DR 98-029
EnergyNorth Natural Gas, Inc.
Petition for Approval to Modify its
Natural Gas Price Risk Management Policy and
to Adopt a Natural Gas Price Stability Plan
Order Approving Procedural Schedule
O R D E R N O. 22,914
April 30, 1998
APPEARANCES: McLane, Graf, Raulerson and Middleton
by Steven V. Camerino, Esq., for EnergyNorth Natural Gas,
Inc. and Michelle A. Caraway for the Staff of the New
Hampshire Public Utilities Commission.
I. PROCEDURAL HISTORY
On March 6, 1998, EnergyNorth Natural Gas, Inc.
(ENGI) filed with the New Hampshire Public Utilities
Commission (Commission) its Petition for Approval to Modify
its Natural Gas Price Risk Management Policy (Hedging
Policy) and to Adopt a Natural Gas Price Stability Plan
(PSP). On March 25, 1998, Commission Staff (Staff)
recommended that the Hedging Policy and the PSP be
bifurcated.
ENGI's petition for the PSP requests authority for
ENGI to offer a set price to customers who elect to
participate in the PSP based on commodity prices which have
been locked in ahead of time with ENGI's suppliers. The PSP
will not guarantee lower prices than those available under
the cost of gas adjustment (CGA); it will simply ensure a
set price for the winter period to customers who desire
price certainty.
On April 2, 1998, the Commission issued an Order
of Notice which bifurcated the Hedging Policy and the PSP
and which scheduled a prehearing conference for April 21,
1998 to address the PSP. The Order of Notice also set
deadlines for intervention requests and objections thereto,
outlined a proposed procedural schedule, and required the
Parties and Staff to summarize their positions with regard
to the filing for the record. There were no Motions to
Intervene filed. The Office of the Consumer Advocate (OCA)
is a statutorily recognized intervenor.
At the Prehearing Conference, ENGI and Staff
agreed to modify the proposed procedural schedule as
outlined in the Order of Notice. The revised procedural
schedule is as follows:
Data Requests by Staff and April 30, 1998
Intervenors
Company Data Responses May 11, 1998
Technical Session May 14, 1998
Testimony by Staff and May 21, 1998
Intervenors
Data Requests by the Company May 28, 1998
Data Responses by Staff and June 4, 1998
Intervenors
Settlement Conference June 11, 1998
at 10:00
A.M.
Filing of Settlement Agreement, if any June 16, 1998
Hearing June 26,
1998
at 1:30
P.M. In accordance with the Order of Notice, ENGI
and Staff stated their positions with regard to the filing
for the record. ENGI stated that the Order of Notice
adequately described the PSP and the issues that need to be
addressed in this proceeding.
Staff stated that it supports the concept of the
PSP; however, Staff is concerned about the actual
implementation of the PSP, specifically as it relates to
possible cost-subsidization by firm sales CGA customers.
The OCA was not present at the Prehearing
Conference but requested that the following statement be
read into the record by Staff:
As far as a preliminary position on this docket is
concerned, the OCA is supportive of giving all
customers the option of a gas price stability plan as
long as it doesn't increase the CGA rates paid by
customers staying with the traditional CGA. But we
wonder if a better alternative is to allow third party
suppliers to bid for the right to serve these
customers.
The Hearing Examiner's report was issued on April
23, 1998. The Hearing Examiner recommended that the
Commission issue an order approving the proposed procedural
schedule, as amended, as the Commission calendar permits.
II. COMMISSION ANALYSIS
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 thirtieth day of April, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Claire D. DiCicco
Assistant Secretary