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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

rate base

The valuation of a utility's assets for the purpose of determining the rates the utility is permitted to charge its customers. Exactly what a utility should be permitted to include in its rate base is often a point of contention between it and its customers.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Some argue that if magazines can't get consumers to pay more, they should consider cutting their rate bases. Newsweek and TV Guide have done so in recent years to improve circ profitability.
Leckey has followed his own advice, cutting rate base at AMI titles Star, Men's Fitness and Natural Health.
Yet some publishers are reluctant to do so because of the longstanding perception that cutting rate base is a sign of a faltering magazine.