ORDER NO. 99-086

ENTERED FEB 17 1999

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

OF OREGON

UW 59

DISPOSITION: STIPULATION ADOPTED

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

On June 19, 1998, Hillview filed for a general rate increase scheduled to become effective on August 1, 1998. Hillview subsequently requested extension of the effective date to 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. 98-324. 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.

Hillview requests an increase of 121 percent over test year revenues. The requested new rates would increase Hillview’s annual revenues from $4,119 to $7,511. Based on operating results during the test year ending on April 30, 1998, Staff recommends that Hillview’s total annual revenue be increased to $5,221. That revenue requirement would be met by a base monthly rate of $26.10 (which includes 3750 gallons of water), and a variable rate for consumption greater than 3750 gallons would be $0.89 per 750 gallons. Hillview, Staff, and intervenors met to discuss settlement of the issues. They reached agreement on many issues and drafted a stipulation adopting the Staff position. The draft stipulation was revised at the hearing and agreed to by the parties. A copy of the revised 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 Hillview water system and made a number of suggestions about maintenance of the system. In addition, Staff recommends better communication between Hillview and its customers. Hillview has agreed to abide by the OAWU and Staff suggestions, and they are incorporated in the attached stipulation.

ORDER

IT IS ORDERED that:

The revised stipulation agreed to by the parties at the hearing is adopted;

Hillview may file revised tariff schedules establishing the rates shown in the revised stipulation;

The tariff schedules filed by Hillview 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.