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CONTACT: Kyle DeVine             April 19, 1996   CPUC - 515
         213-897-4225                             (Res. W-3985)
           CPUC APPROVES SEARLES WATER REVENUE INCREASE
    The California Public Utilities Commission (CPUC) approved
today a $130,000 or 45 percent revenue increase for Searles
Domestic Water Company (Searles), effective in five days.
    This is the first rate increase since 1986.  The company has
been operating at a loss for several years.  It had not filed for
an increase sooner because it was being transferred from
Kerr-McGee Chemical Company to North American Chemical Company.
    Searles serves more than 1,000 customers in Argus, Trona,
South Trona, Pioneer Point, and Borosolvay communities in San
Bernardino County.
    The residential customer who uses the system-wide average of
1,100 cubic feet of water a month will see an increase of $9.62,
from the current $19.19 to $28.81.  The residential service charge
will increase $2.70, from the current $6.05 a month to $8.75.
Residential usage rates will be $1.42 per hundred cubic feet of
water for the first 800 cubic feet used, $2.90 per hundred cubic
feet of water for the next 3,200 cubic feet, and $4.77 per hundred
cubic feet of water for use exceeding 4,000 cubic feet.
    The Trona schools protested the magnitude of Searles' original
request to increase school rates by 219 percent.  In response, the
Commission has set school rates so they will be no greater than
90 percent.  The monthly service charge for a 5/8 inch meter will
increase $7.45, from the current $7.55 to $15.00.  Water use rates
will be $1.07 for the first 3,000 cubic feet of water used, $1.60
for the next 22,000 cubic feet, and $2.47 for use exceeding 25,000
cubic feet of water.
    Searles is permitted to collect a late payment fee of 1.5
percent on delinquent bills.  The company is authorized to
increase its deposit from $10.00 to twice the estimated average
bill.  Also, if a tenant in a residential unit leaves owing a
bill, Searles may protect itself from future unpaid bills
by putting future service at that unit in the landlord's name.
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