Centrally Assessed PropertiesDoug Roehm, Unit Manager
Business Tax & Valuation BureauKory Hofland, Bureau Chief
Business & Income Tax DivisionLee Baerlocher, Division Administrator
Capitalization Rate Study
January 2017
METHODOLOGY
COMPARABLE COMPANIES
The comparable or "Guideline Companies" are taken from the appropriate industry group in the Value Line Investment Survey.
THE RATE FOR COMMON EQUITY
Montana Department of Revenue
2017 Capitalization Rate Study
Business Tax & Valuation Bureau
Centrally Assessed Properties
The Business Tax and Valuation Bureau develops a capitalization rate for each centrally assessed utility industry group using the
band-of-investment technique. The typical industry rate for each source of capital (common equity and debt) is weighted
according to its proportion in the typical market capital structure for each industry to derive a weighted average direct
capitalization rate for the specific industry. The rate for each of the sources of capital is taken from directly observed information
in the market.
For a company in a given industry, the capitalization rate for its industry is applied directly to an estimate of the company’s typical
net utility operating income to derive an income indicator of value for the company.
Under direct capitalization, the measure of the rate for common equity is the Earnings/Price (E/P) ratio. The E/P ratio is the
annual earnings (net income) per share of common stock divided by the average market price per share of common stock.
2
THE RATE FOR PREFERRED STOCK
The measure of the rate for preferred stock is percent dividend yield.
The Business Tax and Valuation Bureau does not calculate an annual (simple) average of the monthly percent yields for all
preferred stock issues as a separate rate used in the band of investment. Instead, the preferred stock is included in the debt
portion of the capital structure.
E/P (VL) HistoricThe historic earning per share reported in the Value Line Investment Survey is divided by the 4th quarter
stock price calculated from data reported by Yahoo Finance.
E/P (VL) ProjectedThe projected next quarter and last three historic previous earnings per share reported in the Value Line
Investment Survey is divided by the 4th quarter average calculated from data reported by Yahoo Finance.
For each of the companies included in the equity portion of the industry capitalization rate data set, the Bureau calculates two
different measures of the E/P ratio, and then calculates an industry (simple) average and median for each of these measures:
Montana Department of Revenue
2017 Capitalization Rate Study
Business Tax & Valuation Bureau
Centrally Assessed Properties
3
THE RATE FOR DEBT
Montana Department of Revenue
2017 Capitalization Rate Study
Business Tax & Valuation BureauCentrally Assessed Properties
The measure of the rate for debt used in the direct capitalization rate is the current yield. Current yield is equal to the annual
coupon rate divided by price (expressed as a percent). While the measure of the rate of debt for the yield rate is yield to maturity.
The yield to maturity is the interest rate that equates the present value of a bond’s cash flow to its current price (expressed as a
percent). Yield to maturity assumes that the bond will be held to maturity. If the bond is not held until maturity, or if the interim
cash flows are reinvested at a rate that differs from the yield to maturity, an investor’s actual yield will differ from the yield to
maturity. The yield to maturity calculation equates a bond’s cash flows to its current price; this yield calculation considers both
coupon and income and any capital gain or loss the investor will realize by holding the bond to maturity.
Valuation theory typically requires the use of current yields (the annual coupon rate divided by price) for direct capitalization and
the use of yield to maturity for yield capitalization, the two rates will generally not vary significantly for seasoned issues (except
under certain circumstances) and they will be the same for new issues.
For each of the companies included in the embedded debt portion, the embedded debt of the industry capitalization rate data
set, the bureau calculates an annual (simple) average of the monthly yield to maturities for all debt issues listed in the Standard &
Poor’s Bond Guide. The average yields are then used to select a value for the appropriate cap rate..
4
DIRECT CAPITALIZATION of “GROSS” CASH FLOW
2017 Capitalization Rate Study
Business Tax & Valuation Bureau
Centrally Assessed Properties
The Business Tax and Valuation Bureau develops another direct capitalization rate for each centrally assessed utility industry
group. This direct capitalization rate is calculated like the rate for capitalizing net operating income. The only difference is that the
rate for common equity is “gross” cash flow per share divided by the average 4th quarter price per share.
“Gross” cash flow is defined as net utility operating income plus depreciation and amortization expense minus preferred stock
For a company in a given industry, the capitalization rate for its industry is applied directly to an estimate of the company’s typical
“gross” cash flow to derive an income indicator of value for the company.
The use of the “gross” cash flow capitalization model is less common than the traditional net operating income capitalization
model. The “gross” cash flow model can be valuable in developing an income indicator of value for industries or companies that
have been experiencing net operating losses, or in cases where book depreciation does not reflect economic depreciation.
Montana Department of Revenue
5
YIELD CAPITALIZATION of PROJECTED FUTURE (NET) CASH FLOWS
Centrally Assessed Properties
The Business Tax and Valuation Bureau also develops a yield capitalization rate for each centrally assessed utility industry group.
The rate for each source of capital is the “cost of capital” for each industry group. The cost of debt is the yield to maturity for debt
derived from the set of comparable companies for each industry group. The cost of equity capital is calculated using several
methods, including the DCF (discounted cash flow) model, the ERP (equity risk premium model), the CAPM (capital asset pricing
model) or a combination there of depending on the quantity and quality of available data.
The correct application of a yield capitalization rate is to use the rate for the industry to discount a stream of estimated future
(net) cash flows for a company to present value.
It is important to note that the cash flow used in yield capitalization is “true”, “net” or “free” cash flow and not the ”gross” cash flow
used in the Department’s direct ”gross” cash flow indicator.
The development of a valid future cash flow stream requires considerable time and effort. Most companies choose not to spend
the time and effort to develop this future cash flow stream. Therefore, in the event a company does not provide a future cash
flow stream as requested in the Annual Reporting Forms, the Department normalizes “net” historical cash flows to determine a
cash flow stream. The yield capitalization rate for specific industries is applied directly to this derived cash flow stream.
Properly developed and applied, yield capitalization and direct capitalization usually result in similar indicators of value.
Business Tax & Valuation Bureau
Montana Department of Revenue
2017 Capitalization Rate Study
6
Grace Gilmore
Angie Haller
Tanner Lambert
Doug Roehm
Jon Rosling
The Centrally Assessed Property Appraisers, of the Business Tax & Valuation Bureau of the Montana Department of Revenue,
produced this study. The team members include:
Montana Department of Revenue
2017 Capitalization Rate Study
Business Tax & Valuation Bureau
Centrally Assessed Properties
7
Scheduled Airlines - Passenger
2017 Capitalization Rate Study
Final
Capital Structure
Equity 64.00% Page AP-4
Debt 36.00% Page AP-4
Equity Cost of Capital
Capital Asset Pricing Model 9.99% Page AP-5
Dividend Growth Model (g = Earnings Growth) 9.10% Page AP-9
Dividend Growth Model (g = Dividends Growth) 15.90% Page AP-9
Dividend Growth Model (g = b x ROE) 23.70% Page AP-9
10.00%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 4.00% Page AP-13
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
4.83%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 64.00% 10.00% 10.00% 6.40%
Debt 36.00% 4.83% 38.00% 2.99% 1.08%
WACC 100.00% 7.48%
WACC (Rounded) 7.50%
Passenger Airlines - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Scheduled Passenger Airlines
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
AP-2
Capital Structure
Equity 64.00% Page AP-4
Debt 36.00% Page AP-4
Equity Cost of Capital
NOI After-tax 9.60% Page AP-14
GCF 16.00% Page AP-14
Debt Cost of Capital
Standard and Poor's Current Yield 5.50% Page AP-15
Calculated Current Yield 4.40% Page AP-16
4.95%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 64.00% 9.60% 9.60% 6.14%
Debt 36.00% 4.95% 38.00% 3.07% 1.10%
Total 100.00% 7.25%
Total (Rounded) 7.30%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 64.00% 16.00% 16.00% 10.24%
Debt 36.00% 4.95% 38.00% 3.07% 1.10%
WACC 100.00% 11.34%
Total (Rounded) 11.40%
Passenger Airlines - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Scheduled Passenger Airlines
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Passenger Airlines - NOI After-tax Direct Capitalization Rate
AP-3
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total Common,
Preferred, LT
Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLeases
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
American Airlines Group AAL AIRTRANS B+ 507,294 43.31 21,970,910 0 24,983,000 10,713,057 57,666,967 38% 0% 62%
Allegiant Travel ALGT AIRTRANS B++ 16,633 153.89 2,559,801 0 808,871 18,128 3,386,800 76% 0% 24%
Alaska Air Group ALK AIRTRANS B 123,328 77.69 9,580,740 0 3,002,000 2,408,649 14,991,389 64% 0% 36%
Delta Air Lines DAL AIRTRANS B+ 744,887 45.27 33,722,273 0 7,300,000 10,287,753 51,310,025 66% 0% 34%
JetBlue Airways JBLU AIRTRANS B+ 337,000 19.59 6,602,392 0 1,336,000 1,055,394 8,993,786 73% 0% 27%
Southwest Airlines LUV AIRTRANS A 807,612 44.11 35,623,750 0 3,445,000 2,756,921 41,825,671 85% 0% 15%
Spirit Airlines SAVE AIRTRANS B++ 69,326 51.37 3,561,171 0 1,033,700 1,400,188 5,995,059 59% 0% 41%
SkyWest SKYW AIRTRANS B+ 79,781 33.07 2,638,368 0 2,566,500 809,884 6,014,752 44% 0% 56%
United Cont'l Hldgs. UAL AIRTRANS B 314,613 63.11 19,855,210 0 11,993,000 14,872,906 46,721,117 42% 0% 58%
All Companies 136,114,615 0 56,468,071 44,322,879 236,905,565 57% 0% 43%
Average 61% 0% 39%
Median 64% 0% 36%
High 85% 0% 62%
Low 38% 0% 15%
Say 64% 36%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2016 - Added Virgin America Inc.
2017 - RJET removed. Filed bankruptcy in 2016.
2017 - VA removed sold to Alaska Air Group in 2016
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Scheduled Passenger Airlines
2017 Assessment Year
AP-4
Passenger
k e = Cost of Equity 9.99%
R f = Risk Free Rate 2.79%
β = Beta 1.20
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Passenger Airlines
2017 Assessment Year
k e = R f + β x ERP
"Value Line Selection & Opinion", Value Line (January 6, 2017)
AP-5
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Passenger Airlines
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR 3 Stage Dividend Growth Model, S & P 500, See Exhibit
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
AP-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Passenger Airlines
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 4.00% 6.00%
5 Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session
Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal
Disability Insurance Trust Funds (June 22, 2016)
Nominal Growth
AP-7
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
American Airlines Group AAL AIRTRANS B+ 1.25
Allegiant Travel ALGT AIRTRANS B++ 0.80
Alaska Air Group ALK AIRTRANS B 1.10
Delta Air Lines DAL AIRTRANS B+ 1.20
JetBlue Airways JBLU AIRTRANS B+ 1.10
Southwest Airlines LUV AIRTRANS A 1.10
Spirit Airlines SAVE AIRTRANS B++ 1.40
SkyWest SKYW AIRTRANS B+ 1.45
United Cont'l Hldgs. UAL AIRTRANS B 1.20
Average 1.18
Median 1.20
High 1.45
Low 0.80
Say 1.20
2017 Assessment Year
Industry: Scheduled Passenger Airlines
Support for Beta Selection in CAPM
MONTANA DEPARTMENT OF REVENUE
AP-8
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est
Payout
Ratio Retention Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity
Cost of
Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPS
b =
1-Payout Ratio ROE
g =
Earnings g
g =
Dividends g
g =
b x ROE
K e
g = Earnings g
K e
g = Dividends g
K e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value Line
Multi Stg g
Wrksht
Multi Stg g
Wrksht H*I E+J E+K E+L
American Airlines Group AAL 43.31 0.40 0.92% 4.35 9.20% 90.80% 0.00% 3.22% 3.22% 4.14% 4.14%
Allegiant Travel ALGT 153.89 2.40 1.56% 10.95 21.92% 78.08% 34.50% 7.37% 25.30% 26.94% 8.93% 26.85% 28.50%
Alaska Air Group ALK 77.69 1.20 1.54% 7.90 15.19% 84.81% 32.50% 7.68% 12.40% 27.56% 9.23% 13.94% 29.11%
Delta Air Lines DAL 45.27 0.81 1.79% 5.25 15.43% 84.57% 25.00% 8.94% 16.17% 21.14% 10.73% 17.96% 22.93%
JetBlue Airways JBLU 19.59 - 1.95 18.00% 9.88% 1.71%
Southwest Airlines LUV 44.11 0.48 1.09% 3.70 12.97% 87.03% 26.00% 12.40% 21.21% 22.63% 13.49% 22.29% 23.72%
Spirit Airlines SAVE 51.37 - 3.65 17.00% 15.23% 1.71%
SkyWest SKYW 33.07 0.20 0.60% 3.00 6.67% 93.33% 10.00% 8.31% 1.71% 9.33% 8.92% 2.31% 9.94%
United Cont'l Hldgs. UAL 63.11 - 6.75 30.00% 5.48% 1.71%
Average 1.25% 13.56% 86.44% 21.44% 8.72% 9.46% 21.52% 9.24% 14.58% 22.84%
Median 1.32% 14.08% 85.92% 25.00% 8.31% 3.22% 22.63% 9.08% 15.95% 23.72%
High 1.79% 21.92% 93.33% 34.50% 15.23% 25.30% 27.56% 13.49% 26.85% 29.11%
Low 0.60% 6.67% 78.08% 0.00% 3.22% 1.71% 9.33% 4.14% 2.31% 9.94%
Say 9.10% 15.90% 23.70%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Scheduled Passenger Airlines
2017 Assessment Year
Ke = (D1 / P0) + g
AP-9
Company American Airlines AAL Company Allegiant Travel ALGT Compnay Alaska Air Group ALK
Selected Inflation Rate - CAPM Sheet 2.40% Value Line 5 yr est. earnings growth 9.00% Value Line 5 yr est. earnings growth 9.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.024 1 30 0.090 1 30 0.095
2 29 0.024 2 29 0.090 2 29 0.095
3 28 0.024 3 28 0.090 3 28 0.095
4 27 0.024 4 27 0.090 4 27 0.095
5 26 0.024 5 26 0.090 5 26 0.095
6 25 0.025 6 25 0.087 6 25 0.092
7 24 0.027 7 24 0.085 7 24 0.089
8 23 0.028 8 23 0.082 8 23 0.086
9 22 0.030 9 22 0.079 9 22 0.083
10 21 0.031 10 21 0.076 10 21 0.080
11 20 0.032 11 20 0.074 11 20 0.077
12 19 0.034 12 19 0.071 12 19 0.074
13 18 0.035 13 18 0.068 13 18 0.071
14 17 0.036 14 17 0.065 14 17 0.067
15 16 0.038 15 16 0.063 15 16 0.064
16 15 0.039 16 15 0.060 16 15 0.061
17 14 0.041 17 14 0.057 17 14 0.058
18 13 0.042 18 13 0.054 18 13 0.055
19 12 0.043 19 12 0.052 19 12 0.052
20 11 0.045 20 11 0.049 20 11 0.049
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.22% Weighted Average 7.37% Weighted Average 7.68%
Selected Inflation Rate - CAPM Sheet 2.40% Value Line 5 yr est. div'd growth 37.50% Value Line 5 yr est. div'd growth 17.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.024 1 30 0.375 1 30 0.170
2 29 0.024 2 29 0.375 2 29 0.170
3 28 0.024 3 28 0.375 3 28 0.170
4 27 0.024 4 27 0.375 4 27 0.170
5 26 0.024 5 26 0.375 5 26 0.170
6 25 0.025 6 25 0.354 6 25 0.162
7 24 0.027 7 24 0.334 7 24 0.155
8 23 0.028 8 23 0.313 8 23 0.147
9 22 0.030 9 22 0.293 9 22 0.139
10 21 0.031 10 21 0.272 10 21 0.131
11 20 0.032 11 20 0.252 11 20 0.124
12 19 0.034 12 19 0.231 12 19 0.116
13 18 0.035 13 18 0.211 13 18 0.108
14 17 0.036 14 17 0.190 14 17 0.100
15 16 0.038 15 16 0.169 15 16 0.093
16 15 0.039 16 15 0.149 16 15 0.085
17 14 0.041 17 14 0.128 17 14 0.077
18 13 0.042 18 13 0.108 18 13 0.069
19 12 0.043 19 12 0.087 19 12 0.062
20 11 0.045 20 11 0.067 20 11 0.054
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.22% Weighted Average 25.30% Weighted Average 12.40%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Scheduled Passenger Airlines
2017 Assessment Year
AP-10
Company Delta Air Lines DAL Company JetBlue Airways JBLU Company Southwest Airlines LUV
Value Line 5 yr est. earnings growth 11.50% Value Line 5 yr est. earnings growth 13.00% Value Line 5 yr est. earnings growth 17.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.115 1 30 0.130 1 30 0.170
2 29 0.115 2 29 0.130 2 29 0.170
3 28 0.115 3 28 0.130 3 28 0.170
4 27 0.115 4 27 0.130 4 27 0.170
5 26 0.115 5 26 0.130 5 26 0.170
6 25 0.111 6 25 0.125 6 25 0.162
7 24 0.106 7 24 0.120 7 24 0.155
8 23 0.102 8 23 0.114 8 23 0.147
9 22 0.098 9 22 0.109 9 22 0.139
10 21 0.093 10 21 0.104 10 21 0.131
11 20 0.089 11 20 0.099 11 20 0.124
12 19 0.085 12 19 0.093 12 19 0.116
13 18 0.081 13 18 0.088 13 18 0.108
14 17 0.076 14 17 0.083 14 17 0.100
15 16 0.072 15 16 0.078 15 16 0.093
16 15 0.068 16 15 0.072 16 15 0.085
17 14 0.063 17 14 0.067 17 14 0.077
18 13 0.059 18 13 0.062 18 13 0.069
19 12 0.055 19 12 0.057 19 12 0.062
20 11 0.050 20 11 0.051 20 11 0.054
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 8.94% Weighted Average 9.88% Weighted Average 12.40%
Value Line 5 yr est. div'd growth 23.00% Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 31.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.230 1 30 0.000 1 30 0.310
2 29 0.230 2 29 0.000 2 29 0.310
3 28 0.230 3 28 0.000 3 28 0.310
4 27 0.230 4 27 0.000 4 27 0.310
5 26 0.230 5 26 0.000 5 26 0.310
6 25 0.219 6 25 0.003 6 25 0.294
7 24 0.207 7 24 0.006 7 24 0.277
8 23 0.196 8 23 0.009 8 23 0.261
9 22 0.184 9 22 0.012 9 22 0.244
10 21 0.173 10 21 0.014 10 21 0.228
11 20 0.161 11 20 0.017 11 20 0.211
12 19 0.150 12 19 0.020 12 19 0.195
13 18 0.138 13 18 0.023 13 18 0.178
14 17 0.127 14 17 0.026 14 17 0.162
15 16 0.115 15 16 0.029 15 16 0.145
16 15 0.104 16 15 0.032 16 15 0.129
17 14 0.092 17 14 0.035 17 14 0.112
18 13 0.081 18 13 0.037 18 13 0.096
19 12 0.069 19 12 0.040 19 12 0.079
20 11 0.058 20 11 0.043 20 11 0.063
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 16.17% Weighted Average 1.71% Weighted Average 21.21%
Industry: Scheduled Passenger Airlines
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
AP-11
Company Spirit Airlines SAVE Company SkyWest SKYW Company United Cont'l UAL
Value Line 5 yr est. earnings growth 21.50% Value Line 5 yr est. earnings growth 10.50% Value Line 5 yr est. earnings growth 6.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.215 1 30 0.105 1 30 0.060
2 29 0.215 2 29 0.105 2 29 0.060
3 28 0.215 3 28 0.105 3 28 0.060
4 27 0.215 4 27 0.105 4 27 0.060
5 26 0.215 5 26 0.105 5 26 0.060
6 25 0.204 6 25 0.101 6 25 0.059
7 24 0.194 7 24 0.098 7 24 0.058
8 23 0.183 8 23 0.094 8 23 0.057
9 22 0.173 9 22 0.090 9 22 0.057
10 21 0.162 10 21 0.087 10 21 0.056
11 20 0.152 11 20 0.083 11 20 0.055
12 19 0.141 12 19 0.079 12 19 0.054
13 18 0.131 13 18 0.076 13 18 0.053
14 17 0.120 14 17 0.072 14 17 0.052
15 16 0.109 15 16 0.068 15 16 0.051
16 15 0.099 16 15 0.064 16 15 0.050
17 14 0.088 17 14 0.061 17 14 0.050
18 13 0.078 18 13 0.057 18 13 0.049
19 12 0.067 19 12 0.053 19 12 0.048
20 11 0.057 20 11 0.050 20 11 0.047
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 15.23% Weighted Average 8.31% Weighted Average 5.48%
Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.000 1 30 0.000 1 30 0.000
2 29 0.000 2 29 0.000 2 29 0.000
3 28 0.000 3 28 0.000 3 28 0.000
4 27 0.000 4 27 0.000 4 27 0.000
5 26 0.000 5 26 0.000 5 26 0.000
6 25 0.003 6 25 0.003 6 25 0.003
7 24 0.006 7 24 0.006 7 24 0.006
8 23 0.009 8 23 0.009 8 23 0.009
9 22 0.012 9 22 0.012 9 22 0.012
10 21 0.014 10 21 0.014 10 21 0.014
11 20 0.017 11 20 0.017 11 20 0.017
12 19 0.020 12 19 0.020 12 19 0.020
13 18 0.023 13 18 0.023 13 18 0.023
14 17 0.026 14 17 0.026 14 17 0.026
15 16 0.029 15 16 0.029 15 16 0.029
16 15 0.032 16 15 0.032 16 15 0.032
17 14 0.035 17 14 0.035 17 14 0.035
18 13 0.037 18 13 0.037 18 13 0.037
19 12 0.040 19 12 0.040 19 12 0.040
20 11 0.043 20 11 0.043 20 11 0.043
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 1.71% Weighted Average 1.71% Weighted Average 1.71%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Scheduled Passenger Airlines
2017 Assessment Year
AP-12
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Southwest Airlines Co. 7.375 844741AN8 Deb 03/01/2027 11 BBB 4.21 3.95 4.00 4.11 4.14 3.74 3.77 3.84 4.12 4.12 4.65 4.57 4.10% 4.45%
Southwest Airlines Co. 5.12 844741AX6 Nts 03/01/2017 1 BBB 1.61 1.65 1.69 1.19 1.33 0.93 1.23 1.13 1.03 1.03 1.07 1.55 1.29% 1.22%
Southwest Airlines Co. 5.75 844741AY4 Nts 12/15/2016 0 BBB 1.36 1.58 2.40 1.15 1.55 1.34 1.27 1.24 1.30 1.30 1.45% 1.30%
Southwest Airlines Co. 5.75 844741AY4 Nt 12/15/2016 0 BBB 1.36 1.58 2.40 1.15 1.55 1.34 1.27 1.24 1.30 1.30 1.45% 1.30%
AMR Corp. 9 001765AC0 Deb 09/15/2016 0 NR 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73 1.73%
AMR Corp. 10.2 001765AE6 Deb 03/15/2020 4 NR 3.80 5.37 5.37 5.37 5.37 5.37 5.37 5.37 5.37 5.37 5.37 5.37 5.24% 5.37%
AMR Corp. 9.88 001765AG1 Deb 06/15/2020 4 NR 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33 5.33% 5.33%
AMR Corp. 10 001765AK2 Deb 04/15/2021 5 NR 4.99 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.86% 5.94%
AMR Corp. 9.75 001765AP1 Deb 08/15/2021 5 NR 4.77 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.90 5.81% 5.90%
AMR Corp. 9.8 001765AQ9 Deb 10/01/2021 5 NR 5.14 6.12 6.12 6.12 6.12 6.12 6.12 6.12 7.99 6.12 6.12 6.12 6.19% 6.12%
10 10 10 10 10 10 10 10 10 9 9 7 7 10 9
NOTES: *Floating Rates Not Included in Calculations Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 3.84% 4.10%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 2.07% 2.07%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings - -
Investment Grade (BBB- & Above) - -
Say: 4.00%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Scheduled Passenger Airlines
2017 Assessment Year
All Bonds
AP-13
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock Price
VL Historic
EPS VL Est EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF Ratio
Ke
Estimate -
Cash Flow
(Hist. P/CF)
Ke
Estimate -
Cash Flow
(Est. P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
American Airlines Group AAL 43.31 4.81 4.35 9.00 9.96 11.11% 10.04% 8.28 7.95 5.23 5.45 19.12% 18.36%
Allegiant Travel ALGT 153.89 13.21 10.95 11.65 14.05 8.58% 7.12% 19.53 17.75 7.88 8.67 12.69% 11.53%
Alaska Air Group ALK 77.69 7.32 7.90 10.61 9.83 9.42% 10.17% 9.54 11.05 8.14 7.03 12.28% 14.22%
Delta Air Lines DAL 45.27 5.31 5.25 8.53 8.62 11.73% 11.60% 7.12 7.95 6.36 5.69 15.73% 17.56%
JetBlue Airways JBLU 19.59 2.22 1.95 8.83 10.05 11.33% 9.95% 3.42 3.20 5.73 6.12 17.46% 16.33%
Southwest Airlines LUV 44.11 3.54 3.70 12.46 11.92 8.03% 8.39% 5.63 5.85 7.83 7.54 12.76% 13.26%
Spirit Airlines SAVE 51.37 3.76 3.65 13.66 14.07 7.32% 7.11% 5.47 5.25 9.39 9.78 10.65% 10.22%
SkyWest SKYW 33.07 2.62 3.00 12.62 11.02 7.92% 9.07% 7.50 8.35 4.41 3.96 22.68% 25.25%
United Cont'l Hldgs. UAL 63.11 8.73 6.75 7.23 9.35 13.83% 10.70% 17.27 13.30 3.65 4.75 27.36% 21.07%
Average 10.51 10.99 9.92% 9.35% 6.51 6.56 16.75% 16.42%
Median 10.61 10.05 9.42% 9.95% 6.36 6.12 15.73% 16.33%
High 13.66 14.07 13.83% 11.60% 9.39 9.78 27.36% 25.25%
Low 7.23 8.62 7.32% 7.11% 3.65 3.96 10.65% 10.22%
Say 9.60% 16.00%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
Industry: Scheduled Passenger Airlines
2017 Assessment Year
AP-14
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Southwest Airlines Co. 7.375 844741AN8 Deb 03/01/2027 11 BBB 5.77 5.66 5.69 5.74 5.76 5.60 5.61 5.66 5.80 5.80 6.04 6.01 5.76% 5.95%
Southwest Airlines Co. 5.12 844741AX6 Nts 03/01/2017 1 BBB 4.93 4.95 4.96 4.96 4.98 4.98 5.01 5.02 5.05 5.05 5.07 5.09 5.00% 5.07%
Southwest Airlines Co. 5.75 844741AY4 Nts 12/15/2016 0 BBB 5.53 5.56 5.57 5.58 5.62 5.63 5.65 5.67 5.71 5.71 5.74 5.75 5.64% 5.73%
Southwest Airlines Co. 5.75 844741AY4 Nt 12/15/2016 0 BBB 5.53 5.56 5.57 5.58 5.62 5.63 5.65 5.67 5.71 5.71 5.74 5.75 5.64% 5.73%
AMR Corp. 9 001765AC0 Deb 09/15/2016 0 NR 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43%
AMR Corp. 10.2 001765AE6 Deb 03/15/2020 4 NR 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.15 8.21% 8.19%
AMR Corp. 9.88 001765AG1 Deb 06/15/2020 4 NR 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84% 7.84%
AMR Corp. 10 001765AK2 Deb 04/15/2021 5 NR 8.14 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15% 8.15%
AMR Corp. 9.75 001765AP1 Deb 08/15/2021 5 NR 7.86 7.86 7.86 7.86 7.99 7.99 7.86 7.86 7.86 7.86 7.86 7.86 7.88% 7.86%
AMR Corp. 9.8 001765AQ9 Deb 10/01/2021 5 NR 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 6.12 7.99 7.99 7.83% 7.37%
10 10 10 10 10 10 10 10 10 9 9 9 9
NOTES: *Floating Rates Not Included in Calculations Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 6.94% 6.88%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.51% 5.51%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings - -
Investment Grade (BBB- & Above) - -
Say: 5.50%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Scheduled Passenger Airlines
2017 Assessment Year
All Bonds
AP-15
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)
Alaska Air Group ALK 55,000 723,000 686,000 3,002,000 2,982,000 1,862,500 2.95% 1,834,000 1.02
Allegiant Travel ALGT 28,836 626,571 646,179 808,871 813,178 717,721 4.02% 729,679 0.98
American Airlines Group AAL 991,000 21,111,000 20,561,000 24,983,000 24,344,000 23,047,000 4.30% 22,452,500 1.03
Delta Airlines DAL 388,000 8,400,000 7,946,000 7,300,000 7,008,000 7,850,000 4.94% 7,477,000 1.05
JetBlue Airways JBLU 111,000 2,096,000 1,688,000 1,336,000 1,255,000 1,716,000 6.47% 1,471,500 1.17
SkyWest SKYW 78,177 1,939,800 1,948,800 2,566,500 2,570,900 2,253,150 3.47% 2,259,850 1.00
Southwest Airlines LUV 122,000 3,477,000 3,178,000 3,445,000 3,387,000 3,461,000 3.52% 3,282,500 1.05
Spirit Airlines SAVE 41,654 652,400 659,300 1,033,700 1,012,400 843,050 4.94% 835,850 1.01
United Cont'l Holdings UAL 614,000 12,233,000 11,759,000 11,993,000 11,705,000 12,113,000 5.07% 11,732,000 1.03
Total 2,429,667 53,863,421 4.51% 52,074,879 1.03
Average 4.41% 1.04
Median 4.30% 1.03
High 6.47% 1.17
Low 2.95% 0.98
Say 4.40% 1.03
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
Industry: Scheduled Passenger Airlines
AP-16
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of Year
Closing
4th Qtr
Average
Annual
Average
AAL American Airlines Group high 42.74$ 41.60$ 43.78$ 41.76$ 35.17$ 33.58$ 36.74$ 37.35$ 39.52$ 40.93$ 47.14$ 50.64$ 46.69$ 43.31$ 37.79$
low 36.20$ 34.76$ 40.05$ 34.10$ 30.99$ 24.85$ 27.12$ 33.00$ 33.90$ 36.33$ 39.24$ 45.58$
ALGT Allegiant Travel high 167.35$ 170.00$ 182.50$ 183.91$ 162.80$ 155.32$ 152.81$ 139.89$ 147.55$ 158.00$ 169.95$ 173.82$ 166.40$ 153.89$ 151.54$
low 134.64$ 144.73$ 163.73$ 158.87$ 135.57$ 135.87$ 128.86$ 121.70$ 127.50$ 131.45$ 132.65$ 157.50$
ALK Alaska Air Group high 79.29$ 75.51$ 83.09$ 83.26$ 71.00$ 67.95$ 68.85$ 68.48$ 71.63$ 75.31$ 83.47$ 91.89$ 88.73$ 77.69$ 71.20$
low 64.18$ 61.58$ 73.96$ 70.12$ 64.43$ 54.51$ 56.45$ 64.25$ 64.19$ 65.60$ 69.12$ 80.72$
DAL Delta Air Lines high 49.75$ 49.45$ 50.50$ 49.80$ 44.66$ 43.71$ 41.35$ 39.51$ 40.23$ 42.41$ 49.41$ 52.76$ 49.19$ 45.27$ 42.91$
low 42.42$ 40.03$ 46.01$ 41.22$ 40.64$ 32.60$ 34.08$ 35.84$ 36.32$ 37.91$ 41.55$ 47.59$
JBLU JetBlue Airways high 22.14$ 23.67$ 22.67$ 21.54$ 20.00$ 18.77$ 18.94$ 18.50$ 17.91$ 19.32$ 21.25$ 23.12$ 22.42$ 19.59$ 19.07$
low 19.43$ 18.51$ 19.49$ 18.88$ 17.61$ 14.76$ 15.98$ 15.72$ 15.70$ 17.10$ 16.85$ 19.91$
LUV Southwest Airlines high 43.50$ 42.86$ 45.39$ 48.00$ 45.00$ 44.33$ 45.00$ 38.03$ 39.18$ 42.93$ 47.99$ 51.31$ 49.84$ 44.11$ 41.44$
low 35.51$ 33.96$ 39.99$ 43.09$ 40.74$ 36.48$ 37.01$ 35.42$ 36.31$ 36.91$ 39.33$ 46.19$
SAVE Spirit Airlines high 45.62$ 48.98$ 51.63$ 53.53$ 45.68$ 46.92$ 50.09$ 42.98$ 42.86$ 49.74$ 55.93$ 60.40$ 57.86$ 51.37$ 45.60$
low 35.17$ 38.46$ 45.76$ 43.01$ 38.85$ 40.49$ 41.21$ 37.79$ 37.17$ 41.42$ 46.80$ 53.92$
SKYW SkyWest high 18.67$ 18.35$ 20.48$ 24.64$ 24.64$ 26.46$ 29.71$ 29.32$ 29.87$ 30.50$ 38.25$ 39.60$ 36.45$ 33.07$ 25.32$
low 13.23$ 13.94$ 17.96$ 18.46$ 22.34$ 23.19$ 26.34$ 26.67$ 25.04$ 26.16$ 28.80$ 35.11$
UAL United Cont'l Hldgs. high 56.34$ 57.80$ 61.41$ 58.90$ 47.54$ 46.91$ 49.87$ 51.53$ 54.53$ 56.81$ 70.18$ 76.80$ 72.88$ 63.11$ 52.60$
low 42.17$ 44.00$ 55.29$ 45.58$ 43.33$ 37.41$ 37.64$ 44.15$ 49.28$ 51.34$ 55.53$ 68.00$
2017 Assessment Year
Industry: Scheduled Passenger Airlines
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
AP-17
Scheduled Airlines - Freight
2017 Capitalization Rate StudyFinal
Capital Structure
Equity 75.00% Page AF-4
Debt 25.00% Page AF-4
Equity Cost of Capital
Capital Asset Pricing Model 9.39% Page AF-5
Dividend Growth Model (g = Earnings Growth) 10.00% Page AF-9
Dividend Growth Model (g = Dividends Growth) 11.40% Page AF-9
Dividend Growth Model (g = b x ROE) 18.20% Page AF-9
9.60%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 3.70% Page AF-13
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
4.83%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 75.00% 9.60% 9.60% 7.20%
Debt 25.00% 4.83% 38.00% 2.99% 0.75%
WACC 100.00% 7.95%
WACC (Rounded) 8.00%
Freight Airlines - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Scheduled Freight Airlines
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
AF-2
Capital Structure
Equity 75.00% Page AF-4
Debt 25.00% Page AF-4
Equity Cost of Capital
NOI After-tax 5.80% Page AF-14
GCF 12.20% Page AF-14
Debt Cost of Capital
Standard and Poor's Current Yield 4.80% Page AF-15
Calculated Current Yield 3.00% Page AF-16
4.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 75.00% 5.80% 5.80% 4.35%
Debt 25.00% 4.00% 38.00% 2.48% 0.62%
Total 100.00% 4.97%
Total (Rounded) 5.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 75.00% 12.20% 12.20% 9.15%
Debt 25.00% 4.00% 38.00% 2.48% 0.62%
WACC 100.00% 9.77%
Total (Rounded) 9.80%
Freight Airlines - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Scheduled Freight Airlines
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Freight Airlines - NOI After-tax Direct Capitalization Rate
AF-3
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV
Common
Stock
MV Preferred
Stock*
MV Long
Term Debt
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLeases
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
Atlas Air Worldwide AAWW AIRTRANS B+ 25,017 46.61 1,166,137 0 1,968,173 754,769 3,889,079 30% 0% 70%
Air T Inc AIRT AIRTRANS C+ 2,373 19.24 45,655 0 1,864 8,741 56,261 81% 0% 19%
Air Transport Services Grp. ATSG AIRTRANS B 59,461 15.13 899,451 0 458,900 31,154 1,389,505 65% 0% 35%
FedEx Corp. FDX AIRTRANS A++ 318,000 182.39 58,000,021 0 14,363,000 14,345,579 86,708,599 67% 0% 33%
United Parcel Serv. UPS AIRTRANS A 869,000 112.23 97,530,768 0 17,134,000 1,275,300 115,940,068 84% 0% 16%
All Companies 157,642,032 0 33,925,937 16,415,543 207,983,512 76% 0% 24%
Average 65% 0% 35%
Median 67% 0% 33%
High 84% 0% 70%
Low 30% 0% 16%
Say 75% 25%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2017 - No changes to Guideline Companies
2016 - No changes to Guideline Companies
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Scheduled Freight Airlines
2017 Assessment Year
AF-4
Freight
k e = Cost of Equity 9.39%
R f = Risk Free Rate 2.79%
β = Beta 1.10
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Freight Airlines
2017 Assessment Year
k e = R f + β x ERP
"Value Line Selection & Opinion", Value Line (January 6, 2017)
AF-5
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Freight Airlines
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR S&P 500, 3 Stage Dividend Growth Model (See Exhibit)
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
AF-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Scheduled Freight Airlines
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 4.00% 6.00%
5 Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session
Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal
Disability Insurance Trust Funds (June 22, 2016)
Nominal Growth
AF-7
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
Atlas Air Worldwide AAWW AIRTRANS B+ 1.35
Air T Inc AIRT AIRTRANS C+ 0.45
Air Transport Services Grp. ATSG AIRTRANS B 1.35
FedEx Corp. FDX AIRTRANS A++ 1.10
United Parcel Serv. UPS AIRTRANS A 0.85
Average 1.02
Median 1.10
High 1.35
Low 0.45
Say 1.10
MONTANA DEPARTMENT OF REVENUE
Support for Beta Selection in CAPM
Industry: Scheduled Freight Airlines
2017 Assessment Year
AF-8
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est
Payout
Ratio Retention Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity
Cost of
Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPS
b =
1-Payout Ratio ROE
g =
Earnings g
g =
Dividends g
g =
b x ROE
K e
g = Earnings g
K e
g = Dividends g
K e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value Line
Multi Stg g
Wrksht
Multi Stg g
Wrksht H*I E+J E+K E+L
Atlas Air Worldwide AAWW 46.61 0.00 4.65 2.50% 3.64% 1.82%
Air T Inc AIRT 19.24 0.00 0.00 0.00 3.22% 3.22%
Air Transport Services Grp. ATSG 0.00 0.00 0.00 3.22% 3.22%
FedEx Corp. FDX 182.39 1.60 0.88% 11.95 13.39% 86.61% 20.00% 8.63% 12.71% 17.32% 9.50% 13.59% 18.20%
United Parcel Serv. UPS 112.23 3.12 2.78% 5.90 52.88% 47.12% 0.00% 7.68% 6.42% 10.46% 9.20%
Average 1.83% 33.14% 66.86% 4.50% 5.28% 5.48% 17.32% 9.98% 11.40% 18.20%
Median 1.83% 33.14% 66.86% 0.00% 3.64% 3.22% 17.32% 9.98% 11.40% 18.20%
High 2.78% 52.88% 86.61% 20.00% 8.63% 12.71% 17.32% 10.46% 13.59% 18.20%
Low 0.88% 13.39% 47.12% 0.00% 3.22% 1.82% 17.32% 9.50% 9.20% 18.20%
Say 10.00% 11.40% 18.20%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Scheduled Freight Airlines
2017 Assessment Year
Ke = (D1 / P0) + g
AF-9
Company Atlas Air WW AAWW Company Air T Inc AIRT Compnay Air Transport Svc. ATSG Company FedEx Corp. FDX Company United Parcel Serv. UPS
Value Line 5 yr est. earnings growth 3.00% Selected Inflation Rate - CAPM Sheet 2.40% Selected Inflation Rate - CAPM Sheet 2.40% Value Line 5 yr est. earnings growth 11.00% Value Line 5 yr est. earnings growth 9.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.030 1 30 0.024 1 30 0.024 1 30 0.110 1 30 0.095
2 29 0.030 2 29 0.024 2 29 0.024 2 29 0.110 2 29 0.095
3 28 0.030 3 28 0.024 3 28 0.024 3 28 0.110 3 28 0.095
4 27 0.030 4 27 0.024 4 27 0.024 4 27 0.110 4 27 0.095
5 26 0.030 5 26 0.024 5 26 0.024 5 26 0.110 5 26 0.095
6 25 0.031 6 25 0.025 6 25 0.025 6 25 0.106 6 25 0.092
7 24 0.040 7 24 0.027 7 24 0.027 7 24 0.102 7 24 0.089
8 23 0.033 8 23 0.028 8 23 0.028 8 23 0.098 8 23 0.086
9 22 0.034 9 22 0.030 9 22 0.030 9 22 0.094 9 22 0.083
10 21 0.035 10 21 0.031 10 21 0.031 10 21 0.090 10 21 0.080
11 20 0.036 11 20 0.032 11 20 0.032 11 20 0.086 11 20 0.077
12 19 0.037 12 19 0.034 12 19 0.034 12 19 0.082 12 19 0.074
13 18 0.038 13 18 0.035 13 18 0.035 13 18 0.078 13 18 0.071
14 17 0.039 14 17 0.036 14 17 0.036 14 17 0.074 14 17 0.067
15 16 0.040 15 16 0.038 15 16 0.038 15 16 0.070 15 16 0.064
16 15 0.041 16 15 0.039 16 15 0.039 16 15 0.066 16 15 0.061
17 14 0.042 17 14 0.041 17 14 0.041 17 14 0.062 17 14 0.058
18 13 0.043 18 13 0.042 18 13 0.042 18 13 0.058 18 13 0.055
19 12 0.044 19 12 0.043 19 12 0.043 19 12 0.054 19 12 0.052
20 11 0.045 20 11 0.045 20 11 0.045 20 11 0.050 20 11 0.049
21 10 0.046 21 10 0.046 21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.64% Weighted Average 3.22% Weighted Average 3.22% Weighted Average 8.63% Weighted Average 7.68%
Value Line 5 yr est. div'd growth 0.00% Selected Inflation Rate - CAPM Sheet 2.40% Selected Inflation Rate - CAPM Sheet 2.40% Value Line 5 yr est. div'd growth 17.50% Value Line 5 yr est. div'd growth 7.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 0.000 1 30 0.024 1 30 0.024 1 30 0.175 1 30 0.075
2 29 0.000 2 29 0.024 2 29 0.024 2 29 0.175 2 29 0.075
3 28 0.000 3 28 0.024 3 28 0.024 3 28 0.175 3 28 0.075
4 27 0.000 4 27 0.024 4 27 0.024 4 27 0.175 4 27 0.075
5 26 0.000 5 26 0.024 5 26 0.024 5 26 0.175 5 26 0.075
6 25 0.003 6 25 0.025 6 25 0.025 6 25 0.167 6 25 0.073
7 24 0.006 7 24 0.027 7 24 0.027 7 24 0.159 7 24 0.071
8 23 0.009 8 23 0.028 8 23 0.028 8 23 0.151 8 23 0.070
9 22 0.012 9 22 0.030 9 22 0.030 9 22 0.143 9 22 0.068
10 21 0.014 10 21 0.031 10 21 0.031 10 21 0.135 10 21 0.066
11 20 0.017 11 20 0.032 11 20 0.032 11 20 0.127 11 20 0.064
12 19 0.020 12 19 0.034 12 19 0.034 12 19 0.119 12 19 0.062
13 18 0.023 13 18 0.035 13 18 0.035 13 18 0.111 13 18 0.061
14 17 0.026 14 17 0.036 14 17 0.036 14 17 0.102 14 17 0.059
15 16 0.029 15 16 0.038 15 16 0.038 15 16 0.094 15 16 0.057
16 15 0.032 16 15 0.039 16 15 0.039 16 15 0.086 16 15 0.055
17 14 0.035 17 14 0.041 17 14 0.041 17 14 0.078 17 14 0.053
18 13 0.037 18 13 0.042 18 13 0.042 18 13 0.070 18 13 0.051
19 12 0.040 19 12 0.043 19 12 0.043 19 12 0.062 19 12 0.050
20 11 0.043 20 11 0.045 20 11 0.045 20 11 0.054 20 11 0.048
21 10 0.046 21 10 0.046 21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 1.82% Weighted Average 3.22% Weighted Average 3.22% Weighted Average 12.71% Weighted Average 6.42%
2017 Assessment Year
Industry: Scheduled Freight Airlines
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
MONTANA DEPARTMENT OF REVENUE
AF-10
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
United Parcel Service of Amer 8.38 911308AA2 Deb 4/1/2020 4 A+ 2.16 1.95 1.78 1.80 1.86 1.37 1.50 1.63 1.72 1.72 2.32 2.46 1.86% 2.17%
United Parcel Service Inc. 5.5 Sr Nt 1/15/2018 2 A+ 1.10 1.36 1.41 1.52 1.88 1.95 2.06 0.02 0.02 0.33 0.91 1.21 1.15% 0.82%
United Parcel Service Inc. 5.125 Note 10/1/2019 3 A+ 1.41 1.49 1.41 1.41 1.58 1.46 1.58 1.68 1.78 0.57 1.17 1.38 1.41% 1.04%
United Parcel Service, Inc. 3.125 Fixed Rt Sr. Nt 1/15/2021 5 A+ 2.02 1.88 1.61 1.68 1.78 1.61 1.58 1.36 1.29 1.46 2.12 2.27 1.72% 1.95%
United Parcel Service, Inc. 2.45 Sr Nt 10/1/2022 6 A+ 2.46 2.15 1.85 1.83 2.10 1.76 1.63 1.66 1.68 1.91 2.54 2.55 2.01% 2.33%
United Parcel Service, Inc. 6.2 Sr Nt 1/15/2038 22 A+ 4.07 3.95 3.76 3.68 3.66 3.34 3.20 3.15 3.29 3.59 3.98 3.99 3.64% 3.85%
United Parcel Service, Inc. 4.875 Fixed Rt Sr. Nt 11/15/2040 24 A+ 4.03 3.95 3.68 3.66 3.63 3.27 3.05 3.17 3.22 3.66 4.03 3.98 3.61% 3.89%
FedEx Corp 8 Nts 1/15/2019 3 BBB 2.24 2.12 2.07 2.17 2.41 2.35 2.54 0.41 0.56 0.99 1.61 1.88 1.78% 1.49%
FedEx Corp 2.625 Gtd NTs 8/1/2022 6 BBB 2.90 2.98 2.39 2.41 2.54 2.17 2.05 2.10 2.10 2.17 2.61 2.71 2.43% 2.50%
FedEx Corp 4 Gtd Fixed Rt NTs 1/15/2024 8 BBB 3.38 3.29 2.88 2.61 4.42 2.68 2.44 2.29 2.17 2.56 3.02 3.17 2.91% 2.92%
FedEx Corp 4.9 Gtd Fixed Rt NTs 1/15/2034 18 BBB 4.64 4.68 4.29 4.07 4.12 3.83 3.66 3.66 3.66 3.93 4.40 4.37 4.11% 4.23%
FedEx Corp 3.7875 Gtd NTs 8/1/2042 26 BBB 4.79 4.78 4.35 4.20 4.34 4.01 3.78 3.81 3.78 4.20 4.54 4.49 4.26% 4.41%
FedEx Corp 4.1 Sr Nt 10/15/2043 27 BBB 4.81 4.79 4.46 4.10 4.32 3.98 3.85 3.85 3.83 4.15 4.59 4.56 4.27% 4.43%
FedEx Corp 5.1 Gtd Fixed Rt NTs 1/15/2044 28 BBB 4.93 4.95 4.44 4.22 4.39 4.10 3.93 3.98 3.93 4.24 4.66 4.59 4.36% 4.50%
Federal Express 7.6 313309AP1 Nts 7/1/2097 81 BBB 5.91 5.76 5.42 5.32 5.39 5.45 5.45 5.51 5.84 5.84 6.21 6.09 5.68% 6.05%
15 15 15 15 15 15 15 15 15 15 15 15 15 15 15
Scheduled Airlines
NOTES: *Floating Rates Not Included in Calculations Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 3.01% 3.11%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 3.01% 3.01%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.30% 4.52%
Investment Grade (BBB- & Above) 4.30% 4.52%
Say: 3.70%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Scheduled Freight Airlines
2017 Assessment Year
All Bonds
AF-11
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS
VL Est
EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF Ratio
Ke
Estimate -
Cash Flow
(Hist.
P/CF)
Ke
Estimate -
Cash Flow
(Est. P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
Atlas Air Worldwide AAWW 46.61 0.53 4.65 87.95 10.02 1.14% 9.98% 5.52 7.25 8.44 6.43 11.84% 15.55%
Air T Inc AIRT 19.24 (1.07) 0.00 2.61 0.00 7.37 13.56%
Air Transport Services Grp. ATSG 15.13 0.36 0.00 42.02 2.38% 2.57 0.00 5.89 16.99%
FedEx Corp. FDX 182.39 11.51 11.95 15.85 15.26 6.31% 6.55% 21.27 23.60 8.57 7.73 11.66% 12.94%
United Parcel Serv. UPS 112.23 5.77 5.90 19.45 19.02 5.14% 5.26% 7.91 8.65 14.19 12.97 7.05% 7.71%
Average 41.32 14.77 3.74% 7.26% 8.89 9.04 12.22% 12.07%
Median 30.73 15.26 3.76% 6.55% 8.44 7.73 11.84% 12.94%
High 87.95 19.02 6.31% 9.98% 14.19 12.97 16.99% 15.55%
Low 15.85 10.02 1.14% 5.26% 5.89 6.43 7.05% 7.71%
Say 5.80% 12.20%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
Industry: Scheduled Freight Airlines
2017 Assessment Year
AF-12
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
United Parcel Service of Amer 8.38 911308AA2 Deb 4/1/2020 4 A+ 6.71 6.69 6.69 6.71 6.75 6.67 6.72 6.78 6.86 6.86 7.01 7.07 6.79% 6.98%
United Parcel Service Inc. 5.5 Sr Nt 1/15/2018 2 A+ 5.06 5.09 5.09 5.10 5.14 5.15 5.16 5.18 5.20 5.23 5.26 5.28 5.16% 5.26%
United Parcel Service Inc. 5.125 Note 10/1/2019 3 A+ 4.62 4.63 4.62 4.62 4.65 4.63 4.65 4.66 4.67 0.07 4.75 4.77 4.28% 3.20%
United Parcel Service, Inc. 3.125 Fixed Rt Sr. Nt 1/15/2021 5 A+ 2.97 2.95 2.91 2.92 2.94 2.92 2.91 2.93 2.92 2.94 3.01 3.03 2.95% 2.99%
United Parcel Service, Inc. 2.45 Sr Nt 10/1/2022 6 A+ 2.45 2.40 2.36 2.37 2.40 2.36 2.34 2.34 2.35 2.38 2.46 2.46 2.39% 2.43%
United Parcel Service, Inc. 6.2 Sr Nt 1/15/2038 22 A+ 4.76 4.67 4.55 4.50 4.50 4.31 4.22 4.24 4.32 4.49 4.73 4.73 4.50% 4.65%
United Parcel Service, Inc. 4.875 Fixed Rt Sr. Nt 11/15/2040 24 A+ 4.31 4.26 4.08 4.07 4.06 3.85 3.72 3.80 3.83 4.08 4.32 4.28 4.06% 4.23%
FedEx Corp 8 Nts 1/15/2019 3 BBB 6.86 6.84 6.84 6.85 6.90 6.89 6.92 6.95 6.97 7.03 7.11 7.15 6.94% 7.10%
FedEx Corp 2.625 Gtd NTs 8/1/2022 6 BBB 2.67 2.68 2.59 2.60 2.61 2.56 2.54 2.55 2.55 2.56 2.62 2.64 2.60% 2.61%
FedEx Corp 4 Gtd Fixed Rt NTs 1/15/2024 8 BBB 3.84 3.81 3.70 3.64 3.68 3.66 3.59 3.60 3.58 3.66 3.77 3.80 3.69% 3.74%
FedEx Corp 4.9 Gtd Fixed Rt NTs 1/15/2034 18 BBB 4.75 4.77 4.55 4.44 4.46 4.31 4.22 4.24 4.24 4.38 4.63 4.61 4.47% 4.54%
FedEx Corp 3.7875 Gtd NTs 8/1/2042 26 BBB 4.49 4.48 4.18 4.08 4.17 3.96 3.81 3.84 3.82 4.07 7.11 4.28 4.36% 5.15%
FedEx Corp 4.1 Sr Nt 10/15/2043 27 BBB 4.58 4.58 4.34 4.11 4.25 4.02 3.94 3.94 3.92 4.13 4.42 4.41 4.22% 4.32%
FedEx Corp 5.1 Gtd Fixed Rt NTs 1/15/2044 28 BBB 4.98 4.99 4.61 4.46 4.58 4.38 4.26 4.30 4.28 4.49 4.78 4.74 4.57% 4.67%
Federal Express 7.6 313309AP1 Nts 7/1/2097 81 BBB 5.92 5.77 5.44 5.64 5.41 5.47 5.47 5.53 5.85 5.85 6.22 6.10 5.72% 6.06%
Southwest Airlines Co. 7.375 844741AN8 Deb 03/01/2027 11 BBB 5.77 5.66 5.69 5.74 5.76 5.60 5.61 5.66 5.80 5.80 6.04 6.01 5.76% 5.95%
Southwest Airlines Co. 5.12 844741AX6 Nts 03/01/2017 1 BBB 4.93 4.95 4.96 4.96 4.98 4.98 5.01 5.02 5.05 5.05 5.07 5.09 5.00% 5.07%
Southwest Airlines Co. 5.75 844741AY4 Nts 12/15/2016 0 BBB 5.53 5.56 5.57 5.58 5.62 5.63 5.65 5.67 5.71 5.71 5.74 5.75 5.64% 5.73%
Southwest Airlines Co. 5.75 844741AY4 Nt 12/15/2016 0 BBB 5.53 5.56 5.57 5.58 5.62 5.63 5.65 5.67 5.71 5.71 5.74 5.75 5.64% 5.73%
AMR Corp. 9 001765AC0 Deb 09/15/2016 0 NR 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43%
AMR Corp. 10.2 001765AE6 Deb 03/15/2020 4 NR 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.21 8.15 8.21% 8.19%
AMR Corp. 9.88 001765AG1 Deb 06/15/2020 4 NR 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84 7.84% 7.84%
AMR Corp. 10 001765AK2 Deb 04/15/2021 5 NR 8.14 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15 8.15% 8.15%
AMR Corp. 9.75 001765AP1 Deb 08/15/2021 5 NR 7.86 7.86 7.86 7.86 7.99 7.99 7.86 7.86 7.86 7.86 7.86 7.86 7.88% 7.86%
AMR Corp. 9.8 001765AQ9 Deb 10/01/2021 5 NR 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 7.99 6.12 7.99 7.99 7.83% 7.37%
25 25 25 25 25 25 25 25 25 24 24 24 24
Scheduled Airlines
NOTES: *Floating Rates Not Included in Calculations Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.44% 5.41%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 4.67% 4.67%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.57% 4.85%
Investment Grade (BBB- & Above) 4.57% 4.85%
Say: 4.80%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Scheduled Freight Airlines
2017 Assessment Year
All Bonds
AF-13
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)
Air T Inc AIRT 81 5,000 5,000 1,864 1,864 3,432 2.35% 3,432 1.00
Air Transport Services Grp. ATSG 11,318 319,000 317,700 458,900 458,700 388,950 2.91% 388,200 1.00
Atlas Air Worldwide AAWW 84,650 1,981,074 1,901,307 1,968,173 1,851,411 1,974,624 4.29% 1,876,359 1.05
FedEx Corp. FDX 336,000 7,451,000 7,268,000 14,363,000 13,867,000 10,907,000 3.08% 10,567,500 1.03
United Parcel Serv. UPS 381,000 15,524,000 14,334,000 17,134,000 16,075,000 16,329,000 2.33% 15,204,500 1.07
Total 813,049 29,603,006 2.75% 28,039,991 1.06
Average 2.99% 1.03
Median 2.91% 1.03 High 4.29% 1.07
Low 2.33% 1.00
Say 3.00% 1.03
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield Calculations
Industry: Scheduled Freight Airlines
AF-14
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of Year
Closing
4th Qtr
Average
Annual
Average
AAWW Atlas Air Worldwide high 41.19$ 39.93$ 43.44$ 42.22$ 57.77$ 47.24$ 43.50$ 43.95$ 43.14$ 43.73$ 51.50$ 53.95$ 52.15$ 46.61$ 42.01$
low 31.99$ 33.37$ 36.30$ 38.03$ 38.23$ 37.88$ 39.13$ 34.22$ 37.01$ 40.85$ 40.25$ 49.40$
AIRT Air T Inc high 24.21$ 25.22$ 26.62$ 26.00$ 26.99$ 25.74$ 23.50$ 23.25$ 22.20$ 20.37$ 19.75$ 23.55$ 23.00$ 19.24$ 21.87$
low 18.70$ 19.52$ 24.16$ 23.00$ 23.04$ 21.50$ 18.53$ 19.50$ 17.75$ 17.25$ 17.24$ 17.30$
ATSG Air Transport Services Grp. high 9.99$ 11.85$ 15.53$ 15.43$ 14.31$ 13.88$ 14.57$ 14.91$ 14.90$ 14.76$ 16.95$ 17.29$ 15.96$ 15.13$ 13.51$
low 9.05$ 9.33$ 11.42$ 14.06$ 12.41$ 12.36$ 12.72$ 13.62$ 13.08$ 13.04$ 12.94$ 15.78$
FDX FedEx Corp. high 147.00$ 139.53$ 164.84$ 169.30$ 168.18$ 166.50$ 163.64$ 169.57$ 177.36$ 176.35$ 192.58$ 201.57$ 186.20$ 182.39$ 161.23$
119.71$ 122.78$ 137.30$ 160.73$ 156.91$ 145.00$ 150.00$ 158.62$ 158.20$ 168.00$ 170.16$ 185.68$
GLUX Great Lakes Aviation high 0.28$ 0.28$ 0.23$ 0.25$ 0.14$ 0.14$ 0.17$ 0.14$ 0.13$ 0.25$ 0.24$ 0.15$ 0.09$ 0.15$ 0.13$
low 0.10$ 0.04$ 0.04$ 0.05$ 0.01$ 0.04$ 0.06$ 0.12$ 0.11$ 0.09$ 0.09$ 0.08$
RJETQ Republic Airways Holdings Inc high 3.87$ 3.54$ 2.72$ 2.05$ 1.04$ 0.90$ 0.71$ 1.13$ 1.18$ 0.94$ 0.70$ 0.45$ 0.06$ 0.48$ 1.09$
no Tissues low 1.61$ 0.61$ 0.68$ 0.76$ 0.55$ 0.61$ 0.33$ 0.20$ 0.73$ 0.51$ 0.25$ 0.04$
UPS United Parcel Serv. high 96.10$ 99.50$ 106.61$ 107.21$ 105.60$ 107.74$ 111.83$ 111.03$ 110.72$ 109.61$ 116.96$ 120.44$ 114.64$ 112.23$ 105.44$
low 87.30$ 92.04$ 97.03$ 103.41$ 100.05$ 101.95$ 105.96$ 106.92$ 106.07$ 105.87$ 106.16$ 114.36$
2017 Assessment Year
Industry: Scheduled Freight Airlines
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
AF-15
Electric Utilities
2017 Capitalization Rate StudyFinal
Capital Structure
Equity 60.00% Page EU-5
Debt 40.00% Page EU-5
Equity Cost of Capital
Capital Asset Pricing Model 6.99% Page EU-6
Dividend Growth Model (g = Earnings Growth) 7.90% Page EU-10
Dividend Growth Model (g = Dividend Growth) 8.90% Page EU-10
Dividend Growth Model (g = b x ROE) 7.00% Page EU-10
7.30%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 4.00% Page EU-19
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
4.83%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 7.30% 7.30% 4.38%
Debt 40.00% 4.83% 38.00% 2.99% 1.20%
WACC 100.00% 5.58%
WACC (Rounded) 5.60%
Electric Utilities - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Electric Utilities
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
EU-2
Capital Structure
Equity 60.00% Page EU-5
Debt 40.00% Page EU-5
Equity Cost of Capital
NOI After-tax 5.50% Page EU-20
GCF 11.60% Page EU-20
Debt Cost of Capital
Standard and Poor's Current Yield 5.10% Page EU-25
Calculated Current Yield 4.82% Page EU-26
4.95%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 5.50% 5.50% 3.30%
Debt 40.00% 4.95% 4.95% 1.98%
Total 100.00% 5.28%
Total (Rounded) 5.30%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 11.60% 11.60% 6.96%
Debt 40.00% 4.95% 4.95% 1.98%
WACC 100.00% 8.94%
Total (Rounded) 9.00%
Electric Utilities - GCF Direct Capitalization Rate - If Using Regulatory Tax Str.
2017 Assessment Year
Industry: Electric Utilities
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Electric Utilities - NOI After-tax Direct Capitalization Rate - If Using Regulatory Tax Str.
EU-3
Capital Structure
Equity 60.00% Page EU-5
Debt 40.00% Page EU-5
Equity Cost of Capital
NOI After-tax 5.50% Page EU-20
GCF 11.60% Page EU-20
Debt Cost of Capital
Standard and Poor's Current Yield 5.10% Page EU-25
Calculated Current Yield 4.82% Page EU-26
4.95%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 5.50% 5.50% 3.30%
Debt 40.00% 4.95% 38.00% 3.07% 1.23%
Total 100.00% 4.53%
Total (Rounded) 4.60%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 11.60% 11.60% 6.96%
Debt 40.00% 4.95% 38.00% 3.07% 1.23%
WACC 100.00% 8.19%
Total (Rounded) 8.20%
Electric Utilities - GCF Direct Capitalization Rate - If Using Marginal Tax
MONTANA DEPARTMENT OF REVENUE
Direct Capitalization Rate Study
Industry: Electric Utilities
2017 Assessment Year
Electric Utilities - NOI After-tax Direct Capitalization Rate - If Using Marginal Tax
EU-4
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLease
s
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
Alliant Energy LNT UTILCENT A 227,674 36.97 8,415,957 200,000 4,799,000 47,214 13,462,171 63% 1% 36%
Avista Corp. AVA UTILWEST A 64,188 40.65 2,609,133 0 1,825,372 3,282 4,437,786 59% 0% 41%
Black Hills BKH UTILWEST A 53,397 59.28 3,165,313 0 3,351,305 23,770 6,540,388 48% 0% 52%
G't Plains Energy GXP UTILCENT B+ 215,479 27.29 5,880,784 836,200 4,000,000 115,236 10,832,220 54% 8% 38%
IDACORP Inc. IDA UTILWEST A 39,151 76.90 3,010,632 0 1,858,666 37,123 4,906,421 61% 0% 39%
NorthWestern Corp. NWE UTILWEST B+ 51,957 56.28 2,924,080 0 1,878,377 0 4,802,457 61% 0% 39%
OGE Energy OGE UTILCENT A 40,400 31.47 1,271,523 0 2,803,900 64,181 4,139,604 31% 0% 69%
Pinnacle West Capital PNW UTILWEST A+ 111,392 74.74 8,325,442 0 4,425,789 158,516 12,909,747 64% 0% 36%
PNM Resources PNM UTILWEST B 79,654 32.36 2,577,591 11,529 2,540,693 175,400 5,305,213 49% 0% 51%
Portland General POR UTILWEST B++ 88,947 42.37 3,768,820 0 2,693,000 121,085 6,582,905 57% 0% 43%
Xcel Energy Inc. XEL UTILWEST A+ 507,223 40.01 20,293,139 0 15,513,209 227,441 36,033,789 56% 0% 44%
All Companies 62,242,413 1,047,729 45,689,311 973,248 109,952,702 57% 1% 42%
Average 55% 1% 44%
Median 57% 0% 41%
High 64% 8% 69%
Low 31% 0% 36%
Say 60% 0% 40%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2016 - Removed MDU from guideline companies as it was not in the same industry.
