Premium
Customers Have No Property Interest in Rates
Publication year - 1991
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1991.tb07095.x
Subject(s) - appeal , constitution , public interest , law , due process , business , due process clause , property rights , public administration , political science , common law , municipal law
In 1985, the Philadelphia Water Department notified the city council and general public of a proposed change in water and sewer rates for the period Jan. 1, 1986, through June 30, 1987. The department agreed to fund up to $75,000 of the expenses of the Association of Community Organizations for Reform Now and the Consumer Education Protective Association (CEPA) for adequate representation of the public in the proceeding. After extensive hearings, the water commissioner issued a determination that increased water rates by nearly 23 percent for residential customers. After an appeal, the trial court modified the increase to 18 percent. On appeal, CEPA argued that the due process rights of water customers were violated by the commingling of functions by the water commissioner. But the court said that federal courts have consistently held that ratepayers do not have a sufficient property interest in rates to invoke the procedural due process protections of the Fourteenth Amendment to the US Constitution.