5. Estimated Project Costs

PG&E estimates the cost of Path 15 upgrades along its preferred route at $323.1 million, including reconductoring of the Gates-Midway 230 kV line.¹⁰ The annual revenue requirement associated with this cost would be between $48 million and $58 million/year depending on what factor (15% to 18%) is used to levelize costs. For the purpose of this decision, we use $50 million/year as an approximate cost against which to measure the annual forecasted benefits of the project. This is the figure that both ORA and ISO considered reasonable to use in this proceeding to calculate net project benefits.