DR 98-063 WEST SWANZEY WATER COMPANY, INC. Special Contract with Keene Housing Authority Order Nisi Approving Special Contract O R D E R N O. 22,936 May 14, 1998 On June 24, 1997, West Swanzey Water Company (West Swanzey) submitted a proposed special contract with the Keene Housing Authority (Developer) to construct a water main extension to serve a housing development of approximately 24 units in the Town of West Swanzey, New Hampshire. Under the terms of the proposed contract executed on March 31, 1997, West Swanzey is seeking a departure from the terms and conditions governing the funding of a main extension as specified in its tariff. In accordance with the main extension provisions of the tariff, a customer will make a "contribution in aid of construction" for mains in excess of 100 feet. The main extension in the proposed special contract is approximately 2,800 feet. The proposed contract will require the Developer to fund the construction of the eight (8) inch ductile iron main and other appurtenances. West Swanzey will subsequently reimburse the developer $40,000 to be applied to the cost to construct the main. This amount is approximately 50% of the total main extension cost. The remaining portion contributed by the developer is for main extension cost in excess of 100 feet which is required to be paid by the developer. Under the terms of the proposed special contract the Developer agrees to a consumption of a minimum of 900,000 gallons per year for 30 years. West Swanzey's currently approved water tariff will govern all other terms and conditions under which water service will be provided. Approval for the financing of the $40,000 to be furnished by the utility was previously granted by Commission Order No. 22,801 on December 9, 1997. Staff has reviewed the terms and conditions of the proposed special contract and recommends it be approved as submitted. Staff believes special circumstances exist which justify a departure from the terms and conditions of West Swanzey's main extension provisions given the additional customer base and increased revenue associated with the construction of this main extension. We have reviewed the contract and the Staff recommendation and find the proposed contract justified by the special circumstances and consistent with the provisions of RSA 378:18 in that the departure from the tariff is just and consistent with the public interest. Based on the foregoing, it is hereby ORDERED NISI, that West Swanzey Water Company's proposed main extension special contract with the Keene Housing Authority is APPROVED; and it is FURTHER ORDERED, that pursuant to the N.H. Admin. Rules, Puc 1604.03, West Swanzey shall cause a copy of this Order Nisi to be published once in a newspaper of general circulation, in the area effected, such publication to be no later than May 21, 1998 and to be documented by affidavit filed with this office on or before May 28, 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 the matter before the Commission no latter than June 4, 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 June 11, 1998; and it is FURTHER ORDERED, that this Order Nisi shall be effective June 15, 1998 unless the Commission provides otherwise in a supplemental order issued prior to the effective date. By order of the Public Utilities Commission of New Hampshire this fourteenth 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