Florida Power & Light Company, 700 Universe Blvd, Juno Beach FL

Transcription

1 Florida Power & Light Company, 7 Universe Blvd, Juno Beach FL I=PL April 15, 214 Mr. Bart Fletcher Public Utilities Supervisor Division of Accounting and Finance Florida Public Service Commission 254 Shumard Oak Blvd. Tallahassee, FL Dear Mr. Fletcher: Enclosed is Florida Power & Light Company's Rate of Return Surveillance Report to the Florida Public Service Commission for February 214. This report was prepared using a thirteen month average and year-end rate base and adjustments consistent with Docket No EI, Order No. PSC S-EI. The required rate of return was calculated using the return on common equity as authorized in the aforementioned docket and order. The return on common equity is 11.22%. This report was prepared consistent with the guidelines provided in Commission Form PSC/ AF A 14. Sincerely, SoiL Stamm Director of Regulatory Accounting Enclosures Copy: J. R. Kelly, Office ofpublic Counsel l>..., n - r- ('"')... :Dia ::z: c:: :z:e ::: C::;)::t:> " ("")CJ ~~ :Zu; :..s:-ofri Cl1 ". ;;:c..-: --- c:orr-: GJ- C' Cf)r-- Ro:il:: j)-< "'r"/ :::r ~3(""),..,..., ;z-q )> -(/)c ''""-r"j ::: :z: "\ < ('"') n-; C") f't

2 EARNINGS SURVEILLANCE REPORT SUMMARY FEBRUARY, 214 SCHEDULE 1: PAGE 1 OF 1 ACTUAL PER BOOKS FPSC ADJUSTMENTS FPSC ADJUSTED PROFORMA ADJUSTMENTS PROFORMA ADJUSTED I. AVEM,~E RAT!;; QF RETURN (JURISDICTIONAL} NET OPERATING INCOME 1,782,223,47 (A) (175,471,559) (B) 1,66,751,488 4,91,597 1,611,653,84 RATE BASE 24,646,7,392 (629,382,85) 24,17,317,542 24,17,317,542 AVERAGE RATE OF RETURN 7.23% 6.69% 6.71% II. YEAR ENQ RATE OF RETURN (JURISDICTIONAL} NET OPERATING INCOME 1,782,223,47 (A) (173,766,5) (B) 1,68,457,42 4,91,597 1,613,358,638 RATE BASE 25,459,85,452 (89,225,629) 25,37,624,823 25,37,624,823 YEAR END RATE OF RETURN 7.% 6.34% 6.36% (A) INCLUDES AFUDC EARNINGS (B) INCLUDES REVERSAL OF AFUDC EARNINGS Ill. REQUIRED RATES OF RETURN AVERAGE CAPITAL STRUCTURE (FPSC ADJUSTED BASIS} LOW 5.89% MIDPOINT 6.36% HIGH 6.82% IV. FINANCIAL INTEGRITY INDICATORS A. TIMES INTEREST EARNED WITH AFUDC 6.17 (SYSTEM PER BOOKS BASIS) B. TIMES INTEREST EARNED WITHOUT AFUDC 5.99 (SYSTEM PER BOOKS BASIS) C. AFUDC AS PER CENT OF NET INCOME 4.9% (SYSTEM PER BOOKS BASIS) D. PERCENT OF CONSTRUCTION GENERATED INTERNALLY 8.12% (SYSTEM PER BOOKS BASIS) E. LTD TO INVESTOR FUNDS 38.6% (FPSC ADJUSTED BASIS) F. STD TO INVESTOR FUNDS 2.2% (FPSC ADJUSTED BASIS) G. RETURN ON COMMON EQUITY (AVERAGE) 11.22% (FPSC ADJUSTED) H. RETURN ON COMMON EQUITY 11.27% (PROFORMA ADJUSTED) NOTE: THIS REPORT HAS BEEN PREPARED USING A THIRTEEN MONTH AVERAGE AND END OF PERIOD RATE BASE AND ADJUSTMENTS CONSISTENT WITH DOCKET NO EI, ORDER NO. PSC EI. THIS REPORT DOES NOT NECESSARILY REPRESENT THE OPINION OF THE COMPANY AS TO THE ACTUAL EARNED RATE OF RETURN FOR THE PERIOD COVERED. I AM AWARE THAT SECTION 837.6, FLORIDA STATUES, PROVIDES: WHOEVER KNOWINGLY MAKES A FALSE STATEMENT IN WRITING WITH THE INTENT TO MISLEAD A PUBLIC SERVANT IN THE PERFORMANCE OF HIS OFFICIAL DUTY SHALL BE GUll TY OF A MISDEMEANOR OF THE SECOND DEGREE, PUNISHABLE AS PROV'QE'~I I_S. 77~.82,~. OR S KIMBERLY OUSDAHL (VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER),.., II I.,J, 'I.-IM~~