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Electric Utilities
2017 Assessment Year
EU-5
EU
k e = Cost of Equity 6.99%
R f = Risk Free Rate 2.79%
β = Beta 0.70
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Electric Utilities
Capital Asset Pricing Model (CAPM)
"Value Line Selection & Opinion", Value Line (January 6, 2017)
EU-6
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Electric Utilities
Capital Asset Pricing Model (CAPM)
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR 3 Stage Dividend Growth Model, S & P 500, See Exhibit
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
EU-7
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Electric Utilities
Capital Asset Pricing Model (CAPM)
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 6.00%
5 Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session
Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal
Disability Insurance Trust Funds (June 22, 2016)
Nominal Growth
EU-8
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
Alliant Energy LNT UTILCENT A 0.70
Avista Corp. AVA UTILWEST A 0.70
Black Hills BKH UTILWEST A 0.85
G't Plains Energy GXP UTILCENT B+ 0.75
IDACORP Inc. IDA UTILWEST A 0.75
NorthWestern Corp. NWE UTILWEST B+ 0.65
OGE Energy OGE UTILCENT A 0.95
Pinnacle West Capital PNW UTILWEST A+ 0.70
PNM Resources PNM UTILWEST B 0.70
Portland General POR UTILWEST B++ 0.70
Xcel Energy Inc. XEL UTILWEST A+ 0.60
Average 0.73
Median 0.70
High 0.95
Low 0.60
Say 0.70
2017 Assessment Year
Industry: Electric Utilities
Support for Beta Selection in CAPM
MONTANA DEPARTMENT OF REVENUE
EU-9
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est
Payout Ratio
Retention
Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity Cost of Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPS
b =
1-Payout Ratio ROE
g =
Earnings g
g =
Dividends g
g =
b x ROE
K e
g = Earnings g
K e
g = Dividends g
K e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value Line
Multi Stg g
Wrksht
Multi Stg g
Wrksht H*I E+J E+K E+L
Alliant Energy LNT 36.97 1.26 3.41% 2.00 63.00% 37.00% 11.50% 5.48% 4.54% 4.26% 8.89% 7.95% 7.66%
Avista Corp. AVA 40.65 1.37 3.37% 1.95 70.26% 29.74% 7.50% 3.59% 3.59% 2.23% 6.96% 6.96% 5.60%
Black Hills BKH 59.28 1.84 3.10% 3.50 52.57% 47.43% 8.50% 6.42% 5.48% 4.03% 9.53% 8.58% 7.14%
G't Plains Energy GXP 27.29 1.12 4.10% 1.30 86.15% 13.85% 5.00% 1.71% 5.17% 0.69% 5.81% 9.27% 4.80%
IDACORP Inc. IDA 76.90 2.24 2.91% 4.05 55.31% 44.69% 9.00% 3.59% 6.42% 4.02% 6.51% 9.34% 6.94%
NorthWestern Corp. NWE 56.28 2.08 3.70% 3.45 60.29% 39.71% 10.00% 5.80% 5.17% 3.97% 9.49% 8.86% 7.67%
OGE Energy OGE 31.47 1.27 4.04% 2.05 61.95% 38.05% 11.50% 3.59% 7.68% 4.38% 7.63% 11.72% 8.41%
PNM Resources PNM 32.36 0.97 3.00% 1.85 52.43% 47.57% 7.50% 7.37% 8.00% 3.57% 10.37% 10.99% 6.57%
Pinnacle West Capital PNW 74.74 2.68 3.59% 4.30 62.33% 37.67% 9.00% 4.22% 4.85% 3.39% 7.81% 8.44% 6.98%
Portland General POR 42.37 1.34 3.16% 2.30 58.26% 41.74% 8.50% 4.22% 5.48% 3.55% 7.39% 8.64% 6.71%
Xcel Energy Inc. XEL 40.01 1.44 3.60% 2.30 62.61% 37.39% 10.00% 5.17% 5.48% 3.74% 8.77% 9.08% 7.34%
Average 3.45% 62.29% 37.71% 8.91% 4.65% 5.62% 3.44% 8.10% 9.08% 6.89%
Median 3.41% 61.95% 38.05% 9.00% 4.22% 5.48% 3.74% 7.81% 8.86% 6.98%
High 4.10% 86.15% 47.57% 11.50% 7.37% 8.00% 4.38% 10.37% 11.72% 8.41%
Low 2.91% 52.43% 13.85% 5.00% 1.71% 3.59% 0.69% 5.81% 6.96% 4.80%
Say 7.90% 8.90% 7.00%
Ke = (D1 / P0) + g
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Electric Utilities
2017 Assessment Year
EU-10
Company Alliant Energy LNT Company Avista Corp. AVA Compnay Black Hills BKH
Value Line 5 yr est. earnings growth 6.00% Value Line 5 yr est. earnings growth 3.00% Value Line 5 yr est. earnings growth 7.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.06 1 30 0.03 1 30 0.08
2 29 0.06 2 29 0.03 2 29 0.08
3 28 0.06 3 28 0.03 3 28 0.08
4 27 0.06 4 27 0.03 4 27 0.08
5 26 0.06 5 26 0.03 5 26 0.08
6 25 0.06 6 25 0.03 6 25 0.07
7 24 0.06 7 24 0.03 7 24 0.07
8 23 0.06 8 23 0.03 8 23 0.07
9 22 0.06 9 22 0.03 9 22 0.07
10 21 0.06 10 21 0.04 10 21 0.07
11 20 0.05 11 20 0.04 11 20 0.06
12 19 0.05 12 19 0.04 12 19 0.06
13 18 0.05 13 18 0.04 13 18 0.06
14 17 0.05 14 17 0.04 14 17 0.06
15 16 0.05 15 16 0.04 15 16 0.06
16 15 0.05 16 15 0.04 16 15 0.06
17 14 0.05 17 14 0.04 17 14 0.05
18 13 0.05 18 13 0.04 18 13 0.05
19 12 0.05 19 12 0.04 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 5.48% Weighted Average 3.59% Weighted Average 6.42%
Value Line 5 yr est. div'd growth 4.50% Value Line 5 yr est. div'd growth 3.00% Value Line 5 yr est. div'd growth 6.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.05 1 30 0.03 1 30 0.06
2 29 0.05 2 29 0.03 2 29 0.06
3 28 0.05 3 28 0.03 3 28 0.06
4 27 0.05 4 27 0.03 4 27 0.06
5 26 0.05 5 26 0.03 5 26 0.06
6 25 0.05 6 25 0.03 6 25 0.06
7 24 0.05 7 24 0.03 7 24 0.06
8 23 0.05 8 23 0.03 8 23 0.06
9 22 0.05 9 22 0.03 9 22 0.06
10 21 0.05 10 21 0.04 10 21 0.06
11 20 0.05 11 20 0.04 11 20 0.05
12 19 0.05 12 19 0.04 12 19 0.05
13 18 0.05 13 18 0.04 13 18 0.05
14 17 0.05 14 17 0.04 14 17 0.05
15 16 0.05 15 16 0.04 15 16 0.05
16 15 0.05 16 15 0.04 16 15 0.05
17 14 0.05 17 14 0.04 17 14 0.05
18 13 0.05 18 13 0.04 18 13 0.05
19 12 0.05 19 12 0.04 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 4.54% Weighted Average 3.59% Weighted Average 5.48%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Electric Utilities
2017 Assessment Year
EU-11
Company G't Plains Energy GXP Company IDACORP, Inc. IDA Company NorthWestern NWE
Value Line 5 yr est. earnings growth 0.00% Value Line 5 yr est. earnings growth 3.00% Value Line 5 yr est. earnings growth 6.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.00 1 30 0.03 1 30 0.07
2 29 0.00 2 29 0.03 2 29 0.07
3 28 0.00 3 28 0.03 3 28 0.07
4 27 0.00 4 27 0.03 4 27 0.07
5 26 0.00 5 26 0.03 5 26 0.07
6 25 0.00 6 25 0.03 6 25 0.06
7 24 0.01 7 24 0.03 7 24 0.06
8 23 0.01 8 23 0.03 8 23 0.06
9 22 0.01 9 22 0.03 9 22 0.06
10 21 0.01 10 21 0.04 10 21 0.06
11 20 0.02 11 20 0.04 11 20 0.06
12 19 0.02 12 19 0.04 12 19 0.06
13 18 0.02 13 18 0.04 13 18 0.06
14 17 0.03 14 17 0.04 14 17 0.05
15 16 0.03 15 16 0.04 15 16 0.05
16 15 0.03 16 15 0.04 16 15 0.05
17 14 0.03 17 14 0.04 17 14 0.05
18 13 0.04 18 13 0.04 18 13 0.05
19 12 0.04 19 12 0.04 19 12 0.05
20 11 0.04 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 1.71% Weighted Average 3.59% Weighted Average 5.80%
Value Line 5 yr est. div'd growth 5.50% Value Line 5 yr est. div'd growth 7.50% Value Line 5 yr est. div'd growth 5.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.06 1 30 0.08 1 30 0.06
2 29 0.06 2 29 0.08 2 29 0.06
3 28 0.06 3 28 0.08 3 28 0.06
4 27 0.06 4 27 0.08 4 27 0.06
5 26 0.06 5 26 0.08 5 26 0.06
6 25 0.05 6 25 0.07 6 25 0.05
7 24 0.05 7 24 0.07 7 24 0.05
8 23 0.05 8 23 0.07 8 23 0.05
9 22 0.05 9 22 0.07 9 22 0.05
10 21 0.05 10 21 0.07 10 21 0.05
11 20 0.05 11 20 0.06 11 20 0.05
12 19 0.05 12 19 0.06 12 19 0.05
13 18 0.05 13 18 0.06 13 18 0.05
14 17 0.05 14 17 0.06 14 17 0.05
15 16 0.05 15 16 0.06 15 16 0.05
16 15 0.05 16 15 0.06 16 15 0.05
17 14 0.05 17 14 0.05 17 14 0.05
18 13 0.05 18 13 0.05 18 13 0.05
19 12 0.05 19 12 0.05 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 5.17% Weighted Average 6.42% Weighted Average 5.17%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Electric Utilities
2017 Assessment Year
EU-12
Company OGE Energy OGE Company Pinnacle West PNW Company PNM Resources PNM
Value Line 5 yr est. earnings growth 3.00% Value Line 5 yr est. earnings growth 4.00% Value Line 5 yr est. earnings growth 9.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.03 1 30 0.04 1 30 0.09
2 29 0.03 2 29 0.04 2 29 0.09
3 28 0.03 3 28 0.04 3 28 0.09
4 27 0.03 4 27 0.04 4 27 0.09
5 26 0.03 5 26 0.04 5 26 0.09
6 25 0.03 6 25 0.04 6 25 0.09
7 24 0.03 7 24 0.04 7 24 0.08
8 23 0.03 8 23 0.04 8 23 0.08
9 22 0.03 9 22 0.04 9 22 0.08
10 21 0.04 10 21 0.04 10 21 0.08
11 20 0.04 11 20 0.04 11 20 0.07
12 19 0.04 12 19 0.04 12 19 0.07
13 18 0.04 13 18 0.04 13 18 0.07
14 17 0.04 14 17 0.04 14 17 0.07
15 16 0.04 15 16 0.04 15 16 0.06
16 15 0.04 16 15 0.04 16 15 0.06
17 14 0.04 17 14 0.04 17 14 0.06
18 13 0.04 18 13 0.04 18 13 0.05
19 12 0.04 19 12 0.05 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 3.59% Weighted Average 4.22% Weighted Average 7.37%
Value Line 5 yr est. div'd growth 9.50% Value Line 5 yr est. div'd growth 5.00% Value Line 5 yr est. div'd growth 10.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.10 1 30 0.05 1 30 0.10
2 29 0.10 2 29 0.05 2 29 0.10
3 28 0.10 3 28 0.05 3 28 0.10
4 27 0.10 4 27 0.05 4 27 0.10
5 26 0.10 5 26 0.05 5 26 0.10
6 25 0.09 6 25 0.05 6 25 0.10
7 24 0.09 7 24 0.05 7 24 0.09
8 23 0.09 8 23 0.05 8 23 0.09
9 22 0.08 9 22 0.05 9 22 0.09
10 21 0.08 10 21 0.05 10 21 0.08
11 20 0.08 11 20 0.05 11 20 0.08
12 19 0.07 12 19 0.05 12 19 0.08
13 18 0.07 13 18 0.05 13 18 0.07
14 17 0.07 14 17 0.05 14 17 0.07
15 16 0.06 15 16 0.05 15 16 0.07
16 15 0.06 16 15 0.05 16 15 0.06
17 14 0.06 17 14 0.05 17 14 0.06
18 13 0.06 18 13 0.05 18 13 0.06
19 12 0.05 19 12 0.05 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 7.68% Weighted Average 4.85% Weighted Average 8.00%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Electric Utilities
2017 Assessment Year
EU-13
Company Portland Gen'l POR Company Xcel Energy, Inc. XEL
Value Line 5 yr est. earnings growth 4.00% Value Line 5 yr est. earnings growth 5.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.04 1 30 0.06
2 29 0.04 2 29 0.06
3 28 0.04 3 28 0.06
4 27 0.04 4 27 0.06
5 26 0.04 5 26 0.06
6 25 0.04 6 25 0.05
7 24 0.04 7 24 0.05
8 23 0.04 8 23 0.05
9 22 0.04 9 22 0.05
10 21 0.04 10 21 0.05
11 20 0.04 11 20 0.05
12 19 0.04 12 19 0.05
13 18 0.04 13 18 0.05
14 17 0.04 14 17 0.05
15 16 0.04 15 16 0.05
16 15 0.04 16 15 0.05
17 14 0.04 17 14 0.05
18 13 0.04 18 13 0.05
19 12 0.05 19 12 0.05
20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05
Weighted Average 4.22% Weighted Average 5.17%
Value Line 5 yr est. div'd growth 6.00% Value Line 5 yr est. div'd growth 6.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.06 1 30 0.06
2 29 0.06 2 29 0.06
3 28 0.06 3 28 0.06
4 27 0.06 4 27 0.06
5 26 0.06 5 26 0.06
6 25 0.06 6 25 0.06
7 24 0.06 7 24 0.06
8 23 0.06 8 23 0.06
9 22 0.06 9 22 0.06
10 21 0.06 10 21 0.06
11 20 0.05 11 20 0.05
12 19 0.05 12 19 0.05
13 18 0.05 13 18 0.05
14 17 0.05 14 17 0.05
15 16 0.05 15 16 0.05
16 15 0.05 16 15 0.05
17 14 0.05 17 14 0.05
18 13 0.05 18 13 0.05
19 12 0.05 19 12 0.05
20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05
Weighted Average 5.48% Weighted Average 5.48%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Electric Utilities
2017 Assessment Year
EU-14
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Tennessee Valley Authority 6.75 880591CJ9 Global Pwr Bonds'95E 11/1/2025 9 AAA 2.62 2.47 2.46 2.45 2.47 2.16 2.09 2.09 2.20 2.20 2.69 2.85 2.40% 2.58%
Tennessee Valley Authority 6.25 880591CU4 Pwr Bonds '97E 12/15/2017 1 AAA 0.95 0.85 0.87 0.89 0.94 0.74 0.84 0.91 0.80 0.80 0.97 0.97 0.88% 0.91%
Tennessee Valley Authority 7.125 880591DM1 Global Pwr Bonds '00G 5/1/2030 14 AAA 3.24 2.95 2.98 3.01 2.98 2.53 2.48 2.47 2.63 2.63 3.15 3.30 2.86% 3.03%
Tennessee Valley Authority 4.88 880591DS8 Global Pwr Bonds'01D 12/15/2016 0 AAA 0.76 0.77 0.72 0.67 0.82 0.53 0.51 0.37 0.64%
Tennessee Valley Authority 4.7 880591DV1 Pwr Bonds\03 B" 7/15/2033 17 AAA 3.50 3.30 3.29 3.27 3.14 2.87 2.75 2.74 3.05 3.05 3.50 3.34 3.15% 3.30%
Madison Gas & Electric 7.7 557497AL8 1st 2/15/2028 12 AA- 7.60 7.59 7.59 7.59 7.60 7.59 7.59 7.59 7.59 7.59 7.61 7.63 7.60% 7.61%
Madison Gas & Elec Co MTN BE 7.12 5574A0AB3 Tranche # Tr 00002 4/1/2032 16 AA- 4.39 4.16 4.09 4.01 3.94 3.71 3.57 3.60 3.87 3.87 4.29 4.28 3.98% 4.15%
Connecticut Lt & Pwr 7.875 207597CZ6 1st & Ref D 10/1/2024 8 A+ 3.78 3.51 3.58 3.65 3.67 3.31 3.37 3.33 3.53 3.53 4.04 4.18 3.62% 3.92%
Connecticut Lt & Pwr 7.88 207597CZ6 1st Mtg Ser 94d 10/1/2024 8 A+ 3.78 3.51 3.58 3.65 3.67 3.31 3.37 3.33 3.53 3.53 4.04 4.18 3.62% 3.92%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Ref '05B 4/1/2035 19 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.65 3.83 3.83 4.29 4.33 4.05% 4.15%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Rfdg Mtg Bd 2005 Ser B 4/1/2035 19 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.65 3.83 3.83 4.29 4.33 4.05% 4.15%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Ref'06A 6/1/2036 20 A+ 4.11 4.11 4.10 4.08 4.05 3.76 3.79 3.64 3.78 3.78 4.24 4.28 3.98% 4.10%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Rfdg Mtg Bd 2006 Ser A 6/1/2036 20 A+ 4.11 4.11 4.10 4.08 4.05 3.76 3.79 3.64 3.78 3.78 4.24 4.28 3.98% 4.10%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Ref'07A 3/1/2017 1 A+ 1.50 1.48 1.32 1.16 1.17 1.00 1.12 1.18 1.22 1.22 1.27 1.45 1.26% 1.31%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Rfdg Mtg Bd 2007 Ser A 3/1/2017 1 A+ 1.50 1.48 1.32 1.16 1.17 1.00 1.12 1.18 1.22 1.22 1.27 1.45 1.26% 1.31%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Ref'07B 3/1/2037 21 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.74 3.88 3.88 4.44 4.48 4.09% 4.27%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Rfdg Mtg Bd 2007 Ser B 3/1/2037 21 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.74 3.88 3.88 4.44 4.48 4.09% 4.27%
AmerenEnergy Generating 5.1 02360FAA4 Sr Sec Nts 10/1/2019 3 A 2.17 2.34 2.22 2.09 2.15 1.62 1.91 1.86 1.65 1.65 2.01 2.16 1.99% 1.94%
AmerenEnergy Generating 5.3 02360FAB2 Sr Sec Nts 8/1/2037 21 A 4.08 3.88 3.98 4.07 4.02 3.58 3.55 3.59 3.78 3.78 4.24 4.03 3.88% 4.02%
AmerenEnergy Generating 7.95 02360XAJ6 Sr Nts 'F' 6/1/2032 16 A 18.92 22.66 21.61 20.56 21.68 22.76 21.70 21.98 21.28 21.28 24.38 23.18 21.83% 22.95%
Carolina Power & Light 8.62 144141BP2 1st Mtg 9/15/2021 5 A 2.60 2.30 2.20 2.10 2.19 1.77 1.82 1.93 2.58 2.58 3.09 3.23 2.37% 2.97%
Carolina Power & Light 5.7 144141CV8 1st Mtg Bd 4/1/2035 19 A 4.27 4.09 4.04 3.99 4.03 3.70 3.71 3.67 3.78 3.78 4.20 4.20 3.96% 4.06%
Carolina Power & Light 6.3 144141CY2 1st Mtg Bd 4/1/2038 22 A 4.21 4.03 3.98 3.93 3.97 3.64 3.65 3.61 3.82 3.82 4.24 4.24 3.93% 4.10%
Detroit Edison Co. 6.35 250847DU1 Sr Nts 10/15/2032 16 A 4.35 4.13 4.02 3.91 3.89 3.55 3.67 3.63 3.83 3.83 4.22 4.29 3.94% 4.11%
Detroit Edison Co 5.45 250847DZ0 Sr(Sec)Nts'BR' 2/15/2035 19 A 4.24 4.18 4.03 3.88 3.86 3.52 3.64 3.58 3.78 3.78 4.13 4.19 3.90% 4.03%
Detroit Edison Co 5.7 250847EA4 Sr(Sec)Nts'E' 10/1/2037 21 A 4.19 3.98 4.02 4.06 4.03 3.69 3.54 3.50 3.73 3.73 4.19 4.03 3.89% 3.98%
Detroit Edison Co 6.62 250847EB2 Sr Nt 2006 Ser A 6/1/2036 20 A 4.19 3.96 3.91 3.86 3.84 3.50 3.62 3.58 3.78 3.78 4.17 4.24 3.87% 4.06%
Duke Energy Carolinas Llc 6.1 26442CAA2 Sr Nt 6/1/2037 21 A 4.55 4.33 4.23 4.13 4.04 3.80 3.77 3.79 4.03 4.03 4.44 4.41 4.13% 4.29%
Duke Energy Carolinas Llc 6 26442CAB0 1st & Rfdg Mtg Bd 1/15/2038 22 A 4.12 4.05 3.93 3.81 3.91 3.63 3.56 3.58 3.85 3.85 4.23 4.30 3.90% 4.13%
Duke Energy Carolinas Llc 5.25 26442CAC8 1st & Rfdg Mtg Bd 1/15/2018 2 A 1.68 1.37 1.35 1.33 1.40 0.98 1.37 1.34 1.24 1.24 1.44 1.61 1.36% 1.43%
Duke Energy Carolinas Llc 5.1 26442CAD6 1st & Rfdg Mtg Bd Ser B 4/15/2018 2 A 1.67 1.60 1.44 1.27 1.41 1.15 1.10 1.15 1.18 1.18 1.66 1.59 1.37% 1.48%
Duke Energy Carolinas Llc 6.05 26442CAE4 1st & Rfdg Mtg Ser B 4/15/2038 22 A 4.15 4.09 3.95 3.80 3.81 3.60 3.51 3.59 3.79 3.79 4.27 4.21 3.88% 4.09%
Florida Power & Light 5.85 341081EP8 1st 2/1/2033 17 A 4.07 3.86 3.87 3.88 3.78 3.56 3.55 3.49 3.72 3.72 4.12 4.10 3.81% 3.98%
Florida Power & Light 5.62 341081EQ6 First Mtg Bds 4/1/2034 18 A 4.08 3.87 3.82 3.77 3.67 3.37 3.34 3.30 3.58 3.58 3.99 3.95 3.69% 3.84%
Florida Power & Light 5.625 341081EQ6 1st 4/1/2034 18 A 4.08 3.87 3.82 3.77 3.67 3.37 3.34 3.30 3.58 3.58 3.99 3.95 3.69% 3.84%
Florida Power & Light 5.95 341081ER4 1st 10/1/2033 17 A 3.87 3.66 3.67 3.68 3.68 3.46 3.45 3.39 3.52 3.52 3.97 3.95 3.65% 3.81%
Florida Power & Light 4.95 341081ET0 1st 6/1/2035 19 A 3.98 3.85 3.79 3.73 3.66 3.37 3.25 3.28 3.63 3.63 4.03 3.86 3.67% 3.84%
Florida Power & Light 5.4 341081EU7 1st Mtg Bd 9/1/2035 19 A 4.01 3.80 3.89 3.98 3.78 3.48 3.40 3.42 3.61 3.61 4.03 4.08 3.76% 3.91%
Florida Power & Light 5.65 341081EV5 1st 2/1/2037 21 A 3.99 3.79 3.77 3.74 3.74 3.50 3.41 3.42 3.66 3.66 4.08 4.12 3.74% 3.95%
Florida Power & Light 6.2 341081EX1 1st 6/1/2036 20 A 4.15 3.94 3.98 4.02 3.83 3.55 3.46 3.52 3.74 3.74 4.16 4.20 3.86% 4.03%
Florida Power & Light 5.85 341081EY9 1st 5/1/2037 21 A 4.05 3.85 4.02 4.19 3.92 3.53 3.54 3.44 3.73 3.73 4.08 4.07 3.85% 3.96%
Florida Power Corp. 5.9 341099CB3 1st 3/1/2033 17 A 4.41 4.21 4.34 4.46 4.15 3.79 3.80 3.83 4.13 4.13 4.48 4.55 4.19% 4.39%
Florida Power Corp. 5.8 341099CG2 1st Mtg Bd 9/15/2017 1 A 1.70 1.35 1.31 1.27 1.36 0.99 1.12 1.20 1.33 1.33 1.32 1.33 1.30% 1.33%
Florida Power Corp. 6.35 341099CH0 1st 9/15/2037 21 A 4.15 4.13 4.02 3.91 3.82 3.54 3.53 3.56 3.83 3.83 4.21 4.27 3.90% 4.10%
Georgia Power Co. 5.75 373334FS5 Sr Nts 'N' 4/15/2023 7 A 3.27 3.00 3.06 3.12 3.15 2.78 2.90 2.83 2.93 2.93 3.46 3.55 3.08% 3.31%
Georgia Power Co. 5.8 373334FZ9 Sr Nts'Y' 4/15/2035 19 A 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79% 5.79%
Georgia Power Co. 5.65 373334GC9 Sr Nt Ser 2007a 3/1/2037 21 A 4.72 4.48 4.43 4.38 4.20 3.91 3.88 3.78 4.01 4.01 4.45 4.50 4.23% 4.32%
Georgia Power Co. 5.65 373334GC9 Sr Nts'07A 3/1/2037 21 A 4.72 4.48 4.43 4.38 4.20 3.91 3.88 3.78 4.01 4.01 4.45 4.50 4.23% 4.32%
Georgia Power Co. 5.7 373334GE5 Sr Nts'07B 6/1/2017 1 A 1.24 1.74 1.55 1.35 1.30 1.38 1.08 1.03 1.11 1.11 1.22 1.27 1.28% 1.20%
Gulf Power Co. 5.65 402479BW8 Sr Nts'L' 9/1/2035 19 A 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64% 5.64%
Gulf Power Co. 5.3 402479BX6 Sr Nts'M' 12/1/2016 0 A 1.08 1.09 1.16 1.23 1.28 1.13 1.27 1.31 1.19%
MidAmerican Energy Co. 5.95 595620AG0 Sr Nts 7/15/2017 1 A 1.68 1.41 1.42 1.42 1.53 1.21 0.94 1.03 1.05 1.05 1.07 1.23 1.25% 1.12%
MidAmerican Energy Co 5.8 59562EAH8 MTN-tranche # Tr 00008 10/15/2036 20 A 4.19 3.99 3.94 3.89 3.85 3.61 3.57 3.49 3.83 3.83 4.24 4.25 3.89% 4.11%
Mississippi Power Co. 5.4 605417BT0 Sr Nts'G' 7/1/2035 19 A 6.28 6.03 5.78 5.52 5.43 5.16 4.93 4.94 5.14 5.14 5.54 5.55 5.45% 5.41%
Nevada Power 6.75 641423BU1Gen & Refunding Mtg Nt Ser R M7/1/2037 21 A 4.52 4.34 4.26 4.18 4.16 4.01 3.86 3.92 3.98 3.98 4.44 4.44 4.17% 4.29%
Northern Sts Pwr (Minn) 7.125 665772BN8 1st Mtg Bd 7/1/2025 9 A 3.11 2.84 2.92 2.99 2.82 2.45 2.56 2.48 2.63 2.63 3.16 3.29 2.82% 3.03%
Northern Sts Pwr (Minn) 6.5 665772BQ1 1st Mtg Bd 3/1/2028 12 A 4.05 3.79 3.86 3.93 3.57 3.20 3.31 3.23 3.38 3.38 3.91 4.03 3.64% 3.77%
Northern Sts Pwr (Minn) 5.25 665772CA5 1st Mtg Bd 7/15/2035 19 A 3.96 3.84 3.85 3.86 3.64 3.44 3.39 3.36 3.57 3.57 4.03 4.05 3.71% 3.88%
Northern Sts Pwr (Minn) 6.2 665772CC1 1st Mtg 7/1/2037 21 A 4.07 3.99 3.87 3.74 3.84 3.62 3.37 3.48 3.61 3.61 4.02 4.07 3.77% 3.90%
Oncor Electric Delivery 7.25 68233DAP2 Sr Sec Nts 1/15/2033 17 A 4.79 4.59 4.44 4.28 4.03 3.76 3.65 3.64 3.84 3.84 4.22 4.08 4.10% 4.05%
Oncor Electric Delivery 7 68233DAR8 Deb 9/1/2022 6 A 3.42 3.24 2.97 2.69 2.69 2.22 2.32 2.23 2.22 2.22 2.76 2.90 2.66% 2.63%
Oncor Electric Delivery 7 68233DAT4 Sr Sec Nts 5/1/2032 16 A 4.68 4.58 4.46 4.33 4.10 3.71 3.62 3.58 3.77 3.77 4.19 3.93 4.06% 3.96%
PacifiCorp 7.7 695114BT4 1st 11/15/2031 15 A 4.16 3.88 3.67 3.46 3.53 3.12 3.23 3.22 3.38 3.38 3.88 3.80 3.56% 3.69%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
EU-15
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
PacifiCorp 5.9 695114BX5 1st 8/15/2034 18 A 4.45 4.32 4.31 4.30 4.27 4.08 3.82 3.80 4.00 4.00 4.34 4.32 4.17% 4.22%
PacifiCorp 5.25 695114BZ0 1st 6/15/2035 19 A 4.10 3.97 3.99 4.00 3.97 3.68 3.57 3.55 3.80 3.80 4.14 4.12 3.89% 4.02%
PacifiCorp 6.1 695114CB2 1st 8/1/2036 20 A 4.27 4.10 4.07 4.04 3.95 3.64 3.64 3.66 3.83 3.83 4.25 4.19 3.96% 4.09%
PacifiCorp 5.75 695114CD8 1st 4/1/2037 21 A 4.33 4.17 4.05 3.92 3.90 3.63 3.58 3.56 3.78 3.78 4.22 4.13 3.92% 4.04%
Potomac Electric Power 5.75 737679CY4 Sr Nts 4/15/2034 18 A 4.84 4.67 2.34 3.95%
Potomac Electric Power 5.4 737679CZ1 Sr Nts 6/1/2035 19 A 4.84 4.67 4.46 4.25 4.21 4.02 3.87 3.91 4.01 4.01 4.39 4.52 4.26% 4.31%
Sierra Pacific Power 6.75 826418BE4 Gen & Refunding Mtg Nt Ser P 7/1/2037 21 A 4.69 4.33 4.35 4.37 4.08 3.74 3.75 3.76 3.96 3.96 4.42 4.36 4.15% 4.25%
South Carolina Electric & Gas Co. 6.62 837004BV1 1st 2/1/2032 16 A 4.50 4.30 4.17 4.03 4.01 3.93 3.75 3.68 3.93 3.93 4.38 4.07 4.06% 4.13%
South Carolina Electric & Gas Co. 5.8 837004BW9 1st 1/15/2033 17 A 4.42 4.22 4.21 4.20 4.18 3.84 3.83 3.75 4.05 4.05 4.50 4.22 4.12% 4.26%
South Carolina Electric & Gas Co. 5.3 837004BX7 1st 5/15/2033 17 A 4.32 4.12 4.11 4.10 4.08 3.74 3.75 3.68 3.98 3.98 4.43 4.14 4.04% 4.18%
South Carolina Electric & Gas Co. 5.25 837004BY5 1st 11/1/2018 2 A 1.93 1.85 1.73 1.60 1.67 1.36 1.48 1.53 1.57 1.57 1.67 1.78 1.64% 1.67%
South Carolina Electric & Gas Co. 5.25 837004BZ2 1st 3/1/2035 19 A 4.62 4.42 4.34 4.26 4.24 4.10 4.06 3.88 4.16 4.16 4.47 4.44 4.26% 4.36%
South Carolina El & Gas 6.25 837004CA6 1st Mtg Bd 7/1/2036 20 A 4.77 4.56 4.49 4.41 4.39 4.25 4.20 4.03 4.32 4.32 4.62 4.59 4.41% 4.51%
Southern California Edison Co. 6 842400ES8 1st & Ref '04B 1/15/2034 18 A 4.06 3.97 3.84 3.70 3.74 3.52 3.47 3.44 3.63 3.63 4.06 4.09 3.76% 3.93%
Southern California Edison Co. 5.55 842400EZ2 1st & Ref'05B 1/15/2036 20 A 4.11 4.06 3.95 3.83 3.72 3.71 3.54 3.53 3.62 3.62 4.13 4.01 3.82% 3.92%
Southern California Edison Co. 5.35 842400FA6 1st & Ref'05E 7/15/2035 19 A 4.15 4.01 4.04 4.06 3.82 3.53 3.54 3.54 3.63 3.63 4.09 4.05 3.84% 3.92%
Southern California Edison Co. 5.62 842400FC2 1st & Ref'06A 2/1/2036 20 A 4.14 3.98 3.95 3.91 3.72 3.57 3.54 3.53 3.70 3.70 4.15 4.13 3.83% 3.99%
Southern California Edison Co. 5.55 842400FF5 1st & Ref'06E 1/15/2037 21 A 4.14 4.07 3.95 3.83 3.87 3.66 3.49 3.48 3.70 3.70 4.12 4.14 3.85% 3.99%
Wisconsin Power & Light Co. 6.25 976826BD8 Deb 7/31/2034 18 A 4.20 3.99 4.04 4.09 4.03 3.74 3.75 3.59 3.73 3.73 4.25 4.22 3.95% 4.07%
Wisconsin Public Service 7.125 976843AX0 1st 7/1/2023 7 A 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12% 7.12%
Wisconsin Public Service 5.55 976843BE1 Sr(Sec)Nts 12/1/2036 20 A 4.32 4.12 4.11 4.09 4.12 3.84 3.74 3.61 3.77 3.77 4.10 4.14 3.98% 4.00%
Alabama Power Co. 5.5 010392DZ8 Sr Nts 'Q' 10/15/2017 1 A- 1.91 2.02 1.83 1.64 1.59 1.38 1.59 1.69 1.17 1.17 1.36 1.22 1.55% 1.25%
Alabama Power Co. 5.88 010392EB0 Sr Nts 'S' 12/1/2022 6 A- 3.14 2.89 2.81 2.73 2.81 2.36 2.38 2.39 2.40 2.40 3.00 3.14 2.70% 2.85%
Alabama Power Co. 5.7 010392EC8 Sr Nts 'T' 2/15/2033 17 A- 4.25 4.05 3.99 3.93 3.96 3.79 3.74 3.64 3.90 3.90 4.40 4.15 3.98% 4.15%
Alabama Power Co. 5.6 010392EE4 Sr Nts'V' 3/15/2033 17 A- 4.63 4.70 4.39 4.07 4.07 3.78 3.73 3.69 3.90 3.90 4.40 4.30 4.13% 4.20%
Alabama Power Co. 5.12 010392EK0 Sr Nts 'Z' 2/15/2019 3 A- 2.37 2.26 2.28 2.29 2.35 1.99 2.18 2.22 1.71 1.71 2.11 2.24 2.14% 2.02%
Alabama Power Co. 5.55 010392EW4 Sr Nts'07A 2/1/2017 1 A- 1.58 1.59 1.54 1.49 1.56 1.59 1.72 1.44 1.56 1.56 1.16 1.59 1.53% 1.44%
Alabama Power Co. 6.12 010392EZ7 Sr Nts'08A 5/15/2038 22 A- 4.49 4.33 4.31 4.28 4.17 3.98 3.85 3.78 4.03 4.03 4.40 4.35 4.17% 4.26%
Arizona Public Service 5.625 040555CF9 Nts 5/15/2033 17 A- 4.39 4.20 4.22 4.23 4.10 3.81 3.68 3.59 3.81 3.81 4.28 4.27 4.03% 4.12%
Arizona Public Service 5.5 040555CH5 Nts 9/1/2035 19 A- 4.19 4.00 4.02 4.03 4.00 3.71 3.58 3.54 3.73 3.73 4.19 4.18 3.91% 4.03%
Arizona Public Service 6.25 040555CJ1 Nt 8/1/2016 0 A- 1.54 1.55 1.29 1.02 1.13 0.95 1.25%
Arizona Public Service 6.88 040555CK8 Nts 8/1/2036 20 A- 4.49 4.33 4.35 4.36 4.25 3.96 3.76 3.70 4.00 4.00 4.39 4.38 4.16% 4.26%
Avista Corp. 5.45 05379BAH0 1st 12/1/2019 3 A- 3.36 3.28 3.36 3.43 3.14 2.82 2.99 3.01 2.58 2.58 3.04 3.10 3.06% 2.91%
Avista Corp. 5.45 05379BAH0 1st Mtg Bd 12/1/2019 3 A- 3.36 3.28 3.36 3.43 3.14 2.82 2.99 3.01 2.58 2.58 3.04 3.10 3.06% 2.91%
Avista Corp. 6.25 05379BAK3 1st Mtg Bd 12/1/2035 19 A- 4.22 4.09 4.29 4.49 4.37 4.18 4.19 4.16 4.24 4.24 4.66 4.65 4.32% 4.52%
Avista Corp. 5.7 05379BAM9 1st Mtg Bd 7/1/2037 21 A- 4.32 4.19 4.34 4.49 4.37 4.13 4.19 4.16 4.29 4.29 4.74 4.67 4.35% 4.57%
CenterPoint Energy Houston 6.95 15189XAD0 Gen Mtge'K2' 3/15/2033 17 A- 4.10 4.05 4.01 3.96 3.86 3.55 3.54 3.46 3.80 3.80 4.24 4.15 3.88% 4.06%
CenterPoint Energy Houston 5.6 15189XAH1 Gen Mtge'L2' 7/1/2023 7 A- 2.96 3.34 3.35 3.36 3.17 2.86 2.98 2.93 2.78 2.78 3.33 3.50 3.11% 3.20%
CenterPoint Energy Res 6.25 15189YAD8 Sr Nts 2/1/2037 21 A- 5.48 5.31 5.20 5.08 4.91 4.83 4.73 4.77 4.83 4.83 5.04 5.18 5.02% 5.02%
Commonwealth Edison 5.875 202795HG8 1st Ser 100 2/1/2033 17 A- 4.23 4.02 3.96 3.89 3.82 3.48 3.49 3.49 3.79 3.79 4.11 4.17 3.85% 4.02%
Commonwealth Edison 5.9 202795HK9 1st Ser 103 3/15/2036 20 A- 4.27 4.06 4.02 3.97 3.85 3.57 3.52 3.58 3.73 3.73 4.19 4.19 3.89% 4.04%
Commonwealth Edison 5.95 202795HN3 1st Ser 104 8/15/2016 0 A- 0.98 1.29 1.11 0.92 0.98 0.82 1.02%
Consolidated Edison, Inc. 5.88 209111EB5 Deb '03A 4/1/2033 17 A- 4.34 4.24 4.19 4.14 4.06 3.84 3.74 3.68 3.91 3.91 4.33 4.33 4.06% 4.19%
Consolidated Edison, Inc. 5.7 209111EF6 Deb'04B 2/1/2034 18 A- 4.49 4.28 4.27 4.25 4.26 4.02 4.00 3.87 4.08 4.08 4.36 4.38 4.19% 4.27%
Consolidated Edison, Inc. 5.3 209111EH2 Deb '05A 3/1/2035 19 A- 4.18 4.09 4.04 3.98 3.94 3.65 3.69 3.68 3.87 3.87 4.24 4.16 3.95% 4.09%
Consolidated Edison, Inc. 5.25 209111EJ8 Deb '05B 7/1/2035 19 A- 4.55 4.57 4.50 4.43 4.42 3.99 3.88 3.74 3.86 3.86 4.29 4.27 4.20% 4.14%
Consolidated Edison, Inc. 5.85 209111EL3 Deb'06A 3/15/2036 20 A- 4.21 4.23 4.16 4.08 4.08 3.74 3.63 3.69 3.88 3.88 4.31 4.29 4.01% 4.16%
Consolidated Edison, Inc. 6.2 209111EM1 Deb'06B 6/15/2036 20 A- 4.37 4.33 4.31 4.28 4.24 3.94 3.74 3.74 3.98 3.98 4.21 4.28 4.12% 4.16%
Consolidated Edison, Inc. 5.5 209111EN9 Deb'06C 9/15/2016 0 A- 0.97 1.10 1.05 0.99 1.08 1.05 1.25 1.07%
Consolidated Edison, Inc. 5.3 209111EP4 Deb'06D 12/1/2016 0 A- 1.13 1.88 1.55 1.21 0.89 1.03 0.80 0.89 1.17%
Consolidated Edison, Inc. 5.7 209111EQ2 Deb'06E 12/1/2036 20 A- 4.34 4.14 4.12 4.10 4.11 3.81 3.79 3.69 3.95 3.95 4.28 4.28 4.05% 4.17%
Consolidated Edison, Inc. 6.3 209111ES8 Deb'07A 8/15/2037 21 A- 4.39 4.38 4.38 4.38 4.25 3.95 3.71 3.75 3.93 3.93 4.30 4.22 4.13% 4.15%
Consumers Energy Co. 5.5 210518CE4 1st 'P' 8/15/2016 0 A- 1.34 1.21 0.99 0.77 0.97 1.09 1.06%
Consumers Energy Co. 5.65 210518CL8 1st 4/15/2020 4 A- 2.14 1.93 2.03 2.13 2.00 1.61 1.54 1.80 1.82 1.82 2.39 2.46 1.97% 2.22%
Entergy Arkansas 6.38 29364DAK6 1st 11/1/2034 18 A- 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Entergy Arkansas 5.66 29364DAL4 1st 2/1/2025 9 A- 5.68 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65% 5.65%
Entergy Gulf States 6.18 29364LAT9 1st 3/1/2035 19 A- 6.16 6.25 6.23 6.20 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.18% 6.17%
Entergy Mississippi 6.25 29364NAL2 1st 4/1/2034 18 A- 6.02 6.02 6.03 6.03 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.02% 6.02%
Entergy New Orleans 5.65 29364PAJ2 1st 9/10/2029 13 A- 5.61 5.70 5.74 5.77 5.85 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.68% 5.64%
Entergy New Orleans 5.6 29364PAK9 1st 9/1/2024 8 A- 5.57 5.67 5.68 5.69 5.75 5.59 5.59 5.60 5.59 5.59 5.59 5.59 5.63% 5.59%
Idaho Pwr 6 45138LAL7 Sec M-T Nts'D' 11/15/2032 16 A- 4.55 4.35 4.27 4.18 4.11 3.92 3.88 3.74 3.98 3.98 4.48 4.21 4.14% 4.22%
Idaho Pwr 5.5 45138LAN3 Sec M-T Nts 'E' 4/1/2033 17 A- 4.55 4.39 4.44 4.48 4.22 4.05 4.06 4.07 4.13 4.13 4.54 4.35 4.28% 4.34%
EU-16
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Idaho Pwr 5.5 45138LAP8 Sec M-T Nts'E' 3/15/2034 18 A- 4.60 4.44 4.51 4.58 4.27 3.90 3.91 3.72 3.93 3.93 4.34 4.35 4.21% 4.21%
Idaho Pwr 5.875 45138LAQ6 Sec M-T Nts'E' 8/15/2034 18 A- 4.55 4.45 4.39 4.33 4.22 4.25 4.39 3.77 4.03 4.03 4.98 4.48 4.32% 4.50%
Idaho Pwr 5.3 45138LAR4 Sec M-T Nts'F' 1/4/1900 -116 A- 4.43 4.22 4.29 4.36 4.33 3.88 3.88 3.78 4.08 4.08 4.48 4.43 4.19% 4.33%
Idaho Pwr Co 1st Mtg Secd MTN 6.3 45138LAS2 Secd MTN Ser F 6/15/2037 21 A- 4.49 4.28 4.18 4.08 3.97 3.68 3.68 3.67 3.98 3.98 4.38 4.43 4.07% 4.26%
Interstate Pwr & Lt 6.45 461070AC8 Sr Deb 10/15/2033 17 A- 4.00 3.79 3.84 3.89 3.87 3.58 3.59 3.61 3.80 3.80 4.26 4.26 3.86% 4.11%
Interstate Pwr & Lt 6.3 461070AD6 Sr Deb 5/1/2034 18 A- 4.00 3.79 3.84 3.89 3.87 3.58 3.59 3.61 3.78 3.78 4.25 4.27 3.85% 4.10%
Interstate Pwr & Lt 5.5 461070AE4 Sr Deb 7/15/2025 9 A- 3.18 3.09 2.98 2.86 2.86 2.44 2.57 2.64 2.76 2.76 3.35 3.44 2.91% 3.18%
KeySpan Corp. 8 49337WAC4 Nts 11/15/2030 14 A- 4.93 4.69 4.60 4.51 4.51 4.11 4.22 4.19 4.32 4.32 4.76 4.74 4.49% 4.61%
KeySpan Corp. 5.88 49337WAH3 Nts 4/1/2033 17 A- 4.93 4.74 4.64 4.54 4.52 4.53 4.54 4.45 4.70 4.70 5.06 4.88 4.69% 4.88%
KeySpan Corp 5.8 49337WAJ9 Nt 4/1/2035 19 A- 4.92 4.73 4.63 4.53 4.51 4.13 4.14 4.05 4.30 4.30 4.66 4.73 4.47% 4.56%
Oklahoma Gas & Elec Co 6.65 678858AZ4 Sr Nts 7/15/2027 11 A- 4.04 3.78 3.84 3.90 3.92 3.56 3.67 3.75 3.85 3.85 4.37 4.51 3.92% 4.24%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 4.06 3.80 4.07 4.34 4.37 4.01 4.12 4.19 4.29 4.29 4.82 4.50 4.24% 4.54%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 4.06 3.80 4.07 4.34 4.37 4.01 4.12 4.19 4.29 4.29 4.82 4.50 4.24% 4.54%
Oklahoma Gas & Elec Co 5.75 678858BF7 Sr Nts 1/15/2036 20 A- 4.53 4.32 4.35 4.37 4.26 3.92 4.19 3.99 4.18 4.18 4.64 4.61 4.29% 4.48%
Exelon Corp. 5.9 693304AG2 1st Ref Mtg 5/1/2034 18 A- 4.32 4.24 4.19 4.13 4.21 3.90 3.91 3.92 4.21 4.21 4.61 4.53 4.20% 4.45%
Exelon Corp. 5.95 693304AH0 1st Ref Mtg 10/1/2036 20 A- 4.15 3.99 3.94 3.88 3.96 3.62 3.63 3.64 3.93 3.93 4.33 4.25 3.94% 4.17%
Exelon Corp. 5.7 693304AJ6 1st Ref Mtg 3/15/2037 21 A- 4.40 4.24 4.19 4.13 4.21 3.92 3.93 3.94 4.23 4.23 4.63 4.55 4.22% 4.47%
Portland Gen Elec Co MTN-book 9.31 73651HAV3 1st Mortgage MTN 8/11/2021 5 A- 2.96 2.75 2.81 2.86 2.94 2.48 2.59 2.70 2.78 2.78 3.34 3.48 2.87% 3.20%
Public Svc Co New Hampshire Fo 5.6 744538AA7 1st Mtg Bd 10/5/2035 19 A- 4.28 4.06 4.15 4.23 4.29 3.71 3.84 3.78 3.97 3.97 4.43 4.57 4.11% 4.32%
Public Service Electric and Gas Co. 8 744567BA5 1st & Ref 6/1/2037 21 A- 4.83 4.71 4.76 4.81 4.79 4.30 4.23 4.28 4.44 4.44 4.90 4.85 4.61% 4.73%
Public Serv Elec & Gas 5 744567BB3 1st & Ref Mtg 7/1/2037 21 A- 4.73 4.61 4.66 4.71 4.69 4.20 4.13 4.18 4.44 4.44 4.90 4.84 4.54% 4.73%
Public Service Electric and Gas Co. 5 744567BB3 1st & Ref 7/1/2037 21 A- 4.73 4.61 4.66 4.71 4.69 4.20 4.13 4.18 4.44 4.44 4.90 4.84 4.54% 4.73%
Public Service Electric and Gas Co.9.25 744567CN6 1st & Ref CC 6/1/2021 5 A- 3.13 2.92 2.96 2.99 3.07 2.59 2.79 2.08 1.96 1.96 2.52 2.66 2.64% 2.38%
Public Svc Elec Gas Co Secd MT 7.04 74456QAG1 MTN Tranche # Tr 00007 11/6/2020 4 A- 3.51 3.31 3.38 3.44 3.51 3.10 3.29 3.41 3.48 3.48 4.04 4.19 3.51% 3.90%
Public Svc Elec Gas Co Secd MT 5.25 74456QAP1 Med Term Notes 7/1/2035 19 A- 3.95 3.75 3.80 3.85 3.83 3.49 3.49 3.50 3.49 3.49 3.94 4.05 3.72% 3.83%
Public Svc Elec Gas Co Secd MT 5.7 74456QAQ9 Secd Mtns, Ser D 12/1/2036 20 A- 4.02 3.82 3.83 3.83 3.81 3.51 3.42 3.42 3.66 3.66 4.12 4.03 3.76% 3.94%
Public Svc Elec Gas Co Secd MT 5.8 74456QAR7 Secured Mtn Series E Notes 5/1/2037 21 A- 4.08 3.95 4.00 4.05 4.03 3.54 3.47 3.52 3.68 3.68 4.14 4.09 3.85% 3.97%
Puget Sound Pwr & Lt 7.02 74531EAA0 Sr M-T Nts'A' 12/1/2027 11 A- 3.81 3.53 3.52 3.51 3.57 3.23 2.99 3.04 3.21 3.21 3.69 3.80 3.43% 3.57%
Puget Sound Energy 6.74 74531EAB8 Sr M-T Nts 'A' 6/15/2018 2 A- 1.99 1.91 1.95 1.99 2.06 1.68 1.73 1.84 1.86 1.86 2.15 2.07 1.92% 2.03%
Puget Sound Energy 7 74531EAC6 Sr M-T Nts 'B' 3/9/2029 13 A- 4.11 3.83 3.82 3.81 3.77 3.43 3.24 3.39 3.66 3.66 4.13 4.25 3.76% 4.01%
Puget Sound Energy 5.48 745332BU9 Sr Nts 6/1/2035 19 A- 4.19 4.01 4.07 4.13 3.98 3.62 3.59 3.57 3.75 3.75 4.22 4.27 3.93% 4.08%
Puget Sound Energy 6.72 745332BW5 Sr Nts 6/15/2036 20 A- 4.19 4.01 4.10 4.18 4.13 3.74 3.72 3.68 3.87 3.87 4.34 4.39 4.02% 4.20%
Puget Sound Energy 6.27 745332BX3 Sr(Sec)Nts 3/15/2037 21 A- 4.24 4.04 4.02 4.00 4.00 3.72 3.65 3.67 3.91 3.91 4.36 4.40 3.99% 4.22%
Southwestern Public Serv 5.6 845743BK8 Sr Nts'E' 10/1/2016 0 A- 1.22 1.35 1.36 1.36 1.80 1.42 1.35 1.46 1.41%
Southwestern Public Serv 6 845743BL6 Sr Nts'F' 10/1/2036 20 A- 4.52 4.32 4.40 4.48 4.26 3.94 3.97 3.98 4.22 4.22 4.64 4.50 4.29% 4.45%
Virginia Electric & Power Co. 6 927804FA7 Sr Nts'B' 1/15/2036 20 A- 4.05 4.13 4.06 3.99 4.02 3.68 3.62 3.61 3.90 3.90 4.28 4.24 3.96% 4.14%
Virginia Electric & Power Co. 6 927804FB5 Sr Nt 2007 Ser A 5/15/2037 21 A- 4.21 4.16 4.10 4.03 4.04 3.63 3.64 3.64 3.80 3.80 4.23 4.27 3.96% 4.10%
Virginia Electric & Power Co. 5.95 927804FC3 Sr Nt 2007 Ser B 9/15/2017 1 A- 1.37 1.42 1.35 1.28 1.27 1.11 1.18 1.15 1.38 1.38 1.49 1.60 1.33% 1.49%
Virginia Electric & Power Co. 6.35 927804FE9 Sr Nt 2007 Ser D 11/30/2037 21 A- 4.14 4.08 4.07 4.06 4.04 3.69 3.74 3.69 3.93 3.93 4.30 4.28 4.00% 4.17%
Virginia Electric & Power Co. 5.4 927804FF6 Sr Nt 2008 Ser A 4/30/2018 2 A- 1.99 1.72 1.61 1.49 1.51 1.31 1.28 1.38 1.31 1.31 1.64 1.72 1.52% 1.56%
Washington Water Power 7.53 94068VAA1 Secd MTN 5/5/2023 7 A- 3.76 3.64 3.78 3.91 3.98 3.68 3.80 4.00 3.63 3.63 4.22 4.30 3.86% 4.05%
Washington Water Power 7.39 94068VAF0 Secd Med-term Nt 5/11/2018 2 A- 3.04 2.96 2.99 3.02 3.10 2.62 2.78 2.66 2.55 2.55 2.83 2.74 2.82% 2.71%
Westar Energy, Inc. 5.15 95709TAB6 1st Mtg Bd 1/1/2017 1 A- 1.77 1.77 1.73 1.69 1.75 1.52 1.65 1.17 1.28 1.28 1.45 1.55% 1.37%
Westar Energy, Inc. 5.95 95709TAC4 1st Mtg Bd 1/1/2035 19 A- 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94% 5.94%
Westar Energy, Inc. 5.1 95709TAD2 Fixed Rt 1st Mtg Bd 7/15/2020 4 A- 2.35 2.14 2.17 2.19 2.20 1.72 1.96 2.10 1.92 1.92 2.53 2.58 2.15% 2.34%
Westar Energy, Inc. 5.88 95709TAE0 1st Mtg Bd 7/15/2036 20 A- 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87% 5.87%
Wisconsin Electric Power Company6.875 976656BL1 Deb 12/1/2095 79 A- 5.48 5.37 5.37 5.37 5.32 4.69 4.54 4.55 4.86 4.86 5.23 5.20 5.07% 5.10%
Wisconsin Electric Power 6.5 976656BP2 Deb 6/1/2028 12 A- 4.02 3.80 3.48 3.16 3.43 2.90 3.01 3.06 3.34 3.34 3.87 4.01 3.45% 3.74%
Wisconsin Electric Power 5.7 976656BZ0 Deb 12/1/2036 20 A- 4.10 3.88 3.87 3.86 3.83 3.56 3.57 3.51 3.84 3.84 4.17 4.11 3.85% 4.04%
Progress Energy, Inc. 8.62 144141BP2 1st 9/15/2021 5 BBB+ 2.60 2.30 2.20 2.10 2.19 1.77 1.82 1.93 2.58 2.58 3.09 3.23 2.37% 2.97%
Progress Energy, Inc. 5.7 144141CV8 1st 4/1/2035 19 BBB+ 4.27 4.09 4.04 3.99 4.03 3.70 3.71 3.67 3.78 3.78 4.20 4.20 3.96% 4.06%
Progress Energy, Inc. 6.3 144141CY2 1st 4/1/2038 22 BBB+ 4.21 4.03 3.98 3.93 3.97 3.64 3.65 3.61 3.82 3.82 4.24 4.24 3.93% 4.10%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nt 2/1/2017 1 BBB+ 1.84 2.02 1.99 1.96 1.90 1.64 1.73 1.92 1.64 1.64 1.50 1.66 1.79% 1.60%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nts 2/1/2017 1 BBB+ 1.84 2.02 1.99 1.96 1.90 1.64 1.73 1.92 1.64 1.64 1.50 1.66 1.79% 1.60%
Central Illinois Light 6.7 153645BA3 Sr Secd Nt 144a 6/15/2036 20 BBB+ 6.03 6.03 6.03 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.01 6.01 6.02% 6.01%
Cincinnati Gas & Electric Co. 6.9 172070BT0 Deb 6/1/2025 9 BBB+ 4.06 3.83 3.58 3.33 3.41 3.11 2.98 3.03 3.30 3.30 3.81 3.83 3.46% 3.65%
Cleco Power LLC 6.5 185508AE8 Nts 12/1/2035 19 BBB+ 4.59 4.54 4.89 5.23 5.02 4.58 4.39 4.17 4.26 4.26 4.69 4.70 4.61% 4.55%
Consumers Energy Co. 6.875 210518AT3 Sr Nts 'B' 3/1/2018 2 BBB+ 1.76 1.67 1.82 1.97 2.04 1.57 1.68 1.45 1.44 1.44 1.71 1.79 1.70% 1.65%
Consumers Energy Co. 5.15 210518CG9 1st 2/15/2017 1 BBB+ 1.30 1.38 1.27 1.15 0.89 0.98 1.05 0.96 1.05 1.05 0.60 1.45 1.09% 1.03%
Consumers Energy Co. 5.8 210518CP9 1st 9/15/2035 19 BBB+ 3.97 3.91 3.93 3.95 3.88 3.59 3.49 3.48 3.89 3.89 4.29 4.36 3.89% 4.18%
Consumers Energy Co. 5.65 210518CQ7 1st 9/15/2018 2 BBB+ 1.96 1.88 1.77 1.65 1.64 1.32 1.44 1.56 1.42 1.42 1.74 1.78 1.63% 1.65%
Consumers Energy Co. 6.12 210518CR5 1st 3/15/2019 3 BBB+ 2.00 1.83 1.76 1.69 1.47 1.07 1.31 1.40 1.49 1.49 1.87 1.97 1.61% 1.78%
Dominion Resources 6.75 257469AG1 Sr Nts 'E' 12/15/2032 16 BBB+ 5.25 5.05 5.03 5.00 5.08%
EU-17
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Dominion Resources, Inc. (Va.) 5.95 25746UAV1 Fixed Rt Sr Nt 2005 Ser B 6/15/2035 19 BBB+ 5.00 4.88 4.79 4.70 4.66 4.19 4.20 4.17 4.35 4.35 4.65 4.71 4.55% 4.57%
Duke Energy Corp. 6 264399DK9 Sr Nts 'A' 12/1/2028 12 BBB+ 3.86 3.69 3.47 3.24 3.41 3.06 3.02 2.99 3.16 3.16 3.67 3.59 3.36% 3.47%
Duke Energy Corp. 6.45 264399ED4 Sr Nts 10/15/2032 16 BBB+ 4.29 4.06 3.99 3.91 3.84 3.61 3.47 3.50 3.77 3.77 4.19 4.18 3.88% 4.05%
Empire District Electric Co. (The) 7.2 291641AS7 1st 12/1/2016 0 BBB+ 1.63 1.65 1.68 1.71 1.80 1.60 1.76 1.92 1.72%
Enersis S.A. 7.4 29274FAB0 Nt 12/1/2016 0 BBB+ 1.60 1.99 2.01 2.03 2.28 1.95 2.23 2.91 3.10 3.10 2.32% 3.10%
Exelon Corp. 5.62 30161NAC5 Fixed Rt Sr Nt 6/15/2035 19 BBB+ 5.05 4.88 4.63 4.38 4.29 4.18 4.06 4.04 4.27 4.27 4.76 4.78 4.47% 4.60%
Florida Pwr 6.75 34110QAL2 Nts 2/1/2028 12 BBB+ 4.42 4.15 4.16 4.17 4.19 3.83 3.95 4.02 4.22 4.22 4.75 4.89 4.25% 4.62%
MidAmerican Funding 6.93 59562HAJ7 Sr Sec Bonds 3/1/2029 13 BBB+ 4.25 4.02 3.84 3.65 3.65 3.04 3.01 3.02 3.06 3.06 3.60 3.66 3.49% 3.44%
MidAmerican Energy Hldg 6.12 59562VAM9 SrBonds 4/1/2036 20 BBB+ 4.77 4.64 4.34 4.03 4.07 3.83 3.65 3.72 3.85 3.85 4.29 4.25 4.11% 4.13%
PSI Energy, Inc. 6.12 693627AY7 Deb 10/15/2035 19 BBB+ 4.36 4.40 4.27 4.14 4.03 3.69 3.70 3.71 4.00 4.00 4.46 4.52 4.11% 4.33%
PSI Energy 6.05 693627AZ4 Deb 6/15/2016 0 BBB+ 0.92 0.90 1.04 1.18 1.01%
PSEG Power LLC 8.62 69362BAJ1 Sr Nts 4/15/2031 15 BBB+ 5.95 5.81 6.05 6.29 6.50 5.90 5.66 5.52 5.62 5.62 6.30 6.42 5.97% 6.11%
Public Svc No Car 6.99 744516AA3 Sr Deb 1/15/2026 10 BBB+ 3.92 3.88 3.79 3.69 3.78 3.37 3.34 3.37 3.57 3.57 4.14 4.15 3.71% 3.95%
Public Svc No Car 7.45 744516AB1 Sr Deb 12/15/2026 10 BBB+ 4.04 3.88 3.79 3.69 3.78 3.37 3.34 3.37 3.57 3.57 4.14 4.15 3.72% 3.95%
Southern California Edison Co. 6.65 842400EB5 Nts 4/1/2029 13 BBB+ 3.98 3.72 3.79 3.86 3.88 3.46 3.47 3.45 3.64 3.64 4.08 4.20 3.76% 3.97%
Southern Power Co 6.38 843646AG5 Sr Nt Ser E 11/15/2036 20 BBB+ 6.17 6.18 6.20 6.22 6.25 6.26 6.27 6.30 6.36 6.36 6.36 6.37 6.28% 6.36%
Tampa Electric Co. 6.55 875127AV4 Nts 5/15/2036 20 BBB+ 4.39 4.23 4.21 4.18 4.11 3.90 3.84 3.78 4.06 4.06 4.50 4.49 4.15% 4.35%
Tampa Electric Co. 6.15 875127AW2 Sr Nts 5/15/2037 21 BBB+ 4.42 4.22 4.20 4.18 4.07 3.79 3.78 3.73 4.11 4.11 4.56 4.47 4.14% 4.38%
Tampa Electric Co. 6.1 875127AX0 Fixed Rt 5/15/2018 2 BBB+ 2.03 2.11 1.88 1.65 1.93 1.59 1.68 1.85 2.01 2.01 2.42 1.74 1.91% 2.06%
Union Electric 5.5 906548BY7 Sr Sec Nts 3/15/2034 18 BBB+ 4.35 4.15 4.17 4.18 4.11 3.78 3.69 3.64 3.86 3.86 4.32 4.25 4.03% 4.14%
Union Electric 5 906548CD2 Sr Sec Nts 2/1/2020 4 BBB+ 2.14 2.35 2.21 2.06 2.11 1.54 1.62 1.75 1.96 1.96 2.48 2.63 2.07% 2.36%
Union Electric 6.4 906548CE0 Sr Sec Nts 6/15/2017 1 BBB+ 1.48 1.62 1.41 1.20 1.12 1.07 1.03 1.14 1.19 1.19 1.47 1.40 1.28% 1.35%
Union Electric 6 906548CF7 Sr Sec Nts 4/1/2018 2 BBB+ 1.89 1.80 1.81 1.82 1.78 1.33 1.36 1.49 1.46 1.46 1.71 1.85 1.65% 1.67%
Union Electric 6.7 906548CG5 Sr Sec Nts 2/1/2019 3 BBB+ 1.82 2.07 1.91 1.75 1.82 1.28 1.38 1.46 1.55 1.55 1.92 2.06 1.71% 1.84%
Xcel Energy Inc. 6.5 98389BAH3 Sr Nts 7/1/2036 20 BBB+ 4.59 4.43 4.40 4.37 4.32 4.03 3.79 3.80 4.05 4.05 4.49 4.53 4.24% 4.36%
Appalachian Power Co. 5.95 037735BZ9 Sr Nts'H' 5/15/2033 17 BBB 4.94 5.46 5.20 4.94 4.87 4.54 4.39 4.33 4.28 4.28 4.62 4.60 4.70% 4.50%
Appalachian Power 5 037735CD7 Sr Nts'K' 6/1/2017 1 BBB 1.73 1.81 1.66 1.51 1.50 1.41 1.47 1.43 1.44 1.44 1.56 1.73 1.56% 1.58%
Appalachian Power 5.8 037735CE5 Sr Nts'L' 10/1/2035 19 BBB 4.74 4.65 4.64 4.63 4.51 4.25 4.23 4.25 4.31 4.31 4.72 4.59 4.49% 4.54%
Appalachian Power 6.38 037735CG0 Sr Nts'N' 4/1/2036 20 BBB 4.87 5.04 4.88 4.72 4.55 4.38 4.26 4.29 4.33 4.33 4.69 4.60 4.58% 4.54%
CMS Energy Corp. 6.55 125896BA7 Sr Nts 7/17/2017 1 BBB 1.90 1.99 1.81 1.63 1.56 1.36 1.47 1.38 1.27 1.27 1.43 0.00 1.42% 0.90%
Cleveland Electric Illuminating Co. 7.88 186108BU9 Sec Nts 'D' 11/1/2017 1 BBB 1.99 2.23 2.10 1.96 2.16 1.73 1.89 1.89 1.97 1.97 1.69 1.59 1.93% 1.75%
Commonwealth Edison 6.95 202795GX2 Nts 7/15/2018 2 BBB 2.17 2.09 2.12 2.15 2.22 1.93 2.05 2.15 2.15 2.15 2.43 2.07 2.14% 2.22%
DTE Energy Co. 6.35 233331AM9 Sr Nt 2006 Ser B 6/1/2016 0 BBB 1.20 1.27 1.38 1.48 1.33%
Dominion Resources, Inc. (Va.) 7.5 25746UAY5Enhanced Jr Sub Nt 2006 Ser A6/30/2066 50 BBB 8.98 8.97 8.96 8.94 9.00 9.12 4.09 4.01 3.99 3.99 4.05 4.05 6.51% 4.03%
Dominion Resources, Inc. (Va.) 2.58 25746UAZ2Jr Sub Nt 2006 Ser B Enhanced9/30/2066 50 BBB 4.43 4.57 4.49 4.41 4.17 4.18 4.02 3.88 4.13 4.13 4.25 4.25 4.24% 4.21%
El Paso Electric Co. 6 283677AW2 Sr Nts 5/15/2035 19 BBB 4.34 4.14 4.35 4.55 4.54 4.23 4.24 4.18 4.38 4.38 4.83 4.76 4.41% 4.66%
Empire District Electric Co. (The) 5.8 291641AZ1 Sr Nts 7/1/2035 19 BBB 5.78 5.79 5.82 5.85 5.85 5.51 5.51 5.52 5.18 5.18 5.64 5.70 5.61% 5.51%
Empire District Elec 6.7 29164RAA9 Sr Nts 11/15/2033 17 BBB 5.24 5.11 4.81 4.51 4.61 4.44 4.38 4.29 4.50 4.50 4.97 5.24 4.72% 4.90%
Energy East Corp. 6.75 29266MAE9 Nts 9/15/2033 17 BBB 5.79 5.81 5.64 5.46 5.55 5.21 5.31 5.09 5.31 5.31 5.79 5.44 5.48% 5.51%
Energy East 6.75 29266MAF6 Nt 7/15/2036 20 BBB 4.89 4.91 4.75 4.59 4.68 4.34 4.44 4.22 4.44 4.44 4.92 4.98 4.63% 4.78%
Enersis S.A. 6.6 29274FAC8 Nt 12/1/2026 10 BBB 5.94 5.94 5.94 5.93 5.93 5.93 5.92 5.92 5.91 5.91 5.91 5.90 5.92% 5.91%
Indiana Mich Pwr 6.05 454889AM8 Sr Nts'H' 3/15/2037 21 BBB 4.84 4.82 4.80 4.78 4.59 4.27 4.19 4.14 4.27 4.27 4.64 4.57 4.52% 4.49%
Kansas City Power & Light 6.05 485134BH2 Sr Nt Ser A 11/15/2035 19 BBB 4.40 4.27 4.35 4.43 4.26 4.03 4.09 4.02 4.19 4.19 4.59 4.60 4.29% 4.46%
Kansas City Power & Light 5.85 485134BJ8 Sr Nt 6/15/2017 1 BBB 1.73 1.73 1.75 1.77 1.94 1.66 1.88 1.65 1.74 1.74 1.78 1.77 1.76% 1.76%
Kentucky Power 5.62 491386AL2 Sr Nts'D' 12/1/2032 16 BBB 5.03 4.83 4.81 4.78 4.78 4.54 4.49 4.58 4.68 4.68 4.94 5.01 4.76% 4.88%
Ohio Power Co. 6.6 677415CF6 Sr Nts 'G' 2/15/2033 17 BBB 4.54 4.73 4.63 4.52 4.46 4.17 4.16 4.15 4.26 4.26 4.72 4.60 4.43% 4.53%
Ohio Power Co. 6 677415CL3 Sr Nts'K' 6/1/2016 0 BBB 1.30 1.81 1.83 1.84
PPL Energy Supply 5.7 69352JAG2 Reset PutSecs 10/15/2035 19 BBB
PPL Energy Supply 6.2 69352JAH0 Sr Nts 5/15/2016 0 BBB 8.70 8.94 8.82%
PPL Energy Supply 6 69352JAK3 Sr Nts 12/15/2036 20 BBB 16.76 16.00 13.60 11.19 12.01 12.35 10.93 11.32 10.87 10.87 11.35 11.61 12.40% 11.28%
PPL Energy Supply 6.5 69352JAL1 Sr Nts 5/1/2018 2 BBB 11.10 10.42 7.80 5.17 5.11 6.49 4.69 4.76 3.89 3.89 3.94 3.78 5.92% 3.87%
Pacific Gas & Electric Co. 6.05 694308GE1 1st 3/1/2034 18 BBB 4.34 4.21 3.91 3.61 3.71 3.54 3.48 3.39 3.60 3.60 4.07 4.04 3.79% 3.90%
Pacific Gas & Electric Co. 5.8 694308GJ0 Fixed Rt Sr Nt 3/1/2037 21 BBB 4.47 4.29 4.12 3.95 3.93 3.62 3.64 3.62 3.80 3.80 4.19 4.20 3.97% 4.06%
Pepco Holdings, Inc. 6.12 713291AP7 Nts 6/1/2017 1 BBB 3.07 3.07 1.54 2.56%
Progress Energy, Inc. 7.75 743263AE5 Sr Nts 3/1/2031 15 BBB 4.78 4.54 4.40 4.26 4.22 4.06 4.07 4.03 4.20 4.20 4.72 4.27 4.31% 4.40%
Progress Energy, Inc. 7 743263AG0 Sr Nts 10/30/2031 15 BBB 4.68 4.54 4.39 4.23 4.26 3.95 3.97 3.92 4.03 4.03 4.66 4.35 4.25% 4.35%
Public Serv, New Mexico 7.5 744499AN4 Sr Unsec Nts 'B' 8/1/2018 2 BBB 2.54 2.39 2.41 2.42 2.50 1.82 2.00 2.05 1.94 1.94 2.14 2.14 2.19% 2.07%
Public Service Co. of Oklahoma 6.15 744533BH2 Sr Nts'F' 8/1/2016 0 BBB 1.36 1.90 1.92 1.93 1.94 1.74 1.80%
Public Service Co. of Oklahoma 6.62 744533BJ8 Sr Nts 'G' 11/15/2037 21 BBB 4.94 4.73 4.79 4.85 4.82 4.53 4.39 4.38 4.53 4.53 4.64 4.60 4.64% 4.59%
Southwest'n Elec Power 5.55 845437BH4 Sr Nt Ser E 1/15/2017 1 BBB 1.57 1.52 1.44 1.36 1.43 1.18 1.16 1.47 1.28 1.28 1.44 1.38% 1.36%
WPS Resources 6.11 92931BAC0 Jr Sub Nt 12/1/2066 50 BBB 0.00 0.00 0.00 0.00 0.00 0.00 8.09 7.31 6.51 6.51 6.70 3.42 3.21% 5.54%
Wisconsin Energy Corp. 6.25 976657AH9 2007 Ser A Jr Sub Nt 5/15/2067 51 BBB 8.66 8.48 8.02 7.56 7.63 7.91 7.65 7.34 7.17 7.17 7.21 7.16 7.66% 7.18%
Cleveland Elec. Illum 5.95 186108CE4 Sr Nts 12/15/2036 20 BBB- 5.35 5.28 5.23 5.18 5.40 5.12 5.01 4.78 4.88 4.88 5.13 5.09 5.11% 5.03%
EU-18
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Cleveland Elec. Illum 5.7 186108CF1 Sr Nts 4/1/2017 1 BBB- 2.61 2.61 2.29 1.96 1.93 1.46 1.62 1.66 1.56 1.56 1.68 1.99 1.91% 1.74%
Duquesne Light Holdings, Inc. 6.25 266233AB1 Sr Nts 8/15/2035 19 BBB- 5.59 5.59 5.59 5.58 5.51 5.22 5.23 5.20 5.24 5.24 5.71 5.70 5.45% 5.55%
NiSource Finance 5.25 65473QAQ6 Gtd Nt 9/15/2017 1 BBB- 1.63 1.62 1.82 2.02 2.11 1.94 2.15 1.66 1.70 1.70 1.84 1.95 1.85% 1.83%
NiSource Finance 5.45 65473QAR4 Gtd Nt 9/15/2020 4 BBB- 3.11 2.89 2.70 2.51 2.45 2.12 2.33 2.21 2.30 2.30 2.86 2.90 2.56% 2.69%
Ohio Edison Co. 6.88 677347CE4 Sr Nts 7/15/2036 20 BBB- 5.34 5.20 5.14 5.08 5.12 5.01 4.66 4.49 4.58 4.58 4.89 4.77 4.91% 4.75%
Pennsylvania Electric 6.625 708696BM0 Sr Nts 'C' 4/1/2019 3 BBB- 3.89 4.05 4.10 4.14 4.32 3.72 3.04 3.11 3.29 3.29 3.56 3.32 3.65% 3.39%
Constellation Energy Group, Inc. 7.6 210371AF7 Nts 4/1/2032 16 BB+ 5.18 5.01 4.81 4.60 4.49 4.38 4.11 4.09 4.28 4.28 4.78 4.74 4.56% 4.60%
FirstEnergy Corp. 7.38 337932AC1 Sr Nt Ser C 11/15/2031 15 BB+ 5.20 5.12 5.12 5.11 5.34 5.06 4.96 4.63 4.58 4.58 4.98 4.73 4.95% 4.76%
El Paso Energy Corp MTN BE 8.05 28368EAA4 MTN 10/15/2030 14 BB 8.22 8.00 7.53 7.06 7.09 6.77 6.48 6.29 6.13 6.13 6.69 6.05 6.87% 6.29%
El Paso Energy Corp MTN BE 7.75 28368EAE6 MTN-tranche # Tr 00005 1/15/2032 16 BB 8.59 8.17 7.55 6.93 7.00 6.51 6.14 5.84 5.55 5.55 5.94 5.59 6.61% 5.69%
TXU Corp. 6.5 873168AN8 Sr Nts'Q' 11/15/2024 8 D 11.44 12.29 12.28 12.26 18.35 18.43 18.32 15.17 14.82%
TXU Corp. 6.55 873168AQ1 Sr Nts'R' 11/15/2034 18 D 9.69 10.24 10.21 10.17 14.30 14.31 14.89 12.00 22.91 22.91 0.00 0.00 11.80% 7.64%
Allegheny Generating 6.88 017364AG5 Deb 9/1/2023 7 NR 6.70 6.70 6.70 6.70 6.69 6.69 6.69 6.69 6.69 6.69 6.68 6.68 6.69% 6.68%
MDU Resources Group, Inc. 5.98 552690AF6 Sr Sec Nt 12/15/2033 17 NR 5.55 5.38 5.13 4.88 4.79 4.68 4.56 4.54 4.77 4.77 5.26 5.28 4.97% 5.10%
Ohio Power Co. 6.38 677415CJ8 Sr Nts 'I' 7/15/2033 17 NR 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Orange & Rockland Utils 7 684065AU9 Deb 'G' 3/1/2029 13 NR 6.47 6.47 6.47 6.46 6.46 6.46 6.46 6.45 6.45 6.45 6.45 6.44 6.46% 6.45%
PPL Energy Supply 2.62 69352JAE7 Sr Nt Conv 5/15/2023 7 NR 0.31 0.29 0.27 0.24 0.21 0.19 0.16 0.13 0.07 0.07 0.05 0.01 0.17% 0.04%
Savannah Electric&Power 5.5 804787DJ5 Sr Nts'F' 12/15/2028 12 NR 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49% 5.49%
Sierra Pacific Resources 6.75 826428AN4 Sr Nts 8/15/2017 1 NR 5.21 5.13 5.03 4.93 4.81 4.67 4.52 4.32 3.80 3.80 3.50 3.07 4.40% 3.46%
Tennessee Valley Authority 8.25 880591BL5 Pwr Bonds '92D 4/15/2042 26 NR 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.70 7.70 7.71% 7.70%
Tennessee Valley Authority 6.235 880591CF7 Pwr Bonds '95B 7/15/2045 29 NR 5.19 5.12 5.14 5.16 5.19 5.05 5.12 5.18 5.23 5.23 5.37 5.37 5.20% 5.32%
Tennessee Valley Authority 5.98 880591CK6 Pwr Bonds '96A 4/1/2036 20 NR 3.63 3.40 3.40 3.40 3.31 2.98 2.88 2.79 3.03 3.03 3.51 3.51 3.24% 3.35%
Tennessee Valley Authority 6.15 880591CP5 Pwr Bonds '98B 1/15/2038 22 NR 3.70 3.38 3.43 3.48 3.48 3.03 2.94 2.86 3.13 3.13 3.56 3.65 3.31% 3.45%
Tennessee Valley Authority 5.88 880591CS9 Pwr Bonds '97C 4/1/2036 20 NR 3.57 3.33 3.35 3.36 3.28 2.94 2.82 2.76 3.03 3.03 3.47 3.60 3.21% 3.37%
Union Electric 7.69 906548BT8 Sub Cap Inc Sec'A' 12/15/2036 20 NR 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.42 7.42 7.42 7.42 7.42 7.43% 7.42%
276 275 275 274 272 268 268 264 263 257 257 256 254
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 3.92% 4.04%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 3.77% 3.96%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.44% 4.53%
Investment Grade (BBB- & Above) 4.39% 4.49%
Say: 4.00%
All Bonds
EU-19
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS
VL Est
EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF
Ratio
Ke
Estimate -
Cash
Flow
(Hist.
P/CF)
Ke
Estimate -
Cash
Flow
(Est.
P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
Alliant Energy LNT 36.97 1.65 2.00 22.40 18.48 4.46% 5.41% 3.45 4.00 10.71 9.24 9.33% 10.82%
Avista Corp. AVA 40.65 2.16 1.95 18.82 20.85 5.31% 4.80% 5.30 5.00 7.67 8.13 13.04% 12.30%
Black Hills BKH 59.28 1.99 3.50 29.79 16.94 3.36% 5.90% 5.66 6.65 10.47 8.91 9.55% 11.22%
G't Plains Energy GXP 27.29 1.62 1.30 16.85 20.99 5.94% 4.76% 3.36 3.50 8.12 7.80 12.31% 12.82%
IDACORP Inc. IDA 76.90 3.94 4.05 19.52 18.99 5.12% 5.27% 6.86 7.15 11.21 10.76 8.92% 9.30%
NorthWestern Corp. NWE 56.28 3.39 3.45 16.60 16.31 6.02% 6.13% 5.92 6.60 9.51 8.53 10.52% 11.73%
OGE Energy OGE 31.47 1.69 2.05 18.62 15.35 5.37% 6.51% 3.31 3.75 9.51 8.39 10.52% 11.91%
Pinnacle West Capital PNW 74.74 3.94 4.30 18.97 17.38 5.27% 5.75% 9.09 9.25 8.22 8.08 12.16% 12.38%
PNM Resources PNM 32.36 1.65 1.85 19.61 17.49 5.10% 5.72% 3.98 3.85 8.13 8.41 12.30% 11.90%
Portland General POR 42.37 2.16 2.30 19.62 18.42 5.10% 5.43% 5.78 6.10 7.33 6.95 13.64% 14.40%
Xcel Energy Inc. XEL 40.01 2.21 2.30 18.10 17.39 5.52% 5.75% 4.56 5.05 8.77 7.92 11.40% 12.62%
Average 19.90 18.05 5.14% 5.58% 9.06 8.46 11.24% 11.95%
Median 18.97 17.49 5.27% 5.72% 8.77 8.39 11.40% 11.91%
High 29.79 20.99 6.02% 6.51% 11.21 10.76 13.64% 14.40%
Low 16.60 15.35 3.36% 4.76% 7.33 6.95 8.92% 9.30%
Say 5.50% 11.60%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
2017 Assessment Year
Industry: Electric Utilities
EU-20
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Tennessee Valley Authority 6.75 880591CJ9 Global Pwr Bonds'95E 11/1/2025 9 AAA 4.98 4.94 4.95 4.95 4.97 4.86 4.85 4.87 4.92 4.92 5.11 5.18 4.96% 5.07%
Tennessee Valley Authority 6.25 880591CU4 Pwr Bonds '97E 12/15/2017 1 AAA 5.69 5.70 5.73 5.75 5.77 5.78 5.81 5.85 5.89 5.89 5.92 5.95 5.81% 5.92%
Tennessee Valley Authority 7.125 880591DM1 Global Pwr Bonds '00G 5/1/2030 14 AAA 4.94 4.81 4.83 4.85 4.84 4.64 4.63 4.63 4.72 4.72 4.97 5.05 4.80% 4.91%
Tennessee Valley Authority 4.88 880591DS8 Global Pwr Bonds'01D 12/15/2016 0 AAA 4.70 4.72 4.73 4.74 4.76 4.77 4.79 4.81 4.84 4.84 4.77% 4.84%
Tennessee Valley Authority 4.7 880591DV1 Pwr Bonds\03 B" 7/15/2033 17 AAA 4.07 3.97 3.97 3.96 3.90 3.77 3.72 3.72 3.87 3.87 4.08 4.01 3.91% 3.99%
Madison Gas & Electric 7.7 557497AL8 1st 2/15/2028 12 AA- 7.64 7.63 7.64 7.64 7.64 7.63 7.63 7.64 7.64 7.64 7.65 7.66 7.64% 7.65%
Madison Gas & Elec Co MTN BE 7.12 5574A0AB3 Tranche # Tr 00002 4/1/2032 16 AA- 5.42 5.29 5.26 5.22 5.19 5.07 5.00 5.02 5.18 5.18 5.41 5.41 5.22% 5.33%
Connecticut Lt & Pwr 7.875 207597CZ6 1st & Ref D 10/1/2024 8 A+ 6.05 5.96 6.00 6.04 6.06 5.93 5.96 5.96 6.07 6.07 6.27 6.33 6.06% 6.22%
Connecticut Lt & Pwr 7.88 207597CZ6 1st Mtg Ser 94d 10/1/2024 8 A+ 6.05 5.96 6.00 6.04 6.06 5.93 5.96 5.96 6.07 6.07 6.27 6.33 6.06% 6.22%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Ref '05B 4/1/2035 19 A+ 4.75 4.75 4.75 4.74 4.72 4.56 4.58 4.45 4.55 4.55 4.81 4.84 4.67% 4.73%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Rfdg Mtg Bd 2005 Ser B 4/1/2035 19 A+ 4.75 4.75 4.75 4.74 4.72 4.56 4.58 4.45 4.55 4.55 4.81 4.84 4.67% 4.73%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Ref'06A 6/1/2036 20 A+ 4.86 4.86 4.86 4.85 4.83 4.66 4.69 4.60 4.69 4.69 4.96 4.99 4.79% 4.88%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Rfdg Mtg Bd 2006 Ser A 6/1/2036 20 A+ 4.86 4.86 4.86 4.85 4.83 4.66 4.69 4.60 4.69 4.69 4.96 4.99 4.79% 4.88%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Ref'07A 3/1/2017 1 A+ 5.16 5.17 5.18 5.19 5.20 5.22 5.24 5.26 5.30 5.30 5.31 5.33 5.24% 5.31%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Rfdg Mtg Bd 2007 Ser A 3/1/2017 1 A+ 5.16 5.17 5.18 5.19 5.20 5.22 5.24 5.26 5.30 5.30 5.31 5.33 5.24% 5.31%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Ref'07B 3/1/2037 21 A+ 4.73 4.74 4.73 4.72 4.71 4.53 4.55 4.47 4.56 4.56 4.90 4.92 4.68% 4.79%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Rfdg Mtg Bd 2007 Ser B 3/1/2037 21 A+ 4.73 4.74 4.73 4.72 4.71 4.53 4.55 4.47 4.56 4.56 4.90 4.92 4.68% 4.79%
AmerenEnergy Generating 5.1 02360FAA4 Sr Sec Nts 10/1/2019 3 A 4.62 4.65 4.65 4.64 4.66 4.59 4.64 4.65 4.64 4.64 4.70 4.73 4.65% 4.69%
AmerenEnergy Generating 5.3 02360FAB2 Sr Sec Nts 8/1/2037 21 A 4.51 4.40 4.46 4.51 4.49 4.23 4.21 4.24 4.35 4.35 4.63 4.50 4.41% 4.49%
AmerenEnergy Generating 7.95 02360XAJ6 Sr Nts 'F' 6/1/2032 16 A 17.66 21.48 20.38 19.27 20.38 21.48 20.38 20.64 19.87 19.87 23.04 21.78 20.52% 21.56%
Carolina Power & Light 8.62 144141BP2 1st Mtg 9/15/2021 5 A 6.56 6.49 6.49 6.48 6.53 6.43 6.47 6.53 6.76 6.76 6.92 6.99 6.62% 6.89%
Carolina Power & Light 5.7 144141CV8 1st Mtg Bd 4/1/2035 19 A 4.81 4.70 4.68 4.65 4.68 4.49 4.50 4.48 4.55 4.55 4.78 4.79 4.64% 4.71%
Carolina Power & Light 6.3 144141CY2 1st Mtg Bd 4/1/2038 22 A 4.85 4.74 4.71 4.68 4.71 4.51 4.52 4.50 4.63 4.63 4.89 4.90 4.69% 4.81%
Detroit Edison Co. 6.35 250847DU1 Sr Nts 10/15/2032 16 A 5.14 5.02 4.97 4.91 4.90 4.72 4.79 4.77 4.89 4.89 5.10 5.14 4.94% 5.04%
Detroit Edison Co 5.45 250847DZ0 Sr(Sec)Nts'BR' 2/15/2035 19 A 4.71 4.67 4.59 4.51 4.50 4.32 4.38 4.36 4.47 4.47 4.67 4.70 4.53% 4.61%
Detroit Edison Co 5.7 250847EA4 Sr(Sec)Nts'E' 10/1/2037 21 A 4.69 4.57 4.60 4.62 4.61 4.40 4.32 4.30 4.44 4.44 4.71 4.62 4.53% 4.59%
Detroit Edison Co 6.62 250847EB2 Sr Nt 2006 Ser A 6/1/2036 20 A 4.98 4.84 4.82 4.79 4.78 4.58 4.65 4.64 4.76 4.76 5.00 5.04 4.80% 4.93%
Duke Energy Carolinas Llc 6.1 26442CAA2 Sr Nt 6/1/2037 21 A 5.04 4.90 4.84 4.78 4.73 4.59 4.57 4.58 4.74 4.74 4.99 4.97 4.79% 4.90%
Duke Energy Carolinas Llc 6 26442CAB0 1st & Rfdg Mtg Bd 1/15/2038 22 A 4.72 4.68 4.61 4.54 4.60 4.44 4.39 4.41 4.58 4.58 4.82 4.86 4.60% 4.75%
Duke Energy Carolinas Llc 5.25 26442CAC8 1st & Rfdg Mtg Bd 1/15/2018 2 A 4.91 4.89 4.91 4.92 4.94 4.92 4.97 4.98 5.01 5.01 5.03 5.06 4.96% 5.03%
Duke Energy Carolinas Llc 5.1 26442CAD6 1st & Rfdg Mtg Bd Ser B 4/15/2018 2 A 4.74 4.75 4.75 4.74 4.77 4.76 4.77 4.79 4.82 4.82 4.87 4.88 4.79% 4.86%
Duke Energy Carolinas Llc 6.05 26442CAE4 1st & Rfdg Mtg Ser B 4/15/2038 22 A 4.74 4.71 4.62 4.53 4.55 4.42 4.37 4.42 4.55 4.55 4.84 4.81 4.59% 4.73%
Florida Power & Light 5.85 341081EP8 1st 2/1/2033 17 A 4.80 4.69 4.70 4.71 4.66 4.55 4.55 4.52 4.65 4.65 4.86 4.85 4.68% 4.79%
Florida Power & Light 5.62 341081EQ6 First Mtg Bds 4/1/2034 18 A 4.70 4.58 4.56 4.54 4.48 4.33 4.31 4.30 4.45 4.45 4.67 4.65 4.50% 4.59%
Florida Power & Light 5.625 341081EQ6 1st 4/1/2034 18 A 4.70 4.58 4.56 4.54 4.48 4.33 4.31 4.30 4.45 4.45 4.67 4.65 4.50% 4.59%
Florida Power & Light 5.95 341081ER4 1st 10/1/2033 17 A 4.70 4.59 4.60 4.61 4.61 4.50 4.50 4.47 4.55 4.55 4.79 4.78 4.60% 4.71%
Florida Power & Light 4.95 341081ET0 1st 6/1/2035 19 A 4.38 4.31 4.28 4.24 4.21 4.06 4.00 4.02 4.20 4.20 4.42 4.33 4.22% 4.32%
Florida Power & Light 5.4 341081EU7 1st Mtg Bd 9/1/2035 19 A 4.54 4.43 4.49 4.54 4.42 4.26 4.22 4.23 4.34 4.34 4.58 4.61 4.42% 4.51%
Florida Power & Light 5.65 341081EV5 1st 2/1/2037 21 A 4.58 4.46 4.45 4.43 4.44 4.30 4.25 4.26 4.40 4.40 4.65 4.68 4.44% 4.58%
Florida Power & Light 6.2 341081EX1 1st 6/1/2036 20 A 4.84 4.72 4.75 4.77 4.66 4.50 4.46 4.49 4.63 4.63 4.88 4.90 4.69% 4.80%
Florida Power & Light 5.85 341081EY9 1st 5/1/2037 21 A 4.66 4.54 4.65 4.75 4.59 4.36 4.37 4.32 4.49 4.49 4.70 4.70 4.55% 4.63%
Florida Power Corp. 5.9 341099CB3 1st 3/1/2033 17 A 5.01 4.90 4.98 5.05 4.88 4.68 4.69 4.71 4.88 4.88 5.07 5.11 4.90% 5.02%
Florida Power Corp. 5.8 341099CG2 1st Mtg Bd 9/15/2017 1 A 5.44 5.43 5.45 5.46 5.48 5.48 5.51 5.53 5.58 5.58 5.60 5.62 5.51% 5.60%
Florida Power Corp. 6.35 341099CH0 1st 9/15/2037 21 A 4.84 4.83 4.77 4.70 4.64 4.48 4.48 4.50 4.67 4.67 4.90 4.94 4.70% 4.84%
Georgia Power Co. 5.75 373334FS5 Sr Nts 'N' 4/15/2023 7 A 4.96 4.89 4.92 4.94 4.95 4.86 4.90 4.89 4.93 4.93 5.09 5.12 4.95% 5.05%
Georgia Power Co. 5.8 373334FZ9 Sr Nts'Y' 4/15/2035 19 A 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80% 5.80%
Georgia Power Co. 5.65 373334GC9 Sr Nt Ser 2007a 3/1/2037 21 A 5.03 4.88 4.85 4.82 4.71 4.54 4.52 4.47 4.61 4.61 4.87 4.91 4.74% 4.80%
Georgia Power Co. 5.65 373334GC9 Sr Nts'07A 3/1/2037 21 A 5.03 4.88 4.85 4.82 4.71 4.54 4.52 4.47 4.61 4.61 4.87 4.91 4.74% 4.80%
Georgia Power Co. 5.7 373334GE5 Sr Nts'07B 6/1/2017 1 A 5.38 5.43 5.44 5.44 5.45 5.48 5.48 5.50 5.55 5.55 5.57 5.59 5.49% 5.57%
Gulf Power Co. 5.65 402479BW8 Sr Nts'L' 9/1/2035 19 A 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65% 5.65%
Gulf Power Co. 5.3 402479BX6 Sr Nts'M' 12/1/2016 0 A 5.12 5.13 5.15 5.17 5.19 5.20 5.22 5.24 5.28 5.28 5.20% 5.28%
MidAmerican Energy Co. 5.95 595620AG0 Sr Nts 7/15/2017 1 A 5.60 5.60 5.62 5.64 5.66 5.67 5.67 5.70 5.75 5.75 5.77 5.80 5.69% 5.77%
MidAmerican Energy Co 5.8 59562EAH8 MTN-tranche # Tr 00008 10/15/2036 20 A 4.75 4.63 4.60 4.57 4.55 4.41 4.39 4.35 4.56 4.56 4.80 4.81 4.58% 4.72%
Mississippi Power Co. 5.4 605417BT0 Sr Nts'G' 7/1/2035 19 A 5.99 5.81 5.64 5.47 5.42 5.25 5.10 5.11 5.24 5.24 5.49 5.49 5.44% 5.41%
Nevada Power 6.75 641423BU1Gen & Refunding Mtg Nt Ser R M7/1/2037 21 A 5.17 5.06 5.02 4.97 4.96 4.86 4.78 4.82 4.87 4.87 5.15 5.15 4.97% 5.06%
Northern Sts Pwr (Minn) 7.125 665772BN8 1st Mtg Bd 7/1/2025 9 A 5.37 5.28 5.32 5.36 5.30 5.17 5.23 5.21 5.29 5.29 5.49 5.55 5.32% 5.44%
Northern Sts Pwr (Minn) 6.5 665772BQ1 1st Mtg Bd 3/1/2028 12 A 5.27 5.16 5.20 5.23 5.08 4.92 4.98 4.95 5.03 5.03 5.26 5.33 5.12% 5.21%
Northern Sts Pwr (Minn) 5.25 665772CA5 1st Mtg Bd 7/15/2035 19 A 4.47 4.40 4.41 4.42 4.30 4.19 4.17 4.16 4.28 4.28 4.53 4.54 4.35% 4.45%
Northern Sts Pwr (Minn) 6.2 665772CC1 1st Mtg 7/1/2037 21 A 4.76 4.71 4.64 4.56 4.63 4.50 4.36 4.42 4.51 4.51 4.75 4.79 4.59% 4.68%
Oncor Electric Delivery 7.25 68233DAP2 Sr Sec Nts 1/15/2033 17 A 5.65 5.53 5.45 5.36 5.22 5.08 5.02 5.02 5.15 5.15 5.36 5.29 5.27% 5.27%
Oncor Electric Delivery 7 68233DAR8 Deb 9/1/2022 6 A 5.78 5.74 5.67 5.60 5.61 5.49 5.53 5.52 5.55 5.55 5.71 5.77 5.63% 5.68%
Oncor Electric Delivery 7 68233DAT4 Sr Sec Nts 5/1/2032 16 A 5.55 5.49 5.43 5.36 5.23 5.03 4.99 4.97 5.08 5.08 5.31 5.18 5.22% 5.19%
PacifiCorp 7.7 695114BT4 1st 11/15/2031 15 A 5.47 5.32 5.22 5.11 5.15 4.94 5.01 5.01 5.11 5.11 5.38 5.35 5.18% 5.28%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
EU-21
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
PacifiCorp 5.9 695114BX5 1st 8/15/2034 18 A 4.99 4.92 4.92 4.91 4.90 4.79 4.65 4.64 4.76 4.76 4.95 4.94 4.84% 4.88%
PacifiCorp 5.25 695114BZ0 1st 6/15/2035 19 A 4.55 4.48 4.49 4.50 4.49 4.33 4.27 4.26 4.40 4.40 4.59 4.58 4.45% 4.52%
PacifiCorp 6.1 695114CB2 1st 8/1/2036 20 A 4.89 4.78 4.77 4.75 4.70 4.52 4.53 4.54 4.65 4.65 4.90 4.86 4.71% 4.80%
PacifiCorp 5.75 695114CD8 1st 4/1/2037 21 A 4.81 4.71 4.64 4.56 4.55 4.39 4.37 4.36 4.50 4.50 4.76 4.71 4.57% 4.66%
Potomac Electric Power 5.75 737679CY4 Sr Nts 4/15/2034 18 A 5.18 5.08 2.54 4.27%
Potomac Electric Power 5.4 737679CZ1 Sr Nts 6/1/2035 19 A 5.04 4.94 4.82 4.70 4.68 4.57 4.48 4.51 4.57 4.57 4.79 4.87 4.71% 4.74%
Sierra Pacific Power 6.75 826418BE4 Gen & Refunding Mtg Nt Ser P 7/1/2037 21 A 5.29 5.06 5.08 5.09 4.91 4.70 4.71 4.72 4.85 4.85 5.14 5.11 4.96% 5.03%
South Carolina Electric & Gas Co. 6.62 837004BV1 1st 2/1/2032 16 A 5.34 5.23 5.16 5.09 5.08 5.05 4.96 4.93 5.07 5.07 5.31 5.15 5.12% 5.18%
South Carolina Electric & Gas Co. 5.8 837004BW9 1st 1/15/2033 17 A 4.99 4.87 4.87 4.87 4.86 4.68 4.68 4.64 4.80 4.80 5.05 4.90 4.83% 4.92%
South Carolina Electric & Gas Co. 5.3 837004BX7 1st 5/15/2033 17 A 4.74 4.63 4.63 4.62 4.61 4.44 4.44 4.41 4.57 4.57 4.81 4.66 4.59% 4.68%
South Carolina Electric & Gas Co. 5.25 837004BY5 1st 11/1/2018 2 A 4.82 4.82 4.82 4.81 4.84 4.82 4.84 4.86 4.89 4.89 4.91 4.94 4.85% 4.91%
South Carolina Electric & Gas Co. 5.25 837004BZ2 1st 3/1/2035 19 A 4.86 4.74 4.70 4.66 4.65 4.57 4.54 4.45 4.61 4.61 4.79 4.77 4.66% 4.72%
South Carolina El & Gas 6.25 837004CA6 1st Mtg Bd 7/1/2036 20 A 5.24 5.11 5.07 5.02 5.01 4.93 4.90 4.80 4.98 4.98 5.17 5.15 5.03% 5.10%
Southern California Edison Co. 6 842400ES8 1st & Ref '04B 1/15/2034 18 A 4.81 4.77 4.70 4.62 4.65 4.53 4.51 4.50 4.61 4.61 4.84 4.87 4.67% 4.77%
Southern California Edison Co. 5.55 842400EZ2 1st & Ref'05B 1/15/2036 20 A 4.64 4.62 4.56 4.49 4.43 4.42 4.33 4.33 4.39 4.39 4.67 4.61 4.49% 4.56%
Southern California Edison Co. 5.35 842400FA6 1st & Ref'05E 7/15/2035 19 A 4.61 4.54 4.56 4.57 4.43 4.28 4.28 4.29 4.34 4.34 4.60 4.58 4.45% 4.51%
Southern California Edison Co. 5.62 842400FC2 1st & Ref'06A 2/1/2036 20 A 4.68 4.59 4.58 4.56 4.45 4.37 4.35 4.35 4.45 4.45 4.71 4.70 4.52% 4.62%
Southern California Edison Co. 5.55 842400FF5 1st & Ref'06E 1/15/2037 21 A 4.64 4.60 4.53 4.46 4.48 4.36 4.27 4.26 4.40 4.40 4.64 4.66 4.48% 4.57%
Wisconsin Power & Light Co. 6.25 976826BD8 Deb 7/31/2034 18 A 4.95 4.83 4.87 4.90 4.87 4.71 4.71 4.63 4.72 4.72 5.01 5.00 4.83% 4.91%
Wisconsin Public Service 7.125 976843AX0 1st 7/1/2023 7 A 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12% 7.12%
Wisconsin Public Service 5.55 976843BE1 Sr(Sec)Nts 12/1/2036 20 A 4.75 4.63 4.63 4.62 4.64 4.47 4.42 4.35 4.44 4.44 4.64 4.66 4.56% 4.58%
Alabama Power Co. 5.5 010392DZ8 Sr Nts 'Q' 10/15/2017 1 A- 5.18 5.21 5.21 5.21 5.22 5.22 5.25 5.27 5.28 5.28 5.30 5.32 5.25% 5.30%
Alabama Power Co. 5.88 010392EB0 Sr Nts 'S' 12/1/2022 6 A- 5.03 4.97 4.96 4.94 4.97 4.86 4.87 4.89 4.91 4.91 5.08 5.12 4.96% 5.04%
Alabama Power Co. 5.7 010392EC8 Sr Nts 'T' 2/15/2033 17 A- 4.85 4.74 4.71 4.68 4.70 4.62 4.59 4.55 4.69 4.69 4.96 4.83 4.72% 4.83%
Alabama Power Co. 5.6 010392EE4 Sr Nts'V' 3/15/2033 17 A- 5.03 5.06 4.89 4.72 4.73 4.57 4.55 4.53 4.65 4.65 4.92 4.87 4.76% 4.81%
Alabama Power Co. 5.12 010392EK0 Sr Nts 'Z' 2/15/2019 3 A- 4.74 4.73 4.75 4.76 4.77 4.74 4.77 4.79 4.76 4.76 4.81 4.83 4.77% 4.80%
Alabama Power Co. 5.55 010392EW4 Sr Nts'07A 2/1/2017 1 A- 5.33 5.35 5.37 5.38 5.40 5.42 5.44 5.45 5.49 5.49 5.50 5.53 5.43% 5.51%
Alabama Power Co. 6.12 010392EZ7 Sr Nts'08A 5/15/2038 22 A- 4.99 4.88 4.87 4.86 4.79 4.67 4.59 4.55 4.71 4.71 4.95 4.92 4.79% 4.86%
Arizona Public Service 5.625 040555CF9 Nts 5/15/2033 17 A- 4.90 4.79 4.80 4.81 4.74 4.59 4.53 4.48 4.61 4.61 4.86 4.85 4.71% 4.77%
Arizona Public Service 5.5 040555CH5 Nts 9/1/2035 19 A- 4.69 4.57 4.59 4.60 4.58 4.42 4.35 4.33 4.44 4.44 4.70 4.70 4.53% 4.61%
Arizona Public Service 6.25 040555CJ1 Nt 8/1/2016 0 A- 6.10 6.12 6.14 6.16 6.19 6.22 6.16%
Arizona Public Service 6.88 040555CK8 Nts 8/1/2036 20 A- 5.22 5.12 5.13 5.14 5.08 4.90 4.79 4.76 4.95 4.95 5.19 5.18 5.03% 5.11%
Avista Corp. 5.45 05379BAH0 1st 12/1/2019 3 A- 5.07 5.06 5.08 5.10 5.06 5.02 5.05 5.07 5.02 5.02 5.09 5.11 5.06% 5.07%
Avista Corp. 5.45 05379BAH0 1st Mtg Bd 12/1/2019 3 A- 5.07 5.06 5.08 5.10 5.06 5.02 5.05 5.07 5.02 5.02 5.09 5.11 5.06% 5.07%
Avista Corp. 6.25 05379BAK3 1st Mtg Bd 12/1/2035 19 A- 4.91 4.84 4.97 5.09 5.02 4.91 4.91 4.90 4.95 4.95 5.21 5.20 4.99% 5.12%
Avista Corp. 5.7 05379BAM9 1st Mtg Bd 7/1/2037 21 A- 4.78 4.70 4.80 4.90 4.82 4.67 4.71 4.69 4.78 4.78 5.06 5.02 4.81% 4.95%
CenterPoint Energy Houston 6.95 15189XAD0 Gen Mtge'K2' 3/15/2033 17 A- 5.15 5.13 5.11 5.09 5.04 4.87 4.87 4.83 5.03 5.03 5.28 5.23 5.06% 5.18%
CenterPoint Energy Houston 5.6 15189XAH1 Gen Mtge'L2' 7/1/2023 7 A- 4.76 4.88 4.89 4.90 4.85 4.77 4.81 4.81 4.78 4.78 4.94 4.99 4.85% 4.90%
CenterPoint Energy Res 6.25 15189YAD8 Sr Nts 2/1/2037 21 A- 5.71 5.59 5.52 5.44 5.33 5.28 5.21 5.24 5.29 5.29 5.42 5.52 5.40% 5.41%
Commonwealth Edison 5.875 202795HG8 1st Ser 100 2/1/2033 17 A- 4.90 4.79 4.76 4.73 4.69 4.52 4.52 4.53 4.69 4.69 4.86 4.90 4.72% 4.82%
Commonwealth Edison 5.9 202795HK9 1st Ser 103 3/15/2036 20 A- 4.84 4.72 4.70 4.67 4.60 4.44 4.41 4.45 4.55 4.55 4.82 4.82 4.63% 4.73%
Commonwealth Edison 5.95 202795HN3 1st Ser 104 8/15/2016 0 A- 5.79 5.82 5.84 5.86 5.88 5.91 5.85%
Consolidated Edison, Inc. 5.88 209111EB5 Deb '03A 4/1/2033 17 A- 4.96 4.90 4.88 4.86 4.81 4.70 4.65 4.62 4.75 4.75 4.98 4.98 4.82% 4.90%
Consolidated Edison, Inc. 5.7 209111EF6 Deb'04B 2/1/2034 18 A- 4.96 4.84 4.84 4.83 4.84 4.71 4.70 4.63 4.75 4.75 4.91 4.92 4.81% 4.86%
Consolidated Edison, Inc. 5.3 209111EH2 Deb '05A 3/1/2035 19 A- 4.62 4.57 4.54 4.51 4.49 4.34 4.36 4.36 4.46 4.46 4.67 4.63 4.50% 4.59%
Consolidated Edison, Inc. 5.25 209111EJ8 Deb '05B 7/1/2035 19 A- 4.82 4.83 4.79 4.75 4.75 4.50 4.44 4.36 4.44 4.44 4.68 4.67 4.62% 4.60%
Consolidated Edison, Inc. 5.85 209111EL3 Deb'06A 3/15/2036 20 A- 4.79 4.80 4.76 4.72 4.72 4.52 4.46 4.50 4.62 4.62 4.87 4.86 4.69% 4.78%
Consolidated Edison, Inc. 6.2 209111EM1 Deb'06B 6/15/2036 20 A- 4.98 4.96 4.95 4.93 4.91 4.73 4.62 4.62 4.77 4.77 4.90 4.95 4.84% 4.87%
Consolidated Edison, Inc. 5.5 209111EN9 Deb'06C 9/15/2016 0 A- 5.34 5.37 5.39 5.40 5.42 5.44 5.46 5.40%
Consolidated Edison, Inc. 5.3 209111EP4 Deb'06D 12/1/2016 0 A- 5.12 5.16 5.17 5.17 5.18 5.20 5.22 5.24 5.28 5.28 5.20% 5.28%
Consolidated Edison, Inc. 5.7 209111EQ2 Deb'06E 12/1/2036 20 A- 4.81 4.68 4.68 4.67 4.67 4.50 4.49 4.44 4.59 4.59 4.79 4.79 4.64% 4.72%
Consolidated Edison, Inc. 6.3 209111ES8 Deb'07A 8/15/2037 21 A- 4.98 4.98 4.98 4.98 4.90 4.72 4.58 4.61 4.72 4.72 4.95 4.90 4.84% 4.86%
Consumers Energy Co. 5.5 210518CE4 1st 'P' 8/15/2016 0 A- 5.37 5.39 5.41 5.42 5.44 5.46 5.41%
Consumers Energy Co. 5.65 210518CL8 1st 4/15/2020 4 A- 4.95 4.92 4.95 4.98 4.97 4.92 4.92 4.98 5.01 5.01 5.11 5.13 4.99% 5.08%
Entergy Arkansas 6.38 29364DAK6 1st 11/1/2034 18 A- 6.37 6.37 6.37 6.37 6.37 6.37 6.38 6.38 6.38 6.38 6.38 6.38 6.38% 6.38%
Entergy Arkansas 5.66 29364DAL4 1st 2/1/2025 9 A- 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66% 5.66%
Entergy Gulf States 6.18 29364LAT9 1st 3/1/2035 19 A- 6.16 6.23 6.21 6.19 6.17 6.18 6.18 6.18 6.18 6.18 6.18 6.18 6.19% 6.18%
Entergy Mississippi 6.25 29364NAL2 1st 4/1/2034 18 A- 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10% 6.10%
Entergy New Orleans 5.65 29364PAJ2 1st 9/10/2029 13 A- 5.63 5.68 5.70 5.71 5.75 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.67% 5.65%
Entergy New Orleans 5.6 29364PAK9 1st 9/1/2024 8 A- 5.58 5.62 5.63 5.63 5.65 5.60 5.60 5.60 5.60 5.60 5.60 5.60 5.61% 5.60%
Idaho Pwr 6 45138LAL7 Sec M-T Nts'D' 11/15/2032 16 A- 5.13 5.02 4.98 4.93 4.90 4.80 4.78 4.71 4.85 4.85 5.12 4.97 4.92% 4.98%
Idaho Pwr 5.5 45138LAN3 Sec M-T Nts 'E' 4/1/2033 17 A- 4.95 4.85 4.88 4.91 4.77 4.68 4.69 4.69 4.73 4.73 4.95 4.85 4.81% 4.84%
Idaho Pwr 5.5 45138LAP8 Sec M-T Nts'E' 3/15/2034 18 A- 4.96 4.86 4.91 4.95 4.77 4.57 4.58 4.47 4.60 4.60 4.82 4.83 4.74% 4.75%
EU-22
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Idaho Pwr 5.875 45138LAQ6 Sec M-T Nts'E' 8/15/2034 18 A- 5.04 4.99 4.96 4.92 4.86 4.88 4.96 4.61 4.77 4.77 5.32 5.03 4.93% 5.04%
Idaho Pwr 5.3 45138LAR4 Sec M-T Nts'F' 1/4/1900 -116 A- 4.76 4.64 4.68 4.72 4.71 4.45 4.45 4.40 4.57 4.57 4.80 4.78 4.63% 4.72%
Idaho Pwr Co 1st Mtg Secd MTN 6.3 45138LAS2 Secd MTN Ser F 6/15/2037 21 A- 5.05 4.92 4.86 4.80 4.73 4.56 4.57 4.56 4.76 4.76 5.00 5.04 4.80% 4.93%
Interstate Pwr & Lt 6.45 461070AC8 Sr Deb 10/15/2033 17 A- 4.93 4.81 4.85 4.88 4.87 4.71 4.72 4.74 4.85 4.85 5.11 5.11 4.87% 5.02%
Interstate Pwr & Lt 6.3 461070AD6 Sr Deb 5/1/2034 18 A- 4.86 4.74 4.78 4.81 4.80 4.64 4.65 4.67 4.77 4.77 5.03 5.05 4.80% 4.95%
Interstate Pwr & Lt 5.5 461070AE4 Sr Deb 7/15/2025 9 A- 4.62 4.60 4.57 4.53 4.54 4.41 4.46 4.49 4.54 4.54 4.74 4.77 4.57% 4.68%
KeySpan Corp. 8 49337WAC4 Nts 11/15/2030 14 A- 6.06 5.93 5.89 5.84 5.85 5.64 5.70 5.69 5.78 5.78 6.02 6.02 5.85% 5.94%
KeySpan Corp. 5.88 49337WAH3 Nts 4/1/2033 17 A- 5.30 5.19 5.14 5.08 5.07 5.08 5.09 5.04 5.18 5.18 5.39 5.29 5.17% 5.29%
KeySpan Corp 5.8 49337WAJ9 Nt 4/1/2035 19 A- 5.23 5.12 5.06 5.00 4.99 4.77 4.78 4.73 4.88 4.88 5.09 5.13 4.97% 5.03%
Oklahoma Gas & Elec Co 6.65 678858AZ4 Sr Nts 7/15/2027 11 A- 5.37 5.26 5.30 5.33 5.34 5.19 5.25 5.29 5.34 5.34 5.58 5.64 5.35% 5.52%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 5.27 5.15 5.29 5.42 5.43 5.27 5.33 5.37 5.42 5.42 5.67 5.53 5.38% 5.54%
Oklahoma Gas & Elec Co 5.75 678858BF7 Sr Nts 1/15/2036 20 A- 4.96 4.83 4.85 4.87 4.80 4.60 4.77 4.65 4.77 4.77 5.04 5.03 4.83% 4.95%
Exelon Corp. 5.9 693304AG2 1st Ref Mtg 5/1/2034 18 A- 4.92 4.88 4.85 4.82 4.87 4.70 4.71 4.71 4.88 4.88 5.11 5.07 4.87% 5.02%
Exelon Corp. 5.95 693304AH0 1st Ref Mtg 10/1/2036 20 A- 4.77 4.67 4.64 4.61 4.66 4.46 4.47 4.48 4.66 4.66 4.90 4.85 4.65% 4.80%
Exelon Corp. 5.7 693304AJ6 1st Ref Mtg 3/15/2037 21 A- 4.84 4.74 4.71 4.68 4.73 4.55 4.56 4.57 4.75 4.75 5.00 4.95 4.74% 4.90%
Portland Gen Elec Co MTN-book 9.31 73651HAV3 1st Mortgage MTN 8/11/2021 5 A- 7.04 6.99 7.04 7.08 7.13 7.02 7.07 7.14 7.21 7.21 7.40 7.47 7.15% 7.36%
Public Svc Co New Hampshire Fo 5.6 744538AA7 1st Mtg Bd 10/5/2035 19 A- 4.77 4.64 4.69 4.74 4.78 4.45 4.52 4.49 4.61 4.61 4.87 4.96 4.68% 4.81%
Public Service Electric and Gas Co. 8 744567BA5 1st & Ref 6/1/2037 21 A- 5.64 5.56 5.60 5.63 5.62 5.31 5.27 5.30 5.42 5.42 5.72 5.69 5.51% 5.61%
Public Serv Elec & Gas 5 744567BB3 1st & Ref Mtg 7/1/2037 21 A- 4.83 4.75 4.78 4.81 4.80 4.50 4.46 4.49 4.65 4.65 4.93 4.90 4.71% 4.83%
Public Service Electric and Gas Co. 5 744567BB3 1st & Ref 7/1/2037 21 A- 4.83 4.75 4.78 4.81 4.80 4.50 4.46 4.49 4.65 4.65 4.93 4.90 4.71% 4.83%
Public Service Electric and Gas Co.9.25 744567CN6 1st & Ref CC 6/1/2021 5 A- 7.12 7.08 7.12 7.15 7.20 7.08 7.16 6.99 7.02 7.02 7.19 7.26 7.12% 7.16%
Public Svc Elec Gas Co Secd MT 7.04 74456QAG1 MTN Tranche # Tr 00007 11/6/2020 4 A- 6.10 6.06 6.09 6.12 6.15 6.07 6.13 6.17 6.21 6.21 6.35 6.39 6.17% 6.32%
Public Svc Elec Gas Co Secd MT 5.25 74456QAP1 Med Term Notes 7/1/2035 19 A- 4.47 4.35 4.38 4.41 4.40 4.22 4.23 4.23 4.23 4.23 4.48 4.54 4.35% 4.42%
Public Svc Elec Gas Co Secd MT 5.7 74456QAQ9 Secd Mtns, Ser D 12/1/2036 20 A- 4.61 4.49 4.50 4.50 4.49 4.32 4.27 4.28 4.42 4.42 4.69 4.64 4.47% 4.58%
Public Svc Elec Gas Co Secd MT 5.8 74456QAR7 Secured Mtn Series E Notes 5/1/2037 21 A- 4.66 4.59 4.62 4.65 4.64 4.36 4.32 4.35 4.45 4.45 4.73 4.70 4.54% 4.63%
Puget Sound Pwr & Lt 7.02 74531EAA0 Sr M-T Nts'A' 12/1/2027 11 A- 5.38 5.26 5.27 5.27 5.30 5.16 5.06 5.09 5.19 5.19 5.40 5.46 5.25% 5.35%
Puget Sound Energy 6.74 74531EAB8 Sr M-T Nts 'A' 6/15/2018 2 A- 6.07 6.08 6.11 6.13 6.16 6.14 6.17 6.20 6.25 6.25 6.30 6.31 6.18% 6.29%
Puget Sound Energy 7 74531EAC6 Sr M-T Nts 'B' 3/9/2029 13 A- 5.42 5.29 5.29 5.29 5.28 5.12 5.04 5.12 5.26 5.26 5.49 5.55 5.28% 5.43%
Puget Sound Energy 5.48 745332BU9 Sr Nts 6/1/2035 19 A- 4.69 4.58 4.62 4.66 4.57 4.37 4.36 4.35 4.46 4.46 4.72 4.75 4.55% 4.64%
Puget Sound Energy 6.72 745332BW5 Sr Nts 6/15/2036 20 A- 5.00 4.89 4.95 5.00 4.97 4.74 4.74 4.72 4.83 4.83 5.12 5.16 4.91% 5.04%
Puget Sound Energy 6.27 745332BX3 Sr(Sec)Nts 3/15/2037 21 A- 4.90 4.77 4.76 4.75 4.75 4.59 4.55 4.57 4.72 4.72 4.99 5.02 4.76% 4.91%
Southwestern Public Serv 5.6 845743BK8 Sr Nts'E' 10/1/2016 0 A- 5.44 5.46 5.48 5.50 5.52 5.54 5.55 5.58 5.51%
Southwestern Public Serv 6 845743BL6 Sr Nts'F' 10/1/2036 20 A- 5.01 4.89 4.94 4.99 4.86 4.67 4.69 4.70 4.85 4.85 5.10 5.02 4.88% 4.99%
Virginia Electric & Power Co. 6 927804FA7 Sr Nts'B' 1/15/2036 20 A- 4.74 4.79 4.75 4.71 4.73 4.54 4.51 4.51 4.68 4.68 4.90 4.88 4.70% 4.82%
Virginia Electric & Power Co. 6 927804FB5 Sr Nt 2007 Ser A 5/15/2037 21 A- 4.80 4.77 4.74 4.70 4.70 4.46 4.47 4.47 4.57 4.57 4.84 4.86 4.66% 4.76%
Virginia Electric & Power Co. 5.95 927804FC3 Sr Nt 2007 Ser B 9/15/2017 1 A- 5.54 5.56 5.58 5.59 5.61 5.62 5.64 5.66 5.72 5.72 5.74 5.77 5.65% 5.74%
Virginia Electric & Power Co. 6.35 927804FE9 Sr Nt 2007 Ser D 11/30/2037 21 A- 4.83 4.79 4.79 4.78 4.77 4.56 4.59 4.57 4.72 4.72 4.95 4.95 4.75% 4.87%
Virginia Electric & Power Co. 5.4 927804FF6 Sr Nt 2008 Ser A 4/30/2018 2 A- 5.02 5.00 5.01 5.01 5.03 5.02 5.04 5.06 5.09 5.09 5.13 5.15 5.05% 5.12%
Washington Water Power 7.53 94068VAA1 Secd MTN 5/5/2023 7 A- 6.08 6.05 6.11 6.17 6.20 6.11 6.16 6.24 6.15 6.15 6.35 6.39 6.18% 6.30%
Washington Water Power 7.39 94068VAF0 Secd Med-term Nt 5/11/2018 2 A- 6.74 6.75 6.78 6.80 6.83 6.80 6.84 6.85 6.89 6.89 6.94 6.96 6.84% 6.93%
Westar Energy, Inc. 5.15 95709TAB6 1st Mtg Bd 1/1/2017 1 A- 4.99 5.00 5.02 5.03 5.04 5.05 5.07 5.08 5.11 5.11 5.13 5.06% 5.12%
Westar Energy, Inc. 5.95 95709TAC4 1st Mtg Bd 1/1/2035 19 A- 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95% 5.95%
Westar Energy, Inc. 5.1 95709TAD2 Fixed Rt 1st Mtg Bd 7/15/2020 4 A- 4.57 4.54 4.55 4.56 4.57 4.50 4.55 4.59 4.58 4.58 4.68 4.70 4.58% 4.65%
Westar Energy, Inc. 5.88 95709TAE0 1st Mtg Bd 7/15/2036 20 A- 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87% 5.87%
Wisconsin Electric Power Company6.875 976656BL1 Deb 12/1/2095 79 A- 5.50 5.39 5.39 5.39 5.34 4.73 4.59 4.59 4.89 4.89 5.26 5.22 5.10% 5.12%
Wisconsin Electric Power 6.5 976656BP2 Deb 6/1/2028 12 A- 5.24 5.15 5.01 4.87 5.00 4.77 4.83 4.86 4.99 4.99 5.23 5.30 5.02% 5.17%
Wisconsin Electric Power 5.7 976656BZ0 Deb 12/1/2036 20 A- 4.66 4.53 4.53 4.53 4.51 4.35 4.36 4.33 4.52 4.52 4.72 4.69 4.52% 4.64%
Progress Energy, Inc. 8.62 144141BP2 1st 9/15/2021 5 BBB+ 6.56 6.49 6.49 6.48 6.53 6.43 6.47 6.53 6.76 6.76 6.92 6.99 6.62% 6.89%
Progress Energy, Inc. 5.7 144141CV8 1st 4/1/2035 19 BBB+ 4.81 4.70 4.68 4.65 4.68 4.49 4.50 4.48 4.55 4.55 4.78 4.79 4.64% 4.71%
Progress Energy, Inc. 6.3 144141CY2 1st 4/1/2038 22 BBB+ 4.85 4.74 4.71 4.68 4.71 4.51 4.52 4.50 4.63 4.63 4.89 4.90 4.69% 4.81%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nt 2/1/2017 1 BBB+ 5.71 5.74 5.76 5.77 5.79 5.80 5.82 5.85 5.88 5.88 5.90 5.92 5.82% 5.90%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nts 2/1/2017 1 BBB+ 5.71 5.74 5.76 5.77 5.79 5.80 5.82 5.85 5.88 5.88 5.90 5.92 5.82% 5.90%
Central Illinois Light 6.2 153645AX4 Sr Secd Nt 144a 6/15/2016 0 BBB+ 5.49 5.49 5.49 5.49 5.49%
Central Illinois Light 6.7 153645BA3 Sr Secd Nt 144a 6/15/2036 20 BBB+ 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21% 6.21%
Cincinnati Gas & Electric Co. 6.9 172070BT0 Deb 6/1/2025 9 BBB+ 5.66 5.57 5.49 5.40 5.43 5.33 5.29 5.32 5.44 5.44 5.64 5.66 5.47% 5.58%
Cleco Power LLC 6.5 185508AE8 Nts 12/1/2035 19 BBB+ 5.21 5.18 5.41 5.63 5.49 5.22 5.10 4.98 5.03 5.03 5.30 5.31 5.24% 5.21%
Consumers Energy Co. 6.875 210518AT3 Sr Nts 'B' 3/1/2018 2 BBB+ 6.24 6.25 6.30 6.34 6.36 6.34 6.38 6.39 6.44 6.44 6.48 6.52 6.37% 6.48%
Consumers Energy Co. 5.15 210518CG9 1st 2/15/2017 1 BBB+ 4.95 4.97 4.98 4.99 4.99 5.01 5.03 5.05 5.09 5.09 5.10 5.12 5.03% 5.10%
Consumers Energy Co. 5.8 210518CP9 1st 9/15/2035 19 BBB+ 4.65 4.61 4.63 4.64 4.61 4.44 4.39 4.39 4.63 4.63 4.86 4.90 4.61% 4.80%
Consumers Energy Co. 5.65 210518CQ7 1st 9/15/2018 2 BBB+ 5.16 5.16 5.17 5.17 5.18 5.16 5.19 5.22 5.24 5.24 5.28 5.30 5.21% 5.27%
Consumers Energy Co. 6.12 210518CR5 1st 3/15/2019 3 BBB+ 5.44 5.43 5.44 5.44 5.43 5.39 5.44 5.48 5.53 5.53 5.59 5.62 5.48% 5.58%
Dominion Resources 6.75 257469AG1 Sr Nts 'E' 12/15/2032 16 BBB+ 5.79 5.66 5.65 5.64 5.69%
Dominion Resources, Inc. (Va.) 5.95 25746UAV1 Fixed Rt Sr Nt 2005 Ser B 6/15/2035 19 BBB+ 5.33 5.25 5.20 5.14 5.12 4.84 4.85 4.83 4.95 4.95 5.13 5.16 5.06% 5.08%
EU-23
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Dominion Resources, Inc. (Va.) 5.6 25746UBB4 SrNts'06A 11/15/2016 0 BBB+ 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16%
Duke Energy Corp. 6 264399DK9 Sr Nts 'A' 12/1/2028 12 BBB+ 4.94 4.86 4.77 4.67 4.75 4.61 4.59 4.59 4.67 4.67 4.89 4.87 4.74% 4.81%
Duke Energy Corp. 6.45 264399ED4 Sr Nts 10/15/2032 16 BBB+ 5.13 5.01 4.98 4.94 4.90 4.78 4.72 4.74 4.89 4.89 5.12 5.12 4.93% 5.04%
Empire District Electric Co. (The) 7.2 291641AS7 1st 12/1/2016 0 BBB+ 6.88 6.91 6.94 6.97 7.00 7.03 7.06 7.10 7.17 7.17 7.02% 7.17%
Enersis S.A. 7.4 29274FAB0 Nt 12/1/2016 0 BBB+ 7.06 7.11 7.14 7.16 7.21 7.23 7.26 7.31 7.37 7.37 7.22% 7.37%
Exelon Corp. 5.62 30161NAC5 Fixed Rt Sr Nt 6/15/2035 19 BBB+ 5.25 5.15 5.00 4.85 4.80 4.73 4.67 4.66 4.79 4.79 5.09 5.10 4.91% 4.99%
Florida Pwr 6.75 34110QAL2 Nts 2/1/2028 12 BBB+ 5.55 5.43 5.44 5.45 5.47 5.31 5.37 5.41 5.51 5.51 5.76 5.83 5.50% 5.70%
MidAmerican Funding 6.93 59562HAJ7 Sr Sec Bonds 3/1/2029 13 BBB+ 5.47 5.36 5.28 5.19 5.20 4.92 4.92 4.93 4.96 4.96 5.22 5.25 5.14% 5.14%
MidAmerican Energy Hldg 6.12 59562VAM9 SrBonds 4/1/2036 20 BBB+ 5.21 5.13 4.95 4.76 4.79 4.65 4.55 4.60 4.68 4.68 4.94 4.92 4.82% 4.85%
PSI Energy, Inc. 6.12 693627AY7 Deb 10/15/2035 19 BBB+ 4.97 5.00 4.93 4.85 4.78 4.59 4.60 4.60 4.78 4.78 5.05 5.09 4.83% 4.97%
PSI Energy 6.05 693627AZ4 Deb 6/15/2016 0 BBB+ 5.93 5.95 5.98 6.01 5.97%
PSEG Power LLC 8.62 69362BAJ1 Sr Nts 4/15/2031 15 BBB+ 6.82 6.73 6.89 7.04 7.18 6.81 6.67 6.59 6.66 6.66 7.08 7.16 6.86% 6.97%
Public Svc No Car 6.99 744516AA3 Sr Deb 1/15/2026 10 BBB+ 5.58 5.58 5.55 5.51 5.56 5.40 5.40 5.42 5.52 5.52 5.75 5.76 5.55% 5.68%
Public Svc No Car 7.45 744516AB1 Sr Deb 12/15/2026 10 BBB+ 5.74 5.67 5.64 5.61 5.65 5.49 5.48 5.50 5.61 5.61 5.87 5.88 5.65% 5.79%
Southern California Edison Co. 6.65 842400EB5 Nts 4/1/2029 13 BBB+ 5.23 5.11 5.15 5.18 5.20 5.01 5.02 5.02 5.12 5.12 5.33 5.39 5.16% 5.28%
Southern Power Co 6.38 843646AG5 Sr Nt Ser E 11/15/2036 20 BBB+ 6.22 6.23 6.25 6.26 6.28 6.29 6.30 6.32 6.37 6.37 6.36 6.37 6.30% 6.37%
Tampa Electric Co. 6.55 875127AV4 Nts 5/15/2036 20 BBB+ 5.09 4.98 4.97 4.96 4.92 4.80 4.77 4.74 4.91 4.91 5.18 5.18 4.95% 5.09%
Tampa Electric Co. 6.15 875127AW2 Sr Nts 5/15/2037 21 BBB+ 4.97 4.84 4.84 4.83 4.76 4.59 4.59 4.57 4.80 4.80 5.08 5.03 4.81% 4.97%
Tampa Electric Co. 6.1 875127AX0 Fixed Rt 5/15/2018 2 BBB+ 5.59 5.61 5.61 5.60 5.64 5.63 5.65 5.69 5.74 5.74 5.79 5.76 5.67% 5.76%
Union Electric 5.5 906548BY7 Sr Sec Nts 3/15/2034 18 BBB+ 4.81 4.69 4.71 4.72 4.68 4.50 4.46 4.44 4.56 4.56 4.81 4.77 4.64% 4.71%
Union Electric 5 906548CD2 Sr Sec Nts 2/1/2020 4 BBB+ 4.50 4.55 4.54 4.52 4.53 4.46 4.48 4.51 4.56 4.56 4.64 4.67 4.54% 4.62%
Union Electric 6.4 906548CE0 Sr Sec Nts 6/15/2017 1 BBB+ 5.99 6.03 6.04 6.04 6.06 6.09 6.11 6.14 6.20 6.20 6.23 6.25 6.11% 6.23%
Union Electric 6 906548CF7 Sr Sec Nts 4/1/2018 2 BBB+ 5.51 5.52 5.54 5.56 5.57 5.55 5.57 5.60 5.64 5.64 5.67 5.70 5.59% 5.67%
Union Electric 6.7 906548CG5 Sr Sec Nts 2/1/2019 3 BBB+ 5.86 5.92 5.92 5.91 5.94 5.89 5.92 5.96 6.01 6.01 6.08 6.12 5.96% 6.07%
Xcel Energy Inc. 6.5 98389BAH3 Sr Nts 7/1/2036 20 BBB+ 5.20 5.09 5.08 5.06 5.04 4.86 4.72 4.73 4.89 4.89 5.16 5.18 4.99% 5.08%
Appalachian Power Co. 5.95 037735BZ9 Sr Nts'H' 5/15/2033 17 BBB 5.33 5.64 5.49 5.33 5.29 5.11 5.02 4.99 4.97 4.97 5.16 5.16 5.20% 5.10%
Appalachian Power 5 037735CD7 Sr Nts'K' 6/1/2017 1 BBB 4.79 4.80 4.81 4.81 4.83 4.84 4.85 4.87 4.89 4.89 4.91 4.93 4.85% 4.91%
Appalachian Power 5.8 037735CE5 Sr Nts'L' 10/1/2035 19 BBB 5.11 5.06 5.06 5.05 4.98 4.82 4.81 4.83 4.87 4.87 5.11 5.04 4.97% 5.01%
Appalachian Power 6.38 037735CG0 Sr Nts'N' 4/1/2036 20 BBB 5.34 5.46 5.36 5.26 5.16 5.05 4.98 5.00 5.03 5.03 5.25 5.20 5.18% 5.16%
CMS Energy Corp. 6.55 125896BA7 Sr Nts 7/17/2017 1 BBB 6.13 6.16 6.17 6.18 6.20 6.21 6.24 6.26 6.31 6.31 6.34 0.00 5.71% 4.22%
Cleveland Electric Illuminating Co. 7.88 186108BU9 Sec Nts 'D' 11/1/2017 1 BBB 7.15 7.21 7.23 7.24 7.29 7.28 7.33 7.37 7.44 7.44 7.45 7.49 7.33% 7.46%
Commonwealth Edison 6.95 202795GX2 Nts 7/15/2018 2 BBB 6.23 6.24 6.27 6.30 6.33 6.31 6.35 6.39 6.43 6.43 6.48 6.47 6.35% 6.46%
DTE Energy Co. 6.35 233331AM9 Sr Nt 2006 Ser B 6/1/2016 0 BBB 6.24 6.26 6.29 6.32 6.28%
Dominion Resources, Inc. (Va.) 7.5 25746UAY5Enhanced Jr Sub Nt 2006 Ser A6/30/2066 50 BBB 8.96 8.95 8.94 8.92 8.98 9.10 3.99 3.92 3.94 3.94 3.99 3.99 6.47% 3.97%
Dominion Resources, Inc. (Va.) 2.58 25746UAZ2Jr Sub Nt 2006 Ser B Enhanced9/30/2066 50 BBB 4.19 4.32 4.25 4.17 3.96 3.96 3.83 3.71 3.97 3.97 4.07 4.07 4.04% 4.04%
El Paso Electric Co. 6 283677AW2 Sr Nts 5/15/2035 19 BBB 4.93 4.82 4.95 5.07 5.07 4.88 4.89 4.86 4.98 4.98 5.25 5.21 4.99% 5.15%
Empire District Electric Co. (The) 5.8 291641AZ1 Sr Nts 7/1/2035 19 BBB 5.78 5.79 5.81 5.83 5.83 5.60 5.61 5.62 5.40 5.40 5.70 5.74 5.68% 5.61%
Empire District Elec 6.7 29164RAA9 Sr Nts 11/15/2033 17 BBB 5.74 5.66 5.48 5.30 5.36 5.26 5.24 5.19 5.32 5.32 5.59 5.76 5.44% 5.56%
Energy East Corp. 6.75 29266MAE9 Nts 9/15/2033 17 BBB 6.11 6.12 6.01 5.90 5.96 5.75 5.81 5.68 5.82 5.82 6.12 5.91 5.92% 5.95%
Energy East 6.75 29266MAF6 Nt 7/15/2036 20 BBB 5.45 5.46 5.36 5.26 5.32 5.11 5.18 5.04 5.18 5.18 5.49 5.54 5.30% 5.40%
Enersis S.A. 6.6 29274FAC8 Nt 12/1/2026 10 BBB 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27% 6.27%
Indiana Mich Pwr 6.05 454889AM8 Sr Nts'H' 3/15/2037 21 BBB 5.22 5.20 5.20 5.19 5.06 4.87 4.82 4.79 4.87 4.87 5.11 5.07 5.02% 5.02%
Kansas City Power & Light 6.05 485134BH2 Sr Nt Ser A 11/15/2035 19 BBB 4.97 4.90 4.95 5.00 4.90 4.76 4.80 4.76 4.87 4.87 5.11 5.12 4.92% 5.03%
Kansas City Power & Light 5.85 485134BJ8 Sr Nt 6/15/2017 1 BBB 5.54 5.55 5.57 5.59 5.62 5.62 5.65 5.66 5.70 5.70 5.72 5.74 5.64% 5.72%
Kentucky Power 5.62 491386AL2 Sr Nts'D' 12/1/2032 16 BBB 5.27 5.15 5.14 5.13 5.13 5.00 4.97 5.03 5.09 5.09 5.23 5.27 5.13% 5.20%
Ohio Power Co. 6.6 677415CF6 Sr Nts 'G' 2/15/2033 17 BBB 5.31 5.43 5.37 5.31 5.28 5.12 5.12 5.12 5.19 5.19 5.45 5.38 5.27% 5.34%
Ohio Power Co. 6 677415CL3 Sr Nts'K' 6/1/2016 0 BBB 5.90 5.93 5.95 5.97 5.94%
PPL Energy Supply 5.7 69352JAG2 Reset PutSecs 10/15/2035 19 BBB 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70% 5.70%
PPL Energy Supply 6.2 69352JAH0 Sr Nts 5/15/2016 0 BBB 6.24 6.23 6.24%
PPL Energy Supply 6 69352JAK3 Sr Nts 12/15/2036 20 BBB 15.78 15.00 12.63 10.25 11.00 11.32 10.00 10.34 9.91 9.91 10.34 10.57 11.42% 10.27%
PPL Energy Supply 6.5 69352JAL1 Sr Nts 5/1/2018 2 BBB 7.14 7.02 6.68 6.34 6.34 6.50 6.31 6.32 6.26 6.26 6.28 6.28 6.48% 6.27%
Pacific Gas & Electric Co. 6.05 694308GE1 1st 3/1/2034 18 BBB 4.99 4.91 4.75 4.59 4.64 4.55 4.53 4.48 4.60 4.60 4.86 4.85 4.70% 4.77%
Pacific Gas & Electric Co. 5.8 694308GJ0 Fixed Rt Sr Nt 3/1/2037 21 BBB 4.91 4.80 4.70 4.60 4.59 4.41 4.42 4.41 4.53 4.53 4.76 4.77 4.62% 4.69%
Pepco Holdings, Inc. 6.12 713291AP7 Nts 6/1/2017 1 BBB 5.89 5.90 2.95 4.91%
Progress Energy, Inc. 7.75 743263AE5 Sr Nts 3/1/2031 15 BBB 5.89 5.75 5.68 5.61 5.59 5.51 5.52 5.51 5.62 5.62 5.91 5.67 5.66% 5.73%
Progress Energy, Inc. 7 743263AG0 Sr Nts 10/30/2031 15 BBB 5.57 5.49 5.41 5.33 5.35 5.19 5.20 5.18 5.25 5.25 5.60 5.43 5.35% 5.43%
Public Serv, New Mexico 7.5 744499AN4 Sr Unsec Nts 'B' 8/1/2018 2 BBB 6.69 6.69 6.72 6.75 6.78 6.72 6.77 6.80 6.84 6.84 6.89 6.92 6.78% 6.88%
Public Service Co. of Oklahoma 6.15 744533BH2 Sr Nts'F' 8/1/2016 0 BBB 6.00 6.04 6.06 6.08 6.10 6.12 6.07%
Public Service Co. of Oklahoma 6.62 744533BJ8 Sr Nts 'G' 11/15/2037 21 BBB 5.42 5.28 5.32 5.36 5.34 5.15 5.07 5.06 5.17 5.17 5.24 5.22 5.23% 5.21%
Southwest'n Elec Power 5.55 845437BH4 Sr Nt Ser E 1/15/2017 1 BBB 5.34 5.36 5.38 5.39 5.41 5.42 5.43 5.46 5.50 5.50 5.52 5.43% 5.51%
WPS Resources 6.11 92931BAC0 Jr Sub Nt 12/1/2066 50 BBB 0.00 0.00 0.00 0.00 0.00 0.00 8.05 7.27 6.50 6.50 6.67 3.35 3.20% 5.51%
Wisconsin Energy Corp. 6.25 976657AH9 2007 Ser A Jr Sub Nt 5/15/2067 51 BBB 8.62 8.44 7.99 7.53 7.59 7.87 7.62 7.30 7.14 7.14 7.18 7.13 7.63% 7.15%
Cleveland Elec. Illum 5.95 186108CE4 Sr Nts 12/15/2036 20 BBB- 5.54 5.49 5.46 5.42 5.57 5.39 5.32 5.17 5.24 5.24 5.40 5.38 5.38% 5.34%
EU-24
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Electric Utilities
2017 Assessment Year
Cleveland Elec. Illum 5.7 186108CF1 Sr Nts 4/1/2017 1 BBB- 5.50 5.51 5.51 5.51 5.52 5.52 5.54 5.56 5.60 5.60 5.62 5.64 5.55% 5.62%
Duquesne Light Holdings, Inc. 6.25 266233AB1 Sr Nts 8/15/2035 19 BBB- 5.79 5.80 5.80 5.80 5.75 5.56 5.57 5.55 5.58 5.58 5.89 5.88 5.71% 5.78%
NiSource Finance 5.25 65473QAQ6 Gtd Nt 9/15/2017 1 BBB- 4.96 4.97 5.00 5.03 5.04 5.05 5.07 5.06 5.09 5.09 5.11 5.13 5.05% 5.11%
NiSource Finance 5.45 65473QAR4 Gtd Nt 9/15/2020 4 BBB- 4.95 4.91 4.89 4.86 4.85 4.80 4.85 4.84 4.88 4.88 4.98 5.00 4.89% 4.95%
Ohio Edison Co. 6.88 677347CE4 Sr Nts 7/15/2036 20 BBB- 5.78 5.69 5.65 5.61 5.64 5.57 5.35 5.24 5.31 5.31 5.50 5.43 5.51% 5.41%
Pennsylvania Electric 6.625 708696BM0 Sr Nts 'C' 4/1/2019 3 BBB- 6.13 6.16 6.18 6.20 6.24 6.16 6.07 6.09 6.15 6.15 6.20 6.18 6.16% 6.18%
Constellation Energy Group, Inc. 7.6 210371AF7 Nts 4/1/2032 16 BB+ 6.02 5.92 5.81 5.69 5.63 5.57 5.43 5.42 5.54 5.54 5.83 5.81 5.68% 5.73%
FirstEnergy Corp. 7.38 337932AC1 Sr Nt Ser C 11/15/2031 15 BB+ 5.98 5.94 5.94 5.94 6.08 5.92 5.87 5.68 5.67 5.67 5.90 5.76 5.86% 5.78%
El Paso Energy Corp MTN BE 8.05 28368EAA4 MTN 10/15/2030 14 BB 8.16 8.02 7.71 7.39 7.41 7.21 7.03 6.92 6.83 6.83 7.17 6.79 7.29% 6.93%
El Paso Energy Corp MTN BE 7.75 28368EAE6 MTN-tranche # Tr 00005 1/15/2032 16 BB 8.35 8.05 7.62 7.19 7.24 6.92 6.68 6.50 6.33 6.33 6.57 6.36 7.01% 6.42%
TXU Corp. 6.5 873168AN8 Sr Nts'Q' 11/15/2024 8 D 8.90 9.35 9.32 9.28 13.00 13.00 12.87 10.83 21.66 21.66 12.99% 21.66%
TXU Corp. 6.55 873168AQ1 Sr Nts'R' 11/15/2034 18 D 8.97 9.42 9.39 9.35 13.10 13.10 13.64 10.91 21.83 21.83 13.15% 21.83%
Allegheny Generating 6.88 017364AG5 Deb 9/1/2023 7 NR 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80% 6.80%
MDU Resources Group, Inc. 5.98 552690AF6 Sr Sec Nt 12/15/2033 17 NR 5.70 5.59 5.45 5.30 5.24 5.18 5.11 5.10 5.24 5.24 5.54 5.55 5.35% 5.44%
Madison Gas & Elec Co MTN BE 5.26 5574A0AC1 MTN 9/29/2017 1 NR 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58% 4.58%
Ohio Power Co. 6.38 677415CJ8 Sr Nts 'I' 7/15/2033 17 NR 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Orange & Rockland Utils 7 684065AU9 Deb 'G' 3/1/2029 13 NR 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69% 6.69%
PPL Energy Supply 2.62 69352JAE7 Sr Nt Conv 5/15/2023 7 NR 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25% 2.25%
Savannah Electric&Power 5.5 804787DJ5 Sr Nts'F' 12/15/2028 12 NR 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50% 5.50%
Sierra Pacific Resources 6.75 826428AN4 Sr Nts 8/15/2017 1 NR 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60% 6.60%
Tennessee Valley Authority 8.25 880591BL5 Pwr Bonds '92D 4/15/2042 26 NR 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78% 7.78%
Tennessee Valley Authority 6.235 880591CF7 Pwr Bonds '95B 7/15/2045 29 NR 5.39 5.33 5.35 5.37 5.39 5.29 5.34 5.39 5.43 5.43 5.54 5.54 5.40% 5.50%
Tennessee Valley Authority 5.98 880591CK6 Pwr Bonds '96A 4/1/2036 20 NR 4.48 4.35 4.36 4.36 4.31 4.14 4.08 4.04 4.18 4.18 4.45 4.45 4.28% 4.36%
Tennessee Valley Authority 6.15 880591CP5 Pwr Bonds '98B 1/15/2038 22 NR 4.50 4.31 4.35 4.38 4.38 4.12 4.07 4.04 4.19 4.19 4.45 4.50 4.29% 4.38%
Tennessee Valley Authority 5.88 880591CS9 Pwr Bonds '97C 4/1/2036 20 NR 4.42 4.29 4.30 4.31 4.27 4.09 4.03 4.00 4.15 4.15 4.40 4.47 4.24% 4.34%
Union Electric 7.69 906548BT8 Sub Cap Inc Sec'A' 12/15/2036 20 NR 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48% 7.48%
278 278 278 277 275 270 270 266 265 263 263 256 254
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.36% 5.48%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.28% 5.33%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.01% 5.06%
Investment Grade (BBB- & Above) 4.96% 5.02%
Say: 5.10%
EU-25
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)Alliant Energy LNT 196,200 4,336,100 3,995,400 4,799,000 4,564,300 4,567,550 4.30% 4,279,850 1.07
Avista Corp AVA 86,496 1,750,048 1,729,825 1,825,372 1,853,551 1,787,710 4.84% 1,791,688 1.00
Black Hills Corp. BKH 139,590 1,992,274 1,853,682 3,351,305 3,216,932 2,671,790 5.22% 2,535,307 1.05
Great Plains Energy GXP 161,500 4,000,000 3,746,200 4,000,000 3,747,300 4,000,000 4.04% 3,746,750 1.07
IDACORP Inc. IDA 81,956 1,813,243 1,726,474 1,858,666 1,745,678 1,835,955 4.46% 1,736,076 1.06
NorthWestern Corp. NWE 94,970 1,873,136 1,796,345 1,878,377 1,819,663 1,875,757 5.06% 1,808,004 1.04
OGE Energy OGE 141,700 2,899,200 2,639,300 2,803,900 2,530,800 2,851,550 4.97% 2,585,050 1.10
Pinnacle West Capital PNW 205,720 4,106,367 3,819,971 4,425,789 4,146,785 4,266,078 4.82% 3,983,378 1.07
PNM Resources PNM 128,633 2,264,869 2,091,948 2,540,693 2,392,712 2,402,781 5.35% 2,242,330 1.07
Portland General POR 112,000 2,455,000 2,193,000 2,693,000 2,350,000 2,574,000 4.35% 2,271,500 1.13
Xcel Energy Inc. XEL 646,907 14,094,744 13,055,901 15,513,209 14,450,247 14,803,977 4.37% 13,753,074 1.08
Total 1,995,672 43,637,146 4.57% 40,733,007 1.07
Average 4.71% 1.07
Median 4.82% 1.07 High 5.35% 1.13
Low 4.04% 1.00
Say 4.82% 1.07
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
Industry: Electric Utilities
EU-26
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
AVA Avista Corp. high 37.10$ 39.30$ 41.31$ 41.37$ 42.17$ 44.81$ 45.22$ 43.71$ 43.74$ 41.74$ 42.26$ 43.00$ 39.99$ 40.65$ 40.48$
low 34.31$ 36.72$ 36.89$ 38.48$ 38.83$ 40.00$ 42.87$ 40.30$ 40.38$ 38.99$ 39.21$ 38.69$
BKH Black Hills high 49.73$ 57.74$ 61.13$ 60.93$ 62.26$ 63.53$ 64.58$ 63.87$ 63.79$ 62.07$ 61.90$ 62.83$ 61.34$ 59.28$ 58.32$
low 44.65$ 48.19$ 54.88$ 56.16$ 57.10$ 60.02$ 61.17$ 56.86$ 57.51$ 56.53$ 54.76$ 57.58$
GXP G't Plains Energy high 28.08$ 29.88$ 32.44$ 32.74$ 32.24$ 30.42$ 31.24$ 29.82$ 28.14$ 28.48$ 28.70$ 28.01$ 27.35$ 27.29$ 28.77$
low 25.87$ 27.80$ 28.49$ 30.21$ 28.50$ 28.08$ 29.51$ 26.84$ 26.37$ 26.33$ 26.38$ 25.85$
IDA IDACORP Inc. high 69.96$ 73.82$ 74.96$ 74.99$ 74.47$ 81.36$ 83.40$ 81.71$ 81.55$ 78.86$ 79.43$ 81.81$ 80.55$ 76.90$ 75.12$
low 65.03$ 68.30$ 69.03$ 70.40$ 69.83$ 72.91$ 79.21$ 75.46$ 75.14$ 73.33$ 72.93$ 75.03$
LNT Alliant Energy high 32.67$ 35.13$ 37.17$ 37.59$ 37.10$ 40.24$ 40.99$ 40.58$ 40.60$ 38.33$ 38.67$ 38.34$ 37.57$ 36.97$ 35.94$
Stock Split 2:1 5/20/16 low 30.38$ 32.38$ 33.26$ 34.08$ 17.77$ 36.92$ 39.07$ 37.69$ 37.09$ 36.31$ 34.88$ 35.26$
NWE NorthWestern Corp. high 55.85$ 60.76$ 62.22$ 62.51$ 59.44$ 63.30$ 63.75$ 61.32$ 60.71$ 57.76$ 59.13$ 58.08$ 56.87$ 56.28$ 58.11$
low 52.16$ 55.49$ 57.46$ 55.91$ 55.34$ 57.52$ 60.05$ 57.09$ 56.18$ 53.85$ 54.78$ 54.07$
OGE OGE Energy high 26.52$ 27.81$ 28.74$ 29.62$ 31.07$ 32.75$ 32.96$ 32.29$ 33.10$ 31.69$ 32.48$ 34.23$ 33.15$ 31.47$ 29.77$
low 23.37$ 24.39$ 24.83$ 27.27$ 28.97$ 30.09$ 31.30$ 29.91$ 30.59$ 29.61$ 29.57$ 31.26$
PNM PNM Resources high 31.41$ 33.34$ 34.07$ 33.93$ 33.49$ 35.46$ 36.15$ 34.51$ 34.91$ 33.25$ 33.45$ 34.53$ 34.06$ 32.36$ 32.67$
low 29.22$ 31.24$ 31.30$ 30.62$ 31.20$ 32.79$ 33.61$ 31.56$ 31.20$ 30.98$ 30.95$ 31.00$
PNW Pinnacle West Capital high 66.49$ 71.40$ 75.15$ 75.81$ 74.65$ 81.08$ 82.78$ 79.54$ 80.19$ 76.59$ 77.34$ 78.97$ 78.03$ 74.74$ 73.74$
low 62.51$ 66.02$ 66.35$ 70.23$ 70.11$ 73.07$ 77.79$ 74.28$ 73.94$ 72.07$ 70.86$ 72.61$
POR Portland General high 39.02$ 40.48$ 39.90$ 40.03$ 41.94$ 44.12$ 45.21$ 44.46$ 44.12$ 44.32$ 43.91$ 44.14$ 43.33$ 42.37$ 41.16$
low 35.27$ 37.40$ 37.04$ 37.77$ 39.47$ 40.96$ 43.28$ 41.51$ 41.71$ 40.28$ 40.87$ 40.71$
XEL Xcel Energy Inc. high 38.26$ 40.42$ 41.85$ 42.04$ 41.98$ 44.78$ 45.42$ 44.13$ 43.49$ 41.80$ 41.75$ 41.20$ 40.70$ 40.01$ 40.66$
low 35.19$ 36.25$ 38.26$ 38.43$ 39.69$ 40.99$ 43.10$ 41.07$ 40.34$ 39.08$ 38.00$ 38.22$
2017 Assessment Year
Industry: Electric Utilities
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
EU-27
Exempt Wholesale Generators
2017 Capitalization Rate Study
Final
Capital Structure
Equity 40.00% Page EWG-4
Debt 60.00% Page EWG-4
Equity Cost of Capital
Capital Asset Pricing Model 10.59% Page EWG-5
Dividend Growth Model (g = Earnings Growth) 12.00% Page EWG-9
Dividend Growth Model (g = Dividend Growth) 12.70% Page EWG-9
Dividend Growth Model (g = b x ROE) 9.50% Page EWG-9
11.00%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 3.90% Page EWG-18
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
4.83%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 40.00% 11.00% 11.00% 4.40%
Debt 60.00% 4.83% 38.00% 2.99% 1.80%
WACC 100.00% 6.20%
WACC (Rounded) 6.20%
Exempt Wholesale Generators - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Exempt Wholesale Generators
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
EWG-2
Capital Structure
Equity 40.00% Page EWG-4
Debt 60.00% Page EWG-4
Equity Cost of Capital
NOI After-tax 6.00% Page EWG-19
GCF 16.00% Page EWG-19
Debt Cost of Capital
Standard and Poor's Current Yield 5.25% Page EWG-24
Calculated Current Yield - Median 6.00% Page EWG-25
6.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 40.00% 6.00% 6.00% 2.40%
Debt 60.00% 6.00% 38.00% 3.72% 2.23%
Total 100.00% 4.63%
Total (Rounded) 4.70%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 40.00% 16.00% 16.00% 6.40%
Debt 60.00% 6.00% 38.00% 3.72% 2.23%
WACC 100.00% 8.63%
Total (Rounded) 8.70%
Exempt Wholesale Generators - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Exempt Wholesale Generators
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Exempt Wholesale Generators - NOI After-tax Direct Capitalization Rate
EWG-3
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV Common
Stock
MV Preferred
Stock
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLease
s
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
AES Corp. AES POWER B 659,182 11.87 7,823,394 0 21,087,000 980,682 29,891,077 26% 0% 74%
Calpine Corp. CPN POWER B+ 359,062 11.61 4,166,912 0 12,046,000 244,325 16,457,237 25% 0% 75%
Dynegy Inc DYN POWER C+ 117,301 9.87 1,157,953 400,000 8,837,000 43,525 10,438,478 11% 4% 85%
NRG Energy NRG POWER B+ 315,443 11.40 3,594,999 0 18,566,000 600,823 22,761,822 16% 0% 84%
NRG Yield Inc. NYLDA POWER C+ 182,848 15.57 2,846,029 0 5,769,000 124,384 8,739,413 33% 0% 67%
Pattern Energy Group PEGI POWER B+ 87,411 20.84 1,821,930 0 1,382,038 202,288 3,406,256 53% 0% 47%
Vivint Solar Inc VSLR POWER C+ 110,245 2.95 325,223 0 771,900 89,692 1,186,814 27% 0% 73%
All Companies 21,736,440 400,000 68,458,938 2,285,718 92,881,096 23% 0% 76%
Average 27% 1% 72%
Median 26% 0% 74%
High 53% 4% 85%
Low 11% 0% 47%
Say 40% 0% 60%
*Market value is estimated fair value of debt from 10-K notes to financial statements
2017 Notes/Rational for Changes to Guideline Companies
The following companies were removed to focus on power industry and remove primarily regulated utilities.
AEE
DUK
PPL
SRE
SO
Added PEGI
Added VSLR
Added NYLDA
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-4
EWG
k e = Cost of Equity 10.59%
R f = Risk Free Rate 2.79%
β = Beta 1.30
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Exempt Wholesale Generators
Capital Asset Pricing Model (CAPM)
"Value Line Selection & Opinion", Value Line (January 6, 2017)
EWG-5
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Exempt Wholesale Generators
Capital Asset Pricing Model (CAPM)
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR 3 Stage Dividend Growth Model, S & P 500, See Exhibit
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
EWG-6
MONTANA DEPARTMENT OF REVENUE
k e = R f + β x ERP
2017 Assessment Year
Industry: Exempt Wholesale Generators
Capital Asset Pricing Model (CAPM)
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 6.00%
5 Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session
Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal
Disability Insurance Trust Funds (June 22, 2016)
Nominal Growth
EWG-7
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
AES Corp. AES POWER B 1.15
Calpine Corp. CPN POWER B+ 1.00
Dynegy Inc DYN POWER C+ 1.40
NRG Energy NRG POWER B+ 1.25
NRG Yield Inc. NYLDA POWER C+ 1.25
Pattern Energy Group PEGI POWER B+ 1.25
Vivint Solar Inc VSLR POWER C+ 1.65
Average 1.28
Median 1.25
High 1.65
Low 1.00
Say 1.30
MONTANA DEPARTMENT OF REVENUE
Support for Beta Selection in CAPM
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-8
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est
Payout Ratio
Retention
Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity Cost of Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPS
b =
1-Payout Ratio ROE
g =
Earnings g
g =
Dividends g
g =
b x ROE
K e
g = Earnings g
K e
g = Dividends g
K e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value Line
Multi Stg g
Wrksht
Multi Stg g
Wrksht H*I E+J E+K E+L
AES Corp. AES 11.87 0.61 5.14% 1.10 55.45% 44.55% 24.50% 7.05% 8.63% 10.91% 12.19% 13.77% 16.05%
Calpine Corp. CPN 11.61 0.00 0.50 5.50% 1.71% 1.71% 0.00%
Dynegy Inc DYN 9.87 0.00 - 3.22% 3.22%
NRG Energy NRG 11.40 0.28 2.46% 0.35 80.00% 20.00% 2.50% 3.22% -10.56% 0.50% 5.67% 2.96%
NRG Yield Inc. NYLDA 15.57 0.00 - 3.22% 3.22%
Pattern Energy Group PEGI 20.84 1.62 7.77% 0.25 648.00% 2.00% 7.37% 3.91% 15.14% 11.68%
Vivint Solar Inc VSLR 2.95 0.00 - 3.22% 3.22%
Average 5.12% 261.15% 32.27% 8.63% 4.14% 1.90% 3.80% 11.00% 12.72% 9.51%
Median 5.14% 80.00% 32.27% 4.00% 3.22% 3.22% 0.50% 12.19% 12.72% 9.51%
High 7.77% 648.00% 44.55% 24.50% 7.37% 8.63% 10.91% 15.14% 13.77% 16.05%
Low 2.46% 55.45% 20.00% 2.00% 1.71% -10.56% 0.00% 5.67% 11.68% 2.96%
Say 12.00% 12.70% 9.50%
Ke = (D1 / P0) + g
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-9
Company AES Corp. AES Company Ameren Corp. AEE Compnay Calpine Corp. CPN
Value Line 5 yr est. earnings growth 8.50% Value Line 5 yr est. earnings growth 6.00% Value Line 5 yr est. earnings growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.085 1 30 0.060 1 30 0.000
2 29 0.085 2 29 0.060 2 29 0.000
3 28 0.085 3 28 0.060 3 28 0.000
4 27 0.085 4 27 0.060 4 27 0.000
5 26 0.085 5 26 0.060 5 26 0.000
6 25 0.083 6 25 0.059 6 25 0.003
7 24 0.080 7 24 0.058 7 24 0.006
8 23 0.078 8 23 0.057 8 23 0.009
9 22 0.075 9 22 0.057 9 22 0.012
10 21 0.073 10 21 0.056 10 21 0.014
11 20 0.070 11 20 0.055 11 20 0.017
12 19 0.068 12 19 0.054 12 19 0.020
13 18 0.066 13 18 0.053 13 18 0.023
14 17 0.063 14 17 0.052 14 17 0.026
15 16 0.061 15 16 0.051 15 16 0.029
16 15 0.058 16 15 0.050 16 15 0.032
17 14 0.056 17 14 0.050 17 14 0.035
18 13 0.053 18 13 0.049 18 13 0.037
19 12 0.051 19 12 0.048 19 12 0.040
20 11 0.048 20 11 0.047 20 11 0.043
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 7.05% Weighted Average 5.48% Weighted Average 1.71%
Value Line 5 yr est. div'd growth 11.00% Value Line 5 yr est. div'd growth 4.00% Value Line 5 yr est. div'd growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.110 1 30 0.040 1 30 0.000
2 29 0.110 2 29 0.040 2 29 0.000
3 28 0.110 3 28 0.040 3 28 0.000
4 27 0.110 4 27 0.040 4 27 0.000
5 26 0.110 5 26 0.040 5 26 0.000
6 25 0.106 6 25 0.040 6 25 0.003
7 24 0.102 7 24 0.041 7 24 0.006
8 23 0.098 8 23 0.041 8 23 0.009
9 22 0.094 9 22 0.042 9 22 0.012
10 21 0.090 10 21 0.042 10 21 0.014
11 20 0.086 11 20 0.042 11 20 0.017
12 19 0.082 12 19 0.043 12 19 0.020
13 18 0.078 13 18 0.043 13 18 0.023
14 17 0.074 14 17 0.043 14 17 0.026
15 16 0.070 15 16 0.044 15 16 0.029
16 15 0.066 16 15 0.044 16 15 0.032
17 14 0.062 17 14 0.045 17 14 0.035
18 13 0.058 18 13 0.045 18 13 0.037
19 12 0.054 19 12 0.045 19 12 0.040
20 11 0.050 20 11 0.046 20 11 0.043
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 8.63% Weighted Average 4.22% Weighted Average 1.71%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-10
Company Duke Energy DUK Company Dynergy Inc. DYN Company NRG Energy NRG
Value Line 5 yr est. earnings growth 5.00% Selected Inflation Rate - CAPM 2.40% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.050 1 30 0.024 1 30 0.024
2 29 0.050 2 29 0.024 2 29 0.024
3 28 0.050 3 28 0.024 3 28 0.024
4 27 0.050 4 27 0.024 4 27 0.024
5 26 0.050 5 26 0.024 5 26 0.024
6 25 0.050 6 25 0.025 6 25 0.025
7 24 0.050 7 24 0.027 7 24 0.027
8 23 0.049 8 23 0.028 8 23 0.028
9 22 0.049 9 22 0.030 9 22 0.030
10 21 0.049 10 21 0.031 10 21 0.031
11 20 0.049 11 20 0.032 11 20 0.032
12 19 0.048 12 19 0.034 12 19 0.034
13 18 0.048 13 18 0.035 13 18 0.035
14 17 0.048 14 17 0.036 14 17 0.036
15 16 0.048 15 16 0.038 15 16 0.038
16 15 0.047 16 15 0.039 16 15 0.039
17 14 0.047 17 14 0.041 17 14 0.041
18 13 0.047 18 13 0.042 18 13 0.042
19 12 0.047 19 12 0.043 19 12 0.043
20 11 0.046 20 11 0.045 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 4.85% Weighted Average 3.22% Weighted Average 3.22%
Value Line 5 yr est. div'd growth 3.50% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. div'd growth -19.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.035 1 30 0.024 1 30 -0.195
2 29 0.035 2 29 0.024 2 29 -0.195
3 28 0.035 3 28 0.024 3 28 -0.195
4 27 0.035 4 27 0.024 4 27 -0.195
5 26 0.035 5 26 0.024 5 26 -0.195
6 25 0.036 6 25 0.025 6 25 -0.180
7 24 0.036 7 24 0.027 7 24 -0.165
8 23 0.037 8 23 0.028 8 23 -0.150
9 22 0.038 9 22 0.030 9 22 -0.135
10 21 0.038 10 21 0.031 10 21 -0.120
11 20 0.039 11 20 0.032 11 20 -0.105
12 19 0.040 12 19 0.034 12 19 -0.090
13 18 0.041 13 18 0.035 13 18 -0.075
14 17 0.041 14 17 0.036 14 17 -0.059
15 16 0.042 15 16 0.038 15 16 -0.044
16 15 0.043 16 15 0.039 16 15 -0.029
17 14 0.043 17 14 0.041 17 14 -0.014
18 13 0.044 18 13 0.042 18 13 0.001
19 12 0.045 19 12 0.043 19 12 0.016
20 11 0.045 20 11 0.045 20 11 0.031
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.91% Weighted Average 3.22% Weighted Average -10.56%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-11
Company PPL Corp. PPL Company Sempra Energy SRE Company Southern Co. SO
Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 8.00% Value Line 5 yr est. earnings growth 4.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.024 1 30 0.080 1 30 0.045
2 29 0.024 2 29 0.080 2 29 0.045
3 28 0.024 3 28 0.080 3 28 0.045
4 27 0.024 4 27 0.080 4 27 0.045
5 26 0.024 5 26 0.080 5 26 0.045
6 25 0.025 6 25 0.078 6 25 0.045
