DS 98-110
                 Request to Introduce Centrex Service
            Order Extending the Time for Review by 30 days
                       O R D E R   N O.  22,979
                            July 13, 1998
         On June 18, 1998, Granite State Telephone Company (GST
or Company) petitioned the New Hampshire Public Utilities
Commission (Commission) for authority to introduce Centrex
Service pursuant to RSA 374:22 and RSA 374:26.  Along with the
petition, GST attached cost support data for Centrex services. 
         Centrex service, according to GST, is a Central Office
based business service which provides advanced business features
and services. The standard features included with the proposed
Centrex services are Touchtone, Direct Inward Dialing, Intercom
Dialing, Call Forward, etc. The proposed monthly rates range from
$12.31 to $22.41, depending on the payment method. Customers may
elect to pay for Centrex service on a month to month basis or
under a service contract.  Customers paying for services under a
contract will be subject to termination liabilities in the event
of early termination. In addition, one-time service establishment
and central office equipment charges apply.  

         Staff has reviewed the petition and recommends that the
Commission extend the time for review. In Staff's opinion, the
cost support data attached to the Company's petition is only a
summary sheet of anticipated costs and potential demand for
Centrex service.  On June 30, 1998, Staff made a request to GST
for supplemental information that would provide greater detail in
support of the Company's petition. To date, GST has not provided
such information. Because the petition does not include adequate
cost support information, Staff requests assurance that the cost
to implement Centrex service is balanced by the revenues
resulting from the demand for its service.  In such a scenario,
the proposed rates will not exceed the cost of providing the
         We have reviewed the petition and Staff's
recommendation. We commend the Company for attempting to
introduce new services. However, we are concerned by the
Company's lack of detail in support of its proposal.  Therefore,
consistent with RSA 378:6, IV, we will extend the time for review
of this petition for 30 days and order GST to provide the
information necessary to insure that Centrex customers or GST
stockholders fully cover the cost of providing Centrex services.

         Based upon the foregoing, it is hereby
         ORDERED, that pursuant to RSA 378:6, IV the time for
review of this petition is extended for 30 days; and it is
         FURTHER ORDERED, that GST file information necessary to
insure that either Centrex customers or stockholders cover the
cost of Centrex under the proposed rates.
         By order of the Public Utilities Commission of New
Hampshire this thirteenth day of July, 1998.

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

Attested by:

Thomas B. Getz
Executive Director and Secretary