Agenda Date:  February 10, 1999
Item Numbers: 

Dockets:   TG-981565 & TG-981566 
Company Name: North Sound Sanitation, Inc., G-59
   Brem-Air Disposal Inc., G-38 

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

Issue a complaint and order suspending the filings in Dockets TG-981565 and 
TG-981566.

Discussion:

On December 15, 1998, North Sound Sanitation and Brem-Air Disposal filed for 
increased solid waste rates for residential and roll off customers.  Present 
garbage rates have been in effect since October 1997.  

North Sound and Brem-Air are under common ownership (Waste Management) and the 
rates for each company are identical.  The companies serve about 44,000 
customers in Kitsap County, including the Cities of Bremerton and Port Orchard 
which are served under contracts.
  
The Commission received 22 letters opposed to the filings.  Customers believe 
the proposed increases are excessive and not warranted.

The proposed solid waste rates would generate revenues of approximately 
$872,000.  Staff findings indicate that the company needs only about $100,000 
more in solid waste revenue to reach the target Lurito/Gallagher operating 
ratio of 91.25 percent.  
 
There are several issues on which the staff and the company disagree.  The 
principle reasons for the disparity in the staff and the company proforma 
revenue requirement are the amounts allocated to regulated ratepayers for 
corporate, regional, divisional and district overheads, the level of proforma 
wages and depreciation expense. 

The company would like more time to review the staff results.  The staff and 
the company are in continuing discussions to resolve the outstanding issues.

Staff recommends that the Commission issue a complaint and order suspending the 
filings in Dockets TG-981565 and TG-981566.