What is a rate structure in utilities law?

A rate structure in utilities law refers to the way that utilities companies set their prices for the services they provide. In South Dakota, the Public Utilities Commission sets the rate structure for most utilities. The rate structure is designed to reflect the costs associated with providing the services, such as labor and materials, so the prices will be in line with the market. The rate structure also takes into consideration the amount of demand for the services, as well as the cost of delivering the services. The rate structure is designed to be fair and equitable for both the customers and the utilities company. The structure will vary depending on the type of service being provided. For example, electricity and natural gas have different rate structures than telephone and water services. Additionally, rate structures can also be adjusted to account for changes in demand or cost of delivery. Ultimately, the rate structure must be approved by the Public Utilities Commission before it can be implemented. The Commission is responsible for ensuring that the rate structure is fair for both the customer and the utilities company. In addition, the Commission reviews the rate structure to make sure that it is in line with the market, and that it offers customers the best possible value for their money.

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What is a rate structure in utilities law?

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