Agenda Date: December 29, 1999 Item Numbers: Dockets: TG-991856, TG-991857, and TG-991858 Company Names: Rabanco Ltd & Rabanco Recycling, Inc., d/b/a Rabanco Companies, G-12 (SeaTac) Fiorito Enterprises, Inc., & Rabanco Companies, d/b/a Kent Meridian Disposal Company, Kent Disposal, Meridian Valley Disposal, G-60 Rabanco Ltd & Rabanco Recycling, Inc., d/b/a Rabanco Companies, G-12 (Eastside) Staff: Bob Colbo, Transportation Program Staff Recommendation: Suspend the filings for the above-named companies and dockets, and grant temporary rates. Discussion: On November 30, 1999, the above companies, all under common ownership and control, filed proposed tariff revisions naming revised residential and multi-family deferred recycling credits to become effective January 1, 2000. Docket TG-991858 for Eastside also contains a supplement increasing the city of Clyde Hill’s utility tax rate up to 11.11 percent. SeaTac serves in southern King County west of Interstate 5 in and around SeaTac Airport. Kent-Meridian serves southeastern King County from Kent to Auburn. Eastside serves on the east side of Lake Washington from Bellevue north to the Snohomish County line. Existing credits expire December 31, 1999, and these filings are a part of the normal annual review of the value of the commodities collected in the carriers’ deferred recycle programs and the resulting impacts on the net charges customers pay for the service. The credit (the commodities have value) is the sum of the estimated future value of commodities (based on the current three month average) plus an adjustment for any differences between what was estimated the prior year and subsequent actual results. For these filings, the carriers have elected to base their future estimate of commodity value using actual results obtained over the last twelve months, not the most recent three month activity. The resulting credits to customers, while larger than current credits, are less than would be the case of using the more recent three month data. The three month average approach is the method used by all other carriers with deferral programs. It is the approach favored by the Staff and has been approved by the Commission in various orders issued to other carriers in prior deferred recycle dockets. TG-991856, TG-991857, and TG-991858 December 29, 1999 Page A representative sample of residential curbside recycle present, proposed, and Staff suggested credits follows: Staff Present Proposed Suggested SeaTac Disposal Base Amount $0.65 $0.78 $1.21 Def’d Adjustment -0.02 0.11 0.11 Net Credit 0.63 0.89 1.32 Kent-Meridian Disposal Base Amount $0.86 $0.95 $1.41 Def’d Adjustment -0.04 0.06 0.05 Net Credit 0.82 1.01 1.46 Eastside Disposal Base Amount $1.16 $1.29 $2.05 Def’d Adjustment -0.11 0.08 0.08 Net Credit 1.05 1.37 2.13 It is therefore recommended that the Commission suspend the filings for the above-named companies and dockets, and grant temporary rates.