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 ?
SJ VVBIG fields, small returns Owners are the backbone of the racing game and they deserve a fair return for their participation.
But seven is a fair return when you look at our performances.
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.
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.
National performance director Bill Sweetenham has insisted Britain's medal haul from Athens represents a fair return from a sport whose entire annual budget is just a quarter of Sven-Goran Eriksson's salary.
There is a wide range of views about the target combined ratio for a workers' comp insurer to produce a fair return on capital.
One of the things needed to produce food are farmers - and they aren't likely to work unless they get a fair return for their labours.
In the more challenged markets, we will work to improve the overall operating environment and increase the effectiveness of our facilities in those areas--or, if appropriate, selectively divest operations that demonstrate little chance of earning a fair return on our investment.
That's a fair return and maybe I'll head up there next week to pick up tips.
When we issued the offering memorandum earlier this year, our desire was to sell the business unit to a company focused on the shared storage market with the channel and resources to get maximum leverage from our innovative technology, offering our SSBU employees an exciting future and Mercury a fair return on our R&D investment in shared storage intellectual property," says Mercury CEO Jay Bertelli.