Agenda Date:  March 27, 1996
Item Number:

Docket:   UW-960219
Company Name:  Long Lake View Estates Water Company 2-5

Staff:    Jim Ward, Revenue Requirements Specialist
    Al Jones, Utility Engineer

Recommendation:

Approve the filing in Docket UW-960219.

Discussion:

On February 27, 1996, Long Lake View Estates Water Company 2-5, (Long Lake 
View) filed for a Facilities Charge applicable to all applicants served by or 
through the Fairwood line extension, to become effective April 1, 1996.  The 
proposed charge will produce revenue of approximately $16,500 depending upon 
the number of customers that elect to remain on the system and how many of the 
potential lots become customers.  This revenue will be used to offset the cost 
of a line extension to provide service to the Fairwood customers.

Long Lake View - Fairwood extension will serve approximately 11 current 
customers and has the potential for up to 26 customers. 

Long Lake View recently acquired a failed water system named Fairwood.  The 
Fairwood water system has one well, one storage tank, and distribution lines to 
serve unmetered customers.  Long Lake View plans to abandon the well and 
storage tank and is installing a line extension of approximately 3,000 feet to 
intertie and serve the Fairwood system.  The anticipated total cost of $42,000 
will be funded partially by the Facilities Charge (Fairwood customers only) and 
the remainder invested by the company.

Residents of the Fairwood system have been provided notice that service will be 
terminated after one year (July 1, 1997) if they do not connect to the 
company's water system and pay the Facilities Charge.

Specific details of the tariff are as follows:
         Proposed
1996 Facilities Charge per residential connection   $  1,500
   or
1996 Facilities Charge per month payment    $  35.00
 (4.3 year pay off at 8% interest)

Docket: UW-960219
March 27, 1996
Page 1


Service Connection Charge      $ 460.00
 (Waived until July 1, 1996)

Monthly Rate Schedule:      Current
3/4 inch Metered Residential
 first 500 cubic feet      $14.75
 per 100 cubic feet          .65

         Proposed
Unmetered Residential (until meters installed)    $14.75


The Commission has not received any comments from customers on this request.

Department of Health (DOH) has said the Fairwood water system can not meet DOH 
standards.  Long Lake View's water system is adequate to serve current 
customers and the additional customers of Fairwood.  Long Lake View and DOH 
engineer have been working to resolve Fairwood's concerns for over a year.

Long Lake View has demonstrated a willingness to extend service to surrounding 
systems and the proposed charges appear to be fair, just, reasonable, or 
sufficient.  
Therefore, staff recommends the Commission approve the request as filed in 
Docket UW-960219.