Common use of Return on Equity Clause in Contracts

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. The Parties agree that stipulate to a return on equity of 9.759.725% is reasonable for LG&E’s gas operations, and the agreed stipulated revenue requirement increase for LG&E’s gas operations reflect reflects 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 discoveryincrease. Use of a 9.759.725% return on equity reduces LG&E’s proposed gas revenue requirement increase as set forth in its Application by $2.9 3.87 million.