Table 1: Revenue / Cost Ratios from Cost Allocation Model (%)

Transcription

1 EB- Tab 1 Page 1 of 4 1 COST ALLOCATION THESL s total revenue requirement, as described in Exhibit J1, is allocated to rate classes as the basis for determining distribution rates for the Test Year. The allocation methodology employed for the Test Years is the Board s Revised Cost Allocation Model to be used for cost of service applications starting with the 2012 rate year that was provided on the Board s website on August 5, The results of the cost allocation, which shows the revenue/cost ratios prior to applying the proposed rates in each Test Year, are summarized in Table 1 below Table 1: Revenue / Cost Ratios from Cost Allocation Model (%) Rate Class Board s Guideline Ranges Residential General Service <50kW General Service kW Intermediate kW Large Use Streetlighting Unmetered Scattered Load ,, provides select inputs and outputs from the Cost Allocation model for the Test Years. The full model has also been filed electronically COST ALLOCATION MODEL The OEB s cost allocation model is designed on sound cost allocation principles. One such principle is that costs should be allocated to those customer classes causing them.

2 EB- Tab 1 Page 2 of Cost allocation generally is done in three steps: Functionalization, Categorization and Allocation. In the functionalization step, costs are aggregated into homogenous groups as defined by functions within the utility. In the case of the OEB s Cost Allocation Model, functionalization was achieved by allocating utility costs to the various USofA accounts, with further refinement in some categories for primary and secondary-related costs, and aggregation of some USofA accounts where account-by-account detail is not required for allocation. In the categorization step, each of the cost categories determined in the functionalization step is categorized as demand-related (related to the peak demands on the system), customer-related (related to the number of customers of the utility), or jointly demandand customer-related (related to both demand on the system and number of customers). Where costs are categorized as jointly demand- and customer-related, the proportions of each are determined in the Cost Allocation Model using a Minimum System approach. This approach determines the customer-related proportion by estimating the minimum system that would be needed to serve the minimum load requirements of customers. The remainder of costs are considered to be demand-related. The OEB s Cost Allocation model does not attempt to estimate the minimum system for each utility individually, but uses results of past studies to determine a generic customer/demand split based on utility densities. THESL has no information that would lead it to depart from the generic splits applied in the OEB s model, and accepts those values as reasonable. The final step is the allocation of the demand- and customer-related costs based on various allocators. THESL has adopted the allocators used in the Board s Cost Allocation model, including the use of 4 NCP for allocating primary and secondary asset costs.

3 EB- Tab 1 Page 3 of IMPLEMENTATION OF COST ALLOCATION RESULTS The OEB s Report of the Board: Review of Electricity Distribution Cost Allocation Policy (EB ) established updated target ranges for the Revenue to Cost ratios for each customer class. Table 2 below shows the Revenue to Cost ratios calculated prior to, and after, the proposed Test Year rate design in comparison to the target ranges (all ratios exclude revenues and costs related to transformer ownership allowance). 8 9 Table 2: Revenue / Cost Ratios (%) Board s Rate Class Board Guideline Model Proposed Model Proposed Model Proposed Approved Ranges Residential General Service <50kW General Service kW Intermediate kW Large Use Streetlighting Unmetered Scattered Load The proposed Revenue to Cost ratios for all THESL rate classes are within the Board s target ranges. Where the rate class Revenue to Cost ratios determined by the model fall outside of the Board s guidelines, THESL has adjusted the revenue requirement of those rate classes to meet the guidelines. The revenue adjustment was allocated to the remaining customer classes based on the class pro-rata share of revenue requirement. This is the same methodology directed by the Board in THESL s decision.

4 EB- Tab 1 Page 4 of As required by the Board s June 22, 2011 updated filing requirements,, Tab 1, Schedule 2 shows class revenues under different revenue to cost ratio assumptions (Filing Requirements Appendix 2-O).

5 Please complete the following four tables. a) Allocated Costs OEB's Appendix 2-O Cost Allocation EB- Tab 1 Schedule 2 Page 1 of 6 Classes Costs Allocated from Previous Study % Costs Allocated in Test Year Study (Column 7A) 2012 % Costs Allocated in Test Year Study (Column 7A) 2013 % Costs Allocated in Test Year Study (Column 7A) 2014 Residential $ 256,839, % $ 275,646, % $ 305,109, % $ 332,958, % GS < 50 kw $ 74,280, % $ 81,617, % $ 90,273, % $ 99,051, % GS > 50 kw to 999 kw $ 136,457, % $ 147,698, % $ 166,901, % $ 191,346, % GS > 999 to 5000 kw $ 38,493, % $ 41,716, % $ 47,793, % $ 54,526, % Large User, if applicable $ 20,035, % $ 21,819, % $ 25,168, % $ 28,943, % Street Lighting $ 17,331, % $ 17,734, % $ 19,328, % $ 21,233, % Sentinel Lighting 0.00% 0.00% 0.00% 0.00% Unmetered Scattered Load (USL) $ 4,627, % $ 3,124, % $ 3,423, % $ 3,743, % Other class, if applicable 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Embedded distributor, if applicant is a host 0.00% 0.00% 0.00% 0.00% Total $ 548,065, % $ 589,358, % $ 657,997, % $ 731,802, % Notes Customer Classification Host Distributors: Provide information on embedded distributor(s) as a separate class, even if your proposal is to bill the embedded distributor(s) as (a) General Service customer(s). If proposed rate classes differ from those in place in the previous Cost Allocation study, modify the rate classes to match the current application as closely as possible. Class Revenue Requirements If using the Board-issued model, enter data from Worksheet O-1, row 39 in the 2012 model. For the Embedded Distributor(s), the Service Revenue Requirement does not include Account Low Voltage (LV) Costs Exclude costs in deferral and variance accounts. Include Smart Meter costs only to the extent that they are being included in Rate Base and Revenue Requirement (i.e. being transferred from accounts 1555 and 1556 as a result of a prudence review). %

