DR 96-150 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE Interim Stranded Cost Charges Order Setting Procedural Schedule and Addressing Motion to Stay O R D E R N O. 23,137 February 4, 1999 This order sets a procedural schedule for further hearings on the motion by Public Service Company of New Hampshire (PSNH) for rehearing of Orders Nos. 22,512 and 22,514, which set PSNH's interim stranded cost (ISC) charges. The Commission also addresses PSNH's motion to stay these rehearing proceedings which asserts, inter alia, that the Commission has been enjoined from completing the rehearings by the United States District Court for the District of New Hampshire. As explained in this order, the Commission denies PSNH's motion, but establishes a procedural schedule that allows PSNH to seek clarification from the federal court on the scope of the preliminary injunction well before the hearings are scheduled to begin. I. BACKGROUND AND PROCEDURAL HISTORY A full understanding of the issues raised by PSNH's motion to stay requires a somewhat detailed review of the history of this proceeding and the related federal court case to date. A. The Restructuring Plan and District Court's Temporary Restraining Order On February 28, 1997, the Commission issued a Statewide Electric Utility Restructuring Plan (the Plan) and five utility-specific interim stranded cost orders (ISC orders) pursuant to RSA 374-F. The Plan established generic restructuring policies, Order No. 22,875 at 8, and the Legal Analysis accompanying the Plan addressed generic legal claims advanced by non-PSNH utilities, as well as specific arguments advanced by PSNH in support of its request for ISC charges that reflect full stranded cost recovery. See Plan, Legal Analysis, pp. 57-92. For example, the Commission rejected the assertion that New Hampshire's electric utilities are constitutionally protected from all losses that result from competition. See Plan, Legal Analysis at 16. The Commission also rejected PSNH's claims relative to the legal and constitutional implications of the 1989 "Rate Agreement" and certain other events surrounding the PSNH bankruptcy reorganization. PSNH sought and obtained a temporary restraining order in federal court staying Order Nos. 22,512 and 22,1514 "to the extent, and only to the extent, that those orders establish a rate setting methodology that is not designed to recover [PSNH's] costs of providing service and would require [PSNH] to write off any regulatory asset under FAS 71." Public Service Company of New Hampshire v. Patch, et al., N.H. Civil Action No. 97-97-JD., R.I. Civil Action No. 97-121L, Temporary Restraining Order at 1 (March 10, 1997). This Order was later memorialized in the Court's Amended Restraining Order, dated March 21, 1997. B. Motions for Rehearing One of the parties to our docket, Enron Capital and Trade Resources, Inc. (Enron), sought rehearing on March 14, 1997, regarding the Commission's methodology for determining PSNH's interim stranded cost charges. Specifically, Enron requested that the Commission reconsider its sole reliance on the benchmark regional average rate approach and supplement its order with a cost-based methodology for setting PSNH's interim stranded cost charges. PSNH objected to Enron's standing to request rehearing on the ISC issue, argued that rehearing the ISC methodology would not achieve Enron's stated purpose of expediting restructuring, and claimed that only a stay of all aspects of Order Nos. 22,512 and 22,514, as those orders apply to PSNH, would remove the irreparable harm alleged by the Company in its federal claims. Central Vermont Electric Company (CVEC), among other parties, supported Enron's motion for rehearing. By Order No. 22,526, on March 19, 1997, the Commission approved the request for rehearing, and set the matter for a procedural conference. Pending the resolution of the rehearing, the Commission ordered a stay of the restructuring orders applicable to PSNH in language tracking the federal District Court temporary restraining order then in effect. The Commission specifically noted that the proceedings before the District Court called into question the effect on the Company of the Final Plan: The arguments posed by PSNH in the Federal Court litigation indicate that our Order has not satisfied the [Company's] accounting concerns. In light of these developments and the arguments of Enron in its motion, we find that Enron has demonstrated "good reason" to justify rehearing on this issue pursuant to RSA 541:3. Subsequently, on March 31, 1997, PSNH filed a timely motion for rehearing with the Commission. On April 7, 1997, the Commission issued a procedural order addressing the motions for rehearing, Order No. 22,548. In that Order, the Commission determined that further evidence was necessary to consider PSNH's motions for rehearing. The Commission noted that it had, as of April 7, 1997, identified