DR 97-239
                    Bodwell Waste Services Corporation
                   Petition for Permanent Rate Increase
                       Order Approving Stipulation 
                         O R D E R   N O.  22,995
                              August 4, 1998

         APPEARANCES: Stephen St. Cyr, for Bodwell Waste
     Services Corp.; Thomas Seidell for Richard H. Girard, City
     of Manchester Alderman-at-Large, on behalf of residents of
     the neighborhoods of Rosecliff and Megan's Meadow; and E.
     Barclay Jackson Esq. for the Staff of the New Hampshire
     Public Utilities Commission.
               On January 13, 1998 Bodwell Waste Services
     Corporation (Bodwell or the Petitioner) filed with the
     Commission, along with supporting testimony and exhibits, a
     proposed tariff page containing an increase in annual
     revenues of $19,985 which would result in an increase in
     permanent rates of approximately 41%.  By Order No. 22,858
     dated February 23, 1998, the Commission suspended the
     proposed tariff and scheduled a prehearing conference for
     March 19, 1998.  Following the prehearing conference, by
     Order No. 22,897, the Commission granted full intervenor
     status to Richard H. Girard, Alderman-at-Large for the City
     of Manchester, who represented residents of the Rosecliff,
     East Meadow, and Megan's Meadow neighborhoods, and approved
     a procedural schedule.  After conducting discovery and
     filing testimony, the Parties and the Staff of the
     Commission (Staff) discussed and resolved all the issues
     involved in this proceeding.  A Settlement Agreement
     (Settlement) was prepared and executed on June 29, 1998. 
     The Parties and Staff presented the terms and conditions of
     the Settlement to the Commission at the hearing on the
     merits of the case held on June 29, 1998.    
               The parties agreed to resolve the issues as
     follows: (1) Bodwell's rate base consists of net plant in
     service of $365,075 and a working capital requirement of
     $4,675 for a total rate base of $369,750; (2) Bodwell's
     capital structure consists of 100% debt at a long term
     interest rate of 8.5%; (3) Bodwell has a revenue deficiency
     of $14,412 resulting in a total annual revenue requirement
     of $62,416; this revenue requirement represents a 30%
     increase over current annual revenues; (4) Bodwell's rate
     structure consists of a flat quarterly charge calculated by
     dividing the annual revenue of $62,416 by the 403 customers,
     resulting in charges of $38.72 per customer per quarter; (5)
     Bodwell shall submit, subsequent to the hearing on the
     merits, an account of its rate case expense, which Staff
     shall review and then offer a recommendation to the
     Commission regarding those expenses.  
               We value the contribution of the intervenor
     ratepayers who took part in technical sessions.  We
     appreciate the information they provided, particularly with
     regard to local circumstances.  In order to receive adequate
     sewer services, these neighborhoods require service by both
     Bodwell and by the City of Manchester.  This Commission has
     limited influence over the rates that these customers pay;
     while it regulates Bodwell's rates pursuant to RSA 378:28,
     it has no authority over those rates charged by the City of
     Manchester.  See RSA 363:2.
               After reviewing the record in this case, we find
     that the terms and conditions contained in the Settlement
     result in just and reasonable rates while providing Bodwell
     an opportunity to earn a reasonable return on its
     investment.  The developments served by Bodwell consist of
     fewer dwelling units than initially planned.  However, we
     find that Bodwell's plant and equipment are prudent, used
     and useful in the public service, in accordance with the
     requirements of RSA 378:28.
               We note the intervenors' concern regarding a
     proposed extension of Bodwell's service area to include part
     of Londonderry, New Hampshire.  This proposal was the
     subject of a separate docket, DE 97-259.  That docket was
     closed as of April 8, 1998, because the proposed expansion
     requires an amendment to the Intermunicipal Sewer Agreement
     between Manchester and Londonderry.  If and when the
     Intermunicipal Sewer Agreement is amended, Bodwell may renew
     its petition for extension and the affected ratepayers may
     intervene and participate in the proceeding.  The increased
     revenue requirement approved in the instant case does not
     include any consideration of or provision for that proposed
               Subsequent to the hearing on the merits the Staff
     submitted a recommendation on July 9, 1998 to allow rate
     case expenses of $6,844 to be recovered over three years
     resulting in a rate case surcharge of $1.42 per customer per
     quarter.  We find this rate case expense reasonable and
     therefore approve it as recommended.
               Based upon the foregoing, it is hereby 
               ORDERED, that the Settlement Agreement entered
     into by Bodwell, the Intervenor and Staff is APPROVED; and
     it is
               FURTHER ORDERED, that Bodwell shall, as provided
     in the Settlement Agreement, bill its 403 customers a
     quarterly flat rate of $38.72 for bills issued on and after
     October 1, 1998; and it is
               FURTHER ORDERED, that that Bodwell shall recover
     its ratecase expenses via a rate case expense surcharge of
     $1.42 per customer per quarter for 12 quarters, commencing
     with bill issued on or after October 1, 1998; and it is
               FURTHER ORDERED, that Bodwell shall file a
     properly annotated tariff with the commission within 14 days
     of the date of this order in accordance with N. H. Admin.
     Rules, Puc 1601 (b).
               By order of the Public Utilities Commission of New
     Hampshire this fourth day of August, 1998.
     Douglas L. Patch      Bruce B. Ellsworth   Susan S. Geiger
     Chairman              Commissioner         Commissioner
     Attested by:
     Claire D. DiCicco
     Assistant Secretary