DR 97-238
                 Connecticut Valley Electric Company Inc.
       1998 Conservation and Load Management Percentage Adjustments
          Order Suspending Interim C&LMPAs for November 1998 and
     Order NISI Approving Interim C&LMPAs Effective December 31, 1998
                         O R D E R   N O.  23,075
                             December 1, 1998

         On October 30, 1998, Connecticut Valley Electric
Company Inc. (CVEC) filed with the New Hampshire Public Utilities
Commission a request to change the current Conservation and Load
Management (C&LM) Percentage Adjustments (C&LMPA) applicable to
Residential and Commercial/Industrial (C&I) customers to Interim
C&LMPAs of zero effective on bills-rendered December 1, 1998.
         CVEC's August 1998 C&LM variance report dated October
21, 1998, which was filed with the Commission, stated that the
Residential C&LMPA variance is expected to result in an
overcollection of $5,741 or 17.9% at December 31, 1998 and that
the C&I C&LMPA variance is expected to result in an
undercollection of $20,039 or 22.1% at December 31, 1998.  
         CVEC's tariff pages, 6th Revised Page 19 and 10th
Revised Page 20, which authorize the C&LMPA, provide CVEC the
opportunity to apply for an appropriate Interim C&LMPA in the
event that conditions indicate that the over/undercollections
will vary by ten percent (10%) or more.  As stated above, the
overcollection for Residential and the undercollection for C&I
are expected to be greater than the 10% trigger at December 31,
         CVEC is not seeking Interim C&LMPAs that would result
in entirely eliminating any over/undercollections at December 31,
1998.  By Order No. 22,536 (March 31, 1997) which approved a
stipulation entered into between CVEC and Staff, the Commission
allowed CVEC to ramp down its C&LM activities in 1997. Carryover
projects were completed in early 1998.  In CVEC's 1999 C&LMPA
filing, Docket DR 98-192, CVEC has proposed to collect the net
present value of all the C&LM-related Net Revenue Loss remaining
through the year 2024, net of the above proposed
over/undercollections, and a modest amount for variance report
work.  CVEC has also proposed that the 1999 C&LMPAs be applicable
to off-season bills only.  Since December 1998 is a peak billing
month, changing the 1998 C&LMPAs to zero in the instant filing
will emulate the rate design CVEC has proposed in the 1999 C&LMPA
filing which serves to flatten the seasonality of rates.
         On November 25, 1998, Commission Staff filed a memo
stating that it had reviewed CVEC's request and recommends that
the Commission approve the interim C&LMPAs.  
         Based upon our review of the filing and Staff's
recommendations, we will approve the change of the current
C&LMPAs to zero effective January 1, 1999.  We believe that the
interim C&LMPAs will mitigate some of the over/undercollections
projected by CVEC and that minimization of any
over/undercollections is in the public interest.  Although we
approve the interim C&LMPAs, we are not ruling on any proposal
CVEC has made in its 1999 C&LMPA filing, Docket DR 98-192.  The
Commission will be issuing an Order of Notice shortly in that
docket which will establish dates for a Prehearing Conference and
motions to intervene.  
         Additionally, we waive the application of N.H. Admin.
Rules, Puc 1203.05(a), which requires generally that rate changes
be implemented on a service-rendered basis, and will allow CVEC
to implement its C&LMPAs on a bills-rendered basis.  This waiver,
pursuant to Puc 201.05, produces a result consistent with the
principles embodied in Puc 1203.05(b), which sets forth
exceptions for allowing rate changes on a bills-rendered basis,
and is in the public interest because it eliminates consumer
confusion and reduces administrative costs.
         Based upon the foregoing, it is hereby 
         ORDERED, that the following tariff page of CVEC,
     requested for effect December 1, 1998, is suspended:
         NHPUC No. 5 - Electricity, 11th Revised Page 20;
     and it is
         FURTHER ORDERED NISI, that the interim C&LMPAs of zero
     shall become effective January 1, 1999 on a bills-rendered basis;
     and it is
         FURTHER ORDERED, that pursuant to N.H. Admin. Rules,
     Puc 1604.03 or Puc 1605.03, CVEC shall cause a copy of this Order
     Nisi to be published once in a statewide newspaper of general
     circulation or of circulation in those portions of the state
     where operations are conducted, such publication to be no later
     than December 8, 1998 and to be documented by affidavit filed
     with this office on or before December 15, 1998; and it is
         FURTHER ORDERED, that all persons interested in
     responding to this petition be notified that they may submit
     their comments or file a written request for a hearing on this
     matter before the Commission no later than December 22, 1998; and
     it is
         FURTHER ORDERED, that any party interested in
     responding to such comments or request for hearing shall do so no
     later than December 29, 1998; and it is
         FURTHER ORDERED, that this Order Nisi shall be
     effective January 1, 1999, unless the Commission provides
     otherwise in a supplemental order issued prior to the effective
     date; and it is
         FURTHER ORDERED, that CVEC shall file a compliance
     tariff with the Commission on or before December 31, 1998, in
     accordance with N.H. Admin. Rules, Puc 1603.02(b).
         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