BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
In the Matter of the Investigation into          )
the Propriety and Adequacy of Certain          )
Depreciation and Amortization Rates of          )         DOCKET NO. UG-991923 
                                                       )
Cascade Natural Gas                             )
Corporation                               )
                                                       )         ORDER 
AUTHORIZING REVISED 
And the Changes, if any, That Should          )         DEPRECIATION AND
Be Ordered to Such Rates                            )         AMORTIZATION RATES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   )
BACKGROUND 
                  On December 9, 1999, in Docket No. UG-991923, Cascade Natural 
Gas Corporation (Cascade or Company) filed with the Commission a depreciation 
rate accrual study for its Washington State plant and equipment. Cascade 
requested a July 1, 1998 effective date for the revised depreciation rates. The 
depreciation rate revisions, as proposed by Cascade, would result in a decrease 
in depreciation accruals of $1.64 million annually.
DISCUSSION
                  Staff examined the depreciation study data for Cascade and is 
in full agreement as to the future depreciation parameters and rates for 
Cascade's Washington State plant and equipment. However, the Company failed to 
properly file and gain approval before implementing the proposed depreciation 
rates on July 1, 1998, creating a depreciation reserve imbalance. Staff and the 
Company have discussed the appropriate effective date of the proposed 
depreciation rates. As a result of those discussions, Staff and Cascade have 
agreed with January 1, 2000, as the effective date of the depreciation 
parameters and rates for Cascade's Washington plant and equipment. Further, 
Staff and Cascade proposed that all reports provided to the Commission will 
reflect the authorized depreciation rates with a January 1, 2000, effective 
date and include an additional amortization of the imbalance, created by 
Cascade's failure to file for implementation of its depreciation study on a 
timely basis, for an 18 month period beginning January 1, 2000.
                  The change in total annual depreciation accruals results in a 
decrease in the overall depreciation rate from 3.37 percent to 2.96 percent. 
The Commission authorizes the revised depreciation and amortization parameters, 
rates, and expenses to be effective January 1, 2000. The Commission found that 
the proposed depreciation and amortization rates are appropriate and should be 
adopted and directed the secretary to enter the following Order and related 
provisions.
ORDER
                 THE COMMISSION ORDERS That: 
1.          The authorized depreciation rates and parameters in the attached 
Schedules 1 and 2 to this Order, are approved to be effective as of January 1, 
2000. 
2.          The reserve imbalance created by Cascade's failure to file for 
approval prior to implementing rates on July 1, 1998, must be amortized over 18 
months beginning January 1, 2000.
3.          All regulatory operating reports submitted to the Commission over 
the amortization period must reflect authorized rates effective January 1, 
2000, plus an amortization to reduce the depreciation reserve imbalance.
4.          The Company must submit supplements to its 1998 and 1999 FERC Form 
2s to this Commission reflecting authorized depreciation rates during those 
periods. 
                  DATED at Olympia, Washington, and effective this 28th day of 
June 2000.
WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
                                                     CAROLE J. WASHBURN
                                                     Secretary