Question
Calculate the revenue requirement for a utility under rate of return regulation, using the following information:...
Calculate the revenue requirement for a utility under rate of return regulation, using the following information:
Rate base (B): $500
Cost of equity: 10%
Percentage financed by equity: 40%
Tax rate: 20%
Rate of return: 10%
Expenses: $100
Depreciation: $50
Homework Answers
Answer #1
The formula for Calculating revenue requirement for a utility under rate of return regulation is
R = B*r+E+d+T
The Computation are as follows:
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