two issues raised by PSNH and other parties which warranted additional discovery and hearings. Those two issues are as follows: Whether the methodology utilized by the Commission in the Final Plan to establish PSNH's interim stranded costs charges requires PSNH, or any affiliated company, to write off any FAS 71 regulatory asset, and in turn, whether such accounting adjustment(s) violate(s) debt covenants in PSNH's credit facilities or those of any affiliate; and Whether our decision relative to the Rate Agreement in Order 22,514 repudiates an enforceable obligation of the State, which in turn may cause violations of PSNH debt covenants or those of any affiliate. The Commission again reiterated its stay of the ISC orders relative to PSNH, and further suspended them pursuant to RSA 541:5, the rehearing statute. The Commission tailored the scope of the stay to the scope of the March 21, 1997 Order of the District Court, and further allowed a sufficient time after the issuance of any order determining the reheard issues so that parties could then seek their remedies in the event the rehearing order did not satisfy their objections to the Commission's decisions: Consistent with the authority granted to the Commission by RSA 541:5, we hereby suspend and stay those aspects of the Final Plan (Order No. 22,514) that are the subject of the above-referenced rehearing or clarification requests so that we may thoroughly review and evaluate the issues raised in such motions. We wish to note that with regard to PSNH, we view this action as affording protections that are at least as extensive as those contained in the temporary restraining order issued by the federal court in PSNH v. Patch, et al., N.H. Civil Action No. 97-97-JD, R.I. Action CA 97-121L. For the above-stated reason, we also suspend and stay the interim stranded cost orders relating to PSNH (Order No. 22,512), Unitil (Order No. 22,510), GSEC (Order No. 22,511) and CVEC (Order No.22,509). The suspension and stay of these orders will remain in effect until two weeks following the issuance of any order concerning outstanding requests for rehearing and clarification. Order 22,548 at 3. After granting two continuances at the request of PSNH so that it could pursue mediation, the Commission held evidentiary hearings and accepted briefs on the foregoing issues during November and December of 1997. C. Transfer of Legal Questions On February 20, 1998, the Commission deferred ruling on the legal issues raised in PSNH's rehearing request and instead transferred two threshold questions of law to the New Hampshire Supreme Court pursuant to RSA 365:20. Essentially, the transferred questions sought interlocutory rulings on whether the Rate Agreement or RSA 362-C created private rights that conflict with the restructuring policies or standards for stranded cost recovery set forth in RSA 374-F. The questions specifically invited the Court to evaluate the validity of PSNH's claim that the Rate Agreement and RSA 362-C created enforceable contractual rights against the State of New Hampshire. D. Order on Rehearing (Order No. 22,875) On March 20, 1998, the Commission issued Order No. 22,875. That order resolved all outstanding rehearing requests except those relating to PSNH's asserted rights under the Rate Agreement or to PSNH's ISC charges. Order No. 22,875 affirmed, clarified and modified the remainder of the Plan and explicitly left unresolved all rehearing requests relating to PSNH's ISC Order (Order No. 22,512) as well as those relating to the Plan's Legal Analysis (pp. 57-92) which addressed various legal arguments advanced by PSNH. Although Order No. 22,875 did not resolve PSNH's rehearing requests, the Commission articulated how and when those requests would be addressed: The Commission will issue a separate rehearing order addressing PSNH's ISC charge based on the information presented at the rehearing and incorporating the final policies and decisions articulated herein, as well as the response of the New Hampshire Supreme Court to our Request for Interlocutory Rulings. Order No. 22,875 at 3. Thus, the issuance of a rehearing order was deferred pending receipt of a decision from the Supreme Court on these issues. The Commission also indicated that, at a minimum, the new ISC order for PSNH would employ a methodology designed to prevent the adverse financial consequences which the company had previously predicted: The Commission's ISC order have already made some adjustments to the benchmark approach for equitable reasons. In the case of PSNH, its initial ISC order reflected an adjustment. Upon rehearing, we have identified the need to change the manner in which its ISC charges are set. We have decided to fashion a cost-based ISC charge for PSNH... Order No. 22,875 at 47-48. The Commission stated that its objective was "to avoid the accounting problems identified by PSNH and others during the rehearing