AWWA CONS51096

AWWA CONS51096 Fundamentals of Rate Making
Conference Proceeding by American Water Works Association, 01/01/1999

Murphy, Michael E.

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This paper discusses the rate making process. The cost of service (or price)of a water utility consists of two components: operating expenses, which include operation and maintenance expenses, depreciation, taxes other than income, and income taxes; and, capital costs, which include the cost of debt (interest) and a fair return (profit) to the owners of the utility for their investment. Includes appendix.