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                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                      Washington, D.C. 20554

In the Matter of                )
                                )
US WEST, Inc's                  )       File No. AAD 93-82
Permanent Cost Allocation Manual)
Waiver of Section 32.27         )
of the Commission's Rules       )
                                )

                             ORDER


     Adopted:  December 22, 1998        Released:  December 22, 1998

By the Chief, Accounting Safeguards Division:

     1.   On July 2, 1993, US West, Inc. ("US West") filed a petition for waiver of the
Commission's affiliate transactions rules, as codified in Section 32.27.  In its petition, US West seeks
permission to record at "no charge" in its cost allocation manual ("CAM") the costs for services provided
by a nonregulated affiliate, US West Dex, Inc. ("US West Dex"), to the incumbent local exchange carrier
("ILEC").  In its petition, US West contends that recording the transaction at "no charge" would benefit
ratepayers by enabling the ILEC to obtain services without paying for them.  
     
     2.   We agree with US West that recording the transaction at "no charge" would benefit
ratepayers by enabling the carrier to obtain services in a cost-effective manner.  Because US West's
proposed treatment appears to benefit ratepayer interests, we grant its waiver request at this time.  We
emphasize, however, that this waiver grant applies only to white pages publishing services provided by US
West Dex to the ILEC, as specified in US West's waiver request.  

     3.   Accordingly, IT IS ORDERED, pursuant to Sections 1, 4(i), 4(j), 201-205, and 218-220
of the Communications Act of 1934, as amended, 47 U.S.C.  151, 154(i), 154(j), 201-205, and 218-220,
and Sections 0.91, 0.291, 1.3, 1.106, and 32.27 of the Commission's rules, 47 C.F.R.  0.91, 0.291, 1.3,
1.106, and 32.27, that the Petition for Waiver filed by US West IS HEREBY GRANTED.

     
                              FEDERAL COMMUNICATIONS COMMISSION
                    


                              Kenneth P. Moran
                                                            Chief, Accounting Safeguards Division