7 24 0.027 7 24 0.076 7 24 0.045
8 23 0.028 8 23 0.074 8 23 0.045
9 22 0.030 9 22 0.072 9 22 0.045
10 21 0.031 10 21 0.069 10 21 0.045
11 20 0.032 11 20 0.067 11 20 0.045
12 19 0.034 12 19 0.065 12 19 0.045
13 18 0.035 13 18 0.063 13 18 0.046
14 17 0.036 14 17 0.061 14 17 0.046
15 16 0.038 15 16 0.059 15 16 0.046
16 15 0.039 16 15 0.057 16 15 0.046
17 14 0.041 17 14 0.055 17 14 0.046
18 13 0.042 18 13 0.052 18 13 0.046
19 12 0.043 19 12 0.050 19 12 0.046
20 11 0.045 20 11 0.048 20 11 0.046
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.22% Weighted Average 6.74% Weighted Average 4.54%
Value Line 5 yr est. div'd growth 3.00% Value Line 5 yr est. div'd growth 7.00% Value Line 5 yr est. div'd growth 3.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.030 1 30 0.070 1 30 0.035
2 29 0.030 2 29 0.070 2 29 0.035
3 28 0.030 3 28 0.070 3 28 0.035
4 27 0.030 4 27 0.070 4 27 0.035
5 26 0.030 5 26 0.070 5 26 0.035
6 25 0.031 6 25 0.069 6 25 0.036
7 24 0.032 7 24 0.067 7 24 0.036
8 23 0.033 8 23 0.066 8 23 0.037
9 22 0.034 9 22 0.064 9 22 0.038
10 21 0.035 10 21 0.063 10 21 0.038
11 20 0.036 11 20 0.061 11 20 0.039
12 19 0.037 12 19 0.060 12 19 0.040
13 18 0.038 13 18 0.058 13 18 0.041
14 17 0.039 14 17 0.057 14 17 0.041
15 16 0.040 15 16 0.055 15 16 0.042
16 15 0.041 16 15 0.054 16 15 0.043
17 14 0.042 17 14 0.052 17 14 0.043
18 13 0.043 18 13 0.051 18 13 0.044
19 12 0.044 19 12 0.049 19 12 0.045
20 11 0.045 20 11 0.048 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.59% Weighted Average 6.11% Weighted Average 3.91%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-12
Company Pattern Energy PEGI Company NRG Yield, Inc. NYLDA Company Vivint Solar, Inc. VSLR
Selected Inflation Rate - CAPM 9.00% Selected Inflation Rate - CAPM 2.40% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.090 1 30 0.024 1 30 0.024
2 29 0.090 2 29 0.024 2 29 0.024
3 28 0.090 3 28 0.024 3 28 0.024
4 27 0.090 4 27 0.024 4 27 0.024
5 26 0.090 5 26 0.024 5 26 0.024
6 25 0.087 6 25 0.025 6 25 0.025
7 24 0.085 7 24 0.027 7 24 0.027
8 23 0.082 8 23 0.028 8 23 0.028
9 22 0.079 9 22 0.030 9 22 0.030
10 21 0.076 10 21 0.031 10 21 0.031
11 20 0.074 11 20 0.032 11 20 0.032
12 19 0.071 12 19 0.034 12 19 0.034
13 18 0.068 13 18 0.035 13 18 0.035
14 17 0.065 14 17 0.036 14 17 0.036
15 16 0.063 15 16 0.038 15 16 0.038
16 15 0.060 16 15 0.039 16 15 0.039
17 14 0.057 17 14 0.041 17 14 0.041
18 13 0.054 18 13 0.042 18 13 0.042
19 12 0.052 19 12 0.043 19 12 0.043
20 11 0.049 20 11 0.045 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 7.37% Weighted Average 3.22% Weighted Average 3.22%
Value Line 5 yr est. div'd growth 3.50% Selected Inflation Rate - CAPM 2.40% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.035 1 30 0.024 1 30 0.024
2 29 0.035 2 29 0.024 2 29 0.024
3 28 0.035 3 28 0.024 3 28 0.024
4 27 0.035 4 27 0.024 4 27 0.024
5 26 0.035 5 26 0.024 5 26 0.024
6 25 0.036 6 25 0.025 6 25 0.025
7 24 0.036 7 24 0.027 7 24 0.027
8 23 0.037 8 23 0.028 8 23 0.028
9 22 0.038 9 22 0.030 9 22 0.030
10 21 0.038 10 21 0.031 10 21 0.031
11 20 0.039 11 20 0.032 11 20 0.032
12 19 0.040 12 19 0.034 12 19 0.034
13 18 0.041 13 18 0.035 13 18 0.035
14 17 0.041 14 17 0.036 14 17 0.036
15 16 0.042 15 16 0.038 15 16 0.038
16 15 0.043 16 15 0.039 16 15 0.039
17 14 0.043 17 14 0.041 17 14 0.041
18 13 0.044 18 13 0.042 18 13 0.042
19 12 0.045 19 12 0.043 19 12 0.043
20 11 0.045 20 11 0.045 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.91% Weighted Average 3.22% Weighted Average 3.22%
MONTANA DEPARTMENT OF REVENUE
Support for Growth Rate Selection in DGM
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-13
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Tennessee Valley Authority 6.75 880591CJ9 Global Pwr Bonds'95E 11/1/2025 9 AAA 2.62 2.47 2.46 2.45 2.47 2.16 2.09 2.09 2.20 2.20 2.69 2.85 2.40% 2.58%
Tennessee Valley Authority 6.25 880591CU4 Pwr Bonds '97E 12/15/2017 1 AAA 0.95 0.85 0.87 0.89 0.94 0.74 0.84 0.91 0.80 0.80 0.97 0.97 0.88% 0.91%
Tennessee Valley Authority 7.125 880591DM1 Global Pwr Bonds '00G 5/1/2030 14 AAA 3.24 2.95 2.98 3.01 2.98 2.53 2.48 2.47 2.63 2.63 3.15 3.30 2.86% 3.03%
Tennessee Valley Authority 4.88 880591DS8 Global Pwr Bonds'01D 12/15/2016 0 AAA 0.76 0.77 0.72 0.67 0.82 0.53 0.51 0.37 0.64%
Tennessee Valley Authority 4.7 880591DV1 Pwr Bonds\03 B" 7/15/2033 17 AAA 3.50 3.30 3.29 3.27 3.14 2.87 2.75 2.74 3.05 3.05 3.50 3.34 3.15% 3.30%
Madison Gas & Electric 7.7 557497AL8 1st 2/15/2028 12 AA- 7.60 7.59 7.59 7.59 7.60 7.59 7.59 7.59 7.59 7.59 7.61 7.63 7.60% 7.61%
Madison Gas & Elec Co MTN BE 7.12 5574A0AB3 Tranche # Tr 00002 4/1/2032 16 AA- 4.39 4.16 4.09 4.01 3.94 3.71 3.57 3.60 3.87 3.87 4.29 4.28 3.98% 4.15%
Connecticut Lt & Pwr 7.875 207597CZ6 1st & Ref D 10/1/2024 8 A+ 3.78 3.51 3.58 3.65 3.67 3.31 3.37 3.33 3.53 3.53 4.04 4.18 3.62% 3.92%
Connecticut Lt & Pwr 7.88 207597CZ6 1st Mtg Ser 94d 10/1/2024 8 A+ 3.78 3.51 3.58 3.65 3.67 3.31 3.37 3.33 3.53 3.53 4.04 4.18 3.62% 3.92%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Ref '05B 4/1/2035 19 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.65 3.83 3.83 4.29 4.33 4.05% 4.15%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Rfdg Mtg Bd 2005 Ser B 4/1/2035 19 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.65 3.83 3.83 4.29 4.33 4.05% 4.15%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Ref'06A 6/1/2036 20 A+ 4.11 4.11 4.10 4.08 4.05 3.76 3.79 3.64 3.78 3.78 4.24 4.28 3.98% 4.10%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Rfdg Mtg Bd 2006 Ser A 6/1/2036 20 A+ 4.11 4.11 4.10 4.08 4.05 3.76 3.79 3.64 3.78 3.78 4.24 4.28 3.98% 4.10%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Ref'07A 3/1/2017 1 A+ 1.50 1.48 1.32 1.16 1.17 1.00 1.12 1.18 1.22 1.22 1.27 1.45 1.26% 1.31%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Rfdg Mtg Bd 2007 Ser A 3/1/2017 1 A+ 1.50 1.48 1.32 1.16 1.17 1.00 1.12 1.18 1.22 1.22 1.27 1.45 1.26% 1.31%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Ref'07B 3/1/2037 21 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.74 3.88 3.88 4.44 4.48 4.09% 4.27%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Rfdg Mtg Bd 2007 Ser B 3/1/2037 21 A+ 4.21 4.21 4.20 4.18 4.15 3.86 3.89 3.74 3.88 3.88 4.44 4.48 4.09% 4.27%
AmerenEnergy Generating 5.1 02360FAA4 Sr Sec Nts 10/1/2019 3 A 2.17 2.34 2.22 2.09 2.15 1.62 1.91 1.86 1.65 1.65 2.01 2.16 1.99% 1.94%
AmerenEnergy Generating 5.3 02360FAB2 Sr Sec Nts 8/1/2037 21 A 4.08 3.88 3.98 4.07 4.02 3.58 3.55 3.59 3.78 3.78 4.24 4.03 3.88% 4.02%
AmerenEnergy Generating 7.95 02360XAJ6 Sr Nts 'F' 6/1/2032 16 A 18.92 22.66 21.61 20.56 21.68 22.76 21.70 21.98 21.28 21.28 24.38 23.18 21.83% 22.95%
Carolina Power & Light 8.62 144141BP2 1st Mtg 9/15/2021 5 A 2.60 2.30 2.20 2.10 2.19 1.77 1.82 1.93 2.58 2.58 3.09 3.23 2.37% 2.97%
Carolina Power & Light 5.7 144141CV8 1st Mtg Bd 4/1/2035 19 A 4.27 4.09 4.04 3.99 4.03 3.70 3.71 3.67 3.78 3.78 4.20 4.20 3.96% 4.06%
Carolina Power & Light 6.3 144141CY2 1st Mtg Bd 4/1/2038 22 A 4.21 4.03 3.98 3.93 3.97 3.64 3.65 3.61 3.82 3.82 4.24 4.24 3.93% 4.10%
Detroit Edison Co. 6.35 250847DU1 Sr Nts 10/15/2032 16 A 4.35 4.13 4.02 3.91 3.89 3.55 3.67 3.63 3.83 3.83 4.22 4.29 3.94% 4.11%
Detroit Edison Co 5.45 250847DZ0 Sr(Sec)Nts'BR' 2/15/2035 19 A 4.24 4.18 4.03 3.88 3.86 3.52 3.64 3.58 3.78 3.78 4.13 4.19 3.90% 4.03%
Detroit Edison Co 5.7 250847EA4 Sr(Sec)Nts'E' 10/1/2037 21 A 4.19 3.98 4.02 4.06 4.03 3.69 3.54 3.50 3.73 3.73 4.19 4.03 3.89% 3.98%
Detroit Edison Co 6.62 250847EB2 Sr Nt 2006 Ser A 6/1/2036 20 A 4.19 3.96 3.91 3.86 3.84 3.50 3.62 3.58 3.78 3.78 4.17 4.24 3.87% 4.06%
Duke Energy Carolinas Llc 6.1 26442CAA2 Sr Nt 6/1/2037 21 A 4.55 4.33 4.23 4.13 4.04 3.80 3.77 3.79 4.03 4.03 4.44 4.41 4.13% 4.29%
Duke Energy Carolinas Llc 6 26442CAB0 1st & Rfdg Mtg Bd 1/15/2038 22 A 4.12 4.05 3.93 3.81 3.91 3.63 3.56 3.58 3.85 3.85 4.23 4.30 3.90% 4.13%
Duke Energy Carolinas Llc 5.25 26442CAC8 1st & Rfdg Mtg Bd 1/15/2018 2 A 1.68 1.37 1.35 1.33 1.40 0.98 1.37 1.34 1.24 1.24 1.44 1.61 1.36% 1.43%
Duke Energy Carolinas Llc 5.1 26442CAD6 1st & Rfdg Mtg Bd Ser B 4/15/2018 2 A 1.67 1.60 1.44 1.27 1.41 1.15 1.10 1.15 1.18 1.18 1.66 1.59 1.37% 1.48%
Duke Energy Carolinas Llc 6.05 26442CAE4 1st & Rfdg Mtg Ser B 4/15/2038 22 A 4.15 4.09 3.95 3.80 3.81 3.60 3.51 3.59 3.79 3.79 4.27 4.21 3.88% 4.09%
Florida Power & Light 5.85 341081EP8 1st 2/1/2033 17 A 4.07 3.86 3.87 3.88 3.78 3.56 3.55 3.49 3.72 3.72 4.12 4.10 3.81% 3.98%
Florida Power & Light 5.62 341081EQ6 First Mtg Bds 4/1/2034 18 A 4.08 3.87 3.82 3.77 3.67 3.37 3.34 3.30 3.58 3.58 3.99 3.95 3.69% 3.84%
Florida Power & Light 5.625 341081EQ6 1st 4/1/2034 18 A 4.08 3.87 3.82 3.77 3.67 3.37 3.34 3.30 3.58 3.58 3.99 3.95 3.69% 3.84%
Florida Power & Light 5.95 341081ER4 1st 10/1/2033 17 A 3.87 3.66 3.67 3.68 3.68 3.46 3.45 3.39 3.52 3.52 3.97 3.95 3.65% 3.81%
Florida Power & Light 4.95 341081ET0 1st 6/1/2035 19 A 3.98 3.85 3.79 3.73 3.66 3.37 3.25 3.28 3.63 3.63 4.03 3.86 3.67% 3.84%
Florida Power & Light 5.4 341081EU7 1st Mtg Bd 9/1/2035 19 A 4.01 3.80 3.89 3.98 3.78 3.48 3.40 3.42 3.61 3.61 4.03 4.08 3.76% 3.91%
Florida Power & Light 5.65 341081EV5 1st 2/1/2037 21 A 3.99 3.79 3.77 3.74 3.74 3.50 3.41 3.42 3.66 3.66 4.08 4.12 3.74% 3.95%
Florida Power & Light 6.2 341081EX1 1st 6/1/2036 20 A 4.15 3.94 3.98 4.02 3.83 3.55 3.46 3.52 3.74 3.74 4.16 4.20 3.86% 4.03%
Florida Power & Light 5.85 341081EY9 1st 5/1/2037 21 A 4.05 3.85 4.02 4.19 3.92 3.53 3.54 3.44 3.73 3.73 4.08 4.07 3.85% 3.96%
Florida Power Corp. 5.9 341099CB3 1st 3/1/2033 17 A 4.41 4.21 4.34 4.46 4.15 3.79 3.80 3.83 4.13 4.13 4.48 4.55 4.19% 4.39%
Florida Power Corp. 5.8 341099CG2 1st Mtg Bd 9/15/2017 1 A 1.70 1.35 1.31 1.27 1.36 0.99 1.12 1.20 1.33 1.33 1.32 1.33 1.30% 1.33%
Florida Power Corp. 6.35 341099CH0 1st 9/15/2037 21 A 4.15 4.13 4.02 3.91 3.82 3.54 3.53 3.56 3.83 3.83 4.21 4.27 3.90% 4.10%
Georgia Power Co. 5.75 373334FS5 Sr Nts 'N' 4/15/2023 7 A 3.27 3.00 3.06 3.12 3.15 2.78 2.90 2.83 2.93 2.93 3.46 3.55 3.08% 3.31%
Georgia Power Co. 5.8 373334FZ9 Sr Nts'Y' 4/15/2035 19 A 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79 5.79% 5.79%
Georgia Power Co. 5.65 373334GC9 Sr Nt Ser 2007a 3/1/2037 21 A 4.72 4.48 4.43 4.38 4.20 3.91 3.88 3.78 4.01 4.01 4.45 4.50 4.23% 4.32%
Georgia Power Co. 5.65 373334GC9 Sr Nts'07A 3/1/2037 21 A 4.72 4.48 4.43 4.38 4.20 3.91 3.88 3.78 4.01 4.01 4.45 4.50 4.23% 4.32%
Georgia Power Co. 5.7 373334GE5 Sr Nts'07B 6/1/2017 1 A 1.24 1.74 1.55 1.35 1.30 1.38 1.08 1.03 1.11 1.11 1.22 1.27 1.28% 1.20%
Gulf Power Co. 5.65 402479BW8 Sr Nts'L' 9/1/2035 19 A 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.64% 5.64%
Gulf Power Co. 5.3 402479BX6 Sr Nts'M' 12/1/2016 0 A 1.08 1.09 1.16 1.23 1.28 1.13 1.27 1.31 1.19%
MidAmerican Energy Co. 5.95 595620AG0 Sr Nts 7/15/2017 1 A 1.68 1.41 1.42 1.42 1.53 1.21 0.94 1.03 1.05 1.05 1.07 1.23 1.25% 1.12%
MidAmerican Energy Co 5.8 59562EAH8 MTN-tranche # Tr 00008 10/15/2036 20 A 4.19 3.99 3.94 3.89 3.85 3.61 3.57 3.49 3.83 3.83 4.24 4.25 3.89% 4.11%
Mississippi Power Co. 5.4 605417BT0 Sr Nts'G' 7/1/2035 19 A 6.28 6.03 5.78 5.52 5.43 5.16 4.93 4.94 5.14 5.14 5.54 5.55 5.45% 5.41%
Nevada Power 6.75 641423BU1Gen & Refunding Mtg Nt Ser R M7/1/2037 21 A 4.52 4.34 4.26 4.18 4.16 4.01 3.86 3.92 3.98 3.98 4.44 4.44 4.17% 4.29%
Northern Sts Pwr (Minn) 7.125 665772BN8 1st Mtg Bd 7/1/2025 9 A 3.11 2.84 2.92 2.99 2.82 2.45 2.56 2.48 2.63 2.63 3.16 3.29 2.82% 3.03%
Northern Sts Pwr (Minn) 6.5 665772BQ1 1st Mtg Bd 3/1/2028 12 A 4.05 3.79 3.86 3.93 3.57 3.20 3.31 3.23 3.38 3.38 3.91 4.03 3.64% 3.77%
Northern Sts Pwr (Minn) 5.25 665772CA5 1st Mtg Bd 7/15/2035 19 A 3.96 3.84 3.85 3.86 3.64 3.44 3.39 3.36 3.57 3.57 4.03 4.05 3.71% 3.88%
Northern Sts Pwr (Minn) 6.2 665772CC1 1st Mtg 7/1/2037 21 A 4.07 3.99 3.87 3.74 3.84 3.62 3.37 3.48 3.61 3.61 4.02 4.07 3.77% 3.90%
Oncor Electric Delivery 7.25 68233DAP2 Sr Sec Nts 1/15/2033 17 A 4.79 4.59 4.44 4.28 4.03 3.76 3.65 3.64 3.84 3.84 4.22 4.08 4.10% 4.05%
Oncor Electric Delivery 7 68233DAR8 Deb 9/1/2022 6 A 3.42 3.24 2.97 2.69 2.69 2.22 2.32 2.23 2.22 2.22 2.76 2.90 2.66% 2.63%
Oncor Electric Delivery 7 68233DAT4 Sr Sec Nts 5/1/2032 16 A 4.68 4.58 4.46 4.33 4.10 3.71 3.62 3.58 3.77 3.77 4.19 3.93 4.06% 3.96%
PacifiCorp 7.7 695114BT4 1st 11/15/2031 15 A 4.16 3.88 3.67 3.46 3.53 3.12 3.23 3.22 3.38 3.38 3.88 3.80 3.56% 3.69%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-14
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
PacifiCorp 5.9 695114BX5 1st 8/15/2034 18 A 4.45 4.32 4.31 4.30 4.27 4.08 3.82 3.80 4.00 4.00 4.34 4.32 4.17% 4.22%
PacifiCorp 5.25 695114BZ0 1st 6/15/2035 19 A 4.10 3.97 3.99 4.00 3.97 3.68 3.57 3.55 3.80 3.80 4.14 4.12 3.89% 4.02%
PacifiCorp 6.1 695114CB2 1st 8/1/2036 20 A 4.27 4.10 4.07 4.04 3.95 3.64 3.64 3.66 3.83 3.83 4.25 4.19 3.96% 4.09%
PacifiCorp 5.75 695114CD8 1st 4/1/2037 21 A 4.33 4.17 4.05 3.92 3.90 3.63 3.58 3.56 3.78 3.78 4.22 4.13 3.92% 4.04%
Potomac Electric Power 5.75 737679CY4 Sr Nts 4/15/2034 18 A 4.84 4.67 2.34 3.95%
Potomac Electric Power 5.4 737679CZ1 Sr Nts 6/1/2035 19 A 4.84 4.67 4.46 4.25 4.21 4.02 3.87 3.91 4.01 4.01 4.39 4.52 4.26% 4.31%
Sierra Pacific Power 6.75 826418BE4 Gen & Refunding Mtg Nt Ser P 7/1/2037 21 A 4.69 4.33 4.35 4.37 4.08 3.74 3.75 3.76 3.96 3.96 4.42 4.36 4.15% 4.25%
South Carolina Electric & Gas Co. 6.62 837004BV1 1st 2/1/2032 16 A 4.50 4.30 4.17 4.03 4.01 3.93 3.75 3.68 3.93 3.93 4.38 4.07 4.06% 4.13%
South Carolina Electric & Gas Co. 5.8 837004BW9 1st 1/15/2033 17 A 4.42 4.22 4.21 4.20 4.18 3.84 3.83 3.75 4.05 4.05 4.50 4.22 4.12% 4.26%
South Carolina Electric & Gas Co. 5.3 837004BX7 1st 5/15/2033 17 A 4.32 4.12 4.11 4.10 4.08 3.74 3.75 3.68 3.98 3.98 4.43 4.14 4.04% 4.18%
South Carolina Electric & Gas Co. 5.25 837004BY5 1st 11/1/2018 2 A 1.93 1.85 1.73 1.60 1.67 1.36 1.48 1.53 1.57 1.57 1.67 1.78 1.64% 1.67%
South Carolina Electric & Gas Co. 5.25 837004BZ2 1st 3/1/2035 19 A 4.62 4.42 4.34 4.26 4.24 4.10 4.06 3.88 4.16 4.16 4.47 4.44 4.26% 4.36%
South Carolina El & Gas 6.25 837004CA6 1st Mtg Bd 7/1/2036 20 A 4.77 4.56 4.49 4.41 4.39 4.25 4.20 4.03 4.32 4.32 4.62 4.59 4.41% 4.51%
Southern California Edison Co. 6 842400ES8 1st & Ref '04B 1/15/2034 18 A 4.06 3.97 3.84 3.70 3.74 3.52 3.47 3.44 3.63 3.63 4.06 4.09 3.76% 3.93%
Southern California Edison Co. 5.55 842400EZ2 1st & Ref'05B 1/15/2036 20 A 4.11 4.06 3.95 3.83 3.72 3.71 3.54 3.53 3.62 3.62 4.13 4.01 3.82% 3.92%
Southern California Edison Co. 5.35 842400FA6 1st & Ref'05E 7/15/2035 19 A 4.15 4.01 4.04 4.06 3.82 3.53 3.54 3.54 3.63 3.63 4.09 4.05 3.84% 3.92%
Southern California Edison Co. 5.62 842400FC2 1st & Ref'06A 2/1/2036 20 A 4.14 3.98 3.95 3.91 3.72 3.57 3.54 3.53 3.70 3.70 4.15 4.13 3.83% 3.99%
Southern California Edison Co. 5.55 842400FF5 1st & Ref'06E 1/15/2037 21 A 4.14 4.07 3.95 3.83 3.87 3.66 3.49 3.48 3.70 3.70 4.12 4.14 3.85% 3.99%
Wisconsin Power & Light Co. 6.25 976826BD8 Deb 7/31/2034 18 A 4.20 3.99 4.04 4.09 4.03 3.74 3.75 3.59 3.73 3.73 4.25 4.22 3.95% 4.07%
Wisconsin Public Service 7.125 976843AX0 1st 7/1/2023 7 A 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12% 7.12%
Wisconsin Public Service 5.55 976843BE1 Sr(Sec)Nts 12/1/2036 20 A 4.32 4.12 4.11 4.09 4.12 3.84 3.74 3.61 3.77 3.77 4.10 4.14 3.98% 4.00%
Alabama Power Co. 5.5 010392DZ8 Sr Nts 'Q' 10/15/2017 1 A- 1.91 2.02 1.83 1.64 1.59 1.38 1.59 1.69 1.17 1.17 1.36 1.22 1.55% 1.25%
Alabama Power Co. 5.88 010392EB0 Sr Nts 'S' 12/1/2022 6 A- 3.14 2.89 2.81 2.73 2.81 2.36 2.38 2.39 2.40 2.40 3.00 3.14 2.70% 2.85%
Alabama Power Co. 5.7 010392EC8 Sr Nts 'T' 2/15/2033 17 A- 4.25 4.05 3.99 3.93 3.96 3.79 3.74 3.64 3.90 3.90 4.40 4.15 3.98% 4.15%
Alabama Power Co. 5.6 010392EE4 Sr Nts'V' 3/15/2033 17 A- 4.63 4.70 4.39 4.07 4.07 3.78 3.73 3.69 3.90 3.90 4.40 4.30 4.13% 4.20%
Alabama Power Co. 5.12 010392EK0 Sr Nts 'Z' 2/15/2019 3 A- 2.37 2.26 2.28 2.29 2.35 1.99 2.18 2.22 1.71 1.71 2.11 2.24 2.14% 2.02%
Alabama Power Co. 5.55 010392EW4 Sr Nts'07A 2/1/2017 1 A- 1.58 1.59 1.54 1.49 1.56 1.59 1.72 1.44 1.56 1.56 1.16 1.59 1.53% 1.44%
Alabama Power Co. 6.12 010392EZ7 Sr Nts'08A 5/15/2038 22 A- 4.49 4.33 4.31 4.28 4.17 3.98 3.85 3.78 4.03 4.03 4.40 4.35 4.17% 4.26%
Arizona Public Service 5.625 040555CF9 Nts 5/15/2033 17 A- 4.39 4.20 4.22 4.23 4.10 3.81 3.68 3.59 3.81 3.81 4.28 4.27 4.03% 4.12%
Arizona Public Service 5.5 040555CH5 Nts 9/1/2035 19 A- 4.19 4.00 4.02 4.03 4.00 3.71 3.58 3.54 3.73 3.73 4.19 4.18 3.91% 4.03%
Arizona Public Service 6.25 040555CJ1 Nt 8/1/2016 0 A- 1.54 1.55 1.29 1.02 1.13 0.95 1.25%
Arizona Public Service 6.88 040555CK8 Nts 8/1/2036 20 A- 4.49 4.33 4.35 4.36 4.25 3.96 3.76 3.70 4.00 4.00 4.39 4.38 4.16% 4.26%
Avista Corp. 5.45 05379BAH0 1st 12/1/2019 3 A- 3.36 3.28 3.36 3.43 3.14 2.82 2.99 3.01 2.58 2.58 3.04 3.10 3.06% 2.91%
Avista Corp. 5.45 05379BAH0 1st Mtg Bd 12/1/2019 3 A- 3.36 3.28 3.36 3.43 3.14 2.82 2.99 3.01 2.58 2.58 3.04 3.10 3.06% 2.91%
Avista Corp. 6.25 05379BAK3 1st Mtg Bd 12/1/2035 19 A- 4.22 4.09 4.29 4.49 4.37 4.18 4.19 4.16 4.24 4.24 4.66 4.65 4.32% 4.52%
Avista Corp. 5.7 05379BAM9 1st Mtg Bd 7/1/2037 21 A- 4.32 4.19 4.34 4.49 4.37 4.13 4.19 4.16 4.29 4.29 4.74 4.67 4.35% 4.57%
CenterPoint Energy Houston 6.95 15189XAD0 Gen Mtge'K2' 3/15/2033 17 A- 4.10 4.05 4.01 3.96 3.86 3.55 3.54 3.46 3.80 3.80 4.24 4.15 3.88% 4.06%
CenterPoint Energy Houston 5.6 15189XAH1 Gen Mtge'L2' 7/1/2023 7 A- 2.96 3.34 3.35 3.36 3.17 2.86 2.98 2.93 2.78 2.78 3.33 3.50 3.11% 3.20%
CenterPoint Energy Res 6.25 15189YAD8 Sr Nts 2/1/2037 21 A- 5.48 5.31 5.20 5.08 4.91 4.83 4.73 4.77 4.83 4.83 5.04 5.18 5.02% 5.02%
Commonwealth Edison 5.875 202795HG8 1st Ser 100 2/1/2033 17 A- 4.23 4.02 3.96 3.89 3.82 3.48 3.49 3.49 3.79 3.79 4.11 4.17 3.85% 4.02%
Commonwealth Edison 5.9 202795HK9 1st Ser 103 3/15/2036 20 A- 4.27 4.06 4.02 3.97 3.85 3.57 3.52 3.58 3.73 3.73 4.19 4.19 3.89% 4.04%
Commonwealth Edison 5.95 202795HN3 1st Ser 104 8/15/2016 0 A- 0.98 1.29 1.11 0.92 0.98 0.82 1.02%
Consolidated Edison, Inc. 5.88 209111EB5 Deb '03A 4/1/2033 17 A- 4.34 4.24 4.19 4.14 4.06 3.84 3.74 3.68 3.91 3.91 4.33 4.33 4.06% 4.19%
Consolidated Edison, Inc. 5.7 209111EF6 Deb'04B 2/1/2034 18 A- 4.49 4.28 4.27 4.25 4.26 4.02 4.00 3.87 4.08 4.08 4.36 4.38 4.19% 4.27%
Consolidated Edison, Inc. 5.3 209111EH2 Deb '05A 3/1/2035 19 A- 4.18 4.09 4.04 3.98 3.94 3.65 3.69 3.68 3.87 3.87 4.24 4.16 3.95% 4.09%
Consolidated Edison, Inc. 5.25 209111EJ8 Deb '05B 7/1/2035 19 A- 4.55 4.57 4.50 4.43 4.42 3.99 3.88 3.74 3.86 3.86 4.29 4.27 4.20% 4.14%
Consolidated Edison, Inc. 5.85 209111EL3 Deb'06A 3/15/2036 20 A- 4.21 4.23 4.16 4.08 4.08 3.74 3.63 3.69 3.88 3.88 4.31 4.29 4.01% 4.16%
Consolidated Edison, Inc. 6.2 209111EM1 Deb'06B 6/15/2036 20 A- 4.37 4.33 4.31 4.28 4.24 3.94 3.74 3.74 3.98 3.98 4.21 4.28 4.12% 4.16%
Consolidated Edison, Inc. 5.5 209111EN9 Deb'06C 9/15/2016 0 A- 0.97 1.10 1.05 0.99 1.08 1.05 1.25 1.07%
Consolidated Edison, Inc. 5.3 209111EP4 Deb'06D 12/1/2016 0 A- 1.13 1.88 1.55 1.21 0.89 1.03 0.80 0.89 1.17%
Consolidated Edison, Inc. 5.7 209111EQ2 Deb'06E 12/1/2036 20 A- 4.34 4.14 4.12 4.10 4.11 3.81 3.79 3.69 3.95 3.95 4.28 4.28 4.05% 4.17%
Consolidated Edison, Inc. 6.3 209111ES8 Deb'07A 8/15/2037 21 A- 4.39 4.38 4.38 4.38 4.25 3.95 3.71 3.75 3.93 3.93 4.30 4.22 4.13% 4.15%
Consumers Energy Co. 5.5 210518CE4 1st 'P' 8/15/2016 0 A- 1.34 1.21 0.99 0.77 0.97 1.09 1.06%
Consumers Energy Co. 5.65 210518CL8 1st 4/15/2020 4 A- 2.14 1.93 2.03 2.13 2.00 1.61 1.54 1.80 1.82 1.82 2.39 2.46 1.97% 2.22%
Entergy Arkansas 6.38 29364DAK6 1st 11/1/2034 18 A- 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Entergy Arkansas 5.66 29364DAL4 1st 2/1/2025 9 A- 5.68 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65% 5.65%
Entergy Gulf States 6.18 29364LAT9 1st 3/1/2035 19 A- 6.16 6.25 6.23 6.20 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.17 6.18% 6.17%
Entergy Mississippi 6.25 29364NAL2 1st 4/1/2034 18 A- 6.02 6.02 6.03 6.03 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.02% 6.02%
Entergy New Orleans 5.65 29364PAJ2 1st 9/10/2029 13 A- 5.61 5.70 5.74 5.77 5.85 5.64 5.64 5.64 5.64 5.64 5.64 5.64 5.68% 5.64%
Entergy New Orleans 5.6 29364PAK9 1st 9/1/2024 8 A- 5.57 5.67 5.68 5.69 5.75 5.59 5.59 5.60 5.59 5.59 5.59 5.59 5.63% 5.59%
Idaho Pwr 6 45138LAL7 Sec M-T Nts'D' 11/15/2032 16 A- 4.55 4.35 4.27 4.18 4.11 3.92 3.88 3.74 3.98 3.98 4.48 4.21 4.14% 4.22%
Idaho Pwr 5.5 45138LAN3 Sec M-T Nts 'E' 4/1/2033 17 A- 4.55 4.39 4.44 4.48 4.22 4.05 4.06 4.07 4.13 4.13 4.54 4.35 4.28% 4.34%
EWG-15
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Idaho Pwr 5.5 45138LAP8 Sec M-T Nts'E' 3/15/2034 18 A- 4.60 4.44 4.51 4.58 4.27 3.90 3.91 3.72 3.93 3.93 4.34 4.35 4.21% 4.21%
Idaho Pwr 5.875 45138LAQ6 Sec M-T Nts'E' 8/15/2034 18 A- 4.55 4.45 4.39 4.33 4.22 4.25 4.39 3.77 4.03 4.03 4.98 4.48 4.32% 4.50%
Idaho Pwr 5.3 45138LAR4 Sec M-T Nts'F' 1/4/1900 -116 A- 4.43 4.22 4.29 4.36 4.33 3.88 3.88 3.78 4.08 4.08 4.48 4.43 4.19% 4.33%
Idaho Pwr Co 1st Mtg Secd MTN 6.3 45138LAS2 Secd MTN Ser F 6/15/2037 21 A- 4.49 4.28 4.18 4.08 3.97 3.68 3.68 3.67 3.98 3.98 4.38 4.43 4.07% 4.26%
Interstate Pwr & Lt 6.45 461070AC8 Sr Deb 10/15/2033 17 A- 4.00 3.79 3.84 3.89 3.87 3.58 3.59 3.61 3.80 3.80 4.26 4.26 3.86% 4.11%
Interstate Pwr & Lt 6.3 461070AD6 Sr Deb 5/1/2034 18 A- 4.00 3.79 3.84 3.89 3.87 3.58 3.59 3.61 3.78 3.78 4.25 4.27 3.85% 4.10%
Interstate Pwr & Lt 5.5 461070AE4 Sr Deb 7/15/2025 9 A- 3.18 3.09 2.98 2.86 2.86 2.44 2.57 2.64 2.76 2.76 3.35 3.44 2.91% 3.18%
KeySpan Corp. 8 49337WAC4 Nts 11/15/2030 14 A- 4.93 4.69 4.60 4.51 4.51 4.11 4.22 4.19 4.32 4.32 4.76 4.74 4.49% 4.61%
KeySpan Corp. 5.88 49337WAH3 Nts 4/1/2033 17 A- 4.93 4.74 4.64 4.54 4.52 4.53 4.54 4.45 4.70 4.70 5.06 4.88 4.69% 4.88%
KeySpan Corp 5.8 49337WAJ9 Nt 4/1/2035 19 A- 4.92 4.73 4.63 4.53 4.51 4.13 4.14 4.05 4.30 4.30 4.66 4.73 4.47% 4.56%
Oklahoma Gas & Elec Co 6.65 678858AZ4 Sr Nts 7/15/2027 11 A- 4.04 3.78 3.84 3.90 3.92 3.56 3.67 3.75 3.85 3.85 4.37 4.51 3.92% 4.24%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 4.06 3.80 4.07 4.34 4.37 4.01 4.12 4.19 4.29 4.29 4.82 4.50 4.24% 4.54%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 4.06 3.80 4.07 4.34 4.37 4.01 4.12 4.19 4.29 4.29 4.82 4.50 4.24% 4.54%
Oklahoma Gas & Elec Co 5.75 678858BF7 Sr Nts 1/15/2036 20 A- 4.53 4.32 4.35 4.37 4.26 3.92 4.19 3.99 4.18 4.18 4.64 4.61 4.29% 4.48%
Exelon Corp. 5.9 693304AG2 1st Ref Mtg 5/1/2034 18 A- 4.32 4.24 4.19 4.13 4.21 3.90 3.91 3.92 4.21 4.21 4.61 4.53 4.20% 4.45%
Exelon Corp. 5.95 693304AH0 1st Ref Mtg 10/1/2036 20 A- 4.15 3.99 3.94 3.88 3.96 3.62 3.63 3.64 3.93 3.93 4.33 4.25 3.94% 4.17%
Exelon Corp. 5.7 693304AJ6 1st Ref Mtg 3/15/2037 21 A- 4.40 4.24 4.19 4.13 4.21 3.92 3.93 3.94 4.23 4.23 4.63 4.55 4.22% 4.47%
Portland Gen Elec Co MTN-book 9.31 73651HAV3 1st Mortgage MTN 8/11/2021 5 A- 2.96 2.75 2.81 2.86 2.94 2.48 2.59 2.70 2.78 2.78 3.34 3.48 2.87% 3.20%
Public Svc Co New Hampshire Fo 5.6 744538AA7 1st Mtg Bd 10/5/2035 19 A- 4.28 4.06 4.15 4.23 4.29 3.71 3.84 3.78 3.97 3.97 4.43 4.57 4.11% 4.32%
Public Service Electric and Gas Co. 8 744567BA5 1st & Ref 6/1/2037 21 A- 4.83 4.71 4.76 4.81 4.79 4.30 4.23 4.28 4.44 4.44 4.90 4.85 4.61% 4.73%
Public Serv Elec & Gas 5 744567BB3 1st & Ref Mtg 7/1/2037 21 A- 4.73 4.61 4.66 4.71 4.69 4.20 4.13 4.18 4.44 4.44 4.90 4.84 4.54% 4.73%
Public Service Electric and Gas Co. 5 744567BB3 1st & Ref 7/1/2037 21 A- 4.73 4.61 4.66 4.71 4.69 4.20 4.13 4.18 4.44 4.44 4.90 4.84 4.54% 4.73%
Public Service Electric and Gas Co.9.25 744567CN6 1st & Ref CC 6/1/2021 5 A- 3.13 2.92 2.96 2.99 3.07 2.59 2.79 2.08 1.96 1.96 2.52 2.66 2.64% 2.38%
Public Svc Elec Gas Co Secd MT 7.04 74456QAG1 MTN Tranche # Tr 00007 11/6/2020 4 A- 3.51 3.31 3.38 3.44 3.51 3.10 3.29 3.41 3.48 3.48 4.04 4.19 3.51% 3.90%
Public Svc Elec Gas Co Secd MT 5.25 74456QAP1 Med Term Notes 7/1/2035 19 A- 3.95 3.75 3.80 3.85 3.83 3.49 3.49 3.50 3.49 3.49 3.94 4.05 3.72% 3.83%
Public Svc Elec Gas Co Secd MT 5.7 74456QAQ9 Secd Mtns, Ser D 12/1/2036 20 A- 4.02 3.82 3.83 3.83 3.81 3.51 3.42 3.42 3.66 3.66 4.12 4.03 3.76% 3.94%
Public Svc Elec Gas Co Secd MT 5.8 74456QAR7 Secured Mtn Series E Notes 5/1/2037 21 A- 4.08 3.95 4.00 4.05 4.03 3.54 3.47 3.52 3.68 3.68 4.14 4.09 3.85% 3.97%
Puget Sound Pwr & Lt 7.02 74531EAA0 Sr M-T Nts'A' 12/1/2027 11 A- 3.81 3.53 3.52 3.51 3.57 3.23 2.99 3.04 3.21 3.21 3.69 3.80 3.43% 3.57%
Puget Sound Energy 6.74 74531EAB8 Sr M-T Nts 'A' 6/15/2018 2 A- 1.99 1.91 1.95 1.99 2.06 1.68 1.73 1.84 1.86 1.86 2.15 2.07 1.92% 2.03%
Puget Sound Energy 7 74531EAC6 Sr M-T Nts 'B' 3/9/2029 13 A- 4.11 3.83 3.82 3.81 3.77 3.43 3.24 3.39 3.66 3.66 4.13 4.25 3.76% 4.01%
Puget Sound Energy 5.48 745332BU9 Sr Nts 6/1/2035 19 A- 4.19 4.01 4.07 4.13 3.98 3.62 3.59 3.57 3.75 3.75 4.22 4.27 3.93% 4.08%
Puget Sound Energy 6.72 745332BW5 Sr Nts 6/15/2036 20 A- 4.19 4.01 4.10 4.18 4.13 3.74 3.72 3.68 3.87 3.87 4.34 4.39 4.02% 4.20%
Puget Sound Energy 6.27 745332BX3 Sr(Sec)Nts 3/15/2037 21 A- 4.24 4.04 4.02 4.00 4.00 3.72 3.65 3.67 3.91 3.91 4.36 4.40 3.99% 4.22%
Southwestern Public Serv 5.6 845743BK8 Sr Nts'E' 10/1/2016 0 A- 1.22 1.35 1.36 1.36 1.80 1.42 1.35 1.46 1.41%
Southwestern Public Serv 6 845743BL6 Sr Nts'F' 10/1/2036 20 A- 4.52 4.32 4.40 4.48 4.26 3.94 3.97 3.98 4.22 4.22 4.64 4.50 4.29% 4.45%
Virginia Electric & Power Co. 6 927804FA7 Sr Nts'B' 1/15/2036 20 A- 4.05 4.13 4.06 3.99 4.02 3.68 3.62 3.61 3.90 3.90 4.28 4.24 3.96% 4.14%
Virginia Electric & Power Co. 6 927804FB5 Sr Nt 2007 Ser A 5/15/2037 21 A- 4.21 4.16 4.10 4.03 4.04 3.63 3.64 3.64 3.80 3.80 4.23 4.27 3.96% 4.10%
Virginia Electric & Power Co. 5.95 927804FC3 Sr Nt 2007 Ser B 9/15/2017 1 A- 1.37 1.42 1.35 1.28 1.27 1.11 1.18 1.15 1.38 1.38 1.49 1.60 1.33% 1.49%
Virginia Electric & Power Co. 6.35 927804FE9 Sr Nt 2007 Ser D 11/30/2037 21 A- 4.14 4.08 4.07 4.06 4.04 3.69 3.74 3.69 3.93 3.93 4.30 4.28 4.00% 4.17%
Virginia Electric & Power Co. 5.4 927804FF6 Sr Nt 2008 Ser A 4/30/2018 2 A- 1.99 1.72 1.61 1.49 1.51 1.31 1.28 1.38 1.31 1.31 1.64 1.72 1.52% 1.56%
Washington Water Power 7.53 94068VAA1 Secd MTN 5/5/2023 7 A- 3.76 3.64 3.78 3.91 3.98 3.68 3.80 4.00 3.63 3.63 4.22 4.30 3.86% 4.05%
Washington Water Power 7.39 94068VAF0 Secd Med-term Nt 5/11/2018 2 A- 3.04 2.96 2.99 3.02 3.10 2.62 2.78 2.66 2.55 2.55 2.83 2.74 2.82% 2.71%
Westar Energy, Inc. 5.15 95709TAB6 1st Mtg Bd 1/1/2017 1 A- 1.77 1.77 1.73 1.69 1.75 1.52 1.65 1.17 1.28 1.28 1.45 1.55% 1.37%
Westar Energy, Inc. 5.95 95709TAC4 1st Mtg Bd 1/1/2035 19 A- 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94 5.94% 5.94%
Westar Energy, Inc. 5.1 95709TAD2 Fixed Rt 1st Mtg Bd 7/15/2020 4 A- 2.35 2.14 2.17 2.19 2.20 1.72 1.96 2.10 1.92 1.92 2.53 2.58 2.15% 2.34%
Westar Energy, Inc. 5.88 95709TAE0 1st Mtg Bd 7/15/2036 20 A- 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87% 5.87%
Wisconsin Electric Power Company6.875 976656BL1 Deb 12/1/2095 79 A- 5.48 5.37 5.37 5.37 5.32 4.69 4.54 4.55 4.86 4.86 5.23 5.20 5.07% 5.10%
Wisconsin Electric Power 6.5 976656BP2 Deb 6/1/2028 12 A- 4.02 3.80 3.48 3.16 3.43 2.90 3.01 3.06 3.34 3.34 3.87 4.01 3.45% 3.74%
Wisconsin Electric Power 5.7 976656BZ0 Deb 12/1/2036 20 A- 4.10 3.88 3.87 3.86 3.83 3.56 3.57 3.51 3.84 3.84 4.17 4.11 3.85% 4.04%
Progress Energy, Inc. 8.62 144141BP2 1st 9/15/2021 5 BBB+ 2.60 2.30 2.20 2.10 2.19 1.77 1.82 1.93 2.58 2.58 3.09 3.23 2.37% 2.97%
Progress Energy, Inc. 5.7 144141CV8 1st 4/1/2035 19 BBB+ 4.27 4.09 4.04 3.99 4.03 3.70 3.71 3.67 3.78 3.78 4.20 4.20 3.96% 4.06%
Progress Energy, Inc. 6.3 144141CY2 1st 4/1/2038 22 BBB+ 4.21 4.03 3.98 3.93 3.97 3.64 3.65 3.61 3.82 3.82 4.24 4.24 3.93% 4.10%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nt 2/1/2017 1 BBB+ 1.84 2.02 1.99 1.96 1.90 1.64 1.73 1.92 1.64 1.64 1.50 1.66 1.79% 1.60%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nts 2/1/2017 1 BBB+ 1.84 2.02 1.99 1.96 1.90 1.64 1.73 1.92 1.64 1.64 1.50 1.66 1.79% 1.60%
Central Illinois Light 6.7 153645BA3 Sr Secd Nt 144a 6/15/2036 20 BBB+ 6.03 6.03 6.03 6.02 6.02 6.02 6.02 6.02 6.02 6.02 6.01 6.01 6.02% 6.01%
Cincinnati Gas & Electric Co. 6.9 172070BT0 Deb 6/1/2025 9 BBB+ 4.06 3.83 3.58 3.33 3.41 3.11 2.98 3.03 3.30 3.30 3.81 3.83 3.46% 3.65%
Cleco Power LLC 6.5 185508AE8 Nts 12/1/2035 19 BBB+ 4.59 4.54 4.89 5.23 5.02 4.58 4.39 4.17 4.26 4.26 4.69 4.70 4.61% 4.55%
Consumers Energy Co. 6.875 210518AT3 Sr Nts 'B' 3/1/2018 2 BBB+ 1.76 1.67 1.82 1.97 2.04 1.57 1.68 1.45 1.44 1.44 1.71 1.79 1.70% 1.65%
Consumers Energy Co. 5.15 210518CG9 1st 2/15/2017 1 BBB+ 1.30 1.38 1.27 1.15 0.89 0.98 1.05 0.96 1.05 1.05 0.60 1.45 1.09% 1.03%
Consumers Energy Co. 5.8 210518CP9 1st 9/15/2035 19 BBB+ 3.97 3.91 3.93 3.95 3.88 3.59 3.49 3.48 3.89 3.89 4.29 4.36 3.89% 4.18%
Consumers Energy Co. 5.65 210518CQ7 1st 9/15/2018 2 BBB+ 1.96 1.88 1.77 1.65 1.64 1.32 1.44 1.56 1.42 1.42 1.74 1.78 1.63% 1.65%
Consumers Energy Co. 6.12 210518CR5 1st 3/15/2019 3 BBB+ 2.00 1.83 1.76 1.69 1.47 1.07 1.31 1.40 1.49 1.49 1.87 1.97 1.61% 1.78%
Dominion Resources 6.75 257469AG1 Sr Nts 'E' 12/15/2032 16 BBB+ 5.25 5.05 5.03 5.00 5.08%
EWG-16
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Dominion Resources, Inc. (Va.) 5.95 25746UAV1 Fixed Rt Sr Nt 2005 Ser B 6/15/2035 19 BBB+ 5.00 4.88 4.79 4.70 4.66 4.19 4.20 4.17 4.35 4.35 4.65 4.71 4.55% 4.57%
Duke Energy Corp. 6 264399DK9 Sr Nts 'A' 12/1/2028 12 BBB+ 3.86 3.69 3.47 3.24 3.41 3.06 3.02 2.99 3.16 3.16 3.67 3.59 3.36% 3.47%
Duke Energy Corp. 6.45 264399ED4 Sr Nts 10/15/2032 16 BBB+ 4.29 4.06 3.99 3.91 3.84 3.61 3.47 3.50 3.77 3.77 4.19 4.18 3.88% 4.05%
Empire District Electric Co. (The) 7.2 291641AS7 1st 12/1/2016 0 BBB+ 1.63 1.65 1.68 1.71 1.80 1.60 1.76 1.92 1.72%
Enersis S.A. 7.4 29274FAB0 Nt 12/1/2016 0 BBB+ 1.60 1.99 2.01 2.03 2.28 1.95 2.23 2.91 3.10 3.10 2.32% 3.10%
Exelon Corp. 5.62 30161NAC5 Fixed Rt Sr Nt 6/15/2035 19 BBB+ 5.05 4.88 4.63 4.38 4.29 4.18 4.06 4.04 4.27 4.27 4.76 4.78 4.47% 4.60%
Florida Pwr 6.75 34110QAL2 Nts 2/1/2028 12 BBB+ 4.42 4.15 4.16 4.17 4.19 3.83 3.95 4.02 4.22 4.22 4.75 4.89 4.25% 4.62%
MidAmerican Funding 6.93 59562HAJ7 Sr Sec Bonds 3/1/2029 13 BBB+ 4.25 4.02 3.84 3.65 3.65 3.04 3.01 3.02 3.06 3.06 3.60 3.66 3.49% 3.44%
MidAmerican Energy Hldg 6.12 59562VAM9 SrBonds 4/1/2036 20 BBB+ 4.77 4.64 4.34 4.03 4.07 3.83 3.65 3.72 3.85 3.85 4.29 4.25 4.11% 4.13%
PSI Energy, Inc. 6.12 693627AY7 Deb 10/15/2035 19 BBB+ 4.36 4.40 4.27 4.14 4.03 3.69 3.70 3.71 4.00 4.00 4.46 4.52 4.11% 4.33%
PSI Energy 6.05 693627AZ4 Deb 6/15/2016 0 BBB+ 0.92 0.90 1.04 1.18 1.01%
PSEG Power LLC 8.62 69362BAJ1 Sr Nts 4/15/2031 15 BBB+ 5.95 5.81 6.05 6.29 6.50 5.90 5.66 5.52 5.62 5.62 6.30 6.42 5.97% 6.11%
Public Svc No Car 6.99 744516AA3 Sr Deb 1/15/2026 10 BBB+ 3.92 3.88 3.79 3.69 3.78 3.37 3.34 3.37 3.57 3.57 4.14 4.15 3.71% 3.95%
Public Svc No Car 7.45 744516AB1 Sr Deb 12/15/2026 10 BBB+ 4.04 3.88 3.79 3.69 3.78 3.37 3.34 3.37 3.57 3.57 4.14 4.15 3.72% 3.95%
Southern California Edison Co. 6.65 842400EB5 Nts 4/1/2029 13 BBB+ 3.98 3.72 3.79 3.86 3.88 3.46 3.47 3.45 3.64 3.64 4.08 4.20 3.76% 3.97%
Southern Power Co 6.38 843646AG5 Sr Nt Ser E 11/15/2036 20 BBB+ 6.17 6.18 6.20 6.22 6.25 6.26 6.27 6.30 6.36 6.36 6.36 6.37 6.28% 6.36%
Tampa Electric Co. 6.55 875127AV4 Nts 5/15/2036 20 BBB+ 4.39 4.23 4.21 4.18 4.11 3.90 3.84 3.78 4.06 4.06 4.50 4.49 4.15% 4.35%
Tampa Electric Co. 6.15 875127AW2 Sr Nts 5/15/2037 21 BBB+ 4.42 4.22 4.20 4.18 4.07 3.79 3.78 3.73 4.11 4.11 4.56 4.47 4.14% 4.38%
Tampa Electric Co. 6.1 875127AX0 Fixed Rt 5/15/2018 2 BBB+ 2.03 2.11 1.88 1.65 1.93 1.59 1.68 1.85 2.01 2.01 2.42 1.74 1.91% 2.06%
Union Electric 5.5 906548BY7 Sr Sec Nts 3/15/2034 18 BBB+ 4.35 4.15 4.17 4.18 4.11 3.78 3.69 3.64 3.86 3.86 4.32 4.25 4.03% 4.14%
Union Electric 5 906548CD2 Sr Sec Nts 2/1/2020 4 BBB+ 2.14 2.35 2.21 2.06 2.11 1.54 1.62 1.75 1.96 1.96 2.48 2.63 2.07% 2.36%
Union Electric 6.4 906548CE0 Sr Sec Nts 6/15/2017 1 BBB+ 1.48 1.62 1.41 1.20 1.12 1.07 1.03 1.14 1.19 1.19 1.47 1.40 1.28% 1.35%
Union Electric 6 906548CF7 Sr Sec Nts 4/1/2018 2 BBB+ 1.89 1.80 1.81 1.82 1.78 1.33 1.36 1.49 1.46 1.46 1.71 1.85 1.65% 1.67%
Union Electric 6.7 906548CG5 Sr Sec Nts 2/1/2019 3 BBB+ 1.82 2.07 1.91 1.75 1.82 1.28 1.38 1.46 1.55 1.55 1.92 2.06 1.71% 1.84%
Xcel Energy Inc. 6.5 98389BAH3 Sr Nts 7/1/2036 20 BBB+ 4.59 4.43 4.40 4.37 4.32 4.03 3.79 3.80 4.05 4.05 4.49 4.53 4.24% 4.36%
Appalachian Power Co. 5.95 037735BZ9 Sr Nts'H' 5/15/2033 17 BBB 4.94 5.46 5.20 4.94 4.87 4.54 4.39 4.33 4.28 4.28 4.62 4.60 4.70% 4.50%
Appalachian Power 5 037735CD7 Sr Nts'K' 6/1/2017 1 BBB 1.73 1.81 1.66 1.51 1.50 1.41 1.47 1.43 1.44 1.44 1.56 1.73 1.56% 1.58%
Appalachian Power 5.8 037735CE5 Sr Nts'L' 10/1/2035 19 BBB 4.74 4.65 4.64 4.63 4.51 4.25 4.23 4.25 4.31 4.31 4.72 4.59 4.49% 4.54%
Appalachian Power 6.38 037735CG0 Sr Nts'N' 4/1/2036 20 BBB 4.87 5.04 4.88 4.72 4.55 4.38 4.26 4.29 4.33 4.33 4.69 4.60 4.58% 4.54%
CMS Energy Corp. 6.55 125896BA7 Sr Nts 7/17/2017 1 BBB 1.90 1.99 1.81 1.63 1.56 1.36 1.47 1.38 1.27 1.27 1.43 0.00 1.42% 0.90%
Cleveland Electric Illuminating Co. 7.88 186108BU9 Sec Nts 'D' 11/1/2017 1 BBB 1.99 2.23 2.10 1.96 2.16 1.73 1.89 1.89 1.97 1.97 1.69 1.59 1.93% 1.75%
Commonwealth Edison 6.95 202795GX2 Nts 7/15/2018 2 BBB 2.17 2.09 2.12 2.15 2.22 1.93 2.05 2.15 2.15 2.15 2.43 2.07 2.14% 2.22%
DTE Energy Co. 6.35 233331AM9 Sr Nt 2006 Ser B 6/1/2016 0 BBB 1.20 1.27 1.38 1.48 1.33%
Dominion Resources, Inc. (Va.) 7.5 25746UAY5Enhanced Jr Sub Nt 2006 Ser A6/30/2066 50 BBB 8.98 8.97 8.96 8.94 9.00 9.12 4.09 4.01 3.99 3.99 4.05 4.05 6.51% 4.03%
Dominion Resources, Inc. (Va.) 2.58 25746UAZ2Jr Sub Nt 2006 Ser B Enhanced9/30/2066 50 BBB 4.43 4.57 4.49 4.41 4.17 4.18 4.02 3.88 4.13 4.13 4.25 4.25 4.24% 4.21%
El Paso Electric Co. 6 283677AW2 Sr Nts 5/15/2035 19 BBB 4.34 4.14 4.35 4.55 4.54 4.23 4.24 4.18 4.38 4.38 4.83 4.76 4.41% 4.66%
Empire District Electric Co. (The) 5.8 291641AZ1 Sr Nts 7/1/2035 19 BBB 5.78 5.79 5.82 5.85 5.85 5.51 5.51 5.52 5.18 5.18 5.64 5.70 5.61% 5.51%
Empire District Elec 6.7 29164RAA9 Sr Nts 11/15/2033 17 BBB 5.24 5.11 4.81 4.51 4.61 4.44 4.38 4.29 4.50 4.50 4.97 5.24 4.72% 4.90%
Energy East Corp. 6.75 29266MAE9 Nts 9/15/2033 17 BBB 5.79 5.81 5.64 5.46 5.55 5.21 5.31 5.09 5.31 5.31 5.79 5.44 5.48% 5.51%
Energy East 6.75 29266MAF6 Nt 7/15/2036 20 BBB 4.89 4.91 4.75 4.59 4.68 4.34 4.44 4.22 4.44 4.44 4.92 4.98 4.63% 4.78%
Enersis S.A. 6.6 29274FAC8 Nt 12/1/2026 10 BBB 5.94 5.94 5.94 5.93 5.93 5.93 5.92 5.92 5.91 5.91 5.91 5.90 5.92% 5.91%
Indiana Mich Pwr 6.05 454889AM8 Sr Nts'H' 3/15/2037 21 BBB 4.84 4.82 4.80 4.78 4.59 4.27 4.19 4.14 4.27 4.27 4.64 4.57 4.52% 4.49%
Kansas City Power & Light 6.05 485134BH2 Sr Nt Ser A 11/15/2035 19 BBB 4.40 4.27 4.35 4.43 4.26 4.03 4.09 4.02 4.19 4.19 4.59 4.60 4.29% 4.46%
Kansas City Power & Light 5.85 485134BJ8 Sr Nt 6/15/2017 1 BBB 1.73 1.73 1.75 1.77 1.94 1.66 1.88 1.65 1.74 1.74 1.78 1.77 1.76% 1.76%
Kentucky Power 5.62 491386AL2 Sr Nts'D' 12/1/2032 16 BBB 5.03 4.83 4.81 4.78 4.78 4.54 4.49 4.58 4.68 4.68 4.94 5.01 4.76% 4.88%
Ohio Power Co. 6.6 677415CF6 Sr Nts 'G' 2/15/2033 17 BBB 4.54 4.73 4.63 4.52 4.46 4.17 4.16 4.15 4.26 4.26 4.72 4.60 4.43% 4.53%
Ohio Power Co. 6 677415CL3 Sr Nts'K' 6/1/2016 0 BBB 1.30 1.81 1.83 1.84
PPL Energy Supply 5.7 69352JAG2 Reset PutSecs 10/15/2035 19 BBB
PPL Energy Supply 6.2 69352JAH0 Sr Nts 5/15/2016 0 BBB 8.70 8.94 8.82%
PPL Energy Supply 6 69352JAK3 Sr Nts 12/15/2036 20 BBB 16.76 16.00 13.60 11.19 12.01 12.35 10.93 11.32 10.87 10.87 11.35 11.61 12.40% 11.28%
PPL Energy Supply 6.5 69352JAL1 Sr Nts 5/1/2018 2 BBB 11.10 10.42 7.80 5.17 5.11 6.49 4.69 4.76 3.89 3.89 3.94 3.78 5.92% 3.87%
Pacific Gas & Electric Co. 6.05 694308GE1 1st 3/1/2034 18 BBB 4.34 4.21 3.91 3.61 3.71 3.54 3.48 3.39 3.60 3.60 4.07 4.04 3.79% 3.90%
Pacific Gas & Electric Co. 5.8 694308GJ0 Fixed Rt Sr Nt 3/1/2037 21 BBB 4.47 4.29 4.12 3.95 3.93 3.62 3.64 3.62 3.80 3.80 4.19 4.20 3.97% 4.06%
Pepco Holdings, Inc. 6.12 713291AP7 Nts 6/1/2017 1 BBB 3.07 3.07 1.54 2.56%
Progress Energy, Inc. 7.75 743263AE5 Sr Nts 3/1/2031 15 BBB 4.78 4.54 4.40 4.26 4.22 4.06 4.07 4.03 4.20 4.20 4.72 4.27 4.31% 4.40%
Progress Energy, Inc. 7 743263AG0 Sr Nts 10/30/2031 15 BBB 4.68 4.54 4.39 4.23 4.26 3.95 3.97 3.92 4.03 4.03 4.66 4.35 4.25% 4.35%
Public Serv, New Mexico 7.5 744499AN4 Sr Unsec Nts 'B' 8/1/2018 2 BBB 2.54 2.39 2.41 2.42 2.50 1.82 2.00 2.05 1.94 1.94 2.14 2.14 2.19% 2.07%
Public Service Co. of Oklahoma 6.15 744533BH2 Sr Nts'F' 8/1/2016 0 BBB 1.36 1.90 1.92 1.93 1.94 1.74 1.80%
Public Service Co. of Oklahoma 6.62 744533BJ8 Sr Nts 'G' 11/15/2037 21 BBB 4.94 4.73 4.79 4.85 4.82 4.53 4.39 4.38 4.53 4.53 4.64 4.60 4.64% 4.59%
Southwest'n Elec Power 5.55 845437BH4 Sr Nt Ser E 1/15/2017 1 BBB 1.57 1.52 1.44 1.36 1.43 1.18 1.16 1.47 1.28 1.28 1.44 1.38% 1.36%
WPS Resources 6.11 92931BAC0 Jr Sub Nt 12/1/2066 50 BBB 0.00 0.00 0.00 0.00 0.00 0.00 8.09 7.31 6.51 6.51 6.70 3.42 3.21% 5.54%
Wisconsin Energy Corp. 6.25 976657AH9 2007 Ser A Jr Sub Nt 5/15/2067 51 BBB 8.66 8.48 8.02 7.56 7.63 7.91 7.65 7.34 7.17 7.17 7.21 7.16 7.66% 7.18%
Cleveland Elec. Illum 5.95 186108CE4 Sr Nts 12/15/2036 20 BBB- 5.35 5.28 5.23 5.18 5.40 5.12 5.01 4.78 4.88 4.88 5.13 5.09 5.11% 5.03%
EWG-17
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Cleveland Elec. Illum 5.7 186108CF1 Sr Nts 4/1/2017 1 BBB- 2.61 2.61 2.29 1.96 1.93 1.46 1.62 1.66 1.56 1.56 1.68 1.99 1.91% 1.74%
Duquesne Light Holdings, Inc. 6.25 266233AB1 Sr Nts 8/15/2035 19 BBB- 5.59 5.59 5.59 5.58 5.51 5.22 5.23 5.20 5.24 5.24 5.71 5.70 5.45% 5.55%
NiSource Finance 5.25 65473QAQ6 Gtd Nt 9/15/2017 1 BBB- 1.63 1.62 1.82 2.02 2.11 1.94 2.15 1.66 1.70 1.70 1.84 1.95 1.85% 1.83%
NiSource Finance 5.45 65473QAR4 Gtd Nt 9/15/2020 4 BBB- 3.11 2.89 2.70 2.51 2.45 2.12 2.33 2.21 2.30 2.30 2.86 2.90 2.56% 2.69%
Ohio Edison Co. 6.88 677347CE4 Sr Nts 7/15/2036 20 BBB- 5.34 5.20 5.14 5.08 5.12 5.01 4.66 4.49 4.58 4.58 4.89 4.77 4.91% 4.75%
Pennsylvania Electric 6.625 708696BM0 Sr Nts 'C' 4/1/2019 3 BBB- 3.89 4.05 4.10 4.14 4.32 3.72 3.04 3.11 3.29 3.29 3.56 3.32 3.65% 3.39%
Constellation Energy Group, Inc. 7.6 210371AF7 Nts 4/1/2032 16 BB+ 5.18 5.01 4.81 4.60 4.49 4.38 4.11 4.09 4.28 4.28 4.78 4.74 4.56% 4.60%
FirstEnergy Corp. 7.38 337932AC1 Sr Nt Ser C 11/15/2031 15 BB+ 5.20 5.12 5.12 5.11 5.34 5.06 4.96 4.63 4.58 4.58 4.98 4.73 4.95% 4.76%
El Paso Energy Corp MTN BE 8.05 28368EAA4 MTN 10/15/2030 14 BB 8.22 8.00 7.53 7.06 7.09 6.77 6.48 6.29 6.13 6.13 6.69 6.05 6.87% 6.29%
El Paso Energy Corp MTN BE 7.75 28368EAE6 MTN-tranche # Tr 00005 1/15/2032 16 BB 8.59 8.17 7.55 6.93 7.00 6.51 6.14 5.84 5.55 5.55 5.94 5.59 6.61% 5.69%
TXU Corp. 6.5 873168AN8 Sr Nts'Q' 11/15/2024 8 D 11.44 12.29 12.28 12.26 18.35 18.43 18.32 15.17 14.82%
TXU Corp. 6.55 873168AQ1 Sr Nts'R' 11/15/2034 18 D 9.69 10.24 10.21 10.17 14.30 14.31 14.89 12.00 22.91 22.91 0.00 0.00 11.80% 7.64%
Allegheny Generating 6.88 017364AG5 Deb 9/1/2023 7 NR 6.70 6.70 6.70 6.70 6.69 6.69 6.69 6.69 6.69 6.69 6.68 6.68 6.69% 6.68%
MDU Resources Group, Inc. 5.98 552690AF6 Sr Sec Nt 12/15/2033 17 NR 5.55 5.38 5.13 4.88 4.79 4.68 4.56 4.54 4.77 4.77 5.26 5.28 4.97% 5.10%
Ohio Power Co. 6.38 677415CJ8 Sr Nts 'I' 7/15/2033 17 NR 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Orange & Rockland Utils 7 684065AU9 Deb 'G' 3/1/2029 13 NR 6.47 6.47 6.47 6.46 6.46 6.46 6.46 6.45 6.45 6.45 6.45 6.44 6.46% 6.45%
PPL Energy Supply 2.62 69352JAE7 Sr Nt Conv 5/15/2023 7 NR 0.31 0.29 0.27 0.24 0.21 0.19 0.16 0.13 0.07 0.07 0.05 0.01 0.17% 0.04%
Savannah Electric&Power 5.5 804787DJ5 Sr Nts'F' 12/15/2028 12 NR 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49% 5.49%
Sierra Pacific Resources 6.75 826428AN4 Sr Nts 8/15/2017 1 NR 5.21 5.13 5.03 4.93 4.81 4.67 4.52 4.32 3.80 3.80 3.50 3.07 4.40% 3.46%
Tennessee Valley Authority 8.25 880591BL5 Pwr Bonds '92D 4/15/2042 26 NR 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.71 7.70 7.70 7.71% 7.70%
Tennessee Valley Authority 6.235 880591CF7 Pwr Bonds '95B 7/15/2045 29 NR 5.19 5.12 5.14 5.16 5.19 5.05 5.12 5.18 5.23 5.23 5.37 5.37 5.20% 5.32%
Tennessee Valley Authority 5.98 880591CK6 Pwr Bonds '96A 4/1/2036 20 NR 3.63 3.40 3.40 3.40 3.31 2.98 2.88 2.79 3.03 3.03 3.51 3.51 3.24% 3.35%
Tennessee Valley Authority 6.15 880591CP5 Pwr Bonds '98B 1/15/2038 22 NR 3.70 3.38 3.43 3.48 3.48 3.03 2.94 2.86 3.13 3.13 3.56 3.65 3.31% 3.45%
Tennessee Valley Authority 5.88 880591CS9 Pwr Bonds '97C 4/1/2036 20 NR 3.57 3.33 3.35 3.36 3.28 2.94 2.82 2.76 3.03 3.03 3.47 3.60 3.21% 3.37%
Union Electric 7.69 906548BT8 Sub Cap Inc Sec'A' 12/15/2036 20 NR 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.42 7.42 7.42 7.42 7.42 7.43% 7.42%
276 275 275 274 272 268 268 264 263 257 257 256 254
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 3.92% 4.04%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 3.77% 3.96%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.44% 4.53%
Investment Grade (BBB- & Above) 4.39% 4.49%
Say: 3.90%
All Bonds
EWG-18
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS
VL Est
EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF Ratio
Ke
Estimate -
Cash
Flow
(Hist.
P/CF)
Ke
Estimate -
Cash
Flow
(Est.
P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
AES Corp. AES 11.87 1.10 10.79 9.27% 2.17 0.05 5.47 237.37 18.28% 0.42%
Calpine Corp. CPN 11.61 0.26 0.50 44.63 23.21 2.24% 4.31% 2.45 2.10 4.74 5.53 21.11% 18.10%
Dynegy Inc DYN 9.87 0.00 0.00
NRG Energy NRG 11.40 0.35 32.56 3.07% 2.10 5.43 18.43%
NRG Yield Inc. NYLDA 15.57 2.48 0.00 6.28 15.93% 13.68 0.00 1.14
Pattern Energy Group PEGI 20.84 0.25 83.37 1.20% 1.49 1.80 13.99 11.58 7.15% 8.64%
Vivint Solar Inc VSLR 2.95 0.15 0.00 19.67 5.08% 0.48 0.00 6.15 16.27%
Average 23.53 37.48 7.75% 4.46% 6.30 64.97 15.70% 11.39%
Median 19.67 27.89 5.08% 3.69% 5.47 8.55 17.28% 13.37%
High 44.63 83.37 15.93% 9.27% 13.99 237.37 21.11% 18.43%
Low 6.28 10.79 2.24% 1.20% 1.14 5.43 7.15% 0.42%
Say 6.00% 16.00%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
2017 Assessment Year
Industry: Exempt Wholesale Generators
EWG-19
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Tennessee Valley Authority 6.75 880591CJ9 Global Pwr Bonds'95E 11/1/2025 9 AAA 4.98 4.94 4.95 4.95 4.97 4.86 4.85 4.87 4.92 4.92 5.11 5.18 4.96% 5.07%
Tennessee Valley Authority 6.25 880591CU4 Pwr Bonds '97E 12/15/2017 1 AAA 5.69 5.70 5.73 5.75 5.77 5.78 5.81 5.85 5.89 5.89 5.92 5.95 5.81% 5.92%
Tennessee Valley Authority 7.125 880591DM1 Global Pwr Bonds '00G 5/1/2030 14 AAA 4.94 4.81 4.83 4.85 4.84 4.64 4.63 4.63 4.72 4.72 4.97 5.05 4.80% 4.91%
Tennessee Valley Authority 4.88 880591DS8 Global Pwr Bonds'01D 12/15/2016 0 AAA 4.70 4.72 4.73 4.74 4.76 4.77 4.79 4.81 4.84 4.84 4.77% 4.84%
Tennessee Valley Authority 4.7 880591DV1 Pwr Bonds\03 B" 7/15/2033 17 AAA 4.07 3.97 3.97 3.96 3.90 3.77 3.72 3.72 3.87 3.87 4.08 4.01 3.91% 3.99%
Madison Gas & Electric 7.7 557497AL8 1st 2/15/2028 12 AA- 7.64 7.63 7.64 7.64 7.64 7.63 7.63 7.64 7.64 7.64 7.65 7.66 7.64% 7.65%
Madison Gas & Elec Co MTN BE 7.12 5574A0AB3 Tranche # Tr 00002 4/1/2032 16 AA- 5.42 5.29 5.26 5.22 5.19 5.07 5.00 5.02 5.18 5.18 5.41 5.41 5.22% 5.33%
Connecticut Lt & Pwr 7.875 207597CZ6 1st & Ref D 10/1/2024 8 A+ 6.05 5.96 6.00 6.04 6.06 5.93 5.96 5.96 6.07 6.07 6.27 6.33 6.06% 6.22%
Connecticut Lt & Pwr 7.88 207597CZ6 1st Mtg Ser 94d 10/1/2024 8 A+ 6.05 5.96 6.00 6.04 6.06 5.93 5.96 5.96 6.07 6.07 6.27 6.33 6.06% 6.22%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Ref '05B 4/1/2035 19 A+ 4.75 4.75 4.75 4.74 4.72 4.56 4.58 4.45 4.55 4.55 4.81 4.84 4.67% 4.73%
Connecticut Lt & Pwr 5.62 207597DU6 1st & Rfdg Mtg Bd 2005 Ser B 4/1/2035 19 A+ 4.75 4.75 4.75 4.74 4.72 4.56 4.58 4.45 4.55 4.55 4.81 4.84 4.67% 4.73%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Ref'06A 6/1/2036 20 A+ 4.86 4.86 4.86 4.85 4.83 4.66 4.69 4.60 4.69 4.69 4.96 4.99 4.79% 4.88%
Connecticut Lt & Pwr 6.35 207597DV4 1st & Rfdg Mtg Bd 2006 Ser A 6/1/2036 20 A+ 4.86 4.86 4.86 4.85 4.83 4.66 4.69 4.60 4.69 4.69 4.96 4.99 4.79% 4.88%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Ref'07A 3/1/2017 1 A+ 5.16 5.17 5.18 5.19 5.20 5.22 5.24 5.26 5.30 5.30 5.31 5.33 5.24% 5.31%
Connecticut Lt & Pwr 5.38 207597DW2 1st & Rfdg Mtg Bd 2007 Ser A 3/1/2017 1 A+ 5.16 5.17 5.18 5.19 5.20 5.22 5.24 5.26 5.30 5.30 5.31 5.33 5.24% 5.31%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Ref'07B 3/1/2037 21 A+ 4.73 4.74 4.73 4.72 4.71 4.53 4.55 4.47 4.56 4.56 4.90 4.92 4.68% 4.79%
Connecticut Lt & Pwr 5.75 207597DX0 1st & Rfdg Mtg Bd 2007 Ser B 3/1/2037 21 A+ 4.73 4.74 4.73 4.72 4.71 4.53 4.55 4.47 4.56 4.56 4.90 4.92 4.68% 4.79%
AmerenEnergy Generating 5.1 02360FAA4 Sr Sec Nts 10/1/2019 3 A 4.62 4.65 4.65 4.64 4.66 4.59 4.64 4.65 4.64 4.64 4.70 4.73 4.65% 4.69%
AmerenEnergy Generating 5.3 02360FAB2 Sr Sec Nts 8/1/2037 21 A 4.51 4.40 4.46 4.51 4.49 4.23 4.21 4.24 4.35 4.35 4.63 4.50 4.41% 4.49%
AmerenEnergy Generating 7.95 02360XAJ6 Sr Nts 'F' 6/1/2032 16 A 17.66 21.48 20.38 19.27 20.38 21.48 20.38 20.64 19.87 19.87 23.04 21.78 20.52% 21.56%
Carolina Power & Light 8.62 144141BP2 1st Mtg 9/15/2021 5 A 6.56 6.49 6.49 6.48 6.53 6.43 6.47 6.53 6.76 6.76 6.92 6.99 6.62% 6.89%
Carolina Power & Light 5.7 144141CV8 1st Mtg Bd 4/1/2035 19 A 4.81 4.70 4.68 4.65 4.68 4.49 4.50 4.48 4.55 4.55 4.78 4.79 4.64% 4.71%
Carolina Power & Light 6.3 144141CY2 1st Mtg Bd 4/1/2038 22 A 4.85 4.74 4.71 4.68 4.71 4.51 4.52 4.50 4.63 4.63 4.89 4.90 4.69% 4.81%
Detroit Edison Co. 6.35 250847DU1 Sr Nts 10/15/2032 16 A 5.14 5.02 4.97 4.91 4.90 4.72 4.79 4.77 4.89 4.89 5.10 5.14 4.94% 5.04%
Detroit Edison Co 5.45 250847DZ0 Sr(Sec)Nts'BR' 2/15/2035 19 A 4.71 4.67 4.59 4.51 4.50 4.32 4.38 4.36 4.47 4.47 4.67 4.70 4.53% 4.61%
Detroit Edison Co 5.7 250847EA4 Sr(Sec)Nts'E' 10/1/2037 21 A 4.69 4.57 4.60 4.62 4.61 4.40 4.32 4.30 4.44 4.44 4.71 4.62 4.53% 4.59%
Detroit Edison Co 6.62 250847EB2 Sr Nt 2006 Ser A 6/1/2036 20 A 4.98 4.84 4.82 4.79 4.78 4.58 4.65 4.64 4.76 4.76 5.00 5.04 4.80% 4.93%
Duke Energy Carolinas Llc 6.1 26442CAA2 Sr Nt 6/1/2037 21 A 5.04 4.90 4.84 4.78 4.73 4.59 4.57 4.58 4.74 4.74 4.99 4.97 4.79% 4.90%
Duke Energy Carolinas Llc 6 26442CAB0 1st & Rfdg Mtg Bd 1/15/2038 22 A 4.72 4.68 4.61 4.54 4.60 4.44 4.39 4.41 4.58 4.58 4.82 4.86 4.60% 4.75%
Duke Energy Carolinas Llc 5.25 26442CAC8 1st & Rfdg Mtg Bd 1/15/2018 2 A 4.91 4.89 4.91 4.92 4.94 4.92 4.97 4.98 5.01 5.01 5.03 5.06 4.96% 5.03%
Duke Energy Carolinas Llc 5.1 26442CAD6 1st & Rfdg Mtg Bd Ser B 4/15/2018 2 A 4.74 4.75 4.75 4.74 4.77 4.76 4.77 4.79 4.82 4.82 4.87 4.88 4.79% 4.86%
Duke Energy Carolinas Llc 6.05 26442CAE4 1st & Rfdg Mtg Ser B 4/15/2038 22 A 4.74 4.71 4.62 4.53 4.55 4.42 4.37 4.42 4.55 4.55 4.84 4.81 4.59% 4.73%
Florida Power & Light 5.85 341081EP8 1st 2/1/2033 17 A 4.80 4.69 4.70 4.71 4.66 4.55 4.55 4.52 4.65 4.65 4.86 4.85 4.68% 4.79%
Florida Power & Light 5.62 341081EQ6 First Mtg Bds 4/1/2034 18 A 4.70 4.58 4.56 4.54 4.48 4.33 4.31 4.30 4.45 4.45 4.67 4.65 4.50% 4.59%
Florida Power & Light 5.625 341081EQ6 1st 4/1/2034 18 A 4.70 4.58 4.56 4.54 4.48 4.33 4.31 4.30 4.45 4.45 4.67 4.65 4.50% 4.59%
Florida Power & Light 5.95 341081ER4 1st 10/1/2033 17 A 4.70 4.59 4.60 4.61 4.61 4.50 4.50 4.47 4.55 4.55 4.79 4.78 4.60% 4.71%
Florida Power & Light 4.95 341081ET0 1st 6/1/2035 19 A 4.38 4.31 4.28 4.24 4.21 4.06 4.00 4.02 4.20 4.20 4.42 4.33 4.22% 4.32%
Florida Power & Light 5.4 341081EU7 1st Mtg Bd 9/1/2035 19 A 4.54 4.43 4.49 4.54 4.42 4.26 4.22 4.23 4.34 4.34 4.58 4.61 4.42% 4.51%
Florida Power & Light 5.65 341081EV5 1st 2/1/2037 21 A 4.58 4.46 4.45 4.43 4.44 4.30 4.25 4.26 4.40 4.40 4.65 4.68 4.44% 4.58%
Florida Power & Light 6.2 341081EX1 1st 6/1/2036 20 A 4.84 4.72 4.75 4.77 4.66 4.50 4.46 4.49 4.63 4.63 4.88 4.90 4.69% 4.80%
Florida Power & Light 5.85 341081EY9 1st 5/1/2037 21 A 4.66 4.54 4.65 4.75 4.59 4.36 4.37 4.32 4.49 4.49 4.70 4.70 4.55% 4.63%
Florida Power Corp. 5.9 341099CB3 1st 3/1/2033 17 A 5.01 4.90 4.98 5.05 4.88 4.68 4.69 4.71 4.88 4.88 5.07 5.11 4.90% 5.02%
Florida Power Corp. 5.8 341099CG2 1st Mtg Bd 9/15/2017 1 A 5.44 5.43 5.45 5.46 5.48 5.48 5.51 5.53 5.58 5.58 5.60 5.62 5.51% 5.60%
Florida Power Corp. 6.35 341099CH0 1st 9/15/2037 21 A 4.84 4.83 4.77 4.70 4.64 4.48 4.48 4.50 4.67 4.67 4.90 4.94 4.70% 4.84%
Georgia Power Co. 5.75 373334FS5 Sr Nts 'N' 4/15/2023 7 A 4.96 4.89 4.92 4.94 4.95 4.86 4.90 4.89 4.93 4.93 5.09 5.12 4.95% 5.05%
Georgia Power Co. 5.8 373334FZ9 Sr Nts'Y' 4/15/2035 19 A 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80 5.80% 5.80%
Georgia Power Co. 5.65 373334GC9 Sr Nt Ser 2007a 3/1/2037 21 A 5.03 4.88 4.85 4.82 4.71 4.54 4.52 4.47 4.61 4.61 4.87 4.91 4.74% 4.80%
Georgia Power Co. 5.65 373334GC9 Sr Nts'07A 3/1/2037 21 A 5.03 4.88 4.85 4.82 4.71 4.54 4.52 4.47 4.61 4.61 4.87 4.91 4.74% 4.80%
Georgia Power Co. 5.7 373334GE5 Sr Nts'07B 6/1/2017 1 A 5.38 5.43 5.44 5.44 5.45 5.48 5.48 5.50 5.55 5.55 5.57 5.59 5.49% 5.57%
Gulf Power Co. 5.65 402479BW8 Sr Nts'L' 9/1/2035 19 A 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.65% 5.65%
Gulf Power Co. 5.3 402479BX6 Sr Nts'M' 12/1/2016 0 A 5.12 5.13 5.15 5.17 5.19 5.20 5.22 5.24 5.28 5.28 5.20% 5.28%
MidAmerican Energy Co. 5.95 595620AG0 Sr Nts 7/15/2017 1 A 5.60 5.60 5.62 5.64 5.66 5.67 5.67 5.70 5.75 5.75 5.77 5.80 5.69% 5.77%
MidAmerican Energy Co 5.8 59562EAH8 MTN-tranche # Tr 00008 10/15/2036 20 A 4.75 4.63 4.60 4.57 4.55 4.41 4.39 4.35 4.56 4.56 4.80 4.81 4.58% 4.72%
Mississippi Power Co. 5.4 605417BT0 Sr Nts'G' 7/1/2035 19 A 5.99 5.81 5.64 5.47 5.42 5.25 5.10 5.11 5.24 5.24 5.49 5.49 5.44% 5.41%
Nevada Power 6.75 641423BU1Gen & Refunding Mtg Nt Ser R M7/1/2037 21 A 5.17 5.06 5.02 4.97 4.96 4.86 4.78 4.82 4.87 4.87 5.15 5.15 4.97% 5.06%
Northern Sts Pwr (Minn) 7.125 665772BN8 1st Mtg Bd 7/1/2025 9 A 5.37 5.28 5.32 5.36 5.30 5.17 5.23 5.21 5.29 5.29 5.49 5.55 5.32% 5.44%
Northern Sts Pwr (Minn) 6.5 665772BQ1 1st Mtg Bd 3/1/2028 12 A 5.27 5.16 5.20 5.23 5.08 4.92 4.98 4.95 5.03 5.03 5.26 5.33 5.12% 5.21%
Northern Sts Pwr (Minn) 5.25 665772CA5 1st Mtg Bd 7/15/2035 19 A 4.47 4.40 4.41 4.42 4.30 4.19 4.17 4.16 4.28 4.28 4.53 4.54 4.35% 4.45%
Northern Sts Pwr (Minn) 6.2 665772CC1 1st Mtg 7/1/2037 21 A 4.76 4.71 4.64 4.56 4.63 4.50 4.36 4.42 4.51 4.51 4.75 4.79 4.59% 4.68%
Oncor Electric Delivery 7.25 68233DAP2 Sr Sec Nts 1/15/2033 17 A 5.65 5.53 5.45 5.36 5.22 5.08 5.02 5.02 5.15 5.15 5.36 5.29 5.27% 5.27%
Oncor Electric Delivery 7 68233DAR8 Deb 9/1/2022 6 A 5.78 5.74 5.67 5.60 5.61 5.49 5.53 5.52 5.55 5.55 5.71 5.77 5.63% 5.68%
Oncor Electric Delivery 7 68233DAT4 Sr Sec Nts 5/1/2032 16 A 5.55 5.49 5.43 5.36 5.23 5.03 4.99 4.97 5.08 5.08 5.31 5.18 5.22% 5.19%
PacifiCorp 7.7 695114BT4 1st 11/15/2031 15 A 5.47 5.32 5.22 5.11 5.15 4.94 5.01 5.01 5.11 5.11 5.38 5.35 5.18% 5.28%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-20
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
PacifiCorp 5.9 695114BX5 1st 8/15/2034 18 A 4.99 4.92 4.92 4.91 4.90 4.79 4.65 4.64 4.76 4.76 4.95 4.94 4.84% 4.88%
PacifiCorp 5.25 695114BZ0 1st 6/15/2035 19 A 4.55 4.48 4.49 4.50 4.49 4.33 4.27 4.26 4.40 4.40 4.59 4.58 4.45% 4.52%
PacifiCorp 6.1 695114CB2 1st 8/1/2036 20 A 4.89 4.78 4.77 4.75 4.70 4.52 4.53 4.54 4.65 4.65 4.90 4.86 4.71% 4.80%
PacifiCorp 5.75 695114CD8 1st 4/1/2037 21 A 4.81 4.71 4.64 4.56 4.55 4.39 4.37 4.36 4.50 4.50 4.76 4.71 4.57% 4.66%
Potomac Electric Power 5.75 737679CY4 Sr Nts 4/15/2034 18 A 5.18 5.08 2.54 4.27%
Potomac Electric Power 5.4 737679CZ1 Sr Nts 6/1/2035 19 A 5.04 4.94 4.82 4.70 4.68 4.57 4.48 4.51 4.57 4.57 4.79 4.87 4.71% 4.74%
Sierra Pacific Power 6.75 826418BE4 Gen & Refunding Mtg Nt Ser P 7/1/2037 21 A 5.29 5.06 5.08 5.09 4.91 4.70 4.71 4.72 4.85 4.85 5.14 5.11 4.96% 5.03%
South Carolina Electric & Gas Co. 6.62 837004BV1 1st 2/1/2032 16 A 5.34 5.23 5.16 5.09 5.08 5.05 4.96 4.93 5.07 5.07 5.31 5.15 5.12% 5.18%
South Carolina Electric & Gas Co. 5.8 837004BW9 1st 1/15/2033 17 A 4.99 4.87 4.87 4.87 4.86 4.68 4.68 4.64 4.80 4.80 5.05 4.90 4.83% 4.92%
South Carolina Electric & Gas Co. 5.3 837004BX7 1st 5/15/2033 17 A 4.74 4.63 4.63 4.62 4.61 4.44 4.44 4.41 4.57 4.57 4.81 4.66 4.59% 4.68%
South Carolina Electric & Gas Co. 5.25 837004BY5 1st 11/1/2018 2 A 4.82 4.82 4.82 4.81 4.84 4.82 4.84 4.86 4.89 4.89 4.91 4.94 4.85% 4.91%
South Carolina Electric & Gas Co. 5.25 837004BZ2 1st 3/1/2035 19 A 4.86 4.74 4.70 4.66 4.65 4.57 4.54 4.45 4.61 4.61 4.79 4.77 4.66% 4.72%
South Carolina El & Gas 6.25 837004CA6 1st Mtg Bd 7/1/2036 20 A 5.24 5.11 5.07 5.02 5.01 4.93 4.90 4.80 4.98 4.98 5.17 5.15 5.03% 5.10%
Southern California Edison Co. 6 842400ES8 1st & Ref '04B 1/15/2034 18 A 4.81 4.77 4.70 4.62 4.65 4.53 4.51 4.50 4.61 4.61 4.84 4.87 4.67% 4.77%
Southern California Edison Co. 5.55 842400EZ2 1st & Ref'05B 1/15/2036 20 A 4.64 4.62 4.56 4.49 4.43 4.42 4.33 4.33 4.39 4.39 4.67 4.61 4.49% 4.56%
Southern California Edison Co. 5.35 842400FA6 1st & Ref'05E 7/15/2035 19 A 4.61 4.54 4.56 4.57 4.43 4.28 4.28 4.29 4.34 4.34 4.60 4.58 4.45% 4.51%
Southern California Edison Co. 5.62 842400FC2 1st & Ref'06A 2/1/2036 20 A 4.68 4.59 4.58 4.56 4.45 4.37 4.35 4.35 4.45 4.45 4.71 4.70 4.52% 4.62%
Southern California Edison Co. 5.55 842400FF5 1st & Ref'06E 1/15/2037 21 A 4.64 4.60 4.53 4.46 4.48 4.36 4.27 4.26 4.40 4.40 4.64 4.66 4.48% 4.57%
