risk premium model
FERC continues to fiddle with the return on equity MISO transmission owners can earn, this time setting the base amount at 9.98% while once again eradicating the risk premium model from the calculation.
FERC lifted MISO transmission owners’ base return on equity from 9.88% to 10.02% and allowed them to add a third calculation model into the mix.
FERC moved to apply its proposed new methodology for calculating transmission owners’ return on equity rates to dockets in MISO and the South.
FERC signaled a major change in how it sets transmission owners' return on equity rates; no longer relying solely on the discounted cash flow model.
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