Understand how public utilities should be priced, not just valued.
This volume collects historic discussions on rate fixing, valuation, and the rules that govern how earnings and investments support pricing for water, gas, electric, and street railway services. It explains the difference between rate bases and market value and argues that depreciation should not automatically drive rates, a perspective that reshaped public utility debates.
The book surveys practical questions from early 20th‑century rate cases, including how to measure value for rate setting, how to treat long‑term investments, and the role of competition and public policy. It covers the concept of the rate base, current depreciation, and how government decisions influence the numbers used to determine fair charges for consumers. Readers will see how factors like population growth, development costs, and the pace of infrastructure work influence value, and how courts and commissions have approached these issues in practice.
- Foundational ideas about rate fixing versus market value
- Definitions of rate base, value, and the impact of depreciation
- Discussions of real estate and reservoir land value in public utilities
- Examples from rate cases and the legal framework guiding decisions
Ideal for students and professionals studying rate regulation, public policy, or the history of utility economics, this edition illuminates the principles behind how utilities are financed and how rates are determined in a way that seeks fairness and practicality for both providers and the public.