6 b) Revenues Classes (same as previous table) 2012 Column 7B Column 7C Column 7D Column 7E Load Forecast (LF) X current approved rates LF X current approved rates X (1 + d) LF X proposed rates Miscellaneous Revenue EB- Tab 1 Schedule 2 Page 2 of 6 Residential $ 217,119,755 $ 236,438,395 $ 238,115,903 $ 9,531,407 GS < 50 kw $ 66,034,549 $ 71,910,098 $ 72,406,796 $ 3,692,661 GS > 50 kw to 999 kw $ 158,766,598 $ 169,258,292 $ 170,157,143 $ 3,669,965 GS > 999 to 5000 kw $ 52,210,674 $ 51,159,558 $ 49,159,558 $ 653,372 Large User, if applicable $ 26,964,718 $ 25,957,906 $ 24,757,906 $ 237,517 Street Lighting $ 11,983,417 $ 13,049,664 $ 13,157,592 $ 97,332 Sentinel Lighting Unmetered Scattered Load (USL) $ 3,301,468 $ 3,595,223 $ 3,614,239 $ 106,837 Other class, if applicable $ - $ - $ - applicant is a host distributor Total $ 536,381,181 $ 571,369,136 $ 571,369,137 $ 17,989,091

7 Classes (same as previous table) 2013 Column 7B Column 7C Column 7D Column 7E Load Forecast LF X current LF X proposed Miscellaneous (LF) X current approved rates X rates Revenue approved rates (1 + d) EB- Tab 1 Schedule 2 Page 3 of 6 Residential $ 239,370,964 $ 268,089,081 $ 268,135,693 $ 9,823,816 GS < 50 kw $ 71,204,056 $ 79,746,639 $ 79,760,430 $ 3,774,771 GS > 50 kw to 999 kw $ 174,393,189 $ 191,563,589 $ 191,589,087 $ 3,801,709 GS > 999 to 5000 kw $ 53,567,271 $ 54,230,370 $ 54,237,672 $ 657,758 Large User, if applicable $ 27,212,806 $ 27,064,671 $ 27,068,516 $ 239,233 Street Lighting $ 13,169,437 $ 14,749,417 $ 14,752,370 $ 98,323 Sentinel Lighting Unmetered Scattered Load (USL) $ 3,614,532 $ 4,048,180 $ 3,948,180 $ 110,288 Other class, if applicable Embedded distributor, if applicant is a host distributor Total $ 582,532,256 $ 639,491,948 $ 639,491,948 $ 18,505,898

8 Classes (same as previous table) 2014 Column 7B Column 7C Column 7D Column 7E Load Forecast LF X current LF X proposed Miscellaneous (LF) X current approved rates X rates Revenue approved rates (1 + d) EB- Tab 1 Schedule 2 Page 4 of 6 Residential $ 269,780,773 $ 300,599,937 $ 300,618,230 $ 10,098,638 GS < 50 kw $ 78,321,333 $ 87,268,590 $ 87,274,032 $ 3,851,607 GS > 50 kw to 999 kw $ 196,352,179 $ 215,029,729 $ 215,040,241 $ 3,958,597 GS > 999 to 5000 kw $ 58,501,027 $ 59,541,347 $ 59,544,343 $ 662,347 Large User, if applicable $ 29,449,682 $ 29,498,055 $ 29,499,645 $ 241,345 Street Lighting $ 14,754,863 $ 16,440,426 $ 16,441,592 $ 99,494 Sentinel Lighting Unmetered Scattered Load (USL) $ 3,947,925 $ 4,398,927 $ 4,358,927 $ 113,491 Other class, if applicable applicant is a host distributor Total $ 651,107,781 $ 712,777,011 $ 712,777,010 $ 19,025,519 Notes: Columns 7B to 7D LF means Load Forecast of Annual Billing Quantities (i.e. customers or connections X 12, and kwh or kw, as applicable) Exclude revenue from rate adders and rate riders. For Embedded Distributor(s): exclude revenue in account Columns 7C and 7D: Column total in each column should equal the Base Revenue Requirement. For Embedded Distributor(s), Base Revenue Requirement does not include Account Low Voltage Costs Column 7C: The Board cost allocation model calculates "1+d" in worksheet O-1, cell C21. "d" is defined as Revenue Deficiency/ Revenue at Current Rates. Column 7E: If using the Board-issued Cost Allocation model, enter Miscellaneous Revenue as it appears in Worksheet O-1, row 19.

9 c) Rebalancing Revenue-to-Cost (R/C) Ratios Policy Range Class Previously Status Quo Approved Ratios Ratios Proposed Ratios Most Recent Year: (7C + 7E) / (7A) (7D + 7E) / (7A) 2011 % % % % Residential 88.72% GS < 50 kw 97.51% GS > 50 kw to 999 kw % GS > 999 to 5000 kw % EB- Tab 1 Schedule 2 Page 5 of 6 Large User, if applicable % Street Lighting 71.39% Sentinel Lighting Unmetered Scattered Load (USL) 82.53% Other class, if applicable Embedded distributor, if applicant is a host distributor Notes: Previously Approved Revenue-to-Cost Ratios For most applicants, Most Recent Year would be the third year of the IRM 3 period, e.g. if the applicant rebased in 2008 with further adjustments over 2 years, the Most recent year is For applicants that have had rates adjusted only under IRM 2, the Most Recent Year is 2006, and the applicant should enter the ratios from their Informational Filing. Status Quo Ratios The Board's updated Cost Allocation Model yields the Status Quo Ratios in Worksheet O-1. Status Quo means "No Rebalancing" or "Before Rebalancing".

10 d) Proposed Revenue-to-Cost Ratios Class Proposed Revenue-to-Cost Ratios Policy Range % % % % Residential % 93.3% GS < 50 kw % 92.0% EB- Tab 1 Schedule 2 Page 6 of 6 GS > 50 kw to 999 kw % 114.5% GS > 999 to 5000 kw % 110.4% Large User, if applicable % 102.8% Street Lighting % 77.9% Sentinel Lighting Unmetered Scattered Load (USL) % 119.5% Other class, if applicable Embedded distributor, if applicant is a host distributor The applicant should complete Table (d) if it is applying for approval of a revenue to cost ratio in 2012 that is outside the Board s policy range for any customer class. Table (d) will show the information that the distributor would likely enter in the IRM model) in In 2012 Table (d), enter the planned ratios for the classes that will be Change and No Change in 2013 (in the current Revenue Cost Ratio Adjustment Workform, Worksheet C1.1 Decision Cost Revenue Adjustment, column d), and enter TBD for class(es) that will be entered as Rebalance.

