Leadership

What Is Fair Return to Water Companies?

Issue 9 and Volume 72.

What Is Fair Return to Water Companies? Subject Considered in Its Relation to the Financing of Extensions to Water Works Systems and Question of Adequate Water Rates—Proper Rate of Return on the Investment THE vexing question of adequate return on investmeat for the private water company, involving, as it does, the mutter of equitable water rates, which is always a troublesome problem and one which is productive of much friction, is treated in the following article. Mr. Coulter is a clear thinker, and his conclusions on the subject which he handles are based on long experience. In a rate case with which the writer was connected some time ago, some of the water company’s witnesses claimed that a fair return meant a return large enough to yield a surplus from which extensions to the system might be financed. It is now generally conceded that, other things being equal, a water…

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