ORDER NO. 99-085

ENTERED FEB 17 1999

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

OF OREGON

UW 61

DISPOSITION: STIPULATION ADOPTED

In February 1998, Wilderness Canyon Water District (Wilderness) contacted the Commission’s Staff and proposed an increase in rates to exceed $24 per month average for residential customers. Staff informed Wilderness that it needed to give a 60-day written notice to its customers of the proposed increase. Wilderness then issued the required notice to its customers. Subsequently, more than 20 percent of Wilderness’s customers petitioned the Commission to assert rate regulation of Wilderness.

On July 6, 1998, Wilderness filed for a general rate increase scheduled to become effective on September 1, 1998. At our public meeting on August 4, 1998, we suspended the rate schedules for an additional period of six months after September 1, 1998. We memorialized that decision in Order No. 98-320. On September 22, 1998, Administrative Law Judge Thomas G. Barkin presided over a prehearing conference. Those attending the conference agreed on a list of issues and a schedule. On January 19, 1999, Administrative Law Judge Lowell Bergen presided over a hearing in Newberg to consider the proposed increase in rates.

Wilderness requests an increase of 156 percent over test year revenues. The requested new rates would increase Wilderness’s annual revenues from $2,714 to $6,970, an increase of $4,256. Based on operating results during the test year ending on April 30, 1998, Staff recommends that Wilderness’s total annual revenue be increased to $4,883, an increase of $2,047. That revenue requirement would be met by a base monthly rate of $20.34 (which includes 3750 gallons of water), and a variable rate for consumption greater than 3750 gallons of $1.38 per 750 gallons. Wilderness, Staff, and intervenors met to discuss settlement of the issues and reached a stipulation adopting the Staff position. A copy of the stipulation is attached to this order as Appendix A. A copy of a chart showing the original proposal and the agreed-upon results is attached to this order as Appendix B.

The Oregon Association of Water Utilities (OAWU) inspected the Wilderness water system and made a number of suggestions about maintenance of the system. In addition, Staff recommends better communication between Wilderness and its customers. Wilderness has agreed to abide by the OAWU and Staff suggestions, and they are incorporated in the attached stipulation.

The Commission has reviewed the stipulation and testimony in support of the stipulation. The Commission concludes that the stipulation is reasonable and should be adopted.

ORDER

IT IS ORDERED that:

The stipulation signed by the parties, and attached to this order as Appendix A, is adopted;

Wilderness may file tariff schedules establishing the rates shown in the stipulation;

The revised tariff schedules shall be effective as of the first of the month following the effective date of this order.

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.