DR 97-058
                                     
                       PENNICHUCK WATER WORKS, INC.
                                     
                   Petition for Permanent Rate Increase
                                     
                    Order Approving Rate Case Expenses
                                     
                         O R D E R   N O.  22,898
                                     
                              April 13, 1998
                                     
                                     
         Pennichuck Water Works, Inc. (Pennichuck), filed on
     March 27, 1998 pursuant to Order No. 22,883 (March 25, 1998), a
     summary of its rate case expenses and supporting documentation in
     the amount of $93,264.60.  After reviewing the documentation, 
     Staff recommended approval.  The requested amount would be
     recovered from the 21,936 customers of Pennichuck in a surcharge 
     applied over a 12-month period on a monthly basis, consistent
     with Section II, Page 5 of the Commission approved Settlement
     Agreement in this docket.  The surcharge amounts to approximately
     $0.35 per month per customer.
         The level of rate case expense is reasonable in the
     context of this proceeding.  In addition, the recovery of those
     expenses through a surcharge over twelve months balances the
     interests of the Company and its customers.  Accordingly, the
     expenses and the method of recovery are consistent with the
     public good and we approve the Company's request.
                   Based upon the foregoing, it is hereby
         ORDERED, that the rate case expenses for Pennichuck
     Water Works, Inc. be and hereby are approved effective the date
     of this order; and it is
         FURTHER ORDERED, that the Company submit a revised
     tariff page reflecting the rate case recoupment amount, annotated
     with this Commission order number effective the date of this
     order; and it is
         FURTHER ORDERED, that prior to the end of the
     recoupment period the Company will file a revised rate for the
     balance of the rate case expenses to be recovered to assure an
     accurate recovery.
         By order of the Public Utilities Commission of New
     Hampshire this thirteenth day of April, 1998.
     
     
                                                                     
        Douglas L. Patch    Bruce B. Ellsworth        Susan S. Geiger
            Chairman           Commissioner            Commissioner
     
     
     Attested by:
     
     
                                      
     Thomas B. Getz
     Executive Director and Secretary