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Court Upholds Reasonableness of Water Rates
Novi, Michigan, which was purchasing water from the municipal water utility in Detroit, Michigan, challenged the reasonableness of Detroit's charges. In a decision of the state Court of Appeals reported in the October 1988 JOURNAL, Novi succeeded in its challenge. However, the state supreme court recently reversed the Court of Appeals ruling, holding that the concept of reasonableness still applied in determining whether a particular rate or rate‐making method complied with the utility basis of rate‐making for purposes of returning rates to be charged by a publicly owned utility for service to customers outside its corporate limits.
Court Upholds Reasonableness of Water Rates
Novi, Michigan, which was purchasing water from the municipal water utility in Detroit, Michigan, challenged the reasonableness of Detroit's charges. In a decision of the state Court of Appeals reported in the October 1988 JOURNAL, Novi succeeded in its challenge. However, the state supreme court recently reversed the Court of Appeals ruling, holding that the concept of reasonableness still applied in determining whether a particular rate or rate‐making method complied with the utility basis of rate‐making for purposes of returning rates to be charged by a publicly owned utility for service to customers outside its corporate limits.
Court Upholds Reasonableness of Water Rates
Journal ‐ American Water Works Association ; 82 ; 20a-20
1990-03-01
1 pages
Article (Journal)
Electronic Resource
English
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