BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application of )
Burton Water Company  . )  DOCKET UW-960620
for an Order Granting Tariff Revision. )
      )  ORDER GRANTING
      )  TARIFF REVISION
      )
. . . . . . )

  On May 8, 1996, Burton Water Company (Burton Water) filed for a general rate 
increase of $21,000 in the form of a surcharge under RCW 80.28.022. The company 
received its last general rate increase effective April 1994.  Burton Water 
serves approximately 390 active customers and several commercial customers on 
Vashon Island.

  The company is requesting the rate increase to cover partial cost of a new 
100,000 gallon storage tank  The annual customer revenue impact of this filing 
will be approximately $54. The surcharge is to apply to all water customers 
served by the company.  Surcharge is to expire July 1, 2002, or upon recovery 
of the loan principle ($99,748) and interest charges, whichever comes first.

  The funds received as a result of the 1996 Storage Tank Upgrade Surcharge 
will be deposited into a separate reserve account exclu-sively for the purpose 
of making capital improvements identified as part of the company's water system 
plan approved by the Department of Health. This separate reserve account shall 
be listed on all company financial records and shall be considered a cash 
account asset (NARUC account #127).   Expenditures from the reserve account 
shall be subject to prior written approval of Commission staff, and shall be 
treated for rate-making purposes as customer contri-butions.

FINDINGS

  THE COMMISSION FINDS:

  1. Burton Water Company a Washington business, is a public service company 
subject to the jurisdic-tion of this Commission under the provisions of 
Title 80 RCW.

  2. As to form, the application herein, meets the require-ments of Title 80 
RCW and the rules and regulations of the Commis-sion adopted pursuant thereto.

  3. It appears, upon investigation, that the tariff for 1996 Storage Tank 
Upgrade Surcharge is reasonable and consis-tent with the public inter-est and 
should therefore be ap-proved.

Docket UW-960620         Page 2


O R D E R 


  THE COMMISSION ORDERS:

  1. Subject to the conditions of this order, Burton Water Company is hereby 
authorized that the filing herein filed May 8, 1996 be and the same shall 
become effective July 1, 1996.

  2. No material change, revision, or amendment to the agreement described in 
ordering paragraph number 1 of this order shall become effective without the 
Commission's prior written approval.

  3. The funds received as a result of the 1996 Storage Tank Upgrade Surcharge 
will be deposited into a separate reserve account exclu-sively for the purpose 
of making capital improvements identified as part of the company's water system 
plan approved by the Department of Health.  This separate reserve account shall 
be listed on all company financial records and shall be considered a cash 
account asset (NARUC account #127).  Expenditures from the reserve account 
shall be subject to prior written approval of Commission staff, and shall be 
treated for rate-making purposes as customer contri-butions.

  4. The company will submit to the Commission quarter-ly reports of the 
separate reserve account.  This report shall consist of Commission staff 
approved Quarterly Report form.  Quarterly reports are to be filed 30 days 
following the last billing date of each quarter, starting with the quarter 
ended September 30, 1996, and continuing until notified by Commission staff 
letter to be no longer necessary.

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

Docket UW-960620         Page 3

  DATED at Olympia, Washington, and effective this       
day of  June, 1996.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




     SHARON L. NELSON, Chairman



     RICHARD HEMSTAD,  Commissioner



     WILLIAM R. GILLIS,  Commissioner