11 2012 COST ALLOCATION Sheet I6.1 Revenue Worksheet - Edit description in Sheet I2, cell C17 Page 1 of 15 Total kwhs from Load Forecast 24,728,243,609 Total kwhs from Market Particpants 264,818,673 Total kws from Load Forecast 43,124,389 Deficiency from RRWF - 46,684,782 Miscellaneous Revenue $17,989,091 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Forecast kwh CEN 24,728,243,609 5,037,295,612 2,071,525,044 10,268,957,200 4,685,622,966 2,501,484, ,260,970 52,097,299 Forecast kw CDEM 43,124,389 26,934,430 10,637,920 5,229, ,725 Forecast kw, included in CDEM, of customers receiving line 18,566,388 5,298,207 8,303,497 4,964,684 Optional - Forecast kwh, included in CEN, from customers that - KWh excluding KWh from Wholesale Market Participants CEN EWMP 24,463,424,936 5,037,295,612 2,071,525,044 10,268,957,200 4,685,622,966 2,236,665, ,260,970 52,097,299 kwh - 30 year weather normalized amount Existing Monthly Charge $18.50 $24.64 $36.05 $ $3, $1.32 $4.91 Existing Distribution kwh Rate $ $ $ Existing Distribution kw Rate $ $ $ $ $ Existing TFOA Rate $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 Additional Charges Distribution Revenue from Rates $536,381,181 $217,119,755 $66,034,549 $158,766,598 $52,210,674 $26,964,718 $11,983,417 $3,301,468 Transformer Ownership Allowance $11,696,825 $0 $0 $3,337,870 $5,231,203 $3,127,751 $0 $0 Net Class Revenue CREV $524,684,356 $217,119,755 $66,034,549 $155,428,727 $46,979,471 $23,836,967 $11,983,417 $3,301,468 Data Mismatch Analysis Revenue with 30 year weather normalized kwh Weather Normalized Data from Hydro One Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered kwh - 30 year weather normalized amount - Loss Factor

12 2012 COST ALLOCATION Sheet I6.2 Customer Data Worksheet - Edit description in Sheet I2, cell C17 Page 2 of 15 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Bad Debt 3 Year Historical Average BDHA $7,628,705 $4,497,264 $1,942,800 $1,111,986 $76,655 $0 $0 $0 Late Payment 3 Year Historical Average LPHA $5,000,000 $2,709,349 $1,035,253 $983,705 $226,396 $45,297 $0 $0 Number of Bills CNB 4,775,070 3,798, , ,312 6, ,284 Number of Devices 163,159 12,323 Number of Connections (Unmetered) CCON 102,967 90,644 12,323 Total Number of Customers CCA 714, ,121 65,907 13, ,107 Bulk Customer Base CCB - Primary Customer Base CCP 714, ,121 65,907 13, ,107 Line Transformer Customer Base CCLT 711, ,121 65,907 11, ,107 Secondary Customer Base CCS 703, ,121 65,907 3, ,107 Weighted - Services CWCS 901, , ,814 33, ,644 12,323 Weighted Meter -Capital CWMC 178,416, ,981,826 22,433,998 26,287,600 5,633,500 1,040,000 1,040,000 - Weighted Meter Reading CWMR 971, , ,967 68,118 46,106 7, Weighted Bills CWNB 6,655,722 3,798,726 1,581,768 1,157,184 42,420 9, ,420 Bad Debt Data Historic Year: ,628,705 4,497,264 1,942,800 1,111,986 76,655 Historic Year: ,628,705 4,497,264 1,942,800 1,111,986 76,655 Historic Year: ,628,705 4,497,264 1,942,800 1,111,986 76,655 Three-year average 7,628,705 4,497,264 1,942,800 1,111,986 76,

13 2012 COST ALLOCATION Sheet I8 Demand Data Worksheet - Edit description in Sheet I2, cell C17 Page 3 of 15 CP TEST RESULTS NCP TEST RESULTS Co-incident Peak 1 CP 4 CP 12 CP 4 CP 4 NCP Indicator CP 1 CP 4 CP 12 4 NCP NCP 4 12 NCP NCP 12 Non-co-incident Peak 1 NCP 4 NCP 12 NCP Indicator NCP 1 NCP 4 NCP 12 Customer Classes Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered CO-INCIDENT PEAK 1 CP Transform TCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Bulk DeliveBCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Total Syte DCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 4 CP Transform TCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Bulk DeliveBCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Total Syte DCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25, CP Transform TCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Bulk DeliveBCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Total Syte DCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 NON CO_INCIDENT PEAK 1 NCP Classificat DNCP1 5,014,960 1,236, ,059 2,049, , ,501 28,797 7,718 Primary NCPNCP1 4,875,349 1,236, ,059 1,910, , ,501 28,797 7,318 Line Tran LTNCP1 3,737,320 1,236, ,059 1,713, ,155 36,105 28,797 7,318 Secondary SNCP1 2,351,267 1,236, , ,075 16,716-28,797 7,318 4 NCP Classificat DNCP4 18,463,083 4,605,538 1,879,642 7,432,455 2,905,098 1,497, ,216 30,300 Primary NCPNCP4 17,919,247 4,605,538 1,879,642 6,888,620 2,905,098 1,497, ,216 30,300 Line Tran LTNCP4 13,584,586 4,605,538 1,879,642 6,177, , , ,216 30,300 Secondary SNCP4 8,544,838 4,605,538 1,879,642 1,853,387 63, ,216 30, NCP Classificat DNCP12 49,989,075 12,236,419 4,738,942 20,383,858 8,008,427 4,217, ,422 87,280 Primary NCPNCP12 41,919,238 12,236,419 4,738,942 12,314,021 8,008,427 4,217, ,422 87,280 Line Tran LTNCP12 30,578,349 12,236,419 4,738,942 11,043,650 1,757, , ,422 87,280 Secondary SNCP12 20,867,911 12,236,419 4,738,942 3,313, , ,422 87,280

