Hite v. Public Utility District No. 2

Facts of Case

At issue in this case is whether a public utility district may contract with its customers for a lien to secure the payment of electricity charges. We hold that it can, and reverse the trial court and the Court of Appeals.

On June 6, 1975, Donald and Mary Hite, plaintiffs herein, entered into an "Irrigation Power Agreement and Right-of-Way Easement" with Public Utility District No. 2 of Grant County (District). Under the agreement, the District agreed to provide electrical service so that plaintiffs could irrigate their farm. By signing the agreement, plaintiffs avoided paying…