Rate Base/Regulated Asset Base

Used to describe the value of a utility’s asset base upon which the utility can earn a return on its investment. This can include the value of water, gas and electricity transmission and distribution lines, certain generation assets, gas mains, water treatment facilities and meters, as well as other assets. Rate base/regulated asset base is a key driver in how a utility makes money.

Related Terms:  Allowed Rate of Return
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Rate Base/Regulated Asset Base