Wholesale Cost of Water

Modernizing Meter Rates

“…It becomes pertinent to inquire into justification for such high ratios as 3 to 1. Capen (7) has studied the cost of water delivered at the city-line from most of the same large supplies covered by Barcus and Kindred (8) and has shown that such wholesale water costs somewhat more than 50 per cent of the total cost. On this basis, it might appear that a meter rate ratio of less than 2 to 1 would be in order, rather than the 3 to 1 ratio that would be expected for large cities.…”