Wisconsin Power & Light Co. 6.25 976826BD8 Deb 7/31/2034 18 A 4.95 4.83 4.87 4.90 4.87 4.71 4.71 4.63 4.72 4.72 5.01 5.00 4.83% 4.91%
Wisconsin Public Service 7.125 976843AX0 1st 7/1/2023 7 A 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12 7.12% 7.12%
Wisconsin Public Service 5.55 976843BE1 Sr(Sec)Nts 12/1/2036 20 A 4.75 4.63 4.63 4.62 4.64 4.47 4.42 4.35 4.44 4.44 4.64 4.66 4.56% 4.58%
Alabama Power Co. 5.5 010392DZ8 Sr Nts 'Q' 10/15/2017 1 A- 5.18 5.21 5.21 5.21 5.22 5.22 5.25 5.27 5.28 5.28 5.30 5.32 5.25% 5.30%
Alabama Power Co. 5.88 010392EB0 Sr Nts 'S' 12/1/2022 6 A- 5.03 4.97 4.96 4.94 4.97 4.86 4.87 4.89 4.91 4.91 5.08 5.12 4.96% 5.04%
Alabama Power Co. 5.7 010392EC8 Sr Nts 'T' 2/15/2033 17 A- 4.85 4.74 4.71 4.68 4.70 4.62 4.59 4.55 4.69 4.69 4.96 4.83 4.72% 4.83%
Alabama Power Co. 5.6 010392EE4 Sr Nts'V' 3/15/2033 17 A- 5.03 5.06 4.89 4.72 4.73 4.57 4.55 4.53 4.65 4.65 4.92 4.87 4.76% 4.81%
Alabama Power Co. 5.12 010392EK0 Sr Nts 'Z' 2/15/2019 3 A- 4.74 4.73 4.75 4.76 4.77 4.74 4.77 4.79 4.76 4.76 4.81 4.83 4.77% 4.80%
Alabama Power Co. 5.55 010392EW4 Sr Nts'07A 2/1/2017 1 A- 5.33 5.35 5.37 5.38 5.40 5.42 5.44 5.45 5.49 5.49 5.50 5.53 5.43% 5.51%
Alabama Power Co. 6.12 010392EZ7 Sr Nts'08A 5/15/2038 22 A- 4.99 4.88 4.87 4.86 4.79 4.67 4.59 4.55 4.71 4.71 4.95 4.92 4.79% 4.86%
Arizona Public Service 5.625 040555CF9 Nts 5/15/2033 17 A- 4.90 4.79 4.80 4.81 4.74 4.59 4.53 4.48 4.61 4.61 4.86 4.85 4.71% 4.77%
Arizona Public Service 5.5 040555CH5 Nts 9/1/2035 19 A- 4.69 4.57 4.59 4.60 4.58 4.42 4.35 4.33 4.44 4.44 4.70 4.70 4.53% 4.61%
Arizona Public Service 6.25 040555CJ1 Nt 8/1/2016 0 A- 6.10 6.12 6.14 6.16 6.19 6.22 6.16%
Arizona Public Service 6.88 040555CK8 Nts 8/1/2036 20 A- 5.22 5.12 5.13 5.14 5.08 4.90 4.79 4.76 4.95 4.95 5.19 5.18 5.03% 5.11%
Avista Corp. 5.45 05379BAH0 1st 12/1/2019 3 A- 5.07 5.06 5.08 5.10 5.06 5.02 5.05 5.07 5.02 5.02 5.09 5.11 5.06% 5.07%
Avista Corp. 5.45 05379BAH0 1st Mtg Bd 12/1/2019 3 A- 5.07 5.06 5.08 5.10 5.06 5.02 5.05 5.07 5.02 5.02 5.09 5.11 5.06% 5.07%
Avista Corp. 6.25 05379BAK3 1st Mtg Bd 12/1/2035 19 A- 4.91 4.84 4.97 5.09 5.02 4.91 4.91 4.90 4.95 4.95 5.21 5.20 4.99% 5.12%
Avista Corp. 5.7 05379BAM9 1st Mtg Bd 7/1/2037 21 A- 4.78 4.70 4.80 4.90 4.82 4.67 4.71 4.69 4.78 4.78 5.06 5.02 4.81% 4.95%
CenterPoint Energy Houston 6.95 15189XAD0 Gen Mtge'K2' 3/15/2033 17 A- 5.15 5.13 5.11 5.09 5.04 4.87 4.87 4.83 5.03 5.03 5.28 5.23 5.06% 5.18%
CenterPoint Energy Houston 5.6 15189XAH1 Gen Mtge'L2' 7/1/2023 7 A- 4.76 4.88 4.89 4.90 4.85 4.77 4.81 4.81 4.78 4.78 4.94 4.99 4.85% 4.90%
CenterPoint Energy Res 6.25 15189YAD8 Sr Nts 2/1/2037 21 A- 5.71 5.59 5.52 5.44 5.33 5.28 5.21 5.24 5.29 5.29 5.42 5.52 5.40% 5.41%
Commonwealth Edison 5.875 202795HG8 1st Ser 100 2/1/2033 17 A- 4.90 4.79 4.76 4.73 4.69 4.52 4.52 4.53 4.69 4.69 4.86 4.90 4.72% 4.82%
Commonwealth Edison 5.9 202795HK9 1st Ser 103 3/15/2036 20 A- 4.84 4.72 4.70 4.67 4.60 4.44 4.41 4.45 4.55 4.55 4.82 4.82 4.63% 4.73%
Commonwealth Edison 5.95 202795HN3 1st Ser 104 8/15/2016 0 A- 5.79 5.82 5.84 5.86 5.88 5.91 5.85%
Consolidated Edison, Inc. 5.88 209111EB5 Deb '03A 4/1/2033 17 A- 4.96 4.90 4.88 4.86 4.81 4.70 4.65 4.62 4.75 4.75 4.98 4.98 4.82% 4.90%
Consolidated Edison, Inc. 5.7 209111EF6 Deb'04B 2/1/2034 18 A- 4.96 4.84 4.84 4.83 4.84 4.71 4.70 4.63 4.75 4.75 4.91 4.92 4.81% 4.86%
Consolidated Edison, Inc. 5.3 209111EH2 Deb '05A 3/1/2035 19 A- 4.62 4.57 4.54 4.51 4.49 4.34 4.36 4.36 4.46 4.46 4.67 4.63 4.50% 4.59%
Consolidated Edison, Inc. 5.25 209111EJ8 Deb '05B 7/1/2035 19 A- 4.82 4.83 4.79 4.75 4.75 4.50 4.44 4.36 4.44 4.44 4.68 4.67 4.62% 4.60%
Consolidated Edison, Inc. 5.85 209111EL3 Deb'06A 3/15/2036 20 A- 4.79 4.80 4.76 4.72 4.72 4.52 4.46 4.50 4.62 4.62 4.87 4.86 4.69% 4.78%
Consolidated Edison, Inc. 6.2 209111EM1 Deb'06B 6/15/2036 20 A- 4.98 4.96 4.95 4.93 4.91 4.73 4.62 4.62 4.77 4.77 4.90 4.95 4.84% 4.87%
Consolidated Edison, Inc. 5.5 209111EN9 Deb'06C 9/15/2016 0 A- 5.34 5.37 5.39 5.40 5.42 5.44 5.46 5.40%
Consolidated Edison, Inc. 5.3 209111EP4 Deb'06D 12/1/2016 0 A- 5.12 5.16 5.17 5.17 5.18 5.20 5.22 5.24 5.28 5.28 5.20% 5.28%
Consolidated Edison, Inc. 5.7 209111EQ2 Deb'06E 12/1/2036 20 A- 4.81 4.68 4.68 4.67 4.67 4.50 4.49 4.44 4.59 4.59 4.79 4.79 4.64% 4.72%
Consolidated Edison, Inc. 6.3 209111ES8 Deb'07A 8/15/2037 21 A- 4.98 4.98 4.98 4.98 4.90 4.72 4.58 4.61 4.72 4.72 4.95 4.90 4.84% 4.86%
Consumers Energy Co. 5.5 210518CE4 1st 'P' 8/15/2016 0 A- 5.37 5.39 5.41 5.42 5.44 5.46 5.41%
Consumers Energy Co. 5.65 210518CL8 1st 4/15/2020 4 A- 4.95 4.92 4.95 4.98 4.97 4.92 4.92 4.98 5.01 5.01 5.11 5.13 4.99% 5.08%
Entergy Arkansas 6.38 29364DAK6 1st 11/1/2034 18 A- 6.37 6.37 6.37 6.37 6.37 6.37 6.38 6.38 6.38 6.38 6.38 6.38 6.38% 6.38%
Entergy Arkansas 5.66 29364DAL4 1st 2/1/2025 9 A- 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66 5.66% 5.66%
Entergy Gulf States 6.18 29364LAT9 1st 3/1/2035 19 A- 6.16 6.23 6.21 6.19 6.17 6.18 6.18 6.18 6.18 6.18 6.18 6.18 6.19% 6.18%
Entergy Mississippi 6.25 29364NAL2 1st 4/1/2034 18 A- 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10 6.10% 6.10%
Entergy New Orleans 5.65 29364PAJ2 1st 9/10/2029 13 A- 5.63 5.68 5.70 5.71 5.75 5.65 5.65 5.65 5.65 5.65 5.65 5.65 5.67% 5.65%
Entergy New Orleans 5.6 29364PAK9 1st 9/1/2024 8 A- 5.58 5.62 5.63 5.63 5.65 5.60 5.60 5.60 5.60 5.60 5.60 5.60 5.61% 5.60%
Idaho Pwr 6 45138LAL7 Sec M-T Nts'D' 11/15/2032 16 A- 5.13 5.02 4.98 4.93 4.90 4.80 4.78 4.71 4.85 4.85 5.12 4.97 4.92% 4.98%
Idaho Pwr 5.5 45138LAN3 Sec M-T Nts 'E' 4/1/2033 17 A- 4.95 4.85 4.88 4.91 4.77 4.68 4.69 4.69 4.73 4.73 4.95 4.85 4.81% 4.84%
Idaho Pwr 5.5 45138LAP8 Sec M-T Nts'E' 3/15/2034 18 A- 4.96 4.86 4.91 4.95 4.77 4.57 4.58 4.47 4.60 4.60 4.82 4.83 4.74% 4.75%
EWG-21
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Idaho Pwr 5.875 45138LAQ6 Sec M-T Nts'E' 8/15/2034 18 A- 5.04 4.99 4.96 4.92 4.86 4.88 4.96 4.61 4.77 4.77 5.32 5.03 4.93% 5.04%
Idaho Pwr 5.3 45138LAR4 Sec M-T Nts'F' 1/4/1900 -116 A- 4.76 4.64 4.68 4.72 4.71 4.45 4.45 4.40 4.57 4.57 4.80 4.78 4.63% 4.72%
Idaho Pwr Co 1st Mtg Secd MTN 6.3 45138LAS2 Secd MTN Ser F 6/15/2037 21 A- 5.05 4.92 4.86 4.80 4.73 4.56 4.57 4.56 4.76 4.76 5.00 5.04 4.80% 4.93%
Interstate Pwr & Lt 6.45 461070AC8 Sr Deb 10/15/2033 17 A- 4.93 4.81 4.85 4.88 4.87 4.71 4.72 4.74 4.85 4.85 5.11 5.11 4.87% 5.02%
Interstate Pwr & Lt 6.3 461070AD6 Sr Deb 5/1/2034 18 A- 4.86 4.74 4.78 4.81 4.80 4.64 4.65 4.67 4.77 4.77 5.03 5.05 4.80% 4.95%
Interstate Pwr & Lt 5.5 461070AE4 Sr Deb 7/15/2025 9 A- 4.62 4.60 4.57 4.53 4.54 4.41 4.46 4.49 4.54 4.54 4.74 4.77 4.57% 4.68%
KeySpan Corp. 8 49337WAC4 Nts 11/15/2030 14 A- 6.06 5.93 5.89 5.84 5.85 5.64 5.70 5.69 5.78 5.78 6.02 6.02 5.85% 5.94%
KeySpan Corp. 5.88 49337WAH3 Nts 4/1/2033 17 A- 5.30 5.19 5.14 5.08 5.07 5.08 5.09 5.04 5.18 5.18 5.39 5.29 5.17% 5.29%
KeySpan Corp 5.8 49337WAJ9 Nt 4/1/2035 19 A- 5.23 5.12 5.06 5.00 4.99 4.77 4.78 4.73 4.88 4.88 5.09 5.13 4.97% 5.03%
Oklahoma Gas & Elec Co 6.65 678858AZ4 Sr Nts 7/15/2027 11 A- 5.37 5.26 5.30 5.33 5.34 5.19 5.25 5.29 5.34 5.34 5.58 5.64 5.35% 5.52%
Oklahoma Gas & Elec Co 6.5 678858BC4 Sr Nt 4/15/2028 12 A- 5.27 5.15 5.29 5.42 5.43 5.27 5.33 5.37 5.42 5.42 5.67 5.53 5.38% 5.54%
Oklahoma Gas & Elec Co 5.75 678858BF7 Sr Nts 1/15/2036 20 A- 4.96 4.83 4.85 4.87 4.80 4.60 4.77 4.65 4.77 4.77 5.04 5.03 4.83% 4.95%
Exelon Corp. 5.9 693304AG2 1st Ref Mtg 5/1/2034 18 A- 4.92 4.88 4.85 4.82 4.87 4.70 4.71 4.71 4.88 4.88 5.11 5.07 4.87% 5.02%
Exelon Corp. 5.95 693304AH0 1st Ref Mtg 10/1/2036 20 A- 4.77 4.67 4.64 4.61 4.66 4.46 4.47 4.48 4.66 4.66 4.90 4.85 4.65% 4.80%
Exelon Corp. 5.7 693304AJ6 1st Ref Mtg 3/15/2037 21 A- 4.84 4.74 4.71 4.68 4.73 4.55 4.56 4.57 4.75 4.75 5.00 4.95 4.74% 4.90%
Portland Gen Elec Co MTN-book 9.31 73651HAV3 1st Mortgage MTN 8/11/2021 5 A- 7.04 6.99 7.04 7.08 7.13 7.02 7.07 7.14 7.21 7.21 7.40 7.47 7.15% 7.36%
Public Svc Co New Hampshire Fo 5.6 744538AA7 1st Mtg Bd 10/5/2035 19 A- 4.77 4.64 4.69 4.74 4.78 4.45 4.52 4.49 4.61 4.61 4.87 4.96 4.68% 4.81%
Public Service Electric and Gas Co. 8 744567BA5 1st & Ref 6/1/2037 21 A- 5.64 5.56 5.60 5.63 5.62 5.31 5.27 5.30 5.42 5.42 5.72 5.69 5.51% 5.61%
Public Serv Elec & Gas 5 744567BB3 1st & Ref Mtg 7/1/2037 21 A- 4.83 4.75 4.78 4.81 4.80 4.50 4.46 4.49 4.65 4.65 4.93 4.90 4.71% 4.83%
Public Service Electric and Gas Co. 5 744567BB3 1st & Ref 7/1/2037 21 A- 4.83 4.75 4.78 4.81 4.80 4.50 4.46 4.49 4.65 4.65 4.93 4.90 4.71% 4.83%
Public Service Electric and Gas Co.9.25 744567CN6 1st & Ref CC 6/1/2021 5 A- 7.12 7.08 7.12 7.15 7.20 7.08 7.16 6.99 7.02 7.02 7.19 7.26 7.12% 7.16%
Public Svc Elec Gas Co Secd MT 7.04 74456QAG1 MTN Tranche # Tr 00007 11/6/2020 4 A- 6.10 6.06 6.09 6.12 6.15 6.07 6.13 6.17 6.21 6.21 6.35 6.39 6.17% 6.32%
Public Svc Elec Gas Co Secd MT 5.25 74456QAP1 Med Term Notes 7/1/2035 19 A- 4.47 4.35 4.38 4.41 4.40 4.22 4.23 4.23 4.23 4.23 4.48 4.54 4.35% 4.42%
Public Svc Elec Gas Co Secd MT 5.7 74456QAQ9 Secd Mtns, Ser D 12/1/2036 20 A- 4.61 4.49 4.50 4.50 4.49 4.32 4.27 4.28 4.42 4.42 4.69 4.64 4.47% 4.58%
Public Svc Elec Gas Co Secd MT 5.8 74456QAR7 Secured Mtn Series E Notes 5/1/2037 21 A- 4.66 4.59 4.62 4.65 4.64 4.36 4.32 4.35 4.45 4.45 4.73 4.70 4.54% 4.63%
Puget Sound Pwr & Lt 7.02 74531EAA0 Sr M-T Nts'A' 12/1/2027 11 A- 5.38 5.26 5.27 5.27 5.30 5.16 5.06 5.09 5.19 5.19 5.40 5.46 5.25% 5.35%
Puget Sound Energy 6.74 74531EAB8 Sr M-T Nts 'A' 6/15/2018 2 A- 6.07 6.08 6.11 6.13 6.16 6.14 6.17 6.20 6.25 6.25 6.30 6.31 6.18% 6.29%
Puget Sound Energy 7 74531EAC6 Sr M-T Nts 'B' 3/9/2029 13 A- 5.42 5.29 5.29 5.29 5.28 5.12 5.04 5.12 5.26 5.26 5.49 5.55 5.28% 5.43%
Puget Sound Energy 5.48 745332BU9 Sr Nts 6/1/2035 19 A- 4.69 4.58 4.62 4.66 4.57 4.37 4.36 4.35 4.46 4.46 4.72 4.75 4.55% 4.64%
Puget Sound Energy 6.72 745332BW5 Sr Nts 6/15/2036 20 A- 5.00 4.89 4.95 5.00 4.97 4.74 4.74 4.72 4.83 4.83 5.12 5.16 4.91% 5.04%
Puget Sound Energy 6.27 745332BX3 Sr(Sec)Nts 3/15/2037 21 A- 4.90 4.77 4.76 4.75 4.75 4.59 4.55 4.57 4.72 4.72 4.99 5.02 4.76% 4.91%
Southwestern Public Serv 5.6 845743BK8 Sr Nts'E' 10/1/2016 0 A- 5.44 5.46 5.48 5.50 5.52 5.54 5.55 5.58 5.51%
Southwestern Public Serv 6 845743BL6 Sr Nts'F' 10/1/2036 20 A- 5.01 4.89 4.94 4.99 4.86 4.67 4.69 4.70 4.85 4.85 5.10 5.02 4.88% 4.99%
Virginia Electric & Power Co. 6 927804FA7 Sr Nts'B' 1/15/2036 20 A- 4.74 4.79 4.75 4.71 4.73 4.54 4.51 4.51 4.68 4.68 4.90 4.88 4.70% 4.82%
Virginia Electric & Power Co. 6 927804FB5 Sr Nt 2007 Ser A 5/15/2037 21 A- 4.80 4.77 4.74 4.70 4.70 4.46 4.47 4.47 4.57 4.57 4.84 4.86 4.66% 4.76%
Virginia Electric & Power Co. 5.95 927804FC3 Sr Nt 2007 Ser B 9/15/2017 1 A- 5.54 5.56 5.58 5.59 5.61 5.62 5.64 5.66 5.72 5.72 5.74 5.77 5.65% 5.74%
Virginia Electric & Power Co. 6.35 927804FE9 Sr Nt 2007 Ser D 11/30/2037 21 A- 4.83 4.79 4.79 4.78 4.77 4.56 4.59 4.57 4.72 4.72 4.95 4.95 4.75% 4.87%
Virginia Electric & Power Co. 5.4 927804FF6 Sr Nt 2008 Ser A 4/30/2018 2 A- 5.02 5.00 5.01 5.01 5.03 5.02 5.04 5.06 5.09 5.09 5.13 5.15 5.05% 5.12%
Washington Water Power 7.53 94068VAA1 Secd MTN 5/5/2023 7 A- 6.08 6.05 6.11 6.17 6.20 6.11 6.16 6.24 6.15 6.15 6.35 6.39 6.18% 6.30%
Washington Water Power 7.39 94068VAF0 Secd Med-term Nt 5/11/2018 2 A- 6.74 6.75 6.78 6.80 6.83 6.80 6.84 6.85 6.89 6.89 6.94 6.96 6.84% 6.93%
Westar Energy, Inc. 5.15 95709TAB6 1st Mtg Bd 1/1/2017 1 A- 4.99 5.00 5.02 5.03 5.04 5.05 5.07 5.08 5.11 5.11 5.13 5.06% 5.12%
Westar Energy, Inc. 5.95 95709TAC4 1st Mtg Bd 1/1/2035 19 A- 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95 5.95% 5.95%
Westar Energy, Inc. 5.1 95709TAD2 Fixed Rt 1st Mtg Bd 7/15/2020 4 A- 4.57 4.54 4.55 4.56 4.57 4.50 4.55 4.59 4.58 4.58 4.68 4.70 4.58% 4.65%
Westar Energy, Inc. 5.88 95709TAE0 1st Mtg Bd 7/15/2036 20 A- 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87 5.87% 5.87%
Wisconsin Electric Power Company6.875 976656BL1 Deb 12/1/2095 79 A- 5.50 5.39 5.39 5.39 5.34 4.73 4.59 4.59 4.89 4.89 5.26 5.22 5.10% 5.12%
Wisconsin Electric Power 6.5 976656BP2 Deb 6/1/2028 12 A- 5.24 5.15 5.01 4.87 5.00 4.77 4.83 4.86 4.99 4.99 5.23 5.30 5.02% 5.17%
Wisconsin Electric Power 5.7 976656BZ0 Deb 12/1/2036 20 A- 4.66 4.53 4.53 4.53 4.51 4.35 4.36 4.33 4.52 4.52 4.72 4.69 4.52% 4.64%
Progress Energy, Inc. 8.62 144141BP2 1st 9/15/2021 5 BBB+ 6.56 6.49 6.49 6.48 6.53 6.43 6.47 6.53 6.76 6.76 6.92 6.99 6.62% 6.89%
Progress Energy, Inc. 5.7 144141CV8 1st 4/1/2035 19 BBB+ 4.81 4.70 4.68 4.65 4.68 4.49 4.50 4.48 4.55 4.55 4.78 4.79 4.64% 4.71%
Progress Energy, Inc. 6.3 144141CY2 1st 4/1/2038 22 BBB+ 4.85 4.74 4.71 4.68 4.71 4.51 4.52 4.50 4.63 4.63 4.89 4.90 4.69% 4.81%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nt 2/1/2017 1 BBB+ 5.71 5.74 5.76 5.77 5.79 5.80 5.82 5.85 5.88 5.88 5.90 5.92 5.82% 5.90%
CenterPoint Energy, Inc. 5.95 15189TAN7 Sr Nts 2/1/2017 1 BBB+ 5.71 5.74 5.76 5.77 5.79 5.80 5.82 5.85 5.88 5.88 5.90 5.92 5.82% 5.90%
Central Illinois Light 6.2 153645AX4 Sr Secd Nt 144a 6/15/2016 0 BBB+ 5.49 5.49 5.49 5.49 5.49%
Central Illinois Light 6.7 153645BA3 Sr Secd Nt 144a 6/15/2036 20 BBB+ 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21% 6.21%
Cincinnati Gas & Electric Co. 6.9 172070BT0 Deb 6/1/2025 9 BBB+ 5.66 5.57 5.49 5.40 5.43 5.33 5.29 5.32 5.44 5.44 5.64 5.66 5.47% 5.58%
Cleco Power LLC 6.5 185508AE8 Nts 12/1/2035 19 BBB+ 5.21 5.18 5.41 5.63 5.49 5.22 5.10 4.98 5.03 5.03 5.30 5.31 5.24% 5.21%
Consumers Energy Co. 6.875 210518AT3 Sr Nts 'B' 3/1/2018 2 BBB+ 6.24 6.25 6.30 6.34 6.36 6.34 6.38 6.39 6.44 6.44 6.48 6.52 6.37% 6.48%
Consumers Energy Co. 5.15 210518CG9 1st 2/15/2017 1 BBB+ 4.95 4.97 4.98 4.99 4.99 5.01 5.03 5.05 5.09 5.09 5.10 5.12 5.03% 5.10%
Consumers Energy Co. 5.8 210518CP9 1st 9/15/2035 19 BBB+ 4.65 4.61 4.63 4.64 4.61 4.44 4.39 4.39 4.63 4.63 4.86 4.90 4.61% 4.80%
Consumers Energy Co. 5.65 210518CQ7 1st 9/15/2018 2 BBB+ 5.16 5.16 5.17 5.17 5.18 5.16 5.19 5.22 5.24 5.24 5.28 5.30 5.21% 5.27%
Consumers Energy Co. 6.12 210518CR5 1st 3/15/2019 3 BBB+ 5.44 5.43 5.44 5.44 5.43 5.39 5.44 5.48 5.53 5.53 5.59 5.62 5.48% 5.58%
Dominion Resources 6.75 257469AG1 Sr Nts 'E' 12/15/2032 16 BBB+ 5.79 5.66 5.65 5.64 5.69%
Dominion Resources, Inc. (Va.) 5.95 25746UAV1 Fixed Rt Sr Nt 2005 Ser B 6/15/2035 19 BBB+ 5.33 5.25 5.20 5.14 5.12 4.84 4.85 4.83 4.95 4.95 5.13 5.16 5.06% 5.08%
EWG-22
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Dominion Resources, Inc. (Va.) 5.6 25746UBB4 SrNts'06A 11/15/2016 0 BBB+ 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16 5.16%
Duke Energy Corp. 6 264399DK9 Sr Nts 'A' 12/1/2028 12 BBB+ 4.94 4.86 4.77 4.67 4.75 4.61 4.59 4.59 4.67 4.67 4.89 4.87 4.74% 4.81%
Duke Energy Corp. 6.45 264399ED4 Sr Nts 10/15/2032 16 BBB+ 5.13 5.01 4.98 4.94 4.90 4.78 4.72 4.74 4.89 4.89 5.12 5.12 4.93% 5.04%
Empire District Electric Co. (The) 7.2 291641AS7 1st 12/1/2016 0 BBB+ 6.88 6.91 6.94 6.97 7.00 7.03 7.06 7.10 7.17 7.17 7.02% 7.17%
Enersis S.A. 7.4 29274FAB0 Nt 12/1/2016 0 BBB+ 7.06 7.11 7.14 7.16 7.21 7.23 7.26 7.31 7.37 7.37 7.22% 7.37%
Exelon Corp. 5.62 30161NAC5 Fixed Rt Sr Nt 6/15/2035 19 BBB+ 5.25 5.15 5.00 4.85 4.80 4.73 4.67 4.66 4.79 4.79 5.09 5.10 4.91% 4.99%
Florida Pwr 6.75 34110QAL2 Nts 2/1/2028 12 BBB+ 5.55 5.43 5.44 5.45 5.47 5.31 5.37 5.41 5.51 5.51 5.76 5.83 5.50% 5.70%
MidAmerican Funding 6.93 59562HAJ7 Sr Sec Bonds 3/1/2029 13 BBB+ 5.47 5.36 5.28 5.19 5.20 4.92 4.92 4.93 4.96 4.96 5.22 5.25 5.14% 5.14%
MidAmerican Energy Hldg 6.12 59562VAM9 SrBonds 4/1/2036 20 BBB+ 5.21 5.13 4.95 4.76 4.79 4.65 4.55 4.60 4.68 4.68 4.94 4.92 4.82% 4.85%
PSI Energy, Inc. 6.12 693627AY7 Deb 10/15/2035 19 BBB+ 4.97 5.00 4.93 4.85 4.78 4.59 4.60 4.60 4.78 4.78 5.05 5.09 4.83% 4.97%
PSI Energy 6.05 693627AZ4 Deb 6/15/2016 0 BBB+ 5.93 5.95 5.98 6.01 5.97%
PSEG Power LLC 8.62 69362BAJ1 Sr Nts 4/15/2031 15 BBB+ 6.82 6.73 6.89 7.04 7.18 6.81 6.67 6.59 6.66 6.66 7.08 7.16 6.86% 6.97%
Public Svc No Car 6.99 744516AA3 Sr Deb 1/15/2026 10 BBB+ 5.58 5.58 5.55 5.51 5.56 5.40 5.40 5.42 5.52 5.52 5.75 5.76 5.55% 5.68%
Public Svc No Car 7.45 744516AB1 Sr Deb 12/15/2026 10 BBB+ 5.74 5.67 5.64 5.61 5.65 5.49 5.48 5.50 5.61 5.61 5.87 5.88 5.65% 5.79%
Southern California Edison Co. 6.65 842400EB5 Nts 4/1/2029 13 BBB+ 5.23 5.11 5.15 5.18 5.20 5.01 5.02 5.02 5.12 5.12 5.33 5.39 5.16% 5.28%
Southern Power Co 6.38 843646AG5 Sr Nt Ser E 11/15/2036 20 BBB+ 6.22 6.23 6.25 6.26 6.28 6.29 6.30 6.32 6.37 6.37 6.36 6.37 6.30% 6.37%
Tampa Electric Co. 6.55 875127AV4 Nts 5/15/2036 20 BBB+ 5.09 4.98 4.97 4.96 4.92 4.80 4.77 4.74 4.91 4.91 5.18 5.18 4.95% 5.09%
Tampa Electric Co. 6.15 875127AW2 Sr Nts 5/15/2037 21 BBB+ 4.97 4.84 4.84 4.83 4.76 4.59 4.59 4.57 4.80 4.80 5.08 5.03 4.81% 4.97%
Tampa Electric Co. 6.1 875127AX0 Fixed Rt 5/15/2018 2 BBB+ 5.59 5.61 5.61 5.60 5.64 5.63 5.65 5.69 5.74 5.74 5.79 5.76 5.67% 5.76%
Union Electric 5.5 906548BY7 Sr Sec Nts 3/15/2034 18 BBB+ 4.81 4.69 4.71 4.72 4.68 4.50 4.46 4.44 4.56 4.56 4.81 4.77 4.64% 4.71%
Union Electric 5 906548CD2 Sr Sec Nts 2/1/2020 4 BBB+ 4.50 4.55 4.54 4.52 4.53 4.46 4.48 4.51 4.56 4.56 4.64 4.67 4.54% 4.62%
Union Electric 6.4 906548CE0 Sr Sec Nts 6/15/2017 1 BBB+ 5.99 6.03 6.04 6.04 6.06 6.09 6.11 6.14 6.20 6.20 6.23 6.25 6.11% 6.23%
Union Electric 6 906548CF7 Sr Sec Nts 4/1/2018 2 BBB+ 5.51 5.52 5.54 5.56 5.57 5.55 5.57 5.60 5.64 5.64 5.67 5.70 5.59% 5.67%
Union Electric 6.7 906548CG5 Sr Sec Nts 2/1/2019 3 BBB+ 5.86 5.92 5.92 5.91 5.94 5.89 5.92 5.96 6.01 6.01 6.08 6.12 5.96% 6.07%
Xcel Energy Inc. 6.5 98389BAH3 Sr Nts 7/1/2036 20 BBB+ 5.20 5.09 5.08 5.06 5.04 4.86 4.72 4.73 4.89 4.89 5.16 5.18 4.99% 5.08%
Appalachian Power Co. 5.95 037735BZ9 Sr Nts'H' 5/15/2033 17 BBB 5.33 5.64 5.49 5.33 5.29 5.11 5.02 4.99 4.97 4.97 5.16 5.16 5.20% 5.10%
Appalachian Power 5 037735CD7 Sr Nts'K' 6/1/2017 1 BBB 4.79 4.80 4.81 4.81 4.83 4.84 4.85 4.87 4.89 4.89 4.91 4.93 4.85% 4.91%
Appalachian Power 5.8 037735CE5 Sr Nts'L' 10/1/2035 19 BBB 5.11 5.06 5.06 5.05 4.98 4.82 4.81 4.83 4.87 4.87 5.11 5.04 4.97% 5.01%
Appalachian Power 6.38 037735CG0 Sr Nts'N' 4/1/2036 20 BBB 5.34 5.46 5.36 5.26 5.16 5.05 4.98 5.00 5.03 5.03 5.25 5.20 5.18% 5.16%
CMS Energy Corp. 6.55 125896BA7 Sr Nts 7/17/2017 1 BBB 6.13 6.16 6.17 6.18 6.20 6.21 6.24 6.26 6.31 6.31 6.34 0.00 5.71% 4.22%
Cleveland Electric Illuminating Co. 7.88 186108BU9 Sec Nts 'D' 11/1/2017 1 BBB 7.15 7.21 7.23 7.24 7.29 7.28 7.33 7.37 7.44 7.44 7.45 7.49 7.33% 7.46%
Commonwealth Edison 6.95 202795GX2 Nts 7/15/2018 2 BBB 6.23 6.24 6.27 6.30 6.33 6.31 6.35 6.39 6.43 6.43 6.48 6.47 6.35% 6.46%
DTE Energy Co. 6.35 233331AM9 Sr Nt 2006 Ser B 6/1/2016 0 BBB 6.24 6.26 6.29 6.32 6.28%
Dominion Resources, Inc. (Va.) 7.5 25746UAY5Enhanced Jr Sub Nt 2006 Ser A6/30/2066 50 BBB 8.96 8.95 8.94 8.92 8.98 9.10 3.99 3.92 3.94 3.94 3.99 3.99 6.47% 3.97%
Dominion Resources, Inc. (Va.) 2.58 25746UAZ2Jr Sub Nt 2006 Ser B Enhanced9/30/2066 50 BBB 4.19 4.32 4.25 4.17 3.96 3.96 3.83 3.71 3.97 3.97 4.07 4.07 4.04% 4.04%
El Paso Electric Co. 6 283677AW2 Sr Nts 5/15/2035 19 BBB 4.93 4.82 4.95 5.07 5.07 4.88 4.89 4.86 4.98 4.98 5.25 5.21 4.99% 5.15%
Empire District Electric Co. (The) 5.8 291641AZ1 Sr Nts 7/1/2035 19 BBB 5.78 5.79 5.81 5.83 5.83 5.60 5.61 5.62 5.40 5.40 5.70 5.74 5.68% 5.61%
Empire District Elec 6.7 29164RAA9 Sr Nts 11/15/2033 17 BBB 5.74 5.66 5.48 5.30 5.36 5.26 5.24 5.19 5.32 5.32 5.59 5.76 5.44% 5.56%
Energy East Corp. 6.75 29266MAE9 Nts 9/15/2033 17 BBB 6.11 6.12 6.01 5.90 5.96 5.75 5.81 5.68 5.82 5.82 6.12 5.91 5.92% 5.95%
Energy East 6.75 29266MAF6 Nt 7/15/2036 20 BBB 5.45 5.46 5.36 5.26 5.32 5.11 5.18 5.04 5.18 5.18 5.49 5.54 5.30% 5.40%
Enersis S.A. 6.6 29274FAC8 Nt 12/1/2026 10 BBB 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27 6.27% 6.27%
Indiana Mich Pwr 6.05 454889AM8 Sr Nts'H' 3/15/2037 21 BBB 5.22 5.20 5.20 5.19 5.06 4.87 4.82 4.79 4.87 4.87 5.11 5.07 5.02% 5.02%
Kansas City Power & Light 6.05 485134BH2 Sr Nt Ser A 11/15/2035 19 BBB 4.97 4.90 4.95 5.00 4.90 4.76 4.80 4.76 4.87 4.87 5.11 5.12 4.92% 5.03%
Kansas City Power & Light 5.85 485134BJ8 Sr Nt 6/15/2017 1 BBB 5.54 5.55 5.57 5.59 5.62 5.62 5.65 5.66 5.70 5.70 5.72 5.74 5.64% 5.72%
Kentucky Power 5.62 491386AL2 Sr Nts'D' 12/1/2032 16 BBB 5.27 5.15 5.14 5.13 5.13 5.00 4.97 5.03 5.09 5.09 5.23 5.27 5.13% 5.20%
Ohio Power Co. 6.6 677415CF6 Sr Nts 'G' 2/15/2033 17 BBB 5.31 5.43 5.37 5.31 5.28 5.12 5.12 5.12 5.19 5.19 5.45 5.38 5.27% 5.34%
Ohio Power Co. 6 677415CL3 Sr Nts'K' 6/1/2016 0 BBB 5.90 5.93 5.95 5.97 5.94%
PPL Energy Supply 5.7 69352JAG2 Reset PutSecs 10/15/2035 19 BBB 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70 5.70% 5.70%
PPL Energy Supply 6.2 69352JAH0 Sr Nts 5/15/2016 0 BBB 6.24 6.23 6.24%
PPL Energy Supply 6 69352JAK3 Sr Nts 12/15/2036 20 BBB 15.78 15.00 12.63 10.25 11.00 11.32 10.00 10.34 9.91 9.91 10.34 10.57 11.42% 10.27%
PPL Energy Supply 6.5 69352JAL1 Sr Nts 5/1/2018 2 BBB 7.14 7.02 6.68 6.34 6.34 6.50 6.31 6.32 6.26 6.26 6.28 6.28 6.48% 6.27%
Pacific Gas & Electric Co. 6.05 694308GE1 1st 3/1/2034 18 BBB 4.99 4.91 4.75 4.59 4.64 4.55 4.53 4.48 4.60 4.60 4.86 4.85 4.70% 4.77%
Pacific Gas & Electric Co. 5.8 694308GJ0 Fixed Rt Sr Nt 3/1/2037 21 BBB 4.91 4.80 4.70 4.60 4.59 4.41 4.42 4.41 4.53 4.53 4.76 4.77 4.62% 4.69%
Pepco Holdings, Inc. 6.12 713291AP7 Nts 6/1/2017 1 BBB 5.89 5.90 2.95 4.91%
Progress Energy, Inc. 7.75 743263AE5 Sr Nts 3/1/2031 15 BBB 5.89 5.75 5.68 5.61 5.59 5.51 5.52 5.51 5.62 5.62 5.91 5.67 5.66% 5.73%
Progress Energy, Inc. 7 743263AG0 Sr Nts 10/30/2031 15 BBB 5.57 5.49 5.41 5.33 5.35 5.19 5.20 5.18 5.25 5.25 5.60 5.43 5.35% 5.43%
Public Serv, New Mexico 7.5 744499AN4 Sr Unsec Nts 'B' 8/1/2018 2 BBB 6.69 6.69 6.72 6.75 6.78 6.72 6.77 6.80 6.84 6.84 6.89 6.92 6.78% 6.88%
Public Service Co. of Oklahoma 6.15 744533BH2 Sr Nts'F' 8/1/2016 0 BBB 6.00 6.04 6.06 6.08 6.10 6.12 6.07%
Public Service Co. of Oklahoma 6.62 744533BJ8 Sr Nts 'G' 11/15/2037 21 BBB 5.42 5.28 5.32 5.36 5.34 5.15 5.07 5.06 5.17 5.17 5.24 5.22 5.23% 5.21%
Southwest'n Elec Power 5.55 845437BH4 Sr Nt Ser E 1/15/2017 1 BBB 5.34 5.36 5.38 5.39 5.41 5.42 5.43 5.46 5.50 5.50 5.52 5.43% 5.51%
WPS Resources 6.11 92931BAC0 Jr Sub Nt 12/1/2066 50 BBB 0.00 0.00 0.00 0.00 0.00 0.00 8.05 7.27 6.50 6.50 6.67 3.35 3.20% 5.51%
Wisconsin Energy Corp. 6.25 976657AH9 2007 Ser A Jr Sub Nt 5/15/2067 51 BBB 8.62 8.44 7.99 7.53 7.59 7.87 7.62 7.30 7.14 7.14 7.18 7.13 7.63% 7.15%
Cleveland Elec. Illum 5.95 186108CE4 Sr Nts 12/15/2036 20 BBB- 5.54 5.49 5.46 5.42 5.57 5.39 5.32 5.17 5.24 5.24 5.40 5.38 5.38% 5.34%
EWG-23
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Exempt Wholesale Generators
2017 Assessment Year
Cleveland Elec. Illum 5.7 186108CF1 Sr Nts 4/1/2017 1 BBB- 5.50 5.51 5.51 5.51 5.52 5.52 5.54 5.56 5.60 5.60 5.62 5.64 5.55% 5.62%
Duquesne Light Holdings, Inc. 6.25 266233AB1 Sr Nts 8/15/2035 19 BBB- 5.79 5.80 5.80 5.80 5.75 5.56 5.57 5.55 5.58 5.58 5.89 5.88 5.71% 5.78%
NiSource Finance 5.25 65473QAQ6 Gtd Nt 9/15/2017 1 BBB- 4.96 4.97 5.00 5.03 5.04 5.05 5.07 5.06 5.09 5.09 5.11 5.13 5.05% 5.11%
NiSource Finance 5.45 65473QAR4 Gtd Nt 9/15/2020 4 BBB- 4.95 4.91 4.89 4.86 4.85 4.80 4.85 4.84 4.88 4.88 4.98 5.00 4.89% 4.95%
Ohio Edison Co. 6.88 677347CE4 Sr Nts 7/15/2036 20 BBB- 5.78 5.69 5.65 5.61 5.64 5.57 5.35 5.24 5.31 5.31 5.50 5.43 5.51% 5.41%
Pennsylvania Electric 6.625 708696BM0 Sr Nts 'C' 4/1/2019 3 BBB- 6.13 6.16 6.18 6.20 6.24 6.16 6.07 6.09 6.15 6.15 6.20 6.18 6.16% 6.18%
Constellation Energy Group, Inc. 7.6 210371AF7 Nts 4/1/2032 16 BB+ 6.02 5.92 5.81 5.69 5.63 5.57 5.43 5.42 5.54 5.54 5.83 5.81 5.68% 5.73%
FirstEnergy Corp. 7.38 337932AC1 Sr Nt Ser C 11/15/2031 15 BB+ 5.98 5.94 5.94 5.94 6.08 5.92 5.87 5.68 5.67 5.67 5.90 5.76 5.86% 5.78%
El Paso Energy Corp MTN BE 8.05 28368EAA4 MTN 10/15/2030 14 BB 8.16 8.02 7.71 7.39 7.41 7.21 7.03 6.92 6.83 6.83 7.17 6.79 7.29% 6.93%
El Paso Energy Corp MTN BE 7.75 28368EAE6 MTN-tranche # Tr 00005 1/15/2032 16 BB 8.35 8.05 7.62 7.19 7.24 6.92 6.68 6.50 6.33 6.33 6.57 6.36 7.01% 6.42%
TXU Corp. 6.5 873168AN8 Sr Nts'Q' 11/15/2024 8 D 8.90 9.35 9.32 9.28 13.00 13.00 12.87 10.83 21.66 21.66 12.99% 21.66%
TXU Corp. 6.55 873168AQ1 Sr Nts'R' 11/15/2034 18 D 8.97 9.42 9.39 9.35 13.10 13.10 13.64 10.91 21.83 21.83 13.15% 21.83%
Allegheny Generating 6.88 017364AG5 Deb 9/1/2023 7 NR 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80% 6.80%
MDU Resources Group, Inc. 5.98 552690AF6 Sr Sec Nt 12/15/2033 17 NR 5.70 5.59 5.45 5.30 5.24 5.18 5.11 5.10 5.24 5.24 5.54 5.55 5.35% 5.44%
Madison Gas & Elec Co MTN BE 5.26 5574A0AC1 MTN 9/29/2017 1 NR 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58 4.58% 4.58%
Ohio Power Co. 6.38 677415CJ8 Sr Nts 'I' 7/15/2033 17 NR 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37 6.37% 6.37%
Orange & Rockland Utils 7 684065AU9 Deb 'G' 3/1/2029 13 NR 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69 6.69% 6.69%
PPL Energy Supply 2.62 69352JAE7 Sr Nt Conv 5/15/2023 7 NR 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25% 2.25%
Savannah Electric&Power 5.5 804787DJ5 Sr Nts'F' 12/15/2028 12 NR 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50% 5.50%
Sierra Pacific Resources 6.75 826428AN4 Sr Nts 8/15/2017 1 NR 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60 6.60% 6.60%
Tennessee Valley Authority 8.25 880591BL5 Pwr Bonds '92D 4/15/2042 26 NR 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78 7.78% 7.78%
Tennessee Valley Authority 6.235 880591CF7 Pwr Bonds '95B 7/15/2045 29 NR 5.39 5.33 5.35 5.37 5.39 5.29 5.34 5.39 5.43 5.43 5.54 5.54 5.40% 5.50%
Tennessee Valley Authority 5.98 880591CK6 Pwr Bonds '96A 4/1/2036 20 NR 4.48 4.35 4.36 4.36 4.31 4.14 4.08 4.04 4.18 4.18 4.45 4.45 4.28% 4.36%
Tennessee Valley Authority 6.15 880591CP5 Pwr Bonds '98B 1/15/2038 22 NR 4.50 4.31 4.35 4.38 4.38 4.12 4.07 4.04 4.19 4.19 4.45 4.50 4.29% 4.38%
Tennessee Valley Authority 5.88 880591CS9 Pwr Bonds '97C 4/1/2036 20 NR 4.42 4.29 4.30 4.31 4.27 4.09 4.03 4.00 4.15 4.15 4.40 4.47 4.24% 4.34%
Union Electric 7.69 906548BT8 Sub Cap Inc Sec'A' 12/15/2036 20 NR 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48 7.48% 7.48%
278 278 278 277 275 270 270 266 265 263 263 256 254
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.36% 5.48%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.28% 5.33%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.01% 5.06%
Investment Grade (BBB- & Above) 4.96% 5.02%
Say: 5.25%
EWG-24
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)AES Corp. AES 1,431,000 20,288,000 20,081,000 21,087,000 20,463,000 20,687,500 6.92% 20,272,000 1.02
Calpine Corp. CPN 631,000 11,292,000 11,645,000 12,046,000 11,926,000 11,669,000 5.41% 11,785,500 0.99
Dynegy Inc DYN 625,000 5,950,000 6,495,000 8,837,000 8,982,000 7,393,500 8.45% 7,738,500 0.96
NRG Energy NRG 1,061,000 18,263,000 19,620,000 18,566,000 19,406,000 18,414,500 5.76% 19,513,000 0.94
NRG Yield Inc. NYLDA 274,000 5,538,000 5,656,000 5,769,000 5,770,000 5,653,500 4.85% 5,713,000 0.99
Pattern Energy Group PEGI 78,004 1,382,149 1,415,886 1,382,038 1,383,672 1,382,094 5.64% 1,399,779 0.99
Vivint Solar Inc VSLR 34,008 415,900 415,900 771,900 771,900 593,900 5.73% 593,900 1.00
Total 4,134,012 65,793,994 6.28% 67,015,679 0.98
Average 6.11% 0.98
Median 5.73% 0.99 High 8.45% 1.02
Low 4.85% 0.94
Say 6.00% 0.99
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
MONTANA DEPARTMENT OF REVENUE
Industry: Exempt Wholesale Generators
2017 Assessment Year
EWG-25
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
AEE Ameren Corporation high 44.97$ 48.22$ 50.16$ 51.06$ 49.74$ 53.59$ 54.08$ 52.59$ 51.91$ 50.25$ 51.46$ 52.88$ 52.46$ 49.45$ 48.90$
low 41.50$ 44.69$ 45.56$ 46.29$ 46.30$ 48.69$ 50.65$ 49.15$ 47.79$ 46.84$ 46.97$ 48.32$
AES AES Corp. high 9.59$ 10.14$ 11.80$ 11.69$ 11.49$ 12.48$ 12.72$ 12.59$ 13.32$ 12.75$ 12.48$ 12.47$ 11.62$ 11.87$ 11.32$
low 8.22$ 8.88$ 9.76$ 10.79$ 10.49$ 10.79$ 12.00$ 11.89$ 11.85$ 11.45$ 11.08$ 10.98$
AVA Avista Corp. high 37.10$ 39.30$ 41.31$ 41.37$ 42.17$ 44.81$ 45.22$ 43.71$ 43.74$ 41.74$ 42.26$ 43.00$ 39.99$ 40.65$ 40.48$
low 34.31$ 36.72$ 36.89$ 38.48$ 38.83$ 40.00$ 42.87$ 40.30$ 40.38$ 38.99$ 39.21$ 38.69$
BKH Black Hills high 49.73$ 57.74$ 61.13$ 60.93$ 62.26$ 63.53$ 64.58$ 63.87$ 63.79$ 62.07$ 61.90$ 62.83$ 61.34$ 59.28$ 58.32$
low 44.65$ 48.19$ 54.88$ 56.16$ 57.10$ 60.02$ 61.17$ 56.86$ 57.51$ 56.53$ 54.76$ 57.58$
CPN Calpine Corp high 15.38$ 16.49$ 15.18$ 16.00$ 15.83$ 16.07$ 15.12$ 13.73$ 14.00$ 13.22$ 12.13$ 11.81$ 11.43$ 11.61$ 13.46$
low 12.98$ 11.53$ 12.51$ 13.93$ 14.22$ 13.22$ 13.20$ 11.97$ 12.07$ 11.27$ 10.81$ 10.39$
DUK Duke Energy high 75.41$ 80.10$ 80.71$ 81.39$ 81.28$ 85.79$ 87.31$ 86.00$ 87.75$ 80.49$ 80.05$ 78.24$ 77.62$ 76.69$ 78.89$
low 70.16$ 73.79$ 72.48$ 76.21$ 75.72$ 77.96$ 84.15$ 79.15$ 77.90$ 75.81$ 73.23$ 72.34$
DYN Dynegy Inc. high 13.41$ 12.77$ 14.44$ 18.25$ 19.97$ 22.01$ 18.39$ 15.59$ 14.34$ 13.81$ 11.00$ 9.23$ 8.46$ 9.87$ 13.25$
low 9.67$ 7.20$ 9.87$ 13.71$ 16.23$ 14.37$ 14.87$ 11.93$ 11.69$ 10.56$ 7.01$ 7.62$
GXP G't Plains Energy high 28.08$ 29.88$ 32.44$ 32.74$ 32.24$ 30.42$ 31.24$ 29.82$ 28.14$ 28.48$ 28.70$ 28.01$ 27.35$ 27.29$ 28.77$
low 25.87$ 27.80$ 28.49$ 30.21$ 28.50$ 28.08$ 29.51$ 26.84$ 26.37$ 26.33$ 26.38$ 25.85$
IDA IDACORP Inc. high 69.96$ 73.82$ 74.96$ 74.99$ 74.47$ 81.36$ 83.40$ 81.71$ 81.55$ 78.86$ 79.43$ 81.81$ 80.55$ 76.90$ 75.12$
low 65.03$ 68.30$ 69.03$ 70.40$ 69.83$ 72.91$ 79.21$ 75.46$ 75.14$ 73.33$ 72.93$ 75.03$
LNT Alliant Energy high 32.67$ 35.13$ 37.17$ 37.59$ 37.10$ 40.24$ 40.99$ 40.58$ 40.60$ 38.33$ 38.67$ 38.34$ 37.57$ 36.97$ 35.94$
Stock Split 2:1 5/20/16 low 30.38$ 32.38$ 33.26$ 34.08$ 17.77$ 36.92$ 39.07$ 37.69$ 37.09$ 36.31$ 34.88$ 35.26$
MDU MDU Resources Group high 19.55$ 20.10$ 22.97$ 24.01$ 24.67$ 24.17$ 25.79$ 26.25$ 28.86$ 29.92$ 29.74$ 29.30$ 26.73$ 28.43$ 24.34$
low 17.79$ 18.70$ 19.73$ 22.54$ 23.50$ 22.47$ 23.06$ 24.49$ 24.80$ 27.71$ 28.11$ 25.83$
NRG NRG Energy high 12.04$ 12.14$ 14.47$ 15.33$ 16.75$ 18.32$ 16.02$ 14.54$ 12.51$ 12.15$ 12.15$ 13.06$ 12.26$ 11.40$ 12.67$
low 8.92$ 9.03$ 10.66$ 11.69$ 13.92$ 13.22$ 13.77$ 11.75$ 10.70$ 10.20$ 9.84$ 10.98$
NWE NorthWestern Corp. high 55.85$ 60.76$ 62.22$ 62.51$ 59.44$ 63.30$ 63.75$ 61.32$ 60.71$ 57.76$ 59.13$ 58.08$ 56.87$ 56.28$ 58.11$
low 52.16$ 55.49$ 57.46$ 55.91$ 55.34$ 57.52$ 60.05$ 57.09$ 56.18$ 53.85$ 54.78$ 54.07$
2017 Assessment Year
Industry: Exempt Wholesale Generators
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
EWG-26
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
2017 Assessment Year
Industry: Exempt Wholesale Generators
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
NYLDA NRG Yield Inc. high 14.92$ 13.71$ 14.93$ 16.52$ 16.50$ 16.78$ 18.56$ 18.33$ 18.45$ 17.01$ 16.45$ 16.35$ 15.57$ 15.57$ 15.28$
low 10.90$ 10.49$ 12.86$ 13.78$ 14.31$ 14.03$ 15.33$ 16.56$ 16.38$ 15.00$ 13.98$ 14.60$
OGE OGE Energy high 26.52$ 27.81$ 28.74$ 29.62$ 31.07$ 32.75$ 32.96$ 32.29$ 33.10$ 31.69$ 32.48$ 34.23$ 33.15$ 31.47$ 29.77$
low 23.37$ 24.39$ 24.83$ 27.27$ 28.97$ 30.09$ 31.30$ 29.91$ 30.59$ 29.61$ 29.57$ 31.26$
PEGI Pattern Energy Group high 21.01$ 18.97$ 19.60$ 22.07$ 21.86$ 23.02$ 24.71$ 25.13$ 25.13$ 23.00$ 23.01$ 20.31$ 18.99$ 20.84$ 20.79$
low 15.73$ 14.56$ 16.28$ 17.70$ 19.35$ 20.50$ 23.16$ 22.92$ 22.27$ 21.36$ 18.70$ 18.68$
PNM PNM Resources high 31.41$ 33.34$ 34.07$ 33.93$ 33.49$ 35.46$ 36.15$ 34.51$ 34.91$ 33.25$ 33.45$ 34.53$ 34.06$ 32.36$ 32.67$
low 29.22$ 31.24$ 31.30$ 30.62$ 31.20$ 32.79$ 33.61$ 31.56$ 31.20$ 30.98$ 30.95$ 31.00$
PNW Pinnacle West Capital high 66.49$ 71.40$ 75.15$ 75.81$ 74.65$ 81.08$ 82.78$ 79.54$ 80.19$ 76.59$ 77.34$ 78.97$ 78.03$ 74.74$ 73.74$
low 62.51$ 66.02$ 66.35$ 70.23$ 70.11$ 73.07$ 77.79$ 74.28$ 73.94$ 72.07$ 70.86$ 72.61$
POR Portland General high 39.02$ 40.48$ 39.90$ 40.03$ 41.94$ 44.12$ 45.21$ 44.46$ 44.12$ 44.32$ 43.91$ 44.14$ 43.33$ 42.37$ 41.16$
low 35.27$ 37.40$ 37.04$ 37.77$ 39.47$ 40.96$ 43.28$ 41.51$ 41.71$ 40.28$ 40.87$ 40.71$
PPL PPL Corp. high 35.15$ 37.23$ 38.09$ 38.30$ 39.08$ 39.92$ 37.88$ 37.76$ 35.94$ 34.57$ 34.98$ 34.90$ 34.05$ 33.61$ 35.66$
low 32.18$ 34.64$ 34.00$ 36.14$ 37.10$ 36.33$ 36.66$ 34.35$ 33.52$ 32.08$ 32.46$ 32.69$
SO Southern Co. high 49.00$ 50.24$ 51.73$ 51.79$ 51.56$ 53.64$ 54.64$ 53.80$ 53.73$ 52.23$ 51.68$ 49.64$ 49.19$ 49.28$ 50.19$
low 46.00$ 47.26$ 46.56$ 48.72$ 47.62$ 49.01$ 52.78$ 50.00$ 50.77$ 49.14$ 46.79$ 46.20$
SRE Sempra Energy high 95.28$ 99.48$ 104.70$ 106.05$ 107.28$ 114.03$ 114.66$ 111.96$ 111.40$ 109.42$ 107.10$ 104.70$ 100.64$ 102.33$ 103.19$
low 86.72$ 93.03$ 94.39$ 100.40$ 101.17$ 106.16$ 110.00$ 103.62$ 102.15$ 101.70$ 92.95$ 98.12$
VSLR Vivint Solar Inc high 10.16$ 8.82$ 7.22$ 3.73$ 4.06$ 3.70$ 3.20$ 3.70$ 3.34$ 3.35$ 3.25$ 3.05$ 2.55$ 2.95$ 4.02$
low 7.36$ 5.41$ 2.41$ 2.32$ 2.16$ 2.66$ 2.74$ 2.78$ 2.90$ 3.00$ 2.50$ 2.55$
XEL Xcel Energy Inc. high 38.26$ 40.42$ 41.85$ 42.04$ 41.98$ 44.78$ 45.42$ 44.13$ 43.49$ 41.80$ 41.75$ 41.20$ 40.70$ 40.01$ 40.66$
low 35.19$ 36.25$ 38.26$ 38.43$ 39.69$ 40.99$ 43.10$ 41.07$ 40.34$ 39.08$ 38.00$ 38.22$
EWG-27
Gas Pipelines
2017 Capitalization Rate StudyFinal
Capital Structure
Equity 60.00% Page GP-4
Debt 40.00% Page GP-4
Equity Cost of Capital
Capital Asset Pricing Model 9.99% Page GP-5
Dividend Growth Model (g = Earnings Growth) 13.00% Page GP-9
Dividend Growth Model (g = Dividend Growth) 10.75% Page GP-9
11.00%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 5.25% Page GP-16
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
5.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 11.00% 11.00% 6.60%
Debt 40.00% 5.00% 38.00% 3.10% 1.24%
WACC 100.00% 7.84%
WACC (Rounded) 7.90%
Gas Pipelines - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Gas Pipelines
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
GP-2
Capital Structure
Equity 60.00% Page GP-4
Debt 40.00% Page GP-4
Equity Cost of Capital
NOI After-tax 5.00% Page GP-17
GCF 9.70% Page GP-17
Debt Cost of Capital
Standard and Poor's Current Yield 6.50% Page GP-20
Calculated Current Yield 4.60% Page GP-21
5.50%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 5.00% 5.00% 3.00%
Debt 40.00% 5.50% 38.00% 3.41% 1.36%
Total 100.00% 4.36%
Total (Rounded) 4.40%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 60.00% 9.70% 9.70% 5.82%
Debt 40.00% 5.50% 38.00% 3.41% 1.36%
WACC 100.00% 7.18%
Total (Rounded) 7.20%
Gas Pipelines - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Gas Pipelines
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Gas Pipelines - NOI After-tax Direct Capitalization Rate
GP-3
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLeases
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
Boardwalk BWP PIPEMLP C++ 250,300 17.18 4,299,737 0 3,709,200 21,678 8,030,615 54% 0% 46%
Enbridge Energy Partners LLP EEP PIPEMLP B 262,208 24.35 6,385,649 1,191,500 6,500,000 98,397 14,175,546 45% 8% 47%
Energy Transfer ETP PIPEMLP B++ 529,869 35.86 19,002,877 33,000 33,850,000 218,103 53,103,980 36% 0% 64%
EnLink Midstream Partners LP ENLK PIPEMLP B 342,856 17.52 6,006,271 794,000 3,225,800 90,699 10,116,769 59% 8% 33%
Enterprise Products EPD PIPEMLP B+ 2,117,588 25.95 54,947,890 0 21,950,000 327,780 77,225,670 71% 0% 29%
EQT Midstream Partners LP EQM PIPEMLP B++ 80,582 74.22 5,980,778 0 981,585 0 6,962,363 86% 0% 14%
ONEOK Partners LP OKS PIPEMLP B+ 212,838 41.50 8,831,712 0 7,100,000 11,321 15,943,033 55% 0% 45%
Spectra Energy Partners, LP SEP PIPEMLP B++ 308,400 43.18 13,316,712 0 6,855,000 146,714 20,318,426 66% 0% 34%
Western Gas Equity Partners, LP WGP PIPEMLP B+ 218,929 43.12 9,440,565 0 3,224,199 8,419 12,673,183 74% 0% 26%
Western Gas Partners LP WES PIPEMLP B+ 130,672 56.36 7,364,454 639,545 3,196,199 8,419 11,208,618 66% 6% 29%
Williams Ptrs. WPZ PIPEMLP B 607,065 35.98 21,842,183 0 19,000,000 208,968 41,051,151 53% 0% 47%
All Companies 157,418,827 2,658,045 109,591,983 1,140,498 270,809,353 58% 1% 41%
Average 60% 2% 38%
Median 59% 0% 34%
High 86% 8% 64%
Low 36% 0% 14%
Say 60% 40%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2017 Guideline Company Changes
Targa Resources VL Tissue unavaible, no stock data
Removed the following comparable compared to last year:
EQT Corp (EQT) To focus on limited partners
Kinder Morgan Inc. (KMI) Different ownership structure than the majority of industry
ONEOK Inc. (OKE) To focus on limited partners
Spectra Energy Corp. (SE) To focus on limited partners
Targa Resources Corp.(TRGP) To focus on limited partners
TransCanada P.L. (TRP) Different ownership structure than the majority of industry and primarily a Canadian company
Williams Companies (WMB) To focus on limited partners
Enlink Midstream LLC (ENLC) To focus on limited partners
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Gas Pipelines
2017 Assessment Year
GP-4
Gas PL
k e = Cost of Equity 9.99%
R f = Risk Free Rate 2.79%
β = Beta 1.20
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Gas Pipelines
2017 Assessment Year
k e = R f + β x ERP
"Value Line Selection & Opinion", Value Line (January 6, 2017)
GP-5
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Gas Pipelines
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR 3 Stage Dividend Growth Model, S & P 500, See Exhibit
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
GP-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Gas Pipelines
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 6.00%
5
Nominal Growth
Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
GP-7
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
Boardwalk BWP PIPEMLP C++ 0.90
Enbridge Energy Partners LLP EEP PIPEMLP B 1.15
Energy Transfer ETP PIPEMLP B++ 1.25
EnLink Midstream Partners LP ENLK PIPEMLP B 1.55
Enterprise Products EPD PIPEMLP B+ 1.20
EQT Midstream Partners LP EQM PIPEMLP B++ 1.20
ONEOK Partners LP OKS PIPEMLP B+ 1.10
Spectra Energy Partners, LP SEP PIPEMLP B++ 0.85
Western Gas Equity Partners, LP WGP PIPEMLP B+ 1.50
Western Gas Partners LP WES PIPEMLP B+ 1.25
Williams Ptrs. WPZ PIPEMLP B 1.45
Average 1.22
Median 1.20
High 1.55
Low 0.85
Say 1.20
2017 Assessment Year
Industry: Gas Pipelines
Support for Beta Selection in CAPM
MONTANA DEPARTMENT OF REVENUE
GP-8
Ke = Cost of Equity g = Expected Long Term Growth
D1 = Expected Dividend P0 = Current Price Per Share
A B C D E F G H I J K
Company Name Ticker
Avg. 4Q
Stock Price
2017
Expected
Dividend Taxable
Entity?
2017
Expected
Dividend
Adj for Tax
Dividend
Yield
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Cost of
Equity
Cost of
Equity
P0 D1 If taxable =
"No"
D1 x (1-.38)
D1/P0 g =
Earnings g
g =
Dividends g
Ke
g = Earnings g
Ke
g = Dividend g
Yahoo Value Line F/C
Multi Stg g
Wrksht
Multi Stg g
Wrksht G+H G+I
Boardwalk BWP 17.18 0.40 No 0.25 1.44% 11.51% 3.33% 12.96% 4.78%
Enbridge Energy Partners LLP EEP 24.35 2.37 No 1.47 6.03% 4.53% 4.28% 10.56% 10.31%
Energy Transfer ETP 35.86 4.40 No 2.73 7.61% 9.31% 5.85% 16.92% 13.46%
EnLink Midstream Partners LP ENLK 17.52 1.56 No 0.97 5.52% 4.53% 5.22% 10.05% 10.74%
Enterprise Products EPD 25.95 1.67 No 1.04 3.99% 9.62% 8.05% 13.61% 12.04%
EQT Midstream Partners LP EQM 74.22 3.61 No 2.24 3.02% 10.88% 13.40% 13.90% 16.41%
ONEOK Partners LP OKS 41.50 3.34 No 2.07 4.99% 6.48% 5.22% 11.47% 10.21%
Spectra Energy Partners, LP SEP 43.18 2.85 No 1.77 4.09% 4.59% 7.74% 8.68% 11.83%
Western Gas Equity Partners, LP WGP 43.12 0.00 No 0.00 0.00% 14.85% 4.53% 14.85% 4.53%
Western Gas Partners LP WES 56.36 3.53 No 2.19 3.88% 12.14% 7.42% 16.02% 11.31%
Williams Ptrs. WPZ 35.98 2.40 No 1.49 4.14% 4.53% 1.76% 8.66% 5.90%
Average 4.06% 8.45% 6.07% 12.52% 10.14%
Median 4.09% 9.31% 5.22% 12.96% 10.74%
High 7.61% 14.85% 13.40% 16.92% 16.41%
Low 0.00% 4.53% 1.76% 8.66% 4.53%
Say 13.00% 10.75%
Industry: Gas Pipelines
2017 Assessment Year
Ke = (D1 / P0) + g
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
GP-9
Company Boardwalk BWP Company Enbridge Energy EEP Compnay Energy Transfer ETP
Value Line 5 yr est. earnings growth 13.50% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 10.00%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.14 1 30 0.02 1 30 0.10
2 29 0.14 2 29 0.02 2 29 0.10
3 28 0.14 3 28 0.02 3 28 0.10
4 27 0.14 4 27 0.02 4 27 0.10
5 26 0.14 5 26 0.02 5 26 0.10
6 25 0.13 6 25 0.03 6 25 0.10
7 24 0.13 7 24 0.03 7 24 0.10
8 23 0.12 8 23 0.03 8 23 0.10
9 22 0.12 9 22 0.04 9 22 0.10
10 21 0.12 10 21 0.04 10 21 0.09
11 20 0.11 11 20 0.05 11 20 0.09
12 19 0.11 12 19 0.05 12 19 0.09
13 18 0.11 13 18 0.05 13 18 0.09
14 17 0.10 14 17 0.06 14 17 0.09
15 16 0.10 15 16 0.06 15 16 0.09
16 15 0.10 16 15 0.06 16 15 0.09
17 14 0.09 17 14 0.07 17 14 0.09
18 13 0.09 18 13 0.07 18 13 0.08
19 12 0.09 19 12 0.07 19 12 0.08
20 11 0.08 20 11 0.08 20 11 0.08
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 11.51% Weighted Average 4.53% Weighted Average 9.31%
Value Line 5 yr est. div'd growth 0.50% Value Line 5 yr est. div'd growth 2.00% Value Line 5 yr est. div'd growth 4.50%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.01 1 30 0.02 1 30 0.05
2 29 0.01 2 29 0.02 2 29 0.05
3 28 0.01 3 28 0.02 3 28 0.05
4 27 0.01 4 27 0.02 4 27 0.05
5 26 0.01 5 26 0.02 5 26 0.05
6 25 0.01 6 25 0.02 6 25 0.05
7 24 0.01 7 24 0.03 7 24 0.05
8 23 0.02 8 23 0.03 8 23 0.05
9 22 0.02 9 22 0.04 9 22 0.05
10 21 0.03 10 21 0.04 10 21 0.06
11 20 0.03 11 20 0.04 11 20 0.06
12 19 0.04 12 19 0.05 12 19 0.06
13 18 0.04 13 18 0.05 13 18 0.06
14 17 0.05 14 17 0.05 14 17 0.07
15 16 0.05 15 16 0.06 15 16 0.07
16 15 0.06 16 15 0.06 16 15 0.07
17 14 0.06 17 14 0.07 17 14 0.07
18 13 0.07 18 13 0.07 18 13 0.07
19 12 0.07 19 12 0.07 19 12 0.08
20 11 0.08 20 11 0.08 20 11 0.08
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 3.33% Weighted Average 4.28% Weighted Average 5.85%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Gas Pipelines
2017 Assessment Year
GP-10
Company Enlink Midstream ENLK Company Enterprise Prod. EPD Company EQT Midstream EQM
Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 10.50% Value Line 5 yr est. earnings growth 12.50%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.02 1 30 0.11 1 30 0.13
2 29 0.02 2 29 0.11 2 29 0.13
3 28 0.02 3 28 0.11 3 28 0.13
4 27 0.02 4 27 0.11 4 27 0.13
5 26 0.02 5 26 0.11 5 26 0.13
6 25 0.03 6 25 0.10 6 25 0.12
7 24 0.03 7 24 0.10 7 24 0.12
8 23 0.03 8 23 0.10 8 23 0.12
9 22 0.04 9 22 0.10 9 22 0.11
10 21 0.04 10 21 0.10 10 21 0.11
11 20 0.05 11 20 0.10 11 20 0.11
12 19 0.05 12 19 0.09 12 19 0.11
13 18 0.05 13 18 0.09 13 18 0.10
14 17 0.06 14 17 0.09 14 17 0.10
15 16 0.06 15 16 0.09 15 16 0.10
16 15 0.06 16 15 0.09 16 15 0.10
17 14 0.07 17 14 0.09 17 14 0.09
18 13 0.07 18 13 0.09 18 13 0.09
19 12 0.07 19 12 0.08 19 12 0.09
20 11 0.08 20 11 0.08 20 11 0.08
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 4.53% Weighted Average 9.62% Weighted Average 10.88%
Value Line 5 yr est. div'd growth 3.50% Value Line 5 yr est. div'd growth 8.00% Value Line 5 yr est. div'd growth 16.50%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.04 1 30 0.08 1 30 0.17
2 29 0.04 2 29 0.08 2 29 0.17
3 28 0.04 3 28 0.08 3 28 0.17
4 27 0.04 4 27 0.08 4 27 0.17
5 26 0.04 5 26 0.08 5 26 0.17
6 25 0.04 6 25 0.08 6 25 0.16
7 24 0.04 7 24 0.08 7 24 0.15
8 23 0.04 8 23 0.08 8 23 0.15
9 22 0.05 9 22 0.08 9 22 0.14
10 21 0.05 10 21 0.08 10 21 0.14
11 20 0.05 11 20 0.08 11 20 0.13
12 19 0.06 12 19 0.08 12 19 0.13
13 18 0.06 13 18 0.08 13 18 0.12
14 17 0.06 14 17 0.08 14 17 0.12
15 16 0.06 15 16 0.08 15 16 0.11
16 15 0.07 16 15 0.08 16 15 0.11
17 14 0.07 17 14 0.08 17 14 0.10
18 13 0.07 18 13 0.08 18 13 0.10
19 12 0.08 19 12 0.08 19 12 0.09
20 11 0.08 20 11 0.08 20 11 0.09
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 5.22% Weighted Average 8.05% Weighted Average 13.40%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Gas Pipelines
2017 Assessment Year
GP-11
Company ONEOK Partners OKS Company Spectra Partners SEP Company Western Equity WGP
Value Line 5 yr est. earnings growth 5.50% Value Line 5 yr est. earnings growth 2.50% Value Line 5 yr est. earnings growth 18.80%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.06 1 30 0.03 1 30 0.19
2 29 0.06 2 29 0.03 2 29 0.19
3 28 0.06 3 28 0.03 3 28 0.19
4 27 0.06 4 27 0.03 4 27 0.19
5 26 0.06 5 26 0.03 5 26 0.19
6 25 0.06 6 25 0.03 6 25 0.18
7 24 0.06 7 24 0.03 7 24 0.17
8 23 0.06 8 23 0.04 8 23 0.17
9 22 0.06 9 22 0.04 9 22 0.16
10 21 0.06 10 21 0.04 10 21 0.15
11 20 0.06 11 20 0.05 11 20 0.15
12 19 0.07 12 19 0.05 12 19 0.14
13 18 0.07 13 18 0.05 13 18 0.13
14 17 0.07 14 17 0.06 14 17 0.13
15 16 0.07 15 16 0.06 15 16 0.12
16 15 0.07 16 15 0.06 16 15 0.11
17 14 0.07 17 14 0.07 17 14 0.11
18 13 0.08 18 13 0.07 18 13 0.10
19 12 0.08 19 12 0.07 19 12 0.09
20 11 0.08 20 11 0.08 20 11 0.09
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 6.48% Weighted Average 4.59% Weighted Average 14.85%
Value Line 5 yr est. div'd growth 3.50% Value Line 5 yr est. div'd growth 7.50% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.04 1 30 0.08 1 30 0.02
2 29 0.04 2 29 0.08 2 29 0.02
3 28 0.04 3 28 0.08 3 28 0.02
4 27 0.04 4 27 0.08 4 27 0.02
5 26 0.04 5 26 0.08 5 26 0.02
6 25 0.04 6 25 0.08 6 25 0.03
7 24 0.04 7 24 0.08 7 24 0.03
8 23 0.04 8 23 0.08 8 23 0.03
9 22 0.05 9 22 0.08 9 22 0.04
10 21 0.05 10 21 0.08 10 21 0.04
11 20 0.05 11 20 0.08 11 20 0.05
12 19 0.06 12 19 0.08 12 19 0.05
13 18 0.06 13 18 0.08 13 18 0.05
14 17 0.06 14 17 0.08 14 17 0.06
15 16 0.06 15 16 0.08 15 16 0.06
16 15 0.07 16 15 0.08 16 15 0.06
17 14 0.07 17 14 0.08 17 14 0.07
18 13 0.07 18 13 0.08 18 13 0.07
19 12 0.08 19 12 0.08 19 12 0.07
20 11 0.08 20 11 0.08 20 11 0.08
21 10 0.08 21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08 30 1 0.08
Weighted Average 5.22% Weighted Average 7.74% Weighted Average 4.53%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Gas Pipelines
2017 Assessment Year
GP-12
Company Western Partners WES Company Williams Ptrs. WPZ
Value Line 5 yr est. earnings growth 14.50% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.15 1 30 0.02
2 29 0.15 2 29 0.02
3 28 0.15 3 28 0.02
4 27 0.15 4 27 0.02
5 26 0.15 5 26 0.02
6 25 0.14 6 25 0.03
7 24 0.14 7 24 0.03
8 23 0.13 8 23 0.03
9 22 0.13 9 22 0.04
10 21 0.13 10 21 0.04
11 20 0.12 11 20 0.05
12 19 0.12 12 19 0.05
13 18 0.11 13 18 0.05
14 17 0.11 14 17 0.06
15 16 0.11 15 16 0.06
16 15 0.10 16 15 0.06
17 14 0.10 17 14 0.07
18 13 0.09 18 13 0.07
19 12 0.09 19 12 0.07
20 11 0.09 20 11 0.08
21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08
Weighted Average 12.14% Weighted Average 4.53%
Value Line 5 yr est. div'd growth 7.00% Value Line 5 yr est. div'd growth -2.00%
LT nominal economic growth rate 8.14% LT nominal economic growth rate 8.14%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.07 1 30 -0.02
2 29 0.07 2 29 -0.02
3 28 0.07 3 28 -0.02
4 27 0.07 4 27 -0.02
5 26 0.07 5 26 -0.02
6 25 0.07 6 25 -0.01
7 24 0.07 7 24 -0.01
8 23 0.07 8 23 0.00
9 22 0.07 9 22 0.01
10 21 0.07 10 21 0.01
11 20 0.07 11 20 0.02
12 19 0.07 12 19 0.02
13 18 0.08 13 18 0.03
14 17 0.08 14 17 0.04
15 16 0.08 15 16 0.04
16 15 0.08 16 15 0.05
17 14 0.08 17 14 0.06
18 13 0.08 18 13 0.06
19 12 0.08 19 12 0.07
20 11 0.08 20 11 0.08
21 10 0.08 21 10 0.08
22 9 0.08 22 9 0.08
23 8 0.08 23 8 0.08
24 7 0.08 24 7 0.08
25 6 0.08 25 6 0.08
26 5 0.08 26 5 0.08
27 4 0.08 27 4 0.08
28 3 0.08 28 3 0.08
29 2 0.08 29 2 0.08
30 1 0.08 30 1 0.08
Weighted Average 7.42% Weighted Average 1.76%
Industry: Gas Pipelines
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
GP-13
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
XTO Energy Inc. 5.65 98385XAH9 Sr Nts 04/01/2016 0 AAA 1.09 0.95 1.02%
XTO Energy Inc. 6.1 98385XAJ5 Sr Nts 04/01/2036 20 AAA 3.93 3.85 3.90 3.95 3.97 3.65 3.66 3.67 3.86 3.86 4.34 4.40 3.92% 4.20%
XTO Energy Inc. 6.25 98385XAL0 Sr Nts 08/01/2017 1 AAA 1.27 1.25 1.07 0.88 0.91 0.91 0.92 0.90 1.16 1.16 1.26 1.14 1.07% 1.19%
XTO Energy Inc. 6.75 98385XAM8 Sr Nts 08/01/2037 21 AAA 3.98 3.89 3.92 3.94 3.79 3.50 3.51 3.52 3.76 3.76 4.19 4.15 3.83% 4.03%
XTO Energy Inc. 5.5 98385XAP1 Sr Nts 06/15/2018 2 AAA 1.44 1.41 1.53 1.64 1.33 0.96 1.08 1.19 1.34 1.34 1.64 1.68 1.38% 1.55%
XTO Energy Inc. 6.38 98385XAQ9 Sr Nts 06/15/2038 22 AAA 4.09 4.00 3.96 3.92 3.90 3.64 3.58 3.59 3.87 3.87 4.29 4.19 3.91% 4.12%
Texaco Capital 9.75 881685AN1 GtdDeb 03/15/2020 4 AA 3.09 2.88 2.94 3.00 3.07 2.61 2.80 2.26 2.23 2.23 2.79 2.93 2.74% 2.65%
Texaco Capital 8.875 881685AV3 GtdDeb 09/01/2021 5 AA 2.89 2.68 3.09 3.49 3.56 3.11 3.22 2.15 2.13 2.13 2.68 2.83 2.83% 2.55%
Texaco Capital 8.625 881685AX9 GtdDeb 11/15/2031 15 AA 4.34 4.29 4.27 4.25 4.15 3.73 3.72 3.80 3.63 3.63 4.09 4.09 4.00% 3.94%
Texaco Capital 8.625 881685AY7 GtdDeb 04/01/2032 16 AA 4.29 4.34 4.39 4.44 4.42 4.13 4.14 4.14 4.06 4.06 4.51 4.52 4.29% 4.36%
Texaco Capital 8 881685BB6 GtdDeb 08/01/2032 16 AA 4.37 4.44 4.49 4.54 4.52 4.23 4.24 4.24 4.06 4.06 4.52 4.52 4.35% 4.37%
ANR Pipeline 7.38 001814AQ5 Deb 2/15/2024 8 A- 4.79 4.53 4.59 4.65 4.67 4.28 4.39 4.47 4.66 4.66 4.09 4.08 4.49% 4.28%
ANR Pipeline 9.62 001814AR3 Deb 11/1/2021 5 A- 3.95 4.19 4.06 3.93 4.01 3.17 2.42 2.60 2.53 2.53 2.92 3.10 3.28% 2.85%
EOG Resources, Inc. 5.88 26875PAA9 Sr Nts 09/15/2017 1 A- 1.89 2.08 1.86 1.64 1.63 1.38 1.62 1.19 1.39 1.39 1.57 1.64 1.61% 1.53%
Enron Oil & Gas 6.65 293562AD6 Nts 04/01/2028 12 A- 4.88 4.80 4.96 5.12 5.23 4.68 4.69 4.73 4.82 4.82 5.33 5.11 4.93% 5.09%
Transcanada Pipelines Ltd 9.88 893526BY8 Deb 01/01/2021 5 A- 4.05 4.12 3.83 3.53 3.46 3.22 3.09 2.80 2.65 2.65 3.14 3.06 3.30% 2.95%
Transcont'l Gas PipeLine 7.08 893570BL4 Deb 07/15/2026 10 A- 6.78 7.07 6.14 5.20 5.21 4.66 4.35 4.05 4.23 4.23 4.63 4.34 5.07% 4.40%
Transcont'l Gas PipeLine 7.25 893570BM2 Deb 12/01/2026 10 A- 6.69 7.10 6.30 5.50 5.51 4.97 4.65 4.35 4.75 4.75 5.15 4.86 5.38% 4.92%
Atlantic Richfield 9 048825AW3 Deb 04/01/2021 5 A 3.83 3.62 4.09 4.55 4.75 4.14 3.71 3.53 2.99 2.99 3.55 3.60 3.78% 3.38%
Atlantic Richfield 9 048825AY9 Deb 05/01/2031 15 A 5.63 5.43 5.48 5.53 5.57 5.26 4.70 4.78 4.73 4.73 5.26 5.32 5.20% 5.10%
Atlantic Richfield 9.125 048825AZ6 Deb 08/01/2031 15 A 5.00 4.84 4.99 5.13 5.16 4.85 4.75 4.82 4.98 4.98 5.51 5.58 5.05% 5.36%
Atlantic Richfield 8.25 048825BA0 Deb 02/01/2022 6 A 4.30 4.11 3.80 3.48 3.55 3.07 3.26 2.43 2.89 2.89 3.41 3.29 3.37% 3.20%
Atlantic Richfield 8.75 048825BB8 Deb 03/01/2032 16 A 5.69 5.49 5.54 5.58 5.55 5.12 5.13 5.04 4.76 4.76 5.22 5.18 5.25% 5.05%
Burlington Resources Inc. 9.125 122014AE3 Deb 10/01/2021 5 A 5.07 4.80 4.32 3.84 3.65 3.15 3.26 3.73 2.72 2.72 3.17 3.42 3.65% 3.10%
Burlington Resources Inc. 8.2 122014AH6 Deb 03/15/2025 9 A 6.17 6.50 5.48 4.46 4.53 3.98 4.09 4.00 4.13 4.13 4.05 3.94 4.62% 4.04%
Burlington Resources Inc. 6.875 122014AJ2 Deb 02/15/2026 10 A 6.75 6.17 5.44 4.70 4.78 4.83 4.72 4.63 4.43 4.43 4.95 4.76 5.05% 4.71%
Burlington Resources Inc. 7.375 122014AL7 Deb 03/01/2029 13 A 7.06 6.78 6.07 5.35 5.27 4.74 4.77 4.56 4.50 4.50 4.96 4.66 5.27% 4.71%
Burlington Resources Fin 7.2 12201PAB2 Gtd Nt 8/15/2031 15 A 6.35 6.54 6.00 5.45 5.26 5.09 4.62 4.35 4.33 4.33 4.80 4.55 5.14% 4.56%
Conoco Inc 6.95 208251AE8 Nts 04/15/2029 13 A 6.66 6.38 5.67 4.95 4.87 4.39 4.42 4.21 4.15 4.15 4.61 4.31 4.90% 4.36%
ConocoPhillips 5.9 20825CAF1 Nts 10/15/2032 16 A 6.23 6.28 5.50 4.71 5.02 4.44 4.25 4.44 4.33 4.33 4.79 4.56 4.91% 4.56%
Conoco Funding 7.25 20825UAC8 Sr Nt 10/15/2031 15 A 6.39 6.65 6.28 5.90 5.22 5.07 4.69 4.37 4.44 4.44 4.79 4.65 5.24% 4.63%
Louisiana Land/Exp 7.65 546268AG8 Deb 12/01/2023 7 A 5.67 5.32 4.69 4.05 4.12 3.54 3.82 3.71 3.91 3.91 4.44 4.71 4.32% 4.35%
Occidental Petroleum Corp. 9.25 674599BE4 Sr Deb 08/01/2019 3 A 2.84 2.68 2.66 2.63 2.57 2.17 2.31 2.41 2.45 2.45 2.81 2.71 2.56% 2.66%
Occidental Petroleum Corp. 7.2 674599BM6 Sr Deb 4/1/2028 12 A 5.45 5.21 4.68 4.15 4.19 3.73 3.57 3.73 3.82 3.82 4.44 4.42 4.27% 4.23%
Occidental Petroleum Corp. 8.45 674599BT1 Sr Nts 02/15/2029 13 A 4.85 4.61 4.08 3.55 4.19 3.73 3.57 3.73 3.79 3.79 4.41 4.39 4.06% 4.20%
Occidental Pete Corp Med Term 8.75 67461FED5 MTN Tranche # Tr 00100 1/15/2023 7 A 4.26 4.00 4.06 4.12 4.18 3.73 3.86 4.02 4.12 4.12 4.67 4.45 4.13% 4.41%
Phillips Petroleum 6.65 718507BH8 Deb 07/15/2018 2 A 3.28 3.98 3.27 2.56 2.63 2.27 2.37 1.75 1.59 1.59 1.94 1.99 2.44% 1.84%
Phillips Petroleum 7 718507BK1 Deb 03/30/2029 13 A 7.03 6.76 6.01 5.26 5.15 4.67 4.46 4.25 4.58 4.58 5.01 4.61 5.20% 4.73%
Apache Corp. 7.7 037411AJ4 Nts 03/15/2026 10 BBB+ 5.57 5.46 5.39 5.32 5.41 4.86 4.60 4.68 4.59 4.59 5.25 5.03 5.06% 4.96%
Apache Corp. 7.95 037411AK1 Nts 04/15/2026 10 BBB+ 5.55 5.44 5.49 5.53 5.25 4.71 4.69 4.35 4.51 4.51 5.17 4.73 4.99% 4.80%
Apache Corp. 7.625 037411AL9 Deb 11/01/2096 80 BBB+ 7.95 7.68 6.86 6.04 6.23 5.80 5.58 5.74 5.83 5.83 6.33 5.85 6.31% 6.00%
Apache Corp. 7.38 037411AM7 Deb 08/15/2047 31 BBB+ 7.45 7.18 6.36 5.54 5.73 5.30 5.08 5.24 5.17 5.17 5.67 5.20 5.76% 5.35%
Apache Corp. 7 037411AN5 Sr Nts 02/01/2018 2 BBB+ 3.75 4.94 3.99 3.03 3.05 2.44 2.36 2.26 1.77 1.77 2.34 2.04 2.81% 2.05%
Apache Corp. 7.62 037411AP0 Sr Nts 07/01/2019 3 BBB+ 3.16 4.89 4.07 3.25 3.28 2.61 2.31 2.26 1.84 1.84 2.51 2.23 2.85% 2.19%
Apache Corp. 6 037411AR6 Nts 01/15/2037 21 BBB+ 7.13 7.71 6.60 5.48 5.52 4.93 4.85 4.90 4.71 4.71 5.13 4.85 5.54% 4.90%
