DR 98-043 New Hampshire Electric Cooperative, Inc. 1998-99 Demand Side Management Filing Order Approving Interventions and Procedural Schedule O R D E R N O. 22,937 May 15, 1998 APPEARANCES: Dean, Rice & Kane by Anne Davidson, Esq., for the New Hampshire Electric Cooperative, Inc.; Heidi Kroll for the Governor's Office of Energy and Community Services; Kenneth E. Traum for the Office of the Consumer Advocate; and Michelle A. Caraway and James J. Cunningham, Jr. for the Staff of the New Hampshire Public Utilities Commission. I. PROCEDURAL HISTORY On March 23, 1998, the New Hampshire Electric Cooperative, Inc. (NHEC) filed with the New Hampshire Public Utilities Commission (Commission) a petition for approval of its Demand Side Management (DSM) Program for the program year July 1, 1998 through June 30, 1999. Included in the petition is the supporting testimony of Bob Reals, Manager of Energy Services, and Heather Saladino, Manager of Rates & Finances. NHEC proposes a DSM Program budget of $1,206,059 with $827,332 allocated for residential programs and $378,726 allocated for commercial/industrial programs. NHEC intends to offer a program portfolio of the same ten programs approved by the Commission for the 1997-98 program year with only minor program modifications. NHEC proposes to change its current DSM surcharge for its residential class from $0.00174 per kilowatt-hour (kWh) to $0.00159/kWh, for its general class from $0.00231/kWh to $0.00203/kWh, and for the primary general class from $0.00270/kWh to $0.00174/kWh. By an Order of Notice issued April 3, 1998, the Commission scheduled a prehearing conference and first technical session for April 29, 1998, set deadlines for intervention requests and objections thereto, outlined a proposed procedural schedule, and required the Parties and Commission Staff (Staff) to summarize their positions with regard to the filing for the record. On April 20, 1998, the Conservation Law Foundation (CLF) filed a Petition to Intervene. On April 23, 1998, the Governor's Office of Energy and Community Services (ECS) filed a Motion for Limited Intervention. No party objected to either CLF's or ECS's petitions and the Commission granted their interventions at the prehearing conference. The Office of the Consumer Advocate (OCA) is a statutorily recognized intervenor. At the prehearing conference, NHEC, ECS, OCA and Staff agreed to the proposed procedural schedule as outlined in the Order of Notice and as follows: Data Requests by Staff and May 4, 1998 Intervenors Company Data Responses May 13, 1998 Technical Session May 20, 1998 Testimony by Staff and May 27, 1998 Intervenors (by fax) Data Requests by the Company May 29, 1998 Data Responses by Staff and June 3, 1998 Intervenors Settlement Conference, 10 AM June 5, 1998 Filing of Settlement Agreement, if any June 10, 1998 Hearing, 10 AM June 17, 1998. At the prehearing conference, in accordance with the Order of Notice, NHEC, ECS, OCA and Staff stated their positions with regard to the filing for the record. NHEC stated that it has presented the Commission with a DSM Program similar to the one approved by the Commission last year. In order to recover costs associated with its program, NHEC has revised its DSM surcharges which reflect rate decreases for all of its rate classes. The DSM surcharges also reflect a carry-over from last year's program of approximately $260,000. ECS stated that it supports the types and range of programs proposed by NHEC. ECS also stated that it encourages NHEC to consolidate its efforts regarding market transformation with regional and national initiatives to take advantage of possible synergies. Additionally, ECS stated that its concern that approval of underspending of NHEC's DSM Program budget to effect rate decreases would set a bad precedent for other utilities in subsequent program years. The OCA stated that as a preliminary position, it has no major problems with NHEC's filing. However, should NHEC eventually prevail at the Federal Energy Regulatory Commission in its case against Public Service Company of New Hampshire regarding the Amended Partial Requirements Agreement, then the OCA believes that the cost-effectiveness of NHEC's proposed programs will significantly change due to lower avoided costs. Staff stated that its concerns relate to the interplay between NHEC's current rate case and its effects on this DSM Program filing, whether NHEC intends to recover lost revenues and how NHEC developed its budget for the 1998-99 program year. CLF was not present at the prehearing conference but asked Staff to state that it currently has no position but that CLF intends to fully participate in the docket and in the technical session scheduled to immediately follow the prehearing conference. II. COMMISSION ANALYSIS We find the proposed procedural schedule to be reasonable and will, therefore, approve it for the duration of the case. In so far as ECS's request to participate in the docket is concerned, we note that our rules no longer specify what limited intervention status entails, though RSA 541-A:32 gives us the authority to impose conditions on participation in the proceeding. We take at face value ECS's request in this docket for limited intervention to participate "in technical / settlement sessions, and submitting brief written comments, if appropriate" and will grant their request. To the extent they wish to offer detailed comments on the specifics of NHEC's or Staff's or any other party's testimony or filings, as they have done in some other recent DSM proceedings, they should submit prefiled direct testimony and be subject to cross-examination, which would amount to full intervenor status. We appreciate ECS's willingness to take the time to participate in our dockets and encourage them to continue to do so. Based upon the foregoing, it is hereby ORDERED, that CLF's Petition to Intervene and ECS's Motion for Limited Intervention are GRANTED; and it is FURTHER ORDERED, that the procedural schedule delineated above is APPROVED. By order of the Public Utilities Commission of New Hampshire this fifteenth 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