II. Park's Application
Park seeks to increase its revenues by $1,793,000 (11.77%) in 2001, $606,199 (3.58%) in 2002, and $744,197 (4.24%) in 2003. The requested return on equity is 11.75% for each year, with a rate of return on rate base of 10.61% in 2001 and 10.60% in 2002 and 2003.1
Park states that the requested rate increase is necessary because present rates are insufficient in that they do not produce adequate revenue to provide a reasonable return on capital invested and to be invested in plant needed to provide utility service.
1 In D.97-11-061, the Commission adopted an increase in revenue requirement for Park of 1.0%, for 1998, 2.6% for 1999, and 2.6% for 2000. The Commission also adopted rates of return on rate base of 9.55%, 9.54%, and 9.53% for 1998, 1999, and 2000, respectively, which provided a return on equity of 10.00%.