3 EARNINGS SURVEILLANCE REPORT SUMMARY FEBRUARY, 214 SCHEDULE 1: PAGE 1 OF 1 ACTUAL PER BOOKS FPSC ADJUSTMENTS FPSC ADJUSTED PROFORMA ADJUSTMENTS PROFORMA ADJUSTED I. AVERA!2E RATE OF RETURN (JURISDICTIQNALl NET OPERATING INCOME 1,782,223,47 (A) (175,471,!159) (B) 1,66,751,488 4,91,597 1,611,653,84 RATE BASE 24,846,7,392 (629,382,85) 24,17,317,542 24,17,317,542 AVERAGE RATE OF RETURN 7.23% 6.69% 6.71% II. YEAR END R/',TE QF RETURN (JURISDICTIONAL) NET OPERATING INCOME 1,782,223,47 (A) (173,766,5) (B) 1,68,457,42 4,91,597 1,613,358,638 RATE BASE 25,459,85,452 (89,225,629) 25,37,624,823 25,37~823 YEAR END RATE OF RETURN 7.% 6.34% 6.36% (A) INCLUDES AFUDC EARNINGS (B) INCLUDES REVERSAL OF AFUDC EARNINGS Ill. REQUIRED RATES QF RETURN AVERAGE CAPITAL STRUCTURE (FPSC ApJUSTED BASIS) LOW 5.89% MIDPOINT 6.36% HIGH 6.82% IV. FINANCIAL INTEGRITY INDICATORS A. TIMES INTEREST EARNED WITH AFUDC 6.17 (SYSTEM PER BOOKS BASIS) B. TIMES INTEREST EARNED WITHOUT AFUDC 5.99 (SYSTEM PER BOOKS BASIS) C. AFUDC AS PER CENT OF NET INCOME 4.9% (SYSTEM PER BOOKS BASIS) D. PERCENT OF CONSTRUCTION GENERATED INTERNALLY 8.12% (SYSTEM PER BOOKS BASIS) E. LTD TO INVESTOR FUNDS 38.6% (FPSC ADJUSTED BASIS) F. STD TO INVESTOR FUNDS 2.2% (FPSC ADJUSTED BASIS) G. RETURN ON COMMON EQUITY (AVERAGE) 11.22% (FPSC ADJUSTED) H. RETURN ON COMMON EQUITY 11.27% (PROFORMA ADJUSTED) NOTE: THIS REPORT HAS BEEN PREPARED USING A THIRTEEN MONTH AVERAGE AND END OF PERIOD RATE BASE AND ADJUSTMENTS CONSISTENT WITH DOCKET NO EI, ORDER NO. PSC S-EI. THIS REPORT DOES NOT NECESSARILY REPRESENT THE OPINION OF THE COMPANY AS TO THE ACTUAL EARNED RATE OF RETURN FOR THE PERIOD COVERED. I AM AWARE THAT SECTION 837.6, FLORIDA STATUES, PROVIDES: WHOEVER KNOWINGLY MAKES A FALSE STATEMENT IN WRITING WITH THE INTENT TO MISLEAD A PUBLIC SERVANT IN THE PERFORMANCE OF HIS OFFICIAL DUTY SHALL BE GUILTY OF A MISDEMEANOR OF THE SECOND DEGREE, PUNISHABLE AS PROVIDED IN S , S , OR S KIMBERLY OUSDAHL (VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER) (SIGNATURE) (DATE)

4 FLORIDA POVIIER & LIGHT COMPANY AVERAGE RATE OF RETURN RATE BASE FEBRUARY, 214 SCHEDULE 2: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATION NET CONSTRUCTION PLANT IN PROPERTY HELD WORK IN SERVICE FOR FUTURE USE PROGRESS NET WORKING NUCLEAR FUEL UTILITY PLANT CAPITAL RATE BASE SYSTEM PER BOOKS 36,288,581,232 12,921,258,1 23,367,323, ,665,42 2,36,13,7 677,664,492 26,313, (1,63,79, 166) 25,249,875,55 JURISDICTIONAL PER BOOKS 35,213,167,7 11,715,8,643 23,497,366, ,969, ,66,799 26,357,636,229 (1,71,935,837) 24,646,7,392 FPSC ADJUSTMENTS {2,155,212,242) {311,721,169) (SEE SCHEDULE 2, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 33,57,954,765 11,44,79,675 {1,643,491,73) {1,489,155,215) 21,653,875,91 223,969, ,464,556 (3,332,646,288) 2,73,263,438 (629,382,85) 66,66,799 23,24,989, ,327,61 24,17,317,542 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 33,57,954,765 11,44,79,675 21,653,875,91 223,969, ,464,556 66,66,799 23,24,989, ,327,61 24,17,317,542 NOTE: THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL OF THE PROFORMA ADJUSTMENTS THAT WOULD BE MADE IN A BASE RATE FILING.

