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Kudos for 75th Anniversary Edition
Author(s) -
Cook Michael B.,
Seidel Harris F.,
Okun Daniel A.
Publication year - 1989
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.1551-8833.1989.tb03247.x
Subject(s) - statute , government (linguistics) , law and economics , power (physics) , term (time) , law , business , economics , political science , philosophy , physics , thermodynamics , linguistics , quantum mechanics
Mr. Metzger responds to the May 1989 Journal article by Ronald A. Smith that encouraged water utilities to employ long‐term contracts for supplying water to large users. Mr. Metzger points out that in many states, including Washington, publicly owned water utilities cannot enter into fixed‐rate contracts absent a statute that expressly provides such authority. The reasoning behind this is based on the fact that the effect of a contract that fixes rates for a specific term suspends the government's power of fixing and regulating such rates. Also, discriminatory rates could result. Mr. Smith responds that he would not support fixing of rates and his primary focus was on the development of a philosophical basis for rates and the various terms and conditions of their administration.