Agenda Date:       March 25, 1998
Item Number:       2A and 2B

Dockets:       UE-980414 and UE-980261
Company Name:    Puget Sound Energy

Staff:  Roland C. Martin, Energy Regulatory Consultant
  Ken Hua, Revenue Requirements Specialist

Recommendation:

1) Allow the tariff revisions filed by Puget Sound Energy (PSE) in Docket 
UE-980261 to become effective April 1, 1998, as filed.

2) Approve the tariff revisions filed by PSE in Docket UE-980414 and grant PSE’
s request for a waiver of statutory notice to permit an effective date of April 
1, 1998.

Discussion:

On February 27, 1998, PSE filed with the Commission under its Advice No. 98013 
revisions to its currently effective Tariff WN U-60 with a requested effective 
date of April 1, 1998. This filing encompasses several changes to street 
lighting services that the company offers. The proposed revisions effect a 
consolidation of all incandescent and mercury vapor lights presently billed 
under schedules 50, 51 and 52 along with the elimination of Schedule 51. 
Schedule 50 is being filed to include those lights presently on Schedules 51 
and 52 on a single schedule.  There is no change in the monthly rates for any 
of the existing lights to be served under the revised Schedule 50.  The 
consolidated incandescent and mercury vapor lighting services are limited to 
existing lights in their existing locations.

The proposed Schedule 52, Custom Lighting Service, is a new offering of sodium 
vapor and metal halide street light services which is being made in order to 
accommodate the requests by PSE customers for customized lighting which cannot 
be accommodated under the existing schedules.  The monthly rates equal the sum 
of lamp charge and facilities charge.  The lamp charge covers the energy costs 
and is based on current rates under existing schedules.  The facilities charge 
is a specific percent applied to the estimated installed cost of the lighting 
system.  The customer will have three facilities charge options: 1) a monthly 
facilites charge of 1.57% of the estimated installed cost covering taxes, 
depreciation, insurance, return and routine maintenance, 2) a one-time payment 
equal to the estimated installed cost including the effect of Schedule 87 
(Income Tax Rider on Contribution in Aid of Construction) plus a monthly 
facilities charge of .23% of the estimated installed cost covering routine 
maintenance, and (3) a one-time payment equal to the estimated installed cost 
excluding the effect of Schedule 87 plus a monthly facilities charge of .47% of 
the estimated installed cost covering routine maintenance and the effect of 
Schedule 87.  Service will be provided pursuant to a ten year agreement with 
the customer.

As an illustration of the facilities charge options, assuming a custom light 
costs $1,500 to install, a customer will pay: 

 Option 1- a monthly facilities charge of $23.55; 
 Option 2- a monthly facilities charge of $3.45 plus one-time payment for the 
installed       cost and Schedule 87 income tax rider; 
 Option 3- a monthly facilities charge of $7.05 plus one-time payment for the 
installed       cost. 

Dockets UE-980414 and UE-980261
March 25, 1998
Page 1

On March 12, 1998, PSE filed with the Commission under its Advice No. 98014 
revisions to its currently effective Tariff WN U-60, Schedule 120-Electricity 
Conservation Service Rider, bearing an inserted effective of April 12, 1998.  
However, PSE requests that statutory notice be waived and that the revisions 
become effective April 1, 1998.

The purpose of the filing is to make revisions to Schedule 120 so that it is in 
sync with changes made in Schedules 50, 51, and 52, as discussed above.  
Schedule 120 implements surcharges to electric service rates to collect the 
costs incurred in providing conservation services and programs.  The reason for 
requesting waiver of statutory notice is to make the effective date coincident 
with the effective date of the tariffs included in Docket UE-980261.

PSE serves approximately 872,000 electric customers in various areas throughout 
Western and Central Washington.  Of this total, approximately 1,400 customers 
are outdoor lighting customers.

Staff has reviewed the proposed tariff revisions including the rates and terms 
and conditions of service and based on the review findings, the company 
incorporated in its filing certain staff proposed clarifying text changes, 
routine maintenance guarantee options, and technical corrections mutually 
agreed to be appropriate. 

Staff concludes that the proposed tariff revisions in Docket UE-980261 are fair 
and reasonable and therefore, recommends approval of the filing to become 
effective April 1, 1998. Considering the proposed revisions in Docket UE-980414 
do not change rates to customers and effect synchronization with the tariff 
revisions in Docket UE-980261, staff also recommends the Commission approve the 
proposed Schedule 120 revisions and grant the request for waiver of statutory 
notice to permit an effective date of April 1, 1998.