14 2012 COST ALLOCATION Sheet O1 Revenue to Cost Summary Worksheet - Edit description in Sheet I2, cell C17 Page 4 of 15 Rate Base Assets Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load crev Distribution Revenue at Existing Rates $524,684,356 $217,119,755 $66,034,549 $155,428,727 $46,979,471 $23,836,967 $11,983,417 $3,301,468 mi Miscellaneous Revenue (mi) $17,989,091 $9,531,407 $3,692,661 $3,669,965 $653,372 $237,517 $97,332 $106,837 Miscellaneous Revenue Input equals Output Total Revenue at Existing Rates $542,673,447 $226,651,163 $69,727,210 $159,098,693 $47,632,843 $24,074,485 $12,080,749 $3,408,305 Factor required to recover deficiency (1 + D) Distribution Revenue at Status Quo Rates $571,369,137 $236,438,395 $71,910,098 $169,258,292 $51,159,558 $25,957,906 $13,049,664 $3,595,223 Miscellaneous Revenue (mi) $17,989,091 $9,531,407 $3,692,661 $3,669,965 $653,372 $237,517 $97,332 $106,837 Total Revenue at Status Quo Rates $589,358,228 $245,969,803 $75,602,759 $172,928,257 $51,812,930 $26,195,424 $13,146,996 $3,702,060 Expenses di Distribution Costs (di) $120,615,359 $48,181,182 $15,491,146 $36,205,071 $11,375,568 $5,641,770 $3,198,159 $522,463 cu Customer Related Costs (cu) $51,773,264 $31,551,241 $11,074,605 $7,515,386 $638,489 $102,675 $522,297 $368,571 ad General and Administration (ad) $89,422,210 $41,525,370 $13,430,964 $22,610,958 $6,247,470 $2,986,274 $2,152,769 $468,404 dep Depreciation and Amortization (dep) $145,414,768 $69,323,007 $18,562,812 $36,667,183 $10,213,539 $4,784,151 $5,104,616 $759,461 INPUT PILs (INPUT) $1,524,040 $723,268 $196,044 $378,164 $108,629 $51,933 $57,449 $8,552 INT Interest $77,370,498 $36,717,947 $9,952,534 $19,198,137 $5,514,758 $2,636,458 $2,916,500 $434,164 Total Expenses $486,120,138 $228,022,014 $68,708,105 $122,574,899 $34,098,455 $16,203,261 $13,951,790 $2,561,615 Direct Allocation $2,884,803 $0 $0 $222,815 $464,942 $2,197,047 $0 $0 NI Allocated Net Income (NI) $100,353,286 $47,624,957 $12,908,919 $24,900,914 $7,152,909 $3,419,613 $3,782,842 $563,132 Revenue Requirement (includes NI) $589,358,228 $275,646,971 $81,617,024 $147,698,628 $41,716,305 $21,819,921 $17,734,632 $3,124,747 Revenue Requirement Input equals Output Rate Base Calculation Net Assets dp Distribution Plant - Gross $4,322,816,988 $2,056,938,761 $559,456,134 $1,078,026,562 $297,808,978 $141,128,666 $164,874,659 $24,583,227 gp General Plant - Gross $700,543,035 $332,404,027 $90,408,775 $174,641,972 $49,269,248 $23,467,361 $26,412,241 $3,939,411 accum depaccumulated Depreciation ($2,436,796,884) ($1,162,543,981) ($315,929,844) ($606,585,165) ($165,621,762) ($78,259,103) ($93,871,686) ($13,985,344) co Capital Contribution ($288,890,109) ($136,405,721) ($38,264,602) ($75,652,137) ($17,932,115) ($8,192,762) ($10,801,960) ($1,640,812) Total Net Plant $2,297,673,029 $1,090,393,085 $295,670,463 $570,431,233 $163,524,349 $78,144,162 $86,613,254 $12,896,482 Directly Allocated Net Fixed Assets $28,644,080 $0 $0 $2,212,386 $4,616,554 $21,815,140 $0 $0 COP Cost of Power (COP) $2,170,630,600 $446,957,367 $183,805,647 $911,160,755 $415,753,584 $198,458,529 $9,872,144 $4,622,574 OM&A Expenses $261,810,833 $121,257,793 $39,996,715 $66,331,415 $18,261,528 $8,730,719 $5,873,225 $1,359,438 Directly Allocated Expenses $489,065 $0 $0 $37,775 $78,822 $372,468 $0 $0 Subtotal $2,432,930,498 $568,215,160 $223,802,362 $977,529,945 $434,093,934 $207,561,716 $15,745,370 $5,982,012 Working Capital $309,148,499 $72,202,171 $28,438,200 $124,213,131 $55,159,606 $26,374,528 $2,000,738 $760,125 Total Rate Base $2,635,465,608 $1,162,595,256 $324,108,663 $696,856,750 $223,300,509 $126,333,830 $88,613,993 $13,656,607 Rate Base Input equals Output Equity Component of Rate Base $1,054,186,243 $465,038,103 $129,643,465 $278,742,700 $89,320,204 $50,533,532 $35,445,597 $5,462,643 Net Income on Allocated Assets $100,353,286 $17,947,788 $6,894,654 $50,130,544 $17,249,534 $7,795,116 ($804,794) $1,140,444 Net Income on Direct Allocation Assets $669,402 $0 $0 $51,703 $107,887 $509,812 $0 $0 Net Income $101,022,688 $17,947,788 $6,894,654 $50,182,246 $17,357,421 $8,304,928 ($804,794) $1,140,444 RATIOS ANALYSIS REVENUE TO EXPENSES STATUS QUO% % 89.23% 92.63% % % % 74.13% % EXISTING REVENUE MINUS ALLOCATED COSTS ($46,684,781) ($48,995,809) ($11,889,813) $11,400,065 $5,916,538 $2,254,564 ($5,653,883) $283,558 Deficiency Input equals Output STATUS QUO REVENUE MINUS ALLOCATED COSTS $0 ($29,677,169) ($6,014,265) $25,229,629 $10,096,625 $4,375,503 ($4,587,636) $577,312 RETURN ON EQUITY COMPONENT OF RATE BASE 9.58% 3.86% 5.32% 18.00% 19.43% 16.43% -2.27% 20.88%

15 Output sheet showing minimum and 2012 COST ALLOCATION Page 5 of 15 Sheet O2 Monthly Fixed Charge Min. & Max. Worksheet - Edit description in Sheet I2, cell C17 GS - 1,000 to Unmetered Summary Residential GS <50 GS - 50 to 999 Large Use >5MW Street Light 4,999 Scattered Load Customer Unit Cost per month - Avoided Cost $4.85 $12.82 $46.38 $ $ $0.53 $2.36 Customer Unit Cost per month - Directly Related $7.07 $19.28 $70.04 $ $ $0.84 $3.66 Customer Unit Cost per month - Minimum System with P $20.52 $40.15 $ $ $ $16.19 $15.60 Existing Approved Fixed Charge $18.50 $24.64 $36.05 $ $3, $1.32 $4.91

