Section Puc 607.03 - Generic Return on Equity(a) At least once during any 12-month period the commission shall establish a generic return to be applied to the equity invested in the small water system using the discounted cash flow methodology.(b) For the purposes of this section the commission shall assume that the DCF model is based on the concept that stockholders value a share of stock at the present value of the expected cash flow from that share of stock, and that cash flow will grow at the same rate from the present to perpetuity.(c) For the purposes of this section the sample of companies used in computing k shall consist of non-California water utilities listed in the most current issue of Value Line Investment Survey or other recognized financial source that have consistent data for at least a 10-period of time.(d) For the purposes of this section cash flow shall be measured using both dividends and earnings, with a 3:1 weighting of dividends to earnings, reflecting the view that investors discount that which they receive, but are also concerned with the source of the cash flow.N.H. Admin. Code § Puc 607.03
(See Revision Note at Chapter heading Puc 600) #6475, eff 3-25-97; ss by #8311, eff 3-25-05; ss by #10407, eff 9-10-13
Amended by Number 10, Filed March 7, 2024, Proposed by #13887, Effective 2/22/2024, Expires 4/22/2034 (See Revision Note # 1 and Revision Note #2 at chapter heading for Puc 600).