Cost-Of-Service Regulation
/ˈkɒst əv ˈsɜːrvɪs ˌrɛɡjʊˈleɪʃən/
Definitions
- (n.) A regulatory framework in which a utility's rates are set based on the actual costs of providing services plus a fair return on investment.
The public utility commission approved the rates under cost-of-service regulation to ensure affordability and reasonable profit.
Forms
- cost-of-service regulation
Related terms
See also
Commentary
Typically used in utility law, this regulation balances fair consumer prices with the financial viability of service providers.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.