This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
R –3492-2002 - Phase 2
RATE BASE RATE OF RETURN
Original: 2003-08-14
HQD-7, Document 1
Page 1 of 3
This translation is not an official version of the Hydro Quebec
evidence. The document was translated by ZE PowerGroup Inc. on
behalf of AQCIE/CIFQ/FCEI and is provided as a courtesy.
R –3492-2002 - Phase 2
1
Table 1 provides the following rate base rate of return, for the historic years 2001
2
and 2002, for the 2003 base year and the 2004 projected year that result from the
3
Régie’s decision and the modifications and corrections the Régie requested.
Rate of Return Based on Distributor Pricing
Historical Year
2001
2002
Base Year
Projected
Year
2003
2004
Weighted debt rate
6.498%
5.801%
5.341%
5.112%
Average debt rate
9.997%
8.925%
8.127%
7.865%
65%
65%
65%
65%
Shareholder’s equity weighted
rate
3.292%
3.292%
3.049%
3.049%
Authorized return on equity
9.405%
9.405%
8.712%
8712%
Authorized capital structure
35%
35%
35%
35%
9.790%
9.093%
8.390%
8.161%
Authorized capital structure
Return on the Rate base
4
5
On this basis, the Distributor requests that the Régie approves a rate of return of
6
8,161% on the rate base for the 2004 projected year.
Original: 2003-08-14
HQD-7, Document 1
Page 3 of 3