Hadaway Exhibit No. 4.xls

Pages 1-2
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AUTHORIZED
INDICATED
RISK
PREMIUM
INTEREST RATE DIFFERENCE
INTEREST RATE CHANGE COEFFICIENT
ADUSTMENT TO AVG RISK PREMIUM
BASIC RISK PREMIUM
INTEREST RATE ADJUSTMENT
EQUITY RISK PREMIUM
INDICATED COST OF EQUITY
SUMMARY OUTPUT
Regression Statistics
R Square
Adjusted R Square
Standard Error
Observations
Intercept
Coefficients
t Stat
BOND YIELD (1)
RETURNS (2)
(2) Regulatory Focus, Regulatory Research Associates, Inc.
Multiple R
ANOVA
Regression
Residual
Total
df
SS
MS
F
Significance F
P-value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
X Variable 1
Sources:
(1) Moody's Investors Service
MOODY'S AVG ANNUAL YIELD DURING STUDY
MOODY'S AVERAGE
PUBLIC UTILITY
ELECTRIC
AVERAGE
INDICATED EQUITY RETURN
Risk Premium Analysis
PROJECTED AVG UTILITY BOND YIELD
9/2004
PacifiCorp Idaho
PPL Exhibit 204
Page of
1980.00
0.13
0.14
0.01
1981.00
0.16
0.15
-4.00E-03
1982.00
0.15
0.16
4.50E-03
1983.00
0.13
0.15
0.02
1984.00
0.14
0.15
0.01
1985.00
0.12
0.15
0.03
1986.00
0.09
0.14
0.04
1987.00
0.10
0.13
0.03
1988.00
0.10
0.13
0.02
1989.00
0.10
0.13
0.03
1990.00
0.10
0.13
0.03
1991.00
0.09
0.13
0.03
1992.00
0.09
0.12
0.04
1993.00
0.08
0.11
0.04
1994.00
0.08
0.11
0.03
1995.00
0.08
0.12
0.04
1996.00
0.08
0.11
0.04
1997.00
0.08
0.11
0.04
1998.00
0.07
0.12
0.05
1999.00
0.08
0.11
0.03
2000.00
0.08
0.11
0.03
2001.00
0.08
0.11
0.03
2002.00
0.08
0.11
0.04
2003.00
0.07
0.11
0.04
0.06
0.11
0.04
0.10
0.13
0.03
0.07
0.10
-0.03
-0.42
0.01
0.03
0.01
0.04
0.07
0.11
PacifiCorp Idaho
Risk Premium Analysis
0.92
0.84
0.83
5.14E-03
25.00
1.00
3.17E-03
3.17E-03
120.08
1.32E-10
23.00
6.07E-04
2.64E-05
24.00
3.78E-03
0.07
3.82E-03
18.43
2.87E-15
0.06
0.08
0.06
0.08
-0.42
0.04
-10.96
1.32E-10
-0.50
-0.34
-0.50
-0.34
Average Utility Interest Rates
Equity Risk Premiums
Authorized Equity Risk Premiums vs. Utility Interest Rates (1980-9/2004)