Cost of Capital

Cal-Ore requests an overall intrastate rate of return on rate base of 10.00%. CD believes that the return on rate base for all rural ILECs should be the same since the systematic and non-diversifiable risks faced by all rural ILECs are similar and in Cal-Ore's last GRC the Commission authorized a 10.00% rate of return¹⁰. CD recommends that the Commission approve Cal-Ore's request for an overall rate of return of 10.00%.

¹⁰ Resolution T-16762, adopted October 30, 2003.