DOCKET UW-981286  Page 1
BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Requested )
Waiver of Statutory Notice in ) DOCKET UW-981286
Connection with the Tariff )
Revisions Filed by ) ORDER GRANTING LESS
H & R Waterworks, Inc. ) THAN STATUTORY NOTICE
 )

  On October 8, 1998, H & R Waterworks, Inc., filed with the Commission 
revisions to its currently effective Tariff 
WN U-1, designated as:

   Second Revision Sheet No. 2
   Canceling
   First Revision Sheet No. 2,

   Second Revision Sheet No. 20
   Canceling
   First Revision Sheet No. 20,

   Fourth Revision Sheet No. 21
   Canceling
   Third Revision Sheet No. 21,

   Fourth Revision Sheet No. 22
   Canceling
   Third Revision Sheet No. 22, and

   Original Sheet No. 35.

  The tariff sheets bear inserted effective dates of November 15, 1998.  This 
date recognizes statutory notice as required.  The company requests, however, 
that statutory notice be waived and that the revisions become effective 
October 15, 1998.

  H & R Waterworks has filed to increase rates to cover increased expenses of 
operations. The company states that this rate increase is requested to improve 
billing and accounting services, and to incorporate the safe drinking water act 
surcharge along with increased operations costs and service improvements.  The 
company has not filed a general rate case since it filed its initial tariff in 
1987.
 
  H & R Waterworks is seeking Less Than Statutory Notice (LSN) treatment to 
coincide with the company's next billing cycle.

  Staff has completed its review of the company’s books and records for the 
test period ending December 31, 1997.  The revised rates should generate 
approximately $54,551 of additional revenue to allow the company the 
opportunity to earn 11.47 percent rate of  return.  By the use of revised 
rates, reduction of one surcharge and incorporation of the Safe Drinking Water 
Act surcharge, the average customer bill will increase to about $33.58 per 
month.  This represents an increase of about $10.31 more than the average 
customer currently pays at $23.27 with the three surcharges.  Staff has 
determined that the revised rates are fair, just, reasonable, and sufficient. 

  Since the tariff revisions filed herein is 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 October 15, 1998.

FINDINGS

  After careful examination of the tariff revisions filed herein by H & R 
Waterworks, Inc., October 8, 1998, and giving consideration to all relevant 
matters and for good cause shown, the Commission finds that the tariff 
revisions should become effective October 15, 1998.

O R D E R

  THE COMMISSION THEREFORE ORDERS That the requested waiver of statutory notice 
in connection with the tariff revisions filed herein by H & R Waterworks, Inc., 
October 8, 1998, is hereby granted, and said tariff revisions shall become 
effective October 15, 1998.

  DATED at Olympia, Washington, and effective this 14th
day of October, 1998.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      ANNE LEVINSON, Chair




      RICHARD HEMSTAD, Commissioner




      WILLIAM R. GILLIS, Commissioner