Docket Number
96/09/11 Wa Waste Hauling & Recycling Tariff Revisions
Agenda Date: September 11, 1996
Item Number:
Dockets: TG-960927 and TG-960928
Company Name: Washington Waste Hauling and Recycling, Inc., Waste Management of Seattle, G-237.
Staff: Nicki Johnson, Revenue Requirements Specialist
Recommendation:
Approve the proposed substitute filing of Waste Management of Seattle, Tariff 18, in Docket
TG-960927 and approve the revised filing of Waste Management of Seattle, Tariff 5, in Docket TG-960928 to become effective September 15, 1996.
Discussion:
On July 18, 1996, Waste Management of Seattle filed for increased rates in its Seattle commercial operations (Tariff 18), and in its service territory known as Sunset (Tariff 5). In Tariff 18, Waste Management of Seattle’s entire service territory overlaps with Northwest Waste Industries’ Seattle operations. On July 25, 1996, Waste Management filed substitute pages for Tariff No. 18, filing the same rates as Northwest Waste Industries. The total revenue requirement for Waste Management of Seattle’s city operations, using the modified Lurito-Gallagher operating ratio methodology is $547,000. The company filed for $419,000 in its Tariff 18 operations.
In addition to its regulated solid waste operations, Waste Management of Seattle operates the Eastmont Transfer Station and provides non-regulated recycling service. As Recycle America, the company does curbside collection of recyclables for some customers in the City of Seattle. It also owns and operates a recycling processing center.
The Commission has received no letters in regards to the filing in Docket TG-960927. The Commission received four letters in opposition to the filing in Docket TG-960928.
Tip fees at the Eastmont Transfer Station are proposed to increase from $77.41 to $77.87 per ton for City of Seattle garbage. The proposed tip fee is the amount per ton that Rabanco, which also operates a transfer station, charges Northwest Waste Industries. The cost per ton at the transfer station for rate making, using the modified Lurito/Gallagher operating ratio methodology, could be $78.18 per ton.
The Sunset service area is west of Interstate 5 between the city limits of Seattle and Burien. The company serves approximately 3,000 residential customers and 300 commercial customers. In the proposed filing for Sunset, the company filed for an increase in residential rates, an increase in residential yardwaste rates and an increase in the tip fees at the Eastmont Transfer Station.
Waste Management proposes to increase the disposal fee at the Eastmont Transfer Station for King County garbage from $60.89 per ton to $62.50 per ton. Using the modified Lurito/Gallagher operating ratio methodology the recommended tip fee for county garbage is $62.50 per ton.
In the proposed rates for residential yardwaste, the company filed rates that would produce $63,424 (67.07%) of additional revenue resulting in an operating ratio of 89.18 percent. Currently the company serves about 1,600 customers who pay an average of $4.95 per month for yardwaste. The proposed rate will average approximately $8.25 per month.
The increase in the yardwaste rate is justified based on a revenue requirement need. Disposal rates for yardwaste have increased substantially since the company last changed its rates in 1994.
In Sunset residential garbage rates, the company proposed an increase of approximately $72,000 (12.05%). Residential recycling rates were proposed to increase from $3.38 per month to $4.00 per month. Staff’s analysis of the residential program indicated there was no revenue need in residential rates. On September 6, 1996, the company withdrew its proposal for increased residential rates in Tariff 5.
The following table represents a sampling of current and proposed rates for Tariff 18:
Commercial (per pick up) | Current | Proposed |
Can | 2.95 | 3.15 |
60 gal Toter | 5.95 | 6.35 |
90 gal Toter | 7.05 | 7.50 |
1 yard Container | 15.70 | 16.70 |
| Dockets: TG-960927 and TG-960928 September 11, 1996 Page 2 8 yard Container | 85.35 | 91.00 |
20 yard Drop Box | 77.95 | 83.00 |
20 Yard Compacted | 119.85 | 127.75 |
Staff recommends that the substitute filing in Docket TG-960927 and the revised filing in
TG-960928 be approved to become effective September 15, 1996.
Attachment
