The Director calculates each pilotage association's allowed base working capital fund by adding the projected adjusted operating expenses from §404.102 and the total target pilot compensation from §404.104 of this part, multiplied by the preceding year's average annual rate of return for new issues of high grade corporate securities.

[USCG-2015-0497, 81 FR 11941, Mar. 7, 2016, as amended by USCG-2016-0268, 82 FR 41496, Aug. 31, 2017; 82 FR 43864, Sept. 20, 2017]