BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matters of     )
(1) the Staff Investigation of  )
Alderton-McMillin Water Supply, Inc., ) DOCKET UW-990715
being jurisdictional and   )
(2) the removal of     ) ORDER REMOVING COMPANY
Alderton-McMillin Water Supply, Inc., ) FROM REGULATION AND 
from Commission Regulation.  ) CANCELING TARIFF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )

  On May 14, 1999, Commission staff instituted a staff investigation to 
determine if Alderton-McMillin Water Supply, Inc., (Alderton-McMillin) remains 
jurisdictional under RCW 80.04.010.

  On February 24, 1997, American Water Resources, Inc., (American Water) took 
over operation and ownership of the Alderton-McMillin water system.  On 
March 26, 1997, under Docket UW-970402, the Commission approved the sale and 
transfer of Alderton-McMillin.  American Water Resources, Inc., is operated as 
a public water utility and as such is subject to Commission jurisdiction.

  The staff investigation is now complete.  American Water considers the 
customers to be fully part of their business structure and the matter closed.  
This conclusion was affirmed in the compliance filing dated January 21, 1999, 
in Docket
UW-980258.

  As a result of this investigation Alderton-McMillin is determined to no 
longer provide regulated water service.  The Commission can remove a water 
company from regulation under the provisions of RCW 80.04.010.  A water company 
cannot be removed from regulation except with the approval of the Commission.  
Removing Alderton-McMillin from regulation will be consistent with the public 
interest, because the water system is now operated and owned by American Water 
which is regulated by this Commission.

  From all indications, it appears to be in the public interest to remove 
Alderton-McMillin from regulation and cancel the corresponding tariff.

O R D E R

  THE COMMISSION ORDERS:

  1. Alderton-McMillin Water Supply, Inc., is hereby determined not to be 
jurisdictional pursuant to the Commission staff investigation and documents 
filed with the Commission.

  2. Alderton-McMillin Water Supply, Inc., is removed from regulation by this 
order and its current tariff, WN U-2, canceled as of the effective date of this 
order.

  DATED at Olympia, Washington, and effective this 9th day of June, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




        CAROLE J. WASHBURN
        Secretary