ORDER NO. 99-019

ENTERED Jan 20 1999

This is an electronic copy. Appendices not included.

OF OREGON

UW 63

 DISPOSITION: STIPULATION ADOPTED; RATE INCREASE APPROVED

On September 2, 1998, Roats Water System, Inc., (Roats or the Company) filed rate schedules to be effective October 2, 1998. At its September 15, 1998, public meeting, the Public Utility Commission of Oregon ordered suspension of the rate schedules pending an investigation pursuant to ORS 757.210 and 757.215.

On October 15, 1998, a prehearing conference was held in this matter in Bend, Oregon. The parties adopted a schedule for the remainder of the docket. On December 28, 1998, the Commission Staff filed testimony in support of a stipulation resolving all issues.

On January 7, 1999, a public comment and evidentiary hearing was held in Bend, Oregon, before Samuel J. Petrillo, an Administrative Law Judge for the Commission. Kimberly Cobrain, Assistant Attorney General, appeared for Staff. William Roats, President, Roats Water System, Inc., appeared for the applicant. At the hearing, the stipulation, supporting testimony, and attachments were entered into evidence.

The Commission has reviewed the stipulation and supporting testimony attached as Appendix A and incorporated into this order by reference. It allows the Company to increase rates by $26,024 annually, or 5.68 percent, resulting in total revenues of $413,041. The increase will be used to add a part-time bookkeeper, fund an employee retirement plan, and to enlarge and move a main water line to meet capacity needs. These purposes are reasonable and consistent with Roats’ public utility obligations.

The stipulation also provides that 44 percent of overall revenues should be assigned to the variable rate and 56 percent to the base rate. This is consistent with our decision in docket UW 51, wherein we determined that it is appropriate to gradually move the Company towards a 40/60 percent variable/base revenue allocation.

As a final matter, the stipulation includes a housekeeping change in the Company’s Rules and Regulations, PUC No. 2, First Revised Sheet 14, Rule 27 to reference the correct OPUC administrative rule.

The Commission concludes that the stipulation is reasonable and should be adopted.

ORDER

IT IS ORDERED that:

1. The stipulation set forth in Appendix A of this order is adopted. Roats Water System, Inc. is authorized to increase rates by $26,024 or 5.68 percent, resulting in total annual revenues of $413,041.

2. Roats Water System, Inc., shall charge rates in accordance with the rate schedules set forth in tariff sheets designated PUC Oregon No. 2, First Revised Sheet No. 3, Schedule 2 No. 2, Metered Rates, as shown in Attachment B of the stipulation.

 3. The Rules and Regulations set forth the Company’s tariff, PUC Oregon No. 2, First Revised Sheet No. 14, Rule 27 shall be revised as set forth in the stipulation.

 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 in 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(2). A party may appeal this order to a court pursuant to ORS 756.580.