DG 99-034
                                
                    Northern Utilities, Inc.
                                
     Petition for Approval of License and Sale of Property
                                
              Order Approving License of Property
                              and
             Order NISI Approving Sale of Property
                                
                    O R D E R   N O.  23,193
                                
                         April 12, 1999
     
       The Petitioner, Northern Utilities, Inc. (Northern), on
     March 18, 1999, filed a petition with the New Hampshire Public
     Utilities Commission pursuant to RSA 374:30 and RSA 366:3 for
     approval of its agreement to: (1) license on a temporary basis
     pending approval of the sale; and, (2) sell, to Portland Natural
     Gas Transmission System (PNGTS) and Maritimes & Northeast
     Pipeline, L.L.C. (Maritimes) the Newington Meter Facilities
     ("NMF") located in the Town of Newington, New Hampshire. The NMF
     consists of (1) a meter station; (2) a 302 foot length of 12 inch
     service pipeline extending from the meter station to PSNH's
     plant; and, (3) a 138 foot length of 12 inch service extending
     from the meter station to the location of what is now the
     interconnection with PNGTS. 
       In support of the petition Northern stated the
     following:
       (a) the facilities were originally constructed to
     provide interruptible service to Public Service Company of New
     Hampshire (PSNH) at the Newington Generation Station pursuant to
     an Interruptible Gas Sales Agreement approved by the Commission
     in Docket DR 91-095;
       (b) the recovery of the associated costs have never
     been included in Northern's rate base and as such have never been
     included in rates to customers;
       (c) the Interruptible Gas Sales Agreement expired by
     its own terms in March 1998 and that PSNH chose not to renew the
     Agreement because of its intention to bypass Northern and become
     a direct customer of PNGTS and Maritimes;
       (d) the license and eventual sale of the facilities
     will not affect Northern's receipt of natural gas from PNGTS at
     Newington;
       (e) Northern evaluated the following three options in
     determining how to proceed with respect to the facilities:
     (1) maintaining the NMF in place, in the unlikely event that PSNH
     requests service from Northern in the future; (2) abandoning the
     NMF in place; or (3) dismantling the equipment and reusing or
     selling the salvageable material.  Northern concluded that the
     proposed sale represents the best option for Northern to maximize
     its value on the assets;
       (f) Northern proposes to sell the facilities for a
     negotiated price which is close to the unrecovered costs of the
     assets, and that the proceeds will be applied to reduce the
     unrecovered costs; and
       (g) The proposed sale allows PNGTS to use an existing
     meter station to serve the PSNH Newington Generation Station.
       On April 1, 1999, Commission Staff (Staff) filed a
     memorandum recommending approval of the license and sale of the
     facilities.  Staff indicated that the sale will have no impact on
     rates and that shareholders should be provided this opportunity
     to recover capital costs that otherwise might be unrecoverable.
     Based on this view, Staff asserted that approving the petition
     would be in the public good in accordance with RSA 374:30. 
     COMMISSION ANALYSIS
       RSA 374:30 states in part: 
         Any public utility may transfer or lease its
       franchise, works, or system, or any part of
       such franchise, works or system, exercised or
       located in this state, or contract for the
       operation of its works and system located in
       this state, when the Commission shall find
       that it will be for the public good and shall
       make an order assenting thereto, but not
       otherwise.
     
       Based on the information presented in the petition, and
     review and recommendation of Staff, we find that the license and
     sale of the Newington Metering Facilities is in the public good.
      
       Based upon the foregoing, it is hereby 
       ORDERED, that Northern Utilities, Inc.'s Petition for
     Approval of License is APPROVED effective with the date of this
     Order; and it is
       FURTHER ORDERED NISI, that Northern Utilities, Inc.'s
     Petition for Approval OF Sale of Property is APPROVED effective
     May 12, 1999, unless the Commission provides otherwise in a
     supplemental order issued prior to the effective date; and it is
       FURTHER ORDERED, that the Petitioner shall cause a copy
     of this Order and Order Nisi to be published once in a statewide
     newspaper of general circulation or of circulation in those
     portions of the state where operations are conducted, such
     publication to be no later than April 19, 1999 and to be
     documented by affidavit filed with this office on or before April
     26, 1999; and it is
       FURTHER ORDERED, that all persons interested in
     responding to this petition be notified that they may submit
     their comments or file a written request for a hearing on this
     matter before the Commission no later than April 29, 1999; and it
     is
       FURTHER ORDERED, that any party interested in
     responding to such comments or request for hearing shall do so no
     later than May 3, 1999; and it is
     
       FURTHER ORDERED, that this Order Nisi shall be
     effective May 12, 1999, unless the Commission provides otherwise
     in a supplemental order issued prior to the effective date.
       By order of the Public Utilities Commission of New
     Hampshire this twelfth day of April, 1999.
     
     
                                                                      
           Douglas L. Patch       Susan S. Geiger     Nancy Brockway
               Chairman           Commissioner          Commissioner
     
     
     Attested by:
     
     
                                     
     Thomas B. Getz
     Executive Director and Secretary