BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Petition of )  DOCKET TG-980824
RST Disposal Company, Inc.,  ) 
G-185, for a Deferred Accounting ) ORDER AUTHORIZING Mechanism for 
Residential                                        )                    CARRIER
Recycling          )      TO INSTITUTE A DEFERRED    )      ACCOUNTING 
MECHANISM     )               FOR
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
. )         RESIDENTIAL RECYCLING 



   On June 12, 1998, RST Disposal Company, Inc., G-185, filed with the 
Washington Utilities and Transportation Commission (Commission) proposed  
revisions to its tariff which, among other things, changed residential 
recycling rates in Docket TG-980824.  The company now proposes to institute a 
deferred accounting mechanism for its residential recycling program in Tariff 4 
to become effective August 1, 1998.

  In the past, recycle rates were the combined total costs of collection and 
processing less the estimated value of the commodities collected.  Under 
deferred accounting, the gross collection and processing rate will be 
separately stated and subject to normal docketing procedures whenever rate 
changes need to be made.  For the commodity value portion; however, at the 
beginning of the program and each year thereafter, an estimate will be made of 
the future revenue received from sales of commodities using an average of the 
three most recent months sales price and tonnage per commodity.  This amount 
will then be converted to a per customer per month basis, using a three month 
average number of customers, to be shown as a credit offset (if the commodities 
have value) or debit add-in (if the company must pay to have them taken away) 
to the gross collection rate for recycling service.  This credit/debit amount 
will be subject to annual review and adjustment based on the comparison of the 
amounts expected at the beginning of the period versus the amounts later 
actually realized.  Any difference will be reflected in the commodity 
adjustment for the next year.

  The following example, using RST Disposal proforma results of recycling and 
customers explains the process: 

Rates effective August 1, 1998:

  Projected Commodity Revenue $12,500
       (12 months beginning 8/1/98)
   
  Number of customers       1,985
  
  
Docket TG-980824         Page 1


  Avg. Gross Recycle Rate:      $4.18
  less: Commodity credit       (0.53)
       ($12,500/12/1985)

  Net amount billed to customers           3.65
       (Beginning Aug 1, 1998)


Calculation of Rate for the Year November 1, 1999 to October 31, 2000:


  Actual Commodity Revenue   $15,000
       (12 mo. ended 7/31/99)

  Earlier Projected Commodity Revenue  $12,500
       (12 mo. ended 7/31/99)

  Amount Due (To)/From Customers  ($2,500)

  Projected Commodity Revenue  $16,500
       (Aug 1, 1999 to July, 31, 2000)

  Number of customers        2,000
       (3 month average at Aug 1, 1999)

  Avg. Gross Recycle Charge         $4.18

  Deferred Adj. Due customers - earlier year           (.10)
       ($2,500/12/2000)

  Commodity Adjustment - projected year          (.69)
       ($16,500/12/2000)

  Net Amount Billed Customers         $3.39
       (Beginning November 1, 1999)




FINDINGS

  The Commission finds that implementation of the proposed deferred accounting 
mechanism is a fair, just, and reasonable approach of setting rates that 
equitably balances the interests of solid waste providers and their customers 
against the risks of changing commodity values.  The Commission hereby approves 


RST Disposal Company, Inc’s proposal to initiate a deferred accounting 
methodology to update the commodity credit portion of its overall residential 
recycling rate on a recurring basis.


O R D E R

  
  THE COMMISSION THEREFORE ORDERS That RST Disposal Company’s request to enter 
into a deferred commodity adjustment methodology for its residential curbside 
program in its proposed Tariff 4 is approved, and will become effective August 
1, 1998.  The new tariff pages for deferred recyling must bear an expiration 
date of October 31, 1999, and be renewed every 12 months thereafter.

  

  DATED at Olympia, Washington, and effective this 31st day of July, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
  
Docket TG-980824         Page 1
           
      ANNE LEVINSON, Chair



      RICHARD HEMSTAD, Commissioner



     WILLIAM R. GILLIS, Commissioner