Synopsis
By some accounts, New York Citys investment in the Cannonville dam project (the context of the above quote) was approximately $2.9 billion (1960 US$) higher than alternatives providing similar benefits. Unfortunately, mistakes like the Cannonville project happen all the time. In fact, nearly 50 years after Dr. DeHavens quote the application of economic principles and concepts in the water utility industry is still in a primitive state.
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About the Author
David L. Hayward is a Principal at Hayward Consulting LLC, a utility valuation and policy consulting firm in Leucadia, California. He has a M.S. degree in economics from the University of Utah and is a Certified Rate of Return Analyst (CRRA)an expert in utility cost of capital and utility finance. Mr. Hayward has authored five other books including: Valuing A Water Utility for the National Association of Water Companies (NAWC). He has more than 25 years of experience in the field of public utilities and is a part-time economics instructor at the University of Phoenix, San Diego.
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Water Utility Costs, Values, Rates, and Subsidies: A Practical Guide for Regulators and Economists
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