Sec. 7-222. Price.
Sec. 7-222. Price. (a) The price to be charged to persons or corporations for gas
or electricity shall be fixed and shall not be changed more often than once in three
months. Any change shall take effect on the first day of the month, and the new price
adopted shall, before the change takes effect, be advertised at least one month in some
newspaper published in the municipality where the plant is located and, if none is published therein, in some newspaper published in the county where the plant is situated.
Such price shall be fixed on a basis of not less than a net profit per year of five per cent
on the cost of the investment in plant made by the municipality and also depreciation
of the plant at not less than five per cent per annum of its cost, and the price shall not
be greater than to allow a net profit of eight per cent per annum to the municipality on
such cost. In fixing such basis on which to establish the price to be charged to persons
and corporations, the gas and electricity used by the municipality shall be charged to it
at cost. A sufficient deposit to cover the payment for gas or electricity for three months
may be required in advance from any taker, and the supply may be shut off from any
premises until all arrearages for gas or electricity furnished thereon are paid. After three
months' default in payment of such arrearages, all appliances for distribution on such
premises belonging to the municipality may be removed and after such removal shall
not be restored, except on payment of all such arrearages and a sufficient sum to cover
all expenses incurred by the removal and restoration, with the penalty which the municipality may impose in such cases.
(b) The provisions of this section shall not apply to the sale of compressed natural gas.
(1949 Rev., S. 719; P.A. 90-271, S. 4, 24; P.A. 99-286, S. 18, 19.)
History: P.A. 90-271 made a technical change; P.A. 99-286 designated existing language as Subsec. (a) and inserted
new Subsec. (b) re exemption for sale of compressed natural gas, effective July 19, 1999.
See Sec. 16-19f re rate design standards.
Cited. 95 C. 549.