$
$
$
$

0.858

$
$
$
$

0.874

$
$
$
$

0.890

8
6
4
2
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue $MM

186,961.08

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

186,961.08
141,748.5
45,212.5
15,824.4
29,388.2
11.0%

190,931.2
144,962.6
45,968.6
16,089.0
29,879.6
11.0%

195,091.7
148,371.2
46,720.5
16,352.2
30,368.3
11.0%

199,438.7
151,970.6
47,468.2
16,613.9
30,854.3
11.0%

203,964.2
155,752.7
48,211.5
16,874.0
31,337.5
11.0%

208,401.9
159,451.6
48,950.4
17,132.6
31,817.8
11.0%

71,687
29,658
2.42

73,596
30,431
2.42

75,070
31,213
2.41

76,546
32,005
2.39

78,025
32,805
2.38

79,506
33,615
2.37

26,253.74

53,328.92

80,833.28

108,761.22

137,107.12

165,865.41

186,961

190,931

195,092

199,439

203,964

208,402

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)
ACHIEVED ROE CALCULATION (without Decoupling)
Revenue

50.00

190,931.20

195,091.69

199,438.75

203,964.23

208,401.94

Year
Year Index
CALCULATE RATE ADJUSTMENT YEAR
Utility Type (1=investor owned; 2=municipal / coop)

2007
1

2008
2

2009
3

2010
4

2011
5

2012
6

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

0
0
2007
1

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

11.0%
11.0%
0.0%

0
0

0
0

0
0

0
0

0
0

0
0

186,961.1
127,914.5
59,046.58

190,931.2
130,620.1
60,311.07

195,091.7
133,509.9
61,581.80

199,438.7
136,579.9
62,858.89

203,964.2
139,821.7
64,142.51

208,401.9
142,969.2
65,432.78

10,956.9
18,701.6
29,658.4
1.99

11,417.2
19,014.3
30,431.5
1.98

11,888.2
19,325.3
31,213.5
1.97

12,370.0
19,634.6
32,004.6
1.96

12,863.0
19,942.0
32,805.0
1.96

13,367.4
20,247.7
33,615.0
1.95

0
0

1.00
1

1.00
1

1.00
1

1.00
1

29,388.16
29,438.2
29,388.16
50.00

29,879.59
29,929.6
29,879.59
50.00

30,854.32
30,904.3
30,854.32
50.00

31,337.48
31,387.5
31,337.48
50.00

31,817.75
31,867.8
31,817.75
50.00

Investor Owned Utility Flag Calculations


Switch for Cycle or Earnings Band Rate Setting (1=cycle; 0=band)
Years between cases
Next rate case year
Band on Earnings %
Flag for Rate Case Year - Investor Owned Utility, Cycle Method

1
1
2007
2%

Flag for Year of Large Capex Spend


Flag for Required Rate Case based on Capex
Adjusted next rate case year
Adjusted Flag for Rate Case Year - Investor Owned Utility, Cycle Method

2007

Achieved ROE without Decoupling Effect


Target ROE
Year on Year Difference
Hurdle Band for Rate Base Year
Flag for Rate Case Year - Investor Owned Utility, Band Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00%

Public Utility Flag Calculations


Switch for Earnings Ratio or Cash Position (1=earnings ratio, 2=cash position)
Debt Coverage Ratio Method
Revenue - without decoupling
Less: operating expenses
Pre-Tax Cash Available for Debt Service
Debt Service Assumption
Depreciation = debt principal repaid
Interest
Total Debt Service
Debt Service Coverage Ratio
Hurdle
Rate Case Flag for Debt Coverage Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

2.00

Cash Position Method


Beginning Cash Position
Cash Earned
Beginning Cash Balance
Cash Distributed
End of Year Cash Position
Minimum Cash Position Threshhold
Amount Short
Rate Case Flag for Cash Position Method
Adjusted Flag for Rate Case Year - Investor Owned Utility, Band Method

