What is the test for fair and reasonable classification of water users?

California, United States of America


The following excerpt is from Hansen v. City of San Buenaventura, 233 Cal.Rptr. 22, 42 Cal.3d 1172, 729 P.2d 186 (Cal. 1986):

It is well established that " 'a utility may, without being guilty of unlawful discrimination, classify its customers or patrons upon any reasonable basis....' " (Durant, supra, 39 Cal.App.2d at p. 139, 102 P.2d 759; see Toward Utility Rate Normalization v. Public Utilities Commission (1978) 22 Cal.3d 529, 543-544, 149 Cal.Rptr. 692, 585 P.2d 491; Kennedy v. City of Ukiah (1977) 69 Cal.App.3d 545, 553-554, 138 Cal.Rptr. 207.) The trial court found Ventura's three-tier classification scheme to be fair and reasonable. Plaintiffs, however, objected to Ventura's three-tier classification scheme based on what it perceived to be a feigned distinction in treating users of nonpotable, untreated water as a separate class.

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