Assume an electric utility company, X Electric Co., makes capital investment in property, plant and equipment and begins operation in on January 1, 2013. Assume X Electric Co. will operate under a rate of return regulation regime in the Kingdom of Normal. X Electric Co. constructs a new 100 MW pulverized coal power plant with carbon capture and sequestration on January 1, 2013 at a cost of $475,000,000. In addition to the power plant investment, the X Electric Co. constructs transmission and distribution network infrastructure for $550,000,000 on January 1, 2013. Assume the power plant and transmission and distribution network have a 40 year useful life, and X Electric uses straight line depreciation.

X Electric Co. purchases 250,000 tons of coal at $50 per ton in order to operate the coal plant in 2013. In addition to the cost of fuel, X Electric Co. spends $2,500,000 on operation and maintenance of the coal plant in 2013. The cost of operations and maintenance of the transmission and distribution system is $2,000,000 in the 2013. Additional administrative and general expenses for X Electric Co. total $1,500,000 in 2013. X Electric Co. issues $300,000,000 in bonds (debt) with a 5% coupon and $200,000,000 in equity (stock) which pays an average annual dividend of 8% to finance capital investments and expenses. Assume the regulated rate of return in 2% higher than the weighted average cost of capital.

What is the weighted average cost of capital, the regulated rate of return, and the rate base on December 31, 2013 versus December 31st, 2014