Yesterday, PATH filed this on the FERC docket regarding their soon to be history 14.3% ROE. Randy and Monique cry some big crocodile tears about how unfair FERC is being by insisting that the median of their new proxy group be used to calculate their new ROE.
Let's have a quick talk about median vs. midpoint. Yes, it's math, but I promise it won't be hard. Don't look away, it will be virtually painless and I promise you'll "get it". You're probably all familiar with "average" and how to calculate it -- you add up all the figures in your series and then divide by the number of figures to find the average or "midpoint". Median is a slightly different animal and can result in a lower figure. To calculate median, you sort your figures in numerical order and then select the middle number. If you have an even number of figures, you calculate the mean of the two middle figures to arrive at median. To see an example of this, see the link above. The link explains how median is a popular mathematical trick favored by shysters, or in this case our slippery PATH friends, Randy and Monique.
They're quite familiar with median resulting in a lower number. In the TrAILCO order, they managed to screw a bunch of property owners out of a fair price for their property by using the median of three appraisals to determine the price to be paid to property owners within 400 feet of TrAIL, instead of the midpoint.
"Staff General Condition #2 - “The Company shall purchase any property containing residences that are within 400 feet of the centerline if the owner desires to sell their property. TrAILCo accepts this condition, provided that in each case the property owner will have until the first anniversary of the inservice date of the West Virginia Segments of TrAIL to notify TrAILCo in writing that the property owner has elected to exercise
the option to require TrAILCo to purchase the property at a fair market value based on the median of three appraisals. One appraisal shall be prepared by a qualified appraiser selected by the property owner, another appraisal shall be prepared by a qualified
appraiser selected by TrAILCo and a third appraisal shall be prepared by a qualified appraiser selected by agreement of the two other appraisers. TrAILCo shall pay the reasonable costs of all three appraisals."
Oh, boo-hoo-hoo, cry me a river, you two. Do you really think FERC is going to fall for your skulduggery? Hypocrites.