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Author      Title/Abstract      

Determining Financial Feasibility for a Reclaimed Water Enterprise
Author: William K. Ferry
Date: 4/384
Presented at the American Water Works Association Water Reuse Symposium III, San Diego, California, August 30, 1984

Nobody enjoys hearing about problems. But there is no question the most significant problem in using reclaimed water is its need to compete in price with an already established water system. There is an institutional restriction in the United States which limits the financial feasibility of many potential reclaimed water projects. Potable water systems are operated with a fundamental goal and mission providing the ratepayer a specified level of service at minimum cost. (This even applies to investor-owned utilities regulated under an original cost rate base standard, but does not necessarily apply when regulation occurs under a fair market value rate base standard, such as in Arizona.)