fair return

fair return
An expression much employed in the fixing of public utility rates, meaning a reasonable return on the value of the property used in rendering the services. 52 Am J1st Teleg & T § 57. A reasonable return on the investment of a public utility, determinable only by the exercise of sound judgment and common sense, being a matter of fair approximation, not capable of exact mathematical demonstration. 43 Am J1st Pub Util § 156. The term has a double aspect, one legislative and the other judicial. In the judicial aspect it is the equivalent of nonconfiscatory. Judicially, a rate is unreasonable only when it yields a return less than the minimum which the capital invested may of right demand. In the legislative aspect, the return may exceed such amount; for the legislature or the commission may add to it to carry out some public policy rates which are substantially higher than the line between validity and unconstitutionality properly may be deemed to be just and reasonable, and not excessive or extortionate. Idaho Power Co. v Thompson (DC Idaho) 19 F2d 547.

Ballentine's law dictionary. . 1998.

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  • fair return on investment — A fair return is to be largely measured by usual returns in like investments in the same vicinity over the same period of time. Natural Gas Pipeline Co. of America v. Federal Power Commission, C.C.A.I11., 120 F.2d 625, 633, 634. Reasonable profit …   Black's law dictionary

  • fair return on investment — A fair return is to be largely measured by usual returns in like investments in the same vicinity over the same period of time. Natural Gas Pipeline Co. of America v. Federal Power Commission, C.C.A.I11., 120 F.2d 625, 633, 634. Reasonable profit …   Black's law dictionary

  • fair — adj 1: characterized by honesty and justice: free from self interest, deception, injustice, or favoritism a fair and impartial tribunal 2: reasonable as a basis for exchange a fair wage a fair valuation 3: consistent with merit or importance …   Law dictionary

  • return — To bring, carry, or send back; to place in the custody of; to restore; to re deliver. Return means that something which has had a prior existence will be brought or sent back. Sims v. Western Steel Co., C.A. Utah, 551 F.2d 811, 820. The act of a… …   Black's law dictionary

  • fair value — Present market value; such sum as the property will sell for to a purchaser desiring to buy, the owner wishing to sell; such a price as a capable and diligent business man could presently obtain from the property after conferring with those… …   Black's law dictionary

  • fair value — Present market value; such sum as the property will sell for to a purchaser desiring to buy, the owner wishing to sell; such a price as a capable and diligent business man could presently obtain from the property after conferring with those… …   Black's law dictionary

  • fair rate of return — Amount of profits that a public utility is permitted to earn as determined by public utility commissions. Such is based on the need of the utility to maintain service to customers, finance expenditures for improvements and expansion, pay… …   Black's law dictionary

  • fair rate of return — Amount of profits that a public utility is permitted to earn as determined by public utility commissions. Such is based on the need of the utility to maintain service to customers, finance expenditures for improvements and expansion, pay… …   Black's law dictionary

  • Fair Linen Cloth —    , Fair White Linen Cloth    In the Communion Office there are two rubrics, the first of which reads as follows: The Table, at the Communion time having a fair white linen cloth upon it, etc. By this is meant the long linen cloth the breadth of …   American Church Dictionary and Cyclopedia

  • Fair Annie — is Child ballad number 62, existing in several variants. [Francis James Child, English and Scottish Popular Ballads , [http://www.sacred texts.com/neu/eng/child/ch062.htm Fair Annie ] ] ynopsisA lord tells Fair Annie to prepare a welcome for his… …   Wikipedia

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