DOCKET UW-980981  Page 1

BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Application  )
for Sale and Transfer of  )  DOCKET UW-980981
Ketron Island Utility, Inc.  )
from Ketron Island Enterprises, Inc., )
To Ketron Island Water, Inc.  ) ORDER GRANTING
    )   APPLICATION
 . . . . . . . . . . . . . . . . . . . )


  On July 17, 1998, Ketron Island Water, Inc., filed an application for 
authority to transfer assets and property used for water service.  Ketron 
Island Water, Inc., serves 12 water customers on Ketron Island in Pierce County.

  Ketron Island Utility, Inc., is currently regulated by this Commission and 
Ketron Island Water, Inc., (a Washington Non-profit Corporation), was formed to 
purchase the assets and property.  The terms and conditions of the transfer are 
set forth in an Order Authorizing Sale of Property of the Estate.  This order 
was issued July 29, 1998, by United States Bankruptcy Court for the Western 
District of Washington at Tacoma.


FINDINGS

  THE COMMISSION FINDS:

  1. Ketron Island Utility, Inc., a Washington corporation and is a public 
service company subject to the jurisdiction of this Commission under the 
provisions of chapter 80.12 RCW.  Ketron Island Water, Inc., a Washington 
Non-profit Corporation, will be a public service company and subject to the 
jurisdiction of this 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 to transfer 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, Ketron Island Water, Inc., is 
hereby authorized to purchase the Assets and Property of Ketron Island Utility, 
Inc., pursuant to the Order Authorizing Sale of Property of the Estate.  This 
order was issued July 29, 1998, by United States Bankruptcy Court for the 
Western District of Washington at Tacoma, filed with the Commission on December 
10, 1998.

  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. Effective January 27, 1999, Ketron Island Water, inc., shall adopt and 
operate in accordance with the existing tariff of Ketron Island Utility, Inc.  
This adoption will remain in effect until such time as the Commission approves 
new rates for these customers or one year after adoption.

  4. Ketron Island Water, Inc., shall file with the Commission, within 60 days 
of the effective date of this order for its prior written approval, the journal 
entries by which they propose to record on their books the sale and transfer 
authorized herein.

  5. This order shall in no way affect the authority of this commission over 
rates, service, or accounts, evaluations, estimates, or determination of cost 
or any matters whatsoever that may come before it, including rates relating to 
the Docket agreement or payments of the elements which are the subject of this 
order, 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 27th
day of January, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




       CAROLE J. WASHBURN
       Secretary