Agenda Date:  December 29, 1999
Item Number:  2G

Docket:    UW-991801
Company Name:  Mirrormont Services, Inc.

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

Recommendation:

Approve the tariff  revisions filed by Mirrormont Services, Inc., in Docket 
UW-991801, to become effective January 1, 2000.

Discussion:

On November 18, 1999, Mirrormont Services, Inc., (Mirrormont) filed for general 
rates in the amount of approximately $4,800 (2.5 percent) of additional revenue 
per year.  The Company serves approximately 710 customers near Issaquah, in 
King County.

The Company is completing its update to the Department of Health (DOH) required 
water system plan.  This plan is revised every six years and is used to provide 
a uniform process for water utilities to identify present and future needs, 
address those needs and demonstrate operational, technical, managerial, and 
financial capability to achieve and maintain compliance with all relevant DOH 
quality and quantity regulations.  Surcharge collections will be used for a 
loan repayment.

The Commission did not receive any customer comments on this request.  
Mirrormont=s last general rate increase was July 1998.  The average residential 
customer would see an increase of approximately $.50 per month ($6.00 
annually.)  The current and proposed rates are provided below:

Monthly Rate  Current Proposed

Water System 
Plan Surcharge     N/A  $   .50

This surcharge will expire on January 1, 2006 or upon recovery of the loan 
principal ($18,000), plus interest and taxes, whichever occurs first.  Any 
excess funds collected from growth will pay loan principal.

The funds received from the surcharge will be deposited into a separate reserve 
account exclu-sively for the purpose of making loan payments for the water 
system plan.  This separate reserve account will be listed on all Company 
financial records and will be considered a cash account asset (NARUC account 
#127).  Expenditures from the reserve account will be treated as customer 
contri-butions for ratemaking purposes.  Mirrormont will provide quarterly 
reports and bank statements for the period that the surcharge is in effect.

Regulatory Services Staff has reviewed the information to support the filing 
and found the proposed rate to be fair, just, reasonable and sufficient.  
Therefore, Staff recommends that the Commission approve the tariff revision 
filed by Mirrormont Services, Inc., in Docket 
UW-991801 to become effective January 1, 2000.