DR 98-160 Contoocook Valley Telephone Company Overearnings Investigation Order Approving Procedural Schedule O R D E R N O. 23,064 November 13, 1998 APPEARANCES: Devine, Millimet & Branch by Frederick J. Coolbroth, Esq., for Contoocook Valley Telephone Company, et al.; William Homeyer for the Office of the Consumer Advocate; and, Larry S. Eckhaus, Esq., for the Staff of the New Hampshire Public Utilities Commission. On September 22, 1998, the New Hampshire Public Utilities Commission (Commission) issued an Order of Notice pursuant to RSA 365:5 and 378:7 opening an investigation into the level of earnings of Contoocook Valley Telephone Company (CVT). The Order of Notice scheduled a prehearing conference for October 26, 1998 to consider motions to intervene, and to establish the remainder of the procedural schedule. A hearing to address the issue of temporary rates was scheduled for November 20, 1998, with testimony on the issue to be filed by November 10, 1998. At the duly noticed Prehearing Conference on October 26, 1998, the Office of the Consumer Advocate (OCA) appeared on behalf of residential customers as a statutorily mandated party. In accordance with the Order of Notice, the parties and Staff stated their initial positions. CVT informed the Commission that it had just filed a Petition for authority to merge CVT into Merrimack County Telephone (MCT) with the surviving company to be called MCT Telecom. CVT indicated that the merger petition included requests for temporary and permanent rates and that CVT hoped to consummate the merger prior to the conclusion of this proceeding. Staff maintained that CVT was in an overearnings position and that the merger petition, discussion of any merged rates, and other issues contained therein, should be considered as a separate proceeding, although both dockets could proceed along similar time lines. At a Technical Session subsequent to the Prehearing Conference, the parties and Commission Staff (Staff) agreed upon the following procedural schedule, although CVT reserved its right to request a change in the schedule pending the outcome of the Prehearing Conference in Docket DR 98-189. Staff Audit November 9, 1998 - January 8, 1999 Staff & OCA Data Requests November 13, 1998 - 1st Set Company Data Responses December 3, 1998 - 1st Set Staff & OCA Data Requests December 18, 1998 - 2nd Set Company Data Responses January 8, 1999 - 2nd Set Draft Audit Report January 15, 1999 Final Audit Report January 29, 1999 Staff & OCA Testimony February 12, 1999 All Parties Data Requests February 19, 1999 - 1st Set Staff & OCA Data Responses February 26, 1999 - 1st Set All Parties Data Requests March 5, 1999 - 2nd Set Staff & OCA Data Responses March 12, 1999 - 2nd Set Settlement Discussions March 19, 1999 Company Testimony March 26, 1999 Staff & OCA Data Requests April 9, 1999 - 3rd Set Company Data Responses April 16, 1999 - 3rd Set Staff & OCA Data Requests April 23, 1999 - 4th Set (if needed) Company Data Responses April 30, 1999 - 4th Set (if needed) Settlement Discussions May 5, 1999 Stipulation (if any) May 11, 1999 Hearing May 18, 1999 We find the stipulated procedural schedule is reasonable and just. We have also opened Docket DR 098-189, as recommended by Staff, to address the CVT/MCT petition for merger. We encourage Staff and the parties to work together to reach an agreement resolving the issues raised in both proceedings. Based upon the foregoing, it is hereby ORDERED, that the procedural schedule stipulated to by the parties and Staff is adopted to govern our investigation in this proceeding. By order of the Public Utilities Commission of New Hampshire this thirteenth day of November, 1998. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary