Ill. Admin. Code tit. 83, § 285.4010 – Schedule D-1: Cost of Capital Summary

a) The utility shall provide a summary calculation of the weighted average cost of capital on a total company and jurisdictional basis; however, jurisdictional data is not required if the weights and costs of the components of the capital structure do not differ from total company data. Short-term debt shall be included in the capital structure unless the utility demonstrates that short-term debt is entirely financing assets, such as CWIP or seasonal working capital, that are not included in the utility’s rate base. For all classes shown, the amount, percentage of total, percentage cost, and weighted cost shall be provided. A summary shall be provided for each year from and including the last completed calendar or fiscal year through the capital structure measurement period. If the cost of capital shown on Schedule D-1 is not the same as that shown on Schedule A-2 required by Section 285.1005(a)(4), the utility shall provide an explanation for the difference.
b) The following supporting work papers and documents shall accompany Schedule D-1:
1. 1) Monthly balances for common equity for the most recent calendar or fiscal year through the end of the capital structure measurement period. Utilities using forecasted data that reflect proposed rates shall present both separate monthly balances for common equity at present rates and the monthly change in common equity produced by the proposed rates. Identify actual and forecasted data;
2. 2) A description of the company's capital structure objectives. If the company has conducted a study of those objectives, the company shall also provide a copy of that study;
3. 3) A separate description of each adjustment made to exclude any increment to the utility's cost of capital directly or indirectly resulting from the direct or indirect investment, loan, guarantee, or advance of moneys, property, or other resources to affiliates engaged in unregulated or non-utility activities. The utility shall also describe how its adjustments remove that increment to its cost of capital. If the utility believes no such adjustment to its rate of return is necessary, it shall describe the reasons for that belief; and
4. 4) A separate list of amounts invested in each unregulated and non-utility affiliate for each year from and including the last calendar or fiscal year through the capital structure measurement period.
c) Additional informational requirements for forecasted capital structures only:
1. 1) The weighted average cost of capital may be calculated using either present or proposed rates. In the latter case, however, the utility shall also present the schedules required in Subpart G based upon present rates if the choice of present or proposed rates affects the data incorporated in those schedules.
2. 2) The following schedules shall be provided if not already provided pursuant to Subpart J:
  1. A) Schedule D-1.1 shall provide the data described in Section 285.7005(a);
  2. B) Schedule D-1.2 shall provide the data described in Section 285.7010(a);
  3. C) Schedule D-1.3 shall include the principal assumptions used in preparing the forecasted capital structure data; and
  4. D) Schedule D-1.4 shall provide the data described in Section 285.7015(a). Schedule D-1.4 shall also explain any differences between the assumptions and methodologies used in the forecasted data reflected in Schedule D-1 and the assumptions and methodologies used in forecasts prepared for management or other entities.