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