BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Joint Application )
for Sale and Transfer of water system )  DOCKET UW-970413
from View Royal Water Company, Inc.  )
to        )  ORDER GRANTING
Lewis County Utility Corporation    )   APPLICATION
. . . . . . . . . . . . . . . . .  )


  On February 28, 1997, View Royal Water Company, Inc. (View Royal), and Lewis 
County Utility Corporation (Lewis County Utility) filed a joint application 
with the Commission for authority to transfer water system from View Royal to 
Lewis County Utility.

  This water system currently serves 207 customers in Pierce county.

  The terms and conditions of the transfer are set forth in an Agreement to 
Sell/Purchase this water system filed with the Commission on February 28, 
1997.  View Royal will sell the water system to Lewis County Utility for a 
mutually agreed amount of $175,000.

  There will be no change in rates or service as a result of the proposed 
transfer.  Lewis County Utility will issue new tariff pages to its approved 
tariff reflecting currently applied rates and charges.  The water system 
consist of only such assets, which include, but not limited to, water rights, 
water lines, mains, tanks, valves, pumps, wells, easements, appurtenances and 
tank and well sites which are now actually used to serve the water system.

  The Commission neither approves nor disapproves the reason-ableness of the 
fees, charges, or accounting allocations involved with the proposed arrangement 
and reserves the right to review those fees, charges, or accounting allocations 
in a future rate proceeding.

FINDINGS

  THE COMMISSION FINDS:

  1. View Royal Water Company, Inc., and Lewis County Utility Corporation are 
Washington businesses operated as public service companies subject to the 
jurisdic-tion of this Commission under the provisions of chapters 80.12 RCW.

  2. As to form, the application herein, meets the require-ments of chapters 
80.12 RCW and the rules and regulation of the Commission adopted pursuant 
thereto.

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  3. It appears, upon investigation, that the proposed transactions are 
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 provision 
hereof, View Royal Water Company, Inc. is hereby authorized to transfer the 
above listed water systems to Lewis County Utility Corporation, pursuant to the 
Agreement to Sell/Purchase filed with the Commission on February 28, 1997.

  2. No material change, revision, or amendment to the agreement described in 
ordering paragraph no. 1 of this order shall become effective without the 
Commission’s prior written approval.

  3. Applicant may record the above-authorized transfer on its books as though 
it occurred as of March 1, 1997, even though legal title will not be conveyed 
prior to the effective date of this order.

  4. Applicant shall file with the Commission within 60 days after the 
effective date of this order copies of accounting entries used to transfer 
financial information to the books of Lewis County Utility Corporation.

  5. Within 30 days after the above-authorized transfer has been consummated, 
Lewis County Utility Corporation shall file with the Commission true copies of 
the instruments of transfer which were executed pursuant to this order.

  6. This order shall in no way affect the authority of this Commission over 
rates, services, or accounts, evaluations, esti-mates, 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 cost 
or any valuation of property claimed or asserted.

DOCKET  UW-970413        Page 3


  DATED at Olympia, Washington, and effective this 26th day of March, 1997.

 WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




      STEVE MCLELLAN
      Secretary