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Special Considerations in Design of Water Rates
Author(s) -
Luthin John C.
Publication year - 1963
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1963.tb01033.x
Subject(s) - depreciation (economics) , revenue , premise , non revenue water , component (thermodynamics) , business , economics , environmental economics , finance , microeconomics , water resources , water conservation , profit (economics) , ecology , linguistics , philosophy , physics , financial capital , capital formation , biology , thermodynamics
This article discusses the basic premise that water rates must be designed to recover the total annual costs of a water utility. Topics covered include: the difference in revenue requirements between investor‐owned and publicly owned water utilities; depreciation expense as a revenue requirement; establishing a base year from which projections can be made; comparisons of operating ratios; future revenue requirements; application of principles of pricing; avoidance of undue discrimination; typical rate schedules; use of block rates; demand component of cost; demand rates; zone rates; and, miscellaneous considerations.