Inflation-adjusted net income and the real return on equity

Journal Article · Thu Dec 08 00:00:00 EST 1983 · Public Util. Fortn.; (United States)

OSTI ID:5322681

Killingsworth, R

Distortions of accounting measures caused by increasing price levels thwart attempts by utility regulators to arrive at a fair real return on capital. Inflation tends to overstate real interest costs and understate depreciation, obscuring the real cost of capital. This article examines the complex relationship between nominal and real rates of return and suggests a method of defining inflation-adjusted net income to achieve greater accuracy in the reported operating results of regulated companies. 12 references, 3 figures, 1 table.

• Research Organization: New England Telephone and Telegraph Co., Boston, MA
• OSTI ID: 5322681
• Journal Information: Public Util. Fortn.; (United States), Vol. 112:12
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
PUBLIC UTILITIES
ACCOUNTING
FINANCIAL DATA
INFLATION
RATE STRUCTURE
DATA
INFORMATION
290200* - Energy Planning & Policy- Economics & Sociology
296000 - Energy Planning & Policy- Electric Power