MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (COMBINED FOR CON EDISON AND CON EDISON OF NEW YORK)–CONTINUED O&R Electric O&R’s electric sales and deliveries, excluding off-system sales, in 2008 compared with 2007 were:
## Table 0 ##
O&R’s electric operating revenues increased $62 million in 2008 compared with 2007 due primarily to increased recoverable purchased power costs ($49 million) and the impact of the electric rate plan that went into effect July 1, 2008 ($8 million).
Effective July 2008, O&R’s revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s electric rate plan.
See Note B to the financial statements.
Electric delivery volumes in O&R’s service area decreased 0.1 percent in 2008 compared with 2007.
After adjusting for weather variations and unbilled volumes, electric delivery volumes in O&R’s service area decreased 1.0 percent in 2008 compared with 2007.
Electric operating income decreased by $6 million in 2008 compared with 2007.
The decrease reflects primarily higher operations and maintenance expense ($19 million, due primarily to higher maintenance costs ($6 million), pension expense ($4 million) and demand management program expenses ($3 million)), depreciation ($1 million) and taxes other than income taxes ($1 million, principally property taxes), offset by higher net revenues ($13 million) and lower income taxes ($1 million).
Gas O&R’s gas sales and deliveries, excluding off-system sales, in 2008 compared with 2007 were:
## Table 1 ##
Entergy New Orleans, Inc.  and Subsidiaries Management’s Financial Discussion and Analysis Entergy New Orleans’s receivables from the money pool were as follows as of December 31 for each of the following years.
## Table 2 ##
See Note 4 to the financial statements for a description of the money pool.
Entergy New Orleans has a credit facility in the amount of $25 million scheduled to expire in November 2018.
The credit facility allows Entergy New Orleans to issue letters of credit against $10 million of the borrowing capacity of the facility.
As of December 31, 2016, there were no cash borrowings and a $0.8 million letter of credit was outstanding under the facility.
In addition, Entergy New Orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations under MISO.
As of December 31, 2016, a $6.2 million letter of credit was outstanding under Entergy New Orleans’s letter of credit facility.
See Note 4 to the financial statements for additional discussion of the credit facilities.
Entergy New Orleans obtained authorization from the FERC through October 2017 for short-term borrowings not to exceed an aggregate amount of $100 million at any time outstanding.
See Note 4 to the financial statements for further discussion of Entergy New Orleans’s short-term borrowing limits.
The long-term securities issuances of Entergy New Orleans are limited to amounts authorized by the City Council, and the current authorization extends through June 2018.
State and Local Rate Regulation The rates that Entergy New Orleans charges for electricity and natural gas significantly influence its financial position, results of operations, and liquidity.
Entergy New Orleans is regulated and the rates charged to its customers are determined in regulatory proceedings.
A governmental agency, the City Council, is primarily responsible for approval of the rates charged to customers.
Retail Rates See “Algiers Asset Transfer” below for discussion of the transfer from Entergy Louisiana to Entergy New Orleans of certain assets that serve Algiers customers.
In March 2013, Entergy Louisiana filed a rate case for the Algiers area, which is in New Orleans and is regulated by the City Council.
Entergy Louisiana requested a rate increase of $13 million over three years, including a 10.4% return on common equity and a formula rate plan mechanism identical to its LPSC request.
In January 2014 the City Council Advisors filed direct testimony recommending a rate increase of $5.56 million over three years, including an 8.13% return on common equity.
In June 2014 the City Council unanimously approved a settlement that includes the following: ?
a $9.3 million base rate revenue increase to be phased in on a levelized basis over four years; ?
recovery of an additional $853 thousand annually through a MISO recovery rider; and ?
the adoption of a four-year formula rate plan requiring the filing of annual evaluation reports in May of each year, commencing May 2015, with resulting rates being implemented in October of each year.
The formula rate plan includes a midpoint target authorized return on common equity of 9.95% with a +/- 40 basis point bandwidth.
The rate increase was effective with bills rendered on and after the first billing cycle of July 2014.
Additional compliance filings were made with the City Council in October 2014 for approval of the form of certain rate riders, including among others, a Ninemile 6 non-fuel cost recovery interim rider, allowing for contemporaneous recovery of capacity
Perrigo Company plc - Item 7 Financial Condition, Liquidity and Capital Resources Contractual Obligations Our enforceable and legally binding obligations as of December 31, 2018 are set forth in the following table.
