BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application  )
for Sale and Transfer of Assets,  ) DOCKET UW-990493
from American Water Resources, Inc., )
to Mr. John Wheatley   ) ORDER GRANTING APPLICATION
      ) FOR SALE AND TRANSFER OF
      ) ASSETS AND TARIFF CHANGES ON
      ) LESS THAN STATUTORY NOTICE
  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . )

  On March 26, 1999, American Water Resources, Inc., (American Water) and Mr. 
John Wheatley filed an application, in Docket UW-990493 for approval to 
transfer the assets of the Legacy #1, #2, and #3 water systems to Mr. Wheatley. 
American Water is regulated by the Washington Utilities and Transportation 
Commission (Commission) and serves approximately 1,840 residential customers in 
six counties.

  Since the initial transfer of these water systems two years ago, Mr. Wheatley 
contended he owned the systems and not the former manager.  Mr. Wheatley 
contended the manager had no legal right to sell the systems without consulting 
him. Over the last year, American Water and Mr. Wheatley have been able to 
reach a mutually agreeable settlement to reverse the initial sale and 
transfer.  Mr. Wheatley will pay American Water for all outstanding water 
service bills and reasonable compensation for services.  American Water will 
relinquish all ownership claims.

  As a result of this transfer of assets, American Water will no longer own or 
operate water systems in Cowlitz County and requests the Commission revise its 
tariff by;

   First Revision of Sheet No. 15.3 
   canceling 
   Original Sheet No. 15.3.  

  The tariff sheet bears an inserted effective date of May 1, 1999.  This date 
recognizes statutory notice as required.  The company requests, however, that 
statutory notice be waived and that the revisions become effective April 15, 
1999, on less than statutory notice (LSN).  American Water has requested LSN 
treatment to expedite the matter and complete the transfer back to the original 
owner.

  Legacy #1, #2, and #3 currently serve three residential lots.  Mr. Wheatley 
owns two of these lots.  Staff believes this transfer of assets is in the 
public interest as it places the water systems’ ownership and operation under 
one of the current customers. Legacy #1, #2, and #3 assets include but are not 
limited to all  water rights, easements and access to; all equipment, wells, 
springs, tanks, pumps,  and all water mains for operation of the water systems.



  The Commission has received no customer comments in regards to this filing.

Docket UW-990493        Page 1
FINDINGS

 THE COMMISSION FINDS:

 1. American Water Resources, Inc., a Washington utility-, is a public service 
company subject to the jurisdiction of this Commission under the provisions of 
chapter 80.12 RCW.

 2. Mr. John Wheatley, a sole proprietor, is- not subject to the jurisdiction 
of this Commission under the provisions of chapter 80.12 RCW.

 3. As to form, the application herein, meets the require-ments of chapter 
80.12 RCW and the rules and regulations of the Commission adopted pursuant 
thereto.

 4. The sale and transfer of the proposed assets by American Water Resources, 
Inc., to Mr. John Wheatley is reason-able and consistent with the public 
interest and should therefore be approved.

 5. After careful examination of the tariff revisions filed herein by American 
Water Resources, Inc., February 26, 1999, and giving consideration to all 
relevant matters and for good cause shown, the Commission finds that the tariff 
revisions should become effective April 15, 1999.

O R D E R

 THE COMMISSION ORDERS:

 1. After the effective date of this order and subject to the provisions 
hereof, American Water Resources, Inc., is hereby autho-rized to sell assets 
and Mr. John Wheatley, is hereby authorized to purchase and accept the assets 
of Legacy #1, #2, and #3 under the terms and conditions of the proposed 
settlement filed as an exhibit in the application herein.

 2. 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 acquies-cence in any estimate or determination of costs or any 
valuation of property claimed or asserted.





 3. Companies acknowledge that any Federal Income Tax consequences from this 
transaction will be the respon-sibility of the company stockholders and not 
company ratepayers.

 4. That the requested waiver of statutory notice in connection with the tariff 
revision filed herein by American Water Resources, Inc., March 26, 1999, is 
hereby granted, and said tariff revision shall become effective April 15, 1999.

  DATED at Olympia, Washington, and effective this 14th day of April 1999.

 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      CAROLE J. WASHBURN
      Secretary