City of Lima v. Public Utilities Commission

Citations

• 100 Ohio St. (N.S.) 416

Syllabus

<p>Public Utilities Commission — Jurisdiction — Gas rates —Municipal ordinance a contract, when — “Readiness to serve” charge not authorised, when.</p> <p>1. Section 4, Article' XVIII of the Constitution of Ohio, authorizes municipalities to contract with public utilities for their product or service to be furnished to the municipality or its inhabitants, and when such contract duly executed fixes the rate and charge for furnishing such product, the Public Utilities Commission of the state is not empowered to authorize such public utility to exact the payment of a rate or charge in excess of that agreed upon.</p> <p>2. Where a gas company enters into a contract with a municipality and thereby agrees for a term of three years to furnish gas to such municipality and its inhabitants at a rate and charge therein stipulated, it being further agreed that no meter rental shall be charged by the company, the exaction of a “readiness to serve charge” in addition to the rate agreed upon is violative of the terms of the contract and cannot be validated by an order of the Public Utilities Commission.</p>