Agenda Date: February 23, 2000 Item Number: Docket: TG-000051 Company Name: Dahl-Smyth, Inc., d.b.a. Disposal Services, G-165 Staff: Nicki Johnson, Policy Research Specialist Penny Hansen, Public Involvement Coordinator Recommendation: Issue a complaint and order to suspend the filing in Docket TG-000051 and approve temporary rates per RCW 81.77.160 to become effective March 1, 2000, with rates not to exceed the disposal fee increase. Discussion: On January 14, 2000, Dahl-Smyth, Inc., filed for increased solid waste rates to recover an increase in disposal fees and other operating costs. On November 17, 1999, the City Council of Walla Walla passed an ordinance approving an increase in disposal fees at its landfill. On February 14, 2000, disposal fees at the landfill increased from $24.41 per ton to $26.84 per ton. Dahl-Smyth provides service to 3,500 regulated customers in Walla Walla and Columbia Counties. The Company also has a contract with the City of College Place to provide service to its 2,100 residents. The Commission received one letter opposed to the filing. The proposed solid waste rates generate revenues of approximately $21,000 (2.81% increase). Commission Staff’s preliminary analysis of the Company’s operations indicates that the Company has a revenue requirement of approximately $8,000 with a recommended operating ratio of 86.10 percent. Staff informed the Company that the proposed rates appear to be excessive and requested that the Company provide more data on the allocations between regulated and non-regulated operations. At this time, the Company has not yet provided the data so Staff is unable to determine if the proposed rates are fair, just, reasonable and sufficient. The Company requested that disposal fees be passed through per RCW 81.77.160. The increase in disposal fees is $13,560 and is reflected in Staff recommended revised rates. The following table is a sample of current, proposed and staff revised rates. Current Proposed Revised Residential Monthly rate for weekly pickup 32gal. Toter $ 8.95 $ 9.20 $ 9.08 64 gal. toter 11.75 12.10 11.95 90 gal. toter 14.55 14.95 14.82 Commercial per Pickup One Yard 8.05 8.28 8.15 20 Yard Dropbox 84.00 87.00 84.00 Staff recommends the Commission issue a complaint and order to suspend the filing in Docket TG-000051 and approve temporary rates per RCW 81.77.160 to become effective March 1, 2000 with rates not to exceed the disposal fee increase.