BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Proposal by  )
      )
PUGET SOUND POWER & LIGHT ) DOCKET NO. UE-951270
COMPANY     )
      )
to Transfer Revenues from PRAM )         ) 
Rates to General Rates   )
.   .   .   .   .   .   .   .   .   .   .   .   .   .  )
      ) 
In the Matter of the Application of  )
      )
PUGET SOUND POWER & LIGHT ) 
COMPANY and WASHINGTON  ) DOCKET NO. UE-960195
NATURAL GAS COMPANY  )
      )
for an Order Authorizing Merger of  )
WASHINGTON ENERGY COMPANY ) 
and WASHINGTON NATURAL  ) TWENTY-THIRD SUPPLEMENTAL
GAS COMPANY with and into PUGET )    ORDER ALLOWING RECORDING 
SOUND POWER & LIGHT COMPANY, ) OF SALE PROCEEDS IN COMPANY 
and Authorizing the Issuance of  ) BOOKS
Assumptions of Obligations, Adoption )
of Tariffs, and Authorizations in   )
Connection Therewith   )
.   .   .   .   .   .   .   .   .   .   .   .   .   .   )  



BACKGROUND
        
  This is a consolidated proceeding in which the Commission has approved the 
merger of Puget Sound Power & Light Company and Washington Natural Gas Company 
into Puget Sound Energy.  A merger joint stipulation was approved in the 
Fourteenth Supplemental Order.  Paragraph 4.d. of the terms of approval in the 
joint stipulation provides, in general, that gains or losses on property sales 
made by the merged company are to be deferred, in the same manner as sales 
governed by an earlier settlement agreement, and considered in the company’s 
next general rate case. One exception is allowed in Paragraph 4.d.  If a 
property sale is a direct result of the merger, and if neither the Commission 
Staff nor Public Counsel objects to the sale, then Puget Sound Energy may 
directly record a gain or loss in the Company’s books.


   
      
     MEMORANDUM

  By letter dated June 10, 1999, Puget Sound Energy informed the Commission 
that it plans to sell its Auburn Stores and Operating Base located at 1400 West 
Main Street, Auburn, Washington, no later than June 15, 1999.  The company 
seeks permission to record the gain associated with this sale in current 
earnings of Puget Sound Energy.

  The company notes that an exception in paragraph 4.d. of the terms of 
approval in the joint stipulation submitted and approved in the 14th 
Supplemental Order in this proceeding allows the company to include the gains 
or losses from property sales that are a direct result of the merger in current 
earnings.  The company argues that this property falls within the exception for 
the following reasons: (1) this property was identified for disposal as a 
direct result of the merger in exhibit T-13; (2) this property was identified 
in a letter to staff dated September 10, 1997, letter to the Commission Staff; 
and (3) the natural gas construction and maintenance crews that resided at this 
facility were relocated and integrated into PSE’s South King and Puyallup 
Service Centers in 1998.

  Neither the Commission Staff nor Public Counsel has objected to inclusion of 
the gain in current earnings.

  PSE should be allowed to record the gain from the sale to the Company’s 
books, and include the gain in current earnings.  

  PSE also seek waiver, in accordance with WAC 480-143-100, of the requirement 
to file an application for Commission determination that the property is not 
necessary or useful, prior to disposing of the property.  WAC 480-143-180 
requires such an application.  

  The Commission will treat the June 10, 1999, letter as seeking an exemption 
from WAC 480-143-180, and will grant the exemption.  

ORDER

  THE COMMISSION ORDERS:

  1. Puget Sound Energy may sell its Auburn Stores and Operating Base located 
at 1400 West Main Street, Auburn, Washington, and may record the gain from the 
sale in the Company’s books.


  2.  Puget Sound Energy is granted an exemption from the requirement in WAC 
480-143-180 that it file an application for Commission determination that the 
property is not necessary or useful prior to disposing of its Auburn Stores and 
Operating Base.


  DATED at Olympia, Washington, and effective this 28th day of
July 1999.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



      
      CAROLE J. WASHBURN,
      Secretary