A municipality or corporation that provides a public utility service may set:
- utility rates; and
- discounts, or additional charges on overdue amounts.
These items must be approved by the LGC.
The LGC’s approval is based on the following criteria:
- that rates are equitable to all users; and
- revenue generated by the utility is sufficient to offset all expenses including maintenance and debt retirement resulting from borrowing for capital utility projects.
The intent is to have a self-sustaining utility and create a reserve for maintenance and future capital projects.