BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matters of     )
(1) the Staff Investigation of  )
The H2O Company,    ) DOCKET UW-990716
being jurisdictional and   )
(2) the removal of     ) ORDER REMOVING COMPANY
The H2O Company,             ) FROM REGULATION AND 
from Commission Regulation.  ) CANCELING TARIFF
  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . )     

  On May 14, 1999, Commission staff instituted a staff investigation to 
determine if The H2O Company remains jurisdictional under RCW 80.04.010.

  On July 2, 1997, American Water Resources, Inc., (American Water) took over 
operation and ownership of The H2O Company water systems.  On 
November 26, 1997, under Docket UW-971107 the Commission approved the sale and 
transfer of The H2O Company.  American Water 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 The H2O Company 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 The H2O Company from regulation will be consistent with the public 
interest, because the water systems are 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 The 
H2O Company from regulation and cancel the corresponding tariff.

O R D E R

  THE COMMISSION ORDERS:

  1. The H2O Company is hereby determined not to be jurisdictional pursuant to 
the Commission staff investigation and documents filed with the Commission.

  2. The H2O Company 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