16 2013 COST ALLOCATION Sheet I6.1 Revenue Worksheet - Edit description in Sheet I2, cell C17 Page 6 of 15 Total kwhs from Load Forecast 24,248,538,949 Total kwhs from Market Particpants 264,818,673 Total kws from Load Forecast 42,914,002 Deficiency from RRWF - 68,503,368 Miscellaneous Revenue $18,505,897 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Forecast kwh CEN 24,248,538,949 4,972,246,073 2,022,696,172 10,303,528,875 4,608,287,802 2,178,788, ,893,810 52,097,299 Forecast kw CDEM 42,914,002 27,031, ,464, ,094, ,977 Forecast kw, included in CDEM, of customers receiving line 18,323,293 5,317,759 8,168,480 4,837,054 Optional - Forecast kwh, included in CEN, from customers that - KWh excluding KWh from Wholesale Market Participants CEN EWMP 23,983,720,276 4,972,246,073 2,022,696,172 10,303,528,875 4,608,287,802 1,913,970, ,893,810 52,097,299 kwh - 30 year weather normalized amount Eiti Existing Monthly Charge $ $27.02 $ $ $2, $1.45 $5.37 Existing Distribution kwh Rate $ $ $ Existing Distribution kw Rate $ $ $ $ $ Existing TFOA Rate $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 Additional Charges Distribution Revenue from Rates $582,532,256 $239,370,964 $71,204,056 $174,393,189 $53,567,271 $27,212,806 $13,169,437 $3,614,532 Transformer Ownership Allowance $11,543,675 $0 $0 $3,350, $5,146, $3,047, $0 $0 Net Class Revenue CREV $570,988,581 $239,370,964 $71,204,056 $171,043,001 $48,421,129 $24,165,462 $13,169,437 $3,614,532 Data Mismatch Analysis Revenue with 30 year weather normalized kwh Weather Normalized Data from Hydro One Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered kwh - 30 year weather normalized amount - Loss Factor

17 2013 COST ALLOCATION Sheet I6.2 Customer Data Worksheet - Edit description in Sheet I2, cell C17 Page 7 of 15 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Bad Debt 3 Year Historical Average BDHA $7,788,908 $4,591,706 $1,983,599 $1,135,338 $78,265 $0 $0 $0 Late Payment 3 Year Historical Average LPHA $5,000,000 $2,709,349 $1,035,253 $983,705 $226,396 $45,297 $0 $0 Number of Bills CNB 4,839,228 3,856, , ,200 6, ,284 Number of Devices 163,303 12,323 Number of Connections (Unmetered) CCON 103,047 90,724 12,323 Total Number of Customers CCA 724, ,696 65,892 14, ,107 Bulk Customer Base CCB - Primary Customer Base CCP 714, ,121 65,907 13, , Line Transformer Customer Base CCLT 711, ,121 65,907 11, ,107 Secondary Customer Base CCS 703, ,121 65,907 3, ,107 Weighted - Services CWCS 901, , ,814 33, ,724 12,323 Weighted Meter -Capital CWMC 183,893, ,003,076 22,909,248 27,307,600 5,633,500 1,040, Weighted Meter Reading CWMR 986, , ,117 69,339 46,582 7, Weighted Bills CWNB 6,761,028 3,856,176 1,581,408 1,205,400 42,420 9, ,420 Bad Debt Data Historic Year: ,788,908 4,591,706 1,983,599 1,135,338 78,265 Historic Year: ,788, ,591,706 1,983,599 1,135, ,265 Historic Year: ,788,908 4,591,706 1,983,599 1,135,338 78,265 Three-year average 7,788,908 4,591,706 1,983,599 1,135,338 78,

18 2013 COST ALLOCATION Sheet I8 Demand Data Worksheet - Edit description in Sheet I2, cell C17 Page 8 of 15 CP TEST RESULTS NCP TEST RESULTS Co-incident Peak 1 CP 4 CP 12 CP 4 CP 4 NCP Indicator CP 1 CP 4 CP 12 4 NCP NCP 4 12 NCP NCP 12 Non-co-incident Peak 1 NCP 4 NCP 12 NCP Indicator NCP 1 NCP 4 NCP 12 Customer Classes Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered CO-INCIDENT PEAK 1 CP Transform TCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Bulk DeliveBCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Total Syte DCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 4 CP Transform TCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Bulk DeliveBCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Total Syte DCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25, CP Transform TCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Bulk DeliveBCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Total Syte DCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 NON CO_INCIDENT PEAK 1 NCP Classificat DNCP1 5,014,960 1,236, ,059 2,049, , ,501 28,797 7,718 Primary N PNCP1 4,875,349 1,236, ,059 1,910, , ,501 28,797 7,318 Line Tran LTNCP1 3,737,320 1,236, ,059 1,713, ,155 36,105 28,797 7,318 Secondary SNCP1 2,351,267 1,236, , ,075 16,716-28,797 7,318 4 NCP Classificat DNCP4 18,463,083 4,605,538 1,879,642 7,432,455 2,905,098 1,497, ,216 30,300 Primary N PNCP4 17,919,247 4,605,538 1,879,642 6,888,620 2,905,098 1,497, ,216 30,300 Line Tran LTNCP4 13,584,586 4,605,538 1,879,642 6,177, , , ,216 30,300 Secondary SNCP4 8,544,838 4,605,538 1,879,642 1,853,387 63, ,216 30, NCP Classificat DNCP12 49,989,075 12,236,419 4,738,942 20,383,858 8,008,427 4,217, ,422 87,280 Primary N PNCP12 41,919,238 12,236,419 4,738,942 12,314,021 8,008,427 4,217, ,422 87,280 Line Tran LTNCP12 30,578,349 12,236,419 4,738,942 11,043,650 1,757, , ,422 87,280 Secondary SNCP12 20,867,911 12,236,419 4,738,942 3,313, , ,422 87,280