Some of the amounts included in this table are based on management’s estimates and assumptions about these obligations, including the duration, the possibility of renewal, anticipated actions by third parties and other factors.
Because these estimates and assumptions are necessarily subjective, the enforceable and legally binding obligations actually paid in future periods may vary from the amounts reflected in the table (in millions):

<table><tr><td></td><td colspan="4">Millions of kWhs Delivered</td><td colspan="4"> Revenues in Millions</td><td></td></tr><tr><td></td><td colspan="2"> Twelve Months Ended</td><td></td><td></td><td colspan="2"> Twelve Months Ended</td><td></td><td></td><td></td></tr><tr><td> Description</td><td> December 31, 2008</td><td> December 31, 2007</td><td>Variation</td><td>Percent Variation</td><td> December 31, 2008</td><td> December 31, 2007</td><td> Variation</td><td> Percent Variation</td><td></td></tr><tr><td>Residential/Religious</td><td>1,892</td><td>1,913</td><td>-21</td><td>-1.1%</td><td>$330</td><td>$298</td><td>$32</td><td>10.7%</td><td></td></tr><tr><td>Commercial/Industrial</td><td>2,082</td><td>2,191</td><td>-109</td><td>-5.0</td><td>303</td><td>283</td><td>20</td><td>7.1</td><td></td></tr><tr><td>Retail access customers</td><td>1,814</td><td>1,687</td><td>127</td><td>7.5</td><td>80</td><td>73</td><td>7</td><td>9.6</td><td></td></tr><tr><td>Public authorities</td><td>119</td><td>120</td><td>-1</td><td>-0.8</td><td>17</td><td>15</td><td>2</td><td>13.3</td><td></td></tr><tr><td>Other operating revenues</td><td>-</td><td>-</td><td>-</td><td>-</td><td>3</td><td>2</td><td>1</td><td>50.0</td><td></td></tr><tr><td> Total</td><td> 5,907</td><td> 5,911</td><td>-4</td><td>-0.1%</td><td>$733</td><td>$671</td><td>$62</td><td> 9.2</td><td> %</td></tr></table>
<table><tr><td></td><td colspan="4">Thousands of dths Delivered</td><td colspan="4">Revenues in Millions</td></tr><tr><td></td><td colspan="2"> Twelve Months Ended</td><td></td><td></td><td colspan="2"> Twelve Months Ended</td><td></td><td></td></tr><tr><td> Description</td><td> December 31, 2008</td><td> December 31, 2007</td><td>Variation</td><td>Percent Variation</td><td> December 31, 2008</td><td> December 31, 2007</td><td>Variation</td><td>Percent Variation</td></tr><tr><td>Residential</td><td>8,068</td><td>8,768</td><td>-700</td><td>-8.0%</td><td>$142</td><td>$152</td><td>$-10</td><td>-6.6%</td></tr><tr><td>General</td><td>1,816</td><td>2,066</td><td>-250</td><td>-12.1</td><td>30</td><td>34</td><td>-4</td><td>-11.8</td></tr><tr><td>Firm transportation</td><td>10,471</td><td>10,248</td><td>223</td><td>2.2</td><td>45</td><td>39</td><td>6</td><td>15.4</td></tr><tr><td>  Total firm sales and transportation</td><td> 20,355</td><td> 21,082</td><td>-727</td><td>-3.4</td><td>217</td><td>225</td><td>-8</td><td>-3.6</td></tr><tr><td>Interruptible sales</td><td>5,409</td><td>5,983</td><td>-574</td><td>-9.6</td><td>27</td><td>25</td><td>2</td><td>8.0</td></tr><tr><td>Generation plants</td><td>2,327</td><td>4,552</td><td>-2,225</td><td>-48.9</td><td>4</td><td>3</td><td>1</td><td>33.3</td></tr><tr><td>Other</td><td>1,007</td><td>1,044</td><td>-37</td><td>-3.5</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Other gas revenues</td><td>-</td><td>-</td><td>-</td><td>-</td><td>10</td><td>12</td><td>-2</td><td>-16.7</td></tr><tr><td> Total</td><td> 29,098</td><td> 32,661</td><td>-3,563</td><td>-10.9%</td><td>$258</td><td>$265</td><td>$-7</td><td>-2.6%</td></tr></table>
<table><tr><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>(In Thousands)</td></tr><tr><td>$14,215</td><td>$15,794</td><td>$442</td><td>$4,737</td></tr></table>

Question: what is the maximum target authorized return on common equity under the formula rate plan?