prudent investment theory
- prudent investment theory
-
The theory, sometimes applied in the earlier days of public utility rate regulation, that a public utility is entitled to a return based only on its actual sacrifice, represented by the amount of capital prudently put into the business. 43 Am J1st Pub Util § 105. See safe investment rule.
Ballentine's law dictionary.
Anderson, W.S..
1998.
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