DOCKET UE-971591  Page 1
 


BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Requested )
Waiver of Statutory Notice in )  DOCKET UE-971591
Connection with the Tariff ) 
Revision Filed by  ) ORDER GRANTING LESS
Puget Sound Energy ) THAN STATUTORY NOTICE
 )


  On October 31, 1997, Puget Sound Energy (PSE or Company) filed with the 
Commission under Advice No. 97-21, a revision to its Tariff WN U-60.  The 
revisions are designated upon each rate schedule previously approved by the 
Commission in Docket UE-971102 for the Company's Power of Choice open access 
pilot program. 

  The filed tariff sheets denote an effective date of December 1, 1997.  This 
date recognizes statutory notice as required.  The Company requests, however, 
that statutory notice be waived and that the Commission issue an order 
approving the tariff changes effective November 6, 1997.

  The purpose of the filing is to make revisions to the Company's Power of 
Choice pilot program schedules so that they are consistent with the Company's 
related filing before the Federal Energy Regulatory Commission (FERC).  In its 
request, the Company notes that FERC has required that any unbundled retail 
transmission service, including service under a pilot program such as PSE's 
Power of Choice program, shall be provided under the transmission provider's 
FERC-jurisdiction open access transmission tariff.  PSE's open access 
transmission tariff is currently pending before FERC in Docket OA-96-161-000.

  As approved by the Commission, the Power of Choice pilot program tariff 
sheets do not include separate charges for unbundled transmission service. 
Those charges are embedded in the pilot delivery rates.  The proposed revised 
tariff sheets, reflect separately stated transmission charges.  Accordingly, 
the delivery charges are reduced by the same amount and there is no net change 
in price to pilot customers or alternate suppliers. 

  The proposed transmission charges are based on a methodology whereby a FERC 
transmission revenue requirement is classified and allocated to pilot program 
customers based on PSE's currently effective Commission-approved procedures.

  In the Order approving PSE's Power of Choice pilot program (UE-971102), the 
Commission recognized the potential implications of FERC's assertion of 
jurisdiction over the transmission service portion of PSE's pilot program.  In 
Findings of Fact numbers seven and eight, the following were required:

_The Company, Commission Staff, and Public Counsel should work together to 
develop any necessary FERC applications and requests to permit the pilot 
program to proceed.

_If any changes to the bundled pilot program service tariffs are required by 
FERC, then the Company must report on the implications of these changes and 
refile the pilot program tariffs with the Commission if the changes are 
material. 


  The proposed revisions are consistent with the Commission's requirements in 
Docket UE-971102.  Because the proposed tariff revisions do not change the net 
effective rates to pilot program customers, the Company requests that the 
Commission allow a waiver of the 30-day statutory notice period.

  Since the tariff revisions filed herein are fair, just and reasonable, and 
waiver of statutory notice is not inconsistent with the public interest, it is 
deemed appropriate that the Company be granted the waiver it is requesting with 
an effective date of November 6, 1997. 

FINDINGS

  1. After careful examination of the tariff revision filed herein by Puget 
Sound Energy, on October 31, 1997, and giving consideration to all relevant 
matters and for good cause shown, the Commission finds that the tariff revision 
should become effective November 6, 1997.

  2. In Docket UE-971102, the Commission indicated that any application to the 
FERC related to PSE's customer choice pilot does not constitute explicit or 
implicit approval by the Commission of any specific facility or functional 
split between distribution and transmission services.  The Commission again 
reiterates that position.  



  3. By approving the requested changes to PSE's Power of Choice pilot program 
schedules, the Commission does not indicate general acceptance of FERC 
jurisdiction over the rates, terms, and conditions of service for unbundled 
retail  transmission service. 



O R D E R

  THE COMMISSION THEREFORE ORDERS That the requested waiver of statutory notice 
in connection with the tariff revision filed herein by Puget Sound Energy, on 
October 31, 1997, is hereby granted, and said tariff revision shall become 
effective November 6, 1997.

  DATED at Olympia, Washington, and effective this   th day of November, 1997.  

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




       STEVE McLELLAN
       Secretary