5 AVERAGE RATE OF RETURN INCOME STATEMENT FEBRUARY, 214 SCHEDULE 2: PAGE 2 OF 3 OPERATING REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INCOME TAXES ~ INVESTMENT TAX CREDIT (NED (GAIN)/LOSS ON DISPOSITION OPERATING EXPENSES NET OPERATING INCOME(A) SYSTEM PER BOOKS 1,541,186,926 3,99,343, ,219,393,292 1 '14,993, ,12, (1261,472) ,738,339,244 JURISDICTIONAL PER BOOKS 1,333,372,61 3,822,499, ,13,797, ,742, ,2, ,82 (1,249,97} 8,627,2?1,921 1,76,1,141 FPSC ADJUSTMENTS FRANCHISE REVENUE (454,457,892) FRANCHISE EXPENSE GROSS RECEIPTS TAX (238,317,327) FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REC RETAIL (3,38,827, 178) CONSERVATION COST RECOVERY (134,321,711) CAPACITY COST RECOVERY (693,536,181) ENVIRONMENTAL COST RECOVERY (215,68,85) OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY (113,9,472) GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION FPSC ADJUSTMENTS (5, 156,428,845) (343,17) (1,552,743) (14,379) (195,271) (34,61,532) (3,286,62, 164) (1,541,116) (122,584, 18) (511,955, 167) (63, 172, 153) (22,439,44) (71,215) 1,54,234 (3,798,17,331) (254,674,81) (7,677, 734) (122,28,7) (56,653,41) (917,78) (92,223,553) (279,752,88) (11,688,657) (442,769, 138) (235,986,317) (2,31,79) (1,594,68) (62,872) (282,) (695,242,761) (17,798,232) 17,798,195 (127,687) 132, ,97 4,284 75,326 13,347,541 84,,531 2,192,63 (22,9, 178) (52,375,425) 354,34 (8,91,378) (594,145) 26,911,177 24,454,912 (67,828,15) (3,151,473) 23,742,241 (168,424) (6,957,119) (54,36,79) 513, ,395 (162,486,889) (271,971,3) (271,97,943) 271,97,943 (236, 114,4) (23,323) (21,698) 21,698 (953,772) 953,772 (84,115) 84,115 (119,945) 119,945 (21,253,991) 21,253,991 (3,32,732,473) (6,94,74) (132,794,852) (1,526,859) (696,295,828) 2,759,647 (131,42,936) (83,665, 149) (563,747) 563,747 (11,16,145) (12,884,327) 946,89 (946,89) 19,954,58 (19,954,58) (5,57,8, 192) (99,348,653) FPSC ADJUSTED 5,176,943,216 24,481,986 1,399,65,759 98,913, ,554, ,197, ,66, ,82 (735,72} 3,57,191,729 1,66,751,486 PRO FORMA ADJUSTMENTS 7,985,557 (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 5, 184,928,773 24,481,986 1,399,65,759 98,913,353 5,75 435,56,484 3,78, ,275, ,66, ,82 (735,72) 3,83,96 4,91,597 3,573,275,689 1,611,653,84 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 78,69,876 AND THE JURISDICTIONAL NOI BY 76,122,96 (B) ECONOMIC DEVELOPMENT COSTS RELATED TO THE PERIOD ARE: ON A COMPANY BASIS 2,128,55 ON A JURISDICTIONAL BASIS 2,87,575 CURRENT MONTH AMOUNT SYSTEM PER BOOKS 795,828,981 JURISDICTIONAL PER BOOKS 769,848, ,9, ,529,324 37,627, '14,61 15,771,379 13,16,829 9,19,83 89,153,51 38,782,872 35,73,448 8,3,446 7,347,526 82,718 8,83 (99,845) (99,84) 681,286, ,542, ,648,189 16,2,663 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

6 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS FEBRUARY, 214 SCHEDULE 2: PAGE 2A OF 3 OPERATION & MAINTENANCE OPERATING FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING (NET_)_ (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1) 7,985,557 5,75 3,78,211 3,83,96 4,91,597 PROFORMA ADJUSTMENTS 7,985,557 5,75 3,78,211 3,83,96 4,91,597 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

7 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS FEBRUARY, 214 SCHEDULE 2: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY 1,437,46,739 66,312,837 1,43,223,13 643,993,843 CAPITALIZED EXECUTIVE COMPENSATION 2,24,532 2,162,94 LOAD CONTROL 38,69,56 38,69,56 ASSET RETIREMENT OBLIGATION CAPITAL LEASES 1,56,41 58,44,741 2,26,715,314 9,862,818 57,28,418 2,155,212,242 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL ACCUM PROV DECOMMISSIONING COSTS (75,513,47) (3,412,12,22) (73,735,698) (3,324, 174,68) ASSET RETIREMENT OBLIGATION 46,665,194 45,766,863 ASSET RETIREMENT OBLIGATION DECOMMISSIONING 3,162,597,563 3,11,715,852 AVIATION- RESERVE FUEL AND CAPACITY (39,363,625) (38,494,565) OTHER RATE CASE ADJUSTMENTS (1) (72,44) (7,598) LOAD CONTROL CAPITAL LEASES (19,552,269) (3,239,38) (34,579,829) (19,552,269) (3, 176,685) (311,721,169) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS CWIP- CAPACITY & ECRC 1,476,7,13 52,52,917 1,528,51,47 1,437,889,91 51,266,124 1,489,155,215 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (2,765,367,693) (2,73,263,438) ADJUSTMENTS 629,277, ,382,85 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

