Profit Regulation

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Definitions
Fair Rate of Return
Fair Rate of Return Public Utility Profit Regulation Regulatory Compliance Utility Commissions Dividend Payments Bondholder Interest Service Maintenance Infrastructure Expansion
The fair rate of return is a level of profit that a public utility is allowed to earn as determined by federal and/or state regulators. Public utility commissions set this rate based on the utility's needs to maintain service to its customers, pay adequate dividends to shareholders, and maintain and expand plant and equipment.
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