DR 98-058
WILTON TELEPHONE COMPANY
Overearnings Investigation
Order Approving Temporary Rates
O R D E R N O. 22,968
June 30, 1998
APPEARANCES: Devine, Millimet & Branch by
Frederick J. Coolbroth, Esq. for Wilton Telephone Company;
the Office of the Consumer Advocate by William P. Homeyer
for residential ratepayers, and E. Barclay Jackson, Esq. for
the Staff of the New Hampshire Public Utilities Commission.
I. PROCEDURAL HISTORY
Pursuant to New Hampshire Public Utilities
Commission (Commission) Order No. 22,823 in DR 97-187, the
Staff of the Commission (Staff) conducted and prepared for
the Commission a review of the earnings of Wilton Telephone
Company (Wilton) and the relationship of those earnings to
Wilton's toll rates. On April 20, 1998, the Commission
issued an Order of Notice opening this docket. The Order of
Notice scheduled a prehearing conference for May 27, 1998,
to consider motions to intervene, establish a procedural
schedule and to address the issue of temporary rates. The
Order of Notice required Wilton, Staff, and all parties to
prefile testimony on the issue of temporary rates by May 20,
1998.
By motion filed April 29, 1998, the Office of the
Consumer Advocate (OCA) requested that the Commission amend
the schedule for filing testimony on temporary rates or, in
the alternative, permit the OCA to file rebuttal testimony
on that issue after the May 27 prehearing conference.
Wilton objected to the OCA's motion on procedural grounds.
By letter dated May 18, 1998, the Commission granted the
OCA's request to file rebuttal testimony and rescheduled the
date for hearing evidence on the issue of temporary rates to
June 19, 1998. Staff and Wilton filed testimony on
temporary rates on May 22, 1998. After discussions, Staff
and Wilton reached agreement regarding the level of
temporary rates. The OCA concurred in the agreement.
After the duly noticed prehearing conference on
May 27, 1998, the Commission issued an order approving a
procedural schedule for the permanent rate case, Order No.
22,960.
At the hearing on temporary rates on June 19,
1998, the parties and Staff presented a Stipulation solely
with regard to the issue of temporary rates in this docket.
II. POSITIONS OF THE PARTIES AND STAFF
Staff and the parties agreed that Wilton's
existing retail rates should go into effect as temporary
rates as of the date of issuance of this order. The effect
of temporary rates is to permit reconciliation of any
overearnings or underearnings by the company, pursuant to
RSA 378:27, retroactive to the date of this order.
III. COMMISSION ANALYSIS
Our authority to set temporary rates is explicitly
authorized by RSA 328:27, conditioned on a finding that such
rates are in the public interest. Temporary rates are
established without the extensive investigation as is
required for the determination of permanent rates. Re New
England Telephone & Telegraph Company v. State, 95 N.H. 515
(1949); Pennichuck Water Works, Inc., 78 NH PUC 197 (1993).
The standard for determining temporary and permanent rates
requires that rates must be sufficient to yield not less
than a reasonable return on the cost of utility property
that is used and useful in the public service less accrued
depreciation. RSA 378:38, Pennichuck, 78 NHPUC 197, 200.
In the instant case the parties and Staff propose
temporary rates at current levels. We approved Wilton's
rates in Docket DF 94-021 (June 6, 1994 ). We find that the
proposed temporary rates are consistent with the public
interest and sufficient to yield a reasonable return on the
cost of Wilton's property. Staff will be conducting an
audit of Wilton, which will provide the information needed
to determine the company's permanent rate level.
Based upon the foregoing, it is hereby
ORDERED, that temporary rates for Wilton shall be
set at current levels.
By order of the Public Utilities Commission of New
Hampshire this thirtieth day of June, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary