Rate Base
/ˈreɪt beɪs/
Definitions
- (n.) The value of property on which a public utility is permitted to earn a specified rate of return, used to determine rates charged to customers.
The commission adjusted the utility's rate base to reflect the updated asset valuation.
Forms
- rate base
- rate bases
Related terms
See also
Commentary
The rate base is fundamental in utility regulation, as it defines the asset value subject to rate of return; careful valuation is key for just and reasonable rates.
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.