Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 31.00 - Optional Formula For Determining Allowed Rates Of Return On Equity For Water Companies
Section 31.01 - Definitions

Under 220 CMR 3 1. 00, the following words and phrases shall have the following meanings, unless the context requires otherwise:

Allowed Return on Equity, the percentage rate of return on common equity authorized by the Department for a utility and used in calculating an overall return on investment for purposes of establishing the utility's revenue requirement.

Common Equity Ratio, the percentage of a utility's total capitalization (i.e., common equity, preferred stock, and long-term debt) that consists of common equity, retained earnings, and capital surplus.

Department the Department of Public Utilities.

Effective Date, the proposed effective date of changes in a utility's rates, prices and charges as set forth in a rate filing.

Index, in percentage points, the most recent 12-month average of thirty-year United States Treasury bond interestrates, as derived from Federal Reserve Statistical Release, H.15(519), "Selected Interest Rates," or a successor or equivalent publication, including the interest rate published on, or as close as possible after, a date four months following the effective date.

Rate Filing, a notice of any changes proposed to be made in any schedule filed under M.G.L. c. 165 which represent a general increase in rates, prices and charges for water service.

Utility, any water company as defined in M.G.L. c. 165, § 1.