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PSC Wins Tap Fee Argument
Money lent by the Water Development Authority to a public service district was to be used to build a public sewer system. The district could not make payments on the loan, so the authority asked the Public Service Commission (PSC) to impose a higher tap (connection) fee to rectify the district's financial problem. The district filed a general rate case seeking a rate increase and increased tap fee. The judge approved a $2,000 tap fee and an 11 percent rate increase. However, the PSC reduce the tap fee to $250, stating a policy that tap fees were not to be cost‐based because this would discourage people from using a sanitary sewer system. Later, the authority directed the district to immediately increase its tap fee to $2,750. The district complied by filing a petition with the PSC, which was rejected. The authority then filed this petition with the state appellate court, seeking to force the PSC to grant the increase.
PSC Wins Tap Fee Argument
Money lent by the Water Development Authority to a public service district was to be used to build a public sewer system. The district could not make payments on the loan, so the authority asked the Public Service Commission (PSC) to impose a higher tap (connection) fee to rectify the district's financial problem. The district filed a general rate case seeking a rate increase and increased tap fee. The judge approved a $2,000 tap fee and an 11 percent rate increase. However, the PSC reduce the tap fee to $250, stating a policy that tap fees were not to be cost‐based because this would discourage people from using a sanitary sewer system. Later, the authority directed the district to immediately increase its tap fee to $2,750. The district complied by filing a petition with the PSC, which was rejected. The authority then filed this petition with the state appellate court, seeking to force the PSC to grant the increase.
PSC Wins Tap Fee Argument
01.06.1996
1 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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