BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application  )
for Sale and Transfer of Assets,  ) DOCKET UW-990568
from Canterwood Water Company, Inc. )
to Peninsula Light Company           )    ORDER GRANTING APPLICATION
      )    FOR SALE AND TRANSFER OF
      )    ASSETS, GULATING WATER
      )OMPANY ANDANCLING  TARIFF
  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .)

  On April 6, 1999, Canterwood Water Company, Inc., (Canterwood) and Peninsula 
Light Company filed an application, in Docket UW-990568 for approval to 
transfer the assets of the Canterwood water system to Peninsula Light Company. 
Canterwood is currently regulated by this Commission and served approximately 
450 residential customers near Gig Harbor.

  Peninsula Light Company is a private, non-profit, mutual corporation for 
electric and water distribution utilities.  The company is governed by a board 
of nine directors.  Board members are elected from the cooperative membership 
at large. Peninsula Light has a staff of more than 80 employees and serves 
approximately 24,500 electric customers and owns or manages 42 water systems 
with a total of 1,070 customers.  All members of Peninsula Light Company have 
voting authority within the cooperative.

  Peninsula Light Company has included provisions in an agreement to maintain 
Canterwood current rates in effect for a period of five (5) years.  As a result 
of this transfer of assets, Peninsula Light Company will dissolve Canterwood as 
a separate corporation and Canterwood will no longer own or operate water 
systems and the Commission should remove Canterwood from regulation and cancel 
its tariff. 


FINDINGS

  THE COMMISSION FINDS:

  1. Canterwood Water Company, 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. Peninsula Light Company, a mutual corporation, is- not subject to the 
jurisdiction of this Commission.

  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 Canterwood Water Company, 
Inc., to Peninsula Light Company is reason-able and consistent with the public 
interest and should therefore be approved.

  5. After careful examination of the transfer of assets filed herein by 
Canterwood Water Company, Inc., and giving consideration to all relevant 
matters and for good cause shown, the Commission finds that Canterwood Water 
Company, Inc., should be deregulate and its currently effective tariff canceled.

O R D E R

  THE COMMISSION ORDERS:

  1. After the effective date of this order and subject to the provisions 
hereof, Canterwood Water Company, Inc., is hereby autho-rized to sell water 
system assets to Peninsula Light Company under the terms and conditions of the 
proposed agreement filed as an exhibit in the application herein.

  2. Canterwood Water Company, Inc., will forward a copy of Commission Water 
Annual Report.  This report will be for the period of January 1, 1999, to the 
effective date of this order.  The report will include the Regulatory Fee page 
and appropriate fees calculated for the reporting period.  The report will be 
forwarded within 45 days of the effective date of this order.

  3. That the requested deregulation of the Canterwood Water Company, Inc., and 
cancellation of its current tariff is hereby granted.

  DATED at Olympia, Washington, and effective this 12th day of May, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      CAROLE J. WASHBURN
      Secretary