19 2013 COST ALLOCATION Sheet O1 Revenue to Cost Summary Worksheet - Edit description in Sheet I2, cell C17 Page 9 of 15 Rate Base Assets Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load crev Distribution Revenue at Existing Rates $570,988,581 $239,370,964 $71,204,056 $171,043,001 $48,421,129 $24,165,462 $13,169,437 $3,614,532 mi Miscellaneous Revenue (mi) $18,505,898 $9,823,816 $3,774,771 $3,801,709 $657,758 $239,233 $98,323 $110,288 Miscellaneous Revenue Input equals Output Total Revenue at Existing Rates $589,494,479 $249,194,780 $74,978,827 $174,844,710 $49,078,887 $24,404,695 $13,267,760 $3,724,820 Factor required to recover deficiency (1 + D) Distribution Revenue at Status Quo Rates $639,491,948 $268,089,081 $79,746,639 $191,563,589 $54,230,370 $27,064,671 $14,749,417 $4,048,180 Miscellaneous Revenue (mi) $18,505,898 $9,823,816 $3,774,771 $3,801,709 $657,758 $239,233 $98,323 $110,288 Total Revenue at Status Quo Rates $657,997,846 $277,912,897 $83,521,410 $195,365,298 $54,888,128 $27,303,905 $14,847,740 $4,158,468 Expenses di Distribution Costs (di) $128,527,301 $51,512,846 $16,502,705 $38,400,277 $12,107,201 $6,009,054 $3,435,359 $559,859 cu Customer Related Costs (cu) $54,021,870 $33,001,126 $11,395,589 $7,954,533 $664,141 $106,706 $520,874 $378,901 ad General and Administration (ad) $97,626,310 $45,248,567 $14,568,954 $24,797,270 $6,888,038 $3,299,742 $2,317,701 $506,038 dep Depreciation and Amortization (dep) $163,217,903 $76,910,192 $20,772,576 $41,782,722 $11,827,174 $5,578,009 $5,510,349 $836,881 INPUT PILs (INPUT) $6,117,209 $2,851,206 $783,028 $1,555,506 $456,403 $219,489 $218,508 $33,069 INT Interest $88,904,698 $41,438,119 $11,380,164 $22,607,005 $6,633,150 $3,189,956 $3,175,702 $480,603 Total Expenses $538,415,291 $250,962,056 $75,403,016 $137,097,313 $38,576,106 $18,402,957 $15,178,493 $2,795,350 Direct Allocation $3,410,063 $0 $0 $263,383 $549,599 $2,597,081 $0 $0 NI Allocated Net Income (NI) $116,172,492 $54,147,527 $14,870,552 $29,540,757 $8,667,591 $4,168,341 $4,149,715 $628,008 Revenue Requirement (includes NI) $657,997,846 $305,109,583 $90,273,568 $166,901,453 $47,793,296 $25,168,379 $19,328,208 $3,423,358 Revenue Requirement Input equals Output Rate Base Calculation Net Assets dp Distribution Plant - Gross $4,771,247,689 $2,242,433,537 $615,569,780 $1,208,395,750 $338,938,595 $161,552,606 $177,590,024 $26,767,397 gp General Plant - Gross $785,423,411 $366,780,857 $100,885,197 $199,934,394 $57,679,495 $27,643,004 $28,228,163 $4,272,301 accum depaccumulated Depreciation ($2,558,360,582) ($1,209,006,256) ($331,131,745) ($644,067,216) ($177,217,400) ($84,169,739) ($98,043,438) ($14,724,790) co Capital Contribution ($304,887,704) ($144,561,309) ($40,427,918) ($79,292,026) ($18,779,445) ($8,579,612) ($11,502,258) ($1,745,137) Total Net Plant $2,693,422,814 $1,255,646,829 $344,895,314 $684,970,902 $200,621,246 $96,446,259 $96,272,491 $14,569,772 Directly Allocated Net Fixed Assets $34,154,498 $0 $0 $2,637,995 $5,504,665 $26,011,838 $0 $0 COP Cost of Power (COP) $2,279,162,129 $472,510,303 $192,215,906 $979,139,705 $437,923,513 $181,883,730 $10,538,189 $4,950,783 OM&A Expenses $280,175,481 $129,762,539 $42,467,248 $71,152,080 $19,659,380 $9,415,503 $6,273,934 $1,444,797 Directly Allocated Expenses $504,402 $0 $0 $38,958 $81,295 $384,149 $0 $0 Subtotal $2,559,842,012 $602,272,842 $234,683,154 $1,050,330,743 $457,664,188 $191,683,381 $16,812,123 $6,395,580 Working Capital $325,922,100 $76,682,088 $29,880,136 $133,729,347 $58,270,343 $24,405,354 $2,140,539 $814,293 Total Rate Base $3,053,499,412 $1,332,328,917 $374,775,450 $821,338,244 $264,396,255 $146,863,451 $98,413,031 $15,384,064 Rate Base Input equals Output Equity Component of Rate Base $1,221,399,765 $532,931,567 $149,910,180 $328,535,298 $105,758,502 $58,745,380 $39,365,212 $6,153,626 Net Income on Allocated Assets $116,172,492 $26,950,841 $8,118,394 $58,004,602 $15,762,423 $6,303,867 ($330,753) $1,363,118 Net Income on Direct Allocation Assets $837,605 $0 $0 $64,694 $134,996 $637,914 $0 $0 Net Income $117,010,097 $26,950,841 $8,118,394 $58,069,296 $15,897,419 $6,941,781 ($330,753) $1,363,118 RATIOS ANALYSIS REVENUE TO EXPENSES STATUS QUO% % 91.1% 92.52% % % % 76.82% % EXISTING REVENUE MINUS ALLOCATED COSTS ($68,503,367) ($55,914,803) ($15,294,741) $7,943,257 $1,285,591 ($763,684) ($6,060,449) $301,463 Deficiency Input equals Output STATUS QUO REVENUE MINUS ALLOCATED COSTS ($0) ($27,196,686) ($6,752,158) $28,463,845 $7,094,832 $2,135,526 ($4,480,468) $735,110 RETURN ON EQUITY COMPONENT OF RATE BASE 9.58% 5.06% 5.42% 17.68% 15.03% 11.82% -0.84% 22.15%

20 2013 COST ALLOCATION Sheet O2 Revenue to Cost Summary Worksheet - Edit description in Sheet I2, cell C17 Page 10 of 15 GS - 1,000 to Unmetered Summary Residential GS <50 GS - 50 to 999 Large Use >5MW Street Light 4,999 Scattered Load Customer Unit Cost per month - Avoided Cost $5.14 $13.46 $48.71 $ $ $0.42 $2.43 Customer Unit Cost per month - Directly Related $7.51 $20.33 $73.62 $ $ $0.70 $3.80 Customer Unit Cost per month - Minimum System wi $21.97 $42.62 $ $ $ $17.63 $16.84 Existing Approved Fixed Charge $20.29 $27.02 $43.33 $ $2, $1.45 $5.37

