Problem
The City of Cherokee Hills is adjacent to a freeway leading to a nearby metropolitan area and has grown rapidly from a small village to a city of 75,000. Its population is expected to double every 10 years in the foreseeable future. The city has owned and operated the local electricity generation and distribution system since its inception many years ago and has never charged itself for electricity consumption. The newly employed comptroller of Cherokee Hills seeks your advice in this regard.
In your initial post, address the following:
1. What do you advise the comptroller in this situation?
2. What is your response based on in terms of governmental fund accounting rules?