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Fair rate of return |
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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. |
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| Only a few mutual insurers have agreed to provide refunds, while most appear poised to fight the regulation in a series of administrative hearings or through lawsuits which contend that the refunds violate the insurers' rights to a fair rate of return. These limited partners want to nurture the next generation of entrepreneurs, but expect a fair rate of return on their money as well. California Department of Insurance Commissioner John Garamendi has said he intends to implement rate rollback provisions of the law and limit insurers to only a fair rate of return. |
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