Composite Demand and Joint Supply in Relation to Public Utility Rates

Abstract

Discrimination in rate making commonly based on three principles. — Rates should conform to long-period normal values, 43. — Composite demand or joint supply are involved, 44. — The case of composite demand explained; overhead should be apportioned equally to all classes of service, 46. — The case of joint supply explained; overhead should be apportioned according to demand, 53. — How this principle can be applied in practice, 60.