BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



In the Matter of the Application  )
for Sale and Transfer of Assets,  ) DOCKET UW-991327
from Thomas Water Service, Inc.,           )
to Meadowbrook Homeowners  ) ORDER GRANTING APPLICATION
Association     ) FOR SALE AND TRANSFER OF
      ) ASSETS AND TARIFF CHANGES
      )
  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . )

  On August 24, 1999, Thomas Water Service, Inc., (Thomas Water) and 
Meadowbrook Homeowners Association, (MHA) filed an application pursuant to the 
provisions of chapter 80.12 RCW for the sale and transfer of Meadowbrook water 
system.  Meadowbrook water system is located near Arlington and serves fourteen 
(14) customers.  Thomas Water is regulated by this Commission and serves 
approximately 78 customers on two systems located near Arlington.  MHA is a 
Washington nonprofit corporation serving the Meadowbrook homeowners and is not 
subject to regulation by this Commission.

  MHA members accepted their board’s recommendation to purchase the Meadowbrook 
water system January 12, 1999.  The customers of Meadowbrook were notified of 
this proposed sale and transfer August 23, 1999.  The purchase price of all of 
the assets of the Meadowbrook water system is $1.00.  As part of the negotiated 
purchase of the water system, the prior owner has agreed to perform 
approximately $3,000 of upgrades to the water system.  The prior owner will be 
reimbursed these funds through a monthly payment of $20 per lot in the MHA.

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

  The benefits of this sale and transfer include that MHA will own its water 
system, provide its own services and set its own monthly rates.

Monthly Rates     Thomas Water MHA*
Flat rate service     $ 58.00  $ 38.00

* The monthly payment by homeowners to the Association for water service will 
be $38.00 per lot per month ($58.00 the first year to cover the repayment to 
prior owner).

  As a result of this transfer of assets, Thomas Water will no longer own or 
operate Meadowbrook water system and requests the Commission revise its tariff 
by;

   First Revision of Sheet No. 1 
   canceling 
   Original Sheet No. 1,  

   First Revision of Sheet No. 3 
   canceling 
   Original Sheet No. 3, and   

   First Revision of Sheet No. 20
   canceling 
   Original Sheet No. 20.



FINDINGS

 THE COMMISSION FINDS:

 1. Thomas Water Service, 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. Meadowbrook Homeowners Association, a nonprofit corporation, 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 Thomas Water Service, Inc., 
to Meadowbrook Homeowners Association 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 Thomas 
Water Service, Inc., August 24, 1999, and giving consideration to all relevant 
matters and for good cause shown, the Commission finds that the tariff 
revisions should become effective September 27, 1999.


O R D E R

 THE COMMISSION ORDERS:

 1. After the effective date of this order and subject to the provisions 
hereof, Thomas Water Service, Inc., is hereby autho-rized to sell assets and 
Meadowbrook Homeowners Association, is hereby authorized to purchase and accept 
the assets of Meadowbrook water system 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. Thomas Water Service, Inc., acknowledges that any Federal Income Tax 
consequences from this transaction will be the respon-sibility of the company 
stockholders and not company ratepayers.

 4. The tariff revisions filed by Thomas Water Service, Inc., are authorized to 
become effective September 27, 1999, as filed.

  DATED at Olympia, Washington, and effective this 22nd day of 
September 1999.

 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      CAROLE J. WASHBURN
      Secretary