The lower equity capitalization ratio translates into a lower revenue requirement and lower prices for consumers.
The manual helps to determine future revenue requirements and to set annual base tariffs based on estimated consumption levels.
Therefore, the Commission had to revise its fee schedule in order to meet the increased revenue requirements.
Under the current system, regulators target a return for A.T.&T.'s investment and then approve tariffs to meet the company's expected revenue requirements.
The traditional rate formula is intended to produce a utility's revenue requirement:
R is the utility's total revenue requirement or rate level.
Operating costs are most often the largest component of the revenue requirement, and the easiest to determine.
Under Shah Jahan, peasants were compelled to sell their women and children to meet their revenue requirements.
By 1966, however, the federal government's revenue requirements had increased due to escalation of the Vietnam War.
It said the decision reduced Pacific Bell's annual revenue requirement by $64.9 million.