fair rate of return. The amount of profit that a public utility is permitted to earn, as determined by a public utility commission. [Cases: Public Utilities 129. C.J.S. Public Utilities §§ 35, 38–41, 57.]
internal rate of return. Accounting. A discounted-cash-flow method of evaluating a long-term project, used to determine the actual return on an investment. — Abbr. IRR.