BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application of )    DOCKET UT-950114
GTE NORTHWEST INCORPORATED          )
for an Order Approving an           )     ORDER GRANTING
Agreement with GTE Data Services    )       APPLICATION
Incorporated                        )        
. . . . . . . . . . . . . . . .     )


          On September 30, 1995, GTE Northwest Incorporated 
(GTE-NW) filed an application with the Commission under the provisions of 
Chapter 80.16 RCW for an order approving 1993 and 1994 agreements with GTE Data 
Services Incorporated (GTEDS), an affiliated interest.
  
  GTE-NW and GTEDS are wholly owned subsidiaries of GTE Corporation and are, 
therefore, affiliated interests as defined in RCW 80.16.010.

  GTE-NW filed supplemental applications in this proceeding on August 17, 1995, 
November 7, 1995, April 16, 1996, March 19, 1997, and April 11, 1997, 
reflecting pricing revisions, a revised signature page and a new Schedule F to 
Attachment 2 of the rate schedules.

  Under the terms of the proposed agreement, GTEDS provides professional 
services and computer operations to GTE-NW.

  The Commission neither approves nor disapproves the reasonableness of the 
fees, charges, or accounting allocations involved with the proposed arrangement 
and reserves the right to review those fees, charges, or allocations in a 
future rate proceeding.
 
FINDINGS
 
  The Commission finds:

  1.  GTE-NW, a Washington corporation, is a public service company subject to 
the jurisdiction of this Commission under the provisions of chapter 80.16 RCW.

  2.  GTEDS is an affiliated interest of GTE Northwest Incorporated, as defined 
in RCW 80.16.010.

  3.  As to form, the application filed herein meets the requirements of 
chapter 80.16 RCW and the rules and regulations adopted pursuant thereto.




Docket UT-950114                                           Page 2


  4.  It appears, upon investigation, that the arrangement between GTE-NW and 
GTEDS is reasonable and consistent with the public interest and should 
therefore, be approved.


O R D E R

  THE COMMISSION ORDERS:

  1.  Subject to the conditions of this order, GTE Northwest Incorporated is 
hereby authorized to enter into 1993 and 1994 agreements with GTE Data Services 
Incorporated, including amendments thereto, as described in the application 
herein.

  2.  GTE Northwest Incorporated shall file with the Commission details of the 
arrangements described in ordering paragraph no. 1 of the order herein, as 
required by WAC 480-146-091, Reporting of Affiliated Interest Transactions.

  3.  The reasonableness of the fees, charges or accounting allocations 
involved in carrying out the provisions of ordering paragraph no. 1 of this 
order are neither approved nor disapproved in this proceeding.

  4.  Jurisdiction of these proceedings is hereby retained by the Commission 
for the purpose of entering such further orders or of taking any other action 
it may deem necessary and proper in respect to the subjects under consideration 
in these proceedings.

  5.  This order shall in no way affect the authority of this Commission over 
rates, service, or accounts, valuations, estimates, or determination of cost or 
any matters whatsoever that may come before it, nor shall anything herein be 
construed as an acquiescence in any estimate or determination of cost or any 
valuation of property claimed or asserted.

  DATED at Olympia, Washington, and effective this 
30th day of December, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




        CAROLE J. WASHBURN
                                        Secretary