8 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT FEBRUARY, 214 SCHEDULE 2: PAGE 3A OF 3 SYSTEM PER BOOKS OPERATING REVENUES 1,541,186,926 OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME 3,99,343, ,219,393,292 1,14,993,691 INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)JLOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING (NET) (NET) DISPOSITION EXPENSES INCOME(A) ,344,555 48,196 (1,261,472) 8,82,847,682 1 '738,339,244 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION - EXPENSES EXECUTIVE COMPENSATION ADVERTISING EXPENSES FUEL COST REC RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZA TION FPSC ADJUSTMENTS (454,457,892) (236,317,327) (3,381,947, 177) (134,321,711) (693,886,545) (215,68,85) (113,9,472) (5,229,679,29) (11,686,657) (442,769, 138) (235,986,317) (349,75) (1,583,22) (16,428) (199,14) (35,28, 74) (3,38, 783,27) (1,773,893) (2, 31' 79) (122,564,18) (7,677,734) (1,594,68) (523,447, 71) (64,546,61) (122,28, 7) (624,67) (22,99, 726) (58,18,624) (285,65) (941,254) (715,94) (92,223,553) 1,57,467 (3,884,23,98) (257,539,53) (281,141,884) (695,249,2) (17,798,232) 17,798,195 (127,687) 134,916 61,727 41,54 76,84 13,89,532 64,768,898 2,192,63 (17,95,) (51,639,584) 363,89 (8,85,712) (65,88) 27,326,995 31,59,79 (182,486,889) (271,971,3) (271,97,943) 271,97,943 (236, 114,4) (23,323) (214,834) 214,834 (972,493) 972,493 (65,373) 65,373 (122,299) 122,299 (21,671,173) 21,671,173 (67,98,962) (3,376,978,935) (4,968,241) (3,151,473) (132,794,852) (1,526,859) 23,742,241 (74,251,296) 1,564,751 (166,424) 525,77 (132,574,654) (82,493,43) (578,165) 578,165 (11,25, 168) (12,875,34) 964,659 (964,659) (7,93,676) 2,233,319 (2,233,319) --- (54,578,294) 525,77 (5, 14,623, 12) (89,58,17) FPSC ADJUSTED 5,311,57,717 25,112, ,894, ,251, ,744, ,711, ,786,261 48,196 (735,72) 3,662,224,58 1,649,283,137 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 3C OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 7,985,557 5,319,493,274 5,75 25,112,89 1,429,894, ,251, ,75,421 3,78, ,789,421 3,83,96 4,91, ,766,261 48,196 (735,72) 3,665,38,54 1,654,184,734 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 78,69,876 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

9 AVERAGE RATE OF RETURN SYSTEM ADJUSTMENTS FEBRUARY, 214 SCHEDULE 2: PAGE 3B OF 3 WORKING CAPITAL ADJUSTMENTS SYSTEM JURISDICTIONAL ADJUSTMENTS TO ASSETS PER BOOKS: ACCOUNTS RECEIVABLE- ASSOC COS 18,626,87 18,253,587 INTEREST & DIVIDENDS RECEIVABLE 447, ,34 ACCTS RECEIVABLE- TAX REFUND NET UNDERRECOVERED FUEL, CAPACITY,ECCR, ECRC 132,718,33 132,584,783 CASH CAPITAL SUB ACCOUNT POLE ATTACHMENTS RENTS RECEIVABLE 14,851,474 14,553,9 PREPAYMENTS- ECCR 8,714,453 8,714,453 PREPAYMENTS- INTEREST ON COMMERCIAL PAPER 11,14,865 1,863,25 RATE CASE EXPENSE 4,877 4,877 TEMPORARY CASH INVESTMENTS 1,751,116 1,535,699 ASSET RETIREMENT OBLIGATION STORM DEFICIENCY RECOVERY 61,338,946 61,338,946 NUCLEAR COST RECOVERY 7,29,11 7,29,11 JOBBING ACCOUNTS 13,31,714 13,35,191 ADJUSTMENTS TO ASSETS PER BOOKS 828,32, ,747,873 ADJUSTMENTS TO LIABILITIES PER BOOKS: ACCOUNTS PAYABLE- ASSOC COS ACCUM DEFERRED RETIREMENT BENEFITS (71,337) (69,963) ACCUM. PROV. - PROPERTY & STORM INSURANCE (12,997,883) (12,997,883) ACCUM. PROV.- RATE REFUNDS (1,285) GAIN ON SALE OF EMISSION ALLOWANCE (835,462) (815,798) JOBBING ACCOUNTS (14,575,12) (14,282,977) PAYABLE TO NUCLEAR DECOMMISSIONING FUND LEHMAN HEDGE POLE ATTACHMENT RENTS PAYABLE (7,654,779) (7,51,43) PREFERRED STOCK DIVIDENDS ACCRUED SJRPP ACCELERATED RECOVERY (49,673,959) (48,438,19) STORM DEFICIENCY RECOVERY ASSET RETIREMENT OBLIGATION (3,219,319,334) (3,157,345,698) MARGIN CALL CASH COLLATERAL NUCLEAR COST RECOVERY (18,559,57) (18,559,57) TRANSMISSION RELIABILITY ENHANCEMENT ADJUSTMENTS TO LIABILITIES PER BOOKS (3,593,688,622) (3,53,11,311) NET ADJUSTMENTS TO WORKING CAPITAL PER BOOKS {2, 765,367,693) {2,73,263,438)

