BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application of )    
GTE NORTHWEST INCORPORATED for an   ) DOCKET UT-950762
Order Approving Three Contracts     )    
with GTE Leasing Corporation        )   ORDER GRANTING
. . . . . . . . . . . . . . . .     ) APPLICATION


          On July 6, 1995, GTE Northwest Incorporated 
(GTE-NW) filed an application with the Commission under the provisions of 
Chapter 80.16 RCW for approval of three contracts with GTE Leasing Corporation 
(GTE Leasing).                    
  
  GTE-NW and GTE Leasing are wholly owned subsidiaries of GTE Corporation and 
are, therefore, affiliated interests as defined in RCW 80.16.010.

  Under the proposed contracts GTE-NW is eligible to participate in the GTE 
Centralized Vehicle Acquisition Program. This program provides the opportunity 
to control vehicle acquisition, leasing and management costs through leveraged 
negotiations.

  The Commission neither approves nor disapproves the reasonableness of the 
fees, charges, or accounting allocations involved with the proposed contracts 
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.  GTE Leasing is an affiliated interest of 
GTE-NW, 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.

  4.  It appears, upon investigation, that the contracts between GTE-NW and GTE 
Leasing are reasonable and consistent with the public interest and should 
therefore be approved.






Docket UT-950762        Page 1

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 the three contracts with GTE Leasing 
Corporation, as described in the application herein.

  2.  GTE Northwest Incorporated shall file with the Commission details of the 
contracts 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    th day of January, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




        CAROLE J. WASHBURN
                                        Secretary