Media contact: 360-664-1116 or media@utc.wa.gov
Docket number: UW-240151
LACEY, Wash. – Yesterday, the Utilities and Transportation Commission rejected a revised proposed settlement submitted by Cascadia Water, LLC (Cascadia Water) and commission staff on Jan. 22, 2025. The settlement would have increased Cascadia Water’s revenue by $1.51 million, or approximately 63%. Across all Cascadia Water systems, customers would have seen rate increases ranging from 13% to 142% at the end of the proposed three-year rate plan.
Cascadia Water sought to recover funds spent to support 14 capital projects including reservoir, pumphouse, booster pump, and water main replacement, installation or replacement of treatment systems, and the purchase of back-up generators.
The proposed settlement reviewed by the commission is a results-only settlement. Results-only settlements can help identify agreement among parties on the outcome without the need to agree on all inputs in the rates. Settled cases can also help reduce overall costs. While rate case efficiency is important, the commission must determine that a rate is fair, just, reasonable, and sufficient, and in the public interest.
The commission found that Cascadia Water did not provide adequate documentation of their decision making and analysis related to the initiation and implementation of five of the capital projects. Additionally, because the settlement is results-only, the commission could not reasonably adjust the settlement’s revenue requirement to arrive at fair, just, reasonable, and sufficient rates.
Cascadia Water must decide whether to voluntarily extend its currently suspended proposed tariff by April 29, 2025. Doing so would give the commission time to resume the adjudication at the point where it was stopped to consider the proposed settlement. If Cascadia Water declines to extend the tariff filing, the commission will reject the filing.
Cascadia Water, LLC was formed in 2018 and is a wholly-owned subsidiary of NW Natural Water Company, LLC. They provide water service for nearly 4,000 connections, primarily in Western Washington.
The UTC regulates the rates and services of investor-owned electric utilities, telecommunications companies, natural gas and water companies, solid waste collection companies, household-goods movers and passenger transportation companies, commercial ferries, pipeline companies, marine pilotage, and a low-level radioactive waste repository. The commission does not regulate the rates of broadband services, cellular, cable, or Internet service.
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