10 AVERAGE RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS FEBRUARY, 214 SCHEDULE 2: PAGE 3C OF 3 OPERATION & MAINTENANCE OPERATING FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN}ILOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING (NET} (NET} DISPOSITION EXPENSES INCOME(A} WEATHER NORMALIZATION ADJUSTMENT (1} 7,985,557 5,75 3,78,211 3,83,96 4,91,597 PROFORMA ADJUSTMENTS 7,985,557 5,75 3,78,211 3,83,96 4,91,597 FOOTNOTES: (1} ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

11 YEAR END RATE OF RETURN RATE BASE FEBRUARY, 214 SCHEDULE 3: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIATION & AMORTIZATIQti_ NET CONSTRUCTION PLANT IN PROPERTY HELD IIVORKIN SERVICE FOR FUTURE USE PROGRESS NET IIVORKING NUCLEAR FUEL UTILITY PLANT CAPITAL RATE BASE SYSTEM PER BOOKS 37,141,75,33 13,28,657,229 23,933,48, ,151,68, ,83,34,825 (1,63,79,186) 26,19,514,639 JURISDICTIONAL PER BOOKS 36,4,194,333 11,932,259,76 24,17,935, ,599,435 2,91,752, (1,71,935,83TI , FPSC ADJUSTMENTS (1,592,868,35) (345,317,377) (SEE SCHEDULE 3, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 34,447,326,297 11,586,941,699 (1,247,55,658) (1,544,938,49) 22,86,384, ,599, ,813,751 (2, 792,489.!l67l 2, 73,263,438 (89,225,629) 734,499,437 24,378,297, ,327,61 25,37,624,823 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 34,447,326,297 11,586,941,699 22,86,384, ,599, ,813, ,499,437 24,378,297, ,327,61 25,37,624,823

12 YEAR END RATE OF RETURN INCOME STATEMENT FEBRUARY, 214 SCHEDULE 3: PAGE 2 OF 3 OPERATING REVENUES OPERATION & MAINTENANCE TAXES OTHER FUEL& DEPRECIATION & THAN NET INTERCHANGE OTHER AMORTIZATION INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)/LOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING (NET) ~ DISPOSITION EXPENSES INCOME(A) SYSTEM PER BOOKS 1,541,186,926 3,99,343,68 1,687,433,93 1,219,393, ,12, ,344, (1,261,472) 8,82,847,682 1,738,339,244 JURISDICTIONAL PER BOOKS 1,333,372,61 3,822,499,317 1,654,325, ,2, ,82 (1,249,9J) 8,627,271,921 1,76,1,141 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REC RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION FPSC ADJUSTMENTS (454,457,892) (236,317,327) (3, 38,827, 178) (134,321,711) (693,536,181) (215,68,85) (113,9,472) (5,156,428,845) (11,688,657) (442,769,138) (235,986,317) (343,17) (1,552,743) (14,379) (195,271) (34,61,532) (3,286,62,164) (1,541,116) (2,31,79) (122,564,18) (7,677,734) (1,594,68) (511,955,167) (63, 172, 153) (122,28,7) (62,872) (22,439,44) (56,653,41) (282,) (917,78) (71,215) (92,223,553) 1,54,234 (3,798,17,331) (254,674,81) (279,752,88) (695,242, 761) (17,798,232) 17,798,195 (127,687) 132, ,97 4,264 75,326 13,347,541 64,,531 2,192,63 (22,9,178) (52,375,425) 354,34 (8,91,378) (594,145) 25,25,622 22,749,358 (182,486,689) (271,971,3) (271,97,943) 271,97,943 (236, 114,4) (23,323) (21,698) 21,698 (953,772) 953,772 (84,115) 64,115 (119,945) 119,945 (21,253,991) 21,253,991 (67, 828, 15) (3, 32, 732,473) (6,94,74) (3, 151,473) (132,794,852) (1,526,859) 23,742,241 (696,295,828) 2,759,647 (186,424) 513,395 (131,42,936) (83,665, 149) (563,747) 563,747 (11,16, 145) (12,884,327) 948,89 (946,89) (6,957, 119) 18,248,53 (18,248,53) (54,36,79) 513,395 (5,58,785,748) (97,643,99) FPSC ADJUSTED 5,176,943,216 24,481,986 1,399,65,759 98,913, ,554, ,491, ,66, ,82 (735,72) 3,568,486,174 1,68A57,42 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 7,985,557 5,184,928,773 5,75 24,481,986 1,399,65,759 98,913, ,56,464 3,78, ,57,25 3,83,96 4,91, ,66, ,82 (735,72) 3,571,57,135 1,613,358,638 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY AND THE JURISDICTIONAL NOI BY 78,69,876 76,122,96 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