Canadian Natural Resources Limited6.45 136385AE1 Nt 6/30/2033 17 BBB+ 8.56 9.36 8.06 6.76 6.70 6.21 5.60 5.54 5.53 5.53 5.69 5.32 6.57% 5.51%
Devon Fin Corp 7.95 251799AA0 Sr Deb 04/15/2032 16 BBB+ 8.80 10.95 9.09 7.23 7.27 6.40 5.84 5.94 5.42 5.42 5.81 5.40 6.96% 5.54%
ENSCO International Inc. 7.2 26874QAB6 Deb 11/15/2027 11 BBB+ 12.48 15.42 14.06 12.69 11.74 11.71 10.46 10.36 8.73 8.73 8.91 8.40 11.14% 8.68%
Enterprise Products Oper 6.65 293791AP4 Sr Nts'B' 10/15/2034 18 BBB+ 6.67 6.31 5.85 5.38 5.51 5.02 4.59 4.73 4.99 4.99 5.36 4.95 5.36% 5.10%
Enterprise Products Oper 5.75 293791AT6 Sr Nts'B' 03/01/2035 19 BBB+ 6.61 6.12 5.73 5.33 5.24 4.87 4.64 4.75 4.94 4.94 5.33 5.00 5.29% 5.09%
Enterprise Prods Oper L P 4.59 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB+ 10.48 10.94 10.58 10.21 9.66 9.50 9.14 4.80 4.92 4.91 8.51% 4.92%
OceanEnergy 8.25 674812AK8 Sr Nts 'B' 07/01/2018 2 BBB+ 7.64 8.22 6.61 5.00 3.90 4.18 3.91 5.21 4.80 4.80 5.19 5.08 5.38% 5.02%
Amerada Hess Corp. 7.875 023551AF1 Nts 10/01/2029 13 BBB 8.00 9.31 7.87 6.42 6.50 5.66 5.67 5.59 5.40 5.40 6.02 5.66 6.46% 5.69%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
GP-14
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
Amerada Hess Corp. 7.3 023551AJ3 Nts 08/15/2031 15 BBB 8.76 9.18 7.84 6.50 6.47 5.75 5.65 5.73 5.58 5.58 6.24 5.70 6.58% 5.84%
Diamond Shamrock 7.65 252747AF7 Deb 07/01/2026 10 BBB 5.24 5.15 4.58 4.01 4.29 4.08 4.02 3.80 3.92 3.92 4.39 4.50 4.33% 4.27%
Enbridge Energy Partners, L.P. 5.95 29250RAD8 Sr Nts 'B' 06/01/2033 17 BBB 7.24 7.44 7.21 6.98 6.96 6.67 6.68 5.73 5.97 5.97 6.43 6.32 6.63% 6.24%
Enbridge Energy Partners, L.P. 5.88 29250RAH9 Nt 12/15/2016 0 BBB 3.40 4.35 3.12 1.89 1.88 0.95 1.14 1.46 1.77 1.77 2.17% 1.77%
Kinder Morgan Egy Ptnrs 7.4 494550AJ5 Nt 03/15/2031 15 BBB 8.20 8.29 7.52 6.75 6.78 6.61 5.92 6.14 5.63 5.63 6.21 5.63 6.61% 5.82%
Kinder Morgan Egy Ptnrs 7.75 494550AL0 Nt 03/15/2032 16 BBB 8.56 8.28 7.62 6.95 6.93 6.47 6.19 6.00 5.55 5.55 6.05 5.59 6.64% 5.73%
Kinder Morgan Egy Ptnrs 7.3 494550AQ9 Sr Nt 08/15/2033 17 BBB 8.39 8.06 7.49 6.92 6.97 6.41 6.06 5.82 5.63 5.63 6.04 5.70 6.59% 5.79%
Kinder Morgan Egy Ptnrs 6 494550AU0 Sr Nt 02/01/2017 1 BBB 4.25 3.92 3.11 2.29 2.10 1.87 1.55 1.70 1.72 1.72 1.68 2.16 2.34% 1.85%
Kinder Morgan Egy Ptnrs 6.5 494550AV8 Sr Nt 02/01/2037 21 BBB 8.24 8.08 7.41 6.73 6.79 6.05 5.88 5.99 5.88 5.88 6.19 5.72 6.57% 5.93%
Kinder Morgan Egy Ptnrs 6.95 494550AW6 Sr Nt 01/15/2038 22 BBB 8.24 8.08 7.35 6.62 6.66 6.18 5.88 5.82 5.77 5.77 6.13 5.67 6.51% 5.86%
Kinder Morgan Fin Co Ulc 6.4 49455WAF3 Gtd Nt 01/05/2036 20 BBB 8.13 7.98 8.11 8.24 8.25 7.96 7.83 7.77 7.65 7.65 8.05 7.85 7.96% 7.85%
Lakehead Pipe Line Co 7 511546AA1 Sr Nt 10/1/2018 2 BBB 4.76 4.69 4.89 5.08 5.15 4.83 4.95 5.06 5.06 5.06 5.35 5.31 5.02% 5.24%
Marathon Oil Corp. 6.8 565849AB2 Nts 03/15/2032 16 BBB 9.59 10.75 8.92 7.08 7.22 6.54 6.09 6.31 5.92 5.92 6.42 5.70 7.20% 6.01%
Murphy Oil Corp. 7.05 626717AA0 Nts 05/01/2029 13 BBB 12.44 12.66 10.45 8.24 7.22 6.94 6.78 7.29 6.57 6.57 6.54 6.22 8.16% 6.44%
ONEOK Partners, L.P. 6.15 68268NAB9 Gtd Sr Nt 10/1/2016 0 BBB 2.77 4.23 3.44 2.64 2.74 1.97 2.14 1.67 2.70%
ONEOK Partners, L.P. 6.65 68268NAC7 Gtd Sr Nt 10/1/2036 20 BBB 8.79 9.23 8.25 7.27 6.91 6.21 5.83 5.93 5.41 5.41 5.84 5.55 6.72% 5.60%
Plains All Amern Pipeline L P 5.88 72650RAF9 Sr Nt 08/15/2016 0 BBB 2.78 2.82 2.25 1.68 2.18 1.98 2.28%
Plains All Amern Pipeline L P 6.7 72650RAM4 Sr Nt 5/15/2036 20 BBB 8.24 8.79 7.94 7.08 7.32 6.71 5.78 6.01 5.73 5.73 6.27 5.90 6.79% 5.97%
Talisman Energy Inc. 7.25 87425EAE3 Deb 10/15/2027 11 BBB 7.35 8.66 8.72 8.77 8.81 8.82 8.70 8.71 6.78 6.78 7.29 7.06 8.04% 7.04%
USX Corp. 9.375 902905AL2 Deb 05/15/2022 6 BBB 9.46 10.55 9.03 7.50 8.27 7.09 4.74 4.98 4.09 4.09 4.63 4.09 6.54% 4.27%
USX Corp. 8.5 902905AN8 Deb 03/01/2023 7 BBB 8.69 9.62 8.41 7.20 7.74 7.27 6.82 6.60 5.83 5.83 6.37 5.48 7.16% 5.89%
USX Corp. 8.125 902905AQ1 Deb 07/15/2023 7 BBB 8.59 11.90 9.81 7.72 6.93 6.47 5.83 5.75 5.48 5.48 5.75 5.18 7.07% 5.47%
Valero Energy Corp. (New) 8.75 91913YAB6 Nts 06/15/2030 14 BBB 7.23 7.22 6.58 5.94 6.53 5.57 5.62 5.31 5.15 5.15 5.62 5.48 5.95% 5.42%
Valero Energy Corp. (New) 7.5 91913YAE0 Nts 04/15/2032 16 BBB 6.93 6.97 6.33 5.69 6.28 5.80 5.49 5.16 5.00 5.00 5.34 5.33 5.78% 5.22%
Valero Energy Corp. (New) 6.62 91913YAL4 Nts 06/15/2037 21 BBB 6.94 6.79 6.22 5.64 6.42 5.88 5.63 5.34 5.26 5.26 5.74 5.31 5.87% 5.44%
Valero Energy Corp. (New) 6.12 91913YAM2 Nts 06/15/2017 1 BBB 3.06 3.46 2.73 2.00 2.06 2.07 1.23 1.36 0.58 0.58 0.00 0.00 1.59% 0.19%
Williams Ptns L P 7.25 96950HAD2 Sr Nt 2/1/2017 1 BBB 7.23 7.54 5.32 3.10 2.66 1.94 1.83 1.42 1.64 1.64 1.81 2.30 3.20% 1.92%
Anadarko Petroleum Corp. 7.25 032511AH0 Deb 03/15/2025 9 BBB 7.26 7.28 7.15 7.01 6.91 6.21 6.17 6.12 5.71 5.71 5.27 5.03 6.32% 5.34%
Anadarko Petroleum Corp. 7.73 032511AJ6 Deb 09/15/2096 80 BBB 8.57 8.47 7.85 7.22 7.30 6.78 6.81 6.81 6.66 6.66 7.10 6.82 7.25% 6.86%
Anadarko Petroleum Corp. 7.25 032511AK3 Deb 11/15/2096 80 BBB 9.50 9.34 8.40 7.46 7.30 6.78 6.71 6.71 6.43 6.43 6.85 6.50 7.37% 6.59%
Anadarko Petroleum Corp. 7 032511AL1 Deb 11/15/2027 11 BBB 8.70 10.03 8.45 6.86 6.76 6.06 6.02 6.06 5.61 5.61 4.92 4.69 6.65% 5.07%
Anadarko Petroleum Corp. 6.62 032511AM9 Deb 01/15/2028 12 BBB 8.70 10.03 8.45 6.86 6.76 6.06 6.02 6.07 5.66 5.66 5.09 4.84 6.68% 5.20%
Anadarko Petroleum Corp. 7.2 032511AN7 Deb 03/15/2029 13 BBB 8.25 9.58 8.25 6.92 6.83 6.16 5.83 5.87 5.41 5.41 5.12 5.21 6.57% 5.25%
Anadarko Petroleum Corp. 5.95 032511AX5 Sr Nts 09/15/2016 0 BBB 3.42 5.28 3.03 0.77 3.12%
Anadarko Petroleum Corp. 6.45 032511AY3 Sr Nts 09/15/2036 20 BBB 8.55 8.54 7.18 5.81 6.02 5.40 5.30 5.31 4.96 4.96 5.46 4.98 6.04% 5.13%
Buckeye Partners, L.P. 5.12 118230AE1 Fixed Rt Nts 07/01/2017 1 BBB- 3.78 3.78 3.11 2.43 2.41 2.17 2.39 2.49 2.49 2.49 2.63 2.74 2.74% 2.62%
Energen Corp MTN BE 7.32 29265AAP1 MTN Tranche # Tr 00014 7/28/2022 6 BBB- 9.51 11.40 9.19 6.98 6.69 6.75 6.53 5.46 4.86 4.86 5.15 5.03 6.87% 5.01%
Energy Transfer Partners, L.P. 6.12 29273RAE9 Sr Nt 2/15/2017 1 BBB- 5.06 5.79 4.59 3.39 2.04 1.83 2.00 1.21 1.43 1.43 1.72 1.73 2.69% 1.63%
Energy Transfer Partners, L.P. 6.62 29273RAF6 Sr Nt 10/15/2036 20 BBB- 8.59 8.30 7.54 6.78 7.01 6.34 5.89 5.98 5.74 5.74 6.19 5.93 6.67% 5.95%
Enterprise Prods Oper L P 8.38 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB- 10.48 10.94 10.58 10.21 9.66 9.50 9.14 4.80 0.00 0.00 4.92 4.91 7.09% 3.28%
Kerr-McGee Corp. 7.125 492386AK3 Deb 10/15/2027 11 BBB- 7.85 9.37 8.20 7.03 6.54 6.02 5.98 5.93 5.73 5.73 6.25 5.43 6.67% 5.80%
Kerr-McGee Corp. 7.875 492386AT4 Nts 09/15/2031 15 BBB- 8.10 9.22 7.84 6.46 6.48 6.19 5.94 5.82 5.18 5.18 5.79 5.20 6.45% 5.39%
Kerr-McGee Corp. 6.95 492386AU1 Nts 07/01/2024 8 BBB- 7.20 8.52 6.94 5.35 5.31 4.56 4.52 4.46 3.91 3.91 4.44 4.21 5.28% 4.19%
Northwest Pipeline 7.12 667748AF4 Deb 12/01/2025 9 BBB- 9.09 8.07 7.06 6.05 6.37 5.62 4.67 4.49 4.34 4.34 4.91 4.59 5.80% 4.61%
Sunoco Logistics Ptns Operatio 6.12 86765BAE9 Sr Nt 05/15/2016 0 BBB- 2.12 4.16 3.14%
Union Pacific Resources Group 7.5 907834AB1 Deb 10/15/2026 10 BBB- 8.25 9.58 8.00 6.41 6.38 5.69 5.66 5.60 4.62 4.62 5.12 4.88 6.23% 4.87%
Union Pacific Resources Group 7.5 907834AC9 Deb 11/01/2096 -116 BBB- 9.50 9.34 8.43 7.52 7.60 7.09 7.02 7.01 6.73 6.73 7.11 6.77 7.57% 6.87%
Union Pacific Resources Group 7.05 907834AF2 Deb 05/15/2018 2 BBB- 4.84 4.84 4.95 5.06 5.13 3.01 3.19 3.29 3.29 3.29 3.57 4.06 4.04% 3.64%
Union Pacific Resources Group 7.15 907834AG0 Deb 05/15/2028 12 BBB- 8.25 9.27 7.86 6.45 6.40 5.86 5.82 5.33 5.31 5.31 5.06 4.79 6.31% 5.05%
Williams Companies, Inc. (The) 7.625 969457AW0 Nts 07/15/2019 3 BBB- 13.20 13.41 13.36 13.30 13.65 12.92 12.88 10.39 8.03 8.03 4.36 4.26 10.65% 5.55%
Williams Companies, Inc. (The) 7.5 969457BB5 Deb 01/15/2031 15 BBB- 12.52 11.10 9.75 8.39 7.84 7.56 6.68 6.02 5.92 5.92 6.38 6.08 7.85% 6.13%
Williams Companies, Inc. (The) 7.75 969457BD1 Nts 06/15/2031 15 BBB- 12.74 11.36 9.94 8.52 8.03 7.69 6.72 6.16 6.17 6.17 6.66 6.26 8.04% 6.36%
Williams Companies, Inc. (The) 7.875 969457BG4 Nts 09/01/2021 5 BBB- 12.08 11.77 9.59 7.41 6.83 6.48 5.53 4.28 4.18 4.18 4.61 4.45 6.78% 4.41%
Williams Companies, Inc. (The) 8.75 969457BM1 Nts 03/15/2032 16 BBB- 13.48 11.67 10.15 8.63 8.34 8.23 6.93 6.37 6.33 6.33 6.88 6.54 8.32% 6.58%
Boardwalk Pipelines Llc 5.5 096629AA8 Nt 2/1/2017 1 BB+ 4.40 6.70 5.28 3.86 3.94 2.79 2.00 2.55 2.55 2.55 2.69 2.12 3.45% 2.45%
Boardwalk Pipelines Lp 5.88 096630AA6 Sr Nt 11/15/2016 0 BB+ 5.03 5.86 5.70 5.53 2.26 1.98 2.17 1.29 3.73%
Pioneer Natural Resources Co. 6.88 723787AF4 Sr Nts 05/01/2018 2 BB+ 4.94 5.05 3.97 2.88 2.87 2.19 2.10 2.20 1.97 1.97 2.26 2.19 2.88% 2.14%
Pioneer Natural Resources Co. 6.65 723787AG2 Sr Nts 03/15/2017 1 BB+ 5.04 5.03 4.05 3.07 2.16 1.70 1.73 2.33 1.37 1.37 1.38 1.58 2.57% 1.44%
Chesapeake Energy Corp. 6.5 165167BS5 Sr Nts 08/15/2017 1 BB- 10.61 21.21 12.15 15.47 11.70 6.49 4.36 4.36 2.56 1.65 9.06% 2.86%
Chesapeake Energy Corp. 6.88 165167BU0 Sr Nts 11/15/2020 4 BB- 11.48 22.96 19.47 17.66 16.04 10.54 8.58 8.58 8.85 6.64 13.08% 8.02%
Chesapeake Energy Corp. 2.75 165167BW6 Contingent Sr Nt Conv 11/15/2035 19 BB- 2.76 12.40 24.79 24.83 24.85 24.87 24.90 24.99 24.99 21.04% 24.99%
GP-15
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
Chesapeake Energy Corp. 2.5 165167BZ9 Contingent Sr Nt Conv 5/15/2037 21 BB- 7.11 8.73 6.35 3.96 2.98 2.95 2.85 2.56 2.53 2.53 2.51 2.47 3.96% 2.50%
Chesapeake Energy Corp. 2.5 165167CA3 Sr Contingent Conv Nt 5/15/2037 21 BB- 7.11 8.73 6.35 3.96 2.98 2.95 2.85 2.56 2.53 2.53 2.51 2.47 3.96% 2.50%
Chesapeake Energy Corp. 2.25 165167CB1 Contingent Sr Nt Conv 12/15/2038 22 BB- 10.21 12.99 9.31 5.63 4.17 3.51 3.36 2.85 2.65 2.65 2.59 2.35 5.19% 2.53%
Chesapeake Energy Corp. 7.25 165167CC9 Sr Nt 12/15/2018 2 BB- 10.88 21.76 15.85 14.86 11.94 7.48 5.84 5.84 5.28 3.01 10.27% 4.71%
Plains Exploration & Production Company7 726505AC4 SrNts 03/15/2017 1 BB-
Swift Energy Co. 7.12 870738AF8 SrNts 06/01/2017 1 BB-
KN Energy 6.67 482620AS0 Deb 11/01/2027 11 BB 7.29 7.30 7.30 7.30 7.31 7.31 7.31 7.32 7.32 7.32 7.33 7.33 7.31% 7.33%
KN Energy 7.25 482620AW1 Sr Deb 03/01/2028 12 BB 8.76 8.60 8.23 7.85 5.96 6.78 6.10 6.21 6.24 6.24 7.01 6.33 7.03% 6.53%
Range Resources Corp. 7.5 75281AAH2 Sr Sub Nts 10/01/2017 1 BB 5.12 5.02 4.88 4.74 4.58 4.38 4.18 3.93 3.29 3.29 2.93 2.43 4.06% 2.88%
Range Resources Corp. 7.25 75281AAJ8 Sr Sub Nts 05/01/2018 2 BB 5.51 5.45 5.39 5.32 5.24 5.15 5.06 4.95 4.71 4.71 4.58 4.41 5.04% 4.57%
Berry Petroleum Co. 8.25 085789AC9 Sr SubNts 11/01/2016 0 B 2.68 2.10 1.11 0.12 1.50%
Cimarex Energy Co. 7.12 171798AA9 SrNts 05/01/2017 1 NR 4.17 3.99 3.74 3.49 3.19 2.79 2.35 1.74 3.18%
Pioneer Natural Resources Co. 7.2 723787AB3 Sr Nt 6/15/2028 12 NR 6.25 6.92 6.34 5.75 5.87 5.46 4.72 4.79 4.30 4.30 4.86 4.82 5.36% 4.66%
Range Resources Corp. 7.5 75281AAG4 Sr Sub Nts 05/15/2016 0 NR
Sunoco, Inc. 5.75 86764PAD1 Nts 01/15/2017 1 NR 5.03 4.48 3.76 3.03 2.39 2.13 2.33 1.55 1.43 1.43 1.77 2.67% 1.60%
129 123 122 124 124 122 122 121 121 117 117 116 115 126 118
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.50% 4.76%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.24% 4.63%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.71% 5.30%
Investment Grade (BBB- & Above) 6.26% 5.44%
Say: 5.25%
All Bonds
GP-16
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS VL Est EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF
Ratio
Ke
Estimate -
Cash Flow
(Hist. P/CF)
Ke
Estimate -
Cash Flow
(Est. P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
Boardwalk BWP 17.18 1.20 1.30 14.32 13.21 6.99% 7.57% 2.18 2.50 7.88 6.87 12.69% 14.55%
Enbridge Energy Partners LLP EEP 24.35 0.32 0.50 76.10 48.71 1.31% 2.05% 2.26 2.15 10.78 11.33 9.28% 8.83%
Energy Transfer ETP 35.86 0.19 1.45 188.75 24.73 0.53% 4.04% 6.93 3.05 5.18 11.76 19.32% 8.50%
EnLink Midstream Partners LP ENLK 17.52 0.30 58.39 1.71% 0.45 38.93 2.57%
Enterprise Products EPD 25.95 1.20 1.40 21.62 18.53 4.62% 5.40% 2.01 1.95 12.91 13.31 7.75% 7.51%
EQT Midstream Partners LP EQM 74.22 5.20 5.50 14.27 13.49 7.01% 7.41% 7.45 8.00 9.96 9.28 10.04% 10.78%
ONEOK Partners LP OKS 41.50 2.25 2.50 18.44 16.60 5.42% 6.02% 4.15 4.85 10.00 8.56 10.00% 11.69%
Spectra Energy Partners, LP SEP 43.18 3.10 3.45 13.93 12.52 7.18% 7.99% 5.22 5.50 8.27 7.85 12.09% 12.74%
Western Gas Equity Partners, LP WGP 43.12 1.53 0.00 28.18 3.55% 1.52 0.00 28.37 3.52%
Western Gas Partners LP WES 56.36 1.75 2.75 32.20 20.49 3.11% 4.88% 4.80 6.00 11.74 9.39 8.52% 10.65%
Williams Ptrs. WPZ 35.98 1.75 20.56 4.86% 0.43 2.70 83.67 13.33 1.20% 7.50%
Average 45.31 24.72 4.41% 5.19% 18.88 13.06 9.44% 9.53%
Median 21.62 19.51 4.62% 5.14% 10.39 10.36 9.64% 9.74%
High 188.75 58.39 7.18% 7.99% 83.67 38.93 19.32% 14.55%
Low 13.93 12.52 0.53% 1.71% 5.18 6.87 1.20% 2.57%
Say 5.00% 9.70%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
2017 Assessment Year
Industry: Gas Pipelines
GP-17
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
XTO Energy Inc. 5.65 98385XAH9 Sr Nts 04/01/2016 0 AAA 5.60 5.62 5.61%
XTO Energy Inc. 6.1 98385XAJ5 Sr Nts 04/01/2036 20 AAA 4.69 4.64 4.68 4.71 4.73 4.54 4.55 4.56 4.68 4.68 4.96 5.00 4.70% 4.88%
XTO Energy Inc. 6.25 98385XAL0 Sr Nts 08/01/2017 1 AAA 5.81 5.83 5.84 5.85 5.88 5.90 5.93 5.95 6.02 6.02 6.04 6.06 5.93% 6.04%
XTO Energy Inc. 6.75 98385XAM8 Sr Nts 08/01/2037 21 AAA 4.82 4.77 4.80 4.82 4.72 4.55 4.56 4.57 4.73 4.73 4.99 4.97 4.75% 4.90%
XTO Energy Inc. 5.5 98385XAP1 Sr Nts 06/15/2018 2 AAA 5.02 5.03 5.06 5.09 5.07 5.05 5.08 5.11 5.15 5.15 5.19 5.21 5.10% 5.18%
XTO Energy Inc. 6.38 98385XAQ9 Sr Nts 06/15/2038 22 AAA 4.78 4.73 4.71 4.68 4.67 4.52 4.48 4.49 4.67 4.67 4.93 4.88 4.68% 4.83%
Texaco Capital 9.75 881685AN1 GtdDeb 03/15/2020 4 AA 7.76 7.73 7.78 7.82 7.87 7.79 7.87 7.77 7.84 7.84 8.00 8.07 7.84% 7.97%
Texaco Capital 8.875 881685AV3 GtdDeb 09/01/2021 5 AA 6.79 6.74 6.89 7.04 7.08 6.97 7.02 6.73 6.78 6.78 6.96 7.02 6.90% 6.92%
Texaco Capital 8.625 881685AX9 GtdDeb 11/15/2031 15 AA 5.80 5.78 5.78 5.77 5.72 5.49 5.50 5.55 5.48 5.48 5.73 5.74 5.65% 5.65%
Texaco Capital 8.625 881685AY7 GtdDeb 04/01/2032 16 AA 5.74 5.78 5.82 5.85 5.84 5.68 5.70 5.71 5.67 5.67 5.94 5.95 5.78% 5.85%
Texaco Capital 8 881685BB6 GtdDeb 08/01/2032 16 AA 5.62 5.66 5.70 5.73 5.73 5.56 5.58 5.59 5.50 5.50 5.76 5.77 5.64% 5.68%
ANR Pipeline 7.38 001814AQ5 Deb 2/15/2024 8 A- 6.30 6.20 6.23 6.26 6.28 6.15 6.20 6.23 6.32 6.32 6.12 6.13 6.23% 6.19%
ANR Pipeline 9.62 001814AR3 Deb 11/1/2021 5 A- 7.46 7.56 7.54 7.52 7.57 7.32 7.11 7.19 7.23 7.23 7.37 7.45 7.38% 7.35%
EOG Resources, Inc. 5.88 26875PAA9 Sr Nts 09/15/2017 1 A- 5.52 5.55 5.55 5.55 5.57 5.57 5.60 5.60 5.65 5.65 5.68 5.70 5.60% 5.68%
Enron Oil & Gas 6.65 293562AD6 Nts 04/01/2028 12 A- 5.73 5.69 5.77 5.85 5.92 5.65 5.66 5.68 5.73 5.73 5.98 5.88 5.77% 5.86%
Transcanada Pipelines Ltd 9.88 893526BY8 Deb 01/01/2021 5 A- 7.85 7.89 7.83 7.76 7.77 7.73 7.72 7.66 7.69 7.69 7.85 7.86 7.77% 7.80%
Transcont'l Gas PipeLine 7.08 893570BL4 Deb 07/15/2026 10 A- 6.92 7.08 6.63 6.17 6.17 5.94 5.80 5.69 5.78 5.78 5.95 5.84 6.15% 5.86%
Transcont'l Gas PipeLine 7.25 893570BM2 Deb 12/01/2026 10 A- 6.95 7.17 6.77 6.36 6.37 6.12 5.98 5.86 6.05 6.05 6.23 6.11 6.33% 6.13%
Atlantic Richfield 9 048825AW3 Deb 04/01/2021 5 A 7.25 7.21 7.37 7.53 7.61 7.45 7.34 7.32 7.22 7.22 7.39 7.43 7.36% 7.35%
Atlantic Richfield 9 048825AY9 Deb 05/01/2031 15 A 6.71 6.59 6.63 6.66 6.69 6.51 6.19 6.24 6.23 6.23 6.54 6.59 6.48% 6.45%
Atlantic Richfield 9.125 048825AZ6 Deb 08/01/2031 15 A 6.33 6.24 6.34 6.43 6.45 6.27 6.22 6.28 6.38 6.38 6.70 6.76 6.40% 6.61%
Atlantic Richfield 8.25 048825BA0 Deb 02/01/2022 6 A 6.83 6.78 6.70 6.61 6.65 6.52 6.60 6.37 6.55 6.55 6.72 6.70 6.63% 6.66%
Atlantic Richfield 8.75 048825BB8 Deb 03/01/2032 16 A 6.63 6.50 6.54 6.57 6.56 6.30 6.31 6.27 6.12 6.12 6.40 6.38 6.39% 6.30%
Burlington Resources Inc. 9.125 122014AE3 Deb 10/01/2021 5 A 7.62 7.54 7.40 7.26 7.22 7.09 7.14 7.31 7.06 7.06 7.21 7.31 7.27% 7.19%
Burlington Resources Inc. 8.2 122014AH6 Deb 03/15/2025 9 A 7.19 7.35 6.90 6.45 6.49 6.27 6.32 6.30 6.38 6.38 6.35 6.32 6.56% 6.35%
Burlington Resources Inc. 6.875 122014AJ2 Deb 02/15/2026 10 A 6.81 6.53 6.21 5.88 5.92 5.94 5.90 5.87 5.80 5.80 6.02 5.95 6.05% 5.92%
Burlington Resources Inc. 7.375 122014AL7 Deb 03/01/2029 13 A 7.18 7.02 6.62 6.22 6.17 5.90 5.92 5.82 5.81 5.81 6.05 5.90 6.20% 5.92%
Burlington Resources Fin 7.2 12201PAB2 Gtd Nt 8/15/2031 15 A 6.65 6.77 6.44 6.10 5.99 5.89 5.63 5.49 5.49 5.49 5.75 5.62 5.94% 5.62%
Conoco Inc 6.95 208251AE8 Nts 04/15/2029 13 A 6.78 6.62 6.23 5.84 5.80 5.56 5.58 5.49 5.47 5.47 5.70 5.56 5.84% 5.58%
ConocoPhillips 5.9 20825CAF1 Nts 10/15/2032 16 A 6.11 6.14 5.67 5.19 5.37 5.05 4.95 5.06 5.00 5.00 5.25 5.13 5.33% 5.13%
Conoco Funding 7.25 20825UAC8 Sr Nt 10/15/2031 15 A 6.68 6.85 6.62 6.38 5.97 5.89 5.68 5.50 5.55 5.55 5.75 5.68 6.01% 5.66%
Louisiana Land/Exp 7.65 546268AG8 Deb 12/01/2023 7 A 6.81 6.67 6.44 6.20 6.23 6.04 6.15 6.13 6.22 6.22 6.42 6.52 6.34% 6.39%
Occidental Petroleum Corp. 9.25 674599BE4 Sr Deb 08/01/2019 3 A 7.63 7.62 7.65 7.67 7.69 7.64 7.70 7.76 7.84 7.84 7.94 7.95 7.74% 7.91%
Occidental Petroleum Corp. 7.2 674599BM6 Sr Deb 4/1/2028 12 A 6.24 6.12 5.86 5.60 5.63 5.42 5.35 5.43 5.49 5.49 5.79 5.79 5.68% 5.69%
Occidental Petroleum Corp. 8.45 674599BT1 Sr Nts 02/15/2029 13 A 6.28 6.16 5.90 5.63 5.96 5.74 5.67 5.76 5.81 5.81 6.13 6.13 5.91% 6.02%
Occidental Pete Corp Med Term 8.75 67461FED5 MTN Tranche # Tr 00100 1/15/2023 7 A 6.90 6.81 6.85 6.89 6.93 6.78 6.85 6.92 6.99 6.99 7.20 7.14 6.94% 7.11%
Phillips Petroleum 6.65 718507BH8 Deb 07/15/2018 2 A 6.16 6.27 6.19 6.11 6.14 6.11 6.14 6.10 6.13 6.13 6.18 6.21 6.16% 6.17%
Phillips Petroleum 7 718507BK1 Deb 03/30/2029 13 A 7.02 6.86 6.44 6.02 5.97 5.73 5.63 5.53 5.70 5.70 5.92 5.73 6.02% 5.78%
Apache Corp. 7.7 037411AJ4 Nts 03/15/2026 10 BBB+ 6.62 6.57 6.55 6.52 6.57 6.32 6.21 6.26 6.24 6.24 6.53 6.44 6.42% 6.40%
Apache Corp. 7.95 037411AK1 Nts 04/15/2026 10 BBB+ 6.71 6.66 6.69 6.72 6.59 6.35 6.35 6.20 6.30 6.30 6.60 6.41 6.49% 6.44%
Apache Corp. 7.625 037411AL9 Deb 11/01/2096 80 BBB+ 7.95 7.68 6.87 6.05 6.24 5.81 5.60 5.75 5.84 5.84 6.34 5.86 6.32% 6.01%
Apache Corp. 7.38 037411AM7 Deb 08/15/2047 31 BBB+ 7.45 7.20 6.50 5.80 5.96 5.61 5.44 5.56 5.51 5.51 5.91 5.53 6.00% 5.65%
Apache Corp. 7 037411AN5 Sr Nts 02/01/2018 2 BBB+ 6.59 6.74 6.65 6.55 6.57 6.53 6.55 6.56 6.57 6.57 6.64 6.64 6.60% 6.62%
Apache Corp. 7.62 037411AP0 Sr Nts 07/01/2019 3 BBB+ 6.66 7.03 6.89 6.74 6.76 6.66 6.63 6.65 6.63 6.63 6.76 6.74 6.73% 6.71%
Apache Corp. 6 037411AR6 Nts 01/15/2037 21 BBB+ 6.84 7.28 6.46 5.64 5.66 5.27 5.23 5.26 5.14 5.14 5.41 5.23 5.71% 5.26%
Canadian Natural Resources Limited6.45 136385AE1 Nt 6/30/2033 17 BBB+ 7.96 8.57 7.62 6.66 6.62 6.29 5.91 5.87 5.86 5.86 5.97 5.74 6.58% 5.86%
Devon Fin Corp 7.95 251799AA0 Sr Deb 04/15/2032 16 BBB+ 8.57 10.26 8.86 7.45 7.47 6.90 6.54 6.61 6.30 6.30 6.54 6.29 7.34% 6.38%
ENSCO International Inc. 7.2 26874QAB6 Deb 11/15/2027 11 BBB+ 10.61 12.85 11.79 10.72 10.03 10.00 9.15 9.08 8.06 8.06 8.17 7.86 9.70% 8.03%
Enterprise Products Oper 6.65 293791AP4 Sr Nts'B' 10/15/2034 18 BBB+ 6.67 6.41 6.11 5.80 5.88 5.57 5.31 5.39 5.56 5.56 5.79 5.54 5.80% 5.63%
Enterprise Products Oper 5.75 293791AT6 Sr Nts'B' 03/01/2035 19 BBB+ 6.33 5.99 5.74 5.48 5.42 5.19 5.05 5.12 5.24 5.24 5.48 5.28 5.46% 5.33%
Enterprise Prods Oper L P 4.59 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB+ 10.46 10.92 10.56 10.20 9.65 9.49 9.13 4.77 4.89 4.88 8.50% 4.89%
OceanEnergy 8.25 674812AK8 Sr Nts 'B' 07/01/2018 2 BBB+ 8.14 8.24 7.99 7.74 7.59 7.65 7.64 7.83 7.82 7.82 7.88 7.89 7.85% 7.86%
Amerada Hess Corp. 7.875 023551AF1 Nts 10/01/2029 13 BBB 7.96 8.84 7.91 6.97 7.02 6.53 6.54 6.51 6.41 6.41 6.76 6.57 7.04% 6.58%
Amerada Hess Corp. 7.3 023551AJ3 Nts 08/15/2031 15 BBB 8.32 8.62 7.70 6.78 6.76 6.32 6.26 6.31 6.23 6.23 6.63 6.31 6.87% 6.39%
Diamond Shamrock 7.65 252747AF7 Deb 07/01/2026 10 BBB 6.42 6.38 6.13 5.87 6.01 5.92 5.91 5.82 5.89 5.89 6.10 6.16 6.04% 6.05%
Enbridge Energy Partners, L.P. 5.95 29250RAD8 Sr Nts 'B' 06/01/2033 17 BBB 6.81 6.94 6.79 6.63 6.61 6.41 6.42 5.81 5.96 5.96 6.25 6.18 6.40% 6.13%
Enbridge Energy Partners, L.P. 5.88 29250RAH9 Nt 12/15/2016 0 BBB 5.75 5.80 5.77 5.73 5.75 5.74 5.77 5.80 5.84 5.84 5.78% 5.84%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
GP-18
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
Kinder Morgan Egy Ptnrs 7.4 494550AJ5 Nt 03/15/2031 15 BBB 7.94 8.01 7.50 6.98 7.00 6.89 6.47 6.61 6.31 6.31 6.65 6.32 6.92% 6.43%
Kinder Morgan Egy Ptnrs 7.75 494550AL0 Nt 03/15/2032 16 BBB 8.34 8.13 7.67 7.20 7.19 6.89 6.71 6.59 6.33 6.33 6.63 6.35 7.03% 6.44%
Kinder Morgan Egy Ptnrs 7.3 494550AQ9 Sr Nt 08/15/2033 17 BBB 8.11 7.85 7.44 7.03 7.07 6.68 6.46 6.30 6.19 6.19 6.45 6.24 6.83% 6.29%
Kinder Morgan Egy Ptnrs 6 494550AU0 Sr Nt 02/01/2017 1 BBB 5.89 5.88 5.86 5.83 5.84 5.85 5.86 5.89 5.93 5.93 5.95 5.98 5.89% 5.95%
Kinder Morgan Egy Ptnrs 6.5 494550AV8 Sr Nt 02/01/2037 21 BBB 7.86 7.72 7.20 6.67 6.72 6.17 6.05 6.13 6.06 6.06 6.27 5.95 6.57% 6.09%
Kinder Morgan Egy Ptnrs 6.95 494550AW6 Sr Nt 01/15/2038 22 BBB 7.99 7.85 7.27 6.69 6.73 6.37 6.15 6.11 6.08 6.08 6.33 6.01 6.64% 6.14%
Kinder Morgan Fin Co Ulc 6.4 49455WAF3 Gtd Nt 01/05/2036 20 BBB 7.70 7.59 7.69 7.78 7.79 7.56 7.45 7.41 7.31 7.31 7.62 7.46 7.56% 7.46%
Lakehead Pipe Line Co 7 511546AA1 Sr Nt 10/1/2018 2 BBB 6.63 6.63 6.67 6.71 6.72 6.69 6.72 6.74 6.76 6.76 6.80 6.81 6.72% 6.79%
Marathon Oil Corp. 6.8 565849AB2 Nts 03/15/2032 16 BBB 8.80 9.70 8.34 6.98 7.07 6.63 6.35 6.49 6.25 6.25 6.56 6.12 7.13% 6.31%
Murphy Oil Corp. 7.05 626717AA0 Nts 05/01/2029 13 BBB 10.78 10.94 9.36 7.78 7.15 6.98 6.89 7.19 6.77 6.77 6.76 6.58 7.83% 6.70%
ONEOK Partners, L.P. 6.15 68268NAB9 Gtd Sr Nt 10/1/2016 0 BBB 6.01 6.08 6.07 6.06 6.07 6.08 6.10 6.12 6.07%
ONEOK Partners, L.P. 6.65 68268NAC7 Gtd Sr Nt 10/1/2036 20 BBB 8.34 8.70 7.91 7.12 6.84 6.33 6.06 6.13 5.78 5.78 6.07 5.88 6.75% 5.91%
Plains All Amern Pipeline L P 5.88 72650RAF9 Sr Nt 08/15/2016 0 BBB 5.77 5.79 5.80 5.80 5.82 5.84 5.80%
Plains All Amern Pipeline L P 6.7 72650RAM4 Sr Nt 5/15/2036 20 BBB 7.89 8.33 7.66 6.98 7.16 6.71 6.05 6.21 6.02 6.02 6.39 6.14 6.80% 6.18%
Talisman Energy Inc. 7.25 87425EAE3 Deb 10/15/2027 11 BBB 7.30 8.07 8.10 8.13 8.15 8.16 8.08 8.08 7.00 7.00 7.27 7.15 7.71% 7.14%
USX Corp. 9.375 902905AL2 Deb 05/15/2022 6 BBB 9.41 9.90 9.25 8.60 8.92 8.46 7.60 7.71 7.44 7.44 7.64 7.48 8.32% 7.52%
USX Corp. 8.5 902905AN8 Deb 03/01/2023 7 BBB 8.59 9.00 8.48 7.95 8.18 7.99 7.81 7.73 7.46 7.46 7.66 7.35 7.97% 7.49%
USX Corp. 8.125 902905AQ1 Deb 07/15/2023 7 BBB 8.34 9.93 8.94 7.95 7.62 7.43 7.19 7.17 7.08 7.08 7.19 6.99 7.74% 7.09%
Valero Energy Corp. (New) 8.75 91913YAB6 Nts 06/15/2030 14 BBB 7.71 7.71 7.31 6.91 7.28 6.70 6.74 6.56 6.48 6.48 6.76 6.69 6.94% 6.64%
Valero Energy Corp. (New) 7.5 91913YAE0 Nts 04/15/2032 16 BBB 7.11 7.14 6.73 6.31 6.69 6.39 6.20 6.00 5.92 5.92 6.12 6.12 6.39% 6.05%
Valero Energy Corp. (New) 6.62 91913YAL4 Nts 06/15/2037 21 BBB 6.87 6.75 6.33 5.91 6.47 6.08 5.90 5.71 5.66 5.66 5.99 5.70 6.09% 5.78%
Valero Energy Corp. (New) 6.12 91913YAM2 Nts 06/15/2017 1 BBB 5.88 5.92 5.89 5.85 5.87 5.89 5.87 5.90 5.92 5.92 5.92 5.92 5.90% 5.92%
Williams Ptns L P 7.25 96950HAD2 Sr Nt 2/1/2017 1 BBB 7.24 7.26 7.15 7.03 7.03 7.03 7.05 7.07 7.15 7.15 7.18 7.21 7.13% 7.18%
Anadarko Petroleum Corp. 7.25 032511AH0 Deb 03/15/2025 9 BBB 7.25 7.26 7.20 7.13 7.09 6.78 6.77 6.74 6.58 6.58 6.40 6.31 6.84% 6.43%
Anadarko Petroleum Corp. 7.73 032511AJ6 Deb 09/15/2096 80 BBB 8.57 8.47 7.85 7.22 7.30 6.79 6.81 6.81 6.66 6.66 7.10 6.82 7.25% 6.86%
Anadarko Petroleum Corp. 7.25 032511AK3 Deb 11/15/2096 80 BBB 9.50 9.34 8.40 7.46 7.30 6.78 6.71 6.71 6.44 6.44 6.85 6.50 7.37% 6.60%
Anadarko Petroleum Corp. 7 032511AL1 Deb 11/15/2027 11 BBB 7.99 8.82 7.87 6.92 6.87 6.50 6.48 6.51 6.29 6.29 5.96 5.86 6.86% 6.04%
Anadarko Petroleum Corp. 6.62 032511AM9 Deb 01/15/2028 12 BBB 7.82 8.64 7.70 6.75 6.69 6.33 6.31 6.33 6.14 6.14 5.86 5.75 6.70% 5.92%
Anadarko Petroleum Corp. 7.2 032511AN7 Deb 03/15/2029 13 BBB 7.85 8.73 7.88 7.03 6.98 6.60 6.42 6.44 6.21 6.21 6.06 6.11 6.88% 6.13%
Anadarko Petroleum Corp. 5.95 032511AX5 Sr Nts 09/15/2016 0 BBB 5.85 5.92 5.88 5.83 5.83 5.83 5.83 5.85%
GP-19
Company Name Coupon CUSIP Issue
Maturity
Date
Years to
Maturity
Old S&P
Bond Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Gas Pipelines
2017 Assessment Year
Anadarko Petroleum Corp. 6.45 032511AY3 Sr Nts 09/15/2036 20 BBB 8.08 8.07 7.04 6.00 6.14 5.72 5.65 5.66 5.43 5.43 5.76 5.45 6.20% 5.55%
Buckeye Partners, L.P. 5.12 118230AE1 Fixed Rt Nts 07/01/2017 1 BBB- 5.03 5.03 5.00 4.97 4.98 4.97 5.00 5.01 5.03 5.03 5.05 5.06 5.01% 5.05%
Energen Corp MTN BE 7.32 29265AAP1 MTN Tranche # Tr 00014 7/28/2022 6 BBB- 8.17 8.95 8.08 7.20 7.09 7.12 7.04 6.70 6.52 6.52 6.62 6.59 7.22% 6.58%
Energy Transfer Partners, L.P. 6.12 29273RAE9 Sr Nt 2/15/2017 1 BBB- 6.06 6.10 6.05 5.99 5.95 5.96 5.99 5.99 6.04 6.04 6.06 6.09 6.03% 6.06%
Energy Transfer Partners, L.P. 6.62 29273RAF6 Sr Nt 10/15/2036 20 BBB- 8.17 7.93 7.34 6.74 6.91 6.42 6.10 6.16 6.00 6.00 6.31 6.13 6.68% 6.15%
Enterprise Prods Oper L P 8.38 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB- 10.46 10.92 10.56 10.20 9.65 9.49 9.13 4.77 0.00 0.00 4.89 4.88 7.08% 3.26%
Kerr-McGee Corp. 7.125 492386AK3 Deb 10/15/2027 11 BBB- 7.54 8.45 7.76 7.07 6.81 6.53 6.52 6.50 6.41 6.41 6.66 6.27 6.91% 6.45%
Kerr-McGee Corp. 7.875 492386AT4 Nts 09/15/2031 15 BBB- 8.03 8.85 7.89 6.92 6.94 6.76 6.61 6.54 6.16 6.16 6.53 6.19 6.96% 6.29%
Kerr-McGee Corp. 6.95 492386AU1 Nts 07/01/2024 8 BBB- 7.06 7.66 6.98 6.29 6.27 5.99 5.99 5.97 5.79 5.79 5.99 5.91 6.31% 5.90%
Northwest Pipeline 7.12 667748AF4 Deb 12/01/2025 9 BBB- 8.15 7.60 7.11 6.61 6.76 6.42 6.02 5.95 5.90 5.90 6.14 6.02 6.55% 6.02%
Sunoco Logistics Ptns Operatio 6.12 86765BAE9 Sr Nt 05/15/2016 0 BBB- 6.05 6.09 6.07%
Union Pacific Resources Group 7.5 907834AB1 Deb 10/15/2026 10 BBB- 7.92 8.69 7.81 6.93 6.92 6.58 6.57 6.55 6.11 6.11 6.34 6.24 6.90% 6.23%
Union Pacific Resources Group 7.5 907834AC9 Deb 11/01/2096 -116 BBB- 9.50 9.34 8.43 7.52 7.60 7.09 7.02 7.01 6.74 6.74 7.11 6.77 7.57% 6.87%
Union Pacific Resources Group 7.05 907834AF2 Deb 05/15/2018 2 BBB- 6.73 6.74 6.77 6.79 6.80 6.56 6.60 6.63 6.67 6.67 6.72 6.78 6.70% 6.72%
Union Pacific Resources Group 7.15 907834AG0 Deb 05/15/2028 12 BBB- 7.81 8.44 7.60 6.76 6.73 6.44 6.42 6.18 6.18 6.18 6.06 5.93 6.73% 6.06%
Williams Companies, Inc. (The) 7.625 969457AW0 Nts 07/15/2019 3 BBB- 8.98 9.01 8.96 8.91 8.97 8.76 8.72 8.17 7.70 7.70 7.06 7.06 8.33% 7.27%
Williams Companies, Inc. (The) 7.5 969457BB5 Deb 01/15/2031 15 BBB- 11.29 10.13 9.12 8.10 7.73 7.54 6.97 6.57 6.52 6.52 6.80 6.62 7.83% 6.65%
Williams Companies, Inc. (The) 7.75 969457BD1 Nts 06/15/2031 15 BBB- 11.62 10.47 9.38 8.28 7.94 7.71 7.07 6.72 6.73 6.73 7.04 6.79 8.04% 6.85%
Williams Companies, Inc. (The) 7.875 969457BG4 Nts 09/01/2021 5 BBB- 9.46 9.31 8.52 7.72 7.53 7.42 7.14 6.78 6.78 6.78 6.92 6.89 7.60% 6.86%
Williams Companies, Inc. (The) 8.75 969457BM1 Nts 03/15/2032 16 BBB- 12.65 11.07 9.87 8.66 8.45 8.37 7.47 7.09 7.08 7.08 7.44 7.23 8.54% 7.25%
Boardwalk Pipelines Llc 5.5 096629AA8 Nt 2/1/2017 1 BB+ 5.44 5.55 5.49 5.43 5.44 5.41 5.40 5.43 5.46 5.46 5.47 5.48 5.46% 5.47%
Boardwalk Pipelines Lp 5.88 096630AA6 Sr Nt 11/15/2016 0 BB+ 5.83 5.87 5.87 5.86 5.77 5.79 5.81 5.81 5.83%
Pioneer Natural Resources Co. 6.88 723787AF4 Sr Nts 05/01/2018 2 BB+ 6.60 6.62 6.50 6.38 6.39 6.34 6.35 6.38 6.41 6.41 6.46 6.47 6.44% 6.45%
Pioneer Natural Resources Co. 6.65 723787AG2 Sr Nts 03/15/2017 1 BB+ 6.53 6.54 6.50 6.45 6.42 6.42 6.45 6.49 6.52 6.52 6.54 6.58 6.50% 6.55%
Chesapeake Energy Corp. 6.5 165167BS5 Sr Nts 08/15/2017 1 BB- 13.35 16.04 11.89 7.73 6.93 7.14 6.84 6.50 6.39 6.39 6.32 6.31 8.49% 6.34%
Chesapeake Energy Corp. 6.88 165167BU0 Sr Nts 11/15/2020 4 BB- 24.55 6.14 12.27 10.82 10.11 9.51 7.83 7.29 7.29 7.35 6.82 10.00% 7.15%
Chesapeake Energy Corp. 2.75 165167BW6 Contingent Sr Nt Conv 11/15/2035 19 BB- 2.75 11.46 22.91 22.91 22.91 22.91 22.91 22.91 22.91 22.91 22.91 20.04% 22.91%
Chesapeake Energy Corp. 2.5 165167BZ9 Contingent Sr Nt Conv 5/15/2037 21 BB- 5.02 6.21 4.68 3.15 2.70 2.68 2.64 2.52 2.51 2.51 2.50 2.49 3.30% 2.50%
Chesapeake Energy Corp. 2.5 165167CA3 Sr Contingent Conv Nt 5/15/2037 21 BB- 5.02 6.21 4.68 3.15 2.70 2.68 2.64 2.52 2.51 2.51 2.50 2.49 3.30% 2.50%
Chesapeake Energy Corp. 2.25 165167CB1 Contingent Sr Nt Conv 12/15/2038 22 BB- 7.50 10.22 7.08 3.94 3.12 2.79 2.72 2.50 2.41 2.41 2.38 2.29 4.11% 2.36%
Chesapeake Energy Corp. 7.25 165167CC9 Sr Nt 12/15/2018 2 BB- 19.33 23.29 16.68 10.06 8.78 8.55 8.01 7.28 7.05 7.05 6.98 6.71 10.81% 6.91%
Plains Exploration & Production Company7 726505AC4 SrNts 03/15/2017 1 BB-
Swift Energy Co. 7.12 870738AF8 SrNts 06/01/2017 1 BB-
KN Energy 6.67 482620AS0 Deb 11/01/2027 11 BB 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01% 7.01%
KN Energy 7.25 482620AW1 Sr Deb 03/01/2028 12 BB 8.16 8.05 7.83 7.60 6.54 6.99 6.62 6.68 6.70 6.70 7.12 6.76 7.15% 6.86%
Range Resources Corp. 7.5 75281AAH2 Sr Sub Nts 10/01/2017 1 BB 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22% 7.22%
Range Resources Corp. 7.25 75281AAJ8 Sr Sub Nts 05/01/2018 2 BB 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99% 6.99%
Berry Petroleum Co. 8.25 085789AC9 Sr SubNts 11/01/2016 0 B 7.92 7.92 7.92 7.92 7.92%
Cimarex Energy Co. 7.12 171798AA9 SrNts 05/01/2017 1 NR 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87% 6.87%
Pioneer Natural Resources Co. 7.2 723787AB3 Sr Nt 6/15/2028 12 NR 6.67 7.04 6.73 6.41 6.48 6.27 5.91 5.95 5.73 5.73 6.00 5.99 6.24% 5.91%
Sunoco, Inc. 5.75 86764PAD1 Nts 01/15/2017 1 NR 5.71 5.68 5.66 5.64 5.63 5.64 5.66 5.66 5.70 5.70 5.72 5.67% 5.71%
Texaco Capital 7.5 881685BD2 GtdDeb 03/01/2043 27 NR
129 126 124 124 124 123 123 122 121 118 118 118 117
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 6.73% 6.35%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 6.62% 6.28%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 6.02% 5.23%
Investment Grade (BBB- & Above) 6.42% 5.69%
Say: 6.50%
All Bonds
GP-20
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)
Boardwalk BWP 182,800 3,299,700 3,460,600 3,709,200 3,558,900 3,504,450 5.22% 3,509,750 1.00
Enbridge Energy Partners LLP EEP 445,500 5,900,000 - 6,500,000 - 6,200,000 -
Energy Transfer ETP 1,317,000 25,710,000 28,680,000 33,850,000 32,930,000 29,780,000 4.42% 30,805,000 0.97
Enterprise Products EPD 982,600 19,510,000 20,870,000 21,950,000 20,850,000 20,730,000 4.74% 20,860,000 0.99
EQT Midstream Partners, LP EQM 16,766 713,125 792,401 981,585 985,732 847,355 1.98% 889,067 0.95
ONEOK Partners LP OKS 366,789 6,200,000 6,800,000 7,100,000 6,700,000 6,650,000 5.52% 6,750,000 0.99
Spectra Energy Partners, LP SEP 224,000 5,906,000 6,152,000 6,855,000 6,672,000 6,380,500 3.51% 6,412,000 1.00
Targa Resources Partners LP NGLS 233,500 4,472,000 5,164,000 4,251,600 4,207,300 4,361,800 5.35% 4,685,650 0.93
Western Gas Equity Partners, LP WGP 116,628 2,492,466 2,690,651 3,224,199 3,119,461 2,858,333 4.08% 2,905,056 0.98
Western Gas Partners LP WES 114,921 2,492,466 2,690,651 3,196,199 3,091,461 2,844,333 4.04% 2,891,056 0.98
Williams Partners WPZ 949,000 16,487,000 19,675,000 19,000,000 18,563,000 17,743,500 5.35% 19,119,000 0.93
4,504,004 95,700,270 4.71% 98,826,579 0.97
Average 4.42% 0.97
Median 4.58% 0.98
High 5.52% 1.00
Low 1.98% 0.93
Say 4.60% 0.98
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
Industry: Gas Pipelines
GP-21
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
BWP Boardwalk high 13.04$ 12.86$ 14.83$ 16.50$ 17.98$ 18.16$ 17.97$ 17.50$ 17.40$ 17.87$ 17.50$ 18.49$ 17.36$ 17.18$ 15.61$
low 8.86$ 10.09$ 12.09$ 13.96$ 15.56$ 16.42$ 16.30$ 15.97$ 16.05$ 16.53$ 16.02$ 16.66$
EEP Enbridge Energy Partners LLP high 24.22$ 18.30$ 18.82$ 22.47$ 22.40$ 23.46$ 25.18$ 25.46$ 25.49$ 26.37$ 25.05$ 25.99$ 25.48$ 24.35$ 21.74$
low 14.30$ 14.27$ 16.35$ 16.86$ 19.75$ 21.17$ 21.97$ 22.06$ 23.08$ 24.01$ 21.78$ 22.92$
EEQ Enbridge Energy Management LLC high 22.32$ 17.24$ 18.56$ 21.31$ 21.52$ 22.93$ 23.59$ 23.93$ 25.09$ 25.60$ 25.08$ 26.45$ 25.90$ 24.39$ 21.14$
February 4 Stock Split 10358:10000 & Nov 4 1023:1000 low 13.80$ 13.95$ 15.95$ 16.10$ 19.12$ 20.76$ 21.24$ 21.57$ 21.99$ 23.41$ 22.17$ 23.65$
ENLC Enlink Midstream LLC high 15.90$ 12.92$ 11.83$ 15.26$ 16.12$ 16.91$ 16.68$ 17.31$ 17.83$ 17.25$ 18.75$ 19.60$ 18.78$ 17.08$ 14.53$
no Vlueline tissue low 9.31$ 6.41$ 8.08$ 9.91$ 12.51$ 14.39$ 14.77$ 14.73$ 15.30$ 14.80$ 14.70$ 17.40$
ENLK EnLink Midstream Partners LP high 17.04$ 11.84$ 12.60$ 14.71$ 16.80$ 17.79$ 18.45$ 18.30$ 19.89$ 18.84$ 18.22$ 19.30$ 18.03$ 17.52$ 15.18$
low 9.91$ 6.32$ 8.92$ 10.51$ 12.75$ 14.46$ 16.06$ 16.20$ 16.71$ 16.14$ 15.95$ 16.66$
EPD Enterprise Products high 26.70$ 24.12$ 25.69$ 27.49$ 28.14$ 29.43$ 30.11$ 28.32$ 27.84$ 27.80$ 26.44$ 27.20$ 26.67$ 25.95$ 25.87$
low 19.00$ 19.64$ 22.68$ 23.56$ 25.14$ 27.23$ 28.13$ 26.12$ 25.76$ 25.10$ 24.01$ 25.14$
EQM EQT Midstream Partners LP high 75.65$ 74.72$ 77.70$ 80.00$ 79.80$ 80.63$ 80.47$ 80.44$ 80.58$ 78.78$ 77.10$ 76.71$ 76.68$ 74.22$ 74.37$
low 57.88$ 61.13$ 69.15$ 69.22$ 73.46$ 72.28$ 75.66$ 76.25$ 74.49$ 74.32$ 69.21$ 69.20$
EQT EQT Corp high 62.82$ 62.57$ 68.26$ 73.19$ 73.72$ 80.61$ 79.64$ 73.92$ 75.51$ 74.11$ 74.60$ 75.74$ 65.40$ 69.15$ 68.00$
low 48.30$ 54.22$ 54.38$ 63.48$ 66.66$ 71.82$ 72.18$ 67.69$ 68.13$ 63.11$ 63.23$ 64.08$
ETP Energy Transfer high 35.39$ 31.69$ 32.56$ 36.59$ 37.20$ 41.29$ 40.78$ 43.50$ 41.52$ 37.48$ 40.70$ 37.14$ 35.81$ 35.86$ 34.42$
low 20.16$ 18.62$ 25.78$ 29.86$ 31.64$ 35.90$ 36.60$ 36.75$ 35.02$ 34.26$ 32.67$ 32.93$
KMI Kinder Morgan Inc. high 16.47$ 18.48$ 19.32$ 19.40$ 18.25$ 18.95$ 22.31$ 22.79$ 23.20$ 23.36$ 22.55$ 22.45$ 20.59$ 21.40$ 19.09$
low 11.20$ 13.26$ 17.00$ 16.84$ 16.63$ 17.07$ 17.95$ 19.46$ 21.22$ 19.97$ 19.43$ 20.61$
OKE ONEOK Inc. high 25.96$ 25.99$ 30.99$ 38.44$ 44.29$ 47.63$ 49.09$ 49.86$ 51.72$ 51.67$ 55.75$ 59.47$ 56.77$ 52.33$ 40.67$
low 18.98$ 18.88$ 23.34$ 27.91$ 34.56$ 42.45$ 43.37$ 42.79$ 45.89$ 47.67$ 45.41$ 54.00$
OKS ONEOK Partners LP high 30.33$ 30.26$ 34.00$ 37.21$ 39.93$ 40.60$ 42.34$ 42.02$ 40.23$ 42.49$ 42.59$ 47.01$ 42.24$ 41.50$ 36.35$
low 22.65$ 22.00$ 28.26$ 29.59$ 33.78$ 36.53$ 39.15$ 38.50$ 36.13$ 38.18$ 37.64$ 41.06$
SE Spectra Energy Corp. high 27.96$ 30.33$ 31.22$ 31.85$ 32.12$ 36.65$ 37.14$ 36.99$ 44.00$ 43.71$ 42.58$ 41.94$ 41.09$ 41.40$ 34.63$
low 23.29$ 26.11$ 28.86$ 28.84$ 29.76$ 31.37$ 35.73$ 35.30$ 35.28$ 41.23$ 38.76$ 40.15$
MONTANA DEPARTMENT OF REVENUE
Support of Stock Price - From YAHOO Finance
Industry: Gas Pipelines
2017 Assessment Year
GP-22
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
MONTANA DEPARTMENT OF REVENUE
Support of Stock Price - From YAHOO Finance
Industry: Gas Pipelines
2017 Assessment Year
SEP Spectra Energy Partners, LP high 48.80$ 49.70$ 50.48$ 50.43$ 50.38$ 47.58$ 49.45$ 49.39$ 45.91$ 44.89$ 44.30$ 46.46$ 45.84$ 43.18$ 45.57$
low 39.70$ 39.53$ 45.05$ 46.00$ 44.22$ 44.47$ 45.52$ 45.35$ 42.58$ 41.63$ 40.19$ 41.61$
TRGP Targa Resources Corp high 27.00$ 27.61$ 31.41$ 41.32$ 44.97$ 45.64$ 45.37$ 44.77$ 50.87$ 50.35$ 54.12$ 59.35$ 55.20$ 50.01$ 38.74$
low 14.76$ 14.55$ 25.36$ 27.09$ 37.31$ 37.92$ 35.66$ 35.35$ 42.77$ 43.49$ 41.35$ 51.39$
TRP TransCanada P.L. high 34.85$ 37.25$ 39.70$ 41.81$ 42.11$ 45.34$ 47.49$ 48.34$ 48.52$ 47.92$ 46.06$ 46.47$ 45.15$ 45.34$ 41.92$
low 28.40$ 33.20$ 35.06$ 36.76$ 39.13$ 41.29$ 44.77$ 44.78$ 45.23$ 45.18$ 42.69$ 43.71$
WES Western Gas Partners LP high 48.50$ 39.33$ 45.90$ 51.09$ 53.45$ 53.08$ 52.35$ 51.92$ 55.24$ 60.03$ 58.51$ 60.44$ 58.76$ 56.36$ 48.06$
low 27.85$ 25.40$ 37.69$ 39.73$ 46.27$ 45.12$ 48.20$ 47.43$ 46.85$ 53.52$ 53.13$ 52.52$
WGP Western Gas Equity Partners, LP high 37.17$ 30.00$ 35.89$ 42.70$ 45.20$ 44.93$ 39.10$ 37.45$ 42.58$ 46.38$ 45.16$ 45.15$ 42.35$ 43.12$ 37.18$
low 19.82$ 19.21$ 28.96$ 31.67$ 37.17$ 33.93$ 36.60$ 35.52$ 35.81$ 41.28$ 40.75$ 40.01$
WMB Williams Cos high 26.68$ 19.85$ 19.90$ 20.57$ 23.00$ 23.89$ 25.44$ 29.09$ 31.43$ 30.93$ 31.85$ 32.21$ 31.14$ 29.95$ 23.30$
low 12.77$ 10.22$ 14.65$ 14.60$ 18.35$ 19.60$ 19.68$ 22.39$ 27.50$ 28.56$ 27.35$ 28.79$
WPZ Williams Ptrs. high 28.66$ 21.76$ 23.99$ 30.30$ 32.62$ 35.36$ 38.05$ 38.38$ 40.36$ 37.78$ 38.32$ 38.49$ 38.03$ 35.98$ 30.43$
low 15.70$ 12.69$ 17.08$ 19.04$ 26.12$ 30.77$ 33.17$ 34.68$ 35.60$ 35.24$ 32.93$ 33.12$
GP-23
Liquid Pipelines
2017 Capitalization Rate StudyFinal
Capital Structure
Equity 65.00% Page LP-4
Debt 35.00% Page LP-4
Equity Cost of Capital
Capital Asset Pricing Model 9.69% Page LP-5
Dividend Growth Model (g = Earnings Growth) 11.70% Page LP-9
Dividend Growth Model (g = Dividend Growth) 10.25% Page LP-9
10.10%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 5.15% Page LP-15
Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
5.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 65.00% 10.10% 10.10% 6.57%
Debt 35.00% 5.00% 38.00% 3.10% 1.09%
WACC 100.00% 7.65%
WACC (Rounded) 7.70%
Liquid Pipelines - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Liquid Pipelines
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
LP-2
Capital Structure
Equity 65.00% Page LP-4
Debt 35.00% Page LP-4
Equity Cost of Capital
NOI After-tax 5.50% Page LP-16
GCF 8.00% Page LP-16
Debt Cost of Capital
Standard and Poor's Current Yield 6.60% Page LP-19
Calculated Current Yield 4.75% Page LP-20
6.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 65.00% 5.50% 5.50% 3.58%
Debt 35.00% 6.00% 38.00% 3.72% 1.30%
Total 100.00% 4.88%
Total (Rounded) 4.90%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 65.00% 8.00% 8.00% 5.20%
Debt 35.00% 6.00% 38.00% 3.72% 1.30%
WACC 100.00% 6.50%
Total (Rounded) 6.60%
Liquid Pipelines - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Liquid Pipelines
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Liquid Pipelines - NOI After-tax Direct Capitalization Rate
LP-3
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV
Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLease
s
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K
(000) ($000) ($000) ($000) ($000) ($000)
Buckeye BPL PIPEMLP B+ 140,264 64.44 9,039,066 0 4,333,488 154,282 13,526,836 67% 0% 33%
Enbridge Energy Partners LP EEP PIPEMLP B 262,208 25.31 6,636,058 1,191,500 6,500,000 106,017 14,433,575 46% 8% 46%
Enterprise Products EPD PIPEMLP B+ 2,117,588 25.67 54,354,965 0 21,950,000 357,138 76,662,104 71% 0% 29%
Magellan Midstream Partners LP MMP PIPEMLP B++ 227,427 64.31 14,624,693 0 4,262,321 195,729 19,082,744 77% 0% 23%
Nustar Energy LP NS PIPEMLP B 78,616 43.32 3,405,786 218,400 3,084,762 132,289 6,841,237 50% 3% 47%
Phillips 66 Partners PSXP PIPEMLP B+ 107,182 57.28 6,139,559 0 2,357,000 3,647,136 12,143,695 51% 0% 49%
Plains All American PL LP PAA PIPEMLP B+ 669,194 27.15 18,170,859 1,508,000 10,400,000 0 30,078,859 60% 5% 35%
Sunoco Logistics Partners L.P. SXL PIPEMLP B+ 322,382 28.01 9,031,002 0 5,400,000 15,567 14,446,569 63% 0% 37%
Tesoro Logistics LP TLLP PIPEMLP B+ 102,981 50.21 5,170,186 0 4,300,000 99,221 9,569,407 54% 0% 46%
Valero Energy Partners LP VLP PIPEMLP B+ 67,426 47.34 3,192,057 0 906,670 172,746 4,271,473 75% 0% 25%
All Companies 129,764,233 2,917,900 63,494,241 4,880,126 201,056,499 65% 1% 34%
Average 61% 2% 37%
Median 61% 0% 36%
High 77% 8% 49%
Low 46% 0% 23%
Say 65% 0% 35%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2017 Guideline Company Changes
Removed Holly Energy Part. LP (HEP) different ownership structure than the majority of the industry.
Removed Holly Frontier Corporation (HFC) different ownership structure than the majority of the industry.
Removed Kinder Morgan Inc. (KMI) different ownership structure than the majority of the industry.
Removed NuStar GP Holdings, LLC (NSH) to focus on limited partners.
Removed Plains GP Holdings LP (PAGP) to focus on limited partners.
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Liquid Pipelines
2017 Assessment Year
LP-4
Liquid PL
k e = Cost of Equity 9.69%
R f = Risk Free Rate 2.79%
β = Beta 1.15
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2
and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Liquid Pipelines
2017 Assessment Year
k e = R f + β x ERP
"Value Line Selection & Opinion", Value Line (January 6, 2017)
LP-5
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Liquid Pipelines
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR S&P 500, 3 Stage Dividend Growth Model (See Exhibit)
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
LP-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Liquid Pipelines
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 4.00% 6.00%
5
Nominal Growth
Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of
Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update
to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session
Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal
Disability Insurance Trust Funds (June 22, 2016)
LP-7
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value Line
Buckeye BPL PIPEMLP B+ 1.10
Enbridge Energy Partners LP EEP PIPEMLP B 1.15
Enterprise Products EPD PIPEMLP B+ 1.20
Magellan Midstream Partners LP MMP PIPEMLP B++ 1.10
Nustar Energy LP NS PIPEMLP B 1.15
Phillips 66 Partners PSXP PIPEMLP B+ 1.15
Plains All American PL LP PAA PIPEMLP B+ 1.35
Sunoco Logistics Partners L.P. SXL PIPEMLP B+ 1.45
Tesoro Logistics LP TLLP PIPEMLP B+ 1.20
Valero Energy Partners LP VLP PIPEMLP B+ 1.25
Average 1.21
Median 1.15
High 1.45
Low 1.10
Say 1.15
2017 Assessment Year
Industry: Liquid Pipelines
Support for Beta Selection in CAPM
MONTANA DEPARTMENT OF REVENUE
LP-8
Ke = Cost of Equity g = Expected Long Term Growth
D1 = Expected Dividend P0 = Current Price Per Share
A B C D E F G H I J K
Company Name Ticker
Avg. 4Q
Stock
Price
2017
Expected
Dividend Taxable
Entity?
2017 Expected
Dividend Adj
for Tax
Dividend
Yield
Multistage Long
Term Earnings
Growth Estimate
Multistage Long
Term Dividends
Growth Estimate
Cost of
Equity
Cost of
Equity
P0 D1
If taxable = "No"
D1 x (1-.38)D1/P0
g =
Earnings g
g =
Dividends g
Ke
g = Earnings g
Ke
g = Dividend
g
Yahoo Value Line F/C Multi Stg g Wrksht Multi Stg g Wrksht G+H G+I
Buckeye BPL 64.44 5.03 No 3.12 4.84% 7.37% 4.85% 12.21% 9.69%
Enbridge Energy Partners LP EEP 25.31 2.37 No 1.47 5.81% 3.22% 2.96% 9.02% 8.77%
Enterprise Products EPD 25.67 1.67 No 1.04 4.03% 8.31% 6.74% 12.35% 10.77%
Magellan Midstream Partners LP MMP 64.31 3.52 No 2.18 3.39% 6.42% 9.25% 9.82% 12.65%
Nustar Energy LP NS 43.32 0.00 No -3.83% 3.22%
Phillips 66 Partners PSXP 57.28 0.00 No 14.10% 3.22%
Plains All American PL LP PAA 27.15 2.20 No 1.36 5.02% 6.11% 3.59% 11.13% 8.62%
Sunoco Logistics Partners L.P. SXL 28.01 2.20 No 1.36 4.87% 10.20% 11.14% 15.07% 16.01%
Tesoro Logistics LP TLLP 50.21 0.00 No 8.81% 3.22%
Valero Energy Partners LP VLP 47.34 0.00 No 12.59% 3.22%
Average 4.66% 6.75% 5.35% 11.60% 11.09%
Median 4.85% 7.37% 3.59% 11.67% 10.23%
High 5.81% 14.10% 11.14% 15.07% 16.01%
Low 3.39% -3.83% 2.96% 9.02% 8.62%
Say 11.70% 10.25%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Liquid Pipelines
2017 Assessment Year
Ke = (D1 / P0) + g
LP-9
Company Buckeye BPL Company Enbridge Partners EEP Compnay Enterprise Prod. EPD
Value Line 5 yr est. earnings growth 9.00% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 10.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.09 1 30 0.02 1 30 0.11
2 29 0.09 2 29 0.02 2 29 0.11
3 28 0.09 3 28 0.02 3 28 0.11
4 27 0.09 4 27 0.02 4 27 0.11
5 26 0.09 5 26 0.02 5 26 0.11
6 25 0.09 6 25 0.03 6 25 0.10
7 24 0.08 7 24 0.03 7 24 0.10
8 23 0.08 8 23 0.03 8 23 0.09
9 22 0.08 9 22 0.03 9 22 0.09
10 21 0.08 10 21 0.03 10 21 0.09
11 20 0.07 11 20 0.03 11 20 0.08
12 19 0.07 12 19 0.03 12 19 0.08
13 18 0.07 13 18 0.04 13 18 0.08
14 17 0.07 14 17 0.04 14 17 0.07
15 16 0.06 15 16 0.04 15 16 0.07
16 15 0.06 16 15 0.04 16 15 0.06
17 14 0.06 17 14 0.04 17 14 0.06
18 13 0.05 18 13 0.04 18 13 0.06
19 12 0.05 19 12 0.04 19 12 0.05
20 11 0.05 20 11 0.04 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 7.37% Weighted Average 3.22% Weighted Average 8.31%
Value Line 5 yr est. div'd growth 5.00% Value Line 5 yr est. div'd growth 2.00% Value Line 5 yr est. div'd growth 8.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.05 1 30 0.02 1 30 0.08
2 29 0.05 2 29 0.02 2 29 0.08
3 28 0.05 3 28 0.02 3 28 0.08
4 27 0.05 4 27 0.02 4 27 0.08
5 26 0.05 5 26 0.02 5 26 0.08
6 25 0.05 6 25 0.02 6 25 0.08
7 24 0.05 7 24 0.02 7 24 0.08
8 23 0.05 8 23 0.02 8 23 0.07
9 22 0.05 9 22 0.03 9 22 0.07
10 21 0.05 10 21 0.03 10 21 0.07
11 20 0.05 11 20 0.03 11 20 0.07
12 19 0.05 12 19 0.03 12 19 0.07
13 18 0.05 13 18 0.03 13 18 0.06
14 17 0.05 14 17 0.03 14 17 0.06
15 16 0.05 15 16 0.04 15 16 0.06
16 15 0.05 16 15 0.04 16 15 0.06
17 14 0.05 17 14 0.04 17 14 0.05
18 13 0.05 18 13 0.04 18 13 0.05
19 12 0.05 19 12 0.04 19 12 0.05
20 11 0.05 20 11 0.04 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 4.85% Weighted Average 2.96% Weighted Average 6.74%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Liquid Pipelines
2017 Assessment Year
LP-10
Company Magellan Mid MMP Company NuStar Energy NS Company Phillips 66 PSXP
Value Line 5 yr est. earnings growth 7.50% Value Line 5 yr est. earnings growth -8.80% Value Line 5 yr est. earnings growth 19.70%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.08 1 30 -0.09 1 30 0.20
2 29 0.08 2 29 -0.09 2 29 0.20
3 28 0.08 3 28 -0.09 3 28 0.20
4 27 0.08 4 27 -0.09 4 27 0.20
5 26 0.08 5 26 -0.09 5 26 0.20
6 25 0.07 6 25 -0.08 6 25 0.19
7 24 0.07 7 24 -0.07 7 24 0.18
8 23 0.07 8 23 -0.06 8 23 0.17
9 22 0.07 9 22 -0.05 9 22 0.16
10 21 0.07 10 21 -0.05 10 21 0.15
11 20 0.06 11 20 -0.04 11 20 0.14
12 19 0.06 12 19 -0.03 12 19 0.13
13 18 0.06 13 18 -0.02 13 18 0.12
14 17 0.06 14 17 -0.01 14 17 0.11
15 16 0.06 15 16 0.00 15 16 0.10
16 15 0.06 16 15 0.00 16 15 0.09
17 14 0.05 17 14 0.01 17 14 0.08
18 13 0.05 18 13 0.02 18 13 0.07
19 12 0.05 19 12 0.03 19 12 0.06
20 11 0.05 20 11 0.04 20 11 0.06
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 6.42% Weighted Average -3.83% Weighted Average 14.10%
Value Line 5 yr est. div'd growth 12.00% Selected Inflation Rate - CAPM 2.40% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.12 1 30 0.02 1 30 0.02
2 29 0.12 2 29 0.02 2 29 0.02
3 28 0.12 3 28 0.02 3 28 0.02
4 27 0.12 4 27 0.02 4 27 0.02
5 26 0.12 5 26 0.02 5 26 0.02
6 25 0.12 6 25 0.03 6 25 0.03
7 24 0.11 7 24 0.03 7 24 0.03
8 23 0.11 8 23 0.03 8 23 0.03
9 22 0.10 9 22 0.03 9 22 0.03
10 21 0.10 10 21 0.03 10 21 0.03
11 20 0.09 11 20 0.03 11 20 0.03
12 19 0.09 12 19 0.03 12 19 0.03
13 18 0.08 13 18 0.04 13 18 0.04
14 17 0.08 14 17 0.04 14 17 0.04
15 16 0.07 15 16 0.04 15 16 0.04
16 15 0.07 16 15 0.04 16 15 0.04
17 14 0.06 17 14 0.04 17 14 0.04
18 13 0.06 18 13 0.04 18 13 0.04
19 12 0.06 19 12 0.04 19 12 0.04
20 11 0.05 20 11 0.04 20 11 0.04
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 9.25% Weighted Average 3.22% Weighted Average 3.22%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Liquid Pipelines
2017 Assessment Year
LP-11
Company Plains AA PL PAA Company Sunoco Logistics SXL Company Tesoro Logistics TLLP
Value Line 5 yr est. earnings growth 7.00% Value Line 5 yr est. earnings growth 13.50% Value Line 5 yr est. earnings growth 11.30%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.07 1 30 0.14 1 30 0.11
2 29 0.07 2 29 0.14 2 29 0.11
3 28 0.07 3 28 0.14 3 28 0.11
4 27 0.07 4 27 0.14 4 27 0.11
5 26 0.07 5 26 0.14 5 26 0.11
6 25 0.07 6 25 0.13 6 25 0.11
7 24 0.07 7 24 0.12 7 24 0.10
8 23 0.07 8 23 0.12 8 23 0.10
9 22 0.06 9 22 0.11 9 22 0.10
10 21 0.06 10 21 0.11 10 21 0.09
11 20 0.06 11 20 0.10 11 20 0.09
12 19 0.06 12 19 0.10 12 19 0.08
13 18 0.06 13 18 0.09 13 18 0.08
14 17 0.06 14 17 0.08 14 17 0.08
15 16 0.06 15 16 0.08 15 16 0.07
16 15 0.05 16 15 0.07 16 15 0.07
17 14 0.05 17 14 0.07 17 14 0.06
18 13 0.05 18 13 0.06 18 13 0.06
19 12 0.05 19 12 0.06 19 12 0.05
20 11 0.05 20 11 0.05 20 11 0.05
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 6.11% Weighted Average 10.20% Weighted Average 8.81%
Value Line 5 yr est. div'd growth 3.00% Value Line 5 yr est. div'd growth 15.00% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.03 1 30 0.15 1 30 0.02
2 29 0.03 2 29 0.15 2 29 0.02
3 28 0.03 3 28 0.15 3 28 0.02
4 27 0.03 4 27 0.15 4 27 0.02
5 26 0.03 5 26 0.15 5 26 0.02
6 25 0.03 6 25 0.14 6 25 0.03
7 24 0.03 7 24 0.14 7 24 0.03
8 23 0.03 8 23 0.13 8 23 0.03
9 22 0.03 9 22 0.12 9 22 0.03
10 21 0.04 10 21 0.12 10 21 0.03
11 20 0.04 11 20 0.11 11 20 0.03
12 19 0.04 12 19 0.10 12 19 0.03
13 18 0.04 13 18 0.10 13 18 0.04
14 17 0.04 14 17 0.09 14 17 0.04
15 16 0.04 15 16 0.09 15 16 0.04
16 15 0.04 16 15 0.08 16 15 0.04
17 14 0.04 17 14 0.07 17 14 0.04
18 13 0.04 18 13 0.07 18 13 0.04
19 12 0.04 19 12 0.06 19 12 0.04
20 11 0.05 20 11 0.05 20 11 0.04
21 10 0.05 21 10 0.05 21 10 0.05
22 9 0.05 22 9 0.05 22 9 0.05
23 8 0.05 23 8 0.05 23 8 0.05
24 7 0.05 24 7 0.05 24 7 0.05
25 6 0.05 25 6 0.05 25 6 0.05
26 5 0.05 26 5 0.05 26 5 0.05
27 4 0.05 27 4 0.05 27 4 0.05
28 3 0.05 28 3 0.05 28 3 0.05
29 2 0.05 29 2 0.05 29 2 0.05
30 1 0.05 30 1 0.05 30 1 0.05
Weighted Average 3.59% Weighted Average 11.14% Weighted Average 3.22%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Liquid Pipelines
2017 Assessment Year
LP-12
Company Valero Energy VLP
Value Line 5 yr est. earnings growth 17.30%
LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate
1 30 0.17
2 29 0.17
3 28 0.17
4 27 0.17
5 26 0.17
6 25 0.17
7 24 0.16
8 23 0.15
9 22 0.14
10 21 0.13
11 20 0.13
12 19 0.12
13 18 0.11
14 17 0.10
15 16 0.09
16 15 0.09
17 14 0.08
18 13 0.07
19 12 0.06
20 11 0.05
21 10 0.05
22 9 0.05
23 8 0.05
24 7 0.05
25 6 0.05
26 5 0.05
27 4 0.05
28 3 0.05
29 2 0.05
30 1 0.05
Weighted Average 12.59%
Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate
1 30 0.02
2 29 0.02
3 28 0.02
4 27 0.02
5 26 0.02
6 25 0.03
7 24 0.03
8 23 0.03
9 22 0.03
10 21 0.03
11 20 0.03
12 19 0.03
13 18 0.04
14 17 0.04
15 16 0.04
16 15 0.04
17 14 0.04
18 13 0.04
19 12 0.04
20 11 0.04
21 10 0.05
22 9 0.05
23 8 0.05
24 7 0.05
25 6 0.05
26 5 0.05
27 4 0.05
28 3 0.05
29 2 0.05
30 1 0.05
Weighted Average 3.22%
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
MONTANA DEPARTMENT OF REVENUE
Industry: Liquid Pipelines
2017 Assessment Year
LP-13
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
XTO Energy Inc. 5.65 98385XAH9 Sr Nts 04/01/2016 0 AAA 1.09 0.95 1.02%
XTO Energy Inc. 6.1 98385XAJ5 Sr Nts 04/01/2036 20 AAA 3.93 3.85 3.90 3.95 3.97 3.65 3.66 3.67 3.86 3.86 4.34 4.40 3.92% 4.20%
XTO Energy Inc. 6.25 98385XAL0 Sr Nts 08/01/2017 1 AAA 1.27 1.25 1.07 0.88 0.91 0.91 0.92 0.90 1.16 1.16 1.26 1.14 1.07% 1.19%
XTO Energy Inc. 6.75 98385XAM8 Sr Nts 08/01/2037 21 AAA 3.98 3.89 3.92 3.94 3.79 3.50 3.51 3.52 3.76 3.76 4.19 4.15 3.83% 4.03%
XTO Energy Inc. 5.5 98385XAP1 Sr Nts 06/15/2018 2 AAA 1.44 1.41 1.53 1.64 1.33 0.96 1.08 1.19 1.34 1.34 1.64 1.68 1.38% 1.55%
XTO Energy Inc. 6.38 98385XAQ9 Sr Nts 06/15/2038 22 AAA 4.09 4.00 3.96 3.92 3.90 3.64 3.58 3.59 3.87 3.87 4.29 4.19 3.91% 4.12%
Texaco Capital 9.75 881685AN1 GtdDeb 03/15/2020 4 AA 3.09 2.88 2.94 3.00 3.07 2.61 2.80 2.26 2.23 2.23 2.79 2.93 2.74% 2.65%
Texaco Capital 8.875 881685AV3 GtdDeb 09/01/2021 5 AA 2.89 2.68 3.09 3.49 3.56 3.11 3.22 2.15 2.13 2.13 2.68 2.83 2.83% 2.55%
Texaco Capital 8.625 881685AX9 GtdDeb 11/15/2031 15 AA 4.34 4.29 4.27 4.25 4.15 3.73 3.72 3.80 3.63 3.63 4.09 4.09 4.00% 3.94%
Texaco Capital 8.625 881685AY7 GtdDeb 04/01/2032 16 AA 4.29 4.34 4.39 4.44 4.42 4.13 4.14 4.14 4.06 4.06 4.51 4.52 4.29% 4.36%
Texaco Capital 8 881685BB6 GtdDeb 08/01/2032 16 AA 4.37 4.44 4.49 4.54 4.52 4.23 4.24 4.24 4.06 4.06 4.52 4.52 4.35% 4.37%
ANR Pipeline 7.38 001814AQ5 Deb 2/15/2024 8 A- 4.79 4.53 4.59 4.65 4.67 4.28 4.39 4.47 4.66 4.66 4.09 4.08 4.49% 4.28%
ANR Pipeline 9.62 001814AR3 Deb 11/1/2021 5 A- 3.95 4.19 4.06 3.93 4.01 3.17 2.42 2.60 2.53 2.53 2.92 3.10 3.28% 2.85%
EOG Resources, Inc. 5.88 26875PAA9 Sr Nts 09/15/2017 1 A- 1.89 2.08 1.86 1.64 1.63 1.38 1.62 1.19 1.39 1.39 1.57 1.64 1.61% 1.53%
Enron Oil & Gas 6.65 293562AD6 Nts 04/01/2028 12 A- 4.88 4.80 4.96 5.12 5.23 4.68 4.69 4.73 4.82 4.82 5.33 5.11 4.93% 5.09%
Atlantic Richfield 9 048825AW3 Deb 04/01/2021 5 A 3.83 3.62 4.09 4.55 4.75 4.14 3.71 3.53 2.99 2.99 3.55 3.60 3.78% 3.38%
Atlantic Richfield 9 048825AY9 Deb 05/01/2031 15 A 5.63 5.43 5.48 5.53 5.57 5.26 4.70 4.78 4.73 4.73 5.26 5.32 5.20% 5.10%
Atlantic Richfield 9.125 048825AZ6 Deb 08/01/2031 15 A 5.00 4.84 4.99 5.13 5.16 4.85 4.75 4.82 4.98 4.98 5.51 5.58 5.05% 5.36%
Atlantic Richfield 8.25 048825BA0 Deb 02/01/2022 6 A 4.30 4.11 3.80 3.48 3.55 3.07 3.26 2.43 2.89 2.89 3.41 3.29 3.37% 3.20%
Atlantic Richfield 8.75 048825BB8 Deb 03/01/2032 16 A 5.69 5.49 5.54 5.58 5.55 5.12 5.13 5.04 4.76 4.76 5.22 5.18 5.25% 5.05%
