Docket UT-971614                                       Page 1 
BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application of     )   DOCKET UT-971614
U S WEST COMMUNICATIONS, INC. for       )
an Order Granting Authority to Receive  )    ORDER GRANTING
Services from U S WEST Information      )  APPLICATION
Technologies, Inc., an Affiliated       )    
Interest.                               )
. . . . . . . . . . . . . . . . . . . . )


  On November 6, 1997, U S WEST Communications, Inc. (USWC), filed an 
application with the Commission under the provisions of chapter 80.16 RCW for 
an order granting authority to enter into a Services Agreement with U S WEST 
Information Technologies, Inc. (IT), an affiliated interest. The services 
include technology system development, enhancement and support.

  USWC and IT are affiliated interests as defined in RCW 80.16.010.

  The Commission neither approves nor disapproves the reasonableness of the 
fees, charges, or accounting allocations involved with the proposed arrangement 
and reserves the right of the Commission to determine the reasonableness of 
those fees, charges, and allocations in any future proceeding dealing with USWC’
s results of operations for rate making purposes.


FINDINGS

  THE COMMISSION FINDS:

  1. U S WEST Communications, Inc., a Colorado corporation, is a public service 
company subject to the jurisdiction of this Commission under the provisions of 
chapter 80.16 RCW.

  2. U S WEST Information Technologies, Inc., is an affiliated interest of U S 
WEST Communications, Inc., as defined in RCW 80.16.010.

  3.  As to form, the application filed herein meets the requirements of 
chapter 80.16 RCW and the rules and regulations adopted pursuant thereto.

  4.  It appears, upon investigation, that the arrangement between U S WEST 
Communications, Inc., and U S WEST Information Technologies, Inc., is 
reasonable and consistent with the public interest and should, therefore, be 
approved.


O R D E R 

  THE COMMISSION ORDERS:

  1. Subject to the conditions of this order, U S WEST Communications, Inc., is 
hereby authorized to enter into a Services Agreement with U S WEST Information 
Technologies, Inc., as described in the application herein.

  2. U S WEST Communications, Inc., shall file with the Commission details of 
the arrangement approved herein, as required by WAC 480-146-091, Reporting of 
Affiliated Interest Transactions.

  3. The reasonableness of the fees, charges or accounting allocations involved 
in carrying out the provisions of ordering paragraph no. 1 of this order are 
neither approved nor disapproved in this proceeding.

  4. Jurisdiction of this proceeding is hereby retained by the Commission for 
the purpose of entering such further orders or of taking any other action it 
may deem necessary and proper in respect to the subjects under consideration in 
this proceeding.

  5. This order shall in no way affect the authority of this Commission over 
rates, service, accounts, valuations, estimates or determination of costs, or 
any matters whatsoever that may come before it, nor shall anything herein be 
construed as an acquiescence in any estimate or determination of costs, or any 
valuation of property claimed or asserted.

  DATED at Olympia, Washington, and effective this  
day of May, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



                             PAUL CURL, Acting Secretary