Agenda Date:  December 27, 2000
Item Number:   2C

Docket:  UW-001866
Company Name:  Tall Timber Water Systems, LLC

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

Recommendation:

Allow the revised tariff revisions, filed by Tall Timber Water Systems, LLC, in 
Docket UW-001866, to become effective January 1, 2001 and require reporting.

Discussion:

On November 30, 2000, Tall Timber Water Systems, LLC, (Company) filed to revise 
its tariff to reflect a capital improvement surcharge.  This surcharge is for 
new water treatment plant on twelve water systems.  The company serves 
approximately 580 residential customers in Mason, Thurston, Lewis and Kitsap 
counties.  The systems affected by the new water treatment are listed below.

Violet Meadows Estates 1 – 6  Violet Meadows A, B, C, D
Rainbow Lake Water   Sandra Avenue Water System

The Commission received no customer comments on this filing.

The original request included the Cedar Shores Water System that is now being 
separated and will be applied to those customers only in a different rate 
filing.  The Cedar Shores project was requested by the customers who voted in 
favor of the surcharge.  This type of surcharge is applied only to the 
customers affected due to the voting process.   As part of this filing the 
Company included future operating expenses, which have now been removed, 
allowing a lower surcharge to all customers.   The proposed and revised rates 
are provided below:

Monthly Rate   Proposed Revised
Treatment Surcharge 1/2001   $ 10.95 $  5.60

This surcharge is to apply to all water customers served by the company.  Cedar 
Shores customers will be paying this surcharge and their own until paid off.  
This surcharge will expire on December 31, 2006 or upon recovery of $159,730.65 
loan principal, interest charges, fees and state excise taxes, whichever occurs 
first.  Surcharge recovery applies to water system plan documents submitted to 
the Department of Health, and titled “Treatment Surcharge 1/2001.” 

The Company will be required to provide quarterly reports of the surcharge 
funds until completion, as stated in the tariff conditions. Regulatory Services 
Staff has completed its review of the books and records to support the revised 
filing as set forth in the attachment.  Staff believes the rates proposed in 
this filing are appropriate and therefore, Staff recommends that the Commission 
allow the revised tariff revisions filed by Tall Timber Water Systems, LLC, in 
Docket UW-001866, to become effective January 1, 2001.