Leadership

Have Water Rates Kept Pace With Operating Costs?

Issue 4 and Volume 78.

Have Water Rates Kept Pace With Operating Costs? Present Position of Elements of Rates as Regards tlie Increase in Operation, Maintenance, Taxes, etc.—Need to Establish a Balance WHILE the following article is written distinctly from the stand point of the privately-owned water company, there arc many points at which it touches the situation of rates as regards the municipal water works, and it is therefore of interest to all water works superintendents: Privately-owned water utilities under public regulation were able to secure limited rate increases during the period 1918-1923, which in a measure covered increased expenses caused by post-war inflation. These rates were generally predicated on a base representing original cost, less depreciation, or an empirically increased value designed to in some degree reflect the increased post-war costs of money, labor and materials. Any equilibrium thus established was necessarily temporary. Additions to plant, subsequently undertaken in proportion to consumption increases,…

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