A common carrier is an entity or individual that provides transportation services for people or goods and is classified as a public utility.
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.
Public utilities are for-profit companies characterized by natural monopolies due to the nature of their business, leading to government regulation to ensure fair pricing and distribution.
