This book explains the basis for rate decisions in public utilities, focusing on determining fair value of property used in service. It covers the challenges of building an inventory, choosing the right measures of value, and the importance of considering not just physical assets but non-physical factors like franchise rights and other intangibles. Written by Henry Floy, it presents a logical framework for valuing property to support lawful, reasonable rate outcomes.

Value for Rate-Making examines how present value, depreciation (real versus theoretical), and development costs influence pricing. It also addresses the role of law, court decisions, and practical engineering experience in shaping valuation practice. This edition aims to clarify how values are established and used in rate cases, sale, or regulatory review.

Learn the differences between present value, original cost, and depreciation as foundations for rate decisions.
Understand why intangible elements like franchise rights can affect overall value.
Explore how legal rulings and regulatory practices shape valuation methods in practice.
Discover how to frame a clear, defendable inventory and pricing approach for rate cases.

Ideal for engineers, regulators, and policy readers seeking a grounded view of how utility value supports fair rates.

"About this title" may belong to another edition of this title.

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