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Water Rate Report Handled Issue 'Courageously'

February 08, 1990

As an educator of public utility economics, I was following the water rate issue. I read the "Water Rate Committee Report" (Times, Jan. 25). The report has all the ingredients of a public utility rate. Simply put, the utility rate is based on "Cost of Service Basis." The report, through its 10 recommendations, dealt with the rate issue courageously.

We (the people) should thank the members of the Rate Committee for a job well done as the committee, not the City Council, recommended for the Covina rate decrease when the city of Los Angeles approved a 5.9% water rate hike.

I do not understand why the council disliked the committee recommendation of investigating the market for liability insurance. The council accepted all of the committee recommendations except this one. Can the council member who proposed this resolution provide a reason for ignoring liability insurance issue?

RAM C. MUKHERJI

Covina

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