BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the

PETITION OF RAINIER VIEW WATER COMPANY, INC.

For an Order Regarding the Accounting Treatment of Amounts Received Related to 
Corrosion and Water Treatment Surcharge
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		DOCKET UW-010030
		
		
		ORDER AUTHORIZING 
		ACCOUNTING TREATMENT 
BACKGROUND

1 On January 10, 2001, Rainier Vew Water Company, Inc. (Rainier View) filed a 
Petition with this  Commission under WAC 480-09-420(7) seeking an order 
authorizing a change in accounting   treatment of funds collected via an 
approved corrosion and water treatment surcharge (water   treatment 
surcharge).  In its Petition, Rainier View requests an order that:
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 · Authorizes Rainier View to recognize as revenue, water treatment surcharge 
amounts    recorded to account 271, Contributions in Aid of Construction, equal 
to its water corrosion   and treatment maintenance expense and;

 · Authorizes Rainier View to apply the above accounting effective January 
2000. 

MEMORANDUM

3 This Petition is related to the September 23, 1998, approval of a surcharge 
filed under RCW   80.28.022 (Docket UW-981128).  The water treatment surcharge 
allows Rainier View to collect  from its customers the cost of new water 
treatment system upgrades and the associated operating and  financing costs.    

4 Staff has reviewed the record in Docket UW-981128 including the order and the 
related Staff memo  and workpapers.  Staff is of the opinion that the requested 
accounting by the company is consistent  with the original intent of the order.

5 Staff also reviewed Rainier View’s books and accounting records applicable to 
this Petition. Staff has  determined that the Contribution in Aid of 
Construction account and the Retained Earnings account  need to be adjusted for 
prior periods.  Staff recommends that Rainier View be directed to record  
future accounting entries consistent with its Petition and this order, and the 
intent of the Order Granting  Tariff Revision in Docket UW-981128.

6 Staff supports an Accounting Order clarifying the required accounting of the 
Water Treatment   Surcharge and directing adjustments to the Contribution in 
Aid of Construction (account 271),   Accumulated Amortization of Contribution 
in Aid of Construction (account 272), and Retained   Earnings (account 215).

7 After discussion with the Commission Staff, Rainier View has agreed to 
account for the Water   Treatment Surcharge in the following manner:

  (a) Water Treatment Surcharge amounts billed will be accrued to Account 
271     Contribution in Aid of Construction (CIAC), and

  (b) At the end of each quarter an amount equal to the total of incurred 
maintenance     expense and interest expense for the same period, which is 
related to the Water    Treatment Surcharge, will be debited to CIAC and 
credited to Surcharge Revenue.

8 The change in accounting will be effective as of September 23, 1998. 

9 Rainier View has also agreed to adjust 1999 year-end balances of CIAC, 
Accumulated Amortization  of CIAC, and Retained Earnings consistent with the 
change in accounting cited in paragraph 7, to  September 23, 1998.

10 Surcharge amounts related to water treatment maintenance and interest 
expense received in 1998 by  Rainier View were recognized in 1998 as revenue 
and therefore no adjustment to 1998 is required.

11 The change in accounting and the one-time accounting adjustment will be 
effective as of September  23, 1998. 

12 This matter was brought before the Commission at its regularly scheduled 
open meeting on March 28,  2001.  The Commissioners, having been fully advised 
in the matter, and having determined the   following order to be consistent 
with the public interest, directed the Secretary to enter the following  order 
and related provisions.

FINDINGS

13 (1)  Rainier View is a Water Company and is a public service company subject 
to the jurisdiction  of the Commission.  

14 (2)  On January 10, 2000, Rainier View filed with the Commission a petition 
for an accounting  order authorizing a change in accounting for its water 
treatment surcharge and for authority to adjust  its accounting records to 
reflect the change in accounting.

15 (3)  The accounting treatment agreed to by Rainier View described above in 
paragraph 7 is   consistent with the September 23, 1998, Order Granting Tariff 
Revision in Docket UW-981128 and  should be approved.

O R D E R

16 THE COMMISSION ORDERS:

17 (1)  That the requested petition for accounting order is granted as modified 
by this order. 

18 (2)  Rainier View will record the adjusting accounting entries as follows:

          Debit  Credit
 (a)    CIAC   193,634     
      Retained Earnings   191,067
      Accumulated Amort. of CIAC                       2,567
To record 1999 Water Treatment Surcharge Revenue
 

 (b)     CIAC   245,209
        Surcharge Revenue   245,209
To record 2000 Water Treatment Surcharge Revenue

19 (3)  Nothing in this Order shall be construed to waive or otherwise impair 
the jurisdiction of the Commission over the rates, services, accounts and 
practices of Rainier View.

20 (4) The Commission retains jurisdiction to effectuate the provisions of this 
Order.

DATED at Olympia, Washington, and effective this 28th day of March, 2001.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




CAROLE J. WASHBURN
Secretary