DR 98-025 NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC. Requests for Temporary and Permanent Rates Order Scheduling Prehearing Conference, Establishing a Procedural Schedule and Hearing on Temporary Rates and Suspending Tariff Pages O R D E R N O. 22,926 May 12, 1998 On March 4, 1998, the New Hampshire Electric Cooperative, Inc. (NHEC or the Company), pursuant to N. H. Admin. Rule Puc 1604.05, filed with the New Hampshire Public Utilities Commission (Commission) a notice of intent to file rate schedules. On April 14, 1998, NHEC filed its Base Rate Application seeking an increase in permanent retail rates of approximately $4.68 million or 5.1%, effective July 1, 1998, with supporting testimony and exhibits. Subsequently, on April 15, 1998, NHEC submitted a motion requesting temporary rates, pursuant to RSA 378:27, with a proposed effective date of July 1, 1998, for the duration of this proceeding. The proposed temporary rate increase would increase rates 5.1% across all classes of service. The filing raises, inter alia, the appropriate level and allocation of temporary and permanent rates, the resulting Times Interest Earned Ratio (TIER) and Debt Service Coverage (DSC), and changes to the Company's tariff. Other issues include the effect of the proposed rates on the Company's rate of return on rate base and Conservation & Load Management surcharges, the recovery of incremental set-up costs related to restructuring, and the replacement of the Power Cost Adjustment (PCA) factor with a Power Cost Recovery Charge (PCRC) which would "unbundle" or separate power cost recovery from the recovery of delivery costs, as well as the adjustments made to test year revenues and expenses. Based upon the foregoing, it is hereby ORDERED, that a Prehearing Conference, pursuant to N.H. Admin. Rules Puc 203.05, be held before the Commission located at 8 Old Suncook Road, Concord, New Hampshire on June 10, 1998 at 10:00 am, at which each party will provide a preliminary statement of its position with regard to the petition and any of the issues set forth in N.H. Admin Rule Puc 203.05(c) shall be considered; and it is FURTHER ORDERED, that the Prehearing Conference may be tape recorded unless a party, at least 5 days in advance of the Prehearing Conference, requests a transcript, in which case the Commission shall order a stenographic record, pursuant to N.H. Admin. Rule Puc 203.05(d); and it is FURTHER ORDERED, that, immediately following the Prehearing Conference, NHEC, the Staff of the Commission and any Intervenors hold a Technical Session to review the petition and allow NHEC to provide any amendments or updates to its filing and to propound oral data requests on the temporary rates; and it is FURTHER ORDERED, that the following procedural schedule: Oral Data Requests by Staff and June 10, 1998 and Intervenors on Temporary Rates Written Follow-up Data Requests to June 11, 1998 Temporary Rates to be faxed by the close of business Responses to Oral Data Requests June 19, 1998 Propounded at the 1st Technical Session Testimony on Temporary Rates July 2, 1998 by Staff and Intervenors Settlement Conference on July 8, 1998 Temporary Rates Filing of Settlement Agreement, July 10, 1998 if any Hearing on Temporary Rates July 15, 1998 Data Requests Set #1 by Staff July 30, 1998 and Intervenors on Permanent Rates Company Data Responses to Set #1 August 13, 1998 Technical Session August 24 , 1998 Data Requests Set #2 by Staff September 4, 1998 and Intervenors Company Data Responses to Set #2 September 17, 1998 Testimony by Staff and October 15 , 1998 Intervenors Data Requests by the Company October 29, 1998 Data Responses by Staff and November 12 , 1998 Intervenors Settlement Conference on November 19 , 1998 Permanent Rates at 10:00 A.M. Filing of Settlement, if any November 30, 1998 Hearings, daily at 10:00 A.M. December 8, 9, 10 and 11, 1998 is established unless otherwise ordered following the prehearing conference; and it is FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc 203.01, NHEC shall notify all persons desiring to be heard at this hearing by publishing a copy of this Order of Notice no later than May 15, 1998, in a newspaper with statewide and general circulation in those portions of the state in which operations are conducted, publication to be documented by affidavit filed with the Commission on or before June 10, 1998; and it is FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc 203.02, any party seeking to intervene in the proceeding shall submit to the Commission an original and eight copies of a Petition to Intervene with copies sent to NHEC and the Office of the Consumer Advocate on or before June 5, 1998, such Petition stating the facts demonstrating how its rights, duties, privileges, immunities or other substantial interests may be affected by the proceeding, as required by N.H. Admin. Rule Puc 203.02 and RSA 541-A:32,I(b); and it is FURTHER ORDERED, that any party objecting to a Petition to Intervene make said Objection on or before June 10, 1998; and it is FURTHER ORDERED, that NHEC's proposed tariff, NHPUC No. 18 - Electricity, is hereby suspended pending further review and decision. By order of the Public Utilities Commission of New Hampshire this twelfth day of May, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary