Texas Administrative Code › Title 30 - ENVIRONMENTAL QUALITY › Part 1 - TEXAS COMMISSION ON ENVIRONMENTAL QUALITY › Chapter 336 - RADIOACTIVE SUBSTANCE RULES › Subchapter N - FEES FOR LOW-LEVEL RADIOACTIVE WASTE DISPOSAL › Section 336.1307 - Factors Considered for Determination of Maximum Disposal Rates

Current through Reg. 49, No. 28; July 12, 2024
Maximum disposal rates adopted by the commission shall
					 consider the following factors and be sufficient to:
(1) allow the licensee to recover allowable
				  expenses. Allowable expenses shall never include: legislative advocacy
				  expenses; political expenditures or contributions; expenses in support of or
				  promoting political movements, or political or religious causes; funds expended
				  for membership in or support of social, fraternal, or religious clubs or
				  organizations; costs, including interest expense, of processing a refund or
				  credit ordered by the commission; or any expenditure found by the commission to
				  be unreasonable, unnecessary or against public interest, including but not
				  limited to, executive salaries, legal expenses, penalties, fines, or costs not
				  used or useful for the provision of compact waste disposal services;
(2) provide an amount to fund local public
				  projects under Texas Health and Safety Code, § 401.244;
(3) provide a reasonable opportunity to earn
				  a reasonable rate of return on invested capital in the facilities used for
				  management, disposal, processing, or treatment of compact waste at the compact
				  waste disposal facility, which rate of return is expressed as a percentage of
				  invested capital. In addition to the factors set forth in §
										336.1303(13)
				  of this title (relating to Definitions), the rate of return should be
				  reasonably sufficient to assure confidence in the financial soundness of the
				  licensee and should be adequate, under efficient and economical management, to
				  maintain and support its credit and enable it to raise the money necessary for
				  the proper discharge of its public duties. A rate of return may be reasonable
				  at one time and become too high or too low because of changes affecting
				  opportunities for investment, the money market, and business conditions
				  generally. The commission may, in addition, consider inflation, deflation, and
				  the need for the licensee to attract new capital. The rate of return must be
				  high enough to attract new capital but need not go beyond that. In each case,
				  the commission shall consider the licensee's cost of capital, which is the
				  weighted average of the costs of the various classes of capital used by the
				  licensee:
(A) Debt capital. The cost of debt
				  capital is the actual cost of the debt at the time of issuance, plus
				  adjustments for premiums, discounts, and refunding and issuance
				  costs.
(B) Equity capital. For
				  companies with ownership expressed in terms of shares of stock, equity capital
				  commonly consists of the following classes of stock:
(i) Common stock capital. The cost of common
				  stock capital shall be based upon a fair return on its market value;
				  or
(ii) Preferred stock capital.
				  The cost of preferred stock capital is the actual cost of preferred stock at
				  the time of issuance, plus an adjustment for premiums, discounts and refunding
				  and issuance costs; and