per unit transmission costs
(1) Definitions In this subsection: (A) Per unit distribution costs The term “per unit distribution costs” means (in kilowatt hours) the quotient obtained by dividing— (i) the depreciated book-value distribution system costs of a utility; by (ii) the volume of utility electricity sales or transmission during the previous year at the distribution level. (B) Per unit distribution margin The term “per unit distribution margin” means— (i) in the case of a State-regulated electric utility, a per-unit gross pretax profit equal to the product obtained by multiplying— (I) the State-approved percentage rate of return for the utility for distribution system assets; by (II) the per unit distribution costs; and (ii) in the case of a nonregulated utility, a per unit contribution to net revenues determined multiplying— (I) the percentage (but not less than 10 percent) obtained by dividing— (aa) the amount of any net revenue payment or contribution to the owners or subscribers of the nonregulated utility during the prior year; by (bb) the gross revenues of the utility during the prior year to obtain a percentage; by (II) the per unit distribution costs. (C) Per unit transmission costs The term “per unit transmission costs” means the total cost of those transmission services purchased or provided by a utility on a per-kilowatt-hour basis as included in the retail rate of the utility.