UW-980669         Page 1
BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matters of 
(1) the Staff Investigation of )
Tall Timber Water Systems, LLC., ) DOCKET UW-980669
being jurisdictional and   )
(2) the removal of     )
Arcadia Utilities, Inc.,   ) ORDER REMOVING COMPANY
from Commission Regulation  ) FROM REGULATION AND 
       ) CANCELING TARIFF
. . . . . . . . . . . . . . . . .  )

  On May 11, 1998, Commission staff instituted a staff investigation to 
determine if Arcadia Utilities, Inc., (Arcadia) remains jurisdictional under 
RCW 80.04.010.

  On March 1, 1997, Tall Timber Water Systems, LLC., took over operation and 
ownership of Arcadia’s water systems. Tall Timber Water Systems, LLC., is 
operated as a for profit water utility and as such is subject to Commission 
jurisdiction.  Tall Timber Water Systems, LLC., has filed a tariff reflecting 
rates and charges applicable to the former customers of Arcadia Utilities, Inc.

  The staff investigation is now complete.  Tall Timber Water Systems, LLC., 
considers the customers and tariff items to be fully part of their business 
structure and the matter closed.

  As a result of this investigation, Arcadia Utilities, Inc., will no longer 
provide water service.  The Commission can remove a 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 
Arcadia Utilities, Inc., from regulation will not be inconsistent with the 
public interest, because the water systems are now operated by Tall Timber 
Water Systems, LLC., which is regulated by this commission.

  From all indications, it appears to be in the public interest to remove 
Arcadia Utilities, Inc. from regulation and cancel the corresponding tariff.

O R D E R

  THE COMMISSION ORDERS:

  1. Arcadia Utilities, Inc., is hereby determined not to be jurisdictional 
pursuant to the Commission staff investigation and documents filed with the 
Commission.

  2. Arcadia Utilities, Inc., is removed from regulation by this Commission and 
its current tariff canceled as of the effective date of this order.

  3. Should Arcadia Utilities Inc., again provide water service to customers, 
the water utility may fall under regulation pursuant to the provisions of RCW 
80.04.010 and 80.04.130.



  DATED at Olympia, Washington, and effective this 27th day of May, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION





      PAUL CURL, Acting Secretary