Public Utility Commission of Texas

Figure: 16 TAC 25.261(c)(2)

RGC=(PP)(G)

Where:

RGC =

Annual cost (in dollars) of replacement generating capacity

PP =

Purchased power price determined using commission-approved price projections.

G =

Amount of generation (megawatt-hour), which is the annual average of the output of the applicable electric generating facility for the three most current years as reported on Form EIA-767 or if not available on Form EIA-767, then the average annual output as reported to the commission, declining for the years 2004 and thereafter at the rate of 2.0% per year.