Calculating Regulated Utility Parameters

Review: Financial statements of a of an electric or other regulated energy utility company. These statements include the income statement, balance sheet and long-term debt footnote. The statements can be obtained from a 10-K form found on http://www.sec.gov.

Note. This might be the same company chosen in the Week One Individual Assignment or another utility company.

Calculate the revenue requirement (cost of service) and rate base of the utility from the information. Show your calculations.

Write a response of no more than 700 words that answers the following questions:

• Given these calculations, what source of financing would you choose?
• What types of credit would work best for you?