Analyses Can Consider Variable Costs

An August 1977 contract permitted United Water Missouri (UWM) to use all storage tanks and wells owned by Public Water District 2. In return, UWM agreed to operate and maintain the tank and wells, pay $2,000 per month to the district, and provide the district with all of its water. In March 1994, UWM filed tariffs with the Public Service Commission (PSC) that would have increased its revenues by $523,606. The PSC rejected the proposal but did authorize tariffs that increased revenues by $334,799. The trial and appellate courts affirmed the PSC order.