220 CMR, § 31.03
Current through Register 1538, January 3, 2025
The formula used to establish the allowed return on equity shall be as follows:
Allowed return on equity = Index + 3.5%, if the utility has a common equity ratio of 25% or lower;
Allowed return on equity = Index + 3.0%, if the utility has a common equity ratio in excess of 25% but below 75%;
Allowed return on equity = Index + 2.5%, if the utility has a common equity ratio of 75% or greater;
Except where the Department may otherwise determine in specific cases, the allowed return on equity may not exceed 14.5% or be below 11.5%.
220 CMR, § 31.03