21 2014 COST ALLOCATION Sheet I6.1 Revenue Worksheet - Edit description in Sheet I2, cell C17 Page 11 of 15 Total kwhs from Load Forecast 24,079,240,674 Total kwhs from Market Particpants 264,818,673 Total kws from Load Forecast 42,775,807 Deficiency from RRWF - 73,077,828 Miscellaneous Revenue $19,025,518 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Forecast kwh CEN 24,079,240,674 4,922,867,613 1,970,977,793 10,359,735,321 4,534,924,970 2,127,743, ,893,810 52,097,299 Forecast kw CDEM 42,775,807 27,179,325 10,297,773 4,975, ,229 Forecast kw, included in CDEM, of customers receiving line 18,108,892 5,346,801 8,038,392 4,723,699 Optional - Forecast kwh, included in CEN, from customers that - KWh excluding KWh from Wholesale Market Participants CEN EWMP 23,814,422,001 4,922,867,613 1,970,977,793 10,359,735,321 4,534,924,970 1,862,925, ,893,810 52,097,299 kwh - 30 year weather normalized amount Existing Monthly Charge $22.25 $30.26 $53.28 $ $2, $1.62 $5.87 Existing Distribution kwh Rate $ $ $ Existing Distribution kw Rate $ $ $ $ $ Existing TFOA Rate $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 $0.63 Additional Charges Distribution Revenue from Rates $651,107,781 $269,780,773 $78,321,333 $196,352,179 $58,501,027 $29,449,682 $14,754,863 $3,947,925 Transformer Ownership Allowance $11,408,602 $0 $0 $3,368,485 $5,064,187 $2,975,931 $0 $0 Net Class Revenue CREV $639,699,179 $269,780,773 $78,321,333 $192,983,695 $53,436,840 $26,473,751 $14,754,863 $3,947,925 Data Mismatch Analysis Revenue with 30 year weather normalized kwh Weather Normalized Data from Hydro One Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered kwh - 30 year weather normalized amount - Loss Factor

22 2014 COST ALLOCATION Sheet I6.2 Customer Data Worksheet - Edit description in Sheet I2, cell C17 Page 12 of 15 ID Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load Billing Data Bad Debt 3 Year Historical Average BDHA $8,452,475 $4,982,892 $2,152,589 $1,232,062 $84,932 $0 $0 $0 Late Payment 3 Year Historical Average LPHA $5,000,000 $2,709,349 $1,035,253 $983,705 $226,396 $45,297 $0 $0 Number of Bills CNB 4,905,618 3,915, , ,676 6, ,284 Number of Devices 163,399 12,323 Number of Connections (Unmetered) CCON 103,100 90,777 12,323 Total Number of Customers CCA 735, ,539 65,880 14, ,107 Bulk Customer Base CCB - Primary Customer Base CCP 714, ,121 65,907 13, ,107 Line Transformer Customer Base CCLT 711, ,121 65,907 11, ,107 Secondary Customer Base CCS 703, ,121 65,907 3, ,107 Weighted - Services CWCS 901, , ,814 33, ,777 12,323 Weighted Meter -Capital CWMC 210,264, ,639,326 23,259,498 48,692,500 5,633,500 1,040, Weighted Meter Reading CWMR 1,001, , ,341 72,207 46,582 7, Weighted Bills CWNB 6,872,130 3,915,234 1,581,120 1,257,732 42,420 9, ,420 Bad Debt Data Historic Year: ,452,475 4,982,892 2,152,589 1,232,062 84,932 Historic Year: ,452,475 4,982,892 2,152,589 1,232,062 84,932 Historic Year: ,452,475 4,982,892 2,152,589 1,232,062 84,932 Three-year average 8,452,475 4,982,892 2,152,589 1,232,062 84,

23 2014 COST ALLOCATION Sheet I8 Demand Data Worksheet - Edit description in Sheet I2, cell C17 Page 13 of 15 CP TEST RESULTS NCP TEST RESULTS Co-incident Peak 1 CP 4 CP 12 CP 4 CP 4 NCP Indicator CP 1 CP 4 CP 12 4 NCP NCP 4 12 NCP NCP 12 Non-co-incident Peak 1 NCP 4 NCP 12 NCP Indicator NCP 1 NCP 4 NCP 12 Customer Classes Total Residential GS <50 GS - 50 to 999 GS - 1,000 to Large Use >5MW Street Light Unmetered CO-INCIDENT PEAK 1 CP Transform TCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Bulk DeliveBCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 Total Syte DCP1 4,654,856 1,078, ,540 2,031, , ,957-6,029 4 CP Transform TCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Bulk DeliveBCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25,998 Total Syte DCP4 17,153,184 4,039,891 1,856,974 7,092,595 2,703,544 1,406,121 28,063 25, CP Transform TCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Bulk DeliveBCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 Total Syte DCP12 46,220,533 11,089,806 4,603,337 19,151,385 7,262,800 3,885, ,188 78,966 NON CO_INCIDENT PEAK 1 NCP Classificat DNCP1 5,014,960 1,236, ,059 2,049, , ,501 28,797 7,718 Primary NCPNCP1 4,875,349 1,236, ,059 1,910, , ,501 28,797 7,318 Line Tran LTNCP1 3,737,320 1,236, ,059 1,713, ,155 36,105 28,797 7,318 Secondary SNCP1 2,351,267 1,236, , ,075 16,716-28,797 7,318 4 NCP Classificat DNCP4 18,463,083 4,605,538 1,879,642 7,432,455 2,905,098 1,497, ,216 30,300 Primary NCPNCP4 17,919,247 4,605,538 1,879,642 6,888,620 2,905,098 1,497, ,216 30,300 Line Tran LTNCP4 13,584,586 4,605,538 1,879,642 6,177, , , ,216 30,300 Secondary SNCP4 8,544,838 4,605,538 1,879,642 1,853,387 63, ,216 30, NCP Classificat DNCP12 49,989,075 12,236,419 4,738,942 20,383,858 8,008,427 4,217, ,422 87,280 Primary NCPNCP12 41,919,238 12,236,419 4,738,942 12,314,021 8,008,427 4,217, ,422 87,280 Line Tran LTNCP12 30,578,349 12,236,419 4,738,942 11,043,650 1,757, , ,422 87,280 Secondary SNCP12 20,867,911 12,236,419 4,738,942 3,313, , ,422 87,280