process." Id. By this action the Commission effectively vacated its initial ISC order for PSNH, which utilized the regional average rate benchmark approach. E. Amended Restraining Order, June 1998 In its Order of March 20, 1998, the Commission directed all the utilities except PSNH to make compliance filings by May 1, 1998. PSNH, CVEC, Granite State and Unitil sought a revision to the Amended Restraining order in effect since March 21, 1997. The transcript of the arguments before the District Court on June 5, 1998, show that counsel for CVEC and Unitil argued to the Court that the Commission's requirement of a compliance filing would, among other things, subject the utilities to great expense to prepare detailed filings when the orders in question were still under appeal, that the implementation would result in trapped costs and grave damage to the companies' financial integrity, and further that the Commission had threatened to hold utility officers in contempt, and fine them, if they failed to make the requisite compliance filing. On June 5, 1998, the Court orally granted the motion for the amended restraining order, noting that substantial constitutional issues remained to be decided in the cases before it, that the Restructuring Orders could be "gutted" as a result of the Court's disposition of those issues, and that therefore the implementation of the outstanding restructuring orders should be stayed, including the requirement of a compliance filing, because preparing and filing compliance plans "may be a complete waste of time and effort, depending on the outcome of this case." Transcript at 21, lines 16-19. The Court went on to say: So I want to make it abundantly clear that the Commission should not require the filing of compliance plans, and if there is any doubt about it, I am going to remove that doubt today. I'm also going to make it clear that this injunction applies to all the plaintiffs, including the intervening plaintiffs [i.e. utilities other than PSNH]. Id. at pp. 21-22. The Court then noted that "the Order that is proposed by the plaintiffs is reasonable, and I will enter it." The Court read the following text as the order granted from the bench: The motion of the plaintiffs for an amended preliminary injunction is granted as follows: Pending further order of the Court following a trial on the merits...defendants are enjoined from requiring any plaintiff, including plaintiff intervenors, to implement New Hampshire revised statutes annotated, Section 374-F, in accordance with the New Hampshire Public Utilities Commission's Orders issued in Electric Utility Restructuring Docket Number DO 96-150, or requiring plaintiffs to take any action under those orders, including the filing of compliance plans. Id. at 22. The Court on June 12, 1998, entered a written order substantially in the same form. E. Decision of the New Hampshire Supreme Court on Transferred Questions On December 23, 1998, the Supreme Court issued a decision addressing the transferred questions. The Court first noted that "[t]here are circumstances in which a binding contract can exist between a private party and the government involving subject matter otherwise regulated by the government." In re New Hampshire Public Utilities Commission Statewide Electric Utility Restructuring Plan, No. 98-114, Slip Op. at 5 (December 23, 1998). The Court stated, however, that the language of the Rate Agreement was "arguably ambiguous" and that the proper resolution of the rate agreement's contractual character and scope may well require a review of the facts and circumstances beyond the four corners of the rate agreement itself. Id. at 6. Thus, the Court concluded that it was unable to determine whether the Rate Agreement created a binding contract because the record was "incomplete" for that purpose. Id. at 5-6. Accordingly, the case was remanded to the Commission. Id. at 10. The Court also provided guidance to the Commission on the interplay between RSA 362-C and RSA 374-F for purposes of determining the extent to which PSNH is allowed to recover stranded costs. According to the Court, [T]he PUC must consider State obligations under RSA Chapter 362-C and the rate agreement, if any, when determining whether, and to what extent, PSNH receives an award of stranded costs...the [Commission] can award PSNH only those stranded costs, including deferred assets under the rate agreement, that comport with the standard mandated by the legislature in RSA 374-F:4, V and VI. Accordingly, PSNH's ability to recover the deferred assets under the rate agreement through stranded cost recovery charge [sic] is limited by that standard. Id. at 8. The Court explained further, Reading the enabling statute and the restructuring statute as consistent in the prescribed manner permits the State to attempt to honor its obligation, if any, under RSA chapter 362-C and the rate agreement while still