What is the rate?

In the world of public services, the rate of asset of usefulness is allowed to obtain a return. The term 'return' concerns the amount of money expressed as a percentage, society can make a profit. Various assets and fixed costs can be taken into account when determining the base base. This is therefore becoming vital in the total financial image of the company. This includes things such as electricity, natural gas and telephone service. Even public transport services, such as bus and rail systems, are considered public services. Many people argue against such a guarantee and cites how it goes against the nature of the free market. However, most of them consider services provided by companies as necessary that it is not to ensure that the tool earns enough money to remain a solvent. There was also a considerable debate on what expenses and costs should be enabled.

The base base used to determine how much the company can charge for its commodity includes assets such as buildings, real estate and equipment. In addition to the physical asset of usefulness, some operating costs may be included. An example of operating costs would be the cost of buying coal for electricity energy operating its own energy production plant.

Each state has a regulatory agency that is responsible for the administration of its public services. The agency determines the base of the public services rates operating in that state. Also, fixed costs that can be included in the determination of the base base differ from state to the state. As a result, the amount that a usefulness can charge the same company operating in more than one state.

In determining the base base and the fair rate of return on usefulness, the regulatory agency attempts to create a balance between profitability for society and a fair price for consumers. So that the company could pokTo run in operation and to be able to expand the growth of future requirements, adequate profits are necessary. At the same time, the services of services are available to its customers.