DOCKET UW-981518  Page 1
 BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


WASHINGTON UTILITIES AND )
TRANSPORTATION COMMISSION, )
   )
  Complainant, ) DOCKET UW-981518
   )
 vs.  )
   ) COMPLAINT AND ORDER
Gamble Bay Water, Inc., ) SUSPENDING TARIFF
   ) REVISIONS, AND INSTITUTING
  Respondent. ) INVESTIGATION 
 ) 

  On November 30, 1998, Gamble Bay Water, Inc., (Gamble Bay Water) filed tariff 
revisions with the Commission designated as:

   Third Revision Sheet No. 2
   Canceling
   Second Revision Sheet No. 2
   and
   Original Sheet No. 34 

  The tariff revision will add a Facilities Charge for residential customers. 
Gamble Bay serves approximately 250 customers located on 13 water systems on 
Bainbridge Island and near Poulsbo.

  This tariff revision provides for Gamble Bay to establish a facilities charge 
(Schedule No. 11) for costs of well upgrades, installation of new 8 inch 
ductile iron piping, construction of new 100,000 gallon reservoir and easement 
rights.  The total cost of upgrades and improvements is estimated to be 
$344,00.  The facilities charge portion will fund about $217,000.

  Customer notice was not provided for this rate filing as potential applicants 
or customers are unknown.

 Facilities Charge    Current  Proposed 

Facilities Charge - Schedule No. 11      ---   $1,850

  This facilities charge amount will be treated as Contribution in Aid of 
Construction and will not be included in any future rate base calculations.   
Additionally, the company will provide quarterly reporting of funds received 
and monies spent for the system upgrades and improvements.

  This filing is in conjunction with a new definition of the company's service 
area.  The service area is being defined as only those customers that the 
company is providing water to.  This definition is consistent with Commission 
Service Area as defined in WAC 480-110-021 (6).  The facilities charge would 
then apply to any new customer connecting to any water system owned by Gamble 
Bay.

  The facilities charge monies will be used to repay a projected loan the 
company has applied for.  The loan is administered by the Washington State 
Public Works Board - Drinking Water State Revolving Fund Program.  This program 
provides low interest, long term loans for public works projects.

  Monies from the loan will be used to acquire a tank site, construct a 100,000 
gallon reservoir and to intertie the Bucklin water system and the Vincent Road 
water system.  Vincent Road water system is located near Kitsap County 
Landfill.  The soul source of water for this system is having problems with 
testing results.  The system is designed for nine (9) connections and is 
currently at capacity.  However, the system has water rights for up to 31 
connections.  Gamble Bay intends to intertie the two systems (resolving water 
quality issues) and transfer water rights to the Bucklin water system.  By this 
transfer of water rights the company could fully utilize the 31 connection 
capacity.

  It appearing that the filing herein would provide charges and rates for water 
service rendered by respondent and that the rights and interests of the public 
might be injuriously affected thereby, it is the decision of the Commission to 
enter upon public hearing or hearings concerning such charges and the 
reasonableness and justness thereof and to suspend the operation of the above 
filing pending such hearing or hearings and decision thereon.

    The Commission deems it necessary in order to carry out the duties imposed 
upon it by law to investigate the books, accounts, practices and activities of 
respondent, to make a valuation or appraisal of the property of respondent and 
to investigate and appraise various phases of the operation of respondent. 

  
O R D E R

  IT IS THEREFORE ORDERED:

  1. The operation of the above tariff filing, filed herein 
November 30, 1998, is hereby suspended.

  2. A hearing or hearings, on the Commission's own motion, shall be held at 
such times and places as may be required.

  3. No change or alteration shall be made in the tariff filing filed herein, 
during the period of suspension, unless authorized by the Commission.

  4. An investigation is hereby instituted by the Commission.

  5. Respondent shall pay the expenses reasonably attributable and allocable to 
such investigation to the extent the requirement for such payment may be in 
accordance with the provisions of chapter 80.20 RCW.           

  DATED at Olympia, Washington, and effective this 23rd day of December, 1998.

   WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



      ANNE LEVINSON, Chair



      RICHARD HEMSTAD, Commissioner



      WILLIAM R. GILLIS, Commissioner