Fair rate of return

(redirected from Fair Return)

Fair rate of return

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 provide service upgrades to their customers.

Fair Rate of Return

The profit that a government allows an industry to make if it deems that industry to be necessary for public function. A state may impose a fair rate of return on industries, such as utilities, to keep services affordable for consumers. Critics of this practice contend that this is economically inefficient and ultimately harms consumers, though this is a matter of considerable dispute.
References in periodicals archive ?
We are pleased that our commitment to delivering exceptional quality water and service to customers and communities has again allowed us to provide a fair return to our shareholders.
Earlier this week the government announced it will introduce new legislation to make sure all bookmakers who accept bets on the sport will pay a fair return to racing.
The Association strongly supports the growers and advocates a fair return to not only cover their cost but also a reasonable income for them.
This lease sale is another important step in promoting responsible domestic energy production through the safe, environmentally sound development of the Nation s offshore energy resources, while ensuring a fair return to the American people.
He was optimistic that cotton growers would earn the fair return of their produce next year and they should bring maximum area under cotton crop.
The fair return is an economic, budgetary and even political lie.
Supermarkets don't pay farmers directly for pork but continue to work with meat processors, who do control that direct relationship, to ensure a fair return to farmers is balanced with an affordable shop price for customers.
1 : a fair return in goods, services, or money for something exchanged
accept[s] the concept of a fair return to the producer of a good product.
THE prospect of Californians at long last getting a fair return on its federal tax dollars has just inched closer to reality.
If the shareholder-employees would have received the same amount of compensation in an arm's-length negotiation, the corporation's shareholders received a fair return on their investments.
AMPI is assuring member-owners a fair return on equity," said AMPI General Manager Mark Forth.