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Cost of Equity Used to Determine Fair Rate of Return
Publication year - 1987
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1987.tb02835.x
Subject(s) - commission , rate of return , cost of capital , return on capital , business , proxy (statistics) , equity (law) , cost of equity , return on equity , accounting , finance , economics , actuarial science , profit (economics) , microeconomics , profitability index , law , political science , financial capital , statistics , capital formation , mathematics
In a dispute over a rate increase, a water company objected to the method used by the public utilities commission (PUC) to determine the company's cost of equity. The PUC used the company's parent organization as a proxy to determine the company's cost of capital. The PUC's method was upheld.