Agenda Date:  June 27, 2001
Item Numbers:             2E and 2F

Dockets:  UR-010623 and UR-010706

Company Name: U. S. Ecology, Inc. 

Staff:   Layne Demas, Regulatory Services Division
   Ken Hua, Regulatory Service Division
Chris Vernon, Public Involvement Coordinator

Recommendation:

Dismiss the complaint and order suspending the filings in Dockets UR-010623 and 
UR-010706. 
 
Allow the proposed rates to become effective January 1, 2002.   

Approve the conditions set forth in the settlement agreement proposed by U.S. 
Ecology.

Discussion:

On April 30, 2001, U. S. Ecology, Inc., (Ecology) filed for a general rate 
decrease in Docket 
UR-010623 with a requested effective date of June 1, 2001.  Ecology failed to 
file a complete tariff so on May 10, 2001, Ecology filed the rest of the tariff 
with a request for LSN treatment requesting a June 1, 2001, effective date in 
Docket UR-010706.  Both dockets were suspended and no action taken on the LSN 
request on the May 30, 2001, open meeting.  Ecology is also requesting that the 
implementation dates of the tariff rates be effective January 1, 2001.

Ecology’s last general rate filing was approved in 1995 in Docket UR-950619.  
The final rates and rate design were a culmination of a long collaborative 
process that began in 1994.  A stipulation as to rate design and other 
ratemaking issues was reached by the collaborative group and approved  by the 
Commission in the Fifth Supplemental Order in Docket UR-950619.  Finally, a 
settlement agreement was reached to iron out the last remaining issues.  This 
was approved by the Commission in the sixth supplemental order of the same 
docket.  The end result of the whole process was a complete overhaul of the 
rate design,  increased rates to be effective January 1, 1996, and annual 
projections of expected LLRW (low-level-radioactive waste) for the four 
subsequent years.  Based on these annual projections, the rates are adjusted 
effective each January 1st to achieve the approved revenue requirement.  

The rate increase approved in Docket UR-010484 effective January 1, 2001, was 
the last of the rate adjustments under the 1995 agreement.  The rates proposed 
for January 1, 2002, and the five years following are subject to a new review 
by Commission Staff.  Staff has completed its review of Ecology’s books and 
records for the test period ended December 31, 2000.  Attachment A shows the 
effect of the proposed rates.  The proposed revenue requirement in this filing 
is approximately $5.2 million.  It is a reduction of approximately $.7 million 
from the 2001 revenue requirement.  Ecology has proposed to follow the 
conditions set forth in the original settlement agreement.  The original 
settlement agreement has been updated as shown in Attachment B.   

The main issues addressed in the settlement agreement are rate design, rate 
adjustment mechanism,  rate setting methodology, NORM/NARM Revenue,  and a 
moratorium on general rate filings.  Ecology presented this updated settlement 
agreement to the generators in the hopes there would be unanimous acceptance of 
the proposal.  There has not been any written opposition to applying the 
conditions of the settlement agreement received to date.  

Staff recommends the Commission dismiss the Complaint and Order Suspending the 
filings and allow the proposed rates to become effective January 1, 2002, for 
Dockets UR-010623 and 
UR-010706.   Staff also recommends the Commission approve the conditions of the 
settlement agreement.