DR 98-063
                       WEST SWANZEY WATER COMPANY, INC.
          Special Contract with Keene Housing Authority
                Order Nisi Approving Special Contract
                     O R D E R  N O.  22,936 
                           May 14, 1998
         On June 24, 1997, West Swanzey Water Company (West
     Swanzey) submitted a proposed special contract with the Keene
     Housing Authority (Developer) to construct a water main extension
     to serve a housing development of approximately 24 units in the
     Town of West Swanzey, New Hampshire.
         Under the terms of the proposed contract executed on
     March 31, 1997, West Swanzey is seeking a departure from the
     terms and conditions governing the funding of a main extension as
     specified in its tariff.  In accordance with the main extension
     provisions of the tariff, a customer will make a "contribution in
     aid of construction" for mains in excess of 100 feet. The main
     extension in the proposed special contract is approximately 2,800
     feet. The proposed contract will require the Developer to fund
     the construction of the eight (8) inch ductile iron main and
     other appurtenances.  West Swanzey will subsequently reimburse
     the developer $40,000 to be applied to the cost to construct the
     main. This amount is approximately 50% of the total main
     extension cost.  The remaining portion contributed by the
     developer is for main extension cost in excess of 100 feet which
     is required to be paid by the developer.  Under the terms of the
     proposed special contract the Developer agrees to a consumption
     of a minimum of 900,000 gallons per year for 30 years. West
Swanzey's currently approved water tariff will govern all other
terms and conditions under which water service will be provided. 
     Approval for the financing of the $40,000 to be
furnished by the utility was previously granted by Commission
Order No. 22,801 on December 9, 1997.  
     Staff has reviewed the terms and conditions of the
proposed special contract and recommends it be approved as
submitted.  Staff believes special circumstances exist which 
justify a departure from the terms and conditions of West
Swanzey's main extension provisions given the additional customer
base and increased revenue associated with the construction of
this main extension. 
     We have reviewed the contract and the Staff
recommendation and find the proposed contract justified by the
special circumstances and consistent with the provisions of RSA
378:18 in that the departure from the tariff is just and
consistent with the public interest.

     Based on the foregoing, it is hereby
     ORDERED NISI, that West Swanzey Water Company's
proposed main extension special contract with the Keene Housing
Authority is APPROVED; and it is
     FURTHER ORDERED, that pursuant to the N.H. Admin.
Rules, Puc 1604.03, West Swanzey shall cause a copy of this Order
Nisi to be published once in a newspaper of general circulation,
in the area effected, such publication to be no later than May
21, 1998 and to be documented by affidavit filed with this office
on or before May 28, 1998; and it is 
     FURTHER ORDERED, that all persons interested in
responding to this petition be notified that they may submit
their comments or file a written request for a hearing on the
matter before the Commission no latter than June 4, 1998; and it
     FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than June 11, 1998; and it is
     FURTHER ORDERED, that this Order Nisi shall be
effective June 15, 1998 unless the Commission provides otherwise
in a supplemental order issued prior to the effective date. 

     By order of the Public Utilities Commission of New
Hampshire this fourteenth day of May, 1998.

  Douglas L. Patch      Bruce B. Ellsworth     Susan S. Geiger
      Chairman             Commissioner          Commissioner

Attested by:

Thomas B. Getz
Executive Director and Secretary