REGULATORY ENVIRONMENT (Tables)

12 Months Ended

Dec. 31, 2023

Public Utilities, General Disclosures

The final order reflected the following:


2023 base rate increase
Electric	$	120.5	million	/	9.8%
Gas	$	26.4	million	/	7.1%
ROE	9.8%
Common equity component average on a financial basis	53.0%

2020 and 2021 rates

Public Utilities, General Disclosures

Schedule of regulatory decisions

The final order reflected the following:


2020 Effective rate increase
Electric (1) (2)	$	15.8	million	/	1.6%
Gas (3)	$	4.3	million	/	1.4%
ROE	10.0%
Common equity component average on a financial basis	52.5%

(1) Amount is net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impacts. The rate order reflected the majority of the unprotected deferred tax benefits from the Tax Legislation being amortized over two years. Approximately $11 million of tax benefits were amortized in 2020 and approximately $39 million were amortized in 2021. Unprotected deferred tax benefits by their nature are eligible to be returned to customers in a manner and timeline determined to be appropriate by the PSCW.

(2) The rate order was net of $21 million of refunds related to our 2018 earnings sharing mechanism. These refunds were made to customers evenly over two years, with half returned in 2020 and the remainder returned in 2021.

(3) Amount is net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impacts. The rate order reflected all of the unprotected deferred tax benefits from the Tax Legislation being amortized evenly over four years, which resulted in approximately $5 million of previously deferred tax benefits being amortized each year. Unprotected deferred tax benefits by their nature are eligible to be returned to customers in a manner and timeline determined to be appropriate by the PSCW.