Docket UW-981518, UW-990263
March 10, 1999
Page 1
Agenda Date:  March 10, 1999
Item Numbers:  

Dockets:   UW-981518, UW-990263
Company Name:  Gamble Bay Water, Inc.

Staff:    Jim Ward, Revenue Requirements Specialist
Penny Hansen, Public Involvement Coordinator

Recommendation:

Issue an Order Dismissing Complaint and Order Suspending Tariff Revision in 
Docket 
UW-981518, and Approve Tariff Revision as filed in Docket UW-990263, with Less 
Than Statutory treatment as filed by Gamble Bay Water, Inc.

Discussion:

On November 30, 1998, Gamble Bay Water, Inc., (Gamble Bay) filed with the 
Commission a tariff revision to add a Facilities Charge for residential 
customers . Gamble Bay serves approximately 250 customers located on 13 water 
systems on Bainbridge Island and near Poulsbo.

On December 23,1998, the Commission suspended the filing.  This tariff revision 
provides for Gamble Bay to establish a facilities charge (Schedule No. 11) to 
the Bucklin and Vincent Road potential customers for a portion of the upgrade 
cost.  The total cost of upgrades and improvements is estimated to be 
$344,000.  Facilities charge monies will be used to fund about $203,500.

The facilities charge monies will be used to repay a projected loan the company 
has applied for.  The loan is administered by the Washington State Public Works 
Board -Drinking Water State Revolving Fund Program.  This program provides low 
interest, long term loans for public works projects.

Monies from a loan will be used to acquire a tank site, construct a 100,000 
gallon reservoir and to intertie the Bucklin water system and the Vincent Road 
water system. Vincent Road water system is located near Kitsap County 
Landfill.  The sole source of water for this system is having problems with 
testing results.  The system is designed for nine (9) connections and is 
currently at capacity.  However, the system has water rights for up to 31 
connections.  Gamble Bay intends to intertie the two systems (resolving water 
quality issues) and transfer water rights to the Bucklin water system. By this 
transfer of water rights the company could fully utilize the 31 connection 
capacity.

The Commission is now in receipt of a letter dated April 3, 1999, requesting 
withdrawal of the request under Docket UW-981158, and requesting Less Than 
Statutory (LSN) treatment of a replacement filing under Docket UW-990263.

Customer notice was not provided for this rate filing as potential applicants 
or customers are unknown.  One developer will be impacted by these charges and 
he is aware of the proposed facilities charge.



 Facilities Charge    Current  Proposed 

Facilities Charge - Schedule No. 11      ---   $2,600

The facilities charge amount would be treated as Contribution in Aid of 
Construction and would be deducted from future rate base calculations.  
Additionally, the company would provide quarterly reporting of funds received 
and monies spent for the system upgrades and improvements.

This filing is in conjunction with a new definition of the company's service 
area.  The service area is being defined as only those customers that the 
company is currently providing water.  This definition is consistent with 
Commission Service Area as defined in WAC 480-110-021 (6).  The facilities 
charge would then apply to any new customer connecting to the Vincent Road and 
Bucklin water systems or any system extension served by these water systems and 
owned by Gamble Bay.

The company has demonstrated the cost associated with the plans for 
construction and staff recommends that the Commission Issue an Order Dismissing 
Complaint and Order Suspending Tariff Revision in Docket UW-981518 and Approve 
Tariff Revision in Docket UW-990263, with LSN treatment as filed by Gamble Bay 
Water, Inc.