Water supply aspects of river authorities in Texas

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Title: Water supply aspects of river authorities in Texas
Author: Krishnamurthi, Sushma
Abstract: Price has been noted to be an important ingredient in any evaluation of future water demands , since it is a signal of cost administered by water wholesalers or retailers . The purpose of this study is to contribute to a better understanding of rates and ratesetting strategies adopted by the river authorities of Texas , and the relevance of economic efficiency for wholesale purveyors of water . Methods employed to accomplish the objectives include collecting sample water supply contracts , surveying rate structures , and surveying authorities' rate -setting objectives . In its current form the economic theory of pricing emphasizes price establishment by retail water suppliers . There are certain distinctions between wholesale suppliers and retail distributors of water that question the adequacy of the existing theory in its universal application . This calls for a different theory of pricing for wholesale suppliers of water . Therefore , an efficiency -seeking pricing theory for wholesale water purveyors is explored here . Out of the fifteen existing river authorities in Texas , ten have wholesale supply operations . This study finds that out of the ten authorities that have wholesale operations , some authorities charge the same uniform rate to all their customers , while some charge a different rate to each of their customers . The fact that some river authorities charge different rates to different categories of customers for the same water is considered economically inefficient . Another element that lends itself to economic inefficiency is the usage of the block rates . Through a questionnaire , the study finds that river authorities rank revenue sufficiency highest among six objectives pertaining to rate -setting processes . Legality is ranked second and economic efficiency is ranked third among these six goals . Though there are ten river authorities that supply water on a wholesale basis , only eight valid questionnaires responses could be used for the study . All river authorities involved with the wholesale supply of water commit most of their water supplies to municipal , agricultural , and industrial uses and customers through water supply contracts that contain legal agreements , which are dealt with before the river authority supplies the water to the customer . This study discusses the various similarities and differences between contracts of the ten river authorities that are involved in wholesale supply of water . Out of the ten river authorities , nine responded with their wholesale water supply contracts . One river authority responded with two contracts , therefore there were ten contracts that were studied .
URI: http : / /hdl .handle .net /1969 .1 /4443
Date: 2006-10-30

Citation

Water supply aspects of river authorities in Texas. Available electronically from http : / /hdl .handle .net /1969 .1 /4443 .

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