Abstract: At present, the gap between China's power grid transmission and distribution business profitability and reasonable return level is still large, which can not meet the normal development needs of power grid enterprises. It is necessary to consider the relationship between the depreciation rate and the rate of return, so that the return of the power transmission and distribution business of the power grid enterprise will gradually reach the reasonable and feasible level. This paper analyzes the influence of the above parameters on transmission and distribution price in qualitative and quantitative aspects, and puts forward some suggestions on how to determine the depreciation rate and return on investment.