BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Requested      )
Less Than Statutory Notice in       )   DOCKET UW-970808
Connection with the Tariff          )
Revisions Filed by                  )   L.S.N. ORDER
ROCHE HARBOR WATER SYSTEM           )
. . . . . . . . . . . . . . . . . . )


  On May 13, 1997, Roche Harbor Water System (Company) filed with the 
Commission revisions to its currently effective Tariff WN U-1, designated as 
Second Revised Sheet No. W-1 Canceling First Revised Sheet No. W-1 and First 
Revised Sheet No. W-2 Canceling Original Sheet No. W-2.

  The new tariff sheets bear inserted effective dates of July 1, 1997.  These 
dates recognize statutory notice as required.  The Company requests, however, 
less than statutory notice and that the revisions become effective May 30, 1997.

  In order to increase general rates, the Company has filed facilities 
construction charge tariff revisions in this Docket UW-970808, which are lower 
than the tariff revisions proposed in Docket UW-961509 withdrawn. The Company 
is requesting in Docket UW-970808 a general rate increase to recover over a 60 
month period a $242,000 loan amount and 9 1/2% interest charges related to two 
capital improvements: (1) the $153,117 construction cost of a Westcott Bay 
Estates water main replacement and (2) the $84,787 cost of a new completed 
water storage tank.  The monthly loan payment will be $5,133.  The Company will 
collect an estimated $307,996 ($61,599 on an annual basis) over a 60 month 
period.  These funds received shall be treated for rate making purposes as 
customer contributions. These tariff revisions will expire in 60 months on June 
1, 2002, or upon recovery of the principal loan amount of $242,000 plus accrued 
interest, whichever occurs first.

  A Department of Health (DOH) representative has 
indicated to the staff that the two above mentioned capital improvements are 
valid, needed, and required by the DOH.  Both capital improvements are included 
in the Company’s DOH approved “Water System Plan.”




After Commission action on this filing, the Company 
has made arrangements to soon take out a loan for $242,000 to pay for the new 
completed storage tank and the anticipated 1997 construction cost of the 
Westcott Bay Estates water main replacement. 

  Since the tariff revisions filed herein are fair, just, reasonable and 
sufficient, and less than statutory notice treatment is not inconsistent with 
the public interest, it is deemed appropriate that the Company be granted the 
less than statutory notice treatment with an effective date of May 30, 1997. 

  The Company will submit to the Commission quarterly 
reports of the funds received as a result of the facilities construction 
charges.  This report shall consist of information entered on a staff designed 
form.  Quarterly reports are to be filed on an ongoing basis 30 days following 
the last day of each six month calendar period, starting with the six month 
calendar period ending December 31, 1997, and continuing until the end of the 
60 month collection period.  

FINDINGS
Docket UW-970808        Page 1

  After careful examination of the tariff revisions filed herein by Roche 
Harbor Water System, May 13, 1997, and giving consideration to all relevant 
matters and for good cause shown, the Commission finds that the tariff 
revisions should become effective May 30, 1997.  

O R D E R

  THE COMMISSION ORDERS:

  1.   That the requested less than statutory notice treatment in connection 
with the tariff revisions filed herein by Roche Harbor Water System, May 13, 
1997, is hereby granted, and said tariff revisions shall become effective May 
30, 1997.

  2.   The funds received as a result of the facilities construction charges 
shall be treated for rate making purposes as customer contributions.

3.  These tariff revisions will expire in 60 months 
on June 1, 2002, or upon recovery of the principal loan amount of $242,000 plus 
accrued interest, whichever occurs first.

  4.  The Company will submit to the Commission quarterly reports of the funds 
received as a result of the facilities construction charges.  This report shall 
consist of information entered on a staff designed form.  Quarterly reports are 
to be filed on an ongoing basis 30 days following the last day of each six 
month calendar period, starting with the six month calendar period ending 
December 31, 1997, and continuing until the end of the 60 month collection 
period.

  5.  This order shall in no way affect the authority of the Commission over 
rates, service, or accounts, evaluations, 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 and signed at Olympia, Washington, and effective this 28th day of May, 
1997.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



SHARON L. NELSON, Chairman



RICHARD HEMSTAD, Commissioner



WILLIAM R. GILLIS, Commissioner