DR 98-O26
      1998 Special Contract with the Mount Washington Hotel
               Order Nisi Approving Special Contract
                     O R D E R  N O. 22,938 
                           May 18, 1998
         On March 30, 1998, Rosebrook Water Company, Inc.
     (Rosebrook) filed with the New Hampshire Public Utilities
     Commission (Commission), pursuant to RSA 378:18, a special
     contract with MWH Preservation Limited Partnership (MWH), owners
     of the Mount Washington Hotel and related properties (Hotel). 
     The contract, executed on February 19, 1998, is effective for a
     one year period commencing on May 1, 1998 and terminating   
     April 30, 1999.
         Under the terms of the contract, Rosebrook will provide
     water service to the Mount Washington Hotel, Hotel Administration
     Building, Bretton Arms (an inn located near the Hotel) and
     Fabyans Restaurant.  During the term of the contract, MWH shall
     pay a fixed amount of $34,000, an increase of $4,000 over last
     year's special contract.  The previous contract, which expired on
     April 30, 1998, was approved by Commission Order No. 22,566
     (April 21, 1997).  MWH will continue to pay a charge of $.18 per
     100 gallons for MWH consumption in excess of 28,000,000 gallons,
     an increase of 3 million gallons over the previous contract.  
         The terms and conditions contained in the proposed
     special contract are the same as those contained in the contract
     currently in effect between Rosebrook and the MWH approved by the
     Commission in Order No. 22,566.
          Staff has reviewed the terms and conditions of the
contract and recommends that it be approved as submitted.  Staff
believes the statement of special circumstances as submitted with
the proposed contract, including the fact that Rosebrook's
projected revenue from the proceeds will cover the incremental
operating expenses to serve MWH, justify approval for the one
year period. 
     Pursuant to RSA 378:18 (Supp. 1997), a public utility
may contract with a customer for service at rates other than
those fixed by schedules of general application if special
circumstances exist which render such a departure just and
consistent with the public interest. 
     In the case at hand, MWH is the only customer
requesting the type of service obtained under the contract, and
MWH has maintained that it would construct its own water
facilities but for the special contract.  (Moreover, as is
established in Exhibit A, MWH covers its incremental cost of
service and provides a contribution to the overall expenses of
the Company).  Thus, as we concluded in Order No. 22,566 we find
special circumstances exist rendering the contract just and
consistent with the public interest.
     Based on the foregoing, it is hereby
     ORDERED, that the special contract between Rosebrook
Water Company, Inc. and MWH Preservation Limited Partnership
commencing on May 1, 1998 and ending on April 30, 1999 is
     FURTHER ORDERED, that pursuant to N.H. Admin. Rules,
Puc 1601.05, the Petitioner shall cause a copy of this Order Nisi
to be published once in a statewide newspaper of general
circulation or of circulation in those portions of the state
where operations are conducted, such publication to be no later
than May 26, 1998 and to be documented by affidavit filed with
this office on or before June 1, 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 this
matter before the Commission no later than June 8, 1998;
and it is

     FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than June 15, 1998; and it is
     FURTHER ORDERED, that this Order Nisi shall be
effective June 18, 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 eighteenth day of May, 1998. 

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

Attested by:

Claire D. DiCicco
Assistant Secretary