1.00
1

50.00
30,368.33
30,418.3
30,368.33
50.00

45.00
-

1
1

0
0

0
0

0
0

0
0

0
0

Flag for Public Utility Rate Case Year

Rate Case Flag Assumption Active in Model

101%
1.00
22,340,481
-

101%
1.00
22,496,865
85,150

101%
1.00
22,568,596
85,150

101%
1.00
22,640,830
85,150

101%
1.00
22,713,570
85,150

101%
1.00
22,786,818
85,150

22,340,481

85,150
22,411,714

85,150
22,483,446

85,150
22,555,680

85,150
22,628,419

85,150
22,701,668

1.01
22,340,481
22,340,481

1.01
22,411,714
22,496,865

1.01
22,483,446
22,654,343

1.01
22,555,680
22,812,923

1.01
22,628,419
22,972,614

1.01
22,701,668
23,133,422

22,340,481
105%
23,457,505

22,496,865
105%
23,621,708

22,654,343
105%
23,787,060

22,812,923
105%
23,953,569

22,972,614
105%
24,121,244

23,133,422
105%
24,290,093

GAS UTILITY CALCULATIONS


Gas Sales Forecasts - mcf
Peak Load Capacity (mcf/day)
Average Load Factor
Forecast Gas Sales (mcf) - yr 0
Forecast Gas Sales - Annual Increase
Rate Case Year
Forecast Gas Sales (NoEE) mcf - Adjusted per actuals
Actual Fuel Efficiency Reductions
Percent of EE to Include in Forecast
Forecasted Fuel Efficiency Reductions
Forecast Gas Sales mcf - Adjusted per actuals during rate case
Gas Sales Actual mcf
Gas Sales - mcf - year 0
Growth Rate - actual mcf
Actual Gas Sales (mcf) with EE
Actual Gas Sales (mcf) without EE

121,479
50%
22,185,185

100%
22,185,185
22,185,185
22,185,185
22,185,185

GAS UTILITY COST CALCULATIONS


Gas Purchases mcf
Actual Gas Sales (mcf) without EE
Average Marginal Losses - additional above sales mcf
Gas mcf Purchased / Produced without EE
Cost of Fuel (Purchased or Produced)
Average Cost of Fuel $/MMBtu
Escalation
MMBtu per mcf conversion factor
Forecast Average Cost of Fuel $/mcf
Sensitivity to Fuel Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency

4.05
1.02

1.05

1.07

1.10

1.12

1.15

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

1031
0%
0%

Actual Average Cost of Fuel $/mcf


mcf Purchased / Produced - Without EE
Forecast Average Cost of Fuel $MM
Actual Average Cost of Fuel $MM
Fuel Efficiency Cost Savings - Forecasted
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Percent of EE Included in Forecast
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Forecast Fuel Savings ($MM)

4,269.36

4,367.56

4,468.01

4,570.77

4,675.90

4,783.45

23,457,505
100,148.6
100,148.6

23,621,708
103,169.1
103,169.1

23,787,060
106,280.8
106,280.8

23,953,569
109,486.4
109,486.4

24,121,244
112,788.6
112,788.6

24,290,093
116,190.4
116,190.4

10.67
8.47

10.22
8.11

9.69
7.69

9.19
7.29

8.72
6.92

8.93
7.08

100%
-

63,862.70
21,287.57
673
178
851

127,725.40
42,575.13
1276
338
1,614

191,588.09
63,862.70
1815
480
2,295

255,450.79
85,150.26
2298
608
2,906

319,313.49
106,437.83
2938
777
3,716

10.67
8.47
-

10.22
8.11
63,862.7
21,287.6
673
178
851

9.69
7.69
127,725.4
42,575.1
1,276
338
1,614

9.19
7.29
191,588.1
63,862.7
1,815
480
2,295

8.72
6.92
255,450.8
85,150.3
2,298
608
2,906

8.93
7.08
319,313.5
106,437.8
2,938
777
3,716

100,149
100,149

102,318
102,318

104,667
104,667

107,192
107,192

109,883
109,883

112,475
112,475

1.02
121,479
-

1.05
122,329
-

1.07
123,186
-

1.10
124,048
-

1.12
124,916
-

1.15
125,791
-

100,148.6
100,148.6

102,318.2
102,318.2

104,667.2
104,667.2

107,191.5
107,191.5

109,882.9
109,882.9

112,474.7
112,474.7

Capital Expenditures
Line Item Capacity Capex $MM
Capital Expenditure (Growth and Other) $MM

