DF 96-210
       Petition for Authority to Issue Securities and Increase Rates
                    Order Approving Procedural Schedule
                         O R D E R   N O.  22,866
                              March 10, 1998
         In Docket DF 95-185, by Order No. 21,876, the New
     Hampshire Public Utilities Commission (Commission) authorized the
     Petitioner, Tilton & Northfield Aqueduct Company, Inc. (TNA or
     the Company) to issue securities in an amount not to exceed
     $3,124,398.  Order No. 21,876 also found the proposal to finance
     the construction of gravel packed wells in Northfield and a new
     transmission system to comply with the Safe Drinking Water Act
     (SDWA) to be prudent uses of the funds.  On August 27, 1996, the
     Commission issued Order No. 22,296 in DF 96-210 which provided
     authorization for borrowing an additional $64,318 for larger
     transmission mains in order to achieve acceptable fire flows.  On
     February 11, 1997, the Commission issued Order No. 22,502 which
     increased TNA's financing authorization up to $3,841,965, to
     enclose its storage reservoir rather than use a floating cover
     system.  Finally, Order No. 22,564 (April 21, 1997) further
     authorized the Company to increase its total borrowing authority
     up to $4,159,889.  That increase in financing related to the
     lapse in time since the original estimates in 1995 and subsequent
     higher bids for the well pumping station and the water main
     improvement projects.   
         On December 30, 1997, the Company filed financial
     schedules which would provide for a 192% increase in its
     currently approved rates as a result of the construction of the
     wells and transmission system (Phase I of the project).  Those
     schedules included the Company's calculations of the final
     construction costs of Phase I as well as related increases in
         A duly noticed prehearing conference was held on
     February 25, 1998.  The Commission received no requests for
     intervention.  Staff indicated that it would meet with
     representatives of TNA following the prehearing conference to
     prepare a proposed procedural schedule.  Staff subsequently
     submitted the following proposed schedule:
          Data Requests by Staff                    March 6, 1998
          Company Responses to Data Requests       March 11, 1998
          Hearing                                  March 16, 1998
                                                      at 1:30pm
         Also at the prehearing conference, in accordance with
     the Order of Notice, the Company and Staff stated their positions
     with regard to the issues in the filing for the record.  An audit
     had already been conducted by Staff, and the Company and Staff
     envision an agreement on the proposed increase in rates prior to
     the proposed date of the hearing.
         Staff and the Company also discussed an additional
     requested financing package filed by the Company on February 11,
     1998 which would finance main replacements made necessary by
     increased system pressure.  Staff and the Company will work
     towards an expedited resolution that will meet the needs of the
     Company while limiting the requested water system improvements to
     those which are related to the current SDWA project.  
         We find the proposed procedural schedule to be
     reasonable and will, therefore, approve it for the duration of
     the proceeding.
         Based upon the foregoing, it is hereby
         ORDERED, that the procedural schedule delineated above
     is APPROVED.
         By order of the Public Utilities Commission of New
     Hampshire this tenth day of March, 1998.
        Douglas L. Patch    Bruce B. Ellsworth        Susan S. Geiger
            Chairman           Commissioner            Commissioner
     Attested by:
     Thomas B. Getz
     Executive Director and Secretary