Common use of Utility Rates Clause in Contracts

Utility Rates. One goal of this Merger is to achieve rate parity between the Town and all other constituent pieces of the Merged System. However, it is also the intent of this Merger that the City’s rate payers will not be required to subsidize the operating costs or known capital improvement costs of the Town Utility System, and the Town’s rate payers will not be required to subsidize the operating costs or known capital improvement costs of the City Utility System. To this end, the Parties acknowledge and agree that the rates and system development fees charged to the customers within the Town limits shall be set at a level sufficient to support the construction, operation, and maintenance of the Town Utility System and the Phase 1 and Phase 2 Capital Improvements for the Town Utility System, as listed in Article 4.