DR 98-049 NORTHERN UTILITIES, INC. Recovery of Environmental Response Costs Order Granting Protective Treatment O R D E R N O. 23,006 September 1, 1998 On August 7, 1998, Northern Utilities, Inc. (Northern) filed with the New Hampshire Public Utilities Commission (Commission) a Motion for Protective Order and Confidential Treatment (Motion) of information pertaining to Northern's efforts in seeking insurance recovery of remediation costs related to its former manufactured gas plant (MGP) sites, including details of Northern's negotiations, settlement discussions and dealings with its insurance carriers, as well as those of its parent company, Bay State Gas Company (Bay State). On July 8, 1998, the Commission Staff (Staff) submitted data request 1-8 to Northern, requesting details regarding Northern's and Bay State's efforts to recover remediation costs from potentially responsible parties. Northern responded to the data request by indicating that Northern and Bay State have agreed with all of their insurance carriers to keep confidential any negotiations or settlement discussions. Northern also indicated that disclosure of its negotiating strategies with its insurance carriers to the public would harm Northern's and Bay State's interests and those of their ratepayers. Northern seeks protection of this information in both the discovery and the hearing phases of this docket. In its Motion, Northern states that the documents contain confidential commercial information and are proprietary in nature and/or constitute trade secrets which fall within the exemption from public disclosure of RSA 91-A:5,IV and N.H. Admin. Rules, Puc 204.06. Northern also states that it does not disclose the identified information and terms to anyone outside its corporate affiliates and representatives. Staff agreed that the material qualified for protection pursuant to RSA 91-A and our administrative rules. The Commission recognizes that the information identified above is critical to the review of Northern's proposed recovery of environmental response costs by the Commission, Staff and the Office of Consumer Advocate (OCA). We also recognize the need for confidential treatment of the settlement negotiations and any settlements between Northern and their insurance carriers. Based on the company's representations, under the balancing test we have applied in prior cases, e.g.,Re New England Telephone Company (Auditel), 80 NHPUC 437 (1995); Re Bell Atlantic, Order No. 22,851 (February 17, 1998); Re EnergyNorth Natural Gas, Inc., Order No. 22,859 (February 24, 1998), we find that the benefits to Northern of non-disclosure in this case outweigh the benefits to the public of disclosure. We will, therefore, grant Northern's Motion for Protective Treatment pursuant to RSA 91-A:5,IV and N.H. Admin. Rules, Puc 204.06. Based upon the foregoing, it is hereby ORDERED, that Northern's Motion for Protective Treatment is GRANTED to allow Staff and the OCA to review fully Northern's proposed recovery of environmental response costs and to protect from public disclosure the information delineated above which is relevant to the proceeding; and it is FURTHER ORDERED, that Northern's response to Staff Data Request 1-8 shall be and hereby designated as Protected Material; and it is FURTHER ORDERED, that this Order is subject to the ongoing rights of the Commission, on its own motion or on the motion of Staff or any party or any other member of the public to reconsider this Order in light of RSA 91-A, should circumstances so warrant. By order of the Public Utilities Commission of New Hampshire this first day of September, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary