REGULATORY ENVIRONMENT (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of decisions in regulatory order

The new rates became effective January 1, 2020. The final order reflects the following:


2020 Effective rate increase
Electric (1) (2)	$	15.8	million	/	1.6%
Gas (3)	$	4.3	million	/	1.4%

ROE	10.0%

Common equity component average on a financial basis	52.5%

(1) Amount is net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impact. The rate order reflects the majority of the unprotected deferred tax benefits from the Tax Legislation being amortized over two years. Approximately $11 million of tax benefits were amortized in 2020 and approximately $39 million will be amortized in 2021. Unprotected deferred tax benefits by their nature are eligible to be returned to customers in a manner and timeline determined to be appropriate by the PSCW.

(2) The rate order is net of $21 million of refunds related to our 2018 earnings sharing mechanism. These refunds will be made to customers evenly over two years, with half returned in 2020 and the remainder being returned in 2021.

(3) Amount is net of certain deferred tax benefits from the Tax Legislation that were utilized to reduce near-term rate impact. The rate order reflects all of the unprotected deferred tax benefits from the Tax Legislation being amortized evenly over four years, which results in approximately $5 million of previously deferred tax benefits being amortized each year. Unprotected deferred tax benefits by their nature are eligible to be returned to customers in a manner and timeline determined to be appropriate by the PSCW.