DR 98-082

                                 BELL ATLANTIC
           Special Contract with City of Nashua for Centrex Service
                       Order Approving Special Contract

                     O R D E R  N O.  22,952 
                                         June 8, 1998

          On May 14, 1998, New England Telephone and Telegraph
Company (Bell Atlantic) filed with the New Hampshire Public
Utilities Commission (Commission), pursuant to RSA 378:18, a
Special Contract (Contract) with the City of Nashua for Centrex
Services.  In support of its petition, Bell Atlantic filed a
contract overview and a cost study associated with the Special
          The filing also included a Motion for Confidentiality
to exempt certain data in the cost study and various information
in the Contract from public disclosure.  The Motion for
Confidentiality will be addressed in a separate order.  The
Commission, pursuant to NH Admin. Rules Puc 204.05(b), will
protect the information from public disclosure pending review of
the request for confidential treatment.
          As directed in DR 97-035 by Order No. 22,545 (April
21,997), Bell Atlantic has published notice of this special
contract filing with a 14-day period for comments which ended on
May 27, 1998.  No comments have been received by the Commission
regarding this filing.
          The proposed Centrex Service provides a mix of analog
and Integrated Services Digital Network (ISDN) lines to several 
locations in the City of Nashua.  Provisions in the Contract
provide for additional services to be added on a price-per-line
basis.  Termination of the Contract by the City of Nashua, prior
to the end of the term, requires the city to pay the present
value of any outstanding payments for the remainder of the
contract period.         The Centrex Service provided by this Special Contract
is a competitive alternative to Private Branch Exchange (PBX)
Service and approval of this contract allows Bell Atlantic to
respond to the competitive market.  The cost data demonstrates
that the proposed rates for Centrex Service exceed the relevant
costs, thus, Staff has recommended that the Commission approve
this Special Contract.
          We have reviewed the petition and the Staff
recommendation and find the proposed Special Contract to be in
the public interest.  
          Based upon the foregoing, it is hereby
          ORDERED, that Bell Atlantic's Special Contract with   
the City of Nashua is approved; and it is

          FURTHER ORDERED, that the Commission retains authority
to approve any assignment by Bell Atlantic of its rights and
obligations under this Special Contract; and it is                    FURTHER ORDERED, that during any rate case or rate
redesign filed by Bell Atlantic during the life of this Special
Contract, the Commission will consider whether any changes should
be made to the revenue requirements or cost studies as a result
of the rates afforded the City of Nashua in this Special
          By order of the Public Utilities Commission of New
Hampshire this eighth day of June, 1998.

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

Attested by:

Thomas B. Getz
Executive Director and Secretary