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Authorized Return on Rate Base

Note 1: Where there is little or no water utility net investment rate base upon which to calculate a "reasonable rate of return", a net operating income based on “percent of operation and maintenance expenses” (% of O&M) or "adequate times debt service coverage" (Xdebt) or "adequate times interest coverage" (Xinterest) may instead be used to provide funds for fluctuations in expenses and/or annual debt obligations. Therefore, % of O&M, Xdebt or Xinterest is reported in the authorized return column.

Note 2: For some utilities where there is not an authorized rate of return or net income based on the methods explained in Note 1, the authorized return is reflected as “none”.

Note 3: Utility No. 6680 Wisconsin Power and Light Company (Alliant) serves the Ripon community. Utility No. 6650 Wisconsin Gas Company serves the Mequon community.

If you have any questions or comments, please contact David Prochaska at David.Prochaska@psc.state.wi.us or 608.266.5739.


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