(COLDWATER) - A class-action lawsuit challenging utility fees charged by the City of Coldwater is scheduled for a key court hearing Thursday.
The lawsuit was filed by Coldwater resident Jason Mate and alleges the Coldwater Board of Public Utilities has overcharged electric customers by calculating a 6.5 percent charter fee using gross revenue rather than gross income.
The suit claims the practice has generated more than $12 million for the city's general fund and costs electric customers about $3 million annually.
City officials dispute the allegations and argue the payments are required under Coldwater's voter-approved 1960 city charter.
In April, Michigan's State Court Administrator's Office appointed Calhoun County Circuit Judge John Hallacy to preside over the case. Hallacy will conduct Thursday's hearing by Zoom and consider the city's request to dismiss the case.
A ruling in the city's favor could end the lawsuit. If the motion is denied, the case could continue through the courts for months or even years.