Author: Abt Associates Inc.

Date Created: 7/11/2008

Date Modified: 3/30/2011

Purpose:

This file contains calculations of enetity-level cost-to-revenue ratios for entities owning in-scope facilities using facility- and entity-level weights. 

Analysis assumed that parent entities assume 100% compliance costs. (CBI)

File Contents:

Worksheet Contents

Assumptions Lists assumed constants used throughout the cost and economic impacts analysis model as well as various adjustment indexes for dollar years 

adjustments.

FacilityInfo

Contains facility-level information used for this analysis. Reads in parent-level information from the ParentSize.xls file. Reads in facility-level 

information that depends on the option selected from the Private_Costs.xls file. Reads in facility-level information that does not depend on the 

option selected from the PlantData.xls file.

FirmWts Contains entity-level weights from the ParentSize.xls file.

CTR_Calcs_Low Contains entity-level cost-to-revenue calculations using unweighted and weighted after-tax compliance costs. Reads facility-level information from 

the FacilityInfo worksheet and firm-level information from the ParentSize.xls file.

AnalysisSummary (unwtd costs) Presents summary results of the entity-level impact analysis using unweighted costs for all entities.

AnalysisSummary (wtd costs) Presents summary results of the entity-level impact analysis using weighted costs for all entities.

Table Contains a summary table of analysis results.

Input Files:

External data used in calculations/analysis:

ParentSize.xls

PlantData.xls

Private_Costs.xls

The original version of this file contains, or is linked to a file that contains, confidential business information (CBI), or information that could be used to reveal CBI. As a 

result, the values for any variables determined by EPA to be CBI, or that could be used to reveal CBI, have been concealed.

FileInfo 1 of 53
Discount Rate 7% 88%

Option EG_AllIM_NE11B_08-03-10

Weights P2RR - 29Sep10_NERC_125MGD

Discounting Year Analysis Year (2015) 2 3 4 5 2 3

2 3 4 5 6 7 8 9 10

Entity-Level Cost-to-Revenue Meausre by Entity Type

Number of Entities with a Ratio of

< 1% 1% - 3% > 3% Unknown

Entity-level cost-to-revenue impact calculated using facility weights but not using entity weights

Cooperative 25 11 10 0 1 0 0.00% 4.09%

Federal 16 1 1 0 0 0 0.22% 0.22%

Investor-Owned 306 39 39 0 0 0 0.00% 0.65%

Municipality 25 13 9 4 0 0 0.00% 2.55%

Nonutility 170 29 22 0 1 6 0.00% 47.84%

Political Subdivision 0 0 0 0 0 0 0.00% 0.00%

State 17 4 4 0 0 0 0.00% 0.67%

Total 559 97 85 4 2 6 0.00% 47.84%

Entity-level cost-to-revenue impact calculated using entity weights but not using facility weights

Cooperative 13 20 18 2 0 0 0.00% 1.78%

Federal 7 1 1 0 0 0 0.09% 0.09%

Investor-Owned 138 43 43 0 0 0 0.00% 0.16%

Municipality 13 35 35 0 0 0 0.00% 0.82%

Nonutility 78 37 28 0 1 8 0.00% 22.74%

Political Subdivision 0 0 0 0 0 0 0.00% 0.00%

State 8 4 4 0 0 0 0.00% 0.29%

Total 257 140 129 2 1 8 0.00% 22.74%

Using Low Cost Estimates

Maximum 

Parent Entity Type Total Number of Facilities Total Number of Entities Ratio

Minimun 

Ratio

Table 2 of 53
Discount Rate 7%

Option EG_AllIM_NE11B_08-03-10

Weights P2RR - 29Sep10_NERC_125MGD

Discounting Year Analysis Year (2015)

Summary of entity-level cost-to-revenue analysis using facility-level weights (i.e., using weighted costs).

