BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application of )
Kala Point Utility Co.  . )  DOCKET UW-960714
for an Order Granting Tariff Revision. )
      )  ORDER GRANTING
      )  TARIFF REVISION
      )
. . . . . . )

  On May 30, 1996, Kala Point Utility Co. (Kala Point) filed for a general rate 
increase of $15,120 in the form of a surcharge under RCW 80.28.022.  The 
company received its last general rate increase effective March 1995.  Kala 
Point serves approximately 420 active customers near Port Townsend.

  The company is requesting the rate increase to cover cost of a new water 
treatment system upgrade  The annual customer revenue impact of this filing 
will be approximately $36. The surcharge is to apply to all water customers 
served by the company.  Surcharge is to expire July 1, 2001, or upon recovery 
of the loan principle ($69,000) and interest charges, whichever comes first.

  The funds received as a result of the 1996 Water Treatment 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. Kala Point Utility Co., 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 Water Treatment 
Upgrade Surcharge is reasonable and consis-tent with the public inter-est and 
should therefore be ap-proved.


Docket UW-960714         Page 2


O R D E R 


  THE COMMISSION ORDERS:

  1. Subject to the conditions of this order, Kala Point Utility Co. is hereby 
authorized that the filing herein filed May 30, 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 Water Treatment 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-960714         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