C - Summary

Appendix C

Financial Summary of Adopted Adjustments

Pacific Bell Intrastate Regulated Operations

Phases 2A and 2B

1997

1998

1999

Reference

1.

Net Operating Income Reported by Pacific Bell

$652,499,328

$922,472,419

$962,198,083

Exhibit Phase 2A: 400, p. 11.

2.

Adopted Adjustments: Phase 2A

($7,924,000)

$285,319,000

$241,699,000

Appendix D of today's Decision.

3.

Adopted Adjustments: Phase 2B

$293,471,947

$222,473,703

$114,638,039

Appendix D of today's Decision.

4.

Adopted Net Operating Income

$938,047,275

$1,430,265,122

$1,318,535,122

5.

Rate Base Reported by Pacific Bell

$10,057,145,000

$10,170,675,000

$9,963,603,000

Exhibit Phase 2A: 404, Attach. 11-21.

6.

Adopted Adjustments: Phase 2A

-

$43,446,454

$132,371,666

Appendix E of today's Decision.

7.

Adopted Adjustments: Phase 2B

($787,018,474)

($823,685,178)

($639,172,092)

Appendix E of today's Decision.

8.

Adopted Rate Base

$9,270,126,526

$9,390,436,276

$9,456,802,574

9.

Rate of Return Reported by Pacific Bell

6.49%

9.07%

9.66%

Exhibit Phase 2A: 400, p. 11.

10.

Adopted Adjustments: Phase 2A

-0.08%

2.86%

2.34%

Note 1, Line 21.

11.

Adopted Adjustments: Phase 2B

3.71%

3.30%

1.95%

Note 1, Line 22.

12.

Adopted Rate of Return

10.12%

15.23%

13.94%

Line 4/Line 8, or Line 9 + Line 10 + Line 11.

Note 1: ROR Impact of Adopted Adjustments

1997

1998

1991

13.

ROR Impact of Phase 2A Adjustments

-0.08%

2.75%

2.27%

((Line 1 + Line 2)/(Line 5 + Line 6)) - (Line 1/Line 5).

14.

ROR Impact of Phase 2B Adjustments

3.72%

3.18%

1.89%

((Line 1 + Line 3)/(Line 5 + Line 7)) - (Line 1/Line 5).

15.

Subtotal

3.64%

5.93%

4.16%

Line 13 + Line 14

16.

Proportionate Impact - Phase 2A

-2.20%

46.37%

54.57%

Line 13/Line 15

17.

Proportionate Impact - Phase 2B

102.20%

53.63%

45.43%

Line 14/Line 15

18.

Adopted Rate of Return

10.12%

15.23%

13.94%

Line 12

19.

Reported Rate of Return

6.49%

9.07%

9.66%

Line 9

20.

Difference

3.63%

6.16%

4.29%

Line 18 - Line 19

21.

Difference Attributable to Phase 2A Adjustments

-0.08%

2.86%

2.34%

Line 16 x Line 20

22.

Difference Attributable to Phase 2B Adjustments

3.71%

3.30%

1.95%

Line 17 x Line 20

23.

Total

3.63%

6.16%

4.29%

Line 21 + Line 22


	Appendix C
	Financial Summary of Adopted Adjustments
	Pacific Bell Intrastate Regulated Operations
	Phases 2A and 2B


		1997	1998	1999	Reference

1.	Net Operating Income Reported by Pacific Bell	$652,499,328	$922,472,419	$962,198,083	Exhibit Phase 2A: 400, p. 11.

2.	Adopted Adjustments: Phase 2A	($7,924,000)	$285,319,000	$241,699,000	Appendix D of today's Decision.
3.	Adopted Adjustments: Phase 2B	$293,471,947	$222,473,703	$114,638,039	Appendix D of today's Decision.

4.	Adopted Net Operating Income	$938,047,275	$1,430,265,122	$1,318,535,122

5.	Rate Base Reported by Pacific Bell	$10,057,145,000	$10,170,675,000	$9,963,603,000	Exhibit Phase 2A: 404, Attach. 11-21.

6.	Adopted Adjustments: Phase 2A	-	$43,446,454	$132,371,666	Appendix E of today's Decision.
7.	Adopted Adjustments: Phase 2B	($787,018,474)	($823,685,178)	($639,172,092)	Appendix E of today's Decision.

8.	Adopted Rate Base	$9,270,126,526	$9,390,436,276	$9,456,802,574

9.	Rate of Return Reported by Pacific Bell	6.49%	9.07%	9.66%	Exhibit Phase 2A: 400, p. 11.

10.	Adopted Adjustments: Phase 2A	-0.08%	2.86%	2.34%	Note 1, Line 21.
11.	Adopted Adjustments: Phase 2B	3.71%	3.30%	1.95%	Note 1, Line 22.

12.	Adopted Rate of Return	10.12%	15.23%	13.94%	Line 4/Line 8, or Line 9 + Line 10 + Line 11.


	Note 1: ROR Impact of Adopted Adjustments

		1997	1998	1991
13.	ROR Impact of Phase 2A Adjustments	-0.08%	2.75%	2.27%	((Line 1 + Line 2)/(Line 5 + Line 6)) - (Line 1/Line 5).
14.	ROR Impact of Phase 2B Adjustments	3.72%	3.18%	1.89%	((Line 1 + Line 3)/(Line 5 + Line 7)) - (Line 1/Line 5).
15.	Subtotal	3.64%	5.93%	4.16%	Line 13 + Line 14
16.	Proportionate Impact - Phase 2A	-2.20%	46.37%	54.57%	Line 13/Line 15
17.	Proportionate Impact - Phase 2B	102.20%	53.63%	45.43%	Line 14/Line 15
18.	Adopted Rate of Return	10.12%	15.23%	13.94%	Line 12
19.	Reported Rate of Return	6.49%	9.07%	9.66%	Line 9
20.	Difference	3.63%	6.16%	4.29%	Line 18 - Line 19
21.	Difference Attributable to Phase 2A Adjustments	-0.08%	2.86%	2.34%	Line 16 x Line 20
22.	Difference Attributable to Phase 2B Adjustments	3.71%	3.30%	1.95%	Line 17 x Line 20
23.	Total	3.63%	6.16%	4.29%	Line 21 + Line 22