Optimized Depreciated Replacement Cost

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Saturday, 31 May 2025
5 days ago

INSIDER VIEW | How to calculate the least cost of equity?

ERC’s use of the Capital Asset Pricing Model (CAPM) in calculating the cost of equity of utilities will result in an arbitrary number. We must ask this: How do we know if the resulting cost of equity represents the “least cost” or , as the SC puts it, “fair and reasonable”?
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