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Electric Utility Rates Encourage Large‐use Customers
Publication year - 1997
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.1551-8833.1997.tb08171.x
Subject(s) - revenue , law , mill , business , economics , political science , engineering , finance , mechanical engineering
Liberty Rice Mill and Garan Inc. were in the same classification for electric rates in Kaplan, Louisiana, paying 8.7 cents/kW‐h (2.4 cents/MJ). Garan, one of the largest employers in the city, threatened to relocate if its rates were not reduced. In 1989 the city adopted an ordinance that reduced Garan's rate from 8.7 to 8.0 cents and increased Liberty's rate from 8.7 to 9.4 cents. Liberty asked for the same consideration given Garan. The city refused, stating it could not afford the loss of revenue that would result if it gave both the same rate. Liberty sued, claiming unlawful discrimination. The trial court ruled for the city.