TeachMeFinance.com - explain Rate base
Rate base The term 'Rate base' as it applies to the area of energy can be defined as ' fair value, prudent investment, reproduction cost, or original cost. Depending on which method is used, the rate base includes cash, working capital, materials and supplies, deductions for accumulated provisions for depreciation, contributions in aid of construction, customer advances for construction, accumulated deferred income taxes, and accumulated deferred investment tax credits'.
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