Newark (City) v. Newark Nat. Gas & Fuel Co.

Citations

• 25 Ohio C.C. Dec. 94

Syllabus

<p>GAS — MUNICIPAL CORPORATIONS.</p> <p>1. Municipal Power to Regulate Price of. Gas and Electricity, Exercise Presumed Fair.</p> <p>Municipal corporations, by virtue of Sec. 3982 G. C., authorizing councils to regulate the price gas and electric companies may charge consumers, are clothed with power to fix the maximum rate to consumers furnished and in the absence of proof to the contrary the presumption is that a municipal council in the exercise of this regulation acted with due regard to the rights of the consumer and furnisher.</p> <p>2. Court Determines Reasonableness of Gas Rate but does not Fix Rates.</p> <p>The power to regulate rates for gas and electricity furnished the public in municipalities under Sec. 3982 G. C. does not reside in the courts, the latter are limited to the judicial determination of the reasonableness of the rate fixed.</p> <p>3. Gas and Electric Utilities and Public have Reciprocal Rights in Gas Rates.</p> <p>Gas and electric light and power companies supplying private consumers are entitled to a fair return upon the reasonable value of that produced for the public convenience, and the public is reciprocally entitled to demand that no more be exacted from consumers than what is furnished is reasonably worth. In fixing such rates both corporation and public are to be equally considered.</p> <p>4. Value of Plant, Net Profits, Fair return Basis for Determining Reasonableness of Council Rates.</p> <p>Courts determining the reasonableness of rates fixed by ordinance of municipality for gas and electricity to the public, (1) are to ascertain at the time the value of the plant furnishing, (2) the total net profits under rates fixed, (3) whether such profits provide a fair return on the reasonable value of the plant.</p> <p>5. Relative Location to Local Gas Field Element in Determining Rate if Confiscatory.</p> <p>A municipality, situated substantially contiguous to a local natural gas field, considered in connection with the fact that for sev