Utility Need Not Obtain Consent Before Extending Water Service: Fid-Bau Portal

Utility Need Not Obtain Consent Before Extending Water Service

The Water Works and Sanitary Sewer Board of the City of Montgomery, Alabama operated the water and sewer systems for the city within the city's corporate limits. The East Montgomery Water, Sewer, and Fire Protection Authority was organized under state law to furnish water, sewer, and fire protection services and facilities within a designated area, which included portions of Eastern Montgomery County beyond the city's corporate limits. A developer of land east of the city requested that the city board extend its water and sewer lines to the developer's site. Since state law prohibited a municipality from “acquiring or duplicating” the services of a corporation organized under state law without the latter's consent, the board brought action, seeking a determination by the courts that it need not obtain the consent of the authority to extend its lines. The trial court ruled for the board. An appellate court concluded that “municipality,” as used in state law, was intended to address water systems owned and operated by cities and towns themselves, but not a public corporation like the water board, which was separate from the city it served. Thus, the court said, Montgomery's board was not required by law to obtain the consent of the authority before extending its water and sewer lines into territory outside the city limits.