 Therefore, asset valuation was to be calculated by regulators based on a combination of historical cost and current return value.Rate-of-return regulation was primarily used in the United States to regulate utility companies that provide goods such as electricity, gas, telephone service, water, and television cable to the general public.Despite its relative success in regulating such companies, rate-of-return regulation was gradually replaced in the late 20th century by new, more efficient forms of regulation such as Price-cap regulation and Revenue-cap regulation.