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PSC Wins Tap Fee Argument
Publication year - 1996
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.1551-8833.1996.tb06563.x
Subject(s) - business , payment , tap water , finance , commission , public authority , service (business) , loan , law , political science , engineering , marketing , environmental engineering
Money lent by the Water Development Authority to a public service district was to be used to build a public sewer system. The district could not make payments on the loan, so the authority asked the Public Service Commission (PSC) to impose a higher tap (connection) fee to rectify the district's financial problem. The district filed a general rate case seeking a rate increase and increased tap fee. The judge approved a $2,000 tap fee and an 11 percent rate increase. However, the PSC reduce the tap fee to $250, stating a policy that tap fees were not to be cost‐based because this would discourage people from using a sanitary sewer system. Later, the authority directed the district to immediately increase its tap fee to $2,750. The district complied by filing a petition with the PSC, which was rejected. The authority then filed this petition with the state appellate court, seeking to force the PSC to grant the increase.