Subject: In the matter of the policy of the Washington utilities and transportation (commission) related to replacing pipeline facilities with an elevated risk of failure.

     Effective Date: December 31, 2012.

     Document Description: The commission addresses the commission's policies relating to the replacement of pipeline facilities that are demonstrated to have an elevated risk of failure and provides conditions for the interim recovery between rate cases associated with replacing those facilities. The commission concludes at this time that the policy statement should apply only to the investor-owned gas utility companies: Puget Sound Energy, Inc., Avista Corp, Northwest Natural Gas Company and Cascade Natural Gas Company. The commission issued a policy statement on December 31, 2012.

     To receive a copy of the policy statement, contact the commission by phone (360) 664-1160, fax (360) 586-1150, or e-mail records@utc.wa.gov, or go to the commission's web site at http://utc.wa.gov/120715.

     Washington Utilities and Transportation Commission

David W. Danner

Executive Director

and Secretary