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

Docket:    UW-991863
   
Company Name:  Harbor Springs Water Company, Inc.

Staff:    Danny P. Kermode, Revenue Requirements Specialist
    Penny Hansen, Public Involvement Coordinator

Recommendation:

Issue a Complaint and Order Suspending the Tariff Revisions Filed by Harbor 
Springs Water Company, Inc., in Docket UW-991863.

Discussion:

On November 30, 1999, Harbor Springs Water Company, Inc., (Harbor Springs) 
filed for a general rate increase which would increase annual revenues by 
$35,874 or 108%.  Test year revenue of $35,780 would be increased to $74,654.  
The Company has not had a rate increase since 1997 prior to first filing 
initial tariffs in May of 1994.  Harbor Springs serves approximately 103 
residential customers in Pierce County near the city of Gig Harbor.

The Company is requesting the increase to recover its increased expenses 
related to operating and maintaining the water system and also for costs 
associated with the Company’s increased investment in water plant installed 
over the last few years and increased costs of basic operational and 
maintenance expenses.

The Commission has received 16 letters opposed to this request.  The letters 
express concerns about the size of the requested increase.

The current and proposed rates are provided below:

Monthly Rates:      Current  Proposed 

Flat Rate  Service   $  29.00  $  60.40 

Staff has requested information from the Company to support the filing.  The 
Company has provided some information to Staff, however not all the information 
requested has been received at this time.  Staff is continuing its analysis of 
the Company's records.  The Company has not yet demonstrated to Staff the 
proposed rate is fair, just, reasonable, and sufficient.

In addition, Notice to Customers was mailed December 7, 1999, 8 days after the 
filing of the proposed rate increase. Of all the comments received by the 
Commission thus far, most of the letters and calls referred in someway to the 
late notice issue.  The Commission currently requires a 30 day notice period 
from the date of notice to the proposed effective date.  In this case the 
notice period would only be 22 days.

Based on both the need to continue the investigation and the late notice issue, 
Staff recommends that the Commission issue a Complaint and Order Suspending the 
Tariff Revisions filed by Harbor Springs Water Company, Inc., in Docket 
UW-991863.