effectuating the legislature's intent to provide electric rate relief to New Hampshire citizens through the deregulation of generation services. Id. at 8-9. G. Further Hearings on Motion for Rehearing After receipt of the Supreme Court's decision on the transferred questions, on January 11, 1999, the Commission issued Order No. 23,101 which, inter alia, initiated additional proceedings to complete the process of addressing PSNH's rehearing requests. The Commission noted that the primary purpose of the additional hearings was to allow PSNH and other parties to update and supplement their prior testimony, but that PSNH and other parties would also be allowed to submit testimony and evidence specifically addressing the deficiencies in the record noted by the Court. The Commission also noted that the issues to be decided in the rehearing proceeding remained the same as defined in Order No. 22,548 and Order No. 22,766, and that Order No. 22,512 (setting PSNH's ISC charge) and all portions of the Legal Analysis pertaining to PSNH, remained suspended and stayed pursuant to RSA 541:5. H. Motion to Stay On January 18, 1999, PSNH filed a motion to stay the rehearing proceedings. PSNH's motion argues that: the New Hampshire Supreme Court's decision on the interlocutory questions deferred these issues to the federal court; it would be inappropriate for the Commission to further adjudicate these issues since it "has previously made up its mind on these issues"; the District Court's preliminary injunction expressly restrains the Commission from requiring PSNH to participate in these proceedings; the Commission should stay the proceedings until the District Court has an opportunity to rule on the Rate Agreement issues; and, finally, the granting of this motion will not lead to any additional delay. Also, during the prehearing conference various parties (other than PSNH) proposed a procedural schedule to complete the rehearing process. PSNH objected to this aspect of the prehearing conference - taking comment on a possible schedule for further hearings - on the ground that it violated the preliminary injunction entered by the United States District Court for the District of New Hampshire on June 12, 1998. I. Positions of Other Parties Various parties presented argument on PSNH's motion during the January 20, 1999 prehearing conference. The following parties oppose PSNH's motion: Representative Jeb Bradley, Freedom Partners, L.L.C. (Freedom), Cabletron Systems, Inc. (Cabletron), Retail Merchants Association (RMA), EnerDev Inc., Granite State Taxpayers Association, City of Manchester (Manchester), Campaign for Ratepayers' Rights, Enron Capital and Trade Resources, Inc., and the Governor's Office of Energy and Community Services (ECS). A number of these parties specifically refuted PSNH's contention that the United States District Court's injunction bars any further hearings. Representative Bradley states that a stay of the rehearings "does not...enhance the prospects of settlement with [PSNH]". Tr. 11:23. Freedom asserts that the rehearing process is "an opportunity and not a requirement." Tr. 15:1. RMA observes that PSNH is not being required to unbundle its rates, open its service territory or make a compliance filing; rather, it is being asked only to make available information relevant to the Rate Agreement. Tr. 19:3. RMA further argues that the Commission is fulfilling a fact-finding function pursuant to the Supreme Court's order and is not requiring an implementation of RSA 374-F or any order which has been stayed by the federal court. Tr. 18:20. Cabletron asserts that two documents it obtained from the Commission's public file (marked as Exhibits R-64 and R-65) suggest that, in 1989, Northeast Utilities (NU) and its attorneys "knew precisely what they needed to do to create a binding contractual obligation on the part of the State," and the State rejected NU's request. According to Cabletron, these documents demonstrate how compelling the need is for the Commission to move forward with the rehearings. Id. at 29. Manchester states that the proceedings announced in Order No. 23,101 "are very much consistent with how the Federal Court wanted [the Commission] to proceed." Id. at 40. ECS suggests that the Commission "inform the Federal Court of the [rehearing] schedule, without asking permission," which it does not think the Commission needs. Id. at 42. The Office of Consumer Advocate (OCA) argues that additional proceedings are unnecessary at this time because the Commission has a sufficient record from which it can make factual findings, which could then be sent to the New Hampshire Supreme Court. According to the OCA, the Supreme Court referred to the conflicting testimony presented to the Commission in DO 96-150, and that it lacked only the Commission's findings of fact on that issue. II. COMMISSION ANALYSIS A. PSNH's Motion to Stay We first consider PSNH's