The Cost of Capital is the overall percentage cost of the funds used to finance a utility’s assets. It is a composite of the cost of the individual sources of funds including common equity stock, debt, and preferred stock. The overall Cost of Capital depends on the cost of each source and the proportion that source represents of all capital used by the utility. The authorized weighted Cost of Capital or rate of return is the percentage cost applied to the utilities’ rate base to determine the revenues it should earn on rate base (investment).
- 2012-2014 Cost of Capital for large water utilities (Cal Am, SJW, GSW, and CWS)
- 2013-2015 Cost of Capital for small water utilities (Park/Apple Valley, Suburban, SGVW, and Great Oaks)
- 2018-2020 Cost of Capital for large water utilities (Cal Am, SJW, GSW, and CWS)
- 2019-2021 Cost of Capital for small water utilities (Liberty Park/AVR,Suburban, SGVW, and Great Oaks)