BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application of  )
Pattison Water Company, Inc.   )  DOCKET UW-991501
for an Order Approving Tariff Revisions. )
      )  ORDER APPROVING
      )  TARIFF REVISIONS
      )
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )

MEMORANDUM

  On September 30, 1999, Pattison Water Company, Inc., (Pattison Water), filed 
with the Commission revisions to its currently effective Tariff WN U-1.  The 
tariff sheets affected are designated as:

  Fourth Revision of Sheet No.  2, canceling 
  Third Revision of Sheet No.  2, and

  Original Sheet No.  24.

  This filing by Pattison Water is for general rates in the amount of 
approximately $12,000 (4.2 percent) of additional revenue per year.  The 
company serves approximately 1,027 customers northeast of Lacey, in Thurston 
County.  The 1027 connections consist of residential customers (940) and two 
mobile home parks (87).

  The company surveyed its customers earlier this year and by a simple majority 
of returned ballots, decided to implement the emergency response equipment 
purchase and installation.  The company sent out 1,026 ballots with 456 ballots 
returned.  Of the returned 456 ballots, 367 (86%) voted yes and 89 (14%) voted 
no.  This emergency response equipment will be used during local power 
outages.  The emergency response equipment will consist of the purchase of a 
back-up electrical generator and the necessary peripheral equipment to support 
its installation and automatic operation.  Surcharge collections will be used 
for a loan repayment.

  The company’s last general rate increase was August 1995.  The average 
residential customer would see an increase of approximately $1.00 per month 
($12.00 annually.) The current and proposed rates are provided below:

Monthly Rate      Current Proposed

Capital Improvement Surcharge      N/A  $   1.00

  The funds received for emergency generator surcharges will be deposited into 
a separate reserve account exclu-sively for the purpose of making electrical 
emergency power improvements identified as part of the company's capital 
improvements requested by customers. This separate reserve account will be 
listed on all company financial records and will be considered a cash account 
asset (NARUC account #127).  Expenditures from the reserve account will be 
treated as customer contri-butions for ratemaking purposes.  Pattison Water has 
agreed to provide quarterly reports.


FINDINGS

  THE COMMISSION FINDS:

  1. Pattison Water Company, Inc., a Washington business, is a public service 
company subject to the jurisdic-tion of this Commission under the provisions of 
Title 80 RCW.

  2. As to form, the application herein, meets the require-ments of Title 80 
RCW and the rules and regulations of the Commis-sion adopted pursuant thereto.

  3. It appears, upon investigation, that the tariffs for an emergency response 
equipment surcharge are reasonable and consis-tent with the public inter-est 
and should therefore be ap-proved.


O R D E R 

  THE COMMISSION ORDERS:

  1. Subject to the conditions of this order, it is hereby authorized that the 
filing herein filed September 30, 1999, will become effective November 1, 1999.

  2. The average residential customer would see an increase of approximately 
$1.00 per month ($12.00 annually.)  The surcharge will expire October 31, 2002, 
or upon recovery of the loan principal ($30,000), plus interest charges and 
taxes, whichever comes first.

  3. The funds received as a result of the emergency generators surcharges will 
be deposited into a separate reserve account exclu-sively for the purpose of 
making emergency response equipment improvements identified as part of the 
company's survey and proposal.  This separate reserve account will be listed on 
all company financial records and will be considered a cash account asset 
(NARUC account #127).  Expenditures from the reserve account will be treated 
for ratemaking purposes as customer contri-butions.

  4. The company will submit to the Commission quarter-ly reports of the 
separate reserve account.  This report will consist of a Commission 
staff-approved Quarterly Report form.  Quarterly reports are to be filed 30 
days following the last billing date of each quarter, starting with the quarter 
ended March 31, 2000, and continuing until notified by Commission staff letter 
to be no longer necessary or expiration of the affected tariff.

  5. This order shall in no way affect the authority of this Commission over 
rates, service, or accounts, evaluations, esti-mates, or determination of cost 
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 cost or any 
valuation of property claimed or asserted.

  DATED at Olympia, Washington, and effective this 27th day of October, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      CAROLE J. WASHBURN
      Secretary