Agenda Date:                   June 28, 2000
Item Number:
Docket:                    UW-000546
                          
Company Name:            North Bainbridge Water Company, Inc.
Staff:                              Danny P. Kermode, Revenue Requirements 
Specialist
                             Penny Hansen, Public Involvement Coordinator
                             Tani Thurston, Consumer Program Specialist
                                   
Recommendations: 
Dismiss the Complaint and Order Suspending the Tariff Revisions in Docket 
UW-000546 and allow the revised rates to become effective on June 29, 2000. 
Discussion: 
On April 10, 2000, North Bainbridge Water Company, Inc., (North Bainbridge) 
filed for a general rate increase which proposed to increase annual revenues by 
$107,897 or 22%. Test year water service revenue of $495,753 would be increased 
to $603,640. The Company has filed revised rates that would increase revenues 
by $81,189 or 16%. North Bainbridge had its last rate increase in 1998. North 
Bainbridge serves approximately 1,450 customers within the City of Bainbridge 
Island.
North Bainbridge is requesting the increase to recover costs associated with 
its capital improvement program which includes main replacements, line looping, 
and provision of fire flow capacity. North Bainbridge also cites increased 
expenses related to operating (salaries, chemicals and testing, rents and 
taxes) and maintaining the water system in an increasing regulatory environment 
and allowing the company a return on major capital projects recently completed.
The Commission has received nine letters opposed to this request. The letters 
express concerns about the size of the requested increase, the proposed rate 
structure, and water quality. The Commission received two consumer complaints 
regarding water quality issues. These complaints have been closed.
Under the Company's current tariff, the company has a three block inverted rate 
structure. The company has proposed a five block inverted structure. The 
average customer's monthly usage for 1999 has been approximately 846 cubic feet 
(6,330 gallons). The revised inverted rate structure is designed to mitigate 
the impact of the rate increase on the average consumer and still promote 
conservation.
The current, proposed and revised rates are provided below:
Monthly Rates:                                             
Current                  Proposed         Revised
Ready to Serve Charge                           $10.00                  
$22.00             $17.50
Metered Rates         
Monthly Minimum                                    $21.55         
                                                     (includes 500 CF)
Next 500 CF (501-1,000 CF)                     $1.00 per 100 CF
Next 2,000 CF (1,001-3,000 CF)               $2.00 per 100 CF
Over 3,000 CF                                            $4.00 per 100 CF
                                                             
Proposed               Revised
Monthly Minimum                                    $22.50                  
$21.85                  
                                                                   (includes no 
water) (includes no water) 
                                                                                
 Revised per                   Revised 
Per 100 CF                                                                      
         100 cubic foot                per cubic foot
First 1,000 CF (1-1,000 CF)                       $1.00                     
$0.75                            $0.0075
Next 1,000 CF (1,001-2,000 CF)                $2.00                    
$2.00                            $0.0200
Next 1,000 CF (2,001-3,000 CF)                $4.00                    
$4.00                            $0.0400
Next 1,000 CF (3,001-4,000 CF)                $6.00                    
$6.00                            $0.0600
Over 4,000 CF                                             
$8.00                    $8.00                            $0.0800
Therefore, Staff recommends that the Commission dismiss the Complaint and Order 
Suspending the Tariff Revisions in Docket UW-000546 and allow the revised rates 
to become effective on June 29, 2000.