motion to stay the rehearing proceedings. As noted above, parties opposing PSNH's motion offered their objections as part of a lengthy oral argument that occurred during the prehearing conference. As a threshold consideration, we note that the rehearing proceedings announced in Order No. 23,101 are aimed at addressing PSNH's pending motion for rehearing filed on March 31, 1998. At the Prehearing Conference, the Company expressly stated that it had not withdrawn its motion asking the Commission to rehear Order Nos. 22,512 and 22,514. Tr. 54:14. PSNH has thus asked that we "stay" the same proceedings which we believe are necessary to fairly evaluate its request for relief. PSNH elected to seek a stay instead of simply withdrawing its pending motion for rehearing, which would have been consistent with its view that the Commission lacks jurisdiction to complete the rehearing process. PSNH essentially makes three arguments to support its request that we stay the rehearing proceedings for an indeterminate period of time. First, the Company argues that the rehearing proceedings are "contrary" to the New Hampshire Supreme Court's decision on the questions of law transferred by the Commission pursuant to RSA 365:20. See, In re New Hampshire Public Utilities Commission Statewide Electric Restructuring Plan, supra. According to PSNH, the Court explicitly "deferred" consideration of the Rate Agreement and related constitutional issues to the United States District Court. Motion at 3. During oral argument, several parties differed with PSNH's analysis. 1. Role of the Commission in Considering Reheard Questions We disagree with PSNH's view that the New Hampshire Supreme Court has expressly or implicitly designated the federal court as the primary forum for adjudicating the issues which are the subject of the pending rehearing proceeding. The Commission must reach specific conclusions about the Rate Agreement and issue a new stranded cost charge for PSNH under the statutory guidelines articulated by the Supreme Court. The federal court considers only the constitutionality of the order, looking only at those issues actually implicated by the order. Since that order - the subject of this very proceeding - has not yet been issued, it is impossible to know what, if any, aspects of the Rate Agreement may be implicated. The issues before the federal court are thus not coextensive with the issues before the Commission. According to the Supreme Court, the Commission must determine whether the Rate Agreement and RSA 362-C create any State obligations, and, if so, to what extent those obligations must be recovered through stranded cost charges under RSA 374-F's standard of "equitable, appropriate, and balanced,...in the public interest, and...substantially consistent with these interdependent principles." Slip Op. at 6. The Supreme Court also found that the nature and scope of any contractual obligations created by the Rate Agreement and RSA 362-C depend upon findings of the parties' intent that could not be decided upon the incomplete record. Slip Op. at 4. The Court also indicated that extrinsic evidence must be considered on this issue. Although the Supreme Court did not "direct" the Commission to hold additional hearings, it most certainly contemplated that such proceedings would occur, stating that "[w]e answer the questions to the extent possible at this juncture to offer guidance to the PUC in fulfilling its statutory obligations under RSA chapter 374-F." Slip Op. at 5. Such guidance would have been unnecessary if the Commission had no need to make decisions on whether the Rate Agreement and RSA 362-C created obligations relevant to PSNH's stranded cost charges. Consequently, in order to satisfy its statutory obligations under RSA 374-F, the Commission must make findings based on the facts and circumstances of the Rate Agreement, and apply the appropriate standards for determining ISCs. 2. Role of the Federal Court With respect to the role of the federal court, the Supreme Court merely recognized that the constitutionality of the Commission's Plan is before the federal court and that whether the Rate Agreement constitutes a binding contract is a component of PSNH's claim. Slip Op. at 5. The overall claim before the federal court is that a stranded cost award providing PSNH less than it alleges it is entitled to under the Rate Agreement is unconstitutional either as a "taking" or a violation of the Contracts Clause. Slip Op. at 6. Under either theory, however, the federal court will need to consider the specific application of an actual stranded cost order. Presently, there is no stranded cost order applicable to PSNH for the federal court to evaluate. The initial question thus remains before the Commission, and was, in no sense, transferred to the federal court by the Supreme Court. 