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THE STATE OF NEW HAMPSHIRECHAIRMAN TDD Access: Relay NHAmy L. Ignatius 1-800-735-2964
COMMISSIONERS Tel. (603) 271-2431Robert R. ScottMartin P. Honigberg FAX (603) 271-3878
EXECUTIVE DIRECTOR www~u~nh.govDebra A Howland PUBLIC UTILITIES COMMISSION
21 S. Fruit Street, Suite 10Concord, N.H. 03301-2429
NHPUC 3OJLjVl4pH2:07
July 30, 2014
Debra A. Rowland, Executive DirectorNew Hampshire Public Utilities Commission21 South Fruit Street, Suite 10Concord, NH 03301
Re: DW 14-174, Pennichuck East Utility, Inc.Request for Franchise Expansion Hooksett Rest AreasStaff Recommendation for Approval
Dear Ms. Rowland:
The purpose of this letter is to offer Staff’s recommendation with respect to its reviewof the petition of Pennichuck East Utility, Inc. (PEU) in the above-referenced docket. PEUseeks to extend its water utility business in Hooksett, NH to include the rest areas owned bythe State ofNH on both the northbound and southbound lanes of Interstate 93. Staff hasreviewed the filing and the Company’s responses to Staff’s discovery requests, which areattached. Based upon this review, Staff recommends the Commission grant PEU’s petition.This recommendation is based upon PEU’s technical, managerial, financial, legal, and othercapabilities which enable it to effectively serve the proposed expansion area in Hooksett.
On June 20, 2014, PEU filed a petition to expand its current franchise to serve lotsowned by the State of NH. Since 2000, PEU has provided service in the Town of Hooksettin the franchise area formerly served by WESCO Utilities1. The expansion area includes therest areas on both the northbound and southbound lanes of Interstate 93. These areas arebeing developed by Granite State Hospitality, LLC d/b a The Common Man Hooksett(Granite State Hospitality) and are located within Hooksett Tax Map 5, Lots 1 and 118.Granite State Hospitality entered into a 35-year lease of the Hooksett rest areas with theNHDOT in 2013. Granite State Hospitality is in the process of constructing a commercialbuilding on each side of the Interstate which will house a full service Welcome Centercontaining: fuel sales, a visitor’s center, a NH Liquor & Wine Outlet Store, a diner, afarmhouse-style restaurant, an old-time deli, a coffee shop and a convenience store. Theproject is contracted to be complete by April, 2015.
Transfer of WESCO assets to PEU: DW99-189, Order 23,456, dated 5 2 00.
DW 14-174 PEU Request for Franchise Expansion - Hooksett Rest Areas Staff Recommendation Page 2 of2
The Rest Areas will be served by PEU through a 6" water main owned by PEU since 2005. To date, Hooksett Village Water Precinct (HVWP) has been providing water service to the existing rest areas, but has agreed to relinquish its franchise rights in favor ofPEU. HVWP will deliver water to PEU at a meter pit located on Route 3A, adjacent to the northbound rest area. Fire protection service will be provided by PEU through the same 6" water main.
PEU provided confirmation that HVWP supports PEU serving the Hooksett rest areas; see Attachments G and H of the filing. Attachment I demonstrates Granite State Hospitality's support of the water arrangement. The NHDOT and the NH Liquor Commission provided statements of"no objection" to PEU extending its franchise/service area, shown as Attachments J and K, respectively.
PEU proposes to charge its existing consolidated General Service- Metered (G-M) and Private Fire Protection Service (FM - NM) rates. PEU was issued new rates per Puc Order #25,696 on July 25, 2014; a compliance tariff is due August 8, 20142
.
PEU provides water service to approximately 7,000 customers in 18 municipalities in throughout New Hampshire, including Hooksett. Staff believes that PEU, through its operation of such systems and through the information in the instant filing, has demonstrated that it has the technical, managerial, financial, legal, and other capabilities to enable it to serve the proposed State Rest Areas franchise. For the reasons indicated above, Staff concurs with PEU's proposal to provide service to, and charge its G-M rates to the rest areas. Staff recommends the Commission approve PEU's franchise request.
If you have any questions regarding this matter, please contact me.
Sincerely,
tl?~-t~~ Robyn J. Descoteau Utility Analyst, Gas & Water Division
Attachments: Data Responses, Set 1
cc: Service list
2 Pennanent Rate Increase for PEU: OW 13-126, Order #25,696 (July 25, 2014)
SERVICE LIST - EMAIL ADDRESSES - DOCKET RELATED
Pursuant to N.H. Adinin Rule Piie 203.11 (a) (1): Serve an electronic copy on each person identified onthe service list.
