Docket UT-980149                                        Page 1 
BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Petition )
of U S WEST Communications,   )
Inc. to Increase Expense Limit)  DOCKET UT-980149
from $500 to $2,000, pursuant )  
to 47 C.F.R. Sec. 32.2000, as )  ORDER GRANTING PETITION
Amended     )
______________________________)



 On February 2, 1998, U S WEST Communications, Inc. (U S WEST) filed a petition 
pursuant to WAC 480-120-031 and the Commission’s rules, to adopt a change in 
its state accounting standards to conform to FCC Part 32 Uniform System of 
Accounts (USOA), effective on January 1, 1998.

The first of the two accounting changes proposed would increase the dollar 
level below which asset purchases could be charged to expense accounts from 
$500 to $2,000,for the following plant accounts:

2112, Motor Vehicles
2113, Aircraft
 2114, Special Purpose Vehicles
 2115, Garage Work Equipment
 2116, Other Work Equipment
 2122, Furniture
 2123, Office Equipment
 2124, General Purpose Computers

An exception would be personal computers recorded in Account 2124, General 
Purpose Computers, which would continue to be subject to the $500 expense 
limit.   

The second proposed accounting change would establish a five-year amortization 
period for recovery of the undepreciated portion of embedded assets affected by 
the expense limit change.

US WEST states that granting its petition would allow it to keep a uniform 
expensing methodology on both state and federal levels.

The Commission has reviewed US WEST’s petition and believes it should be 
approved.  However, the Commission’s approval of the accounting treatment 
requested by US WEST should not be construed as a determination of ratemaking 
treatment.  The Commission will reserve the right to determine the ratemaking 
treatment of these issues in future US WEST rate proceedings.


FINDINGS

 THE COMMISSION FINDS:

 1.  U S WEST Communications, Inc., a Washington corporation, is a public 
service company subject to the jurisdiction of this Commission under the 
provisions of chapter 80.36 RCW.

 2.  As to form, the application filed herein meets the requirements of WAC 
480-120-031.

 3.  After review, the Commission finds that US WEST’s petition to amend its 
state accounting standards regarding expense limits on purchased assets to 
conform to FCC Part 32 Uniform System of Accounts (USOA), effective on January 
1, 1998, should be approved.

 4.  Approval of US WEST’s accounting petition should not be construed as 
approval of any particular ratemaking treatment.


O R D E R 

 THE COMMISSION ORDERS:

 1.  Subject to the conditions of this order, the petition by U S WEST 
Communications, Inc. to adopt a change in its state accounting standards to 
conform to FCC Part 32 Uniform System of Accounts (USOA)regarding expense 
limits on purchased assets, effective on January 1, 1998, is approved.

 5.  This order shall in no way affect the authority of this 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 at Olympia, Washington and effective this 25th day of June, 1998.

 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


                              Carole J. Washburn,         Secretary