2025 Projected Cost Attachment O, GG, and MM Rate Overview
Review the projected 2025 rates for Attachment O, GG, and MM as presented by Dave Newberry, Sr. Business Support Analyst. Explore the calculated rates effective January 1 through December 31, 2025, based on projected costs, loads, revenues, and True-up calculations from 2023. Follow the timeline for rate calculations and updates, including discussions and finalizations of the projected cost rate templates.
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Presentation Transcript
2025 Projected Cost Attachment O, GG and MM Rate Template Presentation Dave Newberry Sr Business Support Analyst October 28, 2024
Meeting Purpose The purpose of today s meeting is to review the projected 2025 Attachment O, GG and MM transmission formula rate templates Today s discussion is regarding the projected cost rate templates that were posted on September 26, 2024 The projected rates will be effective January 1 through December 31, 2025, and were calculated using projected costs, projected loads, projected revenues and the 2023 True-up calculations The timeline for calculating both the Attachment O Projected Rate and the True-up will be followed by a detailed description of the projected 2025 rate 2
Projected Attachment O, GG and MM Annual Schedule May 30, 2024 August 15, 2024 Posted 2023 actual cost rate templates and true-up calculations Conducted customer meeting to discuss actual cost 2023 Attachment O, Attachment GG and Attachment MM rate templates and related true-up calculations September 26, 2024 Posted projected cost 2025 rate templates 2023 true-up + interest October 28, 2024 Annual meeting to discuss 2025 projected cost rate templates By November 30, 2024 Post frequently asked questions and answers on MISO OASIS December 2024 Finalize 2025 projected cost rate templates March 15, 2025 MidAmerican s Annual Informational filing 3
Attachment O Projected Rates Rate Projected Rate Effective January 1, 2024 Projected Rate Effective January 1, 2025 Monthly $/kW-month $2.818 $3.221 4
Allowable MidAmerican ROE On October 17, 2024, FERC issued an order on remand from the U.S. Circuit Court Appeals in Docket No. EL14-12 setting the MISO Transmission Owners ROE at a base rate of 9.98% MidAmerican was a filer in Docket No. ER15-358 whereby FERC authorized MidAmerican to receive a 0.50% ROE adder for RTO Participation This results in a total MidAmerican MISO ROE of 10.48% which will be used for the 2025 Projected rate templates The currently posted projected rate templates are based on a total ROE of 10.52% and will be updated with the 10.48% ROE by the end of the year 5
2023 Attachment O, GG and MM True-up The 2023 Attachment O true-up will reduce MidAmerican s 2025 projected Attachment O net transmission revenue requirements by approximately $7.5 Million. The 2023 Attachment GG true-up will add $1,447 to MidAmerican s 2025 projected Attachment GG revenue requirements. The 2023 Attachment MM true-up will add approximately $2.55 Million to MidAmerican s 2025 projected Attachment MM revenue requirements. 6
Summary of MidAmerican 2025 Projected Attachment O Item 2025 Projection Rate Base $1,935,128,392 X Average Cost of Capital 7.85% = Allowed Return $ 151,835,135 + O&M Expenses $ 17,054,623 + Depreciation and Amortization Expense $ 72,455,394 + Taxes Other Than Income Taxes $ 17,430,186 + Income Taxes $ 38,382,962 - Attachment GG Adjustment $ 982,880 - Attachment MM Adjustment $ 52,609,401 Gross Revenue Requirement $ 243,566,018 7
