Abstract

Tri‐Community Water System provided water to about 1,900 members. The Paradise Trailer Park, comprising 35 mobile homes, had been a member since 1977. One Tri‐Community service line extended to Paradise's property line, where one meter measured the amount of water the park's occupants consumed. From there, separate lines owned by Paradise distributed water to individual homes. Paradise charged occupants a flat monthly fee. Tri‐Community, in turn, charged its members a flat monthly fee of $7 for the first 3,000 gal. used and billed on a graduated scale beyond that. In 1967, Tri‐Community adopted a “multiple user policy” under which Paradise was charged 35 separate flat fees of $7. Paradise challenged the rate structure but lost. However, the trial court found that Tri‐Community violated its own bylaws in instituting the rate change and the trial court decision was reversed.

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