Agenda Date:    March 29, 2000
Item Numbers:

Dockets:  TG-000423, TG-000424, and TG-000425

Company Names: Waste Management of Washington, Inc.
   f/k/a Washington Waste Hauling and Recycling, Inc.
   d/b/a Waste Management - Sno-King (G237)
   d/b/a Waste Management - Northwest (G-237)
   d/b/a Waste Management - Rainier (G-237)

Staff:           Layne Demas, Transportation Staff

Recommendation:

Issue a complaint and order suspending the above-named companies and dockets.

Grant the proposed rates on a temporary basis effective April 1, 2000, on less 
than statutory notice.

Discussion:

On March 21, 2000, the above companies, all under common ownership and control, 
filed proposed tariff revisions naming revised residential and multi-family 
deferred recycling credits to become effective April 1, 2000. 

Sno-King  serves Northeast King County North of Interstate 90 up to the 
Snohomish County line.  Northwest serves in Eastern Snohomish County and a 
small portion of Northern King County.  Rainier serves in King County south of 
Interstate 90 and East of State Route 167. 

Existing credits expire March 31, 2000. These filings are a part of the normal 
annual review of the value of the commodities collected in the carriers’ 
deferred recycle programs and the resulting impacts on the net charges 
customers pay for the service. The credit (the commodities have value) is the 
sum of the estimated future value of commodities (based on the current three 
month average) plus an adjustment for any differences between what was 
estimated the prior year and subsequent actual results.

For these filings, the carrier has elected to base it’s future estimate of 
commodity value using actual results obtained over the last twelve months, not 
the most recent three month activity.  The resulting credits to customers, 
while larger than current credits, are less than would be the case of using the 
more recent three month data.  The three month average approach is the method 
used by staff and is all other carriers with deferral programs. It is the 
approach recommended by Staff and has been approved by the Commission in 
various orders issued to other carriers in prior deferred recycle dockets.   
The proposed departure from 3 months to 12 months is due to a current suspended 
filing by another carrier, seeking a 12 month measurement period.   The outcome 
of the currently suspended filing will determine the outcome of these filings.

A representative sample of residential curbside recycle present, proposed (12 
month), and Staff methodology (3 months) credits follows:
    Staff
  Proposed Methodology
 Present (12 month) (3 month) 
Sno-King
     Base Amount $1.46 $1.99 $2.67
     Def’d Adjustment -0.59 0.57 0.61
     Net Credit 0.87 2.56 3.28

Northwest

     Base Amount $1.01 $1.47 $1.96
     Def’d Adjustment -0.92 0.49 0.51
     Net Credit 0.09 1.96 2.47

Rainier

     Base Amount $1.27 $1.75 $2.17
     Def’d Adjustment -0.71 0.38 0.40
     Net Credit 0.56 2.13 2.57


It is therefore recommended that the Commission suspend the filings for the 
above-named companies and dockets, and grant the proposed rates on a temporary 
basis per LSN order effective April 1, 2000.