Summary of MidAmerican 2025 Projected Attachment O Item 2025 Projection $243,566,018 2025 Projected Gross Revenue Requirements - 2025 Projected Revenue Credits $ 40,103,160 - 2023 ATRR True-up $ 4,298,804 - 2023 Divisor True-up $ 2,138,838 - Interest on 2023 True-up $ 1,018,909 = 2025 Projected Net Revenue Requirement $196,006,307 2025 Projected 12CP Network Load (kW) 5,070,542 = 2025 Projected Annual Cost ($/kW-YR) $ 38.656 2025 Projected Network Rate ($/kW-MO) $ 3.221 8
MidAmerican 2025 Projected Attachment O Rate Base Rate Base Item 2025 Projection Gross Plant in Service $3,055,266,521 Less Accumulated Depreciation (786,734,406) Net Plant In Service $ 2,268,532,115 CWIP for Certificate of Need Projects $ 0 ADIT and Prefunded AFUDC $ (364,674,994) Cash Working Capital $ 2,131,828 Materials and Supplies $ 15,021,143 Prepayments $ 14,118,300 Total Rate Base $1,935,128,392 9
MidAmerican 2025 Projected Attachment O Cost of Capital and Allowed Return Cost of Capital Ratio Cost 2025 Projection Equity 53% 10.52% 5.59% Debt 47% 4.81% 2.25% Preferred Stock 0% 0.00% 0.00% Rate of Return 7.85% Allowed Return: Rate Base X Return (above) = Allowed Return $ 1,935,128,392 $ 151,835,135 7.85% 10
MidAmerican 2025 Projected Attachment O Operating Expenses and Gross Revenue Requirement Operating Expense Items: 2025 Projection Operation & Maintenance Expense $ 17,054,623 Depreciation and Amortization Expense $ 72,455,394 Taxes Other Than Income Taxes $ 17,430,186 Income Taxes $ 38,382,962 Total Operating Expenses $145,323,165 Gross Revenue Requirement: 2025 Projection Allowed Return $151,835,135 + Total Operating Expenses $145,323,165 - Attachment GG Adjustment $ 982,880 - Attachment MM Adjustment $ 52,609,401 = Gross Revenue Requirements $243,566,018 11
MidAmerican 2025 Projected Attachment O Net Revenue Requirement Revenue Requirement Item 2025 Projection Point to Point Revenue $ 39,811,160 (1) Rental Revenue $ 292,000 Total Revenue Credits $ 40,103,160 Net Revenue Requirement 2025 Projection Gross Revenue Requirement $243,566,018 - Revenue Credits $ 40,130,160 - 2023 ATRR True-up $ 4,298,804 - 2023 Divisor True-up $ 2,138,838 - Interest on 2023 True-up $ 1,018,909 = Net Revenue Requirement $196,006,307 (1) Includes $10 million in revenues from self-funded generator interconnection network upgrade projects 12
MidAmerican 2025 Projected Attachment O Billing Rate Coincident Peak Loads 2025 Projection Average of 2025 Forecasted Monthly Coincident Network Peak Loads (kW) 5,070,542 MidAmerican 2025 Network Rate Calculation 2025 Projection Net Revenue Requirement $196,006,307 12CP Load (kW) 5,070,542 = MEC Network Rate ($/kW-MO) $ 3.221 13
2025 Transmission In-Service Projects (Ranked by Cost) Project Cost ($Million) New Quick-Sub 701 161 kV Line 19.6 New Graettinger Marsh Generator Interconnection Substation 15.6 Sidney-Percival 69 kV Line Rebuild 8.8 Bondurant 345-161 kV Transformer Addition 8.4 Spare 161-69kV 125 MVA Transformer to Replenish Inventory 6.3 Substation P Transformer Breakers 5.1 16th & Wabash - Sec Taylor Tap 69 kV Line Government Relocation 5.0 Transmission Pole Replacements 5.0 SE Soteria 161-13 kV Transformer 4 Addition 4.6 Southland East 345 Phase I and II Substation Additions 4.3 Purchase Three Spare 125 MVA Transformers to Replenish Inventory 4.2 SE Soteria 161-13 kV Transformer 5 Addition 4.2 29th & Hubbell Substation Expansion 4.1 Graettinger Marsh Generator Interconnection Substation 345 kV Line Tap 3.9 Projects < $3.5 Million (112 Projects) 88.9 14
