Public Utility Valuation for Purposes of Rate Control

By John Bauer; Nathaniel Gold et al. | Go to book overview

AUTHORS' PREFACE

PUBLIC utility valuation for rate making has been discussed in numerous books and articles for a quarter of a century. Notwithstanding the extensive literature, there is no comprehensive treatise in a single volume of moderate size. No one book had covered the subject with reasonable adequacy from the standpoints of law, economics, administration and public policy. Such a volume has been sorely needed not only for groups professionally concerned with regulation, but also for classroom use, for public officials, and for people interested in problems and policies of public control.

This book seeks to meet the particular need. In three integrated parts, it embodies the economic and legal fundamentals, as well as the practical and procedural aspects of valuation, and gives special regard to objectives, policy and administrative requirements of public control.

Part I sets forth the historical development of the valuation concept. It presents a correlation between the economic forces and the political and legal trends as shown in legislative and judicial action.

Part II is procedural in scope. While it is mainly descriptive, it is also analytical and critical. Its aim is to make clear both the practical methods pursued and the legal bases of valuation technique as applied to the principal classes of property. It places emphasis upon conceptual clarification, policy, and administrative standards.

Part III presents a general critique of the present system of rate regulation and offers suggestions for effective revision. It centers on the requirements of a proper rate base both as to effective rate making and as to the broader aspects of public control.

The book has been written primarily from the standpoint of

-xi-

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