Municipal Corporations—Competition Between Public Utilities

A Public Utility District (P.U.D.), organized in 1937 and including the Town of Newport in its territory, in June 1949 purchased the properties of a public service corporation which supplied the Town of Newport and the surrounding area with electric power. The P.U.D. thereafter performed this service. In July 1949, the Newport City Council proposed that the city acquire its own power system. An election was conducted which favored the proposal.

Action by the P.U.D. to enjoin issuance of revenue bonds by the Town of Newport to finance the proposed acquisition. Judgment for the Town of Newport. On appeal, that part of the judgment holding the election valid was reversed, but the Court declared by way of dictum that a town or city may, after a P.U.D. has installed authorized utilities, enter into competition with the P.U.D. Public Utility District No. 1 v. Town of Newport, 38 Wn. 2d 221, 228 P. 2d 766 (1951).