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Frequently Asked Questions by Water Customers
 
How often can a water company apply for a rate increase?

A company can file to increase its rates at any time. There are no restrictions how often a company can file to increase rates. However, the company has
the burden to demonstrate to the commission that it requires additional revenue and must comply with all filing requirements.

What does Commission staff review during their review of a company’s rate increase proposal?

Commission staff looks at five main issues:

1. Actual historical cost to provided service based on 12 months of financial information, excluding items for which money cannot be recovered from customers
(e.g., political contributions and fines levied);
2. The company's total investment in equipment used to provide service (called rate base);
3. The appropriate profit level (called rate of return) the company should be allowed for its investments;
4. The appropriate amount that each customer class (residential, commercial or industrial customers) should pay (residential, commercial or industrial customers).
5. The rate design. Monthly rates are either flat-rated service (unlimited water usage) or metered service (customers pay for what they use). Metered rates include a base
charge, which may or may not include an amount of water, and usage blocks. The number and rate spread of the usage blocks will affect customer behavior and revenue
to the company.

Isn't a surcharge the same as a rate increase?
No, a surcharge is a a tool a company can use to fund specific capital projects, as required by the Department of Health, to provide water quality or improve quantity.
A surcharge has a specific use and is a temporary charge to customers. The surcharge is removed from customers' bills when the load is paid in full.

My water is fine, why should I have to pay to repair a water system that does not supply water to me?

Customers benefit from economies of scale (i.e., this means, more customers paying for the necessary repairs results in a lower cost per customer). The commission
sets a single rate that applies to all customers on all water systems that a company owns, known as Single Tariff Pricing. An important exception to Single Tariff Pricing
occurs when customers on a system vote to pay for voluntary services, such as a surcharge for a backup generator if Department of Health does not require one or
installation of fire flow when the fire marshal does not require it. To implement voluntary surcharges, the company must send ballots to all affected customers. If the
majority of voting customers are in favor, then the company will file a proposal with the Commission and only those customers on the affected water system will pay
the surcharge.

Can a water company seek a rate increase if the water quality is not up to Department of Health standards?

Yes. The company can seek a rate increase to recover its reasonable costs of doing business.

What can I do if I'm experiencing water service problems (such as rates, billing, meters, or service connections)?

You should first notify your company. It is important to give your company a chance to fix the problem. If you are not satisfied with the company's response, you may
contact the UTC Consumer Affairs department at 1-800-562-6150.

Can a customer seek a refund for poor water quality?

Yes. A water company may be required to refund water charges due to poor water quality. The refund amount, if any, would be determined at a hearing before the
Commission and it would only be based on estimated water use for human consumption - a small fraction of normal daily water usage. A refund would not include water
used lawns, gardens, farm animals, baths/showers, etc.

Can I file a formal complaint about poor water quality?

Yes. If you believe a company has violated a law, rule, commission order or provision as published in its tariff, you may file a formal complaint. A formal complaint places
the burden of proof on the person or company making the complaint. This process is a formal hearing before an administrative law judge, who will make a decision based
on the record and the merits of the case. Formal complaints must be filed in writing and must clearly state the complaint and the relief requested. Here is a link to more
information regarding a formal complaint:

http://www.wutc.wa.gov/webdocs.nsf/0492664a7ba7ed8b88256406006bf2ca/adedc2bc00fe6baf8825650f005eccce!OpenDocument

If a water company is fined by the UTC or Department of Health, can the company recover the fine in customer rates?

No. Any fines or penalties levied on a water company are removed from expenses used to set water rates.

Is there a law restricting a water company from buying more water systems? No.

Can a regulated water company purchase a non-regulated water company?

Yes. The Commission does not have jurisdiction over a regulated company purchasing a non-regulated company. After a regulated water company buys a non-regulated
water system, the regulated company must continue to charge the current rates that the non-regulated customers paid, unless the company obtains Commission
approval to charge a different rate.

Can I ask the water company to install a water meter for my service? If so, who pays for the water meter?

Yes. If a company has rates for metered service in its tariff, the company has thirty days to install the meter from the date of your request. The company can charge you in
advance for the cost of the meter and installation, both of which must be published in the company’s applicable tariff. The company must return the cost of the meter
(but not the installation) through a partial bill credit until repaid.

Will the water company test my water meter if I request it?

Yes. The company will test your meter for accuracy for no charge for the first test. A company can charge for any additional meter tests as requested by the customer
within a twelve month period. The company has ten days after a complaint to perfom a test.

Can a water company estimate my water bill if I'm a metered customer?

Yes. A company cannot estimate your water bill for more than two consecutive billing cycles.

How do you read a water meter?

If a water customer requests assistance in reading a meter, the company must provide information on how to read the meter. Some meters read straight across like the
odometer on a car. Other meters are circular with five or six dials. Read each dial clockwise, starting at the 100,000 dial. If a pointer is between the two figures, read the
lower number. Remember - your meter is never reset.

Will I receive notice from the water company for interruption of service?

Yes, if the interruption is pre-planned. Customers will receive twenty-four hours advanced notice through newspaper, radio announcements or other means.

Does the water company have to provide a toll-free number for customers? No.

What can I do when I am not able to reach someone at my water company?

State law requires the water company to maintain a business location and a telephone system. Customers must be able to leave a message to report an emergency
or a service interruption. If you cannot reach your water company, you may contact the Consumer Affairs Section at the Commission toll-free at 1-800-562-6150.

What if I report a service failure or an emergency - how will I know the company is going to fix the problem?

The company must respond to the person who reported the service failure or emergency within twenty-four hours of the report. The company contact may state that they
received your call and are working on the problem. You probably will not get a detailed report - but you will know the company is working on the problem.

I've called the company to ask a question and the company does not return my call. What can I do?

When you call the company and the call is not an emergency, the company must return the call within two business days. If the company does not return your call you
may call the UTC at 1-800-562-6150 for assistance.

I wrote a letter to my water company asking questions about my water service. Does the company have to respond?

Yes. A water company must acknowledge and respond to your written inquiry within two weeks of receiving the letter.

Do I have to give access to my premises to the company?

Authorized personnel of the company have the right to enter your property during reasonable hours to perform meter reading, maintenance, testing, and installation
or removal of the company's property. Customers may ask to see the company personnel’s identification before allowing entry to your property.

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