BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
In the Matter of the Application                   )
for Sale and Transfer of Assets,                 )         DOCKET UW-000347
from Mirrormont Services, Inc.                         )
to                                                        )         ORDER 
GRANTING APPLICATION 
Washington Water Service Company                )         FOR SALE AND TRANSFER 
OF 
                                                                 )         
ASSETS AND TARIFF ADOPTION 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   ) 
BACKGROUND 
                  On March 10, 2000, Mirrormont Services, Inc., (Mirrormont) 
and Washington Water Service Company filed an application, in Docket UW-000347 
for approval to transfer water system assets of Mirrormont to Washington Water 
Service Company. Mirrormont is currently regulated by this Commission and 
serves approximately 715 residential customers near Issaquah, in King County.
                  Washington Water Service Company is a Washington corporation 
formed to act as a utility company. Washington Water Service is a wholly owned 
subsidiary of California Water Service Group located in San Jose, California. 
California Water Service Group currently owns 21 operating districts serving 
more than 400,000 customers in California. Washington Water Service Company 
located in Seattle currently owns two operating districts in Washington with 
approximately 9,000 customers. 
                  The benefits of this acquisition of water system assets 
include expanded financial resources, in house engineering, and water quality 
staff to provide all aspects of water system repair and operations. Washington 
Water Service, through its Harbor district, will operate the water system.
                  As a result of this sale and transfer of water system assets 
Washington Water Service Company will maintain Mirrormont rates currently in 
effect. Washington Water Service will be adopting the tariff of Mirrormont.
                  This Commission neither approves nor disapproves the 
reasonableness of any fees, charges, rates, or accounting allocations involved 
with the proposed arrangement and reserves the right to review those fees, 
charges, rates, or accounting allocations in a future rate proceeding.
FINDINGS
                 THE COMMISSION FINDS: 
                 1.          Mirrormont Services, Inc., a Washington utility, 
and Washington Water Service Company, a Washington utility, are public service 
companies subject to the jurisdiction of this Commission under the provisions 
of chapter 80.12 RCW. 
                 2.          As to form, the application herein, meets the 
requirements of chapter 80.12 RCW and the rules and regulations of the 
Commission adopted pursuant thereto. 
                 3.          The sale and transfer of water system assets by 
Mirrormont Services, Inc., to Washington Water Service Company is reasonable 
and consistent with the public interest and should therefore be approved.
O R D E R 
                 THE COMMISSION ORDERS: 
                 1.          After the effective date of this order and subject 
to the provisions hereof, Mirrormont Services, Inc., is hereby authorized to 
sell water system assets to Washington Water Service Company under the terms 
and conditions of the proposed agreement filed as an exhibit in the application 
herein.
                 2.          No material change, revision, or amendment to the 
application and agreement shall become effective without the Commission's prior 
written approval. 
                 3.          Washington Water Service Company shall file with 
the Commission within 60 days after the effective date of this order, the 
journal entries by which it proposes to record on its books the transfer of 
water system assets authorized herein.
                 4.          The reasonableness of any fees, charges, rates, or 
accounting allocations involved in carrying out the provisions of ordering 
paragraph no. 1 of this Order are neither approved nor disapproved in this 
proceeding.
                  DATED at Olympia, Washington, and effective this 12th day of 
April, 2000. 
                  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
                                                     CAROLE J. WASHBURN
                                                     Secretary