Water/wastewater pricing and financial practices in the United States

waste/wastewater projects in Egypt, a survey, herein reported, was made of the pricing policies and financial practices of 262 water and 289 wastewater utilities in the United States. The report first surveys the industry in terms of its ownership (public or private) and organization, the total population served, varying capacity requirements, leakage, trends in service costs, and problem areas. Next, economic and financial principles governing the design of utility financing plans - water supply as a public and private good, financial goals, the role of taxes, user charges, long- and short-term borrowing, inter-governmental transfers and subsidies, and equity capital - are analyzed. Utility financial practices are then investigated, including the sources, application, and recovery of investment and operating funds; the role of subsidies; and proposals for the privatization of facilities and creation of autonomous utilities. Finally, rate-making practices, especially the use of alternative rate forms, and the rate-making process are described and suggestions to improve them made. Overall findings are presented in a concluding chapter. Appended is a 5-page bibliography (1960-83); 47 tables are included in the text.