13 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS FEBRUARY, 214 SCHEDULE 3: PAGE 2A OF 3 OPERATION & MAINTENANCE OPERATING FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING ~ (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1). 7,985,557 5,75 3,78,211 3,83,96 4,91,597 PROFORMA ADJUSTMENTS 7,985,557 5,75 3,78,211 3,83,96 4,91,597 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

14 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS FEBRUARY, 214 SCHEDULE 3: PAGE 3 OF 3 RATE BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL FUEL AND CAPACITY 1,473,157,486 33,632,511 1,438,483,822 32,95,857 CAPITALIZED EXECUTIVE COMPENSATION 3,844,239 3,77,236 LOAD CONTROL 4,327,13 4,327,13 ASSET RETIREMENT OBLIGATION CAPITAL LEASES 2,495,234 58,44,741 1,629,861,223 2,1,69 57,28,418 1,592,868,35 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL ACCUM PROV DECOMMISSIONING COSTS (1 3,11,162) (3,572,657,462) (1,586,592) (3,48,591, 91) ASSET RETIREMENT OBLIGATION 47,555,291 46,639,826 ASSET RETIREMENT OBLIGATION DECOMMISSIONING AVIATION- RESERVE FUEL AND CAPACITY OTHER RATE CASE ADJUSTMENTS (1) LOAD CONTROL CAPITAL LEASES 3,311,285,33 (33,632,511) (941,254) (2,735,724) (3,834,167) (375,971,956) 3,247,541,8 (32,95,857) (917,78) (2,735,724) (3,76,357) (345,317,377) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS CWIP- CAPACITY & ECRC 1,519,694,974 66,417,849 1,586,112,823 1,48,89,664 64,848,745 1,544,938,49 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (2,765,367,693) (2,73,263,438) ADJUSTMENTS 74,634,398 89,225,629 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI.

15 YEAR END RATE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT FEBRUARY, 214 SCHEDULE 3: PAGE 3A OF 3 OPERATING REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER TAXES OTHER DEPRECIATION & THAN INCOME TAXES AMORTIZATION INCOME CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING (NET) (NET) DISPOSITION EXPENSES INCOME(A) -- SYSTEM PER BOOKS 1,541,186,926 3,99,343, ,219,393, ,12, ,344,555 48,196 (1,261,472) 8,82,84I,682 1,738,339,244 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION- EXPENSES EXECUTIVE COMPENSATION FUEL COST REC RETAIL CONSERVATION COST RECOVERY CAPACITY COST RECOVERY ENVIRONMENTAL COST RECOVERY OTHER RATE CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION (454,457,892) (236,317,327) (3,381,947, 177) (134,321,711) (693,686,545) (215,68,85) (113,9,472) (349,75) (1,583,22) (16,428) (199,14) (35,29,74) (3,36,783,27) (1,773,893) (122,564,18) (523,447,71) (64,546,61) (22, ) (715,94) 1,57,467 (11,688,657) (17,798,232) (442, 769, 138) 17,798,195 (235,986,317) (127,687) 134,916 61,727 41,54 76,84 13,69,532 (2,31,79) 64,788,898 (7,677,734) (1,594,68) 2,192,63 (122,28,7) (624,67) (17,95,) (58,18,624) (285,65) (51,639,584) (941,254) 363,89 (92,223,553) (8,85, 712) (65,88) 25,926,229 (182,486,689) (271,971,3) (271,97,943) 271,97,943 (236, 114,4) (23,323) (214,834) 214,834 (972,493) 972,493 (65,373) 65,373 (122,299) 122,299 (21,671,173) 21,671,173 (67,98,962) (3,376,978,935) (4,968,241) (3, 151,473) (132,794,852) (1,526,859) 23,742,241 (74,251,296) 1,584,751 (166,424) 525,77 (132,574,654) (82,493,43) (578,165) 578,165 (11,25, 168) (12,875,34) 964,659 (964,659) (7,93,676) 18,832,553 (18,832,553) FPSC ADJUSTMENTS (5,229,679,29) (3,884,23,98) (257,539,53) (281,141,864) (695,249,2) 3,19,24 (54,578,294) 525,77 (5, 142,23,867) (87,655,341) FPSC ADJUSTED 5,311,57,717 25,112,89 1,429,894, ,251, ,744, ,31, ,766,261 48,196 (735,7:11 3,66,82~,815 1,65,68~,92 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 3, PAGE 38 OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 7,985,557 5,319,493,274 25,112, ,894,427 5,75 3,78, ,251, ,75, ,388,656 3,83,96 4,91, ,766,261 48,196 (735,72) 3,663,97,775 1,655,585,499 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 78,69,876 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION/DISMANTLEMENT RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER ORDER NO. PSC S-EI. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE RATE FILING.

16 YEAR END RATE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS FEBRUARY, 214 SCHEDULE 3: PAGE 3B OF 3 OPERATION & MAINTENANCE OPERATING FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME INCOME TAXES CURRENT DEFERRED INVESTMENT (GAIN)ILOSS NET INCOME TAXES TAX CREDIT ON OPERATING OPERATING ~ (NET) DISPOSITION EXPENSES INCOME(A) WEATHER NORMALIZATION ADJUSTMENT (1) 7,985,557 5,75 3,78,211 3,83,96 4,91,597 PROFORMA ADJUSTMENTS 7,985,557 5,75 3,78,211 3,83,96 4,91,597 FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

17 CAPITAL STRUCTURE FPSC ADJUSTED BASIS FEBRUARY, 214 SCHEDULE 4: PAGE 1 OF 2 LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED SYSTEM RETAIL ADJUSTMENTS ADJUSTED RATIO RATE COST RATE COST RATE COST AVERAGE PER BOOKS PER BOOKS PRO RATA SPECIFIC RETAIL (%) (%) (%) (%) (%) (%) (%) _ LONG TERM DEBT 7,668,328,859 7,487,134,429 48,14,44 (439,778,528) 7,95,495, % 4.79% 1.42% 4.79% 1.42% 4.79% 1.42% SHORT TERM DEBT 418,532,12 48,116,631 2,787,819 () 41,94, % 1.96%.3% 1.96%.3% 1.96%.3% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 11,344,421,614 11,62,17,7 75,564,556 () 11,137,671, % 9.5% 4.41% 1.5% 4.87% 11.5% 5.33% CUSTOMER DEPOSITS 425,586, ,69,94 2,97,39 428,516, % 2.6%.4% 2.6%.4% 2.6%.4% DEFERRED INCOME TAX 5,224,616,624 5,99,38,54 33,54,8 (189,282,191) 4,943,566, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 168,389, ,424,664 7,889 (163,269,828) 1,162,724.% 7.67%.% 8.28%.% 8.89%.% 25,249,875,55 24,646,7, ,947,696 (792,33,546) 24,17,317,542 1.% 5.89% 6.36% 6.82% LOWPOINT MIDPOINT HIGHPOINT COST WEIGHTED COST WEIGHTED COST WEIGHTED SYSTEM RETAIL ADJUSTMENTS ADJUSTED RATIO RATE COST RATE COST RATE COST YEAREND PER BOOKS PER BOOKS PRO RATA SPECIFIC RETAIL (%) (%) (%) (%) (%) (%) (%) LONG TERM DEBT 7,842,44,335 7,675,327,522 25,163,523 (439, 194,856) 7,441,296, % 4.74% 1.39% 4.74% 1.39% 4.74% 1.39% SHORT TERM DEBT 54,54,195 53,287,315 1,51,836 54,798,152.22%.12%.%.12%.%.12%.% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 11,977,675,729 11,71,257,93 332,16,821 12,42,274, % 9.5% 4.51% 1.5% 4.98% 11.5% 5.46% CUSTOMER DEPOSITS 398,959,21 399,25,738 11,313,436 () 41,339, % 2.13%.3% 2.13%.3% 2.13%.3% DEFERRED INCOME TAX 5,578,86,918 5,458,418, ,393,969 (189,282,191) 5,418,53, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 167,524, ,533,422 93,362 (16,24,529) 3,366,255.1% 7.66%.% 8.3%.% 8.92%.% 26,19,514,639 25,459,85, ,491,947 (788,717,576) 25,37,624,823 1.% 5.93% 6.41% 6.88% NOTE: (1) INVESTMENT TAX CREDITS COST RATES ARE BASED ON THE WEIGHTED AVERAGE COST OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

18 CAPITAL STRUCTURE PROFORMA ADJUSTED BASIS FEBRUARY, 214 SCHEDULE 4: PAGE 2 OF 2 LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE COST RATE COST RATE COST AVERAGE ADJUSTED ADJUSTMENTS ADJUSTED (%) (%) (%) (%) (%) (%) (%) LONG TERM DEBT 7,95,495,945 7,95,495, % 4.79% 1.42% 4.79% 1.42% 4.79% 1.42% SHORT TERM DEBT 41,94,45 41,94, % 1.96%.3% 1.96%.3% 1.96%.3% PREFERRED STOCK -.%.%.%.%.%.%.% COMMON EQUITY 11,137,671,626 11,137,671, % 9.5% 4.41% 1.5% 4.87% 11.5% 5.33% CUSTOMER DEPOSITS 428,516,43 () 428,516, % 2.6%.4% 2.6%.4% 2.6%.4% DEFERRED INCOME TAX 4,943,566,394 () 4,943,566, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 1,162,724 () 1,162,724.% 7.67%.% 6.26%.% 6.69%.% 24,17,317,542 24,17,317,542 1.% 5.69% 6.36% 6.62% LOWPOINT MIDPOINT HIGH POINT COST WEIGHTED COST WEIGHTED COST WEIGHTED FPSC PRO-FORMA PRO-FORMA RATIO RATE COST RATE COST RATE COST YEAR END ADJUSTED ADJUSTMENTS ADJUSTED (%) (%) (%) (%) (%) (%) (%) LONG TERM DEBT 7,441,296,169 () 7,441,296, % 4.74% 1.39% 4.74% 1.39% 4.74% 1.39% SHORT TERM DEBT 54,796,152 54,796,152.22%.12%.%.12%.%.12%.% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 12,42,274,724 12,42,274, % 9.5% 4.51% 1.5% 4.96% 11.5% 5.46% CUSTOMER DEPOSITS 41,339,174 () 41,339, % 2.13%.3% 2.13%.3% 2.13%.3% DEFERRED INCOME TAX 5,418,53,329 5,416,53, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 3,366,255 () 3,386,255.1% 7.68%.% 6.3%.% 6.92%.% 25,37,624,823 () 25,37,624,623 1.% 5.93% 6.41% 6.88% NOTE: (1) INVESTMENT TAX CREDITS COST RATES ARE BASED ON THE WEIGHTED AVERAGE COST OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