3. Whether the Commissioners Have Prejudged PSNH's Rehearing Next, PSNH alleges that it would be "inappropriate" for the Commission to address PSNH's rehearing requests relating to the Rate Agreement because our prior decisions "show that the Commission has previously made up its mind on these issues." Motion at 3. The implication of PSNH's argument is that this Commission is unable to preside any further in this matter and cannot render an unbiased determination based solely upon the facts and law before it. We reject this notion out of hand. Administrative agencies are routinely called upon to reconsider, in whole or in part, their prior decisions. See, RSA 541:3. PSNH's argument completely ignores the express language of RSA 365:28 which provides that "[a]t any time after the making and entry thereof, the commission may, after notice and hearing, alter, amend, suspend, annul, set aside or otherwise modify any order made by it." (Emphasis supplied.) The New Hampshire Supreme Court has interpreted this provision broadly, finding that the Commission's "statutory power to reconsider and modify an existing order is limited only in that the modification must satisfy the requirements of due process and be legally correct." Appeal of the Consumer Advocate, 134 N.H. 651, 658 (1991). By enacting this statute, the Legislature has instructed the Commission that its exercise of jurisdiction over the utilities it regulates is continuous, and required that it have the adjudicative capacity and demeanor to adapt to changes in fact or law, or the presentation of reasoned argument for reconsideration. The Supreme Court has clearly recognized the ability of an appointed official to carry out this responsibility, so long as the official has no pecuniary interest in the outcome of the case, and has no personal animus towards any of the parties. Milk Dealers Association v. New Hampshire Milk Control Board, 107 N.H. 335, 339 (1966). The Legislature has mandated that a Commissioner must "disqualify himself from proceedings in which his impartiality might reasonably be questioned." RSA 363:12, VII. (Emphasis supplied.) "Whether an appearance of impropriety exists is determined under an objective standard, i.e., would a reasonable person, not the judge [her]self, question the impartiality of the court." Kathleen Taylor-Boren v. Andrew L. Isaac, Esq., Nos. 96-500, 96-816, Slip Op. at 8 (December 30, 1998). "It is clear, however, that 'impartiality' must be defined in the context of the commission's policy-making role." Appeal of Seacoast Anti-Pollution League, 125 N.H. at 476, Justice Brock, concurring. The only evidence of impartiality cited by PSNH is the Commission's previous determinations on these questions. It is contrary to reason, however, to hold that such initial decisions - and no more - constitute a cause for disqualification of the Commission from reconsidering its earlier orders. Such a conclusion would render the provisions of RSA 365:28 and 541:3 for rehearing and altering orders meaningless, a result completely contrary to the basic premise that statutes are to be construed to effectuate their evident purpose. See, Quality Carpets v. Carter, 133 N.H. 887 (1991). We would be derelict in our oath of office were we to accept PSNH's view that once we deliberate and rule upon an issue we cannot fairly reconsider our decision. The fact that the Commission granted PSNH's rehearing request and has already reconsidered and modified many provisions of our initial order in the docket provides ample evidence of the Commission's objectivity. RSA 541:3 permits the Commission to grant a motion for rehearing only upon a showing of "good reason." We concluded in our earlier orders that PSNH has met this standard, a conclusion we would not have reached if, as PSNH asserts, our minds were closed to reconsider our orders. In addition, as was pointed out during the January 20, 1999 hearing, a new Commissioner - Commissioner Nancy Brockway - has been appointed since the initial orders were issued. Company Counsel agreed that Commissioner Brockway has not taken any position on the issues before the Commission. Tr. 61:8. As the Commission is a body which attempts to reach its decisions by consensus, the addition of a new Commissioner changes the Commission's deliberative dynamics. Since Commissioner Brockway's appointment, the ISC and Rate Agreement issues have not been deliberated. Indeed, the Commission is attempting, by this very rehearing process, to give these matters as fresh a look as possible. The only decisions the Commission has made so far regarding PSNH's request for rehearing is to grant it and, by committing to use a cost-based methodology to arrive at a new ISC charge, we effectively vacated our earlier ISC order. Though the Commission had previously granted rehearing with respect to its decision in Order No. 22,514 relative to the Rate Agreement, the Legal Analysis of that Order, particularly with respect to the character of the Rate