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Viewpoint – Who pays how much for expanding water supplies?
Author(s) -
Hartman Richard D.
Publication year - 1983
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.1551-8833.1983.tb05096.x
Subject(s) - negotiation , debt , business , water consumption , consumption (sociology) , operations management , agricultural economics , natural resource economics , environmental planning , economics , finance , geography , water resource management , political science , environmental science , law , sociology , social science
In 1980, the Appomattox River Water Authority began an 18‐month process to determine which of its members should contribute and how much should be spent on expanding water supplies. The authority treats and distributes water to the cities of Petersburg and Colonial Heights and the counties of Chesterfield and Dinwiddie, all in Virginia. This article describes negotiations and court procedures undertaken by members of the authority to determine who should pay for improving existing treatment plants and the construction of an additional plant. The final solution involved allocating the capacity of the existing plant based on the previous year's annual consumption. Expansion allocations were determined by taking 1990 projected needs from the consultants' report and subtracting existing plant allocations. Each member was allocated a percent of expansion debt based on future needs divided by total expansion costs. Allocations were not equated with ownership of plant capacity and can be shifted among members as needed.