2025 MidAmerican Transmission In-Service Projects by Category Project Category Project Count Cost ($Million) Substation Additions 11 37.7 Substation - Failed Equipment/Spares 9 18.5 Substation New 1 15.6 Substation - Site Purchase 4 1.2 Substation Upgrades 51 37.4 Transmission Line Improvements 16 21.2 Transmission Line Rebuild 2 11.4 Transmission Line New 1 19.6 Transmission Line - Government Relocation 6 7.0 Transmission Line - Taps for Substations 2 4.4 Transmission Line - Failed Equipment 22 10.6 34.5 kV to 69 kV Conversion 1 3.4 Total 126 $188.0 15
2025 Projected Attachment GG More on Next Page Project Fallow Avenue Rolling Hills Lehigh O Brien County Ida Beaver Creek Sub 12665 Ida County West Sub Arbor Hill Sub Orient Sub Palo Alto Sub Upland Prairie Sub 13645 North English Sub 14625 County MTEP # 3721 11203 11204 10867 10868 13644 12723 12725 13584 Gross Plant 600,441 61,834 245,471 179,232 425,180 666,744 1,215,115 760,818 2,107,729 675,390 79,451 1,438,292 Annual Expense Charge 8,241 849 3,369 2,460 5,836 9,151 16,678 10,442 28,929 9,270 1,090 19,741 Annual Return Charge 35,774 3,591 14,676 12,255 28,994 47,037 91,056 55,343 163,719 50,610 5,776 111,722 Project Depr Expense 15,012 1,548 6,132 4,476 10,632 16,668 30,372 19,020 52,692 16,884 1,992 35,952 Annual Revenue Require 59,027 5,988 24,177 19,191 45,462 72,856 138,106 84,805 245,340 76,764 8,858 167,415 True-up Adjust 4,947 259 1,182 1,127 2,676 (1,432) (2,877) (1,716) (4,828) (1,600) (195) (3,598) Network Upgrade Charge 63,974 6,247 25,359 20,138 48,138 71,124 135,229 83,089 240,512 75,164 8,663 163,817 16
2025 Projected Attachment GG - Continued Project Grimes Beaver Creek Uprate Diamond Trail- Hills Uprate Bondurant Montezuma Uprate 18174 Montezuma- Diamond Trail Uprate 20128 Bondurant Montezuma Uprate 20130 Total MTEP # 18125 18188 Gross Plant 187,938 8,769 40,652 22,380 39,569 8,755,005 Annual Expense Charge 2,579 120 556 307 543 120,163 Annual Return Charge 14,630 673 3,156 1,761 3,076 643,849 Project Depr Expense 4,704 216 1,020 564 984 218,868 Annual Revenue Require 21,913 1,009 4,734 2,632 4,603 982,880 True-up Adjust (470) (18) (106) 2,939 5,157 1,447 Network Upgrade Charge 21,443 991 4,628 5,571 9,760 984,327 17
2025 Projected Attachment MM Project MVP 3 MVP 4 MVP 7 MVP 16 Total Gross Plant $ 241,682,957 $ 142,600,754 $ 58,702,550 $ 65,080,631 $508,066,892 Annual Expense Charge $ 3,195,488 $ 1,895,946 $ 731,000 $ 848,532 $ 6,670,966 Annual Return Charge $ 16,363,665 $ 9,601,311 $ 4,205,748 $ 4,467,616 $ 34,638,340 Project Depreciation Expense $ 5,386,150 $ 2,948,901 $ 1,494,279 $ 1,470,765 $ 11,300,095 Annual Revenue Requirement $ 24,945,303 $ 14,446,156 $ 6,431,027 $ 6,786,913 $ 52,609,401 True-Up Adjustment $ 3,092,676 $ 780,177 $ 536,648 $ (1,853,981) $ 2,555,520 MVP Annual Adjusted Rev Requirement $ 28,037,979 $ 15,226,335 $ 6,967,675 $ 4,932,932 $ 55,164,921 18
2025 MidAmerican Projected Attachment O, GG and MM QUESTIONS ? 19
