HomeMy WebLinkAboutHanley Reb Ex 19 Sch1 - p1.xlsA
United Water Idaho, Inc.
Before-Income Tax Coverage of all Interest Charges Implicit in Ms. Carlock's
Discounted Cash Flow Indicated Common Equity Cost Rate Range of 8.6% - 9.6%
Before-Income Tax
Type of Capital
Ratios (1)
Cost Rate
Weighted Cost Rate
Weighted Cost Rate (2)
Long-Term Debt
56.81
%
7.52
% (3)
0.04
100.00
2.00
100.00
0.04
Minority Interest
0.12
5.00
(3)
0.01
100.00
2.00
0.02
1.00
0.40
2.00
Common Equity
43.07
8.6 - 9.6
(4)
3.70
100.00
8.60
2.00
-
4.13
100.00
9.60
2.00
6.14
1.00
0.40
2.00
-
6.85
1.00
0.40
2.00
Total
100.00
%
7.98
100.00
-
0.08
100.00
100.00
10.43
100.00
-
0.11
100.00
100.00
Before-income tax interest coverage of all
interest charges ( 10.43% / 4.27% )
2.44
100.00
2.00
-
2.61
2.00
x
and ( 11.14% / 4.27%)
Standard & Poor's (S&P) Before-Income Tax Coverage Financial Target for Utilities in a Business Position of "3" (5)
A Rated Utility
2.8x - 3.4x
(6)
BBB Rated Utility
1.8x - 2.8x
(6)
Average 1999 Before-Income Tax Coverage for the C. A. Turner Water Companies
3.15x (7)
Notes:
(1)
From page 1, Schedule 6 of Exhibit No. ___(FJH-1).
(2)
Based upon a company-provided estimated combined effective federal and state income tax rate of 39.7%.
(3)
From page 2, Schedule 6 of Exhibit No. ___(FJH-1).
(4)
Ms. Carlock's range of Discounted Cash Flow Model (DCF) results. See page 19, line 4 of Ms. Carlock's direct testimony.
(5)
As indicated in Note 8, page 2, Schedule 14 of Exhibit No. ___(FJH-1), United Waterworks, Inc. has been assigned a bond rating of A and a business position of "3" by S&P.
(6)
From page 12, Schedule 2 of Exhibit No. ___(FJH-1).
(7)
Derived using data from Standard & Poor's Compustat Services, Inc., PC Plus Data Base.