BNJ.pdf

BRAND NAME JUSTIFICATION

Agency/Office Name: ___ O_ff_ic_e_o_f_A_d_m_i_n_is_tr_a_tiv_e_L_iti~g_a_tio_n __

1. "Brand name" of product: -----"-V'"""a"""lu'-=e"""L=i'-'-ne=----

2. Description of "brand name" product: Value Line Investment Survey

3. . Name of manufacturer of "brand name" product: Value Line

4. The "brand name" provided is to identify the standard of quality necessary. Equivalents will be considered. __ Yes x No (If no, please complete Nos. 5 and 6.)

5. If the answer to No. 4 is "no," please complete the following.

Only the "brand name" item specified will meet the Government's needs:

--'"x..__ A. Because patent rights, copyrights, proprietary secret processes, control of certain materials or components providing a superior utility or capabilitythat cannot be obtained from similar products.

___ B. Because program requirements cannot be modified so that competitive products or services may be used.

___ C. Because the product or service is unique and easily established as one-of-a kind.

Please explain:

The Commission relies exclusively on Value Line data for industry classification in selecting proxy groups for the ·performance of its two-step DCF analysis. Staff is not aware of any other sources of electric utility industry classifications of publicly traded companies that the Commission has considered, so this Value Line subscription is crucial to Staff's ability to perform its responsibilities in utility regulation.

6. If the answer to No. 4 is "no," please indicate other reasons for restricting competition:

Staff has had a subscription to Value Line for decades. It is the most renowned source of information for common equity investors, and since we rely on investor expectations,· Value Line is our source of data that reflects investor expectations of financial data into the future. This information is crucial in estimating the cost of equity to be recommended by Staff for the common to allow in utility rate tariffs.

Rate of return on equity accounts for billions of dollars in cost of service industrvwide, and is a heavily litigated aspect of rate cases.

I certify to the best of my knowledge that the above statements are correct.

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