BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application of  )
Mirrormont Services, Inc.   )  DOCKET UW-991801
for an Order Approving Tariff Revisions.)
 )  ORDER APPROVING
 )  TARIFF REVISIONS
 )
. . . . . . . ) 

 MEMORANDUM

On November 18, 1999, Mirrormont Services, Inc., (Mirrormont), filed with the 
Commission revisions to its currently effective Tariff WN U-1.  The tariff 
sheets affected are designated as:

Third Revision of Sheet No.  2, canceling 
Second Revision of Sheet No.  2, and

Original Sheet No.  24.

On November 18, 1999, Mirrormont Services, Inc., (Mirrormont) filed for general 
rates in the amount of approximately $4,800 (2.5 percent) of additional revenue 
per year.  The Company serves approximately 710 customers near Issaquah, in 
King County.

  The Company is completing its update to the Department of Health (DOH) 
required water system plan.  This plan is revised every six years and is used 
to provide a uniform process for water utilities to identify present and future 
needs, address those needs and demonstrate operational, technical, managerial, 
and financial capability to achieve and maintain compliance with all relevant 
DOH quality and quantity regulations.  Surcharge collections will be used for a 
loan repayment.  Any excess funds collected, due to growth, will pay additional 
loan principal.

Mirrormont=s last general rate increase was July 1998.  The average residential 
customer would see an increase of approximately $.50 per month ($6.00 
annually.)  The current and proposed rates are provided below:

Monthly Rate      Current Proposed
Water System Plan Surcharge       N/A  $   .50

The funds received from the surcharge will be deposited into a separate reserve 
account exclu-sively for the purpose of making loan payments for the water 
system plan.  This separate reserve account will be listed on all Company 
financial records and will be considered a cash account asset (NARUC account 
#127).  Expenditures from the reserve account will be treated as customer 
contri-butions for ratemaking purposes.  Mirrormont will provide quarterly 
reports and bank statements for the period that the surcharge is in effect.

FINDINGS

THE COMMISSION FINDS:

1. Mirrormont Services, Inc., a Washington business, is a public service 
company subject to the jurisdic-tion of this Commission under the provisions of 
Title 80 RCW.

2. As to form, the application herein, meets the require-ments of Title 80 RCW 
and the rules and regulations of the Commis-sion adopted pursuant thereto.

3. It appears, upon investigation, that the tariffs for water system plan 
surcharge are reasonable and consis-tent with the public inter-est and should 
therefore be ap- proved.

 O R D E R 

THE COMMISSION ORDERS:

1. Subject to the conditions of this order, it is hereby authorized that the 
filing herein filed November 18, 1999, will become effective January 1, 2000.

  2. The average residential customer would see an increase of approximately 
$.50 per month ($6.00 annually.)  The surcharge will expire January 1, 2006, or 
upon recovery of the loan principal ($18,000), plus interest charges and taxes, 
whichever occurs first.  Any excess funds collected, due to growth, will pay 
additional loan principal.

3. The funds received as a result of the surcharge will be deposited into a 
separate reserve account exclu-sively for the purpose of making loan payments 
for the water system plan.  This separate reserve account will be listed on all 
Company financial records and will be considered a cash account asset (NARUC 
account #127).  Expenditures from the reserve account will be treated as 
customer contri-butions for ratemaking purposes.

4. The Company will submit to the Commission quarter-ly reports of the separate 
reserve account and bank statements.  This report will consist of a Commission 
staff-approved Quarterly Report form.  Quarterly reports are to be filed 45 
days following the last Docket  UW-991801          Page 1
billing date of each quarter, starting with the quarter ending March 31, 2000, 
and continuing until notified by Commission staff letter to be no longer 
necessary or expiration of the affected tariff.

5. This order shall in no way affect the authority of this Commission over 
rates, service, or accounts, evaluations, esti-mates, or determination of cost 
or any matters whatsoever that may come before it, nor shall anything herein be 
construed as an acquies-cence in any estimate or determination of cost or any 
valuation of property claimed or asserted.

DATED at Olympia, Washington, and effective this 29th day of December, 1999.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




MARILYN SHOWALTER, Chairwoman



      RICHARD HEMSTAD, Commissioner



      WILLIAM R. GILLIS, Commissioner