BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application of )    
GTE NORTHWEST INCORPORATED for an   )  DOCKET UT-971001
Order Approving a Contract with     )     
AG Communication Systems            )    ORDER GRANTING
Corporation                         )  APPLICATION
. . . . . . . . . . . . . . . .     )


          On June 12, 1997, GTE Northwest Incorporated 
(GTE-NW) filed an application with the Commission under the provisions of 
Chapter 80.16 RCW for approval of a contract with AG Communication Systems 
Corporation (AGCS), an affiliated interest.                    
  
  The proposed contract provides for the purchase of additonal memory for GTE-5 
switches.

  The Commission neither approves nor disapproves the reasonableness of the 
fees, charges, or accounting allocations involved with the proposed contract 
and reserves the right to review those fees, charges, or allocations in a 
future rate proceeding.
 
FINDINGS
 
  The Commission finds:

  1.  GTE-NW, a Washington corporation, is a public service company subject to 
the jurisdiction of this Commission under the provisions of chapter 80.16 RCW.

  2.  AGCS is an affiliated interest of GTE-NW, as defined in RCW 80.16.010.

  3.  As to form, the application filed herein meets the requirements of 
chapter 80.16 RCW and the rules and regulations adopted pursuant thereto.

  4.  It appears, upon investigation, that the contract between GTE-NW and AGCS 
is reasonable and consistent with the public interest and should therefore be 
approved.

O R D E R

  THE COMMISSION ORDERS:

  1.  Subject to the conditions of this order, GTE Northwest Incorporated is 
hereby authorized to enter into the  

Docket UT-971001        Page 1

contract with AG Communication System described in the application herein.

  2.  GTE Northwest Incorporated shall file with the Commission details of the 
contract described in ordering paragraph no. 1 of the order herein, as required 
by WAC 480-146-091, Reporting of Affiliated Interest Transactions.

  3.  The reasonableness of the fees, charges 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.

  4.  Jurisdiction of this proceedings is hereby retained by the Commission for 
the purpose of entering such further orders or of taking any other action it 
may deem necessary and proper in respect to the subjects under consideration in 
these proceedings.

  5.  This order shall in no way affect the authority of this Commission over 
rates, service, or accounts, valuations, estimates, or determination of cost 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.

  DATED at Olympia, Washington, and effective this    th
day of January, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




        CAROLE J. WASHBURN
                                        Secretary