BEFORE THE WASHINGTON UTILITIES & TRANSPORTATION COMMISSION


In the Matter of the    )
      )
PETITION OF PUGET SOUND  )
ENERGY, INC.,    ) Docket UG-001315
      )
For an Order Regarding the Accounting )
Treatment for its Investment in Piping  ) Accounting Petition Order
and Venting Associated with the  )
Installation of Leased Gas Equipment  )
____________________________________)


BACKGROUND

1.  On August 30, 2000, Puget Sound Energy, Inc., (“PSE” or the “Company”) 
filed a Petition with this Commission under WAC 480-09-420(7) seeking an order 
regarding the accounting treatment for the Company’s investment in piping and 
venting associated with the installation of leased gas equipment.  To the 
extent that the leased gas equipment is retired from service, the Company 
proposes to transfer its net undepreciated investment in the related piping and 
venting from gas plant in service to a regulatory asset account and then begin 
amortization.

2.  In its Petition, the Company states that it leases gas equipment to its 
customers and that, in some cases, the Company installed piping and venting on 
customers’ premises in order to bring gas to the equipment.  The petition 
states that this investment in gas piping and venting was capitalized, along 
with the costs of the rental equipment and its installation.

3.  According to the petition, PSE has recently implemented a change in plant 
accounting procedures that leaves the value of the piping and venting in gas 
plant in service, and continues to depreciate it, when the related leased gas 
equipment is retired.

4.  In its Petition, the Company states that, upon the retirement of leased gas 
equipment, the piping and venting should be transferred to a regulatory asset 
account for subsequent amortization.  The petition states that the regulatory 
asset will be included in rate base as plant in service for ratemaking purposes.

  PSE is requesting permission to, effective January 1, 2000:

5.   a. transfer its net undepreciated investment in the gas piping and venting 
from gas plant in service to FERC account 182.3, “Other Regulatory Assets”, 
upon retirement of the associated leased gas equipment,

6.   b. amortize the regulatory asset account 182.3 to FERC account 403, 
“Depreciation Expense”, over the average remaining lives of its components,

7.   c. include the regulatory asset in rate base as plant in service for 
ratemaking purposes.

8.  This matter was brought before the Commission at its regularly scheduled 
open meeting on September 27, 2000.  The Commissioners, having been fully 
advised in the matter, and having determined the following order to be 
consistent with the public interest, directed the Secretary to issue the 
following order and related provisions.


FINDINGS

 THE COMMISSION FINDS:

9.  PSE is a public service company furnishing electric and gas service 
primarily in the Puget Sound region of the State of Washington and is subject 
to the regulatory authority of the Commission as to its rates, service, 
facility, and practices.

10.  On August 30, 2000, PSE filed with the Commission a Petition for an order 
regarding the accounting treatment for the Company’s investment in piping and 
venting associated with the installation of leased gas equipment.

11.  The accounting treatment proposed by PSE is reasonable and should be 
approved.


ORDER

 THE COMMISSION ORDERS:

 Authorization is hereby given for Puget Sound Energy, Inc. to, effective 
January 1, 2000:

12.   a. transfer its net undepreciated investment in the gas piping and 
venting from gas plant in service to FERC account 182.3, “Other Regulatory 
Assets”, upon retirement of the associated leased gas equipment,

13.   b. amortize the regulatory asset account 182.3 to FERC account 403, 
“Depreciation Expense”, over the average remaining lives of its components,

14.   c. include the regulatory asset in rate base as plant in service for 
ratemaking purposes.

15.  Nothing herein shall be construed to waive or otherwise impair the 
jurisdiction of the Commission over rates, services, accounts, and practices of 
Applicant, Puget Sound Energy, Inc.

16.  The Commission retains jurisdiction to effectuate the provisions of this 
Order.


  DATED at Olympia, Washington and effective the 27th day of September, 2000.


            WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




CAROLE J. WASHBURN, Secretary