Memorandum 20 Preliminary Price Caps for Performance Term Two

This memorandum gives a preliminary ruling on BC Ferries’ allowed return on equity (ROE) which the Commission must determine under section 41(2)(b) of the Coastal Ferry Act for the purpose of setting price caps for the second performance term. It does not address the estimated value of equity to which this ROE will apply, nor the estimation of the future cost or levels of debt, nor the weighted average cost of capital.