Regulated Revenues

A company’s regulated revenue profile is typically set by a government/municipal entity and reflects the size of its asset base, its cost of capital, as well as expenses. It will also include an allowance for depreciation of the assets. Given steady demand for the services provided and the pre-determined earnings, these assets tend to provide very stable cash flows. Regulated revenues are often linked to inflation by Consumer Price Index-based price adjustments and/or expense pass-throughs.