Percentage earnings a public utility is allowed to take under the local laws. The objective of such laws is to protect the utility's consumers from extremely high utility charges while covering the utility's needs, such as maintaining and upgrading its equipment, and the need to pay its investors and bond holders an acceptable rate of return.
Related information about fair rate of return:
- Fair Rate of Return - Financial Dictionary - The Free Dictionary
The rate of return that state governments allow a public utility to earn on its investments and expenditures. Utilities then use these profits to pay investors and ...
- What is fair rate of return? definition and meaning - InvestorWords.com
Definition of fair rate of return: Percentage earnings a public utility is allowed to take under the local laws. The objective of such laws is to protect the utility's ...
- Fair Rate of Return: Definition from Answers.com
level of profit that a utility is allowed to earn as determined by federal and/or state regulators. Public utility commissions set the fair rate of return.
- What is fair rate of return? - BusinessDictionary.com
Definition of fair rate of return: The amount a regulated agency is able to charge a customer for services. For example, a water treatment plant can charge for a ...
- RATE OF RETURN: REGULATION - University of Florida
so that investors have an opportunity to receive a fair rate of return on their investments. There are five traditional criteria for determining whether a rate of return ...
- Fair rate of return Definition - NASDAQ.com
Fair rate of return: read the definition of Fair rate of return and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- The "Optimal" Fair Rate of Return - JStor
tional view that the fair rate of return allowed to a regulated firm always should be ... public utility commissions usually employ a fair-rate-of-return. Dr. Klevorick ...
- Fair Rate of Return?
Jan 7, 2008 ... But then I had to ask myself, “What is a fair rate of return in this market”? You see the problem is I am measuring performance with a shrinking ...