Docket TG-970478
May 28, 1997
page 1
Agenda Date:  May 28, 1997
Item Number:   

Docket Number: TG-970478
Company Name: Harold LeMay Enterprises, Inc., d/b/a/ Pierce County Refuse Co. 
G-98   

Staff:   Layne Demas, Revenue Requirements Specialist
   Penny Hansen, Public Involvement Coordinator

Recommendation:

Issue a complaint and order suspending the revised filing in Docket TG-970478 
for Pierce County Refuse Co. and allow temporary rates to become effective June 
1, 1997.

Discussion:

On March 12, 1997, Pierce County Refuse Co. filed tariff revisions in Docket 
TG-970478 to reflect increased residential and commercial rates for solid waste 
collection.  The reason for the filing is to recover increased disposal fees 
and contract labor increases.  The disposal fees at the Land Recovery Inc., 
(LRI) landfill in Pierce County are increasing from $72.20 to $75.75 per ton 
for at least 60 days.  Initially, LRI and Pierce County announced a disposal 
fee increase to $78.78 per ton to be effective May 1, 1997. Continuing 
discussions on the long haul contract resulted in the temporary smaller 
increase to be effective June 1, 1997.  During the temporary rate period both 
Pierce County and LRI will determine the final disposal rate.  Either the 
$75.75 per ton rate will prevail or it will increase to the $78.85 per ton 
rate.   The company has requested the pass through remedy of the disposal fee 
impact per RCW 81.77.160.  Pierce County Refuse Co. serves approximately 22,500 
residential and 6,600 commercial regulated customers in southeast Pierce 
County.  The company also has contracts for service with the city of Lakewood. 

The Commission received five letters opposed to this proposal.  Customers 
believe that the company's proposal is excessive and do not believe the company 
needs an increase.

The filing is an update of a previous general rate increase effective July 1, 
1996, in Docket 
TG-960668.  The proposed rates will generate approximately $238,325 (2.82%) in 
additional revenue. The results of the update are shown on Attachment A.  The 
following is a representative sample of current and proposed rates:

Per Month, Residential   Current  Proposed Revised 
minican     $10.47 $10.82  $10.67
1 Can Weekly     12.37  12.82  12.67 
2 Can Weekly     17.27 18.02   17.72 
(Rate includes recycle program cost of $2.12)  

Per Pickup, Commercial
1 Yd Container 1st pu.    16.84 17.64   17.16 
1 Yd Container Addl    9.76 10.56  10.08
2 Yd Container 1st. Pu.    28.98 30.21   29.46 
2 Yd Container Addl     18.42 19.65  18.90

Staff recommends that a complaint and order suspending the revised filing in 
Docket TG-970478 be issued and temporary rates be approved to become effective 
June 1, 1997.