§ 15-7-602 — Extension of system; outside corporate limits; rates; existing contracts; controversies; appeal

(a) All cities and towns owning their municipal water
system or plant may enter into agreements with customers whose
lands lie outside the corporate limits to supply water for their
use and needs. The water system may be extended and maintained
beyond the corporate limits only if it is economically feasible
in the opinion of the governing body. The governing body may
finance the extension and maintenance of the water system
through revenue bonds or other means granted by law for
financing of its water system and improvements. A one-time
connection fee reasonably calculated to permit recovery of a
proportionate share of the municipality's infrastructure cost
necessary to treat and convey the water may be charged. A one-
time fee may also be charged to recover reasonable expenses
incurred by the public entity in determining the actual costs of
treating and delivering water to the point of connection. Any
charges for special services such as customer's line maintenance
shall be in addition to the water rate. The rate established for
use of water pursuant to this section is as follows:
(i) Notwithstanding any other provision of this
section, a city or town whose water supply system is funded in
whole or in part by state grants or loans which at any time
after April 1, 1999 or later, enters into a new contract or
extends an existing contract to supply water to customers
outside its corporate limits shall in establishing rates be
limited to the actual costs of providing and delivering water as
defined by paragraph (ii) of this subsection, except as
otherwise provided by W.S. 15-7-407;
(ii) For customers outside their corporate limits
beginning April 1, 1999, where the city or town is a recipient
of state grants or loans, and except as otherwise provided in
W.S. 15-7-407, the established water rate shall not exceed the
actual costs of providing and delivering water to the point of
connection to the city's or town's water system. Prior to
December 1, 1998, or where the city or town is not a recipient
of state grants or loans and except as otherwise provided in
W.S. 15-7-407, the established rate shall be applied uniformly
and shall not exceed two (2) times the established rate within
the corporate limits. The governing body of the city or town
may establish one (1) or more unincorporated service areas in
each of which an average water rate may be used for all
customers. As used in this paragraph, "actual costs of providing
and delivering water" shall include a proportionate share of the
following costs related to the water system:
(A) Fees, interest charges and principal
payments on all bonds issued and other indebtedness incurred to
construct, purchase or improve the utility;
(B) Salaries and wages of employees;
(C) The cost of materials, supplies, utilities
and outside services;
(D) Other costs directly related to the delivery
system;
(E) The cost for providing and maintaining a
depreciation fund, a fund for emergencies and a fund for
acquisition and development of new water rights and water
sources;
(F) Administrative and overhead expenses; and
(G) The cost of acquiring, transporting,
processing and treating water.
(b) If requested by the party seeking water service from
the city or town and upon approval of the city or town,
subsection (a) of this section shall not apply if the ratio of
the rate charged to customers outside the corporate limits of
the city or town to the established rate within the corporate
limits are less than one and one-quarter (1.25) to one (1).
(c) The provisions of this section are not subject to
certificates of public convenience and necessity of the public
service commission. However, if there is a controversy between
the municipality and a consumer outside the corporate limits of
the municipality with regard to the establishment of rates,
maintenance or servicing in a manner other than as contracted
for or as provided in this article, the public service
commission may review the matter in controversy, hold hearings,
take testimony and make recommendations. The commission's
recommendations may be appealed to the district court pursuant
to the provisions of the Wyoming Administrative Procedure Act.
The ultimate prevailing party shall be awarded a just and
reasonable attorneys fee.