1 2 3 4 5

Firm and Facility Counts by Ownership Type

Entity Type Minimum Ratio Maximum Ratio

Cooperative 0.00% 4.09%

Federal 0.22% 0.22%

Investor-Owned 0.00% 0.65%

Municipality 0.00% 2.55%

Nonutility 0.00% 47.84%

Political Subdivision 0.00% 0.00%

State 0.00% 0.67%

Total 0.00% 47.84%

Final Parent Count by Type and Cost-Revenue Range

Ownership Type <1% 1-3% >=3% NA

Without Firm-Level Weights

Cooperative 10 0 1 0

Federal 1 0 0 0

Investor-owned 39 0 0 0

Municipality 9 4 0 0

Nonutility 22 0 1 6

Political Subdivision 0 0 0 0

State 4 0 0 0

Total 85 4 2 6

With Firm-Level Weights

Cooperative 18 0 2 0

Federal 1 0 0 0

Investor-owned 43 0 0 0

Municipality 24 11 0 0

Nonutility 28 0 1 8

Political Subdivision 0 0 0 0

State 4 0 0 0

Total 118 11 3 8

CTR Using Low Cost Estimates

Using Low Cost Estimates

Summary (wtd costs) 3 of 53
Discount Rate 7%

Option EG_AllIM_NE11B_08-03-10

Weights P2RR - 29Sep10_NERC_125MGD

Discounting Year Analysis Year (2015)

Summary of entity-level cost-to-revenue analysis without facility-level weights (i.e., using non-weighted costs).

1 2 3 4 5

Firm-Level Cost-to-Revenue Measure by Entity Type for the Preferred Option

Entity Type Minimum Maximum 

Cooperative 0.00% 1.78%

Federal 0.09% 0.09%

Investor-Owned 0.00% 0.16%

Municipality 0.00% 0.82%

Nonutility 0.00% 22.74%

Political Subdivision 0.00% 0.00%

State 0.00% 0.29%

Total 0.00% 22.74%

Final Parent Count by Type and Cost-Revenue Range

Ownership Type <1% 1-3% >=3% NA

Without Firm-Level Weights

Cooperative 10 1 0 0

Federal 1 0 0 0

Investor-owned 39 0 0 0

Municipality 13 0 0 0

Nonutility 22 0 1 6

Political Subdivision 0 0 0 0

State 4 0 0 0

Total 89 1 1 6

With Firm-Level Weights

Cooperative 18 2 0 0

Federal 1 0 0 0

Investor-owned 43 0 0 0

Municipality 35 0 0 0

Nonutility 28 0 1 8

Political Subdivision 0 0 0 0

State 4 0 0 0

Total 129 2 1 8

Using Low Cost Estimates

CTR Using Low Cost Estimates

Summary (unwtd costs) 4 of 53
Discount Rate 7%

Option EG_AllIM_NE11B_08-03-10

Weights P2RR - 29Sep10_NERC_125MGD

Discounting Year Analysis Year (2015)

Entity-Level Cost-to-Revenue Ratios Using Unweighted and Weighted Costs

1 2 3 4 5 6 7

Final Parent Joint Parent Analyzed? Ownership Type Size Revenue

Total Unweighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 

2015; $2008) - Excluding 

Baseline Closures

CTR_Calcs_Low 5 of 53
Discount Rate

Option

Weights

Discounting Year

Entity-Level Cost-to-Revenue Ratios Using Unweighted and Weighted Costs

1

Final Parent

8 9 10 11 12 13

Cost as % of 

Revenue Impact Range

Ownershipt Type_Impact 

Range

Total Weighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 2015; 

$2008) - Excluding Baseline 

Closures

Cost as % of 

Revenue Impact Range

CTR Using Unweighted Costs CTR Using Weighted Cost Estimates

CTR_Calcs_Low 6 of 53
Discount Rate

Option

Weights

Discounting Year

Entity-Level Cost-to-Revenue Ratios Using Unweighted and Weighted Costs

1

Final Parent

14

Ownershipt Type_Impact 

Range

CTR_Calcs_Low 7 of 53
Final Parent Joint Parent Analyzed? Ownership Type Size Revenue

Total Unweighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 

2015; $2008) - Excluding 

Baseline Closures

CTR_Calcs_Low 8 of 53
Final Parent Cost as % of 

Revenue Impact Range

Ownershipt Type_Impact 

Range

Total Weighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 2015; 

$2008) - Excluding Baseline 

Closures

Cost as % of 

Revenue Impact Range

CTR Using Unweighted Costs CTR Using Weighted Cost Estimates

CTR_Calcs_Low 9 of 53
Final Parent

Ownershipt Type_Impact 

Range

CTR_Calcs_Low 10 of 53
Final Parent Joint Parent Analyzed? Ownership Type Size Revenue

Total Unweighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 

2015; $2008) - Excluding 

Baseline Closures

CTR_Calcs_Low 11 of 53
Final Parent Cost as % of 

Revenue Impact Range

Ownershipt Type_Impact 

Range

Total Weighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 2015; 

