DE 99-017
Public Service Company of New Hampshire, Inc.
Petition to Issue Long Term Securities
Order Adopting Procedural Schedule
O R D E R N O. 23,149
February 19, 1999
APPEARANCES: Catherine E. Shively, Esq. for Public
Service Company of New Hampshire; Kenneth E. Traum of the Office
of the Consumer Advocate for residential ratepayers; and Eugene
F. Sullivan III, Esq. for the Staff of the New Hampshire Public
Utilities Commission.
I. PROCEDURAL HISTORY
On January 29, 1999, Public Service Company of New
Hampshire (PSNH) filed a Petition with the New Hampshire Public
Utilities Commission (Commission) requesting approval under RSA
369 to extend and amend or replace $39,500,000 Series D and
$69,700,000 Series E Letters of Credit, and Series D and E
Reimbursement Agreements to (i) extend the maturity date of the
Series D and E Letters of Credit, (ii) extend existing accounts
receivable security, if necessary, (iii) amend the existing
interest rates, fees, and expenses to reflect current market
conditions, (iv) amend certain business covenants, and (v)
substitute agents and participating banks as necessary.
On February 2, 1999, the Commission issued an Order of
Notice scheduling a prehearing conference to entertain petitions
to intervene, to set a procedural schedule and to hear the
parties initial positions. The duly noticed prehearing
conference was held on February 10, 1999, at which PSNH, the
Office of the Consumer Advocate and Commission Staff appeared,
presented their initial positions and agreed upon a procedural
schedule.
II. POSITIONS OF THE PARTIES AND STAFF
A. PSNH
PSNH stated that it was still in the process of
finalizing the terms of the Letters of Credit with participating
banks, but it appeared the terms would be substantially similar
to those contained in the Letters of Credit currently in place.
Because the Series D and E Letters of Credit expire on April 22,
1999 and must be extended or replaced by April 14, 1999, PSNH
requested an expedited procedural schedule.
B. OCA
The OCA stated it needed to conduct discovery into the
terms and conditions of the securities.
C. Staff
Staff also stated it needed to conduct discovery into
the terms and conditions of the securities.
III. COMMISSION ANALYSIS
The discrete issue before the Commission is whether the
extension, modification and/or amendment or replacement and
substitution of the Series D and E Letters of Credit and Series D
and E Reimbursement Agreements is in the public good.
We note that the reduction of the Company's debt level,
its strong cash position and earnings, and the change in its bond
rating should justify somewhat less stringent conditions than
those currently in place in the Letters of credit and would
expect the Company to work toward that end as it finalizes the
terms of these securities. In addition, the Company should be
prepared to address in this docket the issues of its access to a
short term line of credit, its participation in the Northeast
Utilities' Money Pool and potential declarations of dividends to
its parent.
We adopt the following procedural schedule agreed upon
by PSNH, OCA and Staff to govern our investigation into these
matters:
Written Data Requests by Staff February 12, 1999
and Intervenors
Company Data Responses February 19, 1999
Testimony by Staff and February 26, 1999
Intervenors
Hearings March 4, 1999 @ 10:00 am
Based upon the foregoing, it is hereby
ORDERED, that the procedural schedule set forth above
is adopted.
By order of the Public Utilities Commission of New
Hampshire this nineteenth day of February, 1999.
Douglas L. Patch Susan S. Geiger Nancy Brockway
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary