DR 98-014
                  PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
                Fuel and Purchased Power Adjustment Clause
    Order Setting a Fuel and Purchased Power Adjustment Clause Rate
                 and Short-Term Avoided Cost Rates for 
                 June 1, 1998 through November 30, 1998
                          O R D E R  N O. 22,946
                               May 29, 1998
                      On February 13, 1998, Public Service Company of New
Hampshire (PSNH or the Company) filed with the New Hampshire
Public Utilities Commission (NHPUC or Commission) a request to
open a proceeding for PSNH's Fuel and Purchased Power Adjustment
Clause (FPPAC) rate for the period June 1, 1998 through November
30, 1998.  On March 13, 1998, PSNH filed the calculation of the
proposed FPPAC rate along with supporting testimony.  On April
29, 1998, Gerald M. Eaton filed with the Commission a Stipulation
and Settlement of the Parties resolving all issues in the filing. 
Signatories to the Settlement were PSNH, the Commission Staff
(Staff), and the Office of Consumer Advocate (OCA).  The Campaign
for Ratepayers Rights and New Hampshire Electric Cooperative,
Inc. did not support the Settlement.  On May 13, 1998, Philip L.
Munck, representing Waste Management of New Hampshire (WMNH),
concurred with the Settlement.  

                      Based upon our review of the record in this proceeding,
it is hereby
                      ORDERED, that an FPPAC rate of $0.00383 shall be
effective June 1, 1998 through November 30, 1998, and that PSNH
shall file compliance tariffs in accordance with this order no
later than June 12, 1998; and it is
                      FURTHER ORDERED, that PSNH shall put into effect the 
special contract rates as proposed on a temporary basis, which
allows for a freezing of the "BA" rate at its current level,
until the Commission has an opportunity to consider and determine
what the ultimate impact should be on special contract customers
in a new docket; and it is
                      FURTHER ORDERED, that PSNH's proposed short-term
avoided cost rates for energy produced by small power producers
are approved as shown in Exhibit 32 and that the short-term
capacity rate shall be $3.00 per kW-month; and it is
                      FURTHER ORDERED, that a report and order shall be
issued which more fully delineates the positions of the parties
and Staff and our determinations herein.

                      By order of the New Hampshire Public Utilities
Commission this twenty-ninth 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