DOCKETS UW-971735 AND UW-980616 Page 1 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION WASHINGTON UTILITIES AND ) TRANSPORTATION COMMISSION, ) ) Complainant, ) DOCKETS: UW-971735 AND ) UW-980616 ) vs. ) ORDER DISMISSING ) COMPLAINT AND AMERICAN WATER RESOURCES, INC. ) ORDER SUSPENDING ) CONTRACT AND GRANTING ) CONTRACT APPROVAL Respondent ) ) On December 8, 1997, American Water Resources, Inc., filed a contract with the Commission. The contract is between Dorenbush Homes, Inc., (developer) and American Water Resources, Inc., (American Water) and calls for the developer to install a water distribution main and related operating equipment to serve Wood Village. Wood Village is a 22-lot subdivision located in Pierce County. Additionally, developer is to install, at cost, all internal plat system extensions according to plans developed by Parametrix, Inc., and shall include, but not be limited to, a stub out of a one inch (1") water line, including meter box and meter setter, for each individual service stub out in the plat of Wood Village. The stated effective date of that contract was January 7, 1998. Developer was to pay $1,700 per residential equivalent for each water service connection to be provided by the system extension. During construction, developer needs water for building, sales, irrigation of landscaping and other purposes. American Water was willing to supply such water under a proposed Ready to Serve charge of $15.00 per month per lot. The Commission, on December 31, 1997, entered a Complaint and Order Suspending Contract pending an investigation concerning the charges and the reasonableness and justness thereof. By letter dated May 13, 1998, American Water and the developer have signed a new contract for service. The new contract is similar to the original with the following exceptions; Developer is to pay a facilities charge of $2,500 versus $1,700, developer is to pay a Ready To Service rate of $9.00 versus $15.00, and the facilities charge will be refundable to the extent of Commission review and establishment of a tariffed facilities charge under Docket UW-980076. An additional item has been added to the new contract in which the developer is to install a new replacement line extension of approximately 550 feet of 8-inch main and relocate two fire hydrants. American Water will pay the developer $1,000 for this purpose. Developer will pay all remaining or additional cost for the line extension replacement. FINDINGS 1. American Water Resources, Inc., is a water company and as such is a public service company subject to the jurisdiction of the Commission. 2. The contract presently under suspension herein is requested to be withdrawn. 3. It is not contrary to public interest that the Complaint and Order Suspending Contract in this docket be dismissed and that the contract as filed or amended, become effective May 29, 1998. O R D E R THE COMMISSION THEREFORE ORDERS That the Complaint and Order Suspending contract in Docket UW-971735, dated December 31, 1997, be and the same is hereby dismissed, and that the contract filed in Docket UW-980616, April 29, 1998, be and the same shall become effective May 29, 1998. DATED at Olympia, Washington, and effective this 27th day of May, 1998. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION ANNE LEVINSON, Chair RICHARD HEMSTAD, Commissioner WILLIAM R. GILLIS, Commissioner