DE 95-271
                         beebe river water utility
              Village District Request for Reconsideration or
                     Clarification of Order No. 22,771
                     Order Clarifying Order No. 22,771
                         O R D E R   N O.  22,821
                              January 6, 1998
         On October 28, 1997, the New Hampshire Public Utilities
     Commission (Commission) issued Order No. 22,771 which appointed
     the Beebe River Village District (Village District) as receiver
     to operate the water utility known as Beebe River Water System in
     Campton, New Hampshire.  In the order, the Commission appointed
     the Village District as receiver pending an affirmative vote of
     the Campton Town meeting and instructed that within 30 days of an
     affirmative vote, the Village District submit a franchise
     application to the Commission.
         The Village District, on November 13, 1997, filed a
     Motion for Reconsideration/Clarification regarding Order No.
     22,771.  The Motion argued that the Village District should be
     under no obligation to obtain an affirmative vote at the Campton
     Town meeting or to obtain a franchise from the Commission.  The
     Town of Campton concurred in the Motion.
         Having reviewed the Village District's Motion for
     Reconsideration/Clarification, we find we were in error in our
     previous order. We agree with the Village District that a
     franchise application is not required in this instance and hereby
     clarify Order No. 22,771 on that point.  RSA 362:4,III does not
     require a franchise if the municipal corporation is not serving
     beyond its municipal borders, which is the case presented herein. 
         In addition, we agree that there is no need for a vote
     of the Campton Town meeting in order for the Village District to
     operate the utility.  We erred in mixing testimony regarding the
     annual meeting of the Village District and the Campton Town
         We anticipate that at the annual meeting of the Village
     District, the Village District will be authorized as necessary to
     operate the water utility and at that point the receivership will
     be dissolved.  We instruct the Village District to notify us of
     the results of a vote regarding operation of the water system.  
         Based upon the foregoing, it is hereby
         ORDERED, that the Village District is under no
     obligation to seek a franchise from the Commission; and it is
         FURTHER ORDERED, that the Village District need not
     seek authorization at the Town of Campton annual meeting; and it
                   FURTHER ORDERED, that the Village District notify the
     Commission of the results of a vote of the Village District
     members regarding operation of the utility.
         By order of the Public Utilities Commission of New
     Hampshire this sixth day of January, 1998.
        Douglas L. Patch    Bruce B. Ellsworth        Susan S. Geiger
            Chairman           Commissioner            Commissioner
     Attested by:
     Thomas B. Getz
     Executive Director and Secretary