Determination of Pretax Return

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Sec. 13. (a) For purposes of calculating the TDSIC costs of a public utility, the commission shall determine an appropriate pretax return for the public utility. In determining the appropriate pretax return, the commission may consider the following factors:

(1) The current state and federal income tax rates.

(2) The public utility's capital structure.

(3) The actual cost rates for the public utility's long term debt and preferred stock.

(4) The public utility's cost of common equity determined by the commission in the public utility's most recent general rate proceeding.

(5) Other information that the commission determines is necessary.

(b) The commission shall adjust a public utility's authorized return for purposes of IC 8-1-2-42(d)(3) or IC 8-1-2-42(g)(3) to reflect incremental earnings from an approved TDSIC.

As added by P.L.133-2013, SEC.5.


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