Rate base

Rate base
  The value of property upon which a utility is permitted to earn a specified rate of return as established by a regulatory authority. The rate base generally represents the value of property used by the utility in providing service and may be calculated by any one or a combination of the following accounting methods: fair value, prudent investment, reproduction cost, or original cost. Depending on which method is used, the rate base includes cash, working capital, materials and supplies, deductions for accumulated provisions for depreciation, contributions in aid of construction, customer advances for construction, accumulated deferred income taxes, and accumulated deferred investment tax credits.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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  • rate base — n: the total fair value of public utility property that is used in rendering services and that comprises the investment on which a fair rate of return is based in setting utility rates Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

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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. Bloomberg Financial Dictionary …   Financial and business terms

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  • Rate base /electric —   The value of property, upon which, a utility is permitted to earn a specified rate of return as established by a regulatory authority. See FERC definition.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

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  • base rate — noun the interest rate set by the Bank of England for lending to other banks • Regions: ↑United Kingdom, ↑UK, ↑U.K., ↑Britain, ↑United Kingdom of Great Britain and Northern Ireland, ↑Great Britain • Hypernyms: ↑ …   Useful english dictionary

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