The fair rate of return rule means that regulators determine the fair rate of return on capital for the company and allow Blank______. Multiple choice question. an increase in rates only if the company can show that revenues are sufficient to achieve this fair rate an increase in rates only if the company wants to generate revenues that are over and above this fair rate an increase in rates only if the companies can prove that they are unable to generate revenues at all and this fair rate would help them achieve it an increase in rates only if the company can show that revenues are insufficient to achieve this fair rate