ORDER NO. 99-087

ENTERED FEB 17 1999

This is an electronic copy. Appendices and Footnotes may not be included.

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 920

In the Matter of the Application of the Staff of the Public Utility Commission of Oregon for Deferral of the Intrastate Reduction in Depreciation Expense by U S WEST Communications, Inc. )
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ORDER

DISPOSITION: MEMORANDUM OF UNDERSTANDING ADOPTED

On January 19, 1999, the Staff of the Commission filed an application for deferral of the intrastate reduction in depreciation expense by U S WEST Communications, Inc. (USWC). Staff presented a Staff Report to us at our Public Meeting on February 2, 1999. After discussion, we adopted the Staff Report. Also on February 2, 1999, Staff and USWC filed a Memorandum of Understanding resolving the issues raised in Staff’s application. A copy of the Memorandum is attached to this order.

The Commission has reviewed the Memorandum of Understanding and finds that it should be approved. It satisfactorily resolves disputes about how to handle the depreciation of USWC's analog switching accounts. In USWC's next depreciation docket, USWC and Staff will review the company’s intrastate reserve balances and reallocate the balances as needed.

ORDER

IT IS ORDERED that the attached Memorandum of Understanding between USWC and the Commission Staff is adopted.

Made, entered, and effective ____________________________.

______________________________
Ron Eachus
Chairman

______________________________
Roger Hamilton
Commissioner

______________________________
Joan H. Smith
Commissioner

 A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with the requirements of OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070. A party may appeal this order to a court pursuant to ORS 756.580.