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AWWA ACE94010
- Legal Aspects of Pricing
- Conference Proceeding by American Water Works Association, 01/01/1994
- Publisher: AWWA
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Rates set by a municipality must not be unreasonably discriminatory. It is not a problem if the rates are discriminatory as long as such discrimination or difference is reasonable. The fact that non-residential users of public utility service are subject to higher rates than those customers within the city limits does not alone prove the rate unreasonable and hence invalid. Rather, non-residents must show that discrimination is not based on cost of service or some other reasonable basis.