BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
In the Matter of the Request of
NORTHWEST NATURAL GAS COMPANY
for an Order Establishing Compliance With RCW 80.08.040 With Respect to the 
Proposed Issuance and Sale of Not More Than an Additional $100,000,000 
Principal Amount of Medium-Term Notes, Series B
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	)	DOCKET UG-001261
		ORDER ESTABLISHING COMPLIANCE WITH 
		RCW 80.08.040 

BACKGROUND 
        1.          On August 21, 2000, Northwest Natural Gas Company 
(Northwest or Company), filed an application with the Commission under the 
provisions of RCW 80.08.040 for an order establishing compliance with that 
statute. The filing concerns the Company's proposed offering, issuance and 
sale, from time to time, of up to an additional $100,000,000 aggregate 
principal amount of its Medium-Term Notes, Series B, consisting of Secured 
Notes and Unsecured Notes.
        2.         The Secured Notes will be issued and sold under the 
Twentieth Supplemental Indenture, dated as of June 1, 1993, to the Company's 
Mortgage and Deed of Trust, dated as of July 1, 1946, to Bankers Trust Company 
and R. G. Page (Stanley Burg, successor), as trustees. The Commission 
authorized the Company to enter into the Twentieth Supplemental Indenture in 
its Order dated May 12, 1993, in Docket UG-930502. The Unsecured Notes will be 
issued under the Indenture with Bankers Trust Company, as trustee, dated as of 
June 1, 1991, which was authorized by the Commission in its Order dated May 15, 
1991, in Docket UG-910435.
        3.          The Commission has previously entered its Order in Docket 
UG-961639 establishing that Northwest Natural Gas has complied with the 
requirements of RCW 80.08.40 with respect to its proposed issuance of 
$150,000,000 of Medium-Term Notes, all of which have been issued. In addition, 
the Commission previously entered its Order in Docket UG-980812 (Previous 
Order) establishing that the Company has complied with the requirements of RCW 
80.08.40 with respect to the proposed issuance of an additional $100,000,000 of 
Medium-Term Notes, of which $83,000,000 remain unissued.
        4.          RCW 80.08.040 requires the Company to file certain 
information with the Commission and authorizes the Company, at its option, to 
request the Commission to enter an order that the Company has complied with the 
requirements of RCW 80.08.040. The Company has filed the information required 
by RCW 80.08.040 and has requested that the Commission confirm that the Company 
has complied with the requirements of RCW 80.08.040.

        5.          This matter was brought before the Commission at its August 
30, 2000 regularly scheduled open meeting. The Commissioners, having been fully 
advised in the matter, and having determined the following order to be 
consistent with RCW 80.08.040 directed the Secretary to enter the following 
order and related provisions.
FINDINGS 
        THE COMMISSION FINDS: 
        6.          Northwest, an Oregon corporation, is a public service 
company subject to the jurisdiction of this Commission under the provisions of 
chapter 80.08 RCW. 
        7.          As to form, the application and information filed herein 
meet the requirements of chapter 80.08 RCW and the rules and regulations of the 
Commission adopted pursuant thereto.
        8.          The Company's application in this Docket contains: (a) a 
description of the purposes for which the issuance is made and a certification 
by an officer that the proceeds from such financing are to be used for one or 
more of the purposes allowed by chapter 80.08 RCW; (b) a description of the 
proposed issuance, including the terms of financing; and (c) a statement as to 
why the proposed transaction is in the public interest.
        9.          An order consistent with the above findings should be 
entered.
ORDER
        THE COMMISSION ORDERS: 
        10.          Northwest Natural Gas Company has complied with the 
requirements of  RCW 80.08.04. 
        11.          Northwest shall file, as soon as available: Reporting of 
Security Transactions required by WAC 480-143-340.
        12.          This order is in addition to the Previous Order and, with 
respect to up to  $83,000,000 of unissued Medium-Term Notes, the Previous Order 
shall remain in full force and effect. The Previous Order, in combination with 
this Order, shall allow Northwest Natural Gas Company to issue up to a maximum 
of $200,000,000 in Medium-Term Notes, Series B. To the extent that Medium-Term 
Notes to which the Previous Order relates remain unissued, Medium-Term Notes 
issued subsequent to the date of this Order shall be deemed to have been issued 
in connection with the Previous Order.
        13.          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 acquiescence in any estimate or 
determination of costs, or any valuation of property claimed or asserted.
         DATED at Olympia, Washington, and effective the 30th day of August, 
2000. 
         WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
                                                                       CAROLE 
J. WASHBURN
                                                                       Secretary