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The Nature of the "Rate Base" in the Regulation of Public Utilities

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  • M. G. de Chazeau

Abstract

I. An impasse in analysis of the "rate base" derives from inadequate examination of the theoretical case for appraisal methods of construction, 299.— II. The economic desiderata of utility rates cannot be attained by administrative determination of service charges from a "rate base," however constructed, 303.— III. The assumption that the "rate base" has a rate-determining function is therefore erroneous, 311.— IV. Recognition that the "rate base" is an earning base only is essential to intelligent appraisal of accounting methods of construction, and of the problems of public utility regulation, 314.

Suggested Citation

  • M. G. de Chazeau, 1937. "The Nature of the "Rate Base" in the Regulation of Public Utilities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 298-316.
    • Handle: RePEc:oup:qjecon:v:51:y:1937:i:2:p:298-316.
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