Value for rate-making

Paperback | February 3, 2012

byHenry Floy

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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916. Excerpt: ... CHAPTER V COST OF REPRODUCTION Development of Theory.--A consideration of the conflicting views and many theories promulgated for determining value leads many a practicable mind to turn to actual cost in money as the proper measure of value. To the lay mind it would seem as if the basis for rates might well be made the amount of money expended for the benefit of the public. But it will be immediately recognized that a part of the money spent may have been expended recklessly, improperly, or for property which is no longer in existence. A common experience will indicate that cost does not necessarily indicate present value. Present value may, on the one hand, be much less than cost if property has been allowed to depreciate, has been injured by accident, exhausted by service or wrecked by mismanagement, on the other hand, it may be more than cost if property has increased in value through appreciation of real estate, improvement of operating conditions, superior management or desirable location. As a matter of fact the greater the separation in point of time, between cost and the date of valuation, the greater the difference may be between expenditure and value. When the date of cost and the date of value to be determined are the same, expenditure honestly and intelligently made is a fair measure of value. This latter consideration has lead to the very general acceptance of the cost of reproduction theory in determining the present value of any property. It is a method universally applicable for determining the existing or present-day value of utility property, because it furnishes an estimate of the cost of producing a like property at to-day's costs. "Reproduction cost is based upon the assumed recreation or substitution of an identical new plant at pres...

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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916. Excerpt: ... CHAPTER V COST OF REPRODUCTION Development of Theory.--A consideration of the conflicting views and many theories promulgated ...

Format:PaperbackDimensions:130 pages, 9.69 × 7.44 × 0.28 inPublished:February 3, 2012Publisher:General Books LLCLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0217414192

ISBN - 13:9780217414197

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