IDEAS home Printed from https://ideas.repec.org/a/ids/ijecac/v9y2020i2p89-99.html
   My bibliography  Save this article

Public utilities

Author

Listed:
  • Tony Tinker

Abstract

How are the prices of utility charges for its services determined? Utility's rates are set on a cost-plus-profit basis. The profit is decided by using the regulated profit % to the amount that a firm invested in assets that produce the services; this investment is termed led the rate base. The regulated profit percentage is usually set at a level that will give the company at return on its investment that is termed the rate base. There are extensive differences between states in how each defines the rate base and in what constitute an allowable expense for rate setting purposes, although the general procedure described in the following as to how the rate-per-unit of service is arrived at in the majority of states.

Suggested Citation

  • Tony Tinker, 2020. "Public utilities," International Journal of Economics and Accounting, Inderscience Enterprises Ltd, vol. 9(2), pages 89-99.
    • Handle: RePEc:ids:ijecac:v:9:y:2020:i:2:p:89-99
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=105139
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijecac:v:9:y:2020:i:2:p:89-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=357 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.