Docket UW-970593                                          Page 1

Docket UW-970593                                          Page 1

BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application for Sale and Transfer of Water Systems from 
Northwest Water Co., Inc.,and Belfair Water Co., Inc. to Harbor Water Co., Inc. 	)
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		DOCKET UW-970593
		
		
		ORDER GRANTING APPLICATION
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On April 1, 1997, Harbor Water Co., Inc. (Harbor Water), Northwest Water Co., 
Inc. (Northwest Water), and Belfair Water Co., Inc. (Belfair Water), filed a 
joint application to sell and transfer a portion of Northwest Water, and all of 
Belfair Water regulated operations to Harbor Water, pursuant to the provisions 
of chapter 80.12 RCW.

Northwest Water proposes to sell and transfer eleven of its fourteen systems.  
These eleven systems serve approximately 125 customers in Kitsap and Mason 
Counties in the vicinities of Port Orchard, Poulsbo, Bremerton and Belfair.  
Belfair Water proposes to sell and transfer all of its regulated operations 
which consist of two systems, which together serve 6 customers near Belfair in 
Mason County.  Northwest Water and Belfair Water are under common ownership.

The terms and conditions of the transfer are set forth in an agreement to 
sell/purchase said water systems filed with the Commission on April 1, 1997.

Harbor Water will adopt the current filed and approved tariffs of both 
Northwest Water and Belfair Water.  The purchase price of the assets described 
in the joint application of Northwest Water and Belfair Water Co., Inc., is one 
hundred eleven thousand, seven hundred twenty-two dollars ($111,722).

FINDINGS  

1. Harbor Water Co., Inc.,  Belfair Water Co., Inc., and Northwest Water Co., 
Inc., are public service companies subject to the jurisdiction of the 
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. It appears, upon investigation, that the application for sale and transfer 
is reasonable and consistent with the public interest and should therefore be 
approved.

4. Harbor Water Co., Inc., has filed an adoption notice required under WAC 
480-80-250 and the related tariffs required under WAC 480-80-260 to adopt the 
existing tariffs of Northwest Water Co., Inc., and  Belfair Water Co., Inc.  
The adopted tariffs become effective May 1, 1997, under Docket UW-970594.

5. The sale and transfer involves the sale of tangible assets and plant 
facilities and does not involve the sale of the corporate stock or any 
securities.

6. As part of its application for transfer, Harbor Water Co., Inc., proposes to 
consolidate the operations of Belfair Water Co., Inc., into those of Harbor 
Water Co., Inc., and not to continue to operate Belfair Water Co., Inc., as a 
separate system.  The Commission finds that the public interest does not 
require the continued regulation Belfair Water Co., Inc., as a separate system.

O R D E R

THE COMMISSION ORDERS:

1. Subject to the conditions of this order, Northwest Water Co., Inc., and 
Belfair Water Co., Inc., are authorized to transfer their water systems to 
Harbor Water Co., Inc., pursuant to the application of sale and transfer filed 
with the Commission on April 1, 1997. 

2. No material change, revision, or amendment to the agreement shall become 
effective without the Commissions’s prior written approval.  

3. Within 30 days of final transfer of the transferred water systems, Harbor 
Water Co., Inc., shall file with the Commission, for its prior written 
approval, the journal entries by which they propose to record the sale and 
transfer authorized herein on their books.

4. This order shall in no way affect the authority of this Commission over 
rates, service, accounts, valuations, estimates or determination of costs, or 
any matter whatsoever that may come before it, nor shall anything be construed 
as an acquiescence in any estimate or determination of costs, or any valuation 
of property claimed or asserted.  Nothing herein shall be construed to waive or 
otherwise impair the jurisdiction of the Commission over the rates, services, 
accounts and practices of the Applicants.

5. Within 30 days after the above-authorized transfer has been consummated, 
Harbor Water Co., Inc., shall file with the Commission true copies of the 
instruments of transfer and promissory notes which were executed pursuant to 
this order.

6. Harbor Water Co., Inc., is authorized to adopt all tariff schedules and 
service contracts of Northwest and Belfair on file with the Commission and in 
effect at the time of the sell and transfer.

7. Belfair Water Co., Inc., upon the effective date of this order, will no 
longer be providing water service.  The Commission can remove the Company from 
regulation under the provisions of RCW 80.04.010 if it finds it in the pubic 
interest.  The Commission has so found THEREFORE the Belfair Water Co., Inc., 
is hereby deregulated. 

DATED at Olympia, Washington, and effective the   th day of April 1997.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



STEVE McLELLAN, Secretary