rate base

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 ?
These items were partially offset by higher margins due to Interstate Power and Light Company's (IPL's) and Wisconsin Power and Light Company's (WPL's) increasing rate base.
Philreca argued that ECs do not provide surplus funds "by way of a return on rate base and depreciation" like what distribution utilities (DUs) have.
Return on equity is 9.99% on $3.34 billion rate base for test year ended June 30, 2017, higher than the currently allowed 9.85% and the three-year industry average of 9.7% from 2015 to 2017 for integrated utilities.
In effect, the court ruled that in certain circumstances, state statute allows electric companies in Missouri to include charging stations when calculating their rate base, or the value of their hard assets.
The Federal Energy Regulatory Commission sets rates for around 30 percent of the Corporation's regulated rate base. Rate setting for the balance of the Corporation's regulated rate base is largely governed by state and provincial bodies in the jurisdictions in which the Fortis utilities operate.
The settlement agreement would also place the Beethoven wind project into the company's South Dakota rate base.
The five-year capital investment plan is projected to increase ITC's consolidated rate base from approximately $2.6 billion at the end of 2010 to approximately $4.9 billion at the end of 2015.
Leckey has followed his own advice, cutting rate base at AMI titles Star, Men's Fitness and Natural Health.
"CIO Insight China" has an initial mixed paid and controlled rate base of 61,000 and will be published 12 times a year.
Third, we have been able to increase our circulation rate base for the first time in more than 45 years.
Both titles really want to build that rate base, so they're practically giving away the year's extension: 15 issues of FC for $9.97, 17 issues of WD for $5.00