This article describes the use of marginal-cost pricing to determine water rates. Two approaches are examined for the determination of marginal capacity costs: the Turvey method and the average incremental cost (AIC) method.
Title | Marginal-cost pricing : its role in conservation |
Publication Type | Journal Article |
Year of Publication | 1993 |
Authors | Mann, PC, Clark, DM |
Pagination | p. 71-78: 8 fig., 5 tab. |
Date Published | 1993-01-01 |
Keywords | capital costs, water conservation, water costs, water supply charges |
Abstract | This article describes the use of marginal-cost pricing to determine water rates. Two approaches are examined for the determination of marginal capacity costs: the Turvey method and the average incremental cost (AIC) method. The development and calculation of a conservation surcharge is demonstrated. |
Notes | 7 ref. |
Custom 1 | 264.0, 276 |