Executive.Director~puc.nh.gov
achesley~devinemillirnet.com
charles. [email protected]
clonald.ware~pennichuck.com
ocalitigation~oca.nh.gov
steve.frink~puc.nh .gov
tgetzt~ldevinemi I Iimet.com
Docket 4: 14—174—1 Printed: July 30, 2014
FILING INSTRUCTIONS:
a) Pursuant to N.H. Admin Rule Puc 203.02 (a), with the exception of Discovery, file 7 copies, as well as anelectronic copy, of all documents including cover letter with: DEBRA A HOWLAND
EXECUTIVE DIRECTORNH PU C21 S. FRUIT ST. SUITE 10CONCORD NH 03301-2429
b) Serve an electronic copy with each person identified on the Corn missio&s service list and with the Office ofConsumer Advocate.
c) Serve a written copy on each person on the service list not able to receive electronic mail.
PENN ICH LCK EAST T1LITYDW 14-174
Responses to Staffs Data Requests — Set 1PETITION TO EXPAND FRANCHISE — HOOKSETT REST AREAS
Date Request Received: 6/30/14 Date of Response: 7/2/14Request No. Staff 1-1 Witness: Donald L. Ware
REQUEST: Please provide the metes and bounds or tax map numbers that identify thefranchise area PEU seeks.
RESPONSE: PEU seeks to expand its WESCO franchise to serve the lots owned by theState of New hampshire as shown on hlooksett Tax Map 5 and identified as Lots I and118.
PENNICHUCK EAST UTILITYDW 14-174
Responses to Staffs Data Requests — Set 1PETITION TO EXPA1\D FRANCHISE — HOOKSETT RESI’ AREAS
Date Request Received: 6/30/14 Date of Response: 7/2/14Request No. Staff 1-2 Wimess: Donald L. Ware
REQUEST: Please confirm the franchise expansion request involves the areashighlighted in yellow on Attachment A to PEU’s petition. If not, please provide a mapshowing the location of the franchise expansion.
RESPONSE: Yes. The franchise request involves the areas highlighted in yellow onAttachment A of PEU’s petition.
PENNICHUCK EAST UTILITYDW 14-174
Responses to Staffs Data Requests — Set IPETITION TO EXPAND FRANCIHSE — 1-IOOKSETT REST AREi\S
Date Request Received: 6/30/14 Date of Response: 7/2/14Request No. Staff 1-3 Witness: Donald L. Ware
REQUEST: Page 2 of the petition refers to purchasing a waler main in 2005 from theState in order to he able to continue to service WESC() customers. ‘Since that time, theState of NH has continued to he a customer of the Precinct with respect to the two restareas, except that under the new arrangement the water main was owned by PEU”Attachment B also pertains to the sale of the water main in 2005.
a) Does PEU receive any payment from the Precinct for use of the water main?b) If yes, please identify the amount and frequency of the payments since 2005.
RESPONSE:
a) No.
3
PENNICI1LCK EAST UTILITYOW 14-174
Responses to Staff’s Data Requests — Set 1PETITION TO EXPANI) FRANCI-I1Sl —1 IOOKSLT f RESI AREAS
Date Request Received: 6/30/1 4 Date of Response: 7/2/1 4Request No. Staff 1-4 Witness: Donald L. Ware
REQUEST: Pages 2 and 3 of the petition refer to relocation and rcplaccrnent of theexisting 6” water main owned by PEU since 2005. Please explain how PEU confirmedthat Granite State Hospitality complied with PEU’s specifications.
RESPONSE:
PEU had an engineering inspector who inspected the waler main materials prior toinstallation to insure that the materials met PEU’s materials specifications. The samePEU inspector also oversaw the installation of the new water main to insure it wasinstalled in accordance with PEU’s installation speci lications.
4
PENNICHUCK EAST UTILITYDW 14-74
Responses to Staffs Data Requests — Set 1PETITION TO EXPAND FRANCHISE — HOOKSETT REST AREAS
Date Request Received: 6/30/14 Date of Response: 7/2J14Request No. Staff 1-5 Witness: Donald L. Ware
REQUEST: Attachmem L. Main Extension Agreement, page 1: please provide a copyof Exhibit A. If the project is depicted on the map of the franchise expansion, then Staffdoes not need Exhibit A.
RESPONSE: A copy of exhibit A is attached. Please note that the existing water mainin the sleeve under the Turnpike was not replaced. The developer, Granite StaleHospitality, changed their fire sprinkler design and added lire cisterns to store water. Theuse of the fire cisterns reduced the maximum fire flow requirements to a rate that couldhe delivered through the existing 6” water main under the highway. Also aLtached are thespecifications for the meter station referred to in Section 1 .b. of the Main ExtensionAgreement at page 2.
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