Burlington Resources Inc. 9.125 122014AE3 Deb 10/01/2021 5 A 5.07 4.80 4.32 3.84 3.65 3.15 3.26 3.73 2.72 2.72 3.17 3.42 3.65% 3.10%
Burlington Resources Inc. 8.2 122014AH6 Deb 03/15/2025 9 A 6.17 6.50 5.48 4.46 4.53 3.98 4.09 4.00 4.13 4.13 4.05 3.94 4.62% 4.04%
Burlington Resources Inc. 6.875 122014AJ2 Deb 02/15/2026 10 A 6.75 6.17 5.44 4.70 4.78 4.83 4.72 4.63 4.43 4.43 4.95 4.76 5.05% 4.71%
Burlington Resources Inc. 7.375 122014AL7 Deb 03/01/2029 13 A 7.06 6.78 6.07 5.35 5.27 4.74 4.77 4.56 4.50 4.50 4.96 4.66 5.27% 4.71%
Burlington Resources Fin 7.2 12201PAB2 Gtd Nt 8/15/2031 15 A 6.35 6.54 6.00 5.45 5.26 5.09 4.62 4.35 4.33 4.33 4.80 4.55 5.14% 4.56%
Conoco Inc 6.95 208251AE8 Nts 04/15/2029 13 A 6.66 6.38 5.67 4.95 4.87 4.39 4.42 4.21 4.15 4.15 4.61 4.31 4.90% 4.36%
ConocoPhillips 5.9 20825CAF1 Nts 10/15/2032 16 A 6.23 6.28 5.50 4.71 5.02 4.44 4.25 4.44 4.33 4.33 4.79 4.56 4.91% 4.56%
Conoco Funding 7.25 20825UAC8 Sr Nt 10/15/2031 15 A 6.39 6.65 6.28 5.90 5.22 5.07 4.69 4.37 4.44 4.44 4.79 4.65 5.24% 4.63%
Louisiana Land/Exp 7.65 546268AG8 Deb 12/01/2023 7 A 5.67 5.32 4.69 4.05 4.12 3.54 3.82 3.71 3.91 3.91 4.44 4.71 4.32% 4.35%
Occidental Petroleum Corp. 9.25 674599BE4 Sr Deb 08/01/2019 3 A 2.84 2.68 2.66 2.63 2.57 2.17 2.31 2.41 2.45 2.45 2.81 2.71 2.56% 2.66%
Occidental Petroleum Corp. 7.2 674599BM6 Sr Deb 4/1/2028 12 A 5.45 5.21 4.68 4.15 4.19 3.73 3.57 3.73 3.82 3.82 4.44 4.42 4.27% 4.23%
Occidental Petroleum Corp. 8.45 674599BT1 Sr Nts 02/15/2029 13 A 4.85 4.61 4.08 3.55 4.19 3.73 3.57 3.73 3.79 3.79 4.41 4.39 4.06% 4.20%
Occidental Pete Corp Med Term 8.75 67461FED5 MTN Tranche # Tr 00100 1/15/2023 7 A 4.26 4.00 4.06 4.12 4.18 3.73 3.86 4.02 4.12 4.12 4.67 4.45 4.13% 4.41%
Phillips Petroleum 6.65 718507BH8 Deb 07/15/2018 2 A 3.28 3.98 3.27 2.56 2.63 2.27 2.37 1.75 1.59 1.59 1.94 1.99 2.44% 1.84%
Phillips Petroleum 7 718507BK1 Deb 03/30/2029 13 A 7.03 6.76 6.01 5.26 5.15 4.67 4.46 4.25 4.58 4.58 5.01 4.61 5.20% 4.73%
Apache Corp. 7.7 037411AJ4 Nts 03/15/2026 10 BBB+ 5.57 5.46 5.39 5.32 5.41 4.86 4.60 4.68 4.59 4.59 5.25 5.03 5.06% 4.96%
Apache Corp. 7.95 037411AK1 Nts 04/15/2026 10 BBB+ 5.55 5.44 5.49 5.53 5.25 4.71 4.69 4.35 4.51 4.51 5.17 4.73 4.99% 4.80%
Apache Corp. 7.625 037411AL9 Deb 11/01/2096 80 BBB+ 7.95 7.68 6.86 6.04 6.23 5.80 5.58 5.74 5.83 5.83 6.33 5.85 6.31% 6.00%
Apache Corp. 7.38 037411AM7 Deb 08/15/2047 31 BBB+ 7.45 7.18 6.36 5.54 5.73 5.30 5.08 5.24 5.17 5.17 5.67 5.20 5.76% 5.35%
Apache Corp. 7 037411AN5 Sr Nts 02/01/2018 2 BBB+ 3.75 4.94 3.99 3.03 3.05 2.44 2.36 2.26 1.77 1.77 2.34 2.04 2.81% 2.05%
Apache Corp. 7.62 037411AP0 Sr Nts 07/01/2019 3 BBB+ 3.16 4.89 4.07 3.25 3.28 2.61 2.31 2.26 1.84 1.84 2.51 2.23 2.85% 2.19%
Apache Corp. 6 037411AR6 Nts 01/15/2037 21 BBB+ 7.13 7.71 6.60 5.48 5.52 4.93 4.85 4.90 4.71 4.71 5.13 4.85 5.54% 4.90%
Canadian Natural Resources Limited6.45 136385AE1 Nt 6/30/2033 17 BBB+ 8.56 9.36 8.06 6.76 6.70 6.21 5.60 5.54 5.53 5.53 5.69 5.32 6.57% 5.51%
Devon Fin Corp 7.95 251799AA0 Sr Deb 04/15/2032 16 BBB+ 8.80 10.95 9.09 7.23 7.27 6.40 5.84 5.94 5.42 5.42 5.81 5.40 6.96% 5.54%
ENSCO International Inc. 7.2 26874QAB6 Deb 11/15/2027 11 BBB+ 12.48 15.42 14.06 12.69 11.74 11.71 10.46 10.36 8.73 8.73 8.91 8.40 11.14% 8.68%
Enterprise Products Oper 6.65 293791AP4 Sr Nts'B' 10/15/2034 18 BBB+ 6.67 6.31 5.85 5.38 5.51 5.02 4.59 4.73 4.99 4.99 5.36 4.95 5.36% 5.10%
Enterprise Products Oper 5.75 293791AT6 Sr Nts'B' 03/01/2035 19 BBB+ 6.61 6.12 5.73 5.33 5.24 4.87 4.64 4.75 4.94 4.94 5.33 5.00 5.29% 5.09%
OceanEnergy 8.25 674812AK8 Sr Nts 'B' 07/01/2018 2 BBB+ 7.64 8.22 6.61 5.00 3.90 4.18 3.91 5.21 4.80 4.80 5.19 5.08 5.38% 5.02%
Amerada Hess Corp. 7.875 023551AF1 Nts 10/01/2029 13 BBB 8.00 9.31 7.87 6.42 6.50 5.66 5.67 5.59 5.40 5.40 6.02 5.66 6.46% 5.69%
Amerada Hess Corp. 7.3 023551AJ3 Nts 08/15/2031 15 BBB 8.76 9.18 7.84 6.50 6.47 5.75 5.65 5.73 5.58 5.58 6.24 5.70 6.58% 5.84%
Diamond Shamrock 7.65 252747AF7 Deb 07/01/2026 10 BBB 5.24 5.15 4.58 4.01 4.29 4.08 4.02 3.80 3.92 3.92 4.39 4.50 4.33% 4.27%
Enbridge Energy Partners, L.P. 5.95 29250RAD8 Sr Nts 'B' 06/01/2033 17 BBB 7.24 7.44 7.21 6.98 6.96 6.67 6.68 5.73 5.97 5.97 6.43 6.32 6.63% 6.24%
Enbridge Energy Partners, L.P. 5.88 29250RAH9 Nt 12/15/2016 0 BBB 3.40 4.35 3.12 1.89 1.88 0.95 1.14 1.46 1.77 1.77 2.17% 1.77%
Lakehead Pipe Line Co 7 511546AA1 Sr Nt 10/1/2018 2 BBB 4.76 4.69 4.89 5.08 5.15 4.83 4.95 5.06 5.06 5.06 5.35 5.31 5.02% 5.24%
Marathon Oil Corp. 6.8 565849AB2 Nts 03/15/2032 16 BBB 9.59 10.75 8.92 7.08 7.22 6.54 6.09 6.31 5.92 5.92 6.42 5.70 7.20% 6.01%
Murphy Oil Corp. 7.05 626717AA0 Nts 05/01/2029 13 BBB 12.44 12.66 10.45 8.24 7.22 6.94 6.78 7.29 6.57 6.57 6.54 6.22 8.16% 6.44%
ONEOK Partners, L.P. 6.15 68268NAB9 Gtd Sr Nt 10/1/2016 0 BBB 2.77 4.23 3.44 2.64 2.74 1.97 2.14 1.67 2.70%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Liquid Pipelines
2017 Assessment Year
LP-14
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Liquid Pipelines
2017 Assessment Year
ONEOK Partners, L.P. 6.65 68268NAC7 Gtd Sr Nt 10/1/2036 20 BBB 8.79 9.23 8.25 7.27 6.91 6.21 5.83 5.93 5.41 5.41 5.84 5.55 6.72% 5.60%
Plains All Amern Pipeline L P 5.88 72650RAF9 Sr Nt 08/15/2016 0 BBB 2.78 2.82 2.25 1.68 2.18 1.98 2.28%
Plains All Amern Pipeline L P 6.7 72650RAM4 Sr Nt 5/15/2036 20 BBB 8.24 8.79 7.94 7.08 7.32 6.71 5.78 6.01 5.73 5.73 6.27 5.90 6.79% 5.97%
Talisman Energy Inc. 7.25 87425EAE3 Deb 10/15/2027 11 BBB 7.35 8.66 8.79 8.77 8.81 8.82 8.70 8.71 6.78 6.78 7.29 7.06 8.04% 7.04%
USX Corp. 9.375 902905AL2 Deb 05/15/2022 6 BBB 9.46 10.55 9.03 7.50 8.27 7.09 4.74 4.98 4.09 4.09 4.63 4.09 6.54% 4.27%
USX Corp. 8.5 902905AN8 Deb 03/01/2023 7 BBB 8.69 9.62 8.41 7.20 7.74 7.27 6.82 6.60 5.83 5.83 6.37 5.48 7.16% 5.89%
USX Corp. 8.125 902905AQ1 Deb 07/15/2023 7 BBB 8.59 11.90 9.81 7.72 6.93 6.47 5.83 5.75 5.48 5.48 5.75 5.18 7.07% 5.47%
Valero Energy Corp. (New) 8.75 91913YAB6 Nts 06/15/2030 14 BBB 7.23 7.22 6.58 5.94 6.53 5.57 5.62 5.31 5.15 5.15 5.62 5.48 5.95% 5.42%
Valero Energy Corp. (New) 7.5 91913YAE0 Nts 04/15/2032 16 BBB 6.93 6.97 6.33 5.69 6.28 5.80 5.49 5.16 5.00 5.00 5.34 5.33 5.78% 5.22%
Valero Energy Corp. (New) 6.62 91913YAL4 Nts 06/15/2037 21 BBB 6.94 6.79 6.22 5.64 6.42 5.88 5.63 5.34 5.26 5.26 5.74 5.31 5.87% 5.44%
Valero Energy Corp. (New) 6.12 91913YAM2 Nts 06/15/2017 1 BBB 3.06 3.46 2.73 2.00 2.06 2.07 1.23 1.36 0.58 0.58 0.00 0.00 1.59% 0.19%
Williams Ptns L P 7.25 96950HAD2 Sr Nt 2/1/2017 1 BBB 7.23 7.54 5.32 3.10 2.66 1.94 1.83 1.42 1.64 1.64 1.81 2.30 3.20% 1.92%
Anadarko Petroleum Corp. 7.25 032511AH0 Deb 03/15/2025 9 BBB 7.26 7.28 7.15 7.01 6.91 6.21 6.17 6.12 5.71 5.71 5.27 5.03 6.32% 5.34%
Anadarko Petroleum Corp. 7.73 032511AJ6 Deb 09/15/2096 80 BBB 8.57 8.47 7.85 7.22 7.30 6.78 6.81 6.81 6.66 6.66 7.10 6.82 7.25% 6.86%
Anadarko Petroleum Corp. 7.25 032511AK3 Deb 11/15/2096 80 BBB 9.50 9.34 8.40 7.46 7.30 6.78 6.71 6.71 6.43 6.43 6.85 6.50 7.37% 6.59%
Anadarko Petroleum Corp. 7 032511AL1 Deb 11/15/2027 11 BBB 8.70 10.03 8.45 6.86 6.76 6.06 6.02 6.06 5.61 5.61 4.92 4.69 6.65% 5.07%
Anadarko Petroleum Corp. 6.62 032511AM9 Deb 01/15/2028 12 BBB 8.70 10.03 8.45 6.86 6.76 6.06 6.02 6.07 5.66 5.66 5.09 4.84 6.68% 5.20%
Anadarko Petroleum Corp. 7.2 032511AN7 Deb 03/15/2029 13 BBB 8.25 9.58 8.25 6.92 6.83 6.16 5.83 5.87 5.41 5.41 5.12 5.21 6.57% 5.25%
Anadarko Petroleum Corp. 5.95 032511AX5 Sr Nts 09/15/2016 0 BBB 3.42 5.28 3.03 0.77 3.12%
Anadarko Petroleum Corp. 6.45 032511AY3 Sr Nts 09/15/2036 20 BBB 8.55 8.54 7.18 5.81 6.02 5.40 5.30 5.31 4.96 4.96 5.46 4.98 6.04% 5.13%
Buckeye Partners, L.P. 5.12 118230AE1 Fixed Rt Nts 07/01/2017 1 BBB- 3.78 3.78 3.11 2.43 2.41 2.17 2.39 2.49 2.49 2.49 2.63 2.74 2.74% 2.62%
Energen Corp MTN BE 7.32 29265AAP1 MTN Tranche # Tr 00014 7/28/2022 6 BBB- 9.51 11.40 9.19 6.98 6.69 6.75 6.53 5.46 4.86 4.86 5.15 5.03 6.87% 5.01%
Energy Transfer Partners, L.P. 6.12 29273RAE9 Sr Nt 2/15/2017 1 BBB- 5.06 5.79 4.59 3.39 2.04 1.83 2.00 1.21 1.43 1.43 1.72 1.73 2.69% 1.63%
Energy Transfer Partners, L.P. 6.62 29273RAF6 Sr Nt 10/15/2036 20 BBB- 8.59 8.30 7.54 6.78 7.01 6.34 5.89 5.98 5.74 5.74 6.19 5.93 6.67% 5.95%
Enterprise Prods Oper L P 8.38 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB- 10.48 10.94 10.58 10.21 9.66 9.50 9.14 4.80 0.00 0.00 4.92 4.91 7.09% 3.28%
Kerr-McGee Corp. 7.125 492386AK3 Deb 10/15/2027 11 BBB- 7.85 9.37 8.20 7.03 6.54 6.02 5.98 5.93 5.73 5.73 6.25 5.43 6.67% 5.80%
Kerr-McGee Corp. 7.875 492386AT4 Nts 09/15/2031 15 BBB- 8.10 9.22 7.84 6.46 6.48 6.19 5.94 5.82 5.18 5.18 5.79 5.20 6.45% 5.39%
Kerr-McGee Corp. 6.95 492386AU1 Nts 07/01/2024 8 BBB- 7.20 8.52 6.94 5.35 5.31 4.56 4.52 4.46 3.91 3.91 4.44 4.21 5.28% 4.19%
Sunoco Logistics Ptns Operatio 6.12 86765BAE9 Sr Nt 05/15/2016 0 BBB- 2.12 4.16 3.14%
Union Pacific Resources Group 7.5 907834AB1 Deb 10/15/2026 10 BBB- 8.25 9.58 8.00 6.41 6.38 5.69 5.66 5.60 4.62 4.62 5.12 4.88 6.23% 4.87%
Union Pacific Resources Group 7.5 907834AC9 Deb 11/01/2096 -116 BBB- 9.50 9.34 8.43 7.52 7.60 7.09 7.02 7.01 6.73 6.73 7.11 6.77 7.57% 6.87%
Union Pacific Resources Group 7.05 907834AF2 Deb 05/15/2018 2 BBB- 4.84 4.84 4.95 5.06 5.13 3.01 3.19 3.29 3.29 3.29 3.57 4.06 4.04% 3.64%
Union Pacific Resources Group 7.15 907834AG0 Deb 05/15/2028 12 BBB- 8.25 9.27 7.86 6.45 6.40 5.86 5.82 5.33 5.31 5.31 5.06 4.79 6.31% 5.05%
Williams Companies, Inc. (The) 7.625 969457AW0 Nts 07/15/2019 3 BBB- 13.20 13.41 13.36 13.30 13.65 12.92 12.88 10.39 8.03 8.03 4.36 4.26 10.65% 5.55%
Williams Companies, Inc. (The) 7.5 969457BB5 Deb 01/15/2031 15 BBB- 12.52 11.10 9.75 8.39 7.84 7.56 6.68 6.02 5.92 5.92 6.38 6.08 7.85% 6.13%
Williams Companies, Inc. (The) 7.75 969457BD1 Nts 06/15/2031 15 BBB- 12.74 11.36 9.94 8.52 8.03 7.69 6.72 6.16 6.17 6.17 6.66 6.26 8.04% 6.36%
Williams Companies, Inc. (The) 7.875 969457BG4 Nts 09/01/2021 5 BBB- 12.08 11.77 9.59 7.41 6.83 6.48 5.53 4.28 4.18 4.18 4.61 4.45 6.78% 4.41%
Williams Companies, Inc. (The) 8.75 969457BM1 Nts 03/15/2032 16 BBB- 13.48 11.67 10.15 8.63 8.34 8.23 6.93 6.37 6.33 6.33 6.88 6.54 8.32% 6.58%
Boardwalk Pipelines Llc 5.5 096629AA8 Nt 2/1/2017 1 BB+ 4.40 6.70 5.28 3.86 3.94 2.79 2.00 2.55 2.55 2.55 2.69 2.12 3.45% 2.45%
Boardwalk Pipelines Lp 5.88 096630AA6 Sr Nt 11/15/2016 0 BB+ 5.03 5.86 5.70 5.53 2.26 1.98 2.17 1.29 3.73%
Pioneer Natural Resources Co. 6.88 723787AF4 Sr Nts 05/01/2018 2 BB+ 4.94 5.05 3.97 2.88 2.87 2.19 2.10 2.20 1.97 1.97 2.26 2.19 2.88% 2.14%
Pioneer Natural Resources Co. 6.65 723787AG2 Sr Nts 03/15/2017 1 BB+ 5.04 5.03 4.05 3.07 2.16 1.70 1.73 2.33 1.37 1.37 1.38 1.58 2.57% 1.44%
Chesapeake Energy Corp. 6.5 165167BS5 Sr Nts 08/15/2017 1 BB- 10.61 21.21 12.15 15.47 11.70 6.49 4.36 4.36 2.56 1.65 9.06% 2.86%
Chesapeake Energy Corp. 6.88 165167BU0 Sr Nts 11/15/2020 4 BB- 11.48 22.96 19.47 17.66 16.04 10.54 8.58 8.58 8.85 6.64 13.08% 8.02%
Chesapeake Energy Corp. 2.75 165167BW6 Contingent Sr Nt Conv 11/15/2035 19 BB- 2.76 12.40 24.79 24.83 24.85 24.87 24.90 24.99 24.99 21.04% 24.99%
Chesapeake Energy Corp. 2.5 165167BZ9 Contingent Sr Nt Conv 5/15/2037 21 BB- 7.11 8.73 6.35 3.96 2.98 2.95 2.85 2.56 2.53 2.53 2.51 2.47 3.96% 2.50%
Chesapeake Energy Corp. 2.5 165167CA3 Sr Contingent Conv Nt 5/15/2037 21 BB- 7.11 8.73 6.35 3.96 2.98 2.95 2.85 2.56 2.53 2.53 2.51 2.47 3.96% 2.50%
Chesapeake Energy Corp. 2.25 165167CB1 Contingent Sr Nt Conv 12/15/2038 22 BB- 10.21 12.99 9.31 5.63 4.17 3.51 3.36 2.85 2.65 2.65 2.59 2.35 5.19% 2.53%
Chesapeake Energy Corp. 7.25 165167CC9 Sr Nt 12/15/2018 2 BB- 10.88 21.76 15.85 14.86 11.94 7.48 5.84 5.84 5.28 3.01 10.27% 4.71%
Plains Exploration & Production Company7 726505AC4 SrNts 03/15/2017 1 BB-
KN Energy 6.67 482620AS0 Deb 11/01/2027 11 BB 7.29 7.30 7.30 7.30 7.31 7.31 7.31 7.32 7.32 7.32 7.33 7.33 7.31% 7.33%
KN Energy 7.25 482620AW1 Sr Deb 03/01/2028 12 BB 8.76 8.60 8.23 7.85 5.96 6.78 6.10 6.21 6.24 6.24 7.01 6.33 7.03% 6.53%
Range Resources Corp. 7.5 75281AAH2 Sr Sub Nts 10/01/2017 1 BB 5.12 5.02 4.88 4.74 4.58 4.38 4.18 3.93 3.29 3.29 2.93 2.43 4.06% 2.88%
Range Resources Corp. 7.25 75281AAJ8 Sr Sub Nts 05/01/2018 2 BB 5.51 5.45 5.39 5.32 5.24 5.15 5.06 4.95 4.71 4.71 4.58 4.41 5.04% 4.57%
Berry Petroleum Co. 8.25 085789AC9 Sr SubNts 11/01/2016 0 B 2.68 2.10 1.11 0.12 1.50%
Cimarex Energy Co. 7.12 171798AA9 SrNts 05/01/2017 1 NR 4.17 3.99 3.74 3.49 3.19 2.79 2.35 1.74 3.18%
Pioneer Natural Resources Co. 7.2 723787AB3 Sr Nt 6/15/2028 12 NR 6.25 6.92 6.34 5.75 5.87 5.46 4.72 4.79 4.30 4.30 4.86 4.82 5.36% 4.66%
Range Resources Corp. 7.5 75281AAG4 Sr Sub Nts 05/15/2016 0 NR
Sunoco, Inc. 5.75 86764PAD1 Nts 01/15/2017 1 NR 5.03 4.48 3.76 3.03 2.39 2.13 2.33 1.55 1.43 1.43 1.77 2.67% 1.60%
Texaco Capital 7.5 881685BD2 GtdDeb 03/01/2043 27 NR
117 111 110 112 112 110 110 109 109 106 106 104 103 114 106
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.31% 4.66%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.15% 4.58%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.66% 4.76%
Investment Grade (BBB- & Above) 5.93% 5.24%
Say: 5.15%
All Bonds
LP-15
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS
VL Est
EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF
Ratio
Ke Estimate
- Cash Flow
(Hist. P/CF)
Ke Estimate -
Cash Flow
(Est. P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/M
Buckeye BPL 64.44 4.03 4.35 15.99 14.81 6.25% 6.75% 5.09 5.60 12.66 11.51 7.90% 8.69%
Enbridge Energy Partners LP EEP 25.31 0.32 0.50 79.09 50.62 1.26% 1.98% 2.26 2.15 11.20 11.77 8.93% 8.50%
Enterprise Products EPD 25.67 1.20 1.40 21.39 18.33 4.68% 5.45% 2.01 1.95 12.77 13.16 7.83% 7.60%
Magellan Midstream Partners LP MMP 64.31 3.52 3.80 18.27 16.92 5.47% 5.91% 4.34 4.30 14.82 14.95 6.75% 6.69%
Nustar Energy LP NS 43.32 1.76 0.00 24.61 4.06% 2.36 0.00 18.36 5.45%
Phillips 66 Partners PSXP 57.28 2.20 0.00 26.04 3.84% 3.63 0.00 15.78 6.34%
Plains All American PL LP PAA 27.15 0.41 1.60 66.23 16.97 1.51% 5.89% 3.36 1.05 8.08 25.86 12.37% 3.87%
Sunoco Logistics Partners L.P. SXL 28.01 0.97 1.20 28.88 23.34 3.46% 4.28% 1.81 2.35 15.48 11.92 6.46% 8.39%
Tesoro Logistics LP TLLP 50.21 1.87 0.00 26.85 3.72% 5.40 0.00 9.30 10.76%
Valero Energy Partners LP VLP 47.34 2.82 0.00 16.79 5.96% 3.41 0.00 13.88 7.20%
Average 32.41 23.50 4.02% 5.04% 13.23 14.86 8.00% 7.29%
Median 25.33 17.65 3.95% 5.67% 13.33 12.54 7.52% 7.99%
High 79.09 50.62 6.25% 6.75% 18.36 25.86 12.37% 8.69%
Low 15.99 14.81 1.26% 1.98% 8.08 11.51 5.45% 3.87%
Say 5.50% 8.00%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
Industry: Liquid Pipelines
2017 Assessment Year
LP-16
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
XTO Energy Inc. 5.65 98385XAH9 Sr Nts 04/01/2016 0 AAA 5.60 5.62 5.61%
XTO Energy Inc. 6.1 98385XAJ5 Sr Nts 04/01/2036 20 AAA 4.69 4.64 4.68 4.71 4.73 4.54 4.55 4.56 4.68 4.68 4.96 5.00 4.70% 4.88%
XTO Energy Inc. 6.25 98385XAL0 Sr Nts 08/01/2017 1 AAA 5.81 5.83 5.84 5.85 5.88 5.90 5.93 5.95 6.02 6.02 6.04 6.06 5.93% 6.04%
XTO Energy Inc. 6.75 98385XAM8 Sr Nts 08/01/2037 21 AAA 4.82 4.77 4.80 4.82 4.72 4.55 4.56 4.57 4.73 4.73 4.99 4.97 4.75% 4.90%
XTO Energy Inc. 5.5 98385XAP1 Sr Nts 06/15/2018 2 AAA 5.02 5.03 5.06 5.09 5.07 5.05 5.08 5.11 5.15 5.15 5.19 5.21 5.10% 5.18%
XTO Energy Inc. 6.38 98385XAQ9 Sr Nts 06/15/2038 22 AAA 4.78 4.73 4.71 4.68 4.67 4.52 4.48 4.49 4.67 4.67 4.93 4.88 4.68% 4.83%
Texaco Capital 9.75 881685AN1 GtdDeb 03/15/2020 4 AA 7.76 7.73 7.78 7.82 7.87 7.79 7.87 7.77 7.84 7.84 8.00 8.07 7.84% 7.97%
Texaco Capital 8.875 881685AV3 GtdDeb 09/01/2021 5 AA 6.79 6.74 6.89 7.04 7.08 6.97 7.02 6.73 6.78 6.78 6.96 7.02 6.90% 6.92%
Texaco Capital 8.625 881685AX9 GtdDeb 11/15/2031 15 AA 5.80 5.78 5.78 5.77 5.72 5.49 5.50 5.55 5.48 5.48 5.73 5.74 5.65% 5.65%
Texaco Capital 8.625 881685AY7 GtdDeb 04/01/2032 16 AA 5.74 5.78 5.82 5.85 5.84 5.68 5.70 5.71 5.67 5.67 5.94 5.95 5.78% 5.85%
Texaco Capital 8 881685BB6 GtdDeb 08/01/2032 16 AA 5.62 5.66 5.70 5.73 5.73 5.56 5.58 5.59 5.50 5.50 5.76 5.77 5.64% 5.68%
ANR Pipeline 7.38 001814AQ5 Deb 2/15/2024 8 A- 6.30 6.20 6.23 6.26 6.28 6.15 6.20 6.23 6.32 6.32 6.12 6.13 6.23% 6.19%
ANR Pipeline 9.62 001814AR3 Deb 11/1/2021 5 A- 7.46 7.56 7.54 7.52 7.57 7.32 7.11 7.19 7.23 7.23 7.37 7.45 7.38% 7.35%
EOG Resources, Inc. 5.88 26875PAA9 Sr Nts 09/15/2017 1 A- 5.52 5.55 5.55 5.55 5.57 5.57 5.60 5.60 5.65 5.65 5.68 5.70 5.60% 5.68%
Enron Oil & Gas 6.65 293562AD6 Nts 04/01/2028 12 A- 5.73 5.69 5.77 5.85 5.92 5.65 5.66 5.68 5.73 5.73 5.98 5.88 5.77% 5.86%
Atlantic Richfield 9 048825AW3 Deb 04/01/2021 5 A 7.25 7.21 7.37 7.53 7.61 7.45 7.34 7.32 7.22 7.22 7.39 7.43 7.36% 7.35%
Atlantic Richfield 9 048825AY9 Deb 05/01/2031 15 A 6.71 6.59 6.63 6.66 6.69 6.51 6.19 6.24 6.23 6.23 6.54 6.59 6.48% 6.45%
Atlantic Richfield 9.125 048825AZ6 Deb 08/01/2031 15 A 6.33 6.24 6.34 6.43 6.45 6.27 6.22 6.28 6.38 6.38 6.70 6.76 6.40% 6.61%
Atlantic Richfield 8.25 048825BA0 Deb 02/01/2022 6 A 6.83 6.78 6.70 6.61 6.65 6.52 6.60 6.37 6.55 6.55 6.72 6.70 6.63% 6.66%
Atlantic Richfield 8.75 048825BB8 Deb 03/01/2032 16 A 6.63 6.50 6.54 6.57 6.56 6.30 6.31 6.27 6.12 6.12 6.40 6.38 6.39% 6.30%
Burlington Resources Inc. 9.125 122014AE3 Deb 10/01/2021 5 A 7.62 7.54 7.40 7.26 7.22 7.09 7.14 7.31 7.06 7.06 7.21 7.31 7.27% 7.19%
Burlington Resources Inc. 8.2 122014AH6 Deb 03/15/2025 9 A 7.19 7.35 6.90 6.45 6.49 6.27 6.32 6.30 6.38 6.38 6.35 6.32 6.56% 6.35%
Burlington Resources Inc. 6.875 122014AJ2 Deb 02/15/2026 10 A 6.81 6.53 6.21 5.88 5.92 5.94 5.90 5.87 5.80 5.80 6.02 5.95 6.05% 5.92%
Burlington Resources Inc. 7.375 122014AL7 Deb 03/01/2029 13 A 7.18 7.02 6.62 6.22 6.17 5.90 5.92 5.82 5.81 5.81 6.05 5.90 6.20% 5.92%
Burlington Resources Fin 7.2 12201PAB2 Gtd Nt 8/15/2031 15 A 6.65 6.77 6.44 6.10 5.99 5.89 5.63 5.49 5.49 5.49 5.75 5.62 5.94% 5.62%
Conoco Inc 6.95 208251AE8 Nts 04/15/2029 13 A 6.78 6.62 6.23 5.84 5.80 5.56 5.58 5.49 5.47 5.47 5.70 5.56 5.84% 5.58%
ConocoPhillips 5.9 20825CAF1 Nts 10/15/2032 16 A 6.11 6.14 5.67 5.19 5.37 5.05 4.95 5.06 5.00 5.00 5.25 5.13 5.33% 5.13%
Conoco Funding 7.25 20825UAC8 Sr Nt 10/15/2031 15 A 6.68 6.85 6.62 6.38 5.97 5.89 5.68 5.50 5.55 5.55 5.75 5.68 6.01% 5.66%
Louisiana Land/Exp 7.65 546268AG8 Deb 12/01/2023 7 A 6.81 6.67 6.44 6.20 6.23 6.04 6.15 6.13 6.22 6.22 6.42 6.52 6.34% 6.39%
Occidental Petroleum Corp. 9.25 674599BE4 Sr Deb 08/01/2019 3 A 7.63 7.62 7.65 7.67 7.69 7.64 7.70 7.76 7.84 7.84 7.94 7.95 7.74% 7.91%
Occidental Petroleum Corp. 7.2 674599BM6 Sr Deb 4/1/2028 12 A 6.24 6.12 5.86 5.60 5.63 5.42 5.35 5.43 5.49 5.49 5.79 5.79 5.68% 5.69%
Occidental Petroleum Corp. 8.45 674599BT1 Sr Nts 02/15/2029 13 A 6.28 6.16 5.90 5.63 5.96 5.74 5.67 5.76 5.81 5.81 6.13 6.13 5.91% 6.02%
Occidental Pete Corp Med Term 8.75 67461FED5 MTN Tranche # Tr 00100 1/15/2023 7 A 6.90 6.81 6.85 6.89 6.93 6.78 6.85 6.92 6.99 6.99 7.20 7.14 6.94% 7.11%
Phillips Petroleum 6.65 718507BH8 Deb 07/15/2018 2 A 6.16 6.27 6.19 6.11 6.14 6.11 6.14 6.10 6.13 6.13 6.18 6.21 6.16% 6.17%
Phillips Petroleum 7 718507BK1 Deb 03/30/2029 13 A 7.02 6.86 6.44 6.02 5.97 5.73 5.63 5.53 5.70 5.70 5.92 5.73 6.02% 5.78%
Apache Corp. 7.7 037411AJ4 Nts 03/15/2026 10 BBB+ 6.62 6.57 6.55 6.52 6.57 6.32 6.21 6.26 6.24 6.24 6.53 6.44 6.42% 6.40%
Apache Corp. 7.95 037411AK1 Nts 04/15/2026 10 BBB+ 6.71 6.66 6.69 6.72 6.59 6.35 6.35 6.20 6.30 6.30 6.60 6.41 6.49% 6.44%
Apache Corp. 7.625 037411AL9 Deb 11/01/2096 80 BBB+ 7.95 7.68 6.87 6.05 6.24 5.81 5.60 5.75 5.84 5.84 6.34 5.86 6.32% 6.01%
Apache Corp. 7.38 037411AM7 Deb 08/15/2047 31 BBB+ 7.45 7.20 6.50 5.80 5.96 5.61 5.44 5.56 5.51 5.51 5.91 5.53 6.00% 5.65%
Apache Corp. 7 037411AN5 Sr Nts 02/01/2018 2 BBB+ 6.59 6.74 6.65 6.55 6.57 6.53 6.55 6.56 6.57 6.57 6.64 6.64 6.60% 6.62%
Apache Corp. 7.62 037411AP0 Sr Nts 07/01/2019 3 BBB+ 6.66 7.03 6.89 6.74 6.76 6.66 6.63 6.65 6.63 6.63 6.76 6.74 6.73% 6.71%
Apache Corp. 6 037411AR6 Nts 01/15/2037 21 BBB+ 6.84 7.28 6.46 5.64 5.66 5.27 5.23 5.26 5.14 5.14 5.41 5.23 5.71% 5.26%
Canadian Natural Resources Limited6.45 136385AE1 Nt 6/30/2033 17 BBB+ 7.96 8.57 7.62 6.66 6.62 6.29 5.91 5.87 5.86 5.86 5.97 5.74 6.58% 5.86%
Devon Fin Corp 7.95 251799AA0 Sr Deb 04/15/2032 16 BBB+ 8.57 10.26 8.86 7.45 7.47 6.90 6.54 6.61 6.30 6.30 6.54 6.29 7.34% 6.38%
ENSCO International Inc. 7.2 26874QAB6 Deb 11/15/2027 11 BBB+ 10.61 12.85 11.79 10.72 10.03 10.00 9.15 9.08 8.06 8.06 8.17 7.86 9.70% 8.03%
Enterprise Products Oper 6.65 293791AP4 Sr Nts'B' 10/15/2034 18 BBB+ 6.67 6.41 6.11 5.80 5.88 5.57 5.31 5.39 5.56 5.56 5.79 5.54 5.80% 5.63%
Enterprise Products Oper 5.75 293791AT6 Sr Nts'B' 03/01/2035 19 BBB+ 6.33 5.99 5.74 5.48 5.42 5.19 5.05 5.12 5.24 5.24 5.48 5.28 5.46% 5.33%
OceanEnergy 8.25 674812AK8 Sr Nts 'B' 07/01/2018 2 BBB+ 8.14 8.24 7.99 7.74 7.59 7.65 7.64 7.83 7.82 7.82 7.88 7.89 7.85% 7.86%
Amerada Hess Corp. 7.875 023551AF1 Nts 10/01/2029 13 BBB 7.96 8.84 7.91 6.97 7.02 6.53 6.54 6.51 6.41 6.41 6.76 6.57 7.04% 6.58%
Amerada Hess Corp. 7.3 023551AJ3 Nts 08/15/2031 15 BBB 8.32 8.62 7.70 6.78 6.76 6.32 6.26 6.31 6.23 6.23 6.63 6.31 6.87% 6.39%
Diamond Shamrock 7.65 252747AF7 Deb 07/01/2026 10 BBB 6.42 6.38 6.13 5.87 6.01 5.92 5.91 5.82 5.89 5.89 6.10 6.16 6.04% 6.05%
Enbridge Energy Partners, L.P. 5.95 29250RAD8 Sr Nts 'B' 06/01/2033 17 BBB 6.81 6.94 6.79 6.63 6.61 6.41 6.42 5.81 5.96 5.96 6.25 6.18 6.40% 6.13%
Enbridge Energy Partners, L.P. 5.88 29250RAH9 Nt 12/15/2016 0 BBB 5.75 5.80 5.77 5.73 5.75 5.74 5.77 5.80 5.84 5.84 5.78% 5.84%
Lakehead Pipe Line Co 7 511546AA1 Sr Nt 10/1/2018 2 BBB 6.63 6.63 6.67 6.71 6.72 6.69 6.72 6.74 6.76 6.76 6.80 6.81 6.72% 6.79%
Marathon Oil Corp. 6.8 565849AB2 Nts 03/15/2032 16 BBB 8.80 9.70 8.34 6.98 7.07 6.63 6.35 6.49 6.25 6.25 6.56 6.12 7.13% 6.31%
Murphy Oil Corp. 7.05 626717AA0 Nts 05/01/2029 13 BBB 10.78 10.94 9.36 7.78 7.15 6.98 6.89 7.19 6.77 6.77 6.76 6.58 7.83% 6.70%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Liquid Pipelines
2017 Assessment Year
LP-17
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Liquid Pipelines
2017 Assessment Year
ONEOK Partners, L.P. 6.15 68268NAB9 Gtd Sr Nt 10/1/2016 0 BBB 6.01 6.08 6.07 6.06 6.07 6.08 6.10 6.12 6.07%
ONEOK Partners, L.P. 6.65 68268NAC7 Gtd Sr Nt 10/1/2036 20 BBB 8.34 8.70 7.91 7.12 6.84 6.33 6.06 6.13 5.78 5.78 6.07 5.88 6.75% 5.91%
Plains All Amern Pipeline L P 5.88 72650RAF9 Sr Nt 08/15/2016 0 BBB 5.77 5.79 5.80 5.80 5.82 5.84 5.80%
Plains All Amern Pipeline L P 6.7 72650RAM4 Sr Nt 5/15/2036 20 BBB 7.89 8.33 7.66 6.98 7.16 6.71 6.05 6.21 6.02 6.02 6.39 6.14 6.80% 6.18%
Talisman Energy Inc. 7.25 87425EAE3 Deb 10/15/2027 11 BBB 7.30 8.07 8.10 8.13 8.15 8.16 8.08 8.08 7.00 7.00 7.27 7.15 7.71% 7.14%
USX Corp. 9.375 902905AL2 Deb 05/15/2022 6 BBB 9.41 9.90 9.25 8.60 8.92 8.46 7.60 7.71 7.44 7.44 7.64 7.48 8.32% 7.52%
USX Corp. 8.5 902905AN8 Deb 03/01/2023 7 BBB 8.59 9.00 8.48 7.95 8.18 7.99 7.81 7.73 7.46 7.46 7.66 7.35 7.97% 7.49%
USX Corp. 8.125 902905AQ1 Deb 07/15/2023 7 BBB 8.34 9.93 8.94 7.95 7.62 7.43 7.19 7.17 7.08 7.08 7.19 6.99 7.74% 7.09%
Valero Energy Corp. (New) 8.75 91913YAB6 Nts 06/15/2030 14 BBB 7.71 7.71 7.31 6.91 7.28 6.70 6.74 6.56 6.48 6.48 6.76 6.69 6.94% 6.64%
Valero Energy Corp. (New) 7.5 91913YAE0 Nts 04/15/2032 16 BBB 7.11 7.14 6.73 6.31 6.69 6.39 6.20 6.00 5.92 5.92 6.12 6.12 6.39% 6.05%
Valero Energy Corp. (New) 6.62 91913YAL4 Nts 06/15/2037 21 BBB 6.87 6.75 6.33 5.91 6.47 6.08 5.90 5.71 5.66 5.66 5.99 5.70 6.09% 5.78%
Valero Energy Corp. (New) 6.12 91913YAM2 Nts 06/15/2017 1 BBB 5.88 5.92 5.89 5.85 5.87 5.89 5.87 5.90 5.92 5.92 5.92 5.92 5.90% 5.92%
Williams Ptns L P 7.25 96950HAD2 Sr Nt 2/1/2017 1 BBB 7.24 7.26 7.15 7.03 7.03 7.03 7.05 7.07 7.15 7.15 7.18 7.21 7.13% 7.18%
Anadarko Petroleum Corp. 7.25 032511AH0 Deb 03/15/2025 9 BBB 7.25 7.26 7.20 7.13 7.09 6.78 6.77 6.74 6.58 6.58 6.40 6.31 6.84% 6.43%
Anadarko Petroleum Corp. 7.73 032511AJ6 Deb 09/15/2096 80 BBB 8.57 8.47 7.85 7.22 7.30 6.79 6.81 6.81 6.66 6.66 7.10 6.82 7.25% 6.86%
Anadarko Petroleum Corp. 7.25 032511AK3 Deb 11/15/2096 80 BBB 9.50 9.34 8.40 7.46 7.30 6.78 6.71 6.71 6.44 6.44 6.85 6.50 7.37% 6.60%
Anadarko Petroleum Corp. 7 032511AL1 Deb 11/15/2027 11 BBB 7.99 8.82 7.87 6.92 6.87 6.50 6.48 6.51 6.29 6.29 5.96 5.86 6.86% 6.04%
Anadarko Petroleum Corp. 6.62 032511AM9 Deb 01/15/2028 12 BBB 7.82 8.64 7.70 6.75 6.69 6.33 6.31 6.33 6.14 6.14 5.86 5.75 6.70% 5.92%
Anadarko Petroleum Corp. 7.2 032511AN7 Deb 03/15/2029 13 BBB 7.85 8.73 7.88 7.03 6.98 6.60 6.42 6.44 6.21 6.21 6.06 6.11 6.88% 6.13%
Anadarko Petroleum Corp. 5.95 032511AX5 Sr Nts 09/15/2016 0 BBB 5.85 5.92 5.88 5.83 5.83 5.83 5.83 5.85%
Anadarko Petroleum Corp. 6.45 032511AY3 Sr Nts 09/15/2036 20 BBB 8.08 8.07 7.04 6.00 6.14 5.72 5.65 5.66 5.43 5.43 5.76 5.45 6.20% 5.55%
Buckeye Partners, L.P. 5.12 118230AE1 Fixed Rt Nts 07/01/2017 1 BBB- 5.03 5.03 5.00 4.97 4.98 4.97 5.00 5.01 5.03 5.03 5.05 5.06 5.01% 5.05%
Energen Corp MTN BE 7.32 29265AAP1 MTN Tranche # Tr 00014 7/28/2022 6 BBB- 8.17 8.95 8.08 7.20 7.09 7.12 7.04 6.70 6.52 6.52 6.62 6.59 7.22% 6.58%
Energy Transfer Partners, L.P. 6.12 29273RAE9 Sr Nt 2/15/2017 1 BBB- 6.06 6.10 6.05 5.99 5.95 5.96 5.99 5.99 6.04 6.04 6.06 6.09 6.03% 6.06%
Energy Transfer Partners, L.P. 6.62 29273RAF6 Sr Nt 10/15/2036 20 BBB- 8.17 7.93 7.34 6.74 6.91 6.42 6.10 6.16 6.00 6.00 6.31 6.13 6.68% 6.15%
Enterprise Prods Oper L P 8.38 293791AV1 Jr Sub Nt Fixed/fltg Rate 08/01/2066 50 BBB- 10.46 10.92 10.56 10.20 9.65 9.49 9.13 4.77 4.89 4.88 8.50% 4.89%
Kerr-McGee Corp. 7.125 492386AK3 Deb 10/15/2027 11 BBB- 7.54 8.45 7.76 7.07 6.81 6.53 6.52 6.50 6.41 6.41 6.66 6.27 6.91% 6.45%
Kerr-McGee Corp. 7.875 492386AT4 Nts 09/15/2031 15 BBB- 8.03 8.85 7.89 6.92 6.94 6.76 6.61 6.54 6.16 6.16 6.53 6.19 6.96% 6.29%
Kerr-McGee Corp. 6.95 492386AU1 Nts 07/01/2024 8 BBB- 7.06 7.66 6.98 6.29 6.27 5.99 5.99 5.97 5.79 5.79 5.99 5.91 6.31% 5.90%
Sunoco Logistics Ptns Operatio 6.12 86765BAE9 Sr Nt 05/15/2016 0 BBB- 6.05 6.09 6.07%
Union Pacific Resources Group 7.5 907834AB1 Deb 10/15/2026 10 BBB- 7.92 8.69 7.81 6.93 6.92 6.58 6.57 6.55 6.11 6.11 6.34 6.24 6.90% 6.23%
Union Pacific Resources Group 7.5 907834AC9 Deb 11/01/2096 -116 BBB- 9.50 9.34 8.43 7.52 7.60 7.09 7.02 7.01 6.74 6.74 7.11 6.77 7.57% 6.87%
Union Pacific Resources Group 7.05 907834AF2 Deb 05/15/2018 2 BBB- 6.73 6.74 6.77 6.79 6.80 6.56 6.60 6.63 6.67 6.67 6.72 6.78 6.70% 6.72%
Union Pacific Resources Group 7.15 907834AG0 Deb 05/15/2028 12 BBB- 7.81 8.44 7.60 6.76 6.73 6.44 6.42 6.18 6.18 6.18 6.06 5.93 6.73% 6.06%
Williams Companies, Inc. (The) 7.625 969457AW0 Nts 07/15/2019 3 BBB- 8.98 9.01 8.96 8.91 8.97 8.76 8.72 8.17 7.70 7.70 7.06 7.06 8.33% 7.27%
Williams Companies, Inc. (The) 7.5 969457BB5 Deb 01/15/2031 15 BBB- 11.29 10.13 9.12 8.10 7.73 7.54 6.97 6.57 6.52 6.52 6.80 6.62 7.83% 6.65%
Williams Companies, Inc. (The) 7.75 969457BD1 Nts 06/15/2031 15 BBB- 11.62 10.47 9.38 8.28 7.94 7.71 7.07 6.72 6.73 6.73 7.04 6.79 8.04% 6.85%
Williams Companies, Inc. (The) 7.875 969457BG4 Nts 09/01/2021 5 BBB- 9.46 9.31 8.52 7.72 7.53 7.42 7.14 6.78 6.78 6.78 6.92 6.89 7.60% 6.86%
Williams Companies, Inc. (The) 8.75 969457BM1 Nts 03/15/2032 16 BBB- 12.65 11.07 9.87 8.66 8.45 8.37 7.47 7.09 7.08 7.08 7.44 7.23 8.54% 7.25%
Boardwalk Pipelines Llc 5.5 096629AA8 Nt 2/1/2017 1 BB+ 5.44 5.55 5.49 5.43 5.44 5.41 5.40 5.43 5.46 5.46 5.47 5.48 5.46% 5.47%
Boardwalk Pipelines Lp 5.88 096630AA6 Sr Nt 11/15/2016 0 BB+ 5.83 5.87 5.87 5.86 5.77 5.79 5.81 5.81 5.83%
Pioneer Natural Resources Co. 6.88 723787AF4 Sr Nts 05/01/2018 2 BB+ 6.60 6.62 6.50 6.38 6.39 6.34 6.35 6.38 6.41 6.41 6.46 6.47 6.44% 6.45%
Pioneer Natural Resources Co. 6.65 723787AG2 Sr Nts 03/15/2017 1 BB+ 6.53 6.54 6.50 6.45 6.42 6.42 6.45 6.49 6.52 6.52 6.54 6.58 6.50% 6.55%
Chesapeake Energy Corp. 6.5 165167BS5 Sr Nts 08/15/2017 1 BB- 13.35 16.04 11.89 7.73 6.93 7.14 6.84 6.50 6.39 6.39 6.32 6.31 8.49% 6.34%
Chesapeake Energy Corp. 6.88 165167BU0 Sr Nts 11/15/2020 4 BB- 24.55 6.14 12.27 10.82 10.11 9.51 7.83 7.29 7.29 7.35 6.82 10.00% 7.15%
Chesapeake Energy Corp. 2.75 165167BW6 Contingent Sr Nt Conv 11/15/2035 19 BB- 2.75 11.46 22.91 22.91 22.91 22.91 22.91 22.91 22.91 22.91 22.91 20.04% 22.91%
Chesapeake Energy Corp. 2.5 165167BZ9 Contingent Sr Nt Conv 5/15/2037 21 BB- 5.02 6.21 4.68 3.15 2.70 2.68 2.64 2.52 2.51 2.51 2.50 2.49 3.30% 2.50%
Chesapeake Energy Corp. 2.5 165167CA3 Sr Contingent Conv Nt 5/15/2037 21 BB- 5.02 6.21 4.68 3.15 2.70 2.68 2.64 2.52 2.51 2.51 2.50 2.49 3.30% 2.50%
Chesapeake Energy Corp. 2.25 165167CB1 Contingent Sr Nt Conv 12/15/2038 22 BB- 7.50 10.22 7.08 3.94 3.12 2.79 2.72 2.50 2.41 2.41 2.38 2.29 4.11% 2.36%
Chesapeake Energy Corp. 7.25 165167CC9 Sr Nt 12/15/2018 2 BB- 19.33 23.29 16.68 10.06 8.78 8.55 8.01 7.28 7.05 7.05 6.98 6.71 10.81% 6.91%
Plains Exploration & Production Company7 726505AC4 SrNts 03/15/2017 1 BB-
Swift Energy Co. 7.12 870738AF8 SrNts 06/01/2017 1 BB-
KN Energy 6.67 482620AS0 Deb 11/01/2027 11 BB 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01 7.01% 7.01%
KN Energy 7.25 482620AW1 Sr Deb 03/01/2028 12 BB 8.16 8.05 7.83 7.60 6.54 6.99 6.62 6.68 6.70 6.70 7.12 6.76 7.15% 6.86%
Range Resources Corp. 7.5 75281AAH2 Sr Sub Nts 10/01/2017 1 BB 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22 7.22% 7.22%
Range Resources Corp. 7.25 75281AAJ8 Sr Sub Nts 05/01/2018 2 BB 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99 6.99% 6.99%
LP-18
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Liquid Pipelines
2017 Assessment Year
Berry Petroleum Co. 8.25 085789AC9 Sr SubNts 11/01/2016 0 B 7.92 7.92 7.92 7.92
Cimarex Energy Co. 7.12 171798AA9 SrNts 05/01/2017 1 NR 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87 6.87% 6.87%
Pioneer Natural Resources Co. 7.2 723787AB3 Sr Nt 6/15/2028 12 NR 6.67 7.04 6.73 6.41 6.48 6.27 5.91 5.95 5.73 5.73 6.00 5.99 6.24% 5.91%
Range Resources Corp. 7.5 75281AAG4 Sr Sub Nts 05/15/2016 0 NR
Sunoco, Inc. 5.75 86764PAD1 Nts 01/15/2017 1 NR 5.71 5.68 5.66 5.64 5.63 5.64 5.66 5.66 5.70 5.70 5.72 5.67% 5.71%
Texaco Capital 7.5 881685BD2 GtdDeb 03/01/2043 27 NR
118 114 112 112 112 111 111 110 109 106 106 106 105 113 107
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 6.71% 6.37%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 6.60% 6.29%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 6.61% 6.56%
Investment Grade (BBB- & Above) 6.27% 5.67%
Say: 6.60%
All Bonds
LP-19
A B C D E F G H I J K
2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBR
Source 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)
Buckeye Partners BPL 194,922 3,530,433 3,844,312 4,333,488 4,217,695 3,931,961 4.96% 4,031,004 0.98
Enbridge Energy Partners LP EEP 445,500 5,900,000 - 6,500,000 - 6,200,000 -
Enterprise Products EPD 982,600 19,510,000 20,870,000 21,950,000 20,850,000 20,730,000 4.74% 20,860,000 0.99
Magellan Midstream Partners LP MMP 145,862 3,284,791 3,439,622 4,262,321 4,087,192 3,773,556 3.87% 3,763,407 1.00
Nustar Energy LP NS 138,350 2,929,438 3,055,612 3,084,762 3,014,364 3,007,100 4.60% 3,034,988 0.99
Phillips 66 Partners PSXP 52,000 1,900,000 2,064,000 2,357,000 2,435,000 2,128,500 2.44% 2,249,500 0.95
Plains All American PL LP PAA 467,000 8,600,000 9,800,000 10,400,000 10,300,000 9,500,000 4.92% 10,050,000 0.95
Sunoco Logistics Partners LP SXL 270,000 4,200,000 5,100,000 5,400,000 5,400,000 4,800,000 5.63% 5,250,000 0.91
Tesoro Logistics LP TLLP 191,000 2,800,000 2,900,000 4,300,000 4,100,000 3,550,000 5.38% 3,500,000 1.01
Valero Energy Partners VLP 14,915 545,000 545,000 906,670 895,355 725,835 2.05% 720,178 1.01
2,456,649 52,146,952 4.71% 53,459,076 0.98
Average 4.29% 0.98
Median 4.74% 0.99
High 5.63% 1.01
Low 2.05% 0.91
Say 4.75% 0.99
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
Industry: Liquid Pipelines
LP-20
Ticker Company Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
End of
Year
Closing
4th Qtr
Average
Annual
Average
BPL Buckeye high 77.67$ 77.83$ 78.30$ 81.93$ 82.98$ 79.42$ 76.56$ 75.16$ 71.26$ 72.43$ 70.23$ 68.50$ 65.96$ $64.44 $71.01
low 69.52$ 70.66$ 73.44$ 74.43$ 77.28$ 73.93$ 69.39$ 52.91$ 54.85$ 59.26$ 64.20$ 52.04$
COP ConocoPhillips Inc high 69.48$ 70.11$ 65.36$ 69.72$ 68.36$ 64.47$ 61.51$ 51.88$ 50.91$ 56.69$ 57.24$ 54.75$ 46.69$ $51.97 $57.99
low 60.64$ 63.41$ 60.57$ 62.57$ 63.11$ 60.86$ 50.25$ 41.10$ 45.72$ 47.54$ 51.03$ 44.56$
CVX ChevronTexaco Corp high 113.00$ 112.93$ 107.69$ 112.20$ 110.80$ 103.75$ 96.67$ 87.33$ 80.47$ 91.98$ 98.64$ 94.00$ 89.96$ $89.00 $95.66
low 98.88$ 102.97$ 100.66$ 104.08$ 102.38$ 96.22$ 88.01$ 69.58$ 74.31$ 77.31$ 87.79$ 84.25$
EEP Enbridge Energy Partners LP high 41.06$ 41.39$ 39.38$ 38.38$ 38.53$ 37.32$ 34.49$ 31.35$ 28.04$ 28.22$ 29.99$ 25.07$ 23.07$ $25.31 $32.20
low 36.90$ 38.01$ 35.07$ 35.64$ 36.19$ 32.93$ 29.54$ 24.21$ 22.40$ 24.78$ 24.48$ 19.31$
EPD Enterprise Products high 36.98$ 36.00$ 33.45$ 34.49$ 34.73$ 32.60$ 31.17$ 29.92$ 28.24$ 29.02$ 28.65$ 26.17$ 25.58$ $25.67 $29.74
low 31.03$ 32.55$ 30.71$ 32.41$ 32.42$ 29.53$ 26.91$ 24.62$ 22.01$ 25.09$ 24.32$ 20.76$
HEP Holly Energy Part. LP high 35.10$ 35.00$ 33.35$ 34.46$ 34.53$ 36.40$ 35.34$ 35.11$ 34.34$ 34.94$ 35.51$ 33.49$ 31.14$ $31.79 $32.26
low 29.76$ 31.88$ 29.57$ 30.00$ 31.05$ 32.55$ 30.60$ 28.32$ 26.25$ 28.02$ 32.04$ 26.75$
HFC HollyFrontier Corporation high 38.49$ 45.05$ 43.76$ 40.95$ 43.71$ 42.78$ 49.54$ 54.73$ 51.43$ 51.61$ 52.30$ 50.44$ 39.89$ $47.55 $43.55
low 30.15$ 36.14$ 37.58$ 35.89$ 38.67$ 39.83$ 42.68$ 43.56$ 44.90$ 44.78$ 47.16$ 39.00$
KMI Kinder Morgan Inc. high 42.93$ 42.33$ 42.30$ 44.71$ 43.34$ 41.47$ 38.58$ 34.81$ 32.09$ 32.89$ 27.78$ 23.62$ 14.92$ $24.61 $34.99
low 39.95$ 40.34$ 39.45$ 41.56$ 41.42$ 38.33$ 34.12$ 28.50$ 25.81$ 26.60$ 22.57$ 14.22$
MMP Magellan Midstream Partners LP high 85.85$ 85.09$ 82.65$ 84.99$ 85.49$ 80.29$ 76.04$ 72.91$ 71.75$ 70.26$ 69.87$ 70.01$ 67.92$ $64.31 $72.85
low 72.90$ 76.63$ 75.51$ 76.57$ 79.61$ 73.36$ 66.55$ 61.37$ 55.05$ 59.67$ 61.51$ 54.51$
NS Nustar Energy LP high 61.92$ 63.78$ 63.78$ 68.10$ 67.68$ 63.02$ 60.48$ 56.43$ 53.50$ 52.24$ 51.61$ 40.80$ 40.10$ $43.32 $54.83
low 54.58$ 60.32$ 58.54$ 60.49$ 62.25$ 58.81$ 54.43$ 45.98$ 42.00$ 44.06$ 40.02$ 31.20$
NSH NuStar GP Holdings, LLC high 37.71$ 39.53$ 37.87$ 39.66$ 39.44$ 39.94$ 38.40$ 34.99$ 33.74$ 31.55$ 29.72$ 24.99$ 21.15$ $24.89 $32.74
low 30.77$ 35.93$ 33.73$ 34.03$ 36.95$ 37.18$ 32.29$ 29.74$ 24.46$ 25.89$ 22.12$ 15.06$
PAA Plains All American PL LP high 52.64$ 52.70$ 52.25$ 51.71$ 50.63$ 47.98$ 44.29$ 41.65$ 35.97$ 34.98$ 33.00$ 24.76$ 23.10$ $27.15 $40.25
low 45.84$ 48.71$ 45.81$ 48.56$ 46.12$ 43.00$ 38.56$ 30.06$ 26.71$ 29.24$ 23.11$ 17.83$
PAGP Plains GP Holdings, L.P. high 28.20$ 28.81$ 28.96$ 29.87$ 29.79$ 28.39$ 26.64$ 25.67$ 20.02$ 19.49$ 16.26$ 12.80$ 9.45$ $13.61 $22.60
low 24.01$ 26.24$ 27.06$ 27.26$ 27.57$ 25.81$ 23.52$ 16.59$ 16.28$ 15.51$ 10.41$ 7.18$
MONTANA DEPARTMENT OF REVENUE
Support of Stock Price - From YAHOO Finance
Industry: Liquid Pipelines
2017 Assessment Year
LP-21
Ticker Company Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
End of
Year
Closing
4th Qtr
Average
Annual
Average
MONTANA DEPARTMENT OF REVENUE
Support of Stock Price - From YAHOO Finance
Industry: Liquid Pipelines
2017 Assessment Year
PSXP Phillips 66 Partners high 81.63$ 79.81$ 74.99$ 76.94$ 76.95$ 75.20$ 72.25$ 63.49$ 61.91$ 61.73$ 66.75$ 62.99$ 61.40$ $57.28 $64.60
low 61.50$ 69.60$ 66.84$ 67.46$ 70.12$ 69.21$ 56.10$ 40.00$ 42.83$ 48.58$ 57.44$ 46.20$
SXL Sunoco Logistics Partners L.P. high 43.49$ 46.72$ 44.40$ 44.74$ 44.90$ 40.12$ 38.65$ 37.50$ 34.06$ 32.89$ 32.18$ 28.21$ 25.70$ $28.01 $36.06
low 36.62$ 41.15$ 39.79$ 40.77$ 39.02$ 37.10$ 33.63$ 29.17$ 25.44$ 26.63$ 26.76$ 21.41$
TLLP Tesoro Logistics LP high 59.80$ 60.19$ 57.70$ 61.74$ 59.92$ 60.37$ 57.90$ 55.83$ 53.72$ 56.85$ 56.92$ 51.83$ 50.32$ $50.21 $53.50
low 49.33$ 54.00$ 50.78$ 53.01$ 55.60$ 55.34$ 50.84$ 46.52$ 40.14$ 44.44$ 49.95$ 41.24$
VLP Valero Energy Partners LP high 50.69$ 54.92$ 55.00$ 53.64$ 52.56$ 54.87$ 52.44$ 52.09$ 54.50$ 51.23$ 52.49$ 53.25$ 51.61$ $47.34 $48.55
low 38.53$ 47.77$ 48.40$ 48.13$ 48.54$ 49.45$ 41.02$ 40.74$ 37.96$ 41.94$ 44.50$ 40.64$
WMB Williams Cos high 45.57$ 50.69$ 51.15$ 52.88$ 54.49$ 61.38$ 58.77$ 55.42$ 48.47$ 44.51$ 40.76$ 36.97$ 25.70$ $35.54 $45.63
low 40.07$ 43.61$ 45.70$ 49.64$ 48.41$ 46.28$ 51.34$ 43.33$ 34.64$ 36.60$ 33.48$ 20.95$
XOM Exxon Mobil high 93.05$ 93.45$ 88.52$ 88.67$ 90.09$ 85.97$ 83.53$ 79.29$ 75.47$ 83.88$ 87.44$ 82.13$ 77.95$ $79.70 $82.53
low 86.03$ 87.50$ 82.68$ 83.81$ 84.77$ 82.80$ 78.93$ 66.55$ 71.51$ 73.03$ 77.91$ 73.79$
LP-22
Railroads
2017 Capitalization Rate StudyFinal
RR-2
Capital Structure
Equity 73.00% Page RR-4Debt 27.00% Page RR-4
Equity Cost of Capital
Capital Asset Pricing Model 9.99% Page RR-5Dividend Growth Model (g = Earnings Growth) 9.10% Page RR-9Dividend Growth Model (g = Dividends Growth) 9.60% Page RR-9Dividend Growth Model (g = b x ROE) 14.00% Page RR-9
9.80%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 3.50% Page RR-12Mergent's Corporate Bond Yields:
A 3.96%
Baa 4.72%
4.10%
Source of Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 73.00% 9.80% 9.80% 7.15%
Debt 27.00% 4.10% 38.00% 2.54% 0.69%
WACC 100.00% 7.84%
WACC (Rounded) 7.90%
Railroads - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Railroads
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
RR-3
Capital Structure
Equity 73.00% Page RR-4Debt 27.00% Page RR-4
Equity Cost of Capital
NOI After-tax 5.50% Page RR-13GCF 9.00% Page RR-13
Debt Cost of Capital
Standard and Poor's Current Yield 5.40% Page RR-14Calculated Current Yield 4.60% Page RR-15
5.00%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 73.00% 5.50% 5.50% 4.02%
Debt 27.00% 5.00% 38.00% 3.10% 0.84%
Total 100.00% 4.85%
Total (Rounded) 4.90%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 73.00% 9.00% 9.00% 6.57%
Debt 27.00% 5.00% 38.00% 3.10% 0.84%
WACC 100.00% 7.41%
Total (Rounded) 7.50%
Railroads - GCF Direct Capitalization Rate
2017 Assessment Year
Industry: Railroads
Direct Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Railroads - NOI After-tax Direct Capitalization Rate
RR-4
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV
Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred,
LT Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLease
s
Value Line Value Line 10-K Yahoo ExF Value Line 10-K 10-K G+H+I+J G/K H/K (I+J)/K(000) ($000) ($000) ($000) ($000) ($000)
Can. Pacific Railway** CP RAILROAD B++ 146,300 148.32 21,699,947 0 7,433,849 201,525 29,335,321 74% 0% 26%
CSX Corp. CSX RAILROAD B++ 928,180 33.53 31,123,422 0 12,096,000 183,757 43,403,180 72% 0% 28%
Genesee & Wyoming GWR RAILROAD B+ 62,121 71.39 4,434,701 0 2,303,531 434,037 7,172,268 62% 0% 38%
Kansas City South'n KSU RAILROAD A 106,607 88.33 9,416,207 6,100 2,303,800 254,080 11,980,187 79% 0% 21%
Norfolk Southern NSC RAILROAD A 290,418 100.43 29,167,124 0 11,626,000 484,399 41,277,523 71% 0% 29%
Union Pacific UNP RAILROAD A++ 815,824 97.44 79,495,291 0 15,900,000 2,463,509 97,858,800 81% 0% 19%
All Companies 175,336,693 6,100 51,663,180 4,021,306 231,027,279 76% 0% 24%
Average 73% 0% 27%
Median 73% 0% 27%
High 81% 0% 38%
Low 62% 0% 19%
Say 73% 27%
*Market value is estimated fair value of debt from 10-K notes to financial statements
**CAD converted to USD 1CAD=.7448USD at 12/31/16 http://www.bankofcanada.ca/rates/exchange/legacy-noon-and-closing-rates/usd-can-summary/
Notes/Rational for Changes to Guideline Companies
2016 No Changes to Guideline Companies
2017 - CNI removed due to lack of data.
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Railroads
2017 Assessment Year
RR-5
Railroads
k e = Cost of Equity 9.99%
R f = Risk Free Rate 2.79%
β = Beta 1.20
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2 and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates
3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
"Value Line Selection & Opinion", Value Line (January 6, 2017)
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Railroads
2017 Assessment Year
k e = R f + β x ERP
RR-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Railroads
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR 3 Stage Dividend Growth Model, S & P 500, See Exhibit
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
RR-7
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Railroads
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 6.00%
5
Nominal Growth
Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal Disability Insurance Trust Funds (June 22, 2016)
RR-8
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value LineCan. Pacific Railway CP RAILROAD B++ 1.20
CSX Corp. CSX RAILROAD B++ 1.25
Genesee & Wyoming GWR RAILROAD B+ 1.45
Kansas City South'n KSU RAILROAD A 1.15
Norfolk Southern NSC RAILROAD A 1.15
Union Pacific UNP RAILROAD A++ 1.05
Average 1.21
Median 1.18
High 1.45
Low 1.05
Say 1.20
2017 Assessment Year
Industry: Railroads
Support for Beta Selection in CAPM
MONTANA DEPARTMENT OF REVENUE
RR-9
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est
Payout Ratio
Retention
Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity
Cost of
Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPSb =
1-Payout Ratio ROEg =
Earnings gg =
Dividends gg =
b x ROEK e
g = Earnings g
K e
g = Dividends g
K e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value LineMulti Stg g
WrkshtMulti Stg g
Wrksht H*I E+J E+K E+LCan. Pacific Railway CP 148.32 1.50 1.01% 8.50 17.65% 82.35% 27.00% 9.57% 10.51% 22.24% 10.58% 11.52% 23.25%
CSX Corp. CSX 33.53 0.78 2.33% 2.00 39.00% 61.00% 14.50% 6.74% 7.68% 8.85% 9.06% 10.01% 11.17%
Genesee & Wyoming GWR 71.39 0.00 3.20 6.00% 5.80% 1.71%
Kansas City South'n KSU 88.33 1.36 1.54% 5.15 26.41% 73.59% 12.00% 7.37% 8.31% 8.83% 8.91% 9.85% 10.37%
Norfolk Southern NSC 100.43 2.44 2.43% 6.20 39.35% 60.65% 13.50% 5.80% 4.22% 8.19% 8.22% 6.65% 10.62%
Union Pacific UNP 97.44 2.40 2.46% 5.60 42.86% 57.14% 21.50% 6.11% 7.68% 12.29% 8.57% 10.15% 14.75%
Average 1.95% 33.05% 66.95% 15.75% 6.90% 6.69% 12.08% 9.07% 9.64% 14.03%
Median 2.33% 39.00% 61.00% 14.00% 6.42% 7.68% 8.85% 8.91% 10.01% 11.17%
High 2.46% 42.86% 82.35% 27.00% 9.57% 10.51% 22.24% 10.58% 11.52% 23.25%
Low 1.01% 17.65% 57.14% 6.00% 5.80% 1.71% 8.19% 8.22% 6.65% 10.37%
Say 9.10% 9.60% 14.00%
Ke = (D1 / P0) + g
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Railroads
2017 Assessment Year
RR-10
Company Can. Pacific Rail CP Compnay CSX Corp. CSX Company Genesee & WY GWR
Value Line 5 yr est. earnings growth 12.50% Value Line 5 yr est. earnings growth 8.00% Value Line 5 yr est. earnings growth 6.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.1250 1 30 0.0800 1 30 0.07
2 29 0.1250 2 29 0.0800 2 29 0.07
3 28 0.1250 3 28 0.0800 3 28 0.07
4 27 0.1250 4 27 0.0800 4 27 0.07
5 26 0.1250 5 26 0.0800 5 26 0.07
6 25 0.1201 6 25 0.0779 6 25 0.06
7 24 0.1151 7 24 0.0758 7 24 0.06
8 23 0.1102 8 23 0.0736 8 23 0.06
9 22 0.1053 9 22 0.0715 9 22 0.06
10 21 0.1003 10 21 0.0694 10 21 0.06
11 20 0.0954 11 20 0.0673 11 20 0.06
12 19 0.0904 12 19 0.0651 12 19 0.06
13 18 0.0855 13 18 0.0630 13 18 0.06
14 17 0.0806 14 17 0.0609 14 17 0.05
15 16 0.0756 15 16 0.0588 15 16 0.05
16 15 0.0707 16 15 0.0566 16 15 0.05
17 14 0.0658 17 14 0.0545 17 14 0.05
18 13 0.0608 18 13 0.0524 18 13 0.05
19 12 0.0559 19 12 0.0503 19 12 0.05
20 11 0.0509 20 11 0.0481 20 11 0.05
21 10 0.0460 21 10 0.0460 21 10 0.05
22 9 0.0460 22 9 0.0460 22 9 0.05
23 8 0.0460 23 8 0.0460 23 8 0.05
24 7 0.0460 24 7 0.0460 24 7 0.05
25 6 0.0460 25 6 0.0460 25 6 0.05
26 5 0.0460 26 5 0.0460 26 5 0.05
27 4 0.0460 27 4 0.0460 27 4 0.05
28 3 0.0460 28 3 0.0460 28 3 0.05
29 2 0.0460 29 2 0.0460 29 2 0.05
30 1 0.0460 30 1 0.0460 30 1 0.05
Weighted Average 9.57% Weighted Average 6.74% Weighted Average 5.80%
Value Line 5 yr est. div'd growth 14.00% Value Line 5 yr est. div'd growth 9.50% Value Line 5 yr est. div'd growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.1400 1 30 0.0950 1 30 0.00
2 29 0.1400 2 29 0.0950 2 29 0.00
3 28 0.1400 3 28 0.0950 3 28 0.00
4 27 0.1400 4 27 0.0950 4 27 0.00
5 26 0.1400 5 26 0.0950 5 26 0.00
6 25 0.1341 6 25 0.0919 6 25 0.00
7 24 0.1283 7 24 0.0889 7 24 0.01
8 23 0.1224 8 23 0.0858 8 23 0.01
9 22 0.1165 9 22 0.0828 9 22 0.01
10 21 0.1106 10 21 0.0797 10 21 0.01
11 20 0.1048 11 20 0.0766 11 20 0.02
12 19 0.0989 12 19 0.0736 12 19 0.02
13 18 0.0930 13 18 0.0705 13 18 0.02
14 17 0.0871 14 17 0.0674 14 17 0.03
15 16 0.0813 15 16 0.0644 15 16 0.03
16 15 0.0754 16 15 0.0613 16 15 0.03
17 14 0.0695 17 14 0.0583 17 14 0.03
18 13 0.0636 18 13 0.0552 18 13 0.04
19 12 0.0578 19 12 0.0521 19 12 0.04
20 11 0.0519 20 11 0.0491 20 11 0.04
21 10 0.0460 21 10 0.0460 21 10 0.05
22 9 0.0460 22 9 0.0460 22 9 0.05
23 8 0.0460 23 8 0.0460 23 8 0.05
24 7 0.0460 24 7 0.0460 24 7 0.05
25 6 0.0460 25 6 0.0460 25 6 0.05
26 5 0.0460 26 5 0.0460 26 5 0.05
27 4 0.0460 27 4 0.0460 27 4 0.05
28 3 0.0460 28 3 0.0460 28 3 0.05
29 2 0.0460 29 2 0.0460 29 2 0.05
30 1 0.0460 30 1 0.0460 30 1 0.05
Weighted Average 10.51% Weighted Average 7.68% Weighted Average 1.71%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Railroads
2017 Assessment Year
RR-11
Company Kansas South'n KSU Company Norfolk South'n NSC Company Union Pacific UNP
Value Line 5 yr est. earnings growth 9.00% Value Line 5 yr est. earnings growth 6.50% Value Line 5 yr est. earnings growth 7.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.0900 1 30 0.0650 1 30 0.07
2 29 0.0900 2 29 0.0650 2 29 0.07
3 28 0.0900 3 28 0.0650 3 28 0.07
4 27 0.0900 4 27 0.0650 4 27 0.07
5 26 0.0900 5 26 0.0650 5 26 0.07
6 25 0.0873 6 25 0.0638 6 25 0.07
7 24 0.0845 7 24 0.0626 7 24 0.07
8 23 0.0818 8 23 0.0614 8 23 0.07
9 22 0.0790 9 22 0.0603 9 22 0.06
10 21 0.0763 10 21 0.0591 10 21 0.06
11 20 0.0735 11 20 0.0579 11 20 0.06
12 19 0.0708 12 19 0.0567 12 19 0.06
13 18 0.0680 13 18 0.0555 13 18 0.06
14 17 0.0653 14 17 0.0543 14 17 0.06
15 16 0.0625 15 16 0.0531 15 16 0.06
16 15 0.0598 16 15 0.0519 16 15 0.05
17 14 0.0570 17 14 0.0508 17 14 0.05
18 13 0.0543 18 13 0.0496 18 13 0.05
19 12 0.0515 19 12 0.0484 19 12 0.05
20 11 0.0488 20 11 0.0472 20 11 0.05
21 10 0.0460 21 10 0.0460 21 10 0.05
22 9 0.0460 22 9 0.0460 22 9 0.05
23 8 0.0460 23 8 0.0460 23 8 0.05
24 7 0.0460 24 7 0.0460 24 7 0.05
25 6 0.0460 25 6 0.0460 25 6 0.05
26 5 0.0460 26 5 0.0460 26 5 0.05
27 4 0.0460 27 4 0.0460 27 4 0.05
28 3 0.0460 28 3 0.0460 28 3 0.05
29 2 0.0460 29 2 0.0460 29 2 0.05
30 1 0.0460 30 1 0.0460 30 1 0.05
Weighted Average 7.37% Weighted Average 5.80% Weighted Average 6.11%
Value Line 5 yr est. div'd growth 10.50% Value Line 5 yr est. div'd growth 4.00% Value Line 5 yr est. div'd growth 9.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.1050 1 30 0.0400 1 30 0.10
2 29 0.1050 2 29 0.0400 2 29 0.10
3 28 0.1050 3 28 0.0400 3 28 0.10
4 27 0.1050 4 27 0.0400 4 27 0.10
5 26 0.1050 5 26 0.0400 5 26 0.10
6 25 0.1013 6 25 0.0404 6 25 0.09
7 24 0.0976 7 24 0.0408 7 24 0.09
8 23 0.0939 8 23 0.0411 8 23 0.09
9 22 0.0903 9 22 0.0415 9 22 0.08
10 21 0.0866 10 21 0.0419 10 21 0.08
11 20 0.0829 11 20 0.0423 11 20 0.08
12 19 0.0792 12 19 0.0426 12 19 0.07
13 18 0.0755 13 18 0.0430 13 18 0.07
14 17 0.0718 14 17 0.0434 14 17 0.07
15 16 0.0681 15 16 0.0438 15 16 0.06
16 15 0.0644 16 15 0.0441 16 15 0.06
17 14 0.0608 17 14 0.0445 17 14 0.06
18 13 0.0571 18 13 0.0449 18 13 0.06
19 12 0.0534 19 12 0.0453 19 12 0.05
20 11 0.0497 20 11 0.0456 20 11 0.05
21 10 0.0460 21 10 0.0460 21 10 0.05
22 9 0.0460 22 9 0.0460 22 9 0.05
23 8 0.0460 23 8 0.0460 23 8 0.05
24 7 0.0460 24 7 0.0460 24 7 0.05
25 6 0.0460 25 6 0.0460 25 6 0.05
26 5 0.0460 26 5 0.0460 26 5 0.05
27 4 0.0460 27 4 0.0460 27 4 0.05
28 3 0.0460 28 3 0.0460 28 3 0.05
29 2 0.0460 29 2 0.0460 29 2 0.05
30 1 0.0460 30 1 0.0460 30 1 0.05
Weighted Average 8.31% Weighted Average 4.22% Weighted Average 7.68%
Industry: Railroads
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
RR-12
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Canadian Pac Ry Co 4 136447AW9 Perpetual Cons Deb Stock 1/1/2022 6 AA- 7.48 8.52 7.97 7.42 7.36 6.32 6.54 4.53 5.07 5.07 6.20 7.39 6.66% 6.22%
Canadian National Railway Com 7.62 136375AY8 Deb 5/15/2023 7 A 3.42 3.41 3.36 3.30 3.20 2.78 2.69 2.69 2.89 2.89 3.36 3.51 3.12% 3.25%
Canadian National Railway Com 6.8 136375BA9 Nt 7/15/2018 2 A 1.96 1.98 2.02 2.06 1.93 1.73 1.47 1.28 1.48 1.48 1.74 1.85 1.75% 1.69%
Canadian National Railway Com 6.9 136375BD3 Nt 7/15/2028 12 A 3.30 3.16 3.12 3.07 3.03 2.82 2.69 2.67 2.95 2.95 3.26 3.46 3.04% 3.22%
Canadian National Railway Com 6.71 136375BE1 Puttable Reset Secs Purs 7/15/2036 20 A
Northern Pac.Ry 3 665585JP1 GenLn Mtg 01/01/2047 31 A 5.40 5.41 5.44 5.31 5.31 5.12 4.33 4.82 4.75 4.75 4.68 4.58 4.99% 4.67%
Northern Pac.Ry 3 665585KH7 Gen LnMtg-Stpd 01/01/2047 31 A 5.47 5.48 4.35 4.56 4.58 5.11 4.33 4.82 4.75 4.75 4.68 4.58 4.79% 4.67%
Union Pacific Corp. 7.12 907818BY3 Deb 02/01/2028 12 A 3.83 3.59 3.48 3.37 3.37 2.95 3.06 3.13 3.33 3.33 3.81 3.91 3.43% 3.68%
Union Pacific Corp. 6.62 907818CF3 Deb 02/01/2029 13 A 3.63 3.43 3.28 3.13 3.24 2.81 2.97 3.01 3.21 3.21 3.66 3.58 3.26% 3.48%
Union Pacific Corp. 6.25 907818CU0 Deb 05/01/2034 18 A 4.31 4.14 4.08 4.01 3.99 3.69 3.73 3.63 3.88 3.88 4.19 4.15 3.97% 4.07%
Union Pacific Corp. 5.65 907818CW6 Nts 05/01/2017 1 A 1.56 1.58 1.31 1.03 1.10 0.87 1.07 1.16 1.18 1.18 1.33 1.05 1.20% 1.19%
Union Pacific Corp. 6.15 907818CX4 Deb 05/01/2037 21 BBB+ 4.64 4.46 4.37 4.27 4.14 3.80 3.76 3.76 3.88 3.88 4.34 4.41 4.14% 4.21%
Burlington Northern 8.75 121897WQ1 Deb 02/25/2022 6 BBB+ 3.58 2.89 2.65 2.40 2.43 2.02 2.20 2.31 2.19 2.19 2.75 2.96 2.55% 2.63%
Burlington NorthernR.R. 3.8 121899CC0 Con Mtg L 01/01/2020 4 BBB+ 3.12 2.98 2.90 2.81 2.88 2.55 2.65 2.18 2.25 2.25 2.81 2.96 2.69% 2.67%
Burlington NorthernR.R. 6.55 121899CD8 Con Mtg K 01/01/2020 4 BBB+ 3.18 2.82 2.80 2.78 2.86 2.02 2.20 2.31 2.22 2.22 2.78 2.93 2.59% 2.64%
Burlington NorthernR.R. 6.55 121899CE6 Con Mtg O 01/01/2020 4 BBB+ 3.18 2.82 2.80 2.78 2.86 2.02 2.20 2.31 2.22 2.22 2.78 2.93 2.59% 2.64%
Burlington NorthernR.R. 8.15 121899CF3 Con Mtg N 01/01/2020 4 BBB+ 3.47 2.14 2.37 2.59 2.66 3.37 3.50 3.54 2.18 2.18 2.73 2.78 2.79% 2.56%
Burlington NorthernR.R. 8.15 121899CG1 Con Mtg P 01/01/2020 4 BBB+ 3.47 2.14 2.37 2.59 2.66 3.37 3.50 3.54 2.18 2.18 2.73 2.78 2.79% 2.56%
Burlington NorthernR.R. 3.2 121899CH9 Con Mtg M 01/01/2045 29 BBB+ 5.52 5.03 4.82 4.61 4.71 4.40 4.40 3.94 4.12 4.12 4.56 4.72 4.58% 4.47%
CSX Corp. 8.62 126408AM5 Deb 05/15/2022 6 BBB+ 3.74 3.60 3.35 3.10 3.22 3.00 2.76 2.85 2.90 2.90 3.49 3.45 3.20% 3.28%
CSX Corp. 8.1 126408AQ6 Deb 09/15/2022 6 BBB+ 3.44 3.23 3.29 3.35 3.43 2.98 3.12 3.23 3.32 3.32 3.87 3.79 3.36% 3.66%
CSX Corp. 5.6 126408GJ6 Nts 05/01/2017 1 BBB+ 1.78 1.62 1.54 1.46 1.17 0.97 1.05 1.16 0.69 0.69 0.00 0.00 1.01% 0.23%
CSX Corp. 6.15 126408GK3 Nts 05/01/2037 21 BBB+ 4.92 4.81 4.56 4.31 4.24 3.96 3.89 3.89 4.16 4.16 4.55 4.46 4.33% 4.39%
Norfolk Southern Corp. 7.7 655844AE8 Nts 05/15/2017 1 BBB+ 1.54 1.47 1.41 1.35 1.22 1.13 1.23 1.22 1.15 1.15 1.30 1.47 1.30% 1.31%
Norfolk Southern Corp. 7.05 655844AF5 Nts 05/01/2037 21 BBB+ 5.10 4.81 4.62 4.43 4.29 4.14 4.10 4.04 4.31 4.31 4.59 4.42 4.43% 4.44%
Norfolk Southern Corp. 7.8 655844AJ7 Nts 05/15/2027 11 BBB+ 4.04 3.78 3.67 3.56 3.56 3.19 3.25 3.17 3.28 3.28 3.81 3.88 3.54% 3.66%
Norfolk Southern Corp. 7.9 655844AK4 Nt 5/15/2097 81 BBB+ 5.62 5.42 5.45 5.48 5.51 5.11 5.12 5.14 5.35 5.35 5.81 5.50 5.41% 5.55%
Norfolk Southern Corp. 7.25 655844AQ1 Sr Nts 02/15/2031 15 BBB+ 4.58 4.38 4.10 3.82 3.81 3.39 3.41 3.48 3.49 3.49 4.07 4.10 3.84% 3.89%
Norfolk Southern Corp. 6 655844AV0 Fixed Rt Sr Nt 3/15/2105 89 BBB+ 5.45 5.52 5.43 5.33 5.22 4.96 4.83 4.90 5.17 5.17 5.55 5.20 5.23% 5.31%
Norfolk Southern Corp. 5.59 655844AW8 Nts 05/17/2025 9 BBB+ 3.77 3.55 3.28 3.01 3.15 2.72 2.80 2.95 3.10 3.10 3.59 3.65 3.22% 3.45%
Norfolk Southern Corp. 5.64 655844AX6 Nts 05/17/2029 13 BBB+ 3.97 3.70 3.76 3.82 3.86 3.47 3.59 3.60 3.60 3.60 4.13 4.17 3.77% 3.97%
CSX Corp. 6 126408GH0 Nts 10/01/2036 20 BBB+ 4.82 4.78 4.55 4.31 4.19 3.93 3.93 3.88 4.09 4.09 4.48 4.53 4.30% 4.37%
CSX Corp MTN BE 6.8 12641LBU6 MTN Ser C 12/1/2028 12 BBB+ 4.63 4.45 4.14 3.83 3.82 3.52 3.49 3.41 3.54 3.54 4.15 4.23 3.90% 3.97%
Consolidated Rail 9.75 209864AT4 Deb 6/15/2020 4 BBB+ 3.70 3.49 3.46 3.43 3.45 3.15 3.19 3.21 2.92 2.92 2.98 3.12 3.25% 3.01%
Missouri Pacific RR. 4.75 606198LF4 Gen Mtg Inc Ser A 1/1/2020 4 BBB
Missouri Pacific RR. 4.75 606198LG2 Gen Mtg Ser B 1/1/2030 14 BBB
Missouri Pacific RR. 5 606198LH0 Income Deb 1/1/2045 29 NR
Norfolk Southern Corp. 9 655844AA6 Nts 03/01/2021 5 NR 3.64 3.43 3.44 3.44 3.51 3.08 3.25 3.36 3.43 3.43 3.99 4.13 3.51% 3.85%
38 34 34 34 34 34 34 34 34 34 34 34 34
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 3.49% 3.50%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 3.49% 3.49%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.69% 4.67%
Investment Grade (BBB- & Above) 4.69% 4.67%
Say: 3.50%
All Bonds
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Railroads
2017 Assessment Year
RR-13
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS VL Est EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF
Ratio
Ke
Estimate -
Cash
Flow
(Hist.
P/CF)
Ke
Estimate -
Cash
Flow
(Est.
