BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION


In the Matter of the Petition of    )    DOCKET UT-971475
GTE NORTHWEST INCORPORATED for an   )
Order Approving an Affiliated       )     ORDER GRANTING
Agreement with GTE Communications   )       APPLICATION
Corporation and GTE Service         )
Corporation                         )
. . . . . . . . . . . . . . . .     )


          On October 2, 1997, GTE Northwest Incorporated 
(GTE-NW) filed an application with the Commission under the provisions of 
Chapter 80.16 RCW for an order approving an agreement with GTE Communications 
Corporation (GTECC)and GTE Service Corporation (GTESC).

  GTE-NW, GTECC and GTESC are wholly owned subsidaries of GTE Corporation and 
are, therefore, affiliated interests as defined in RCW 
80.16.010.                    
    
  The purpose of the proposed agreement is to obtain telecommunications 
services for official company traffic.

  The Commission neither approves nor disapproves the reasonableness of the 
fees, charges, or accounting allocations involved with the proposed contract 
and reserves the right to review those fees, charges, or allocations in a 
future rate proceeding.
 
FINDINGS
 
  The Commission finds:

  1.  GTE-NW, a Washington corporation, is a public service company subject to 
the jurisdiction of this Commission under the provisions of Chapter 80.16 RCW.

  2.  GTECC and GTESC are affiliated interests of GTE-NW, as defined in RCW 
80.16.010.

  3.  As to form, the application filed herein meets the requirements of 
Chapter 80.16 RCW and the rules and regulations adopted pursuant thereto.

  4.  It appears, upon investigation, that the contract between GTE-NW, GTECC 
and GTESC is reasonable and consistent with the public interest and should 
therefore be approved.





Docket UT-971475                                           Page 2



O R D E R

  THE COMMISSION ORDERS:

  1.  Subject to the conditions of this order, GTE Northwest Incorporated is 
hereby authorized to enter into an agreement with GTE Communications 
Corporation and GTE Service Corporation as described in the application herein.

  2.  GTE Northwest Incorporated shall file with the Commission details of the 
contract described in ordering paragraph no. 1 of the order herein, as required 
by WAC 480-146-091, Reporting of Affiliated Interest Transactions.

  3.  The reasonableness of the fees, charges 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.

  4.  Jurisdiction of this proceeding is hereby retained by the Commission for 
the purpose of entering such further orders or of taking any other action it 
may deem necessary and proper in respect to the subjects under consideration in 
this proceeding.

  5.  This order shall in no way affect the authority of this Commission over 
rates, service, or accounts, valuations, 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 January, 1999.

  WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION




        CAROLE J. WASHBURN
                                        Secretary