Definitions for "Base Rates"
those rates of occurrence of a phenomenon which need to be taken into account in order to determine the diagnosticity of evidence.
The rates for those tariffed services that the electric utility is required to offer or tariffs that were in effect prior to October 1, 1996.
The rates a utility charges to cover its non-fuel costs. Base rates are set with reference to an historic test year, so as to bring the revenue expected from the rates in balance with the reasonable expenses of the utility over the test period, including a reasonable return on capital. Unlike fuel charges, base rates are typically set only on a prospective basis. Thus, except where a commission has decoupled rates from sales, base rates do not change from one rate case to another, despite changes in actual earnings relative to the earnings the commission intended the company to have the chance to earn when it set the rates.