19 FEBRUARY, 214 SCHEDULE 5: PAGE 1 OF 2 A. TIMES INTEREST EARNED WITH AFUDC D. PERCENT INTERNALLY GENERATED FUNDS EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC TIMES INTEREST EARNED WITH AFUDC 1,87,993,434 24,968, ,2,45 2,694,964,36 436,649, NET INCOME PREFERRED DIVIDENDS DECLARED COMMON DIVIDENDS AFUDC (DEBT & OTHER) DEPRECIATION AND AMORTIZATION EXPENSE DEFERRED INCOME TAXES INVESTMENT TAX CREDITS OTHER SOURCE/USES OF FUNDS INTERNALLY GENERATED FUNDS 1,396,312,117 (1,7,,) (78,69,876) 1,219,393, ,78,167 48,196 (127,966,85) 1,925,227,91 CONSTRUCTION EXPENDITURES 2.4~.828,594 B. TIMES INTEREST EARNED WITHOUT AFUDC PERCENT INTERNALLY GENERATED FUNDS 8.12% EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION INCOME TAXES INTEREST CHARGES EXCLUDING DEBT AFUDC 1,87,993,434 (53,1 1,49) 862,2,45 2,616,894,43 436,649,784 E. LONG TERM DEBT AS A PERCENT OF INVESTOR CAPITAL TIMES INTEREST EARNED WITHOUT AFUDC 5.99 F. SHORT TERM DEBT AS A PERCENT OF INVESTOR CAPITAL C. PERCENT AFUDC TO NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION X (1 -INCOME_TAX_RATE) SUB ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION 24,968, ,336,881 53,11,49 68,438,29 AVERAGE RETAIL AMOUNTS JURIS ADJUSTED LONG TERM DEBT JURIS ADJUSTED SHORT TERM DEBT JURIS ADJUSTED PREFERRED STOCK JURIS ADJUSTED COMMON STOCK LTD TO INVESTOR FUNDS STD TO INVESTOR FUNDS 7,95,495, ,94,45 11,137,671,626 18,644,72, % 2.2% NET INCOME AVAILABLE FOR COMMON 1,396,312,117 AFUDC AS PER CENT OF NET INCOME 4.9% G. FPSC ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY FPSC RATE OF RETURN 6.69% FOOTNOTES CLAUSE OVER/UNDER RECOVERY GAINS ON DISPOSITION OF PROPERTY LONG TERM DEBT RETIREMENTS & REDEMPTIONS INCREASE/DECREASE IN DECOMMISSIONING FUNDS (126,699,1 1) (1,267,73) (127,966,85) LESS: RECONCILED AVG. RETAIL WEIGHTED COST RATES FOR: LONG TERM DEBT SHORT TERM DEBT PREFERRED STOCK CUSTOMER DEPOSITS TAX CREDITS- WTD COST SUB DIVIDED BY COMMON EQUITY RATIO 1.42%.3%.%.4%.% 1.49% 5.2% 46.37% -INCLUDES EXPENDITURES FOR NUCLEAR FUELS OF: JURISDICTIONAL RETURN ON COMMON EQUITY 11.22%

20 FINANCIAL INTEGRITY INDICATORS FEBRUARY, 214 SCHEDULE 5: PAGE 2 OF 2 H. PROFORMA ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY PRO FORMA RATE OF RETURN 6.71% LESS: AVERAGE RETAIL WEIGHTED COST RATES FOR: LONG TERM DEBT 1.42% SHORT TERM DEBT.3% PREFERRED STOCK.% CUSTOMER DEPOSITS.4% TAX CREDITS- WTD COST.% SUB 1.49% PRO FORMA ROR LESS NON EQUITY COST 5.22% PRO FORMA COMMON EQUITY RATIO 46.37% PRO FORMA RETURN ON COMMON EQUITY 11.27%