- 6 - facility upgrade and compared these expenses to the projected revenue of the sewer line by using a formula he called a "life cycle cost analysis". Imperial is a regulated utility and its revenue from sewage collection and treatment is regulated by the PSC. At the time petitioner decided to construct the sewer line, the PSC tariff provided for a $400 "contribution in aid of construction fee" and a monthly service charge of $18 for each mobile home. The $400 fee was a one-time fee charged to occupied mobile home pads, regardless of the existence of a sewer line. Imperial was permitted to charge customers for the cost of a sewer line connecting the customers' property to petitioner's treatment facility and the cost of upgrading that treatment facility to meet any increased waste flow. On March 11, 1988, Imperial entered into a contract entitled "Agreement for Sewer Service New Construction" (McArthy-Imperial agreement) with Mr. McArthy and Interstate. Pursuant to the McArthy-Imperial agreement, Imperial agreed to build a 2-1/2-mile sewer line extending from Brookshire through Interstate's property to the treatment facility, thereby allowing service to both properties. Imperial also agreed to upgrade its treatment facility to handle the anticipated increase in waste. The McArthy-Imperial agreement also provided for Mr. McArthy to pay Imperial $200,000 in "tap-on fees in accordance with the SewerPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011