Work

Challenges in reintroducing fair market value to US public water/wastewater systems

Year: 2024

Type: article

Abstract: This paper analyses the debates around the shift in public water/wastewater systems valuation from a book value-based system towards a market-driven exchange approach, ‘fair market value’ (FMV). FMV legislation has been introduced in the past decade in 12 additional states. What is driving this shift in state policy and what does it mean for our understanding of value? Based on a review of the FMV acquisition process we explore the debates around this shift in water/wastewater system valuation drawing on historical court cases, two recent acquisitions and a review of public utility commission documents, legislative transcripts, court cases and statutes.

Source: International Journal of Water Resources Development

DOI: 10.1080/07900627.2024.2400491

Authors: T. J. McKiernan, Mildred E. Warner

Institution: Cornell University

Language: English

Topic: Water Governance and Infrastructure

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDG: Clean water and sanitation

Open Access status: hybrid

Funders: U.S. Department of Agriculture, National Institute of Food and Agriculture