// definition
Rate base
Regulated asset base
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Short definition
The value of a utility's property on which the regulator allows it to earn a return. When a line, substation or plant enters the rate base, depreciation and the allowed return are recovered through rates.
risk atlas
Knowledge map
Intuition
The rate base turns an approved investment into tariff revenue: depreciation and return are recovered from customers as the regulator decides.
Formula
revenue requirement = operating expenses + depreciation + taxes + rate of return × rate baseWhy it matters now
The data-centre boom forces commissions to decide whether assets built for an absent large load remain with the applicant or enter collective rates.
Related analyses
- The ghost kilowattData-centre tariffs, grid costs and ratepayer risk.
- The debt behind AIDebt, SPVs and financing the compute buildout.
- The residual value guaranteeAI-asset depreciation and risk transferred to a guarantor.
Related datasets
- evidence-graph.jsonLinks between articles, claims and sources.
- claims.jsonClaims extracted from the corpus with their references.
Primary sources
- Federal Energy Regulatory CommissionTransmission tariffs, large loads and cost-recovery agreements.
- U.S. Department of EnergyRate design, risk sharing and stranded assets.
- Virginia State Corporation CommissionGS-5 tariff, minimum commitment and collateral.