22,844

23,016

23,548

24,092

24,649

25,219

Total Gas Capital Expenditures ($MM)

22,844

23,016

23,548

24,092

24,649

25,219

1.02
10,859

1.05
11,109

1.07
11,364

1.10
11,625

1.12
11,893

1.15
12,166

547,843.6

570,860.0

594,408.2

618,500.7

643,149.8

668,368.5

3%

3%

3%

3%

3%

525,000.0
18,261.5
22,843.6
529,582.1

529,582.1
19,028.7
23,016.4
533,569.9

537,304.5
20,616.7
24,092.4
540,780.2

540,780.2
21,438.3
24,649.1
543,991.1

543,991.1
22,278.9
25,218.7
546,930.8

2%

2%

2%

2%

2%

525,000.0
10,956.9
22,843.6
536,886.7

536,886.7
11,417.2
23,016.4
548,485.9

548,485.9
11,888.2
23,548.3
560,146.0

560,146.0
12,370.0
24,092.4
571,868.4

571,868.4
12,863.0
24,649.1
583,654.6

583,654.6
13,367.4
25,218.7
595,505.9

2,556.6
2,556.6

2,664.0
5,220.6

2,773.9
7,994.5

2,886.3
10,880.9

3,001.4
13,882.2

3,119.1
17,001.3

547843.6
10,956.9
2,556.6
534,330.1

570860.0
22,374.1
5,220.6
543,265.3

594408.2
34,262.2
7,994.5
552,151.5

618500.7
46,632.2
10,880.9
560,987.6

643149.8
59,495.2
13,882.2
569,772.3

668368.5
72,862.6
17,001.3
578,504.6

0
0
-

Fuel Efficiency Cost Savings - Actual


Sensitivity Variation % in Cost
% Cost Decrease due to Demand Reduction from Energy Efficiency
Peak Period ($/MMBtu)
Off-Peak Period ($/MMBtu)
Peak Period EE Savings (mcf)
Off-Peak Period EE Savings (mcf)
Peak Period Savings ($MM)
Off-Peak Period Savings ($MM)
Total Actual Fuel Savings ($MM)

0%
0%

Forecast Cost of Fuel with EE ($MM)


Actual Cost of Fuel with EE ($MM)
Cost of Capacity (production/LNG facilities, pipeline/storage capacity)
Average Cost of Purchased Gas Capacity or Production Cost $/mcf/day
Escalation
Forecasted Cost of Capacity ($/mcf/day )
Actual Cost for Sensitivity ($/mcf/day)
Peak Capacity Purchases with EE (mcf/day)
Forecasted Cost of Capacity ($MM)
Actual Cost for Sensitivity ($MM)

0%

Forecast Cost of Fuel and Capacity with EE ($MM)


Actual Total Cost of Fuel and Capacity with EE ($MM)

O&M Expenditures
O&M - yr1
O&M Cost Escalation
Total Gas O&M Expenditures
RATE BASE AND REVENUE REQUIREMENTS
Deferred Taxes - Gas Utility
Basis for Depreciation
Deferred Tax
Tax life (years)
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Beginning Tax Basis
Tax Depreciation Schedule (assumed average straight line, vs MACRS)
Capex
Ending Tax Basis
Book life (years)
Book Depreciation
Beginning Book Basis
Book Depreciation
CapEx
Ending Book Basis
Tax Rate
Annual Deferred Tax
Accumulated Deferred Income Tax (ADIT) - Gas utility

10,614.71

525,000

30

525,000

533,569.9
19,813.6
23,548.3
537,304.5

50

525,000

2%

35.00%

Rate Base
Rate Base Assets
Depreciation Reserve
Deferred Tax Reserve
Rate Base
Investor-owned Utility - Interest and Returns
Rate Base % Debt

