ORDER NO. 97-345

ENTERED SEP 9 1997

This is an electronic copy

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UP 138

In the Matter of the Application of U S WEST COMMUNICATIONS, INC., for an Order Authorizing the Company to Dispose of a Share of Stock of Bell Communications Research, Inc., An Affiliated Interest.

ORDER

DISPOSITION: APPLICATION GRANTED WITH CONDITIONS

The Commission received an application from U S WEST Communications, Inc. (USWC), filed pursuant to ORS 759.375 and OAR 860-027-0025, requesting approval to sell certain of its utility property alleged to be no longer necessary or useful for providing utility services to the public.

Based on a review of the application and the Commission’s records, the Commission finds that the application satisfies applicable statutes and administrative rules. At its public meeting on September 9, 1997, the Commission adopted the Staff’s recommendation to approve the sale subject to the conditions specified in Staff’s recommendation, attached as Appendix A to this order and incorporated by reference.

OPINION

Jurisdiction

ORS 759.005 defines a "telecommunications utility" as an anyone providing telecommunications service directly or indirectly to the public in Oregon. The Company is a telecommunications utility subject to the Commission’s jurisdiction.

Applicable Law

ORS 759.375 provides that a telecommunications utility doing business in Oregon shall first obtain Commission approval for any transaction to sell, lease, assign or otherwise dispose of property of such telecommunications utility necessary or useful in the performance of its duties to the public or any part thereof of a value in excess of $10,000.

OAR 860-027-0025 specifies the information a telecommunications utility must submit when it makes application to sell or lease its property. This application contains the necessary information.

The proposed sale involves property which has a value in excess of $10,000 and will no longer be useful for providing utility services to the public. Commission approval of the accounting treatment for this transaction does not constitute approval for ratemaking purposes. However, the Commission acknowledges USWC’s written agreement to accept Staff’s recommended accounting treatment for use in the company’s next rate case. There is no indication that the proposed sale will impair the Company’s ability to provide telecommunications utility service in Oregon.

CONCLUSIONS

The Company is a telecommunications utility subject to the jurisdiction of the Public Utility Commission of Oregon.

The Company’s proposed transaction meets the requirements of ORS 759.375.

The application should be granted.

ORDER

IT IS ORDERED that the application of U S WEST Communications, Inc., for authority to sell certain utility property alleged to be no longer necessary or useful for providing telecommunications utility services to the public in Oregon is granted, subject to conditions stated in Appendix A.

Made, entered, and effective ________________________.

A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A party may appeal this order pursuant to ORS 756.580.