THE VALUE OF WATER, PART 1--DEFINITIONS

In water utility rate making hearings and meetings,it is common to hear customer grumbling against rate increases because water they drink, like air they breathe, is perceived to be free. Why should I pay for water that is free? customers object.

If water is free, does it have "value"? In recent years, partially in response to such objections, some industry writers have urged water utilities to inform their customers of the "value of water". Some have gone further to claim that rates for water service should be calculated based upon the "value" of water service to customers, not upon the costs of service.

When applied to water, the word and concept of "value" is capable of many different definitions, sums objective, some subjective. In fact, efforts to describe the "value" of water can take on a metaphysical proportions. Without the particular context for use of the word, reference to the "value of water" in reality can itself become meaningless.

What is "value" and how can it be quantified? What are the possible contexts in which water has value? Does the term "value of water" refer to life;; or to economic activity; or to environment; or to history; etc.? How can value rate making for water service work? Does informing customers of the "value of water" provide any benefit?

In following postings, I will attempt to explore some of the possible meanings of the "value of water"; the contexts in which water may have "value"; whether "value of water" can be measured; and whether the term, in fact, is meaningful.