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Legal Aspects of Expanding Municipal Systems
Two issues of the greatest legal consequence to all water utilities, and specifically to the Waterworks Board of Trustees of the City of San Antonio, Texas, are discussed in this article. The first is the problem of main extension policy. In the past, the courts required that all utilities, whether privately owned or municipally owned, make their services available at the cost to the utility within the area of the utility's operation. The legal test was not whether a particular service was profitable to the utility, but whether or not the utility was earning a proper return on its investment. The article discusses several early cases that concerned disputes between a single customer and a water utility over the obligation of the utility to furnish service to a single customer. The second legal problem discussed in the article involves the expansion of a water system and protecting its perimeter. In water districts set up by state law, the city was required, upon the annexation of outlying suburban districts, to take over the water system, including the system's assets and liabilities. The problem of encirclement was thus created, forming a virtual ring shutting off the growth of the municipal system.
Legal Aspects of Expanding Municipal Systems
Two issues of the greatest legal consequence to all water utilities, and specifically to the Waterworks Board of Trustees of the City of San Antonio, Texas, are discussed in this article. The first is the problem of main extension policy. In the past, the courts required that all utilities, whether privately owned or municipally owned, make their services available at the cost to the utility within the area of the utility's operation. The legal test was not whether a particular service was profitable to the utility, but whether or not the utility was earning a proper return on its investment. The article discusses several early cases that concerned disputes between a single customer and a water utility over the obligation of the utility to furnish service to a single customer. The second legal problem discussed in the article involves the expansion of a water system and protecting its perimeter. In water districts set up by state law, the city was required, upon the annexation of outlying suburban districts, to take over the water system, including the system's assets and liabilities. The problem of encirclement was thus created, forming a virtual ring shutting off the growth of the municipal system.
Legal Aspects of Expanding Municipal Systems
Sawtelle, Robert (author)
Journal ‐ American Water Works Association ; 55 ; 979-984
1963-08-01
6 pages
Article (Journal)
Electronic Resource
English
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