Agreement, was stayed and suspended, albeit not expressly vacated. As discussed above, the Supreme Court's opinion in In Re New Hampshire, supra, noted that "there are circumstances in which a binding contract can exist between a private party and the government involving subject matter otherwise regulated by the government" (Slip Op. at 5), and found that review of the Rate Agreement itself as well as the facts and circumstances surrounding its creation must be made in order to determine the nature and scope of the contractual obligation it may have created. In view of these holdings, and despite the fact that they do not reach to the entirety of our Legal Analysis, we have decided to vacate our previous Legal Analysis and conclusions with respect to the Rate Agreement. Specifically, the findings and conclusions on pages 58-82 of the Plan's Legal Analysis are hereby vacated. Moreover, to the extent there has been any question, we reaffirm our decision to change the manner in which the ISC charge is set for PSNH and expressly state our intention to reconsider the adoption of the regional average rate as the generic benchmark approach for PSNH. We invite parties to provide comment and testimony on this point. Therefore, all decisions pertaining to the Rate Agreement and ISC - both factual and legal - are now expressly vacated, and these issues are unambiguously open and undecided. We intend to evaluate PSNH's rehearing request and set its ISC charges from a fresh perspective, based on all the evidence, testimony and argument in the record. Thus, there is no need for parties to resubmit testimony and exhibits or reargue positions in briefs previously tendered. We recognize the efforts all parties have made thus far, and will give due consideration to all of this material. At this juncture, however, we have determined that it is appropriate to allow parties an opportunity to update and supplement their prior testimony, submit additional evidence and have an opportunity for cross-examination on such new material before we deliberate these matters. PSNH argued that allowing additional evidence at this point is unnecessary because, pursuant to previous rehearing orders, PSNH and other parties have already provided additional evidence concerning the enforceability of the Rate Agreement. Tr. 8:23. The Commission is quite aware of the state of the record, and do not ask - and will not allow - parties to burden this proceeding or each other by simply resubmitting what has previously been provided. Cabletron's attorney, however, proffered documents that are not part of the current record and that appear to pertain to certain aspects of the question of whether the Rate Agreement is a contract. See, Exhibits R-64 and R-65. Other evidence may be adduced bearing on whether a contract was formed, to what effect, and between whom, as a result of the Rate Agreement transactions. We have not yet heard from PSNH to explain these exhibits and whether they should be accorded any significance. We find that these documents support our determination that it is necessary to reopen the record, and we now admit them into evidence for the limited purpose of demonstrating that there are further facts that need to be brought to light to understand the Rate Agreement. 4. Effect of Outstanding Federal Court Injunction Orders PSNH's final and most serious allegation is that the United States District Court has enjoined the Commission from completing the rehearing proceeding and that any attempt to do so would violate the amended preliminary injunction issued by the District Court last June. If the Commission were in doubt about the scope of the Court's injunction, we would not proceed. But we do not share PSNH's view that the preliminary injunction enjoins the Commission from completing the rehearing process. Rather, the manifest purpose of the Court's injunction is to preclude us from requiring PSNH (or any plaintiff-intervenor) to implement RSA 374-F or any of our prior orders interpreting that law. We do not seek to undertake any of those prohibited activities: the rehearing will not require PSNH to take any transitional step towards implementation of the Commission's Restructuring Plan, such as the submission of a compliance filing. Most telling, however, is that PSNH has not alleged that the contemplated hearings and subsequent issuance of a new ISC order would place a burden on the Company. We expressly do not seek to delay the rehearing process and thereby forestall the District Court's consideration of all the issues before it. As discussed above, the Commission's progress on the rehearing was dependent upon receipt of the New Hampshire Supreme Court's rulings on the interlocutory transferred questions. Having received that Court's ruling, the Commission is now proceeding as expeditiously as we can, consistent with due process. Our objective in this rehearing proceeding