DR 98-139 Public Service Company of New Hampshire Special Contract Service Rates Order Approving Delay in Filing Procedural Schedule O R D E R N O. 23,012 September 8, 1998 APPEARANCES: Gerald M. Eaton, Esq. for Public Service Company of New Hampshire; Representative Jeb E. Bradley; Ransmeier and Spellman by Dom S. D'Ambruoso for Anheuser-Busch; Gallagher, Callahan and Gartrell by David A. Garfunkel, Esq. for the Wausau Papers of New Hampshire; Dupont Group by James Monahan for Cabletron Systems; Anne F. Ross, Esq.; James T. Rodier, Esq., Henry Veilleux for the Business and Industry Association; Pentti Aalto; Office of the Consumer Advocate by Michael Holmes, Esq. for residential ratepayers; and Eugene F. Sullivan, III, Esq. for the Staff of the New Hampshire Public Utilities Commission On July 31, 1998, the New Hampshire Public Utilities Commission (Commission) issued an Order of Notice opening a proceeding to consider Public Service of New Hampshire's (PSNH) May 31, 1998, request to modify its tariff to amend certain special contracts. PSNH's proposed tariff change was intended to provide a rate decrease to customers taking service under special contracts tied to the Fuel and Purchase Power Adjustment Clause (FPPAC) and the "BA" component of FPPAC. The filing was precipitated by a change made to the BA factor of the FPPAC in DR 98-014 to provide base rate relief to all PSNH ratepayers. The Order of Notice scheduled a pre-hearing conference for August 25, 1998, for each party to provide a preliminary statement of its position with regard to PSNH's petition and to set a procedural schedule to govern the Commission's investigation into the proposed tariff modification. Prior to the pre-hearing conference, requests to intervene were received from Representative Jeb E. Bradley, Anheuser-Busch (AB), Campaign for Ratepayers Rights (CRR), Wausau Papers of New Hampshire (Wausau), Cabletron Systems (Cabletron), Anne Ross, Esq., James Rodier, Esq., and Elliot and Williams Roses, Inc. At the duly noticed pre-hearing conference on August 25, 1998, representatives from PSNH, the New Hampshire Public Utilities Commission Staff (Staff), the Office of Consumer Advocate (OCA), Wausau, the Business & Industry Association of New Hampshire (BIA), AB, and CRR were present along with Mr. Rodier, Ms. Ross, Representative Bradley and Mr. Aalto. The previously filed requests for intervention were granted. Following the pre-hearing conference the BIA filed for intervention. No objections having been received, the intervention is granted. In accordance with the Order of Notice, the parties and Staff stated their initial positions. PSNH stated that changes to the BA portion of FPPAC created an unintentional rate increase to 35 special contract customers. PSNH sought to solve the discrete problem of eliminating the unintended rate increase to those 35 special contract customers without affecting other customers' rates. Rather than having to renegotiate 35 contracts, PSNH proposed to address this issue in one proceeding through a tariff revision. The BIA's concern is that the value of the affected special contracts be retained and not impact other customers. Similarly, Representative Bradley took the position that there should be no impact on other customers in any mechanism undertaken to maintain the value of the special contracts. Ms. Ross concurred with the position taken by BIA and Representative Bradley. AB and Wausau stated the joint position that the special contracts should be amended to maintain the BA impact at the current level. Cabletron stated its concern that any impact from adjusting the special contracts not place any further burden on Cabletron and other ratepayers not being served under special contracts. Mr. Rodier took the position that the end result of any adjustment to special contracts should result in no effect upon special contract rates. He argued that the mechanism should not be through a tariff change but through an amendment which would be applied uniformly to all 35 special contracts. The OCA stated that the contracts in question were negotiated by sophisticated participants at arms length and approved by the Commission. The Commission would have to be presented with evidence that any change to these contracts is in the public interest. CRR concurred with the position of the OCA. Staff took no position. The Parties participated in a technical session at which they discussed other proceedings that would affect special contacts and the scope of this docket. The parties and Staff scheduled another technical session for September 3, 1998. Following the September 3, 1998 technical session, Staff notified the Commission by letter dated September 4, 1998, that the parties and Staff were working towards a generic modification to these 35 special contracts to address potential changes in the inputs to the FPPAC rate and changes in anticipation of retail competition. The letter stated the parties would meet again on October 6, 1998, to discuss these issues. Based upon the foregoing, it is hereby ORDERED, that the parties shall meet on October 6, 1998 and file with the Commission on or before October 9, 1998, a proposed procedural schedule for the remainder of this proceeding; and it is FURTHER ORDERED, that the motions to intervene are granted; and it is FURTHER ORDERED, that PSNH shall notify all 35 special contracts at issue herein of the proposed generic change to these special contracts; and it is FURTHER ORDERED, that PSNH shall notify all the parties to DR 96-150 and all other parties holding special contracts of its proposed changes to these special contracts. By order of the Public Utilities Commission of New Hampshire this eighth day of September, 1998. Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director & Secretary