DF 96-210 TILTON & NORTHFIELD AQUEDUCT COMPANY, INC. Petition for Authority to Issue Securities and Increase Rates Order Approving Procedural Schedule O R D E R N O. 22,866 March 10, 1998 In Docket DF 95-185, by Order No. 21,876, the New Hampshire Public Utilities Commission (Commission) authorized the Petitioner, Tilton & Northfield Aqueduct Company, Inc. (TNA or the Company) to issue securities in an amount not to exceed $3,124,398. Order No. 21,876 also found the proposal to finance the construction of gravel packed wells in Northfield and a new transmission system to comply with the Safe Drinking Water Act (SDWA) to be prudent uses of the funds. On August 27, 1996, the Commission issued Order No. 22,296 in DF 96-210 which provided authorization for borrowing an additional $64,318 for larger transmission mains in order to achieve acceptable fire flows. On February 11, 1997, the Commission issued Order No. 22,502 which increased TNA's financing authorization up to $3,841,965, to enclose its storage reservoir rather than use a floating cover system. Finally, Order No. 22,564 (April 21, 1997) further authorized the Company to increase its total borrowing authority up to $4,159,889. That increase in financing related to the lapse in time since the original estimates in 1995 and subsequent higher bids for the well pumping station and the water main improvement projects. On December 30, 1997, the Company filed financial schedules which would provide for a 192% increase in its currently approved rates as a result of the construction of the wells and transmission system (Phase I of the project). Those schedules included the Company's calculations of the final construction costs of Phase I as well as related increases in expenses. A duly noticed prehearing conference was held on February 25, 1998. The Commission received no requests for intervention. Staff indicated that it would meet with representatives of TNA following the prehearing conference to prepare a proposed procedural schedule. Staff subsequently submitted the following proposed schedule: Data Requests by Staff March 6, 1998 Company Responses to Data Requests March 11, 1998 Hearing March 16, 1998 at 1:30pm Also at the prehearing conference, in accordance with the Order of Notice, the Company and Staff stated their positions with regard to the issues in the filing for the record. An audit had already been conducted by Staff, and the Company and Staff envision an agreement on the proposed increase in rates prior to the proposed date of the hearing. Staff and the Company also discussed an additional requested financing package filed by the Company on February 11, 1998 which would finance main replacements made necessary by increased system pressure. Staff and the Company will work towards an expedited resolution that will meet the needs of the Company while limiting the requested water system improvements to those which are related to the current SDWA project. We find the proposed procedural schedule to be reasonable and will, therefore, approve it for the duration of the proceeding. Based upon the foregoing, it is hereby ORDERED, that the procedural schedule delineated above is APPROVED. By order of the Public Utilities Commission of New Hampshire this tenth day of March, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary