Agenda Date:        June 16, 2000
Item Number:                                    
Docket:                   UT-992009
Company Name:          GTE Northwest Incorporated 
Staff:                    Tom Spinks, Telecommunications Staff
Recommendation: 
Authorize the revised depreciation rates shown on Attachment 1 to be effective 
as of January 1, 2000.
.
Discussion 
On December 27, 1999, GTE-NW filed a depreciation study with the FCC and 
Washington state requesting a $119 million increase in depreciation expense 
which would result in an increase in the composite depreciation rate from 5.5 
percent to 10.9 percent.
Staff analyzed the proposal and on February 15, 2000, provided the FCC with 
comments which are included in this memo as Attachment 2. The FCC, state and 
company met on April 5-6, 2000, to discuss the study. Three-way agreement was 
reached in a number of accounts but parties were unable to reach agreement on 
all accounts. The staff and company subsequently met again in May and reached 
agreement on the remaining accounts. 
Under the staff/company agreement GTE NW Washington depreciation expense will 
increase by $21.5 million annually on a total company basis and the composite 
depreciation rate will increase from 5.5 percent to 6.5 percent. Staff 
recommends that the Commission authorize the revised depreciation rates to be 
effective January 1, 2000.