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Commissioners press Eversource on carrying-charge method: WACC, debt-only, or a prime-rate proxy?
Summary
During cross-examination commissioners and staff challenged Eversource's use of its WACC to calculate carrying charges on deferred storm costs, asked for alternative columns (weighted cost of debt; prime-rate proxy) and for calculations tied to invoice-payment dates; the company agreed to late-file the alternate computations.
Commissioners pressed Eversource witnesses for alternatives to the company's proposed carrying‑charge methodology during a lengthy technical exchange at a PURA evidentiary hearing.
Lede: Authority staff and several commissioners asked the company to show carrying‑charge calculations using (a) the company's weighted average cost of capital (WACC; the company's submitted baseline), (b) a weighted average cost of debt-only calculation, and (c) a simple published benchmark used by other states (a prime-rate proxy). The company agreed to provide all three as late-filed spreadsheets so the commission can compare outcomes.
Nut graf: The parties framed the debate along accounting and policy lines. Eversource argued WACC best represents how it financed large deferred balances (a mix of…
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