ORDER NO. 95-972

ENTERED SEP 29 1995

THIS IS AN ELECTRONIC COPY

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 753

(Consolidated UI Cases)

DISPOSITION: DOCKET EXPANDED

On April 17, 1995, the Commission initiated this consolidated proceeding to review all affiliated lease activity of U S WEST Communications, Inc. (USWC). USWC contracts with affiliated companies for the lease of office space and related operational requirements.

On September 12, 1995, the Commission staff moved to expand the scope of this docket. Staff has determined that USWC also enters into two types of leases not currently subject to this investigation. The first type is a so-called "flow-through" lease, by which lease costs flow back to USWC ratepayers through leases that indirectly involve affiliated interests. The second type is a sale and lease-back arrangement, where an affiliated interest has sold office space involving USWC to an independent third party. Because both these leases raise a number of issues that concern ratepayers, staff recommends the the Commission expand the scope of the UM 753 investigation to include these matters. USWC does not oppose the request.

Staff’s recommendation to expand the investigation is reasonable and is hereby adopted.

ORDER

IT IS ORDERED that Docket UM 753, opened pursuant to ORS 756.515, is expanded to include the review of USWC lease activity involving so-called "flow-through" leases and sale and lease-back arrangements described above.

Made, entered, and effective .