Return on Equity Clause Samples
The Return on Equity clause defines how the profitability of a company, relative to shareholders' equity, is measured and reported. Typically, it outlines the formula for calculating return on equity (ROE), such as dividing net income by average shareholders' equity over a specified period, and may specify the frequency of reporting or benchmarks for performance. This clause ensures transparency in financial performance and provides a standardized method for evaluating how effectively a company is using its equity to generate profits, which is crucial for investors and stakeholders in assessing management efficiency and making informed decisions.
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Return on Equity. (a) The return on equity ("▇▇▇") used in the Formula Rate to accrue AFUDC prior to the Commercial Operation Date and to calculate the weighted cost of capital for the Carrying Charges on the regulatory asset established pursuant to Section 8.1.2(e)(iii) shall be twelve and fifty-six one-hundredth percent (12.56%).
(b) Upon Commercial Operation, the ▇▇▇ shall be adjusted to equal (i) the Base ▇▇▇, plus (ii) an adder equal to the lesser of (A) one hundred forty-two (142) basis points and (B) an amount that would not cause the total ▇▇▇ to exceed the applicable zone of reasonableness for such Regional Transmission Service, as established in the most 1014917.31-D.C. Server 1A - MSW recent rate order for such service. In the event the Base ▇▇▇ for Regional Transmission Service using the transmission facilities of Northeast Utilities or NSTAR is no longer based upon a single, regional Base ▇▇▇, Owner shall make a filing under Section 205 of the Federal Power Act to establish the ▇▇▇ applicable to service under this Agreement that includes the adder set forth above; provided, however, that Owner shall delay such FERC filing for a period not less than thirty (30) days, but not to exceed sixty (60) days, to provide time for the Parties to negotiate the ▇▇▇ to be applicable to service under this Agreement. The Parties acknowledge and agree that Purchaser shall have the right to challenge any FERC filing made under Section 205 of the Federal Power Act with respect to a replacement for the Base ▇▇▇, unless Purchaser shall have agreed in writing to the ▇▇▇ set forth in such filing.
Return on Equity. Income from operations after taxes, divided by average equity, on a consolidated basis shall not be less than twelve percent (12%).
Return on Equity. Return on Equity" shall mean six months GAAP net income plus (minus) certain Non Cash Items divided by average Tangible Net Worth, annualized.
Return on Equity. The Borrower shall not permit the Return on Equity of Borrower to be less than eight percent (8.0%), calculated at the end of each fiscal quarter.”
Return on Equity. The annual return on equity (“▇▇▇”) for Alberta Clipper Canada will be equal to the NEB multi-pipeline rate plus a 225 basis point adjustment. If the NEB ceases to publish a multi-pipeline rate during the Term, the Parties will meet to agree on a new benchmark to which will be applied the 225 basis point adjustment (or such other basis point adjustment as shall result in an ▇▇▇ that is reasonably equivalent to the NEB multi-pipeline rate plus 225 basis points). If such agreement is not forthcoming within 90 days, then the amount of the ▇▇▇ shall be subject to the dispute resolution provisions set forth in Paragraph 15 hereof.
Return on Equity. The Parties agree that a return on equity of 9.75% is reasonable for the Utilities’ electric operations, and the agreed stipulated revenue requirement increases for the Utilities’ electric operations reflect that return on equity as applied to the Utilities’ capitalizations and capital structures underlying their originally proposed electric revenue requirement increases as modified through discovery. Use of a 9.75% return on equity reduces the Utilities’ proposed electric revenue requirement increases by $15.3 million for KU and $10.1 million for LG&E.
Return on Equity. (a) The return on equity ("▇▇▇") used in the Formula Rate to accrue AFUDC prior to the Commercial Operation Date and to calculate the weighted cost of capital for the Carrying Charges on the regulatory asset established pursuant to Section 8.1.2(e)(iii) shall be twelve and fifty-six one-hundredth percent (12.56%).
(b) Upon Commercial Operation, the ▇▇▇ shall be adjusted to equal (i) the Base ▇▇▇, plus (ii) an adder equal to the lesser of (A) one hundred forty-two (142) basis points and (B) an amount that would not cause the total ▇▇▇ to exceed the applicable zone of reasonableness for such Regional Transmission Service, as established in the most recent rate order for such service. In the event the Base ▇▇▇ for Regional Transmission Service using the transmission facilities of Northeast Utilities is no longer based upon a single, regional Base ▇▇▇, Owner shall make a filing under Section 205 of the Federal Power Act to establish the ▇▇▇ applicable to service under this Agreement that includes the adder set forth above; provided, however, that Owner shall delay such FERC filing for a period not less than thirty (30) days, but not to exceed sixty (60) days, to provide time for the Parties to negotiate the ▇▇▇ to be applicable to service under this Agreement. The Parties acknowledge and agree that Purchaser shall have the right to challenge any FERC filing made under Section 205 of the Federal Power Act with respect to a replacement for the Base ▇▇▇, unless Purchaser shall have agreed in writing to the ▇▇▇ set forth in such filing.
Return on Equity. The Parties agree that a return on equity of 9.75% is reasonable for LG&E’s gas operations, and the agreed stipulated revenue requirement increase for LG&E’s gas operations reflect that return on equity as applied to LG&E’s gas capitalization and capital structure underlying its originally proposed gas revenue requirement increase as modified through discovery. Use of a 9.75% return on equity reduces LG&E’s proposed gas revenue requirement increase by $2.9 million.
Return on Equity. For purposes of calculating the revenue requirements, the Signatories agree to a return on equity (▇▇▇) of 9.75%.
Return on Equity. (a) The return on equity ("▇▇▇") used in the Formula Rate to accrue AFUDC prior to the Commercial Operation Date and to calculate the weighted cost of capital for the Carrying Charges on the regulatory asset established pursuant to Section 8.1.2(e)(iii) shall be twelve and fifty-six one-hundredth percent (12.56%).