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Similarities in Economic Theory and Sound Extension Policy
Author(s) -
Woods Charles E.
Publication year - 1965
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.1551-8833.1965.tb01514.x
Subject(s) - extension (predicate logic) , sound (geography) , revenue , investment (military) , capital (architecture) , economics , cost–benefit analysis , microeconomics , public economics , risk analysis (engineering) , law and economics , computer science , business , finance , political science , law , archaeology , geomorphology , politics , history , programming language , geology
This article does not attempt to demonstrate how economic theory and principles should be applied. The author indicates, while discussing the 1949 report of the AWWA Committee on Water Main Extension Policy, that he personally feels that the principles that underlie a sound extension should be uniform, but that methods designed to implement these principles must, of necessity, vary with such things as past practices, institutional arrangements, legal constraints, regulatory requirements, and community preferences. Thus, guarantee or special rates may be used if they are designed to insure that those who receive the benefit from the extension pay the cost. Contributions toward the capital costs are another effective way of handling these incremental costs. California has an effective procedure for refunding over a period of time the net investment the utility can make, based on revenues received and costs involved.