Premium
Rate Dependent on Actual Cost of Treatment and Delivery
Publication year - 1986
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.1551-8833.1986.tb05791.x
Subject(s) - gallon (us) , amortization , capital cost , seal (emblem) , economics , capital (architecture) , business , environmental science , operations management , finance , engineering , waste management , geography , loan , macroeconomics , archaeology
In a matter involving water rates, courts ruled that the city of Toledo, Oregon, could not unilaterally change the basis on which rates for water supplied to the Seal Rock Water District were established. The contract between the parties stated that the per‐gallon rate was subject to annual adjustment according to the city's actual experience concerning the cost of producing water “exclusive of amortization of capital improvements.” The city sought to adopt a system of pricing whereby the actual cost includes both operating and facility costs.