Yahoo! Finance
Summary
Today, the British Columbia Utilities Commission (BCUC) completed Stage 2 of its Generic Cost of Capital proceeding, which set the allowed return for public utilities regulated by the BCUC.
The BCUC is responsible for ensuring shareholders of public utilities are afforded a reasonable opportunity to earn a fair return on their invested capital. In determining a fair return, the BCUC considered each utility’s business risks compared to the benchmark utility, FortisBC Energy Inc. (FortisBC), and any changes since the last cost of capital review.
Based on these assessments, the BCUC approved the following return on equity and equity components, which together form the basis for each utility’s allowed return:
|
Type
|
Utility
|
Equity Component
|
Return on Equity
|
|
Gas
|
PNG(NE) Fort St. John/Dawson Creek
|
46%
|
10.40%
|
|
PNG-West
PNG(NE) Tumbler Ridge
|
52%
|
10.40%
|
|
Electric
|
Boralex
Kyuquot Power Ltd.
Nelson Hydro
|
50%
|
10.40%
|
|
Thermal Energy System (TES)
|
Creative Energy Mount Pleasant
Creative Energy South Downtown District Cooling
Creative Energy South Downtown Heating
Corix Burnaby Mountain District Energy
Corix Dockside Green Energy
Corix UBC Neighbourhood District Energy
River District Energy
|
49%
|
10.40%
|
|
Creative Energy Core Steam System
|
51%
|
10.40%
|
|
TES Default
|
49%
|
10.40%
|
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