DR 98-139
                  Public Service Company of New Hampshire
                      Special Contract Service Rates
          Order Approving Scope and Proposed Procedural Schedule
                         O R D E R   N O.  23,072
                             December 1, 1998
         This proceeding was initiated by PSNH's May 31, 1998
filing to modify its tariff to amend certain special contracts. 
The filing was made by PSNH in order to ensure that customers
taking service under special contracts tied to the "BA" component
of PSNH's Fuel and Purchased Power Adjustment Clause (FPPAC)
would not realize a rate increase due to the increase in the
FPPAC BA approved by the Commission in Order No. 22,946 issued on
May 29, 1998.  PSNH was allowed to continue to charge customers
on a temporary basis the BA component in effect prior to the
issuance of Order No. 22,946.  The Commission issued an Order of
Notice in this proceeding on July 31, 1998. 
         On November 2, 1998, the Executive Director of the New
     Hampshire Public Utilities Commission (Commission) issued a
     letter which expressed the Commission's concern that the scope of
     the proceeding had exceeded the proposed modifications to the
     Public Service Company of New Hampshire (PSNH) tariff and that
     the Commission had, therefore, determined that a hearing should
     be held on November 13, 1998 to examine the proper scope of the
     proceeding.  At the hearing, PSNH stated that the parties had met
     five times in an effort to resolve the BA problem for special
     contract customers and that the parties and Staff had agreed upon
     a framework for a stipulation which would include a contract
     amendment to the 34 special contract customers affected by the
     change in the FPPAC BA.  PSNH indicated that it would file the
     stipulation and supporting testimony on December 4, 1998. 
     Intervenor and Staff testimony would be filed on December 14,
     1998, and a hearing would be held on December 22, 1998 at 10:00
         PSNH stated that the stipulation would keep the FPPAC
     BA at 4.955 cents per kWh, the FPPAC BA in effect before the June
     1, 1998 change in FPPAC and the level currently included in
     PSNH's temporary tariff amendment.  In addition, PSNH would keep
     the special contract FPPAC rate for these customers constant at
     the currently effective rate of 0.383 cents per kWh.  Both the
     FPPAC BA of 4.955 cents per kWh and the FPPAC rate of 0.383 cents
     per kWh would remain effective until the earlier of the contract
     termination date or the date that retail choice was available to
     all customers.  The stipulation would not address what changes to
     the special contracts would be made at that time. PSNH indicated
     that it will treat the special contract customers as if they paid
     the full FPPAC BA and FPPAC rate should the FPPAC rate change
     from the currently annual effective rate of 0.383 cents per kWh. 
         Based on representations from PSNH at the hearing
     concerning the limited nature of the anticipated stipulation and
     contract amendment, we will approve the proposed procedural
         Based upon the foregoing, it is hereby
         ORDERED, that Public Service Company of New Hampshire
     file the stipulation and contract amendments by December 4, 1998
     and that any intervenor or Staff testimony be filed no later than
     December 14, 1998; and it is 
         FURTHER ORDERED, that a hearing on the merits be held
     at the Commission on December 22, 1998 at 1:30 p.m., and
     continuing to Wednesday, December 23, 1998 as necessary; and it
         FURTHER ORDERED, that the late filed motions to
     intervene by Timken Aerospace and Super Precision Bearings,
     Textron Automotive Company, Portland Pipeline Corporation,
     Monadnock Paper Mills, Inc., Summit Packaging Systems, Inc.,
     American Tissue Mills of New Hampshire, Inc., Hitchiner
     Manufacturing Company, and Nashua Corporation are GRANTED.
         By order of the Public Utilities Commission of New
     Hampshire this first day of December, 1998.
       Douglas L. Patch     Susan S. Geiger       Nancy Brockway
           Chairman           Commissioner        Commissioner
     Attested by:
     Thomas B. Getz
     Executive Director and Secretary