Economies of Size Among Municipal Water Authorities in Pennsylvania

Abstract

Water utilities are being subjected to progressively greater economic pressures. The demand for water is increasing, due to both a growing number of customers and rising per capita consumption. Consequently, many utilities are faced with declining reserves of water, necessitating additional investment to develop sources of supply. Frequently, new or enlarged facilities to treat, store and distribute the larger volume of water are required. Public policies, also, are promoting the extension or development of public water systems to serve sparsely populated suburban communities, small towns, and rural areas. All these changes affecting the demand for water, combined with rising construction costs, are causing water utility costs to skyrocket.