DR 98-135 Northern Utilities, Inc. Integrated Resource Plan Order Approving Procedural Schedule O R D E R N O. 23,158 March 9, 1999 APPEARANCES: LeBoeuf, Lamb, Greene & MacRae, L.L.P. by Paul B. Dexter, Esq. for Northern Utilities, Inc. and Michelle A. Caraway for the Staff of the New Hampshire Public Utilities Commission. I. PROCEDURAL HISTORY On June 11, 1998, Northern Utilities, Inc. (Northern) filed a request with the New Hampshire Public Utilities Commission (Commission) to modify the filing dates, filing guidelines and review process of the Integrated Resource Plans (IRP) for each natural gas local distribution company (LDC) in New Hampshire. Northern stated its belief that the IRP filing guidelines for LDCs and the review process can be improved through a more informal and streamlined approach which is more in line with the state of the industry today. The IRP filings would be filed by November 30, 1998. After an informal technical session with Northern and EnergyNorth Natural Gas, Inc. (ENGI), Commission Staff (Staff) recommended in a memo dated June 26, 1998 that the Commission adopt Northern's requested changes to the IRP process and apply the changes to both Northern and ENGI. Staff believed that the IRP process can be efficiently addressed through a coordination of efforts between Northern's and ENGI's dockets and recommended that all changes to the IRP process apply to both LDCs. In its June 26, 1998 memo, Staff stated that some other party might be interested in the IRP filings as well as the format in which they would be filed with the Commission. To address this concern, Staff recommended that other interested parties should be identified early in the process so that any suggested modifications could be reviewed and incorporated into the IRP filings, as appropriate. By Orders of Notice issued on July 22, 1998 in this proceeding and in ENGI's IRP docket (DR 98-134), the Commission scheduled Prehearing Conferences for August 20, 1998, set deadlines for intervention requests and objections thereto, and scheduled a joint technical session to immediately follow the Prehearing Conferences. No party filed for intervention. The Office of the Consumer Advocate (OCA) is a statutorily recognized intervenor. Due to Northern's failure to properly notice the Prehearing Conference, on August 20, 1998, the Commission reissued the Order of Notice for Northern and rescheduled the Prehearing Conference to September 10, 1998. Also on August 20, 1998, the Commission issued a secretarial letter to ENGI rescheduling its Prehearing Conference to September 10, 1998. Subsequently, the Prehearing Conferences were held on September 10, 1998 and were followed by a brief joint technical session. At the technical session, Northern, ENGI and Staff discussed whether the LDCs needed to file avoided cost studies as part of their IRP filings. The LDCs and Staff agreed that if the LDCs were to continue their demand-side management (DSM) programs into the 1999/2000 program year, then avoided cost studies must be filed within their respective IRPs so that the DSM programs could be properly screened for cost-effectiveness. On September 23, 1998, Staff filed a memo stating that there were no intervenors in either LDC's proceeding and recommending that the Commission approve the review process agreed to by Northern, ENGI and Staff. On October 12, 1998, the Commission determined that Northern's underlying request for revising the IRP filing process was reasonable and that it should be applied to both LDCs. The LDCs were required to make their filings by November 30, 1998 but the filings need not include avoided cost studies. Through Order No. 23,047 (October 27, 1998) and Order No. 23,068 (November 23, 1998) addressing ENGI's and Northern's 1998/1999 DSM Program filings, respectively, the Commission stated that should the LDCs decide to continue the DSM programs into the 1999/2000 program year, then avoided cost studies must be filed in their respective IRP dockets by May 15, 1999. On November 25, 1998, Northern requested a four day extension to file its IRP. On December 3, 1998, the Commission granted Northern's extension. On December 4, 1998, Northern requested a further extension to file its IRP, now requesting that the IRP be filed on or before January 29, 1999. On December 11, 1998, Staff filed its objection to Northern's request for a two-month extension. On December 16, 1998, Northern requested that it be allowed to submit its IRP in two phases: the first half would be filed on December 22, 1998 and the second half would be filed on either January 8, 1999 or January 29, 1999, each based on the then most current information. Also, on December 16, 1998, Northern filed a Motion for Confidential Treatment of a letter explaining the reasons for Northern's request for an extension of filing its IRP. On December 22, 1998, Northern submitted the first half of its IRP. On December 31, 1998, the Commission approved Northern's request for a phase-in of its IRP, with the complete filing due no later than January 8, 1999. On January 8, 1999, Northern filed the final portion of its IRP. On February 1, 1999, the Commission issued Order No. 23,136 granting Northern's request for confidential treatment. On March 5, 1999, Staff filed a recommendation with the Commission proposing a procedural schedule to govern the proceeding. Staff recommended that consistent with the IRP review process proposed by Northern and approved by the Commission, the procedural schedule will consist of discovery and technical sessions, with a hearing before the Commission. The proposed procedural schedule is as follows: Data Requests March 17, 1999 Technical Session March 25, 1999 Data Requests April 28, 1999 Technical Session May 12, 1999 Filing of Avoided Cost Study, if any May 15, 1999 Data Requests June 2, 1999 Technical Session June 16, 1999 Hearing date to be determined Staff stated that the need for additional discovery or Staff testimony is unknown at this time. Staff will evaluate the need to extend the procedural schedule dependent upon the extent of the review process required of the avoided cost study which may be filed by Northern on or before May 15, 1999. Therefore, Staff recommended that the remainder of the procedural schedule be held in abeyance. Should Northern submit its study, Staff will review the filing and submit a proposed procedural schedule to govern the remainder of the proceeding to ensure that a complete record is developed for the Commission. Staff stated in its memo that it sought and obtained the concurrence of both Northern and the OCA. II. COMMISSION ANALYSIS We find the proposed procedural schedule to be reasonable and will, therefore, approve it for the duration of the proceeding. Both the Energy Efficiency Working Group and the Gas Unbundling Collaborative are expected to file reports with the Commission this spring or early summer. The Commission plans to move ahead to resolve outstanding DSM issues relative to the natural gas industry expeditiously thereafter. Based upon the foregoing, it is hereby ORDERED, that the procedural schedule delineated above is APPROVED. By order of the Public Utilities Commission of New Hampshire this ninth day of March, 1999. Douglas L. Patch Susan S. Geiger Nancy Brockway Chairman Commissioner Commissioner Attested by: Thomas B. Getz Executive Director and Secretary