Oneida Charter Township v. City of Grand Ledge

This case requires us to decide whether MCL 123.141, which authorizes municipalities to contract for the sale of water outside their territorial limits, mandates that rates charged for the sale of water directly to extraterritorial individual inhabitants of a “contractual customer” be equal to the actual cost of service. The court below determined that it does not, and plaintiffs now appeal as of right. We disagree and hold that a municipality selling water extraterritorially directly to individual inhabitants of a “contractual customer” must charge actual costs pursuant to MCL 123.141(3).

I.…