Abstract
The purpose of this paper is the investigation and analysis of rate base regulation as applied to the traditional public utilities (i.e. electric, gas and water distribution, communications and transportation). | This will be accomplished by first discussing the public utility concept and its development in the United States. Next, the basis of regulation (i.e. cost of service) will be developed and the mechanics used in the application thereof will be discussed. The major portion of this paper will be devoted to discussion and analysis of the major rate base valuation methods. The various controversies surrounding rate base valuation will be presented and analyzed. | Any conclusions or opinions regarding the validity or efficiency of the various ways in which rate base is used in utility regulation and the future of such uses will be those of the author and may or may not be shared by authorities in the field. | Library research will be relied on for most of the information presented.