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Capacity Increase Fee Illegal
Burnt Store Hotel Inc. bought an existing hotel connected to the water and sewer system of the City of Punta Gorda, Florida. As a new utility customer, Burnt Store had to sign an agreement requiring it to pay a fee for increases in its average consumption. As the result of increased average consumption, the city billed Burnt Store $154,000. The city contended that increased water use required increased reserve capacity and that the capital expenditures necessary to provide this additional capacity should be paid for by new and additional users of that capacity. Burnt Store contended that the hotel was an existing business, no structural changes were made, and it had been continuously connected to the city's water and sewer system for more than 20 years. Burnt Store filed this suit contesting the bill. The trial court ruled for the hotel.
Capacity Increase Fee Illegal
Burnt Store Hotel Inc. bought an existing hotel connected to the water and sewer system of the City of Punta Gorda, Florida. As a new utility customer, Burnt Store had to sign an agreement requiring it to pay a fee for increases in its average consumption. As the result of increased average consumption, the city billed Burnt Store $154,000. The city contended that increased water use required increased reserve capacity and that the capital expenditures necessary to provide this additional capacity should be paid for by new and additional users of that capacity. Burnt Store contended that the hotel was an existing business, no structural changes were made, and it had been continuously connected to the city's water and sewer system for more than 20 years. Burnt Store filed this suit contesting the bill. The trial court ruled for the hotel.
Capacity Increase Fee Illegal
01.06.1995
1 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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