Agenda Date: July 31, 1998
Item Number: 

Docket:   TG-980825
 
Company Name: Lakewood Refuse Service, Inc., G-18

Staff:   Nicki Johnson, Revenue Requirements Specialist
   Penny Hansen, Public Involvement Coordinator
          
Recommendation:

Approve the revised filing by Lakewood Refuse Service in Docket TG-980825 with 
staff recommended rates to become effective August 1, 1998.  And issue an order 
approving the company’s request to establish a deferred accounting methodology 
for the sale of recycle commodities.

Discussion:

On June 15, 1998, Lakewood Refuse Service filed for increased solid waste 
rates. Lakewood Refuse Service provides service to over 11,000 customers in the 
cities of Lakewood and University Place.  Only the 215 customers in University 
Place are regulated.
The rest of the customers are in the city of Lakewood and the company serves it 
under contract.

The Commission has not received any letters concerning the filing. 

Present rates have been in effect since April 1995, at that time, all the 
customers of the company were regulated.  The proposed solid waste rates 
generate revenues of approximately $25,000 (17.12% increase).  Staff 
recommended to the company, and the company agreed, that for this case and in 
the future, that Lakewood Refuse Service should adopt the rates of Pierce 
County Refuse plus the 2.56 percent University Place utility tax.  Lakewood 
Refuse has few regulated customers, less than two percent of the total 
company.  Pierce County Refuse operates in the area surrounding Lakewood and is 
under common ownership with Lakewood Refuse Service.  Revised rates generate 
solid waste revenues of approximately $18,000 (12.31% increase).  Customers in 
the cities of Lakewood and University Place, both of which are serviced under 
contract, have higher rates than the revised rates recommended by staff.
 
Additionally, Lakewood Refuse Service proposes to establish in its residential 
recycling program a deferred accounting methodology for the sale of recycle 
commodities.  As in the solid waste rates, the company proposes to adopt the 
same rates as Pierce County Refuse. The value per customer for the sale of 
commodities is $.50 which is the rate approved for Pierce County Refuse on July 
1, 1998. 

The company filed substitute pages on July 17, 1998.

The following table is a sample of current, proposed and staff revised rates.  
Residential rates do not include the recycle component.

   Current Proposed Revised
Residential
Monthly rate for weekly
pickup
 Minican $8.06 $ 9.50 $ 8.77
 One Can  10.29    12.00  10.82
 Recycle rate  2.12    2.12  2.26
 Commodity credit      ----            ----    .50

Commercial per Pickup
 One Yard 9.81 11.50 10.34
 Two Yard 17.94 21.25 19.38


Docket TG-980825
July 31, 1998
Page 1
Staff recommends the Commission approve the revised filing in Docket TG-980825 
to become effective August 1, 1998, and that the Commission issue an order to 
approve the company’s request to establish a deferred accounting method for the 
sale of recycle commodities.