Agenda Date:  March 10,  1999
 Item Number:

Docket:   UW-990260
   
Company Name: Bliss Industries, Inc.
   d/b/a Y Bar S Water Company

Staff:   Danny P. Kermode, Revenue Requirements Specialist
   
Recommendation:

Issue a complaint and order against Bliss Industries, Inc., d/b/a Y Bar S Water 
Company (Y Bar S) to determine whether the rates and charges presently made, 
demanded and received by Y Bar S are fair, just, and reasonable.  The water 
section staff also recommends the matter be set for hearing. 

Discussion:
Y Bar S is located in King County and serves more than one hundred customers in 
Y Bar S and Highview Estates sub-divisions. 

On December 30, 1997 Y Bar S filed a tariff and rules and regulations with the 
Commission.  On January 26, 1998, the water section staff contacted the company 
regarding rates being charged to Y Bar S customers.  I had numerous 
conversations with representatives of the company including a final meeting 
with the company's president and owner last November 1998.  Regrettably, the 
informal approach has not resulted in any progress in resolving the water 
section staff's concerns regarding rate structure and the financial viability 
of the company.  The company indicated to the water section staff that by the 
beginning of 1999 the company would file for a rate review which would reduce 
current tariffed rates and charges.  At this time, there had been no 
communication by any company representative to the Commission.   Therefore, the 
water section staff believes the Commission has no alternative but to pursue 
this on a more formal level.

The company's tariff includes a monthly "facilities charge" of $19.22 per month 
for some of its customers.  According to the company's tariff, the charge is 
for the repayment of a $158,800 loan. However, in a letter to the Public Works 
Board the company states that the charge is for funding the $134,000 loan the 
company is requesting from the state revolving fund (SRF).  (As of this date 
the SRF has not provided any money to Y Bar S).   The water section staff's 
position is that the monthly facilities charge is excessive and should be 
removed from the company's tariff.  The company has collected some of the 
monthly facilities charges "up front" from certain customers as a lump sum 
payments of $969 or $1,588.  If the facts bear this out, the water section 
staff would like these amounts refunded to the customers.  In addition, Y Bar 
S's tariff reflects a $3,000 service connection charge.  It is the water 
section staff's opinion that this charge does not reflect the true cost of a 
service connection and is excessive.


Current Rates:
Monthly Metered Service		
for the first 750 Cubic Feet
Per 100 cubic Feet Thereafter	$34.50
	0.98	Plus facilities charge of $19.22 per month
Monthly Non-Metered		
Flat Rate	$34.50	Plus facilities charge of $19.22 per month
		Docket UW-990260

The water section staff recommends that the Commission issue a complaint and 
order against Bliss Industries, Inc., d/b/a Y Bar S Water Company to determine 
whether the rates and charges presently made, demanded and received by Y Bar S 
are fair, just, and reasonable.  The water section staff also recommends the 
matter be set for hearing