Amendment #2 to H4199

Capital Tracker Cap

Mr. Chan of Quincy moves to amend the bill in lines 44 through 47 by striking out the words “any reasonable revenue requirement, including, depreciation, property taxes and a return associated with the approved work plan.” and inserting in place thereof the following: “a reasonable revenue requirement, including, but not limited to, depreciation, recognition of accumulated deferred income taxes, property taxes and a return commensurate with the financial risks associated with the approved work plan.”

The bill is further amended in lines 52 through 53 striking out the words “reasonably and prudently incurred” and inserting in place the following words:-“reasonable and prudent, and the installed plant is use and useful.”

The bill is further amended in line 54 by striking out the word “reconcile” and inserting in place the word “adjust”.

The bill us further amended in line 55 by inserting at after the words “if necessary.” the following: “The rate factor for an approved work plan filed pursuant to this subsection (e) shall be authorized to collect the allowed revenue requirement which is not more than the historic ten year average of spending for the particular type of capital project included in the said work plan.  In setting the appropriate revenue requirement for plan projects, the department shall reduce the return on equity by one hundred basis points in recognition of the reduced financial risks associated with recovery under this subsection (e).  In order to file a capital plan with the department the Company must have also filed a general rate case within the previous three years.”