3%

50%

Rate Base % Equity


Rate Base Debt
Rate Base Equity

50%
267,165.1
267,165.1

271,632.6
271,632.6

276,075.7
276,075.7

280,493.8
280,493.8

284,886.2
284,886.2

289,252.3
289,252.3

22,843.6
10,956.9
12,161.7

23,016.4
11,417.2
23,760.9

23,548.3
11,888.2
35,421.0

24,092.4
12,370.0
47,143.4

24,649.1
12,863.0
58,929.6

25,218.7
13,367.4
70,780.9

267,165.1
18,701.6

271,632.6
19,014.3

276,075.7
19,325.3

280,493.8
19,634.6

284,886.2
19,942.0

289,252.3
20,247.7

267,165.1
29,388.2

271,632.6
29,879.6

276,075.7
30,368.3

280,493.8
30,854.3

284,886.2
31,337.5

289,252.3
31,817.8

15,824.4

16,089.0

16,352.2

16,613.9

16,874.0

17,132.6

29,658.4
35,590.1

30,431.5
36,517.8

31,213.5
37,456.2

32,004.6
38,405.5

32,805.0
39,366.0

33,615.0
40,338.0

19,163.9

19,663.4

20,168.7

20,679.9

21,197.1

21,720.5

186,961.1

190,931.2

195,091.7

199,438.7

203,964.2

208,401.9

3,184.4
29,388.2

2,804.4
29,879.6

2,864.0
30,368.3

2,926.4
30,854.3

2,991.6
31,337.5

3,059.5
31,817.8

Annual Revenue Requirement


Return on Rate Base or Public Utility PiLoT/cash contribution
Depreciation or Debt Principal
Interest on Debt
O&M
Utility Program Costs for EE
Purchased Gas/Production Cost
Taxes
Annual Revenue Requirement

29,388.2
10,956.9
18,701.6
10,858.8
1,082.7
100,148.6
15,824.4
186,961.1

29,879.6
11,417.2
19,014.3
11,108.6
1,104.4
102,318.2
16,089.0
190,931.2

30,368.3
11,888.2
19,325.3
11,364.1
1,126.4
104,667.2
16,352.2
195,091.7

30,854.3
12,370.0
19,634.6
11,625.5
1,149.0
107,191.5
16,613.9
199,438.7

31,337.5
12,863.0
19,942.0
11,892.9
1,171.9
109,882.9
16,874.0
203,964.2

31,817.8
13,367.4
20,247.7
12,166.4
1,195.4
112,474.7
17,132.6
208,401.9

Check Revenue Requirement Achieves Annual ROE


Revenue Requirement
Depreciation
Operating Expenses
Pre-Tax Earnings
Tax
After Tax Earnings
ROE

186,961.1
10,956.9
130,791.7
45,212.5
15,824.4
29,388.16
11.0%

190,931.2
11,417.2
133,545.4
45,968.6
16,089.0
29,879.59
11.0%

195,091.7
11,888.2
136,483.0
46,720.5
16,352.2
30,368.33
11.0%

199,438.7
12,370.0
139,600.6
47,468.2
16,613.9
30,854.32
11.0%

203,964.2
12,863.0
142,889.7
48,211.5
16,874.0
31,337.48
11.0%

208,401.9
13,367.4
146,084.2
48,950.4
17,132.6
31,817.75
11.0%

$ 186,961.08
$ 86,812.52
$ 100,148.56

$ 190,931.20
$ 88,613.04
$ 102,318.16

$ 195,091.69
$ 90,424.52
$ 104,667.17

$ 199,438.75
$ 92,247.20
$ 107,191.55

$ 203,964.23
$ 94,081.34
$ 109,882.89

$ 208,401.94
$ 95,927.20
$ 112,474.74

1
22,340,481
22,340,481

1
22,411,714
22,411,714

1
22,483,446
22,483,446

1
22,555,680
22,555,680

1
22,628,419
22,628,419

1
22,701,668
22,701,668

Municipal - Cooperative Utility Debt Cost


Initial Debt Level
Capital Expenditures
Principal Repayment (= Depreciation)
Debt Level

275.00

Annual Debt Cost


Debt Interest Rate
Debt
Interest on Debt

7%

Return on Rate Base - Investor-owned Utility


Utility Equity Return
Rate Base Equity
Return - Gas utility
Tax Rate
Tax - Gas utility

