BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of Removing           )
DESERT WATER COMPANY                )   DOCKET UW-971055
from Commission Regulation          )
                                    )   ORDER REMOVING COMPANY
                                    )   FROM REGULATION
. . . . . . . . . . . . . . . . . . )

          On April 24, 1997, in ORDER OF PRELIMINARY APPOINTMENT OF RECEIVER, 
Benton County No. 97-2-00496-6, the Benton County Superior Court ordered that 
Benton County be appointed as receiver of the Desert Water Company public water 
system, which is an investor-owned water company regulated by the Commission.

The court order states that Benton County is not 
subject to WUTC (Commission) jurisdiction and WUTC does not have jurisdiction 
over Benton County acting as receiver of this water system.  

The Commission can remove Desert Water Company from
regulation under the provisions of RCW 80.04.010.  A water company cannot be 
removed from regulation except with the approval of the Commission.  Removing 
Desert Water Company from regulation will not be inconsistent with the public 
interest so far as the company is operated under the supervision of Benton 
County as receiver, and should, therefore, be approved.

It is therefore ordered that Desert Water Company be
removed from regulation by this Commission as of the effective date of this 
order.  It is further ordered that the Commission will again assert 
jurisdiction, at the present Commission approved rate levels, if the court 
returns this company to an investor-owned status.        

DATED and signed at Olympia, Washington, on this 13th
day of August, 1997, and effective the 14th day of August, 1997.


WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



STEVE McLELLAN, Secretary