P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/MCan. Pacific Railway CP 148.32 7.75 8.50 19.14 17.45 5.23% 5.73% 11.25 12.00 13.18 12.36 7.58% 8.09%
CSX Corp. CSX 33.53 1.81 2.00 18.53 16.77 5.40% 5.96% 3.25 3.45 10.32 9.72 9.69% 10.29%
Genesee & Wyoming GWR 71.39 3.64 3.20 19.61 22.31 5.10% 4.48% 6.95 7.15 10.27 9.98 9.74% 10.02%
Kansas City South'n KSU 88.33 4.43 5.15 19.94 17.15 5.02% 5.83% 7.34 8.15 12.03 10.84 8.31% 9.23%
Norfolk Southern NSC 100.43 5.62 6.20 17.87 16.20 5.60% 6.17% 8.76 9.25 11.46 10.86 8.72% 9.21%
Union Pacific UNP 97.44 5.08 5.60 19.18 17.40 5.21% 5.75% 7.69 8.25 12.67 11.81 7.89% 8.47%
Average 19.04 17.88 5.26% 5.65% 11.66 10.93 8.66% 9.22%
Median 19.16 17.28 5.22% 5.79% 11.75 10.85 8.52% 9.22%
High 19.94 22.31 5.60% 6.17% 13.18 12.36 9.74% 10.29%
Low 17.87 16.20 5.02% 4.48% 10.27 9.72 7.58% 8.09%
Say 5.50% 9.00%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
Industry: Railroads
2017 Assessment Year
RR-14
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
Canadian Pac Ry Co 4 136447AW9 Perpetual Cons Deb Stock 1/1/2022 6 AA- 4.78 5.03 4.89 4.74 4.71 4.47 4.51 4.10 4.20 4.20 4.42 4.65 4.56% 4.42%
Canadian National Railway Com 7.62 136375AY8 Deb 5/15/2023 7 A 6.00 6.01 6.01 6.00 5.98 5.85 5.84 5.86 5.95 5.95 6.11 6.18 5.98% 6.08%
Canadian National Railway Com 6.8 136375BA9 Nt 7/15/2018 2 A 6.09 6.11 6.14 6.16 6.17 6.17 6.16 6.16 6.24 6.24 6.28 6.32 6.19% 6.28%
Canadian National Railway Com 6.9 136375BD3 Nt 7/15/2028 12 A 5.05 4.99 4.98 4.97 4.96 4.88 4.83 4.83 4.96 4.96 5.11 5.20 4.98% 5.09%
Canadian National Railway Com 6.71 136375BE1 Puttable Reset Secs Purs 7/15/2036 20 A 5.02 4.96 4.89 4.82 4.83 4.72 4.61 4.63 4.76 4.76 4.98 4.99 4.83% 4.91%
Northern Pac.Ry 3 665585JP1 GenLn Mtg 01/01/2047 31 A 4.68 4.68 4.71 4.60 4.60 4.44 3.86 4.22 4.16 4.16 4.10 4.04 4.35% 4.10%
Northern Pac.Ry 3 665585KH7 Gen LnMtg-Stpd 01/01/2047 31 A 4.74 4.74 3.88 4.03 4.05 4.44 3.86 4.22 4.16 4.16 4.10 4.04 4.20% 4.10%
Union Pacific Corp. 7.12 907818BY3 Deb 02/01/2028 12 A 5.41 5.31 5.27 5.23 5.24 5.06 5.12 5.16 5.26 5.26 5.48 5.53 5.28% 5.42%
Union Pacific Corp. 6.62 907818CF3 Deb 02/01/2029 13 A 5.06 4.97 4.91 4.85 4.91 4.72 4.80 4.83 4.93 4.93 5.13 5.11 4.93% 5.06%
Union Pacific Corp. 6.25 907818CU0 Deb 05/01/2034 18 A 5.03 4.93 4.90 4.86 4.85 4.69 4.71 4.66 4.81 4.81 4.99 4.97 4.85% 4.92%
Union Pacific Corp. 5.65 907818CW6 Nts 05/01/2017 1 A 5.37 5.39 5.40 5.40 5.42 5.43 5.46 5.48 5.52 5.52 5.54 5.56 5.46% 5.54%
Union Pacific Corp. 6.15 907818CX4 Deb 05/01/2037 21 BBB+ 5.11 5.00 4.95 4.89 4.80 4.60 4.58 4.58 4.66 4.66 4.95 4.99 4.81% 4.87%
Burlington Northern 8.75 121897WQ1 Deb 02/25/2022 6 BBB+ 6.83 6.62 6.57 6.51 6.54 6.44 6.52 6.57 6.59 6.59 6.77 6.86 6.62% 6.74%
Burlington NorthernR.R. 3.8 121899CC0 Con Mtg L 01/01/2020 4 BBB+ 3.70 3.69 3.68 3.67 3.68 3.64 3.66 3.61 3.63 3.63 3.69 3.71 3.67% 3.68%
Burlington NorthernR.R. 6.55 121899CD8 Con Mtg K 01/01/2020 4 BBB+ 5.83 5.77 5.78 5.79 5.82 5.68 5.73 5.77 5.78 5.78 5.89 5.93 5.80% 5.87%
Burlington NorthernR.R. 6.55 121899CE6 Con Mtg O 01/01/2020 4 BBB+ 5.83 5.77 5.78 5.79 5.82 5.68 5.73 5.77 5.78 5.78 5.89 5.93 5.80% 5.87%
Burlington NorthernR.R. 8.15 121899CF3 Con Mtg N 01/01/2020 4 BBB+ 6.96 6.67 6.75 6.82 6.86 7.04 7.09 7.12 6.89 6.89 7.03 7.06 6.93% 6.99%
Burlington NorthernR.R. 8.15 121899CG1 Con Mtg P 01/01/2020 4 BBB+ 6.96 6.67 6.75 6.82 6.86 7.04 7.09 7.12 6.89 6.89 7.03 7.06 6.93% 6.99%
Burlington NorthernR.R. 3.2 121899CH9 Con Mtg M 01/01/2045 29 BBB+ 4.80 4.43 4.28 4.12 4.19 3.97 3.97 3.66 3.77 3.77 4.07 4.18 4.10% 4.01%
CSX Corp. 8.62 126408AM5 Deb 05/15/2022 6 BBB+ 6.78 6.75 6.69 6.62 6.68 6.63 6.57 6.62 6.68 6.68 6.88 6.89 6.71% 6.82%
CSX Corp. 8.1 126408AQ6 Deb 09/15/2022 6 BBB+ 6.36 6.30 6.34 6.37 6.41 6.28 6.34 6.40 6.46 6.46 6.65 6.64 6.42% 6.58%
CSX Corp. 5.6 126408GJ6 Nts 05/01/2017 1 BBB+ 5.34 5.35 5.36 5.37 5.38 5.39 5.41 5.43 5.46 5.46 0.00 0.00 4.50% 1.82%
CSX Corp. 6.15 126408GK3 Nts 05/01/2037 21 BBB+ 5.30 5.22 5.07 4.91 4.87 4.70 4.65 4.66 4.83 4.83 5.08 5.02 4.93% 4.98%
Norfolk Southern Corp. 7.7 655844AE8 Nts 05/15/2017 1 BBB+ 7.13 7.16 7.19 7.22 7.25 7.28 7.32 7.36 7.44 7.44 7.48 7.52 7.32% 7.48%
Norfolk Southern Corp. 7.05 655844AF5 Nts 05/01/2037 21 BBB+ 5.63 5.44 5.32 5.20 5.11 5.02 5.00 4.97 5.15 5.15 5.33 5.22 5.21% 5.23%
Norfolk Southern Corp. 7.8 655844AJ7 Nts 05/15/2027 11 BBB+ 5.83 5.71 5.67 5.63 5.64 5.49 5.52 5.50 5.57 5.57 5.81 5.85 5.65% 5.74%
Norfolk Southern Corp. 7.9 655844AK4 Nt 5/15/2097 81 BBB+ 5.64 5.44 5.47 5.50 5.53 5.14 5.15 5.17 5.38 5.38 5.83 5.52 5.43% 5.58%
Norfolk Southern Corp. 7.25 655844AQ1 Sr Nts 02/15/2031 15 BBB+ 5.63 5.52 5.38 5.23 5.23 5.02 5.04 5.08 5.10 5.10 5.40 5.43 5.26% 5.31%
Norfolk Southern Corp. 6 655844AV0 Fixed Rt Sr Nt 3/15/2105 89 BBB+ 5.45 5.53 5.44 5.34 5.23 4.97 4.85 4.91 5.18 5.18 5.55 5.21 5.24% 5.31%
Norfolk Southern Corp. 5.59 655844AW8 Nts 05/17/2025 9 BBB+ 4.89 4.82 4.73 4.64 4.70 4.56 4.59 4.65 4.71 4.71 4.88 4.91 4.73% 4.83%
Norfolk Southern Corp. 5.64 655844AX6 Nts 05/17/2029 13 BBB+ 4.81 4.69 4.73 4.76 4.78 4.61 4.66 4.67 4.68 4.68 4.92 4.94 4.74% 4.85%
CSX Corp. 6 126408GH0 Nts 10/01/2036 20 BBB+ 5.20 5.18 5.04 4.89 4.81 4.66 4.66 4.64 4.76 4.76 5.00 5.04 4.89% 4.93%
CSX Corp MTN BE 6.8 12641LBU6 MTN Ser C 12/1/2028 12 BBB+ 5.62 5.54 5.40 5.25 5.25 5.12 5.11 5.08 5.16 5.16 5.45 5.49 5.30% 5.37%
Consolidated Rail 9.75 209864AT4 Deb 6/15/2020 4 BBB+ 7.85 7.81 7.83 7.85 7.88 7.83 7.87 7.91 7.90 7.90 7.95 8.02 7.88% 7.96%
Missouri Pacific RR. 4.75 606198LF4 Gen Mtg Inc Ser A 1/1/2020 4 BBB 4.75 4.74 4.74 4.73 4.77 4.76 4.76 4.78 4.76 4.76 4.83 4.86 4.77% 4.82%
Missouri Pacific RR. 4.75 606198LG2 Gen Mtg Ser B 1/1/2030 14 BBB 4.91 4.86 4.87 4.87 4.88 4.81 4.79 4.91 4.84 4.84 4.92 4.99 4.87% 4.92%
Missouri Pacific RR. 5 606198LH0 Income Deb 1/1/2045 29 NR 5.37 5.20 5.24 5.28 5.34 5.09 5.08 5.08 5.30 5.30 5.40 5.38 5.26% 5.36%
Norfolk Southern Corp. 9 655844AA6 Nts 03/01/2021 5 NR 7.21 7.17 7.20 7.22 7.26 7.16 7.23 7.29 7.36 7.36 7.53 7.59 7.30% 7.49%
38 38 38 38 38 38 38 38 38 38 38 38 38
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 5.44% 5.43%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.39% 5.37%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 4.84% 4.85%
Investment Grade (BBB- & Above) 4.80% 4.80%
Say: 5.40%
All Bonds
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Railroads
2017 Assessment Year
RR-15
A B C D E F G H I J K2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBRSource 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)Can. Pacific Railway CP 471,000 9,750,000 8,957,000 9,981,000 8,684,000 9,865,500 4.77% 8,820,500 1.12
CSX Corp. CSX 579,000 11,340,000 10,535,000 12,096,000 11,293,000 11,718,000 4.94% 10,914,000 1.07
Genesee & Wyoming GWR 75,641 2,158,121 2,157,338 2,303,531 2,273,058 2,230,826 3.39% 2,215,198 1.01
Kansas City Southern KSU 97,700 2,287,500 2,321,100 2,303,800 2,296,900 2,295,650 4.26% 2,309,000 0.99
Norfolk Southern NSC 563,000 11,124,000 9,893,000 11,626,000 10,112,000 11,375,000 4.95% 10,002,500 1.14
Union Pacific UNP 698,000 15,200,000 14,200,000 15,900,000 15,000,000 15,550,000 4.49% 14,600,000 1.07
Total 2,484,341 53,034,976 4.68% 48,861,198 1.09 Average 4.47% 1.07 Median 4.63% 1.07 High 4.95% 1.14
Low 3.39% 0.99
Say 4.60% 1.07
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Debt Component - Calculated Current Yield
Industry: Railroads
RR-16
Ticker Name Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of Year
Closing
4th Qtr Average
Annual Average
CNI Can. National Railway high 54.89$ 59.06$ 63.41$ 66.22$ 61.74$ 61.40$ 64.73$ 65.80$ 65.81$ 67.66$ 67.60$ 70.00$ 67.40$ 66.07$ 61.21$
low 46.23$ 51.75$ 57.51$ 60.48$ 57.12$ 55.73$ 58.21$ 61.40$ 61.11$ 62.83$ 61.72$ 66.58$
CP Can. Pacific Railway high 127.19$ 130.57$ 135.77$ 151.38$ 146.03$ 138.73$ 153.00$ 155.68$ 157.34$ 155.04$ 154.15$ 156.71$ 142.77$ 148.32$ 137.58$
low 97.09$ 111.65$ 119.41$ 128.39$ 127.49$ 119.50$ 127.02$ 141.65$ 144.19$ 142.63$ 139.29$ 142.13$
CSX CSX Corp. high 25.99$ 25.71$ 27.27$ 27.97$ 27.54$ 27.41$ 29.41$ 28.88$ 30.60$ 31.73$ 36.09$ 37.42$ 35.93$ 33.53$ 28.07$
low 21.33$ 21.64$ 24.26$ 24.36$ 24.93$ 24.43$ 25.33$ 27.46$ 27.89$ 30.01$ 30.15$ 35.79$
GWR Genesee & Wyoming high 54.03$ 59.50$ 65.35$ 66.64$ 66.43$ 65.62$ 65.75$ 70.64$ 70.02$ 70.65$ 77.90$ 80.73$ 69.41$ 71.39$ 62.79$
low 41.56$ 47.53$ 56.58$ 56.77$ 55.53$ 52.21$ 57.62$ 61.99$ 64.88$ 65.70$ 64.36$ 68.99$
KSU Kansas City South'n high 74.58$ 85.27$ 88.84$ 98.99$ 95.77$ 93.45$ 99.20$ 100.69$ 97.55$ 96.83$ 93.09$ 89.76$ 84.85$ 88.33$ 87.51$
low 62.20$ 69.60$ 81.43$ 83.00$ 87.27$ 84.01$ 86.52$ 93.17$ 88.86$ 87.62$ 79.30$ 83.36$
NSC Norfolk Southern high 83.66$ 77.15$ 86.66$ 94.10$ 91.05$ 87.50$ 93.09$ 94.43$ 97.28$ 97.82$ 107.32$ 111.43$ 108.07$ 100.43$ 87.93$
low 66.51$ 64.51$ 73.31$ 78.15$ 81.48$ 78.73$ 83.23$ 86.88$ 89.92$ 89.95$ 90.98$ 105.09$
UNP Union Pacific high 79.34$ 82.26$ 85.30$ 89.91$ 88.50$ 90.14$ 96.00$ 96.28$ 98.00$ 98.84$ 102.73$ 106.62$ 103.68$ 97.44$ 88.06$
low 67.06$ 70.35$ 77.80$ 77.29$ 80.68$ 81.96$ 86.01$ 90.68$ 91.32$ 87.79$ 87.06$ 101.61$
Industry: Railroads
2017 Assessment Year
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
Telecommunications
Final2017 Capitalization Rate Study
Tel-2
Capital Structure
Equity 57.00% Page Tel-5Debt 43.00% Page Tel-5
Equity Cost of Capital
Capital Asset Pricing Model 9.09% Page Tel-6Dividend Growth Model (g = Earnings Growth) 11.00% Page Tel-10Dividend Growth Model (g = Dividend Growth) 8.70% Page Tel-10Dividend Growth Model (g = b x ROE) NMF Page Tel-10
9.70%
Debt Cost of Capital
Standard and Poor's Yield to Maturity 4.00% Page Tel-16Mergent's Corporate Bond Yields:
A 3.96%
Baa - Corporate (Annual Avg) 4.72%
Baa - Corporate (4th Qtr Avg) 4.64%
Baa - Corporate (December) 4.83%
4.83%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 57.00% 9.70% 9.70% 5.53%
Debt 43.00% 4.83% 38.00% 2.99% 1.29%
WACC 100.00% 6.82%
WACC (Rounded) 6.90%
Telecommunications - Weighted Average Cost of Capital (WACC)
2017 Assessment Year
Industry: Telecommunications
Yield Capitalization Rate Study
MONTANA DEPARTMENT OF REVENUE
Tel-3
Capital Structure
Equity 57.00% Page Tel-5Debt 43.00% Page Tel-5
Equity Cost of Capital
NOI After-tax 4.50% Page Tel-18GCF 18.70% Page Tel-18
Debt Cost of Capital
Standard and Poor's Current Yield 5.90% Page Tel-19Calculated Current Yield 6.10% Page Tel-20
6.10%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 57.00% 4.50% 4.50% 2.57%
Debt 43.00% 6.10% 38.00% 3.78% 1.63%
Total 100.00% 4.19%
Total (Rounded) 4.20%
Source of
Capital
Capital
Structure Cost of Capital
Marginal Tax
Rate
After-tax Cost
of Capital Weighted Cost
Equity 57.00% 18.70% 18.70% 10.66%
Debt 43.00% 6.10% 38.00% 3.78% 1.63%
WACC 100.00% 12.29%
Total (Rounded) 12.30%
Telecommunications - GCF Direct Capitalization Rate
MONTANA DEPARTMENT OF REVENUE
Direct Capitalization Rate Study
Industry: Telecommunications
2017 Assessment Year
Telecommunications - NOI After-tax Direct Capitalization Rate
Tel-4
A B C D E F G H I J K L M N
Company
Ticker
Symbol
Industry
Group
Financial
Strength
Shares
Outstanding
Avg. 4Q
Stock
Price
MV
Common
Stock
MV Preferred
Stock*
MV Long
Term Debt*
PV of
Operating
Leases
Total
Common,
Preferred, LT
Debt, &
OpLeases % Common
%
Preferred
% Debt &
OpLease
s
Value Line Value Line 10-K Yahoo ExF 10-K 10-K 10-K G+H+I+J G/K H/K (I+J)/K(000) ($000) ($000) ($000) ($000) ($000)
Cincinnati Bell CBB TELUTIL C+ 42,056 49.45 2,079,821 129,400 1,177,900 26,218 3,413,339 61% 4% 35%
Charter Communications CHTR CABLETV B 268,898 266.17 71,573,421 0 64,146,000 0 135,719,421 53% 0% 47%
Consol. Communic. CNSL TELUTIL C++ 50,612 26.01 1,316,596 0 1,390,773 46,856 2,754,225 48% 0% 52%
CenturyLink Inc CTL TELUTIL B++ 546,545 26.17 14,300,350 0 19,639,000 1,844,042 35,783,392 40% 0% 60%
FairPoint Communications Inc. FRP TELESERV C+ 27,074 16.63 450,383 0 932,995 16,136 1,399,513 32% 0% 68%
Frontier Communications FTR TELUTIL C++ 1,172,553 3.74 4,379,485 0 17,539,000 80,953 21,999,439 20% 0% 80%
Sprint Nextel Corp S TELESERV C++ 3,975,000 7.35 29,203,000 0 28,361,000 11,989,803 69,553,803 42% 0% 58%
Shenandoah Telecoms SHEN TELESERV B 48,935 26.71 1,307,135 0 829,265 384,193 2,520,594 52% 0% 48%
AT&T Corp T TELESERV A++ 6,495,231 39.01 253,400,612 0 131,317,000 24,363,317 409,080,929 62% 0% 38%
Telephone & Data Sys TDS TELESERV B 110,165 27.00 2,974,639 1,000 2,480,000 1,154,258 6,609,896 45% 0% 55%
T-Mobile US TMUS TELESERV B+ 826,357 52.40 43,298,369 0 27,679,000 9,748,148 80,725,517 54% 0% 46%
U.S. Cellular USM TELESERV B+ 84,849 37.54 3,185,231 0 2,250,000 1,051,330 6,486,561 49% 0% 51%
Verizon Communications VZ TELESERV A++ 4,242,374 50.02 212,217,703 0 117,584,000 14,975,547 344,777,250 62% 0% 38%
Windstream Holdings WIN TELUTIL C+ 96,300 7.89 759,807 0 4,884,400 414,738 6,058,945 13% 0% 87%
All Companies 640,446,553 130,400 420,210,333 66,095,538 1,126,882,824 57% 0% 43%
Average 45% 0% 54%
Median 48% 0% 52%
High 62% 4% 80%
Low 20% 0% 35%
Say 57% 0% 43%
*Market value of preferred stock assumed to equal book value. Market value of long term debt is fair value.
Notes/Rational for Changes to Guideline Companies
2017 Changes to Guideline Companies
Wireless, Telephone, and Cable studies combined to better match telecommunications industry.
CVC removed, sold to Altice
CRWN removed, no longer publically traded.
TWC removed, merged with CHTR.
GNCMA removed due to regionally limited primary operations.
HCOM removed due to regionally limited primary operations.
CMCSA removed due to company's diverse holdings.
SHEN added.
WIN added.
MONTANA DEPARTMENT OF REVENUE
Support for Capital Structure
Industry: Telecommunications
2017 Assessment Year
Tel-5
Telecom
k e = Cost of Equity 9.09%
R f = Risk Free Rate 2.79%
β = Beta 1.05
ERP = Equity Risk Premium (Rm - Rf) 6.00%
R m = Market Rate of Return 8.79%
Risk Free Rate Measures (Rf):
The Value Line Investment Survey: Selection & Opinion1
January 6, 2017
Page 3197
Selected Yields on Taxable U.S. Treasury Securities
10-year 2.51%
30-year 3.09%
Federal Reserve Statistical Release2 and U.S. Department of the Treasury, Daily Treasury Yield Curve Rates
3
U.S. government securities, Treasury constant maturities, Nominal, December 30, 2016
10-year 2.45%
20-year 2.79%
30-year 3.06%
Risk Free Rate Selected 2.79%
1
2https://www.federalreserve.gov/datadownload/Choose.aspx?rel=H.15
3https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldYear&year=2016
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Telecommunications
2017 Assessment Year
k e = R f + β x ERP
"Value Line Selection & Opinion", Value Line (January 6, 2017)
Tel-6
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Telecommunications
2017 Assessment Year
k e = R f + β x ERP
Equity Risk Premium Measures (ERP = Rm - Rf)
DOR S&P 500, 3 Stage Dividend Growth Model (See Exhibit)
Rm4
Rm Rf ERP
ERP - Ex Ante 8.00% 8.00% 2.79% 5.21%
Duff & Phelps, 2017 Valuation Handbook
Rm4
Rm Rf ERP
ERP "Historical" - Ex Post Arithmetic Avg. 9.73% 9.66% 2.72% 6.94%
ERP "Supply-side" - Ex Post Arithmetic Avg. 8.76% 8.69% 2.72% 5.97%
ERP "Adj. Supply-side" - Ex Post Arithmetic Avg. 7.89% 7.82% 2.72% 5.10%
ERP "Conditional" - Ex Ante 9.50% 4.00% 5.50%
Damodaran Implied ERP (Jan 1, 2017)
Rm4
Rm Rf ERP
Implied Premium (FCFE) - Ex Ante 8.48% 8.14% 2.45% 5.69%
Implied Premium (FCFE with sustainable payout) - Ex Ante 7.29% 6.95% 2.45% 4.50%
Rm4
Rm Rf ERP
Average 8.36% 8.39% 5.56%
Median 8.24% 8.14% 5.50%
High 9.73% 9.66% 6.94%
Low 7.29% 6.95% 4.50%
Equity Risk Premium Selected 8.79% 2.79% 6.00%
4 R m estimated using selected Risk Free Rate (R f )
Tel-7
MONTANA DEPARTMENT OF REVENUE
Capital Asset Pricing Model (CAPM)
Industry: Telecommunications
2017 Assessment Year
k e = R f + β x ERP
Inflation and Growth Estimates5
Inflation
(CPI)
Real Growth
(GDP)
Nominal
Growth Low High
Livingston Survey 2.30% 2.20% 4.50%
Survey of Professional Forecasters 2.30% 2.45% 4.75%
Congressional Budget Office 2.53% 2.17% 4.70%
Office of Budget and Management 2.38% 2.07% 4.45%
OASDI Trustee Report 2.70% 2.70% 5.40%
Average 2.44% 2.32% 4.76%
Median 2.38% 2.20% 4.58%
High 2.70% 2.70% 5.40%
Low 2.30% 2.07% 4.37%
Say 2.40% 2.20% 4.60% 4.37% 5.40%
Rounded 4.00% 6.00%
5 Real Growth Sources: "The Livingston Survey”, Federal Reserve Bank of Philadelphia (December 9, 2016); "Survey of Professional Forecasters”, Federal Reserve Bank of Philadelphia (February 10, 2017); "Congressional Budget Office", An Update to the Budget and Economic Outlook: 2016 to 2026 (August 2016); "Office of Budget and Management", FY 2017 Mid-Session Review (July 15, 2016); "OASDI Trustee Report", Board of Trustees of the Federal Old-Age Survivors Insurance and Federal Disability Insurance Trust Funds (June 22, 2016)
Nominal Growth
Tel-8
A B C D E
Company
Ticker
Symbol
Industry
Group
Financial
Strength Beta
Value Line Value Line Value LineCincinnati Bell CBB TELUTIL C+ 1.20
Charter Communications CHTR CABLETV B 0.95
Consol. Communic. CNSL TELUTIL C++ 0.90
CenturyLink Inc CTL TELUTIL B++ 0.95
FairPoint Communications Inc. FRP TELESERV C+ 1.05
Frontier Communications FTR TELUTIL C++ 1.15
Sprint Nextel Corp S TELESERV C++ 1.35
Shenandoah Telecoms SHEN TELESERV B 1.05
AT&T Corp T TELESERV A++ 0.75
Telephone & Data Sys TDS TELESERV B 1.25
T-Mobile US TMUS TELESERV B+ 1.00
U.S. Cellular USM TELESERV B+ 1.05
Verizon Communications VZ TELESERV A++ 0.75
Windstream Holdings WIN TELUTIL C+ -
Average 1.03
Median 1.05
High 1.35
Low -
Say 1.05
MONTANA DEPARTMENT OF REVENUE
Support for Beta Selection in CAPM
Industry: Telecommunications
2017 Assessment Year
Tel-9
Ke = Cost of Equity g = Sustainable Growth
D1 = Expected Dividend b = Retention Ratio (1 - Payout Ratio)
P0 = Current Price Per Share ROE = Return on Equity
A B C D E F G H I J K L M N O
Company Name Ticker
Avg. 4Q
Stock Price
2017 Est
Dividend
Dividend
Yield
2017 Est
Earnings
Per Share
2017 Est Payout
Ratio
Retention
Ratio
2017 Est
Return on
Equity
Multistage
Long Term
Earnings
Growth
Estimate
Multistage
Long Term
Dividends
Growth
Estimate
Sustainable
Growth*
Cost of
Equity Cost of Equity
Cost of
Equity
P 0 D 1 D 1 /P 0 EPS D 1 /EPSb =
1-Payout Ratio ROEg =
Earnings gg =
Dividends gg =
b x ROEK e
g = Earnings gK e
g = Dividends gK e
g = b x ROE
Yahoo Value Line D/C Value Line D/F 1-G Value LineMulti Stg g
WrkshtMulti Stg g
Wrksht H*I E+J E+K E+LCincinnati Bell CBB 49.45 0.00 0.05 0.00% 3.22% 1.71%
Charter Communications CHTR 266.17 0.00 6.30 5.00% 3.22% 1.71%
Consol. Communic. CNSL 26.01 1.55 5.96% 0.40 387.50% -287.50% 10.00% 19.95% 1.71% -28.75% 25.91% 7.66%
CenturyLink Inc CTL 26.17 2.16 8.26% 2.15 100.47% -0.47% 9.00% 7.68% 1.71% -0.04% 15.94% 9.96%
FairPoint Communications Inc. FRP 16.63 0.00 0.00 0.00% 1.08% 3.22%
Frontier Communications FTR 3.74 0.42 11.24% (0.05) -840.00% 940.00% 0.00% 11.77% 2.02% 0.00% 23.02% 13.27%
Sprint Nextel Corp S 7.35 0.00 (0.40) 0.00% 3.22% 1.71%
Shenandoah Telecoms SHEN 26.71 0.26 0.97% 0.85 30.59% 69.41% 13.50% 8.63% 6.11% 9.37% 9.60% 7.08% 10.34%
AT&T Corp T 39.01 1.96 5.02% 2.95 66.44% 33.56% 14.00% 5.80% 4.54% 4.70% 10.82% 9.56% 9.72%
Telephone & Data Sys TDS 27.00 0.62 2.30% 0.30 206.67% -106.67% 1.00% 6.11% 3.91% -1.07% 8.41% 6.20%
T-Mobile US TMUS 52.40 0.00 1.85 8.00% 3.22% 1.71%
U.S. Cellular USM 37.54 0.00 0.30 0.50% 2.96% 1.71%
Verizon Communications VZ 50.02 2.32 4.64% 3.90 59.49% 40.51% 0.00% 3.59% 2.96% 0.00% 8.23% 7.60%
Windstream Holdings WIN 7.89 0.60 7.60% (3.25) -18.46% 118.46% 0.00% 3.22% 3.22% 0.00% 10.82% 10.82%
Average 5.75% -0.91% 100.91% 4.36% 5.97% 2.71% -1.97% 14.09% 9.02% 10.03%
Median 5.49% 62.96% 37.04% 0.75% 3.40% 1.86% 0.00% 10.82% 8.61% 10.03%
High 11.24% 387.50% 940.00% 14.00% 19.95% 6.11% 9.37% 25.91% 13.27% 10.34%
Low 0.97% -840.00% -287.50% 0.00% 1.08% 1.71% -28.75% 8.23% 6.20% 9.72%
Say 11.00% 8.70% NMF
Ke = (D1 / P0) + g
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Based on Dividend Growth Model
Industry: Telecommunications
2017 Assessment Year
Tel-10
Company CenturyLink CTL Compnay Charter Comm. CHTR Company Cincinnati Bell CBB
Value Line 5 yr est. earnings growth 9.50% Selected Inflation Rate - CAPM 2.40% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.095 1 30 0.024 1 30 0.024
2 29 0.095 2 29 0.024 2 29 0.024
3 28 0.095 3 28 0.024 3 28 0.024
4 27 0.095 4 27 0.024 4 27 0.024
5 26 0.095 5 26 0.024 5 26 0.024
6 25 0.092 6 25 0.025 6 25 0.025
7 24 0.089 7 24 0.027 7 24 0.027
8 23 0.086 8 23 0.028 8 23 0.028
9 22 0.083 9 22 0.030 9 22 0.030
10 21 0.080 10 21 0.031 10 21 0.031
11 20 0.077 11 20 0.032 11 20 0.032
12 19 0.074 12 19 0.034 12 19 0.034
13 18 0.071 13 18 0.035 13 18 0.035
14 17 0.067 14 17 0.036 14 17 0.036
15 16 0.064 15 16 0.038 15 16 0.038
16 15 0.061 16 15 0.039 16 15 0.039
17 14 0.058 17 14 0.041 17 14 0.041
18 13 0.055 18 13 0.042 18 13 0.042
19 12 0.052 19 12 0.043 19 12 0.043
20 11 0.049 20 11 0.045 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 7.68% Weighted Average 3.22% Weighted Average 3.22%
Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.000 1 30 0.000 1 30 0.000
2 29 0.000 2 29 0.000 2 29 0.000
3 28 0.000 3 28 0.000 3 28 0.000
4 27 0.000 4 27 0.000 4 27 0.000
5 26 0.000 5 26 0.000 5 26 0.000
6 25 0.003 6 25 0.003 6 25 0.003
7 24 0.006 7 24 0.006 7 24 0.006
8 23 0.009 8 23 0.009 8 23 0.009
9 22 0.012 9 22 0.012 9 22 0.012
10 21 0.014 10 21 0.014 10 21 0.014
11 20 0.017 11 20 0.017 11 20 0.017
12 19 0.020 12 19 0.020 12 19 0.020
13 18 0.023 13 18 0.023 13 18 0.023
14 17 0.026 14 17 0.026 14 17 0.026
15 16 0.029 15 16 0.029 15 16 0.029
16 15 0.032 16 15 0.032 16 15 0.032
17 14 0.035 17 14 0.035 17 14 0.035
18 13 0.037 18 13 0.037 18 13 0.037
19 12 0.040 19 12 0.040 19 12 0.040
20 11 0.043 20 11 0.043 20 11 0.043
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 1.71% Weighted Average 1.71% Weighted Average 1.71%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Telecommunications
2017 Assessment Year
Tel-11
Company Consol. Comm. CNSL Company FairPoint Comm. FRP Company Frontier Comm. FTR
Value Line 5 yr est. earnings growth 29.00% Value Line 5 yr est. earnings growth -1.00% Value Line 5 yr est. earnings growth 16.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.290 1 30 -0.010 1 30 0.160
2 29 0.290 2 29 -0.010 2 29 0.160
3 28 0.290 3 28 -0.010 3 28 0.160
4 27 0.290 4 27 -0.010 4 27 0.160
5 26 0.290 5 26 -0.010 5 26 0.160
6 25 0.275 6 25 -0.007 6 25 0.153
7 24 0.260 7 24 -0.003 7 24 0.146
8 23 0.244 8 23 0.001 8 23 0.139
9 22 0.229 9 22 0.004 9 22 0.132
10 21 0.214 10 21 0.008 10 21 0.124
11 20 0.199 11 20 0.011 11 20 0.117
12 19 0.183 12 19 0.015 12 19 0.110
13 18 0.168 13 18 0.018 13 18 0.103
14 17 0.153 14 17 0.022 14 17 0.096
15 16 0.138 15 16 0.025 15 16 0.089
16 15 0.122 16 15 0.029 16 15 0.082
17 14 0.107 17 14 0.032 17 14 0.075
18 13 0.092 18 13 0.036 18 13 0.067
19 12 0.077 19 12 0.039 19 12 0.060
20 11 0.061 20 11 0.043 20 11 0.053
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 19.95% Weighted Average 1.08% Weighted Average 11.77%
Value Line 5 yr est. div'd growth 0.00% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. div'd growth 0.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.000 1 30 0.024 1 30 0.0050
2 29 0.000 2 29 0.024 2 29 0.0050
3 28 0.000 3 28 0.024 3 28 0.0050
4 27 0.000 4 27 0.024 4 27 0.0050
5 26 0.000 5 26 0.024 5 26 0.0050
6 25 0.003 6 25 0.025 6 25 0.0076
7 24 0.006 7 24 0.027 7 24 0.0101
8 23 0.009 8 23 0.028 8 23 0.0127
9 22 0.012 9 22 0.030 9 22 0.0153
10 21 0.014 10 21 0.031 10 21 0.0178
11 20 0.017 11 20 0.032 11 20 0.0204
12 19 0.020 12 19 0.034 12 19 0.0229
13 18 0.023 13 18 0.035 13 18 0.0255
14 17 0.026 14 17 0.036 14 17 0.0281
15 16 0.029 15 16 0.038 15 16 0.0306
16 15 0.032 16 15 0.039 16 15 0.0332
17 14 0.035 17 14 0.041 17 14 0.0358
18 13 0.037 18 13 0.042 18 13 0.0383
19 12 0.040 19 12 0.043 19 12 0.0409
20 11 0.043 20 11 0.045 20 11 0.0434
21 10 0.046 21 10 0.046 21 10 0.0460
22 9 0.046 22 9 0.046 22 9 0.0460
23 8 0.046 23 8 0.046 23 8 0.0460
24 7 0.046 24 7 0.046 24 7 0.0460
25 6 0.046 25 6 0.046 25 6 0.0460
26 5 0.046 26 5 0.046 26 5 0.0460
27 4 0.046 27 4 0.046 27 4 0.0460
28 3 0.046 28 3 0.046 28 3 0.0460
29 2 0.046 29 2 0.046 29 2 0.0460
30 1 0.046 30 1 0.046 30 1 0.0460
Weighted Average 1.71% Weighted Average 3.22% Weighted Average 2.02%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Telecommunications
2017 Assessment Year
Tel-12
Compnay Shenandoah SHEN Company Windstream WIN Company AT&T Corp T
Value Line 5 yr est. earnings growth 11.00% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 6.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.110 1 30 0.024 1 30 0.065
2 29 0.110 2 29 0.024 2 29 0.065
3 28 0.110 3 28 0.024 3 28 0.065
4 27 0.110 4 27 0.024 4 27 0.065
5 26 0.110 5 26 0.024 5 26 0.065
6 25 0.106 6 25 0.025 6 25 0.064
7 24 0.102 7 24 0.027 7 24 0.063
8 23 0.098 8 23 0.028 8 23 0.061
9 22 0.094 9 22 0.030 9 22 0.060
10 21 0.090 10 21 0.031 10 21 0.059
11 20 0.086 11 20 0.032 11 20 0.058
12 19 0.082 12 19 0.034 12 19 0.057
13 18 0.078 13 18 0.035 13 18 0.056
14 17 0.074 14 17 0.036 14 17 0.054
15 16 0.070 15 16 0.038 15 16 0.053
16 15 0.066 16 15 0.039 16 15 0.052
17 14 0.062 17 14 0.041 17 14 0.051
18 13 0.058 18 13 0.042 18 13 0.050
19 12 0.054 19 12 0.043 19 12 0.048
20 11 0.050 20 11 0.045 20 11 0.047
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 8.63% Weighted Average 3.22% Weighted Average 5.80%
Value Line 5 yr est. div'd growth 7.00% Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. div'd growth 4.50%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.070 1 30 0.024 1 30 0.045
2 29 0.070 2 29 0.024 2 29 0.045
3 28 0.070 3 28 0.024 3 28 0.045
4 27 0.070 4 27 0.024 4 27 0.045
5 26 0.070 5 26 0.024 5 26 0.045
6 25 0.069 6 25 0.025 6 25 0.045
7 24 0.067 7 24 0.027 7 24 0.045
8 23 0.066 8 23 0.028 8 23 0.045
9 22 0.064 9 22 0.030 9 22 0.045
10 21 0.063 10 21 0.031 10 21 0.045
11 20 0.061 11 20 0.032 11 20 0.045
12 19 0.060 12 19 0.034 12 19 0.045
13 18 0.058 13 18 0.035 13 18 0.046
14 17 0.057 14 17 0.036 14 17 0.046
15 16 0.055 15 16 0.038 15 16 0.046
16 15 0.054 16 15 0.039 16 15 0.046
17 14 0.052 17 14 0.041 17 14 0.046
18 13 0.051 18 13 0.042 18 13 0.046
19 12 0.049 19 12 0.043 19 12 0.046
20 11 0.048 20 11 0.045 20 11 0.046
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 6.11% Weighted Average 3.22% Weighted Average 4.54%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Telecommunications
2017 Assessment Year
Tel-13
Compnay Sprint Nextel S Company Telephone & Data TDS Company T-Mobile US TMUS
Selected Inflation Rate - CAPM 2.40% Value Line 5 yr est. earnings growth 7.00% Selected Inflation Rate - CAPM 2.40%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.024 1 30 0.070 1 30 0.024
2 29 0.024 2 29 0.070 2 29 0.024
3 28 0.024 3 28 0.070 3 28 0.024
4 27 0.024 4 27 0.070 4 27 0.024
5 26 0.024 5 26 0.070 5 26 0.024
6 25 0.025 6 25 0.069 6 25 0.025
7 24 0.027 7 24 0.067 7 24 0.027
8 23 0.028 8 23 0.066 8 23 0.028
9 22 0.030 9 22 0.064 9 22 0.030
10 21 0.031 10 21 0.063 10 21 0.031
11 20 0.032 11 20 0.061 11 20 0.032
12 19 0.034 12 19 0.060 12 19 0.034
13 18 0.035 13 18 0.058 13 18 0.035
14 17 0.036 14 17 0.057 14 17 0.036
15 16 0.038 15 16 0.055 15 16 0.038
16 15 0.039 16 15 0.054 16 15 0.039
17 14 0.041 17 14 0.052 17 14 0.041
18 13 0.042 18 13 0.051 18 13 0.042
19 12 0.043 19 12 0.049 19 12 0.043
20 11 0.045 20 11 0.048 20 11 0.045
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 3.22% Weighted Average 6.11% Weighted Average 3.22%
Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 3.50% Value Line 5 yr est. div'd growth 0.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.000 1 30 0.035 1 30 0.000
2 29 0.000 2 29 0.035 2 29 0.000
3 28 0.000 3 28 0.035 3 28 0.000
4 27 0.000 4 27 0.035 4 27 0.000
5 26 0.000 5 26 0.035 5 26 0.000
6 25 0.003 6 25 0.036 6 25 0.003
7 24 0.006 7 24 0.036 7 24 0.006
8 23 0.009 8 23 0.037 8 23 0.009
9 22 0.012 9 22 0.038 9 22 0.012
10 21 0.014 10 21 0.038 10 21 0.014
11 20 0.017 11 20 0.039 11 20 0.017
12 19 0.020 12 19 0.040 12 19 0.020
13 18 0.023 13 18 0.041 13 18 0.023
14 17 0.026 14 17 0.041 14 17 0.026
15 16 0.029 15 16 0.042 15 16 0.029
16 15 0.032 16 15 0.043 16 15 0.032
17 14 0.035 17 14 0.043 17 14 0.035
18 13 0.037 18 13 0.044 18 13 0.037
19 12 0.040 19 12 0.045 19 12 0.040
20 11 0.043 20 11 0.045 20 11 0.043
21 10 0.046 21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046 30 1 0.046
Weighted Average 1.71% Weighted Average 3.91% Weighted Average 1.71%
MONTANA DEPARTMENT OF REVENUE
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Telecommunications
2017 Assessment Year
Tel-14
Company U.S. Cellular USM Company Verizon Comm. VZ
Value Line 5 yr est. earnings growth 2.00% Value Line 5 yr est. earnings growth 3.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.020 1 30 0.030
2 29 0.020 2 29 0.030
3 28 0.020 3 28 0.030
4 27 0.020 4 27 0.030
5 26 0.020 5 26 0.030
6 25 0.022 6 25 0.031
7 24 0.023 7 24 0.032
8 23 0.025 8 23 0.033
9 22 0.027 9 22 0.034
10 21 0.028 10 21 0.035
11 20 0.030 11 20 0.036
12 19 0.031 12 19 0.037
13 18 0.033 13 18 0.038
14 17 0.035 14 17 0.039
15 16 0.036 15 16 0.040
16 15 0.038 16 15 0.041
17 14 0.040 17 14 0.042
18 13 0.041 18 13 0.043
19 12 0.043 19 12 0.044
20 11 0.044 20 11 0.045
21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046
Weighted Average 2.96% Weighted Average 3.59%
Value Line 5 yr est. div'd growth 0.00% Value Line 5 yr est. div'd growth 2.00%
LT nominal economic growth rate 4.60% LT nominal economic growth rate 4.60%
Year Weight Adj. Growth Rate Year Weight Adj. Growth Rate
1 30 0.000 1 30 0.020
2 29 0.000 2 29 0.020
3 28 0.000 3 28 0.020
4 27 0.000 4 27 0.020
5 26 0.000 5 26 0.020
6 25 0.003 6 25 0.022
7 24 0.006 7 24 0.023
8 23 0.009 8 23 0.025
9 22 0.012 9 22 0.027
10 21 0.014 10 21 0.028
11 20 0.017 11 20 0.030
12 19 0.020 12 19 0.031
13 18 0.023 13 18 0.033
14 17 0.026 14 17 0.035
15 16 0.029 15 16 0.036
16 15 0.032 16 15 0.038
17 14 0.035 17 14 0.040
18 13 0.037 18 13 0.041
19 12 0.040 19 12 0.043
20 11 0.043 20 11 0.044
21 10 0.046 21 10 0.046
22 9 0.046 22 9 0.046
23 8 0.046 23 8 0.046
24 7 0.046 24 7 0.046
25 6 0.046 25 6 0.046
26 5 0.046 26 5 0.046
27 4 0.046 27 4 0.046
28 3 0.046 28 3 0.046
29 2 0.046 29 2 0.046
30 1 0.046 30 1 0.046
Weighted Average 1.71% Weighted Average 2.96%
Support for Yield Capitalization Cost of Equity Component - Multi-Stage Growth Model
Industry: Telecommunications
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Tel-15
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
AT&T Inc. 6.8 00206RAB8 Nts 05/15/36 20 A- 5.70 5.58 5.24 4.89 4.97 4.67 4.40 4.31 5.00 5.00 5.35 5.21 5.03% 5.19%
AT&T Inc. 6.5 00206RAD4 GlobalNts 09/01/37 21 A- 5.70 5.58 5.24 4.89 5.01 4.81 4.54 4.35 4.96 4.96 5.41 5.27 5.06% 5.21%
AT&T Inc. 6.3 00206RAG7 GlobalNts 01/15/38 22 A- 5.63 5.71 5.32 4.92 5.02 4.83 4.52 4.41 5.05 5.05 5.35 5.25 5.09% 5.22%
AT&T Inc. 5.5 00206RAJ1 Gbl Nts 02/01/18 2 A- 1.88 1.94 1.69 1.43 1.72 1.37 1.33 1.43 1.60 1.60 1.88 1.84 1.64% 1.77%
AT&T Inc. 5.6 00206RAM4 Gbl Nt 05/15/18 2 A- 1.92 2.00 1.79 1.57 1.68 1.48 1.32 1.43 1.70 1.70 1.95 1.90 1.70% 1.85%
AT&T Inc. 6.4 00206RAN2 GlobalNts 05/15/38 22 A- 5.84 5.65 5.39 5.13 5.06 4.76 4.62 4.41 4.98 4.98 5.37 5.27 5.12% 5.21%
America Movil, S.A.B. de C.V. 6.38 02364WAJ4 Sr Nt 03/01/35 19 A- 5.39 5.35 5.04 4.73 4.87 4.72 4.32 4.26 4.62 4.62 5.29 5.03 4.85% 4.98%
Comcast Cable Commun 8.88 20029PAG4 Sr Nt - Exchanged From O 05/01/17 1 A- 1.25 1.35 1.24 1.12 1.07 0.99 1.11 1.01 1.16 1.16 1.26 1.28 1.17% 1.23%
Comcast Cable Commun 8.5 20029PAH2 Sr Nt - Exchanged From O 05/01/27 11 A- 4.25 3.99 3.95 3.91 4.10 3.58 3.51 3.58 3.76 3.76 3.75 3.88 3.84% 3.80%
Comcast Corp. 7.05 20030NAC5 Sr Nt 03/15/33 17 A- 4.73 4.46 4.22 3.97 3.95 3.76 3.54 3.64 3.81 3.81 4.27 4.15 4.03% 4.08%
Comcast Corp. 5.65 20030NAF8 Gtd Fixed Rt Sr Nt 06/15/35 19 A- 4.45 4.36 4.07 3.78 3.80 3.61 3.51 3.52 3.76 3.76 4.27 4.15 3.92% 4.06%
Comcast Corp. 4.95 20030NAG6 Gtd Fixed Rt Sr Nt 06/15/16 1 A- 0.81 0.80 0.82 0.84 0.82%
Comcast Corp. 6.45 20030NAM3 Gtd Nt 03/15/37 21 A- 4.59 4.68 4.35 4.01 4.15 3.86 3.71 3.73 3.99 3.99 4.39 4.31 4.15% 4.23%
Comcast Corp. 6.5 20030NAP6 Nts 01/15/17 2 A- 1.14 1.09 1.06 1.03 1.02 0.94 0.76 0.95 0.89 0.89 0.72 0.95% 0.81%
Comcast Corp. 5.88 20030NAR2 Nt 02/15/18 2 A- 1.42 1.41 1.23 1.05 1.23 1.03 1.02 1.16 1.27 1.27 1.60 1.57 1.27% 1.48%
Comcast Corp. 6.3 20030NAU5 Sr Nts 11/15/17 1 A- 1.47 1.37 1.22 1.06 1.17 0.86 0.97 1.10 1.22 1.22 1.40 1.50 1.21% 1.37%
Comcast Corp. 6.95 20030NAV3 Sr Nts 08/15/37 21 A- 4.68 4.62 4.31 3.99 4.12 3.76 3.73 3.70 3.96 3.96 4.41 4.32 4.13% 4.23%
Time Warner Cos Inc 9.15 887315AM1 Deb Dtd 02/04/1993 02/01/23 8 BBB 3.89 4.25 3.96 3.67 3.73 3.26 3.22 3.03 3.39 3.39 3.91 3.97 3.64% 3.76%
Time Warner Cos Inc 6.88 887315AY5 Deb 06/15/18 3 BBB 2.03 2.00 1.89 1.77 1.77 1.40 1.46 1.48 1.57 1.57 2.03 2.03 1.75% 1.88%
Time Warner Cos Inc 6.85 887315BB4 Deb 01/15/26 11 BBB 5.13 4.87 4.80 4.73 4.79 4.42 4.29 4.34 4.86 4.86 5.54 5.56 4.85% 5.32%
Time Warner Cos Inc 7.57 887315BH1 Deb 02/01/24 9 BBB 4.60 4.32 4.05 3.77 3.83 3.45 3.56 3.08 3.34 3.34 3.83 3.87 3.75% 3.68%
Time Warner Cos Inc 7.25 887315BJ7 Deb 10/15/17 2 BBB 2.06 1.97 1.81 1.64 1.72 1.31 1.36 1.35 1.30 1.30 1.45 1.54 1.57% 1.43%
Time Warner Cos Inc 6.95 887315BM0 Gtd Deb 01/15/28 13 BBB 4.95 4.86 4.49 4.11 4.22 3.75 3.86 3.58 3.71 3.71 4.18 4.20 4.13% 4.03%
Time Warner Cos Inc 6.62 887315BN8 Deb 05/15/29 14 BBB 4.74 5.09 4.65 4.20 4.14 3.60 3.53 3.59 3.79 3.79 4.30 4.35 4.15% 4.15%
Time Warner Inc. 6.5 887317AD7 Deb 11/15/36 21 BBB 5.69 6.08 5.49 4.90 4.88 4.45 4.26 4.28 4.61 4.61 5.07 4.87 4.93% 4.85%
Time Warner Entertainment 8.38 88731EAF7 Sr Deb 03/15/23 8 BBB 4.73 4.72 4.08 3.44 3.79 3.37 3.32 3.27 3.25 3.25 3.91 3.91 3.75% 3.69%
Qwest Corp 6.5 74913GAT2 Nts 06/01/17 2 BBB- 2.85 2.65 2.41 2.16 2.45 2.38 2.41 1.95 1.92 1.92 2.49 2.11 2.31% 2.17%
TCA Cable TV 6.53 872241AB0 Deb 02/01/28 13 BBB- 5.86 5.70 5.67 5.63 5.65 5.24 5.18 5.25 5.26 5.26 5.47 5.40 5.46% 5.38%
U S WESTCommunications 7.125 912920AG0 Deb 11/15/43 27 BBB- 7.64 7.78 7.58 7.38 7.32 7.36 7.08 7.12 7.12 7.12 7.52 7.57 7.38% 7.40%
U S WESTCommunications 7.25 912920AM7 Deb 10/15/35 19 BBB- 7.49 7.53 7.53 7.53 7.53 7.15 7.16 7.27 7.32 7.32 7.74 7.78 7.45% 7.61%
CenturyLink, Inc. 6 156700AL0 Fixed Rt Sr Nts Ser N 04/01/17 1 BB 3.36 3.42 3.16 2.90 2.38 2.46 2.05 2.11 1.73 1.73 0.81 2.47 2.38% 1.67%
Embarq Corp. 8 29078EAA3 Nts 06/01/36 20 BB 7.84 8.51 8.25 7.99 7.98 7.99 7.57 7.62 7.84 7.84 8.41 8.66 8.04% 8.30%
Century Tel Enterpr 7.2 156686AJ6 Sr Nts 'D' 12/01/25 10 BB 8.28 8.25 8.18 8.11 8.31 7.96 7.91 7.23 7.82 7.82 8.29 7.83 8.00% 7.98%
Century Tel Enterpr 6.875 156686AM9 Deb 'G' 01/15/28 13 BB 11.17 9.83 9.44 9.04 9.21 9.39 8.07 7.26 7.68 7.68 8.21 8.12 8.76% 8.00%
Embarq Corp. 7.08 29078EAB1 Nts 06/01/16 1 BB 1.86 4.13 2.87 1.60 2.61%
Cin Bell Tel 7.25 171870AK4 Sec Nts 06/15/23 8 BB- 11.14 11.17 11.21 11.24 11.27 11.31 11.35 11.39 11.47 11.47 11.51 11.56 11.34% 11.51%
Cincinnati Bell Tel 6.3 171875AD9 Deb 12/01/28 12 BB- 7.57 7.73 7.41 7.08 6.96 6.96 6.97 6.90 6.82 6.82 6.66 6.60 7.04% 6.69%
Citizens Communications Co. 9 17453BAJ0 Sr Nts 08/31/31 16 BB- 12.23 12.64 11.71 10.78 10.90 11.13 9.90 9.37 10.77 10.77 11.61 11.09 11.08% 11.16%
38 38 38 38 38 36 36 36 36 36 36 36 35
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 4.43% 4.59%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 3.64% 3.80%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.44% 5.54%
Investment Grade (BBB- & Above) 5.11% 5.19%
Say: 4.00%
MONTANA DEPARTMENT OF REVENUE
Support for Cost of Debt Component - Yield to Maturity From Standard & Poor's Bond Guide
Industry: Telecommunications
2017 Assessment Year
All Bonds
Tel-16
A B C D E F G H I J K L M N O
Company
Ticker
Symbol
Avg. 4Q
Stock
Price
VL Historic
EPS
VL Est
EPS
VL Historic
P/E Ratio
VL Est P/E
Ratio
Ke
Estimate -
Earnings
(Hist. P/E)
Ke
Estimate -
Earnings
(Est. P/E)
VL Historic
Cash Flow
Per Share
VL Est
Cash Flow
Per Share
VL Historic
P/CF Ratio
VL Est
P/CF Ratio
Ke
Estimate -
Cash Flow
(Hist. P/CF)
Ke
Estimate -
Cash Flow
(Est. P/CF)
Yahoo Value Line Value Line C/D C/E 1/F 1/G Value Line Value Line C/J C/K 1/L 1/MCincinnati Bell CBB 49.45 2.18 0.05 22.69 989.07 4.41% 6.26 4.40 7.90 11.24 12.66% 8.90%
Charter Communications CHTR 266.17 15.67 6.30 16.99 42.25 5.89% 2.37% 38.78 31.30 6.86 8.50 14.57% 11.76%
Consol. Communic. CNSL 26.01 0.29 0.40 89.70 65.03 1.11% 1.54% 3.73 3.95 6.97 6.59 14.34% 15.18%
CenturyLink Inc CTL 26.17 1.16 2.15 22.56 12.17 4.43% 8.22% 8.31 9.10 3.15 2.88 31.76% 34.78%
FairPoint Communications Inc. FRP 16.63 3.84 0.00 4.33 23.08% 12.06 0.00 1.38 72.50%
Frontier Communications FTR 3.74 (0.14) (0.05) 1.60 1.95 2.33 1.92 42.84% 52.21%
Sprint Nextel Corp S 7.35 (0.42) (0.40) 1.28 1.65 5.74 4.45 17.42% 22.46%
Shenandoah Telecoms SHEN 26.71 0.94 0.85 28.42 31.43 3.52% 3.18% 2.30 3.80 11.61 7.03 8.61% 14.23%
AT&T Corp T 39.01 2.84 2.95 13.74 13.22 7.28% 7.56% 7.07 7.15 5.52 5.46 18.12% 18.33%
Telephone & Data Sys TDS 27.00 0.38 0.30 71.06 90.01 1.41% 1.11% 9.76 8.00 2.77 3.38 36.15% 29.63%
T-Mobile US TMUS 52.40 1.07 1.85 48.97 28.32 2.04% 3.53% 8.63 10.10 6.07 5.19 16.47% 19.28%
U.S. Cellular USM 37.54 0.55 0.30 68.25 125.13 1.47% 0.80% 10.05 7.75 3.74 4.84 26.77% 20.64%
Verizon Communications VZ 50.02 3.87 3.90 12.93 12.83 7.74% 7.80% 7.94 5.80 6.30 8.62 15.87% 11.59%
Windstream Holdings WIN 7.89 (4.11) (3.25) 9.14 10.20 0.86 0.77 115.84% 129.28%
Average 36.33 140.95 5.67% 4.01% 5.09 5.45 31.71% 29.87%
Median 22.69 36.84 4.41% 3.18% 5.63 5.19 17.77% 19.28%
High 89.70 989.07 23.08% 8.22% 11.61 11.24 115.84% 129.28%
Low 4.33 12.17 1.11% 0.80% 0.86 0.77 8.61% 8.90%
Say 4.50% 18.70%
MONTANA DEPARTMENT OF REVENUE
Support for Direct Capitalization Cost of Equity (ke)
Industry: Telecommunications
2017 Assessment Year
Tel-17
Company Name Coupon CUSIP Issue Maturity Date
Years to
Maturity
Old S&P
Bond
Rating Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Avg Full
Year
Avg 4th
QTR
AT&T Inc. 6.8 00206RAB8 Nts 05/15/36 20 A- 6.01 5.93 5.70 5.47 5.53 5.33 5.17 5.12 5.56 5.56 5.79 5.70 5.57% 5.68%
AT&T Inc. 6.5 00206RAD4 GlobalNts 09/01/37 21 A- 5.91 5.83 5.60 5.36 5.45 5.31 5.14 5.02 5.42 5.42 5.72 5.63 5.48% 5.59%
AT&T Inc. 6.3 00206RAG7 GlobalNts 01/15/38 22 A- 5.81 5.87 5.60 5.33 5.40 5.27 5.07 5.00 5.43 5.43 5.63 5.56 5.45% 5.54%
AT&T Inc. 5.5 00206RAJ1 Gbl Nts 02/01/18 2 A- 5.13 5.15 5.14 5.13 5.17 5.16 5.17 5.20 5.24 5.24 5.28 5.29 5.19% 5.27%
AT&T Inc. 5.6 00206RAM4 Gbl Nt 05/15/18 2 A- 5.17 5.19 5.19 5.18 5.20 5.20 5.20 5.23 5.28 5.28 5.32 5.33 5.23% 5.31%
AT&T Inc. 6.4 00206RAN2 GlobalNts 05/15/38 22 A- 5.99 5.85 5.67 5.49 5.44 5.24 5.15 5.02 5.40 5.40 5.66 5.59 5.49% 5.55%
America Movil, S.A.B. de C.V. 6.38 02364WAJ4 Sr Nt 03/01/35 19 A- 5.71 5.68 5.49 5.29 5.39 5.29 5.06 5.02 5.24 5.24 5.66 5.50 5.38% 5.47%
Comcast Cable Commun 8.88 20029PAG4 Sr Nt - Exchanged From O 05/01/17 1 A- 8.10 8.15 8.19 8.23 8.28 8.32 8.38 8.43 8.54 8.54 8.60 8.65 8.37% 8.60%
Comcast Cable Commun 8.5 20029PAH2 Sr Nt - Exchanged From O 05/01/27 11 A- 6.17 6.05 6.04 6.03 6.14 5.90 5.88 5.93 6.03 6.03 6.04 6.11 6.03% 6.06%
Comcast Corp. 7.05 20030NAC5 Sr Nt 03/15/33 17 A- 5.55 5.39 5.26 5.12 5.12 5.02 4.90 4.96 5.06 5.06 5.32 5.26 5.17% 5.21%
Comcast Corp. 5.65 20030NAF8 Gtd Fixed Rt Sr Nt 06/15/35 19 A- 4.89 4.84 4.68 4.51 4.52 4.42 4.37 4.38 4.52 4.52 4.81 4.74 4.60% 4.69%
Comcast Corp. 4.95 20030NAG6 Gtd Fixed Rt Sr Nt 06/15/16 1 A- 4.87 4.88 4.90 4.92 4.89%
Comcast Corp. 6.45 20030NAM3 Gtd Nt 03/15/37 21 A- 5.16 5.22 5.01 4.80 4.89 4.72 4.63 4.64 4.81 4.81 5.06 5.01 4.90% 4.96%
Comcast Corp. 6.5 20030NAP6 Nts 01/15/17 2 A- 6.18 6.20 6.23 6.25 6.28 6.31 6.33 6.36 6.42 6.42 6.45 6.31% 6.44%
Comcast Corp. 5.88 20030NAR2 Nt 02/15/18 2 A- 5.39 5.40 5.41 5.41 5.44 5.45 5.46 5.50 5.55 5.55 5.59 5.60 5.48% 5.58%
Comcast Corp. 6.3 20030NAU5 Sr Nts 11/15/17 1 A- 5.80 5.81 5.82 5.83 5.86 5.86 5.89 5.93 5.98 5.98 6.01 6.04 5.90% 6.01%
Comcast Corp. 6.95 20030NAV3 Sr Nts 08/15/37 21 A- 5.32 5.28 5.09 4.89 4.97 4.75 4.74 4.73 4.89 4.89 5.18 5.12 4.99% 5.06%
Time Warner Cos Inc 9.15 887315AM1 Deb Dtd 02/04/1993 02/01/23 8 BBB 6.93 7.08 6.99 6.90 6.94 6.79 6.80 6.75 6.92 6.92 7.12 7.16 6.94% 7.07%
Time Warner Cos Inc 6.88 887315AY5 Deb 06/15/18 3 BBB 6.18 6.19 6.20 6.21 6.23 6.21 6.25 6.27 6.33 6.33 6.40 6.43 6.27% 6.39%
Time Warner Cos Inc 6.85 887315BB4 Deb 01/15/26 11 BBB 6.04 5.93 5.91 5.88 5.92 5.76 5.72 5.75 5.97 5.97 6.27 6.28 5.95% 6.17%
Time Warner Cos Inc 7.57 887315BH1 Deb 02/01/24 9 BBB 6.32 6.22 6.13 6.04 6.07 5.94 5.99 5.84 5.95 5.95 6.14 6.17 6.06% 6.09%
Time Warner Cos Inc 7.25 887315BJ7 Deb 10/15/17 2 BBB 6.67 6.68 6.69 6.70 6.74 6.73 6.77 6.80 6.86 6.86 6.90 6.94 6.78% 6.90%
Time Warner Cos Inc 6.95 887315BM0 Gtd Deb 01/15/28 13 BBB 5.89 5.85 5.68 5.51 5.56 5.35 5.41 5.29 5.37 5.37 5.58 5.60 5.54% 5.52%
Time Warner Cos Inc 6.62 887315BN8 Deb 05/15/29 14 BBB 5.59 5.78 5.56 5.33 5.31 5.06 5.03 5.06 5.17 5.17 5.42 5.45 5.33% 5.35%
Time Warner Inc. 5.88 887317AC9 Nt 11/15/16 1 BBB 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57 5.57%
Time Warner Inc. 6.5 887317AD7 Deb 11/15/36 21 BBB 5.92 6.19 5.79 5.39 5.38 5.11 4.99 5.00 5.22 5.22 5.51 5.39 5.43% 5.37%
Time Warner Entertainment 8.38 88731EAF7 Sr Deb 03/15/23 8 BBB 6.87 6.88 6.66 6.44 6.58 6.45 6.45 6.45 6.48 6.48 6.71 6.73 6.60% 6.64%
Qwest Corp 6.5 74913GAT2 Nts 06/01/17 2 BBB- 6.20 6.20 6.21 6.21 6.24 6.26 6.28 6.28 6.33 6.33 6.37 6.38 6.27% 6.36%
TCA Cable TV 6.53 872241AB0 Deb 02/01/28 13 BBB- 6.17 6.09 6.08 6.06 6.08 5.88 5.85 5.89 5.90 5.90 6.00 5.97 5.99% 5.96%
U S WESTCommunications 7.125 912920AG0 Deb 11/15/43 27 BBB- 7.57 7.69 7.52 7.34 7.29 7.33 7.09 7.12 7.12 7.12 7.47 7.50 7.35% 7.36%
U S WESTCommunications 7.25 912920AM7 Deb 10/15/35 19 BBB- 7.43 7.46 7.46 7.46 7.46 7.17 7.18 7.26 7.30 7.30 7.61 7.65 7.40% 7.52%
CenturyLink, Inc. 6 156700AL0 Fixed Rt Sr Nts Ser N 04/01/17 1 BB 5.82 5.83 5.83 5.83 5.82 5.84 5.84 5.86 5.89 5.89 5.89 5.94 5.86% 5.91%
Embarq Corp. 8 29078EAA3 Nts 06/01/36 20 BB 7.87 8.41 8.20 7.99 7.99 7.99 7.66 7.70 7.87 7.87 8.32 8.52 8.03% 8.24%
Century Tel Enterpr 7.2 156686AJ6 Sr Nts 'D' 12/01/25 10 BB 7.76 7.74 7.70 7.65 7.76 7.57 7.55 7.21 7.50 7.50 7.73 7.50 7.60% 7.58%
Century Tel Enterpr 6.875 156686AM9 Deb 'G' 01/15/28 13 BB 9.54 8.64 8.39 8.13 8.23 8.33 7.54 7.08 7.31 7.31 7.61 7.55 7.97% 7.49%
Embarq Corp. 7.08 29078EAB1 Nts 06/01/16 1 BB 6.96 7.02 7.03 7.04
Cin Bell Tel 7.25 171870AK4 Sec Nts 06/15/23 8 BB- 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97 8.97% 8.97%
Cincinnati Bell Tel 6.3 171875AD9 Deb 12/01/28 12 BB- 7.02 7.11 6.92 6.73 6.66 6.66 6.66 6.63 6.57 6.57 6.49 6.46 6.71% 6.51%
Citizens Communications Co. 9 17453BAJ0 Sr Nts 08/31/31 16 BB- 11.57 11.92 11.15 10.37 10.46 10.65 9.67 9.27 10.34 10.34 11.00 10.58 10.61% 10.64%
39 39 39 39 39 37 37 37 37 36 36 36 35
NOTES: Annual 4th Qtr
All Bonds
Data downloaded from the S&P website and missing data supplemented from month end Bond Guides when available. All Ratings 6.25% 6.36%
means the data was not available in S&P Guide Investment Grade (BBB- & Above) 5.87% 5.99%
means issuance matured or called
Bonds With 20 or More Years to Maturity
All Ratings 5.85% 5.93%
Investment Grade (BBB- & Above) 5.58% 5.64%
Say: 5.90%
All Bonds
MONTANA DEPARTMENT OF REVENUE
Support for Cost of Debt Component - Current Yield From Standard & Poor's Bond Guide
Industry: Telecommunications
2017 Assessment Year
Tel-18
A B C D E F G H I J K2016 YE 2016 YE 2015 YE 2015 YE 2016 YE 2016 2016 Avg 2016 2016 Avg
Company Ticker Interest Exp. MV LT Debt BV LT Debt MV LT Debt BV LT Debt MV LT Debt Current Yield BV LT Debt MTBRSource 10-K 10-K 10-K 10-K 10-K (D+F)/2 (C/H) (E+G)/2 (H/J)
($000) ($000) ($000) ($000) ($000) ($000) ($000)Cincinnati Bell CBB 75,700 1,155,600 1,178,000 1,177,900 1,149,200 1,166,750 6.49% 1,163,600 1.00
Charter Communications CHTR 2,499,000 36,018,000 35,723,000 64,146,000 61,747,000 50,082,000 4.99% 48,735,000 1.03
Consol. Communic. CNSL 76,826 1,312,383 1,393,567 1,390,773 1,388,786 1,351,578 5.68% 1,391,177 0.97
CenturyLink Inc CTL 1,318,000 19,473,000 19,800,000 19,639,000 19,553,000 19,556,000 6.74% 19,676,500 0.99
FairPoint Communications Inc. FRP 82,697 912,454 911,262 932,995 908,166 922,725 8.96% 909,714 1.01
Frontier Communications FTR 1,531,000 14,767,000 15,508,000 17,539,000 17,560,000 16,153,000 9.48% 16,534,000 0.98
Sprint Nextel Corp S 2,182,000 33,554,000 33,245,000 28,361,000 33,645,000 30,957,500 7.05% 33,445,000 0.93
Shenandoah Telecoms SHEN 25,102 199,661 199,661 829,265 829,265 514,463 4.88% 514,463 1.00
AT&T Corp T 4,910,000 131,701,000 127,555,000 131,317,000 124,972,000 131,509,000 3.73% 126,263,500 1.04
Telephone & Data Sys TDS 170000 2482000 2,502,000 2,480,000 2,494,000 2,481,000 6.85% 2,498,000 0.99
T-Mobile US TMUS 1418000 26323000 25,363,000 27,679,000 26,315,000 27,001,000 5.25% 25,839,000 1.04
U.S. Cellular USM 113000 2359000 2,379,000 2,250,000 2,239,000 2,304,500 4.90% 2,309,000 1.00
Verizon Communications VZ 4,376,000 118,216,000 108,772,000 117,584,000 107,128,000 117,900,000 3.71% 107,950,000 1.09
Windstream Holdings WIN 860,600 4,452,700 5,233,300 4,884,400 4,914,600 4,668,550 18.43% 5,073,950 0.92
Total 19,637,925 406,568,066 4.83% 392,302,904 1.04
Average 6.94% 1.00 Median 6.09% 1.00 High 18.43% 1.09
Low 3.71% 0.92
Say 6.10% 1.00
2017 Assessment Year
MONTANA DEPARTMENT OF REVENUE
Support for Cost of Debt Component - Calculated Current Yield
Industry: Telecommunications
Tel-19
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
ALSK Alaska Communic Sys Grp high 1.90$ 1.66$ 1.87$ 1.97$ 1.88$ 1.84$ 1.74$ 1.75$ 1.85$ 1.80$ 1.72$ 1.66$ 1.64$ 1.63$ 1.69$
low 1.54$ 1.30$ 1.56$ 1.75$ 1.66$ 1.64$ 1.64$ 1.64$ 1.65$ 1.58$ 1.49$ 1.50$
CBB Cincinnati Bell high 44.97$ 48.22$ 50.16$ 51.06$ 49.74$ 53.59$ 54.08$ 52.59$ 51.91$ 50.25$ 51.46$ 52.88$ 52.46$ 49.45$ 48.90$
1:5 Stock Split 10/05/16 low 41.50$ 44.69$ 45.56$ 46.29$ 46.30$ 48.69$ 50.65$ 49.15$ 47.79$ 46.84$ 46.97$ 48.32$
CHTR Charter Communications high 182.04$ 184.72$ 204.61$ 213.32$ 233.70$ 229.80$ 244.51$ 261.75$ 279.95$ 270.99$ 281.43$ 294.87$ 287.92$ 266.17$ 227.44$
low 160.74$ 156.13$ 179.91$ 193.77$ 201.04$ 214.06$ 226.81$ 233.00$ 261.68$ 242.47$ 241.50$ 265.78$
CMCSA Comcast Corp. high 56.05$ 59.70$ 61.37$ 62.91$ 63.39$ 65.42$ 68.36$ 67.96$ 67.53$ 66.38$ 70.28$ 71.32$ 69.05$ 66.11$ 62.85$
low 52.34$ 54.38$ 58.05$ 60.02$ 59.62$ 60.66$ 64.27$ 64.97$ 64.74$ 60.60$ 60.04$ 68.07$
CNSL Consol. Communic. high 20.89$ 23.59$ 25.91$ 26.09$ 26.22$ 27.24$ 28.78$ 28.13$ 26.26$ 25.38$ 30.23$ 29.09$ 26.46$ 26.01$ 24.67$
low 17.76$ 18.53$ 22.36$ 23.32$ 23.45$ 23.85$ 26.80$ 23.68$ 23.21$ 23.12$ 21.85$ 26.41$
CTL CenturyLink Inc high 25.43$ 30.82$ 32.49$ 32.94$ 31.50$ 29.03$ 31.56$ 31.44$ 28.94$ 33.45$ 26.50$ 24.49$ 23.78$ 26.17$ 28.11$
low 21.94$ 24.50$ 30.33$ 30.95$ 26.35$ 26.56$ 28.64$ 27.72$ 26.51$ 26.45$ 22.86$ 23.24$
CVC Cablevision Sys. 'A' high 46.89$ 38.44$ 34.80$ 34.28$ 31.88$ 31.88$ 34.27$ 41.97$ 41.20$ 36.30$ 34.05$ 37.89$ 36.90$ 33.26$ 33.30$
low 29.85$ 33.77$ 26.26$ 25.98$ 26.02$ 27.20$ 28.61$ 32.80$ 33.50$ 30.03$ 29.70$ 31.56$
FRP FairPoint Communications Inc. high 16.29$ 15.25$ 16.06$ 15.35$ 14.80$ 15.53$ 16.40$ 16.15$ 15.14$ 16.50$ 17.60$ 19.60$ 18.70$ 16.63$ 15.04$
low 13.98$ 12.69$ 13.99$ 13.15$ 12.99$ 12.81$ 14.54$ 13.04$ 13.10$ 14.66$ 14.90$ 16.55$
FTR Frontier Communications high 4.79$ 5.52$ 5.85$ 5.75$ 5.58$ 5.30$ 5.21$ 5.22$ 4.80$ 4.36$ 4.07$ 3.73$ 3.38$ 3.74$ 4.64$
low 3.81$ 4.06$ 4.97$ 5.18$ 4.89$ 4.57$ 4.78$ 4.58$ 4.07$ 3.88$ 3.10$ 3.27$
GNCMA Gen'l Communic. 'A' high 20.23$ 19.23$ 19.55$ 18.75$ 18.25$ 15.87$ 17.25$ 15.32$ 14.05$ 15.95$ 17.55$ 19.55$ 19.45$ 16.26$ 16.35$
low 17.60$ 16.85$ 16.41$ 16.83$ 14.84$ 14.12$ 14.95$ 12.26$ 12.53$ 13.44$ 14.40$ 16.65$
HCOM Hawaiian Telcom Holdco Inc high 25.55$ 24.26$ 25.48$ 24.89$ 24.14$ 21.78$ 23.28$ 24.15$ 23.19$ 23.00$ 23.48$ 25.79$ 24.78$ 22.56$ 22.53$
low 21.55$ 20.30$ 21.34$ 22.27$ 20.16$ 19.00$ 20.92$ 22.01$ 21.14$ 20.50$ 20.10$ 22.49$
S Sprint Nextel Corp high 3.67$ 3.46$ 4.19$ 3.90$ 3.85$ 4.56$ 6.35$ 6.35$ 7.03$ 7.16$ 8.11$ 8.98$ 8.42$ 7.35$ 5.08$
low 2.18$ 2.45$ 3.12$ 3.30$ 3.37$ 3.61$ 4.36$ 5.85$ 6.16$ 6.16$ 5.83$ 7.84$
T AT&T Corp high 36.06$ 37.50$ 39.72$ 39.36$ 39.67$ 43.42$ 43.89$ 43.50$ 41.70$ 41.04$ 39.67$ 42.84$ 42.04$ 39.01$ 39.21$
low 33.41$ 35.79$ 37.06$ 37.73$ 37.77$ 38.58$ 41.70$ 40.55$ 39.55$ 36.27$ 36.10$ 38.16$
TDS Telephone & Data Sys high 25.50$ 26.79$ 30.29$ 30.70$ 30.15$ 29.68$ 31.92$ 32.00$ 28.41$ 27.97$ 27.50$ 30.17$ 28.87$ 27.00$ 27.51$
2017 Assessment Year
Industry: Telecommunications
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
Tel-20
Ticker Company Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
End of
Year
Closing
4th Qtr
Average
Annual
Average
2017 Assessment Year
Industry: Telecommunications
Support of Stock Price - From YAHOO Finance
MONTANA DEPARTMENT OF REVENUE
low 20.83$ 21.05$ 26.47$ 28.61$ 25.54$ 27.32$ 28.92$ 27.61$ 26.46$ 25.67$ 24.12$ 26.58$
TMUS T-Mobile US high 41.23$ 40.65$ 39.79$ 42.20$ 42.97$ 44.13$ 46.96$ 48.11$ 47.67$ 51.65$ 56.09$ 59.19$ 57.51$ 52.40$ 44.28$
low 35.49$ 33.23$ 36.26$ 37.93$ 38.67$ 40.50$ 42.71$ 45.45$ 44.35$ 44.91$ 48.76$ 53.78$
TWX Time Warner high 73.58$ 73.00$ 73.64$ 77.40$ 77.28$ 76.75$ 79.24$ 81.33$ 79.90$ 94.44$ 93.42$ 97.10$ 96.53$ 90.03$ 77.13$
low 63.50$ 55.53$ 65.90$ 71.64$ 70.44$ 68.97$ 72.88$ 75.61$ 74.27$ 78.32$ 85.22$ 91.71$
USM U.S. Cellular high 40.02$ 41.49$ 45.80$ 45.87$ 43.91$ 39.47$ 41.73$ 41.68$ 38.18$ 36.89$ 37.99$ 44.82$ 43.72$ 37.54$ 38.84$
low 34.06$ 32.72$ 37.71$ 41.59$ 35.66$ 36.16$ 38.13$ 36.97$ 35.86$ 34.82$ 33.30$ 37.42$
VZ Verizon Communications high 49.99$ 51.38$ 54.37$ 54.49$ 51.70$ 55.92$ 56.95$ 55.82$ 53.88$ 52.14$ 51.20$ 53.90$ 52.82$ 50.02$ 51.45$
low 43.79$ 49.27$ 50.98$ 49.47$ 49.05$ 50.12$ 54.44$ 51.90$ 51.02$ 47.58$ 46.01$ 49.31$
ZAYO Zayo Group Holdings Inc high 27.10$ 25.67$ 25.03$ 26.46$ 28.27$ 28.19$ 29.76$ 29.64$ 30.59$ 32.93$ 35.65$ 34.76$ 32.86$ 32.80$ 28.02$
low 23.67$ 19.59$ 23.25$ 23.68$ 25.65$ 26.10$ 27.16$ 27.63$ 28.15$ 29.48$ 31.49$ 32.50$
WIN Windstream Holdings high 6.37$ 7.94$ 8.35$ 8.98$ 9.47$ 9.50$ 9.74$ 9.38$ 10.46$ 10.10$ 7.93$ 7.96$ 7.17$ 7.89$ 8.03$
low 4.75$ 5.22$ 7.00$ 7.18$ 7.36$ 8.07$ 9.00$ 8.13$ 8.52$ 7.61$ 6.63$ 7.11$
SHEN Shenandoah Telecoms high 44.94$ 24.37$ 27.53$ 29.00$ 32.38$ 39.11$ 42.66$ 41.45$ 27.83$ 27.22$ 28.90$ 30.20$ 27.30$ 26.71$ 29.42$
low 19.18$ 20.55$ 23.52$ 25.69$ 28.43$ 31.26$ 37.80$ 24.92$ 25.24$ 25.20$ 22.05$ 26.70$
2017 Capitalization Rate Study
Appendix and Supporting Documents
1 of 7
S&P 500, 3 Stage Dividend Growth Model
Developed by the Montana Department of Revenue
To Be Used in Conjunction with the 2017 Capitalization Rate Studies
Determines The Implied Risk Premium Using Macroeconomic DataThis type of calculation can also be found in Chapter 9 of Ibbotson's (MorningStar) SBBI, Supply Side Model
3 Stage Dividend Growth Model
Assumptions:Stages Growth
1st Stage Constant @:
2nd Stage Linear from: 11.96% to 4.37% OR 11.28% to 3.17%Real Growth Inflation
3rd Stage GDP Growth: Real and Inflation 1.60% 2.80% + 1.57% to 1.57%
GDP Growth*: Real + Inflation TO
Livingston Survey Release Date December 9, 2016
Model 1
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Expected
Starting Industry Start Price Dividends 12.720% 12.720% 12.720% 12.720% 12.720% 11.96% 11.201% 10.442% 9.682% 8.923% 8.163% 7.404% 6.644% 5.885% 5.125%
S & P 500 (2,238.83)$ 49.09$ 55.33$ 62.37$ 70.31$ 79.25$ 89.33$ 100.01$ 111.22$ 122.83$ 134.72$ 146.74$ 158.72$ 170.47$ 181.80$ 192.50$ 202.36$
8.50%
Model 2
Year 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Expected
Starting Industry Start Price Dividends 12.090% 12.090% 12.090% 12.090% 12.090% 11.28% 10.468% 9.657% 8.846% 8.035% 7.224% 6.413% 5.602% 4.791% 3.980%
S & P 500 (2,238.83)$ 49.09$ 55.02$ 61.68$ 69.13$ 77.49$ 86.86$ 96.66$ 106.78$ 117.09$ 127.45$ 137.69$ 147.63$ 157.10$ 165.90$ 173.85$ 180.77$
7.50%
Conclusions:Implied Market Rate Range = 7.50% to 8.50%
Mean 8.00%Market Rate Selected 8.00%
Implied Market Return =
1st Stage Growth Rates 2nd Stage Growth Rates
2nd Stage Growth Rates
Implied Market Return =
1st Stage Growth Rates
*GDP Growth = Real growth + InflationFirst Quarter 2016 Survey of Professional Forecasters - Philadelphia Federal Reserve Release Date
Years
15 years -perpetuity
12.72%
4.37%
1-5 years
6-15 years
Model 112.09%
3.17%
Model 2S & P Dow Jones Indices Index Earnings, January 2017 Linear from 1st Stage to 3rd Stage
Inflation Range = Federal Reserve, Treasuries
2 of 7
2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
211.20$ 220.42$ 230.04$ 240.08$ 250.56$ 261.50$ 272.92$ 284.83$ 297.27$ 310.25$ 323.79$ 337.93$ 352.68$ 368.08$ 384.15$ 400.92$ 418.42$ 436.69$
2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
186.50$ 192.41$ 198.51$ 204.80$ 211.29$ 217.99$ 224.90$ 232.03$ 239.38$ 246.97$ 254.80$ 262.87$ 271.20$ 279.80$ 288.67$ 297.82$ 307.26$ 316.99$
3 of 7
2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
455.75$ 475.65$ 496.41$ 518.08$ 540.70$ 564.31$ 588.94$ 614.65$ 641.49$ 669.49$ 698.72$ 729.22$ 761.06$ 794.28$ 828.96$ 865.15$ 902.92$ 942.34$
2051 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 2065 2066 2067 2068
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
327.04$ 337.41$ 348.10$ 359.13$ 370.52$ 382.26$ 394.37$ 406.87$ 419.77$ 433.07$ 446.80$ 460.96$ 475.57$ 490.64$ 506.19$ 522.24$ 538.79$ 555.87$
4 of 7
2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084 2085 2086
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
983.48$ 1,026.41$ 1,071.22$ 1,117.99$ 1,166.79$ 1,217.73$ 1,270.90$ 1,326.38$ 1,384.28$ 1,444.72$ 1,507.79$ 1,573.61$ 1,642.31$ 1,714.01$ 1,788.84$ 1,866.93$ 1,948.44$ 2,033.50$
2069 2070 2071 2072 2073 2074 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084 2085 2086
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
573.48$ 591.66$ 610.41$ 629.76$ 649.72$ 670.31$ 691.56$ 713.47$ 736.09$ 759.42$ 783.49$ 808.32$ 833.94$ 860.37$ 887.64$ 915.77$ 944.79$ 974.74$
3rd Stage Growth Rates
3rd Stage Growth Rates
5 of 7
2087 2088 2089 2090 2091 2092 2093 2094 2095 2096 2097 2098 2099 2100 2101 2102 2103 2104
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
2,122.27$ 2,214.92$ 2,311.62$ 2,412.54$ 2,517.86$ 2,627.78$ 2,742.50$ 2,862.23$ 2,987.19$ 3,117.60$ 3,253.70$ 3,395.75$ 3,543.99$ 3,698.71$ 3,860.18$ 4,028.71$ 4,204.59$ 4,388.14$
2087 2088 2089 2090 2091 2092 2093 2094 2095 2096 2097 2098 2099 2100 2101 2102 2103 2104
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
1,005.63$ 1,037.51$ 1,070.39$ 1,104.31$ 1,139.31$ 1,175.42$ 1,212.68$ 1,251.11$ 1,290.77$ 1,331.68$ 1,373.88$ 1,417.43$ 1,462.35$ 1,508.70$ 1,556.52$ 1,605.85$ 1,656.75$ 1,709.26$
6 of 7
2105 2106 2107 2108 2109 2110 2111 2112 2113 2114 2115 2116 2117 2118 2119 2120 2121 2122
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
4,579.72$ 4,779.65$ 4,988.31$ 5,206.09$ 5,433.37$ 5,670.57$ 5,918.13$ 6,176.49$ 6,446.14$ 6,727.55$ 7,021.25$ 7,327.78$ 7,647.68$ 7,981.56$ 8,330.00$ 8,693.66$ 9,073.20$ 9,469.30$
2105 2106 2107 2108 2109 2110 2111 2112 2113 2114 2115 2116 2117 2118 2119 2120 2121 2122
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
1,763.43$ 1,819.32$ 1,876.98$ 1,936.47$ 1,997.85$ 2,061.17$ 2,126.50$ 2,193.89$ 2,263.43$ 2,335.17$ 2,409.18$ 2,485.54$ 2,564.31$ 2,645.59$ 2,729.44$ 2,815.94$ 2,905.19$ 2,997.27$
7 of 7
2123 2124 2125 2126 2127 2128 2129 2130 2131 2132 2133
4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366% 4.366%
9,882.70$ 10,314.15$ 10,764.43$ 11,234.37$ 11,724.82$ 12,236.69$ 12,770.90$ 13,328.43$ 13,910.31$ 14,517.58$ 15,151.37$
2123 2124 2125 2126 2127 2128 2129 2130 2131 2132 2133
3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169% 3.169%
3,092.27$ 3,190.28$ 3,291.39$ 3,395.71$ 3,503.33$ 3,614.37$ 3,728.92$ 3,847.11$ 3,969.04$ 4,094.84$ 4,224.62$
2016 Av. Corp Aaa Aa A Baa Aaa Aa A Baa Aaa Aa A Baa P.U. IND.January 4.56 4.00 4.12 4.35 5.45 - 4.09 4.27 5.49 4.00 4.16 4.42 5.40 4.62 4.50February 4.44 3.96 3.98 4.22 5.34 - 3.94 4.11 5.28 3.96 4.02 4.33 5.39 4.44 4.43March 4.33 3.82 3.91 4.16 5.13 - 3.93 4.16 5.12 3.82 3.89 4.16 5.14 4.40 4.25April 4.09 3.62 3.71 3.98 4.79 - 3.74 4.00 4.75 3.62 3.67 3.95 4.82 4.16 4.01May 4.04 3.65 3.70 3.94 4.68 - 3.65 3.93 4.60 3.65 3.73 3.95 4.75 4.06 4.02June 3.91 3.50 3.60 3.80 4.53 - 3.56 3.78 4.47 3.50 3.63 3.82 4.58 3.93 3.88July 3.67 3.28 3.39 3.58 4.22 - 3.36 3.57 4.16 3.28 3.42 3.58 4.27 3.70 3.64August 3.70 3.32 3.42 3.60 4.24 - 3.39 3.59 4.20 3.32 3.45 3.61 4.27 3.73 3.66September 3.78 3.41 3.50 3.68 4.31 - 3.47 3.66 4.27 3.41 3.53 3.69 4.35 3.80 3.75October 3.87 3.51 3.61 3.78 4.38 - 3.59 3.77 4.34 3.51 3.63 3.79 4.40 3.90 3.84November 4.20 3.86 3.94 4.11 4.71 - 3.91 4.08 4.64 3.86 3.97 4.14 4.77 4.21 4.19December 4.36 4.06 4.12 4.28 4.83 - 4.11 4.27 4.79 4.06 4.13 4.29 4.85 4.39 4.33
Yrly Average 4.08 3.67 3.75 3.96 4.72 3.73 3.93 4.68 3.67 3.77 3.98 4.75 4.11 4.04Yrly Median 4.07 3.64 3.71 3.96 4.70 3.70 3.97 4.62 3.64 3.70 3.95 4.76 4.11 4.02
4th Qtr Average 4.14 3.81 3.89 4.06 4.64 3.87 4.04 4.59 3.81 3.91 4.07 4.67 4.17 4.124th Qtr Median 4.20 3.86 3.94 4.11 4.71 3.91 4.08 4.64 3.86 3.97 4.14 4.77 4.21 4.19
Source: Mergent Bond Record, January 2017, p. 201
Corp. by GroupsCorporate by Ratings Public Utility Bonds Industrial BondsCorporate Bond Yield Averages
Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit riskAa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as suc Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.B Obligations rated B are considered speculative and are subject to high credit risk.Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high cred Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospec C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery
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h may possess certain speculative characteristics.
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