Excerpt from Value for Rate-Making At the present time, probably the majority of valuations of public utility property are being made in connection with a consideration of rates. But different authorities still hold various and conflicting views as to the principles involved in determining the basis of value for rate-making. With the hope of helping define methods used and standardizing practice in valuation procedure, the author brought out, four years ago, the first book that had appeared relating to the general subject, "The Valuation of Public Utility Properties." Since that time, several other books have been published, many papers written and much discussion elicited, due to the development of a rapidly increasing general interest in the subject of valuation of utility properties, for the purposes of purchase or sale, rate-making, taxation or capitalization. Despite this activity, it is a disappointment to observe that terms are still used inexactly and opinions are almost as diverse and numerous as there are writers. The purpose of this book is an attempt to further emphasize at least three principles that seem to the author to be essential in determining the fair value for use in fixing rates. First. - To conform to the rulings of the courts the basis for rate-making should be the fair present value of the property used, regardless of the amount of the original investment in utilities established previous to the present public regulation regime. Second. - Present value for rate-making is obtained by making deduction for absolute depreciation only; ignoring theoretical depreciation. Absolute depreciation being that deterioration which is in evidence, existing and determined by inspection. Theoretical depreciation being estimates only, based on assumptions and computations. Third. - Practically every utility property includes certain intangible non-physical elements, which should be evaluated and allowed in addition to the material, sensible elements. The value of the non-physical parts may vary from a few per cent. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works."

It is the purpose of this study to show how the rate-making rule and its procedure were developed, to consider the difficulties that were experienced under this rule, to discuss the new methods of rate making that commissions used during a period of rapid fluctuation in prices, and to offer a reasonable solution for the rate-making problem. Originally published in 1937. A UNC Press Enduring Edition -- UNC Press Enduring Editions use the latest in digital technology to make available again books from our distinguished backlist that were previously out of print. These editions are published unaltered from the original, and are presented in affordable paperback formats, bringing readers both historical and cultural value.

Value for Rate-Making is a technical resource for anyone interested in the economics of rate-making. In this book, Henry Floy provides a detailed analysis of the principles behind rate-making, with a focus on the value of goods and services. This book is an invaluable resource for students and professionals in the field of economics. This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work is in the "public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

With appendices.