24 2014 COST ALLOCATION Sheet O1 Revenue to Cost Summary Worksheet - Edit description in Sheet I2, cell C17 Page 14 of 15 Rate Base Assets Total Residential GS <50 GS - 50 to 999 GS - 1,000 to 4,999 Large Use >5MW Street Light Unmetered Scattered Load crev Distribution Revenue at Existing Rates $639,699,179 $269,780,773 $78,321,333 $192,983,695 $53,436,840 $26,473,751 $14,754,863 $3,947,925 mi Miscellaneous Revenue (mi) $19,025,518 $10,098,638 $3,851,607 $3,958,597 $662,347 $241,345 $99,494 $113,491 Miscellaneous Revenue Input equals Output Total Revenue at Existing Rates $658,724,697 $279,879,411 $82,172,939 $196,942,292 $54,099,187 $26,715,096 $14,854,357 $4,061,416 Factor required to recover deficiency (1 + D) Distribution Revenue at Status Quo Rates $712,777,010 $300,599,937 $87,268,590 $215,029,729 $59,541,347 $29,498,055 $16,440,426 $4,398,927 Miscellaneous Revenue (mi) $19,025,518 $10,098,638 $3,851,607 $3,958,597 $662,347 $241,345 $99,494 $113,491 Total Revenue at Status Quo Rates $731,802,527 $310,698,575 $91,120,197 $218,988,326 $60,203,694 $29,739,399 $16,539,920 $4,512,418 Expenses di Distribution Costs (di) $137,045,275 $54,936,852 $17,560,512 $40,885,446 $12,955,149 $6,436,584 $3,672,965 $597,767 cu Customer Related Costs (cu) $56,803,917 $34,317,190 $11,770,203 $9,012,060 $668,363 $106,233 $539,717 $390,152 ad General and Administration (ad) $104,306,267 $47,936,871 $15,425,504 $26,950,947 $7,428,644 $3,571,904 $2,457,944 $534,453 dep Depreciation and Amortization (dep) $185,288,222 $84,944,837 $23,301,683 $49,511,401 $13,871,279 $6,611,864 $6,113,495 $933,663 INPUT PILs (INPUT) $8,642,175 $3,918,937 $1,095,996 $2,287,253 $670,578 $325,091 $298,774 $45,545 INT Interest $102,520,411 $46,489,575 $13,001,590 $27,133,236 $7,954,931 $3,856,490 $3,544,299 $540,292 Total Expenses $594,606,267 $272,544,261 $82,155,489 $155,780,343 $43,548,944 $20,908,165 $16,627,194 $3,041,872 Direct Allocation $3,969,789 $0 $0 $306,615 $639,808 $3,023,366 $0 $0 NI Allocated Net Income (NI) $133,226,471 $60,413,745 $16,895,717 $35,259,956 $10,337,526 $5,011,553 $4,605,858 $702,116 Revenue Requirement (includes NI) $731,802,527 $332,958,005 $99,051,206 $191,346,915 $54,526,277 $28,943,085 $21,233,051 $3,743,988 Revenue Requirement Input equals Output Rate Base Calculation Net Assets dp Distribution Plant - Gross $5,303,738,463 $2,450,829,594 $679,182,963 $1,379,867,243 $386,336,091 $185,172,300 $193,129,637 $29,220,634 gp General Plant - Gross $869,796,403 $396,020,257 $110,722,539 $229,652,968 $66,371,188 $32,070,006 $30,338,110 $4,621,335 accum depaccumulated Depreciation ($2,735,847,208) ($1,280,652,183) ($351,981,387) ($701,434,732) ($191,556,198) ($91,216,450) ($103,447,103) ($15,559,155) co Capital Contribution ($317,035,815) ($150,529,584) ($42,019,655) ($82,359,632) ($19,398,849) ($8,863,282) ($12,041,176) ($1,823,638) Total Net Plant $3,120,651,842 $1,415,668,084 $395,904,460 $825,725,846 $241,752,233 $117,162,574 $107,979,469 $16,459,176 Directly Allocated Net Fixed Assets $40,094,892 $0 $0 $3,096,814 $6,462,076 $30,536,002 $0 $0 COP Cost of Power (COP) $2,393,120,235 $494,700,820 $198,064,301 $1,041,053,704 $455,716,318 $187,206,054 $11,143,761 $5,235,277 OM&A Expenses $298,155,459 $137,190,912 $44,756,219 $76,848,453 $21,052,156 $10,114,721 $6,670,625 $1,522,372 Directly Allocated Expenses $524,988 $0 $0 $40,548 $84,611 $399,829 $0 $0 Subtotal $2,691,800,682 $631,891,733 $242,820,520 $1,117,942,705 $476,853,085 $197,720,604 $17,814,386 $6,757,649 Working Capital $342,418,721 $80,381,716 $30,888,725 $142,211,314 $60,659,552 $25,151,653 $2,266,133 $859,627 Total Rate Base $3,503,165,455 $1,496,049,801 $426,793,186 $971,033,974 $308,873,861 $172,850,229 $110,245,602 $17,318,804 Rate Base Input equals Output Equity Component of Rate Base $1,401,266,182 $598,419,920 $170,717,274 $388,413,589 $123,549,544 $69,140,092 $44,098,241 $6,927,521 Net Income on Allocated Assets $133,226,471 $38,154,314 $8,964,708 $62,901,367 $16,014,943 $5,807,867 ($87,274) $1,470,546 Net Income on Direct Allocation Assets $1,014,830 $0 $0 $78,383 $163,560 $772,887 $0 $0 Net Income $134,241,300 $38,154,314 $8,964,708 $62,979,750 $16,178,502 $6,580,755 ($87,274) $1,470,546 RATIOS ANALYSIS REVENUE TO EXPENSES STATUS QUO% % 93.31% 91.99% % % % 77.90% % EXISTING REVENUE MINUS ALLOCATED COSTS ($73,077,830) ($53,078,594) ($16,878,267) $5,595,377 ($427,090) ($2,227,989) ($6,378,695) $317,428 Deficiency Input equals Output STATUS QUO REVENUE MINUS ALLOCATED COSTS $0 ($22,259,431) ($7,931,010) $27,641,411 $5,677,417 $796,314 ($4,693,132) $768,430 RETURN ON EQUITY COMPONENT OF RATE BASE 9.58% 6.38% 5.25% 16.21% 13.09% 9.52% -0.20% 21.23%

25 EB- Page 15 of COST ALLOCATION Sheet O2 Monthly Fixed Charge Min. & Max. Worksheet - Edit description in Sheet I2, cell C17 GS - 1,000 to Unmetered Summary Residential GS <50 GS - 50 to 999 Large Use >5MW Street Light 4,999 Scattered Load Customer Unit Cost per month - Avoided Cost $5.04 $13.40 $63.01 $ $ $0.44 $2.51 Customer Unit Cost per month - Directly Related $7.38 $20.33 $91.75 $ $ $0.73 $3.92 Customer Unit Cost per month - Minimum System wit $22.97 $44.44 $ $ $ $19.35 $18.15 Existing Approved Fixed Charge $22.25 $30.26 $53.28 $ $2, $1.62 $5.87