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Rate Base |
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Rate base The value of a regulated public utility and its operations as defined by its regulators and on which the company is allowed to earn a particular rate of return. Rate Base The value of the assets of a utility company. The rate base helps the local government determine the price the utility company is allowed to charge its customers. The rate base determines prices because it helps to ensure a reasonable profit for the utility company while keeping utilities (which are perceived as necessary) affordable for customers.
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