Agenda Date:  February 14, 2001
Item No.:  2D

Docket:   UW-010024

Company Name: Washington Water Service Company

Staff:   Danny P. Kermode, Revenue Requirements Specialist
Penny Hansen, Public Involvement Coordinator

Recommendation:

Issue a Complaint and Order Suspending the Tariff Revisions Filed by Washington 
Water Service Company in Docket UW-010024.

Discussion:

On January 9, 2001, Washington Water Service Company, (Washington Water) filed 
a revision to its currently effective Tariff WN U-1.  In its filing, the 
Company proposes an increase in rates totaling  $416,000 or a 11.8 percent 
increase in its annual revenue.  The Company serves approximately 15,000 
customers located in Pierce, Thurston, Kitsap, and Mason Counties. 

Washington Water cites increased costs of water testing and reporting, and 
increased operating expenses as the reasons for the filing.  In addition, the 
company has proposed rate design changes that both promote water conservation 
and provide a first step towards Single Tariff Pricing for the entire 
company.   

The commission received 29 comments opposed.  Customers think that the proposed 
increases are excessive and state that the company should look for methods of 
reducing overall costs. Customers also commented that it was their 
understanding that when Washington Water Services purchased the companies that 
were previously providing service to them that their rates would eventually go 
down due to the larger customer base over which costs could be spread.  
Customers also stated they are already conserving water and believe the 
proposed rate structure is unjust.  Additionally, customers have expressed 
their opposition to the water treatment surcharge of $.50 per month.  They 
believe that this expense is already covered in the base rate charge.  

A sample of the current and proposed rates are provided below:

Monthly Rates:  Current   Proposed Percent

Flat Rates

Harbor District –
   Residential $20.00 $26.00  30%


Monthly Rates:  Current   Proposed Percent

Flat Rates (cont)

Country Store
   Residential  10.00 26.00 160%
   Commercial  36.00 26.00 -28% 
 

Metered Rates
Harbor District
    Current   Proposed Percent
 Base Rate    
 ¾ Inch Meter  $16.00   $13.60
 Usage included    400 Cubic ft.  None

 Usage Charge
 0-400 Cubic ft  $0.00 $1.00
 401-1400 Cubic ft 0.70 1.15  64%
 Over 1400 Cubic ft 0.80 1.30  63%

Talmo System
    Current   Proposed Percent
 Base Rate    
 ¾ Inch Meter  $13.50   $13.60
 Usage included    400 Cubic ft.  None

 Usage Charge
 0-400 Cubic ft  $0.00 $1.00
 401-1400 Cubic ft 0.50 1.15  130%
 Over 1400 Cubic ft 0.58 1.30  124%


Staff and the company are currently engaged in continuing discussions.  Staff 
and Washington Water agree on the need for further analysis before a final 
recommendation can be provided.    However, Staff expects that this filing will 
be once again brought before this Commission at its next open meeting, which is 
February 23, 2001.
 
Therefore Staff recommends that the Commission issue a Complaint and Order 
Suspending the Tariff Revisions Filed by Washington Water Service Company in 
Docket UW-010024.