11.0%

35.00%

Earnings Target - Municipal and Cooperative Utilities


1=Debt Service Coverage Ratio, 2=Cash Position
Debt Service Coverage Target
Debt Service
Revenue to Cover Debt Service Ratio
Tax rate
Tax

2
2.20

35%

Revenue
Percent of Revenue for Payment in Lieu of Tax
Cash Contribution Target
Return on Ratebase/Public Utility Payment in Lieu of Tax (PiLoT)

212,294.16
1.5%

35%

CALCULATION OF GAS RATES


Revenue Requirement
Non-fuel Revenue Requirement
Fuel Revenue Requirement
Rate Case Year
Sales for Test Year (mcf)
Actual Gas Sales (mcf)
Input Year 0 rate $/therm
Non-fuel rate $/therm
Fuel rate $/therm
Total rate $/therm
therm per mcf
Balancing Accounts
Decoupling
Actual Non-fuel Revenue Collection
Actual Fuel Revenue Collection

$
$
$

0.93
0.4313
0.4975

$
$
$

0.3769
0.4348
0.8117

$
$
$

0.3835
0.4428
0.8263

$
$
$

0.3901
0.4515
0.8416

$
$
$

0.3967
0.4609
0.8576

$
$
$

0.4033
0.4710
0.8743

$
$
$

0.4099
0.4805
0.8904

10,310
0
86,812.52
100,148.56

Non-Fuel RR Balancing Account


Fuel RR Balancing Account
Decoupling Regulatory Asset

88,613.04
102,318.16

Shareholder Incentive
Switch for Shareholder Incentive (always FALSE for no EE Case)
Program Cost for Fuel Efficiency
Percent of Program Cost for Shareholder Incentive
Shareholder Incentive Regulatory Asset

90,424.52
104,667.17

92,247.20
107,191.55

94,081.34
109,882.89

95,927.20
112,474.74

1,082.70

1,104.35

1,126.44

1,148.97

1,171.95

1,195.39

0
-

Average Rate $/therm


Non-fuel Rate $/therm
Fuel Rate $/therm

$
$

0.377
0.435

$
$

0.383
0.443

$
$

0.390
0.452

$
$

0.397
0.461

$
$

0.403
0.471

$
$

0.41
0.48

Non-fuel Bal Acct $/therm


Fuel Bal Acct $/therm
Shareholder Incentive Acct $/therm
AnualTot lResourcNtS avings
12
10

$
$
$
$

Average Rate $/therm

0.812

$
$
$
$

0.826

$
$
$
$

0.842

$
$
$
$

0.858

$
$
$
$

0.874

$
$
$
$

0.890

8
6
4
2
0
y
q
tu
fe
n
ris
a
p
m
o
!C
F
E
R
#

Base Rate Revenue $MM

186,961.08

ACHIEVED ROE CALCULATION (with Decoupling)


Revenue
Balancing Account / Regulatory Asset
Operating Expenses, incl Depreciation (Actual Costs)
Pre-Tax Earnings
Tax
Earnings
ROE

186,961.08
141,748.5
45,212.5
15,824.4
29,388.2
11.0%

190,931.2
144,962.6
45,968.6
16,089.0
29,879.6
11.0%

195,091.7
148,371.2
46,720.5
16,352.2
30,368.3
11.0%

199,438.7
151,970.6
47,468.2
16,613.9
30,854.3
11.0%

203,964.2
155,752.7
48,211.5
16,874.0
31,337.5
11.0%

208,401.9
159,451.6
48,950.4
17,132.6
31,817.8
11.0%

71,687
29,658
2.42

73,596
30,431
2.42

75,070
31,213
2.41

76,546
32,005
2.39

78,025
32,805
2.38

79,506
33,615
2.37

26,253.74

53,328.92

80,833.28

108,761.22

137,107.12

165,865.41

186,961

190,931

195,092

199,439

203,964

208,402

35%

Achieved Debt Coverage Ratio Calculation (with Decoupling)


Cash Flow Available for Debt Service
Debt
Debt Coverage Ratio
Achieved Cash Position (with Decoupling)
Cash Position (End of Year)
ACHIEVED ROE CALCULATION (without Decoupling)
Revenue

50.00

190,931.20

195,091.69

199,438.75

203,964.23

208,401.94

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