The City Council shall have the power and shall be authorized to regulate, by ordinance, the rates and compensation to be charged by all persons, companies, or corporations using the streets, alleys or public grounds in the City of Wake Village and engaged in furnishing water, gas, telephone, light, power, electricity or sewerage service to the public, and also to prescribe rules and regulations under which such commodities shall be furnished and service rendered, and to fix penalties to enforce such charges, rules and regulations. The governing body shall not prescribe any rate or compensation which will yield more than a fair return upon the fair value of the property used and useful in rendering such service to the public, but which return in no event shall ever exceed 8% per annum.