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- W160376502 abstract "rates are essentially a means of allocating revenue requirements equitably to all classes of consumers. This discussion deals primarily with revenues rather than rates. Every water utility, if it is to furnish good service, must have sufficient revenue to cover: [1] all operation and maintenance expenses; [2] depreciation; and [3] fixed charges (or return on investment). In addition, it must earn a surplus large enough to attract the capital necessary for its orderly expansion. The costs of operation and maintenance are in general identical for both privately and municipally owned water works, assuming equally efficient management. Depreciation likewise occurs without regard for ownership, and must be provided for as an annual operating expense chargeable to those using the facilities. The amount of depreciation charged annually should be at least sufficient to maintain the facilities. Although it rarely does so under regulatory commission control, it should also take into consideration the changing purchasing value of the dollar. Regulatory commissions now generally allow 1.5-2.0 per cent of original cost for annual depreciation in fixing rates for private water works. This is approximately eq ivalent to 0.75-1.0 per cent of the actual current cost of reproduction. Because it is facilities rather than dollars that furnish water service, it is facilities that are consumed and must" @default.
- W160376502 created "2016-06-24" @default.
- W160376502 creator A5053743536 @default.
- W160376502 date "1956-05-01" @default.
- W160376502 modified "2023-09-25" @default.
- W160376502 title "Rates, Revenues, and Rising Costs" @default.
- W160376502 cites W2889533431 @default.
- W160376502 doi "https://doi.org/10.1002/j.1551-8833.1956.tb15468.x" @default.
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