Common use of Return on Equity Clause in Contracts

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. (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 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.