Illustrative Example B
(Cumulative amortization impact in year one through year six under amended regulation if R&E expenditure is $100.0M each year) (in millions) | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 and thereafter | ||||||||||||||||
R&E Expenditure | $ | 100.0 | $ | 100.0 | $ | 100.0 | $ | 100.0 | $ | 100.0 | $ | 100.0 | ||||||||||
R&E Income Tax Deduction | $ | 10.0 | $ | 30.0 | $ | 50.0 | $ | 70.0 | $ | 90.0 | $ | 100.0 | ||||||||||
Cash flow benefit from tax deduction | $ | 2.1 | $ | 6.3 | $ | 10.5 | $ | 14.7 | $ | 18.9 | $ | 21.0 | ||||||||||
Cash flow benefit from previous regulation | $ | 21.0 | $ | 21.0 | $ | 21.0 | $ | 21.0 | $ | 21.0 | $ | 21.0 | ||||||||||
Difference in cash flow benefit | $ | (18.9 | ) | $ | (14.7 | ) | $ | (10.5 | ) | $ | (6.3 | ) | $ | (2.1 | ) | $ | — |
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