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Inferior Service Deserves Less Return
Publication year - 1996
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.1551-8833.1996.tb06562.x
Subject(s) - franchise , sewerage , finance , business , rate of return , profit (economics) , service (business) , accounting , state (computer science) , economics , engineering , marketing , waste management , algorithm , computer science , microeconomics
Valley River Sewerage Company (New Jersey) applied to the regulatory board for a rate increase in 1992. The company's financial condition had long been precarious. It never reported a profit, and its liabilities included more than $400,000 in overdue gross receipts and state franchise taxes. The firm also had an appalling record of environmental violations. In spite of two previous substantial rate increase, the company's financial condition continued to deteriorate. The regulatory board agreed with an administrative law judge's recommendation and denied the rate increase. The company appealed but the decision was upheld.