ORDER NO. 98-208

ENTERED MAY 21 1998

This is an electronic copy. Appendices may not be included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UW 60

DISPOSITION: REVISED TARIFFS APPROVED

South Hills Water System, Inc. provides water service to 102 customers in the Hillsboro, Oregon, area. On April 2, 1998, South Hills filed with the Commission new tariffs and rate schedules, with a requested effective date of May 1, 1998. The new rates are designed to increase average water rates to South Hills’ customers by 28 percent, and increase South Hills’ gross revenue by $6,449 per year, to a total of $29,241. South Hills also filed revised rules and regulations governing its provision of water service. South Hills notified its customers of its rate increase request on April 8, 1998. The Commission has received no response to the notice from South Hills’ customers.

The Commission’s Staff analyzed South Hills’ operations and its rate increase request. Based on that that analysis, Staff recommended to the Commission at its April 21, 1998, public meeting, that the Commission approve the revised tariff schedules without suspension. The Commission adopted the Staff’s Report and approved the tariff revisions as filed. A copy of the Staff Report is attached to this order as Appendix A.

South Hills by its own choice has been operated in a frugal manner, by not paying its owner a salary for his efforts. South Hills has incurred increased costs for repairs and maintenance since its last rate increase in 1994. The proposed new rates will be less than the average residential threshold of $24 per month adopted by the Commission in November 1997 in Docket No. AR 328. See ORS 757.061 and OAR 860-036-0030. The new rates proposed by South Hills are fair, just, and reasonable.

ORDER

IT IS ORDERED that the Revised Tariff Schedules and Rules filed by South Hills Water System, Inc., on April 2, 1998, are approved for service rendered on and after May 1, 1998.

Made, entered, and effective ____________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with the requirements of OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070. A party may appeal this order to a court pursuant to ORS 756.580.