Dockets UW-981518
December 23, 1998
Page 1
Agenda Date:  December 23, 1998
Item Number:  

Docket:   UW-981518
Company Name:  Gamble Bay Water, Inc.

Staff:    Jim Ward, Revenue Requirements Specialist
Penny Hansen, Public Involvement Coordinator

Recommendation:

Issue Complaint and Order Suspending Tariff Revision in UW-981518, as filed by 
Gamble Bay Water, Inc.

Discussion:

On November 30, 1998, Gamble Bay Water, Inc., (Gamble Bay) filed with the 
Commission a tariff revision to add a Facilities Charge for residential 
customers. Gamble Bay serves approximately 250 customers located on 13 water 
systems on Bainbridge Island and near Poulsbo.

This tariff revision provides for Gamble Bay to establish a facilities charge 
(Schedule No. 11) for costs of well upgrades, installation of new 8 inch 
ductile iron piping, construction of new 100,000 gallon reservoir and easement 
rights. The total cost of upgrades and improvements is estimated to be 
$344,000.  The facilities charge loan portion would fund about $217,000.

Customer notice was not provided for this rate filing as potential applicants 
or customers are unknown.

 Facilities Charge    Current  Proposed 

Facilities charge - Schedule No. 11      ---   $1,850

The facilities charge amount would be treated as Contribution in Aid of 
Construction and would not be included in any future rate base calculations.  
Additionally, the company would provide quarterly reporting of funds received 
and monies spent for the system upgrades and improvements.

This filing is in conjunction with a new definition of the company's service 
area.  The service area is being defined as only those customers that the 
company is providing water too.  This definition is consistent with Commission 
Service Area as defined in WAC 480-110-021 (6).  The facilities charge would 
then apply to any new customer connecting to any water system owned by Gamble 
Bay.

The facilities charge monies will be used to repay a projected loan the company 
has applied for.  The loan is administered by the Washington State Public Works 
Board -Drinking Water State Revolving Fund Program.  This program provides low 
interest, long term loans for public works projects.

Monies from the loan will be used to acquire a tank site, construct a 100,000 
gallon reservoir and to intertie the Bucklin water system and the Vincent Road 
water system. Vincent Road water system is located near Kitsap County 
Landfill.  The soul source of water for this system is having problems with 
testing results.  The system is designed for nine (9) connections and is 
currently at capacity.  However, the system has water rights for up to 31 
connections.  Gamble Bay intends to intertie the two systems (resolving water 
quality issues) and transfer water rights to the Bucklin water system. By this 
transfer of water rights the company could fully utilize the 31 connection 
capacity.

The company has not demonstrated the cost associated with the plans for 
construction and staff recommends that the Commission Issue Complaint and Order 
Suspending Tariff Revision in UW-981518, as filed by Gamble Bay Water, Inc.