IR 90-218
                                
  Public Service Company of New Hampshire/Northeast Utilities
                                
                    PSNH/NU Monitoring Plan
                                
        Order Approving Modifications to Monitoring Plan
                                
                    O R D E R   N O.  23,122
                                
                        February 1, 1999
     
       APPEARANCES: Gerald M. Eaton, Esq., on behalf on Public
     Service Company of New Hampshire and Stephen P. Frink for the
     Staff of the New Hampshire Public Utilities Commission.
     
          I.   PROCEDURAL HISTORY
               On August 25, 1992, the New Hampshire Public Utilities
     Commission (Commission) issued its Order No. 20,582 which
     provided for a framework of reporting by Public Service Company
     of New Hampshire/Northeast Utilities (PSNH/NU) relative to
     financial, operational and organizational information resulting
     from the merger of PSNH and NU.  Since that time the Companies
     have continued to file the required information for Staff review.
               Due to the end of the Fixed Rate Period, as well as
     other changes that have occurred within PSNH and NU since the
     Commission issued Order No. 20,582, PSNH and Commission Staff met
     to review the existing reporting requirements and to discuss
     potential modifications thereto.  PSNH/NU filed on October 9,
     1998 a request for modifications to the monitoring plan
     originally established in this docket.  The purpose of the
     requested modifications is to streamline the reporting process
     and to eliminate certain requirements that are no longer relevant
     due to the expiration of the Fixed Rate Period in 1997. 
               On November 18, 1998, the Commission issued an Order of
     Notice setting a hearing on the proposal by PSNH/NU and Staff. 
     On January 5, 1999, a duly noticed hearing on the merits was held
     at the Commission.  There were no intervenors, other than the
     Office of the Consumer Advocate (OCA) which is a statutorily
     recognized intervenor.
          II.  POSITIONS OF THE PARTIES AND STAFF
               PSNH testified that there were three issues that, over
     time, required modifications to the monitoring requirements. 
     First, there were a number of one-time requirements that have
     been completed.  Second, the fixed rate period ended, thereby
     eliminating the need for a number of reports designed to compare
     the Company's actual performance to that projected in the Rate
     Agreement during that time.  Last, a reorganization of financial
     reports and a change in accounting systems has limited the
     ability of the Company to meet certain detailed reporting
     specifications as set forth in the original monitoring order and
     has also resulted in duplicate reporting.
               PSNH emphasized that the information required in the
     original monitoring order is still being tracked, although the
     timing and reporting format are different in some instances. PSNH
     met with Staff in December of 1997 and informed them of the
     changes in reporting due to the change in accounting, at which
     time Staff agreed with the changes and supported the proposed
     modifications.
     III. SETTLEMENT
               Attachment 1 hereto is the original Exhibit A to
     Commission Order No. 20,582 which provided the detail of the
     reporting requirements in this docket.  PSNH/NU and the Staff
     have provided a listing of the proposed modifications to the
     reporting requirements, which is Attachment 2 hereto. 
     Attachments 1 & 2 hereto were entered as part of Exhibit 1 in the
     immediate proceeding. 
     IV.  COMMISSION ANALYSIS
               We have reviewed the proposed modifications to the
     reporting requirements and find that they are reasonable and
     appropriate.  Many of the modifications relate to elements of the
     Fixed Rate Period which are no longer applicable.  Others relate
     to the reorganization of PSNH and the merger with NU, which
     clearly are no longer relevant.  And, others are simply a
     reorganization of financial reports which are already provided to
     this Commission through other regular reporting mechanisms. 
     Therefore, we approve the modifications to the PSNH/NU reporting
     requirements as indicated in Attachment 2.
               Based upon the foregoing, it is hereby 
               ORDERED, that the modifications to the PSNH/NU
     reporting requirements established in this docket, as contained
     in Attachment 2 hereto, are reasonable and are APPROVED.
               By order the Public Utilities Commission of New
     Hampshire this first day of February, 1999.
     
     
     
                                                                      
           Douglas L. Patch       Susan S. Geiger     Nancy Brockway
               Chairman           Commissioner          Commissioner
     
     Attested by:
     
     
     
                                      
     Thomas B. Getz
     Executive Director and Secretary