Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XI. The value of a water-right and of reservoir and watershed lands

Collection:: Economics Books

THE VALUE OF WATER-RIGHTS } the average or ordinary cost would, under strict application of this test of value, prove to be a liability and not an asset. This, too, is an absurdity and condemns the method. Neither this method nor a comparison with the cost of devel- oping the next most available supply can be used as a dependable method for determining water-right values. In some sections of the country, as, for example, in portions of California, the demand for irrigation water has nearly, if not quite, reached the limit of supply. In such regions the depress- ing effect upon the value of water which results from large undeveloped available sources is no longer felt. The earnings that result from the use of the water have become the measure of its value and this value is consequently relatively high. The recognized value of water-rights in such sections has an effect upon the value of water-rights elsewhere and for uses other than irrigation. The value of water used for domestic pur- poses, similar general conditions being assumed, should not be less than that of water used for irrigation, and, if for this pur- pose it has a high value in one part of the state, — the question is asked, why not in another? Such considerations as these are not without effect upon the market value of water-rights. The fact should not be overlooked that the inclusion of a water-right value in the rate-base of a public service property, to the extent that this value exceeds cost, would be in the nature of an allowance to be regarded as part compensation for having undertaken the water development, and this compensation increment might reasonably be brought into some definite re- lation to the general cost of developing water in any region. Water-right Values in Relation to Cost of Works. — It has above been stated that the allowance of a fair reward for the successful development and beneficial use of water is legitimate. The making of a reasonable allowance, preferably based upon some definite percentage allowance on the ordinary regional cost of developing water or of developing hydro-electric power as the case may be, should be encouraged. If this principle were generally recognized, it would result in fixing with some 21:

Access restriction

Copyright

fullscreen: Valuation, depreciation and the rate base

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation