How To Assure Returns For New Transmission Investment

Law360, New York (September 5, 2013, 1:28 PM EDT) -- In his initial decision in Coakley v. Bangor Hydro-Electric Co.,[1] Presiding Administrative Law Judge Michael J. Cianci Jr. finds the New England transmission owners’ (NETOs) current base return on equity (ROE) of 11.14 percent unjust and unreasonable. Relying on the Federal Energy Regulatory Commission’s traditional discounted cash flow (DCF) analysis prepared on behalf of the NETOs, Cianci adopts the NETOs’ zones of reasonableness for the locked-in refund period of from 6.0 percent to 15.2 percent and prospectively of from 6.1 percent to 13.2 percent.[2]

Accordingly, he...
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