Although various businesses are subject to regulatory oversight to greater or lesser degrees, as used in GAAP the term regulated operations refers primarily to public utilities, whose ability to set selling prices for the goods or services they offer is constrained by government actions. Generally, the regulatory process has been designed to permit such enterprises to recover the costs they incur, plus a reasonable rate of return to stockholders. However, given the political process of rate‐setting by regulatory authorities, and the fact that costs such as those for plant construction escalated greatly during the past decade or so, the ability to recover all costs through rate increases has become less certain. For this and other reasons, specialized GAAP has been promulgated.
|71, 90, 92, 98, 101, 143, 144||87‐2||92‐7, 92‐12, 93‐4, 97‐4|