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FILED JUL 28, 2016 DOCUMENT NO. 0565016 FPS COMMISSION Overstate of FloridaPublic Service Commission CAP ITAL C m cu: O FFI CE CENTER R 2540 SLL l1,RD O A K B OF L EVA RD T ALL IIA SEE, F LO RIDE
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How to fill out utility system rate base
How to fill out utility system rate base
01
Gather all financial and operational data related to the utility system.
02
Identify all assets used in providing utility services.
03
Determine the fair market value of the assets.
04
Calculate the accumulated depreciation of the assets.
05
Include the rate of return or profit margin desired by the utility company.
06
Sum up the total value of assets, subtracting accumulated depreciation, and adding the desired profit margin to arrive at the rate base.
Who needs utility system rate base?
01
Utility companies that provide services such as water, electricity, gas, or telecommunications.
02
Regulatory agencies that oversee the pricing and profitability of utility companies.
03
Investors and stakeholders interested in the financial health and performance of utility companies.
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What is utility system rate base?
Utility system rate base is the value of property used by a regulated utility to provide service, upon which a utility is permitted to earn a specified rate of return.
Who is required to file utility system rate base?
Utility companies regulated by the appropriate governing body are required to file utility system rate base.
How to fill out utility system rate base?
Utility system rate base can be filled out by providing detailed information about the value of the utility's property and assets used to provide service.
What is the purpose of utility system rate base?
The purpose of utility system rate base is to determine the allowable revenues for a regulated utility and to ensure that the utility is able to recover its costs and earn a reasonable profit.
What information must be reported on utility system rate base?
Information such as the value of the utility's property, investments, and assets used in providing service must be reported on utility system rate base.
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