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From an economics point of view, it matters whether the water utility has a monopoly. If the people who would end up paying the higher rates have difficulty swi
by conistonwater 12y ago
From an economics point of view, it matters whether the water utility has a monopoly. If the people who would end up paying the higher rates have difficulty switching to a different competitor utility, then the incentive to invest in providing more water cheaper is not there. This is generally why many basic utilities, like water and electricity are highly regulated. I don't know much about California's water utilities though, so maybe the competition is in fact there.
- ethagknight 12y agoValid point, but you are implying market rate, or what someone is willing to pay for an item. I am merely suggesting that the water rate reflect the cost of goods sold, where that cost includes the implementation of a more robust and sustainable network to prevent bone dry water sources. No market gouging, just proper long term planning.