BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
In the Matter of the Investigation into 
the Propriety and Adequacy of Certain Depreciation Rates of
GTE Northwest Incorporated 
And the Changes, if any, That Should Be Ordered to Such Depreciation Rates 
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  	 	
DOCKET UT-992009
		ORDER AUTHORIZING REVISED DEPRECIATION RATES

BACKGROUND
                  On December 27, 1999, in Docket No. UT-992009, General 
Telephone of the Northwest Inc. (GTE) filed with the Commission a depreciation 
rate accrual study for its Washington State plant and equipment. GTE requests a 
January 1, 2000 effective date for the revised depreciation rates. The 
depreciation rate revisions, as proposed by GTE, would result in an increase in 
depreciation accruals of $119 million annually.
MEMORANDUM
                  The GTE study proposes depreciation parameters for cable and 
switching plant that are based on studies developed by Technology Futures, Inc. 
(TFI). The TFI depreciation life studies were also used in the 1996 Washington 
State depreciation studies of U S WEST Communications, Inc., (U S WEST), and 
GTE Northwest Incorporated (GTE), and in both instances were subsequently 
rejected by the Commission.
                  Staff examined the depreciation study data for GTE and 
developed recommendations based on the factual information provided in the 
study. Staff and company met on several occasions to discuss those 
recommendations. As a result of those meetings, Staff and GTE are now in full 
agreement as to the future depreciation parameters and rates for GTE's 
Washington State plant and equipment.
         Under the depreciation rates jointly supported by GTE and Staff, 
depreciation accruals will increase annually by $21.5 million, rather than the 
$119 million proposed by the company.
                 

                  The change in total annual depreciation accruals results in 
an increase in the overall depreciation rate from 5.5 percent to 6.5 percent. 
Staff recommended that the Commission authorize the revised depreciation and 
amortization parameters, rates, and expenses to be effective January 1, 2000. 
The Commission finds that the proposed depreciation rates are appropriate and 
should be adopted.
ORDER
                  THE COMMISSION ORDERS That the authorized parameters and the 
depreciation rates in Attachment 1 to the instant Order, are approved, to be 
effective as of January 1, 2000.
                  DATED at Olympia, Washington, and effective this 16th day of
June 2000.
                  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION
        
                                                     MARILYN SHOWALTER, 
Chairwoman 
                                                     RICHARD HEMSTAD, 
Commissioner 
                                                      WILLIAM R. GILLIS, 
Commissioner