BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION

In the Matter of the Application for the Sale and Transfer of Assets
From Mainland View Manor Maintenance Company, Inc.
To
Washington Water Service Company



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		DOCKET UW-010689
		
		ORDER GRANTING APPLICATION FOR SALE AND TRANSFER OF ASSETS AND TARIFF ADOPTION 

BACKGROUND

1 On March 28, 2001, Mainland View Manor Maintenance Company, Inc., (Mainland 
View Manor)  and Washington Water Service Company, Inc., (Washington Water 
Service) filed an application  pursuant to the provisions of chapter 80.12 RCW 
for sale and transfer of assets of Mainland View  Manor.  The company is 
located in South Seattle and serves approximately 150 customers on six  water 
systems in Kitsap County.  The water systems are Mainland View Manor, 
ID#472480; Clear  Creek Estates, ID#47431K; Look Out Point, ID#000451; Silver 
Springs Estates, ID#79275E;  Skookum Ranch, ID#08585A; and Hideaway Heights, 
ID#086766.  

2 Washington Water Service is a Washington corporation formed to act as a 
utility holding company.   Washington Water Service, located in Seattle, 
currently owns two operating districts serving over  15,000 customers.

3 The benefits of this acquisition of water system assets include expanded 
financial resources, in-house  engineering, and water quality staff to provide 
all aspects of water system repair and operations.  The  transfer appears to be 
consistent with the public interest.  Customers were notified of the sale and  
transfer along with their May billings.  Current rate base is calculated to be 
approximately $130,000.   Washington Water Service Company will acquire water 
system assets of Mainland View Manor for  $130,000, payable at closing.

4 As a result of this sale and transfer of water system assets, Washington 
Water Service Company will  maintain Mainland View Manor’s water rates 
currently in effect and will be adopting the tariff of  Mainland View Manor.

5 The proposed tariff adoption bears an effective date of June 14, 2001.  This 
date is to coincide with  company billing periods and allows a mutually agreed 
closing date.  For accounting purposes the  bookkeeping records should be 
considered to be transferred and effective on that date.

6 This Commission neither approves nor disapproves the reasonableness of any 
fees, charges, rates,  purchase price, or accounting allocations involved with 
the proposed arrangement and reserves the  right to review those fees, charges, 
rates, or accounting allocations in a future rate proceeding.

FINDINGS

7 (1)  Mainland View Manor Maintenance Company, Inc., and Washington Water 
Service    Company are investor owned water companies and are public service 
companies subject to   the jurisdiction of the Commission under the provisions 
of chapter 80.12 RCW.  

8 (2)  As to form, the application meets the requirements of chapter 80.12 RCW 
and the rules and   regulations of the Commission adopted pursuant thereto.

9 (3)  The sale and transfer of water system assets by Mainland View Manor 
Maintenance    Company, Inc., to Washington Water Service Company is reasonable 
and consistent with the  public interest and should therefore be approved.

O R D E R

10 THE COMMISSION ORDERS:

11 (1)  After the effective date of this order and subject to the provisions 
herein, Mainland View   Manor Maintenance Company, Inc., is autho-rized to sell 
water system assets to Washington   Water Service Company under the terms and 
conditions of the proposed agreement filed as   an exhibit in the joint 
application.

12 (2)  No material change, revision, or amendment to the joint application and 
agreement shall   become effective without the Commission's prior written 
approval.

13 (3) The tariff adoption filed in conjunction with the application, allowing 
Washington Water    Service Company to continue applying pre-transfer rates 
without change, is approved to   become effective with the effect of the 
transfer itself on June 14, 2001.  Washington Water   Service Company must file 
with the Commission within 60 days after the effective date of this   order, 
the journal entries by which it proposes to record on its books the transfer of 
water   system assets authorized herein.  The effective date of the transfer of 
the bookkeeping    records for accounting purposes shall be June 14, 2001.

14 (4) The reasonableness of any fees, charges, rates, purchase price, 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.

15 (5) This order shall in no way affect the authority of this Commission over 
rates, services,    accounts, evaluations, 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 13th day of June, 2001.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



MARILYN SHOWALTER, Chairwoman



RICHARD HEMSTAD, Commissioner