DR 98-139 Public Service Company of New Hampshire Special Contract Service Rates Order Approving Scope and Proposed Procedural Schedule O R D E R N O. 23,072 December 1, 1998 This proceeding was initiated by PSNH's May 31, 1998 filing to modify its tariff to amend certain special contracts. The filing was made by PSNH in order to ensure that customers taking service under special contracts tied to the "BA" component of PSNH's Fuel and Purchased Power Adjustment Clause (FPPAC) would not realize a rate increase due to the increase in the FPPAC BA approved by the Commission in Order No. 22,946 issued on May 29, 1998. PSNH was allowed to continue to charge customers on a temporary basis the BA component in effect prior to the issuance of Order No. 22,946. The Commission issued an Order of Notice in this proceeding on July 31, 1998. On November 2, 1998, the Executive Director of the New Hampshire Public Utilities Commission (Commission) issued a letter which expressed the Commission's concern that the scope of the proceeding had exceeded the proposed modifications to the Public Service Company of New Hampshire (PSNH) tariff and that the Commission had, therefore, determined that a hearing should be held on November 13, 1998 to examine the proper scope of the proceeding. At the hearing, PSNH stated that the parties had met five times in an effort to resolve the BA problem for special contract customers and that the parties and Staff had agreed upon a framework for a stipulation which would include a contract amendment to the 34 special contract customers affected by the change in the FPPAC BA. PSNH indicated that it would file the stipulation and supporting testimony on December 4, 1998. Intervenor and Staff testimony would be filed on December 14, 1998, and a hearing would be held on December 22, 1998 at 10:00 a.m. PSNH stated that the stipulation would keep the FPPAC BA at 4.955 cents per kWh, the FPPAC BA in effect before the June 1, 1998 change in FPPAC and the level currently included in PSNH's temporary tariff amendment. In addition, PSNH would keep the special contract FPPAC rate for these customers constant at the currently effective rate of 0.383 cents per kWh. Both the FPPAC BA of 4.955 cents per kWh and the FPPAC rate of 0.383 cents per kWh would remain effective until the earlier of the contract termination date or the date that retail choice was available to all customers. The stipulation would not address what changes to the special contracts would be made at that time. PSNH indicated that it will treat the special contract customers as if they paid the full FPPAC BA and FPPAC rate should the FPPAC rate change from the currently annual effective rate of 0.383 cents per kWh. Based on representations from PSNH at the hearing concerning the limited nature of the anticipated stipulation and contract amendment, we will approve the proposed procedural schedule. Based upon the foregoing, it is hereby ORDERED, that Public Service Company of New Hampshire file the stipulation and contract amendments by December 4, 1998 and that any intervenor or Staff testimony be filed no later than December 14, 1998; and it is FURTHER ORDERED, that a hearing on the merits be held at the Commission on December 22, 1998 at 1:30 p.m., and continuing to Wednesday, December 23, 1998 as necessary; and it is FURTHER ORDERED, that the late filed motions to intervene by Timken Aerospace and Super Precision Bearings, Textron Automotive Company, Portland Pipeline Corporation, Monadnock Paper Mills, Inc., Summit Packaging Systems, Inc., American Tissue Mills of New Hampshire, Inc., Hitchiner Manufacturing Company, and Nashua Corporation are GRANTED. By order of the Public Utilities Commission of New Hampshire this first day of December, 1998. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary