Inhaltsangabe
Excerpt from Value for Rate-Making
Basis for Rates. - The determination of the value of property used in serving the public has become a very general requirement. The purpose of such determination is usually to permit the control of public utility properties through municipal, state or national regulatory bodies. Although this present commission form of regulation is a comparatively recent development, it is predicated upon the principle that private ownership may be compelled to provide adequate service at the lowest rates that will furnish a fair return upon the fair value of the property devoted to public service. It will, therefore, be recognized that the determination of property values, in connection with rate-making, is made primarily for the purpose of determining the amount of return to be allowed.
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