is to reexamine PSNH's legal claims, and to fashion a new ISC order that complies with the statutory requirements as interpreted by the New Hampshire Supreme Court's recent decision and averts the financial consequences which PSNH asserted would result from the initial ISC order. This objective conforms with the District Court's previous recognition that judicial economy and "the notion of wise judicial administration dictates that the Court should offer the Commission one last chance to hash out its differences with PSNH regarding the ratemaking methodology and the effect of the Rate Agreement." PSNH v. Patch, 962 F. Supp. at 243. Under the earlier Temporary Restraining Order, the District Court expressly understood that the Commission would, and should, complete its rehearing process. We believe that the considerations that prompted the Court to allow the rehearing to proceed remain relevant, and our duties were not altered by the Amended Restraining Order issued in June, 1998. The effort to complete the rehearing process is intended to eliminate the "lingering uncertainties about the ratemaking methodology" that concerned the District Court. Id., at 244. It is not intended to force PSNH to start the transition to competition any earlier than is consistent with applicable law and judicial orders. We wholly agree with the Federal Court that it would be burdensome and wasteful to force the Company to begin "a costly transitional process at a time when a key aspect of the regulatory landscape -- as well as the legal validity of this entire landscape -- remains unclear." Id. Rather, we seek to provide our determination of the issues raised by PSNH's motion in light of the guidance of the several Courts, federal and state, that have opined on certain of the issues raised by that motion, and in this fashion permit the Federal Court, should it continue to trial on these matters, to "encompass all the issues raised in the complaint." Id., at 243. Finally, we once again note that the Commission has a statutory responsibility to implement RSA 374-F as soon as possible. In the event that the District Court ultimately agrees with the Commission and finds that PSNH's constitutional claims (including its Contract Clause claim) are jurisdictionally barred, a stay of this rehearing would only result in additional delays. Even if the Court ultimately concludes otherwise, we do not anticipate that the Court will find it economical or appropriate to adjudicate the constitutionality of orders that we no longer seek to enforce. 5. Conclusion: Denial of Motion to Stay; Time to Seek Relief Based on these considerations, we believe that the most appropriate and efficient course of action is for us to set an expedited procedural schedule, complete PSNH's rehearings, and to issue a final order setting PSNH's ISC as soon as possible. We therefore reject PSNH's last argument that a stay is warranted under the Commission's rules of practice. See Motion, paragraph 10, at 6, citing N.H. Code Admin. Rule Puc Rule 203.04(b). Despite these conclusions, PSNH raises the question of whether we might "trespass" on the District Court's preliminary injunction by completing the rehearing process. However unwarranted that conclusion may be, as before we will build sufficient time into the procedural schedule, should PSNH wish to seek clarification from the Court as to the scope of its June 1998 injunction. B. Procedural Schedule for Completion of Rehearing For the foregoing reasons, we will set the procedural schedule in this case as follows: Data requests - February 19, 1999 Responses to data requests - February 26, 1999 Intervenor testimony - March 5, 1999 PSNH Reply testimony - March 12, 1999 Hearings - March 16-18, 1999 In setting the procedural schedule in this manner, we have essentially suspended the rehearing process for a two-week period to accommodate PSNH's request. Should PSNH seek clarification from the District Court, we would support any request for a speedy hearing on any such motion. We request that PSNH report the status of its efforts by February 16, 1999 in the form of a letter to the Commission's Executive Director with copies to all parties on the rehearing service list. In any event, we anticipate issuing another order if for any reason the procedural order set forth above becomes unattainable. Based upon the foregoing, it is hereby ORDERED, that PSNH's Motion to Stay is DENIED as set forth herein; and it is FURTHER ORDERED, that Order No. 22,512 and pages 58-82 of the Legal Analysis attached to the Commission's Final Plan (Order No. 22,514) are hereby vacated; and it is FURTHER ORDERED, that the procedural schedule set forth in this order shall apply to these proceedings until the Commission orders otherwise. By order of the Public Utilities Commission of New Hampshire this fourth day of February, 1999. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary