rate base

rate base definition - business

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 the utility and its customers.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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