DE 96-227
CONSUMERS NEW HAMPSHIRE WATER COMPANY
Petition of Town of Hudson
Order Granting Respective Motions to Terminate Service and Engage
in Business
O R D E R N O. 22,880
March 23, 1998
On February 27, 1998, Consumers New Hampshire Water
Company (Consumers) filed jointly with the Town of Hudson a
motion seeking authority for Consumers to terminate water service
in New Hampshire pursuant to RSA 374:28. On the same date,
Pennichuck Corporation and Pennichuck East Utilities, Inc.
(collectively, Pennichuck) filed a motion seeking authority to
engage in business pursuant to RSA 374:22 and for approval of a
tariff.
In Order No. 22,792 (November 21, 1997), we
specifically noted that the proceeding did not include a request
to grant Pennichuck authority to engage in business in the non-Hudson area of the Consumers franchise area nor did the
proceeding include a request by Consumers to terminate service in
New Hampshire. We did, however, find the sale of non-Hudson
assets to Pennichuck was in the public interest and that
Pennichuck had sufficient managerial, technical and financial
expertise to assume ownership of the assets. We also found that
the proposed capital structure and interim rates were reasonable.
We had earlier found, in Order No. 22,778, (October 30, 1997)
that the sale of Consumers' assets in the Town of Hudson to the
Town comports with the requirements of RSA 38.
As a result of our findings in Order No. 22,792, we
need not grant additional approval of Pennichuck's tariff.
Interim rates have already been approved and the tariff filed on
February 27, 1998 will be treated as a compliance filing and
accepted for filing so long as it provides a 10% decrease in
rates consistent with Order No. 22,792 and so long as it is
otherwise consistent with the terms of the Pennichuck Water
Works, Inc. tariff on file.
As for Pennichuck's request to engage in business in
the non-Hudson portion of Consumers' service territory, we
effectively concluded that doing so would be for the public good
when we determined that Pennichuck had sufficient managerial,
technical and financial expertise. Moreover, the requirements of
374:22, III do not apply inasmuch as Pennichuck will be taking
over the operations of Consumers, which is in compliance with
requirements pertaining to the suitability and availability of
water. Furthermore, no parties have objected to Pennichuck's
motion to engage in business. Accordingly, the single remaining
task is to grant permission and we do so recognizing that we had
previously made all the necessary substantive findings and that
now all procedural requirements are met. Finally, given that
there is no objection to Pennichuck's motion, even had we not
made all the necessary findings before, we could grant permission
now without a hearing pursuant to RSA 374:30.
With respect to Consumers' motion to terminate service,
as with Pennichuck's motion above, we made all the necessary
substantive findings a fortiori in previous orders. Accordingly,
both Pennichuck's and Consumers' motions, as well as our
approval, are formalities. Finally, as for Consumers'
termination of service, the requirements of RSA 374:28 are
satisfied inasmuch as the assumption of service by the Town of
Hudson and Pennichuck in their respective areas ensures that the
public good does not require the further continuance of service
by Consumers.
Based upon the foregoing, it is hereby
ORDERED, that Pennichuck's motion to engage in business
is APPROVED; and it is
FURTHER ORDERED, that Consumers' motion to terminate
service is APPROVED.
By order of the Public Utilities Commission of New
Hampshire this twenty-third 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