DE 98-124 GAS RESTRUCTURING Unbundling and Competition in the Gas Industry Order Approving Methodology For Developing a Record O R D E R N O. 23,018 September 14, 1998 APPEARANCES: McLane, Graf, Raulerson & Middleton by Steven Camerino, Esq. for EnergyNorth Natural Gas, Inc.; LeBoeuf, Lamb, Greene & MacRae, L.L.P by Meabh Purcell, Esq. for Northern Utilities Inc.; Ransmeier & Spellman by Dom S. D'Ambruoso, Esq. for New Hampshire Gas Corporation & New York State Electric & Gas Corporation; Office of the Consumer Advocate, by William Homeyer, Esq.; and, Gary Epler, Esq. for the Staff of the New Hampshire Public Utilities Commission. I. PROCEDURAL HISTORY On July 8, 1998, the Commission issued an order of notice opening a docket to address unbundling and competition in the gas industry. The order directed interested parties to file written recommendations on the objectives, procedures and methodology to be employed for developing a record pertinent to gas restructuring and competition. In addition, the Commission directed interested parties and Staff to conduct a technical session on August 18, 1998 to review the recommendations and attempt to adopt a common approach to developing a record. II. HEARING At the hearing, Commissioner Geiger, presiding, noted and granted the requests for intervention by New Hampshire Gas Corporation (NHGC), New York State Gas & Electric Corporation (NYSEG), City of Manchester (Manchester), MainePower, AllEnergy Marketing Company, L.L.C. (AllEnergy) and Enron Energy Services (Enron). Commission Staff (Staff) indicated that recommendations had been received by EnergyNorth Natural Gas Inc. (ENGI), Northern Utilities, Inc. (Northern), Office of Consumer Advocate (OCA), NHGC, NYSEG, Enron, and Manchester. Staff stated that pursuant to the order of notice, a technical session was held on August 18, 1998. Staff noted that representatives of ENGI, OCA, Northern, NHGC & NYSEG, AllEnergy, and Enron were in attendance. Staff set forth the issues at the technical session as follows: A. The parties and Staff agreed to follow the recommended procedures submitted by ENGI with the caveat that if the procedures proved to be inefficient, the parties reserved the right to petition for a change in the procedures. B. The parties and Staff agreed that in order to conserve resources, Staff would perform the role of facilitator. However, it was agreed that the role of the facilitator would be reviewed in the event of conflict, or in the interest of efficiency. C. The parties and Staff agreed that the proceeding was to be conducted as a collaborative and that it did not lend itself to a formal procedural schedule at this time. In place of a procedural schedule, the participants have scheduled the following dates and activities for initiation of the collaborative; Educational Sessions, September 28, 29, 1998, Discussion of Issues, October 14, 15, November 3, 4, and December 1, 2, 1998. The Commission is invited to the educational sessions should the Commission determine it is appropriate to attend. D. The parties and Staff have agreed to submit reports to the Commission at critical phases or when milestones have occurred. E. The parties and Staff have agreed to investigate the use of customer surveys and focus groups as a means of obtaining a customer viewpoint on restructuring the industry. F. The parties and Staff agreed that it would be premature given the collaborative process for the parties to deliver preliminary positions at the August 26, 1998 hearing. On the issue of bifurcation, Staff indicated that given the collaborative nature of the proceeding, and the fact that Staff has not formulated a position, the issue was not ripe. ENGI and Northern stressed the need for input from customers and indicated that feedback should be obtained early in the process. Northern also noted that although it had agreed to Staff acting in the facilitator role, it might be necessary to examine other possibilities. Staff noted that it had been in contact with the Consumer Affairs Division concerning this issue and was prepared to address the issue at the October meetings. The Commission also indicated that the Consumer Affairs Division had recent experience working with consultants in public relations and advertising in the electric Restructuring proceeding. With respect to a potential end date to the proceeding, Staff anticipated a filing by early summer, however, it should be noted that some of the parties felt that an early June filing was overly optimistic. The Business & Industry Association of New Hampshire (BIA) requested intervention orally and was directed to file a motion in writing and the parties were advised to file written objections if appropriate. III. COMMISSION ANALYSIS We recognize the complexity of this proceeding and agree with the parties and Staff that a collaborative approach is the most preferable procedure for developing a record. We acknowledge that as the process develops it may be necessary to entertain an alternative approach should circumstances warrant. Consequently, we approve the procedures presented and filed by Staff at the hearing. In response to an oral request for intervention by the BIA at the hearing, BIA was directed to file a petition in writing and advised the parties to respond where appropriate. Seeing no objection, we approve the motion of BIA to intervene. We also note that this proceeding was predicated upon severable earlier dockets and that there is some confusion with respect to the service list. With the exception of the natural gas utilities, all interested parties must file petitions for intervention in the instant docket. Based upon the foregoing, it is hereby ORDERED, that the recommended procedures and schedule for developing a record are adopted; and it is FURTHER ORDERED, that the late-filed Petition to Intervene of the BIA is granted; and it is FURTHER ORDERED, that all interested parties who have not previously submitted Petitions to Intervene do so on or before September 24, 1998; and it is FURTHER ORDERED, that any party objecting to a Petition to Intervene make said Objection on or before September 28, 1998. By order of the Public Utilities Commission of New Hampshire this fourteenth 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