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98/02/25 Murrey's Disposal Company, Inc. TR
 

Agenda Date: February 25, 1998
Item Number:

Docket: TG-980054

Company Name: Murrey’s Disposal Co., Inc., G-9
d/b/a Olympic Disposal

Staff: Bob Colbo, Transportation Program Consultant
Penny Hansen, Public Involvement Coordinator

Recommendation:

Allow the proposed tariff revisions proposed by Olympic Disposal to become effective March 1, 1998, as proposed, but require the company to disclose alternative service options to customers and provide quarterly reporting of customer counts and profit and loss statements for the next year.

Discussion:

On January 14, 1998, the above company proposed a new Tariff 20 replacing Tariff 19 to become effective February 28, 1998. The company recently changed hands, and the revisions are designed to simplify service offerings and billing procedures, re-align some rates, decrease others, and establish new rates for new services. Some residential customers will experience rate increases unless they decrease the size or frequency of their present service.

Murrey Disposal bought Olympic Disposal effective December 1, 1998. It serves 6,300 residential and 800 commercial customers in Clallam and Jefferson Counties. In the conversion process they discovered a complicated range of duplicating service options and rates, particularly for residential customers. Prior owners had also recently introduced 60 gallon toter service, but had never included rates for such service in their tariff. Instead, they had simply charged the existing one can rate for the larger bins. Olympic now seeks to establish rates for these expanded service options, and has generated a significant customer reaction. Existing customers will now have the option to return to their earlier service levels if they want to.

The Commission has received sixteen letters from customers opposed to the proposed rate increase and restructuring of its services. Customers believe the proposal is excessive.

The following tables illustrate the problem. Since rate relationships are about the same in both counties, only the Clallam County rates are shown:








Clallam County


Residential Present Proposed
(Monthly Rate)

Wkly EOW 1xMo Wkly EOW 1xMo

Voluntary Recycling $4.70 $3.90
Mini Can $12.32 N/A N/A $12.32 N/A N/A
1 Can 15.42 9.22 5.77 15.42 9.22 5.77 2 Can 22.80 12.27 N/A 22.80 N/A N/A
3 Can 30.17 17.07 N/A 30.17 N/A N/A
35 G Tote N/A N/A N/A $17.10 12.33 6.50
60 G Tote 15.42 9.22 5.77 21.10 14.94 9.40

Docket TG-980054
February 25, 1998
Page 1

There are some significant rate impacts to 60 gallon tote customers who have been paying the one can rate, and also for 2 and 3 can every other week customers who must now switch to smaller capacity weekly service. There are several new service options proposed for commercial customers, most in proportion to existing options.


Commercial
Present Proposed

1 Can per p/u $4.07 $3.80
Monthly Minimum 17.61 16.47

1 Yard Container
per pick up 14.40 14.40

2 Yard Container
per pick up 28.52 28.52

20 Yard Drop Box
Rent N/A 48.00
per pick up N/A 65.00

40 Yard Drop Box
Rent 50.00 50.00
per pick up 80.00 80.00





It is therefore recommended that the Commission allow the proposed tariff revisions proposed by Olympic Disposal to become effective March 1, 1998, as proposed, but require the company to disclose alternative service options to customers and provide quarterly reporting of customer counts and profit and loss statements for the next year.


 

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