A return on net equity is an allowable cost for proprietary facilities. The allowable rate of return is the sum of the average midpoint of the prime interest rate and the average rate of 180-day United States treasury bills as reported on the last business day of June, September, December, and March, divided by two. The rate of return may not exceed ten percent.

Source: 16 SDR 26, effective August 13, 1989; 17 SDR 50, effective October 7, 1990; transferred from § 67:16:04:08.08, 21 SDR 8, effective July 25, 1994; 23 SDR 42, effective September 30, 1996; 24 SDR 185, effective July 6, 1998; 29 SDR 177, effective July 1, 2003; 29 SDR 177, adopted July 1, 2003, effective July 1, 2004.

General Authority: SDCL 28-6-1(2).

Law Implemented: SDCL 28-6-1(2).