$2008) - Excluding Baseline 

Closures

Cost as % of 

Revenue Impact Range

CTR Using Unweighted Costs CTR Using Weighted Cost Estimates

CTR_Calcs_Low 12 of 53
Final Parent

Ownershipt Type_Impact 

Range

CTR_Calcs_Low 13 of 53
Final Parent Joint Parent Analyzed? Ownership Type Size Revenue

Total Unweighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 

2015; $2008) - Excluding 

Baseline Closures

CTR_Calcs_Low 14 of 53
Final Parent Cost as % of 

Revenue Impact Range

Ownershipt Type_Impact 

Range

Total Weighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 2015; 

$2008) - Excluding Baseline 

Closures

Cost as % of 

Revenue Impact Range

CTR Using Unweighted Costs CTR Using Weighted Cost Estimates

CTR_Calcs_Low 15 of 53
Final Parent

Ownershipt Type_Impact 

Range

CTR_Calcs_Low 16 of 53
Final Parent Joint Parent Analyzed? Ownership Type Size Revenue

Total Unweighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 

2015; $2008) - Excluding 

Baseline Closures

CTR_Calcs_Low 17 of 53
Final Parent Cost as % of 

Revenue Impact Range

Ownershipt Type_Impact 

Range

Total Weighted Annualized 

After-Tax Compliance Costs 

(as of 2015; discounted to 2015; 

$2008) - Excluding Baseline 

Closures

Cost as % of 

Revenue Impact Range

CTR Using Unweighted Costs CTR Using Weighted Cost Estimates

CTR_Calcs_Low 18 of 53
Final Parent

Ownershipt Type_Impact 

Range

CTR_Calcs_Low 19 of 53
Calculation of Firm Weights

1 2 3 4 5 6 7 8 9 10 11 12 13

Number of Firms - ALL Number of Firms - DQ Firm Weights

Ownershi

p Type Small Large Unknown Total Small Large NA Total Small Large Unknown Total

Cooperative 8 12 0 20 2 9 0 11 4.00 1.33 0 1.82

Federal 0 1 0 1 0 1 0 1 0 1.00 0 1.00

Investor-owned 2 41 0 43 1 38 0 39 2.00 1.08 0 1.10

Municipality 17 18 0 35 6 7 0 13 2.83 2.57 0 2.69

Nonutility 5 32 0 37 3 26 0 29 1.67 1.23 0 1.28

Political Subdivision 1 2 0 3 0 0 0 0 1.00 2.00 0 3.00

State 0 4 0 4 0 4 0 4 0 1.00 0 1.00

Total 33 110 0 143 12 85 0 97 2.75 1.29 0 1.47

FirmWts 20 of 53
Discount Rate 7%

Option EG_AllIM_NE11B_08-03-10

Weights P2RR - 29Sep10_NERC_125MGD

Discounting Year Analysis Year (2015)

1 2 3 4 5 6 7 8

Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 21 of 53
Discount Rate

Option

Weights

Discounting Year

1

Facility ID

80 8 40

9 10 11 12 13 14 15

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

Low Estimates

FacilityInfo 22 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 23 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 24 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 25 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 26 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 27 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 28 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 29 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 30 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 31 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 32 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 33 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 34 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 35 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 36 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 37 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 38 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 39 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 40 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 41 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 42 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 43 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 44 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 45 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 46 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 47 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 48 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 49 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 50 of 53
Facility ID Facility Name Parent-Firm Joint Parent Facility CountBased Weights Parent Entity Size Parent Entity 

Revenue ( $2009)

Facility (Based on 

Utility)

Ownership Type

FacilityInfo 51 of 53
Facility ID

Unweighted Costs Weighted Costs

Parent (Based on 

Most Utilities 

Owned)

Total Facility Post-Tax Cost - 

Annualized (as of 2015)

Total Facility Post-Tax Cost 

- Annualized (as of 2015)

Explicitly 

Analyzed? All DIF (MGD) DIF Group

Ownership Type

FacilityInfo 52 of 53
DollarYear 2009

AnalysisYear 2015

IPMDollarYear 2006

IPM_Yr1 2015

IPM_Yr2 2020

IPM_Yr3 2025

IPM_YrLast 2028

EIA_Yr1 2003

EIA_Yr2 2004

EIA_Yr3 2005

EIA_Yr4 2006

EIA_YrLast 2007

Assumptions 53 of 53