C u/- (OU>) 0>4-LYO 1 Fax (603)

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C u/- (OU>) 0>4-LYO 1 Fax (03) 34-2438 I,,.. - The Northeast Utilities System -._ Gerald M. Eaton Senior Counsel June 13,2008 E-Mail: eatongm@psnh.com Debra A.

Howland: Enclosed please find seven copies of Public Service Company of New Hampshire's ("PSNH") response to a Record Request that was made in the hearing on June 1 1,2008. Exhibit No.

1 C u/- (OU>) 0>4-LYO 1 Fax (03) I,,.. - The Northeast Utilities System -._ Gerald M. Eaton Senior Counsel June 13, eatongm@psnh.com Debra A. Howland Executive Director and Secretary 21 South Fruit Street, Suite 10 Concord, NH Re: Interim Change in the Default Enerw Service Rate Docket No. DE Dear Ms. Howland: Enclosed please find seven copies of Public Service Company of New Hampshire's ("PSNH") response to a Record Request that was made in the hearing on June 1 1,2008. Exhibit No. 1 1 was reserved for this response. The response contains a re-calculation of the Default Service Rate with the most up to date information supported by the workpapers included in Attachments RAB-1 and RAB-2. PSNH hereby requests the Commission to approve a Default Service Rate of 9.57 cents per kilowatt-hour for effect from July 1,2008 through December 3 1,2008. Per the Chairman's request at the hearing, we enclose a table and chart of forward market prices for bilateral purchases from April 1,2008 through June 1 1,2008. Also included is the Joint Technical Statement of Robert A. Baumann and Richard C. Labrecque providing an explanation of the calculations and the changes shown in the latest data. As suggested by Attorney Hatfield at the hearing, PSNH will schedule a conference call to discuss this filing with the Staff and the Office of Consumer Advocate and answer any questions they may have. Sincerely,. /7 Enclosures cc: Service List Gerald M. Eaton Senior Counsel

2 Service List Docket DE Ms. Debra A. Howland Executive Director & Secretary Concord, NH * Librarian Concord. NH Ms. Suzanne Amidon Staff Attorney Concord, NH Ms. Mary Coleman Assistant Director - Electric Utilities Concord, NH Mr. Thomas C. Frantz Director - Electric Utilities Concord, NH Mr. Steve Mullen Utility Analyst Ill Concord, NH Ms. Amanda Noonan Consumer Affairs Director Concord, NH Atty. Steven V. Camerino McLane Law Firm 11 South Main Street, Suite 500 Concord, NH Mr. Kenneth E. Traum Office of Consumer Advocate 21 S. Fruit Street, Suite 18 Concord, NH Atty. David J. Shulock Brown, Olson & Gould 2 Delta Drive. Suite 301 Concord, NH Atty. Tom Bessette Constellation New 800 Boylston Street 28th Floor Boston, MA Mr. Allen M. Desbiens Senior Analyst Public Service of New Hampshire 780 N. Commercial Street Manchester, NH Ms. Betsy Dunn PO Box 120 Wilton, NH 0308 Atty. Gerald M. Eaton Senior Counsel Public Service of New Hampshire 780 No. Commercial Street Manchester. NH Atty. Gary Epler Unitil Liberty Lane West Hampton, NH Mr.David Juvet Business & Industry Association 122 North Main Street Concord, NH Atty. Amy lgnatius Director Office of and Planning 57 Regional Drive Concord, NH Atty. Nicholas J. Lazos Stebbins, Lazos & VanDerBeken PA Hanover Street, Suite 301 Manchester, NH Ms. K'LaRae Nolin Admin Support Public Service of New Hampshire 780 N. Commercial Street Manchester, NH Atty. Donald J. Pfundstein Gallagher Callahan & Gartrell 214 North Main St. PO Box 1415 Concord, NH Atty. James T. Rodier 1500 A Lafayette Road, #I12 Portsmouth. NH

3 Exhibit No. I1 Docket No Dated: Attachment RAB-I Page I Summary of Forecasted Service PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION (Dollars in 000's) 11 Cost For January 2008 Through December 2008 TOTAL COST Reference Fossil energy costs $ 19,5 Attachment RAB-2, page 2 14 FIH O&M, Depreciation &Taxes Attachment RAB-2, page 2 15 Retum on rate base Attachment RAB-2, page 2 1 Ancillary, ISO-NE, Uplift, RPS &Capacity Costs 43,890 Attachment RAB-2, page 2 17 Vermont Yankee,852 Attachment RAB-2, page 2 18 IPP costs (1) 50,54 Attachment RAB-2, page 2 19 Purchases and Sales 295,42 Attachment RAE-2, page 2 20 Return on ES Deferral (114) Attachment RAB-2, page 2 21 ES Uncollectible Expense Attachment RAB-2, page Actual ES Overrecovery (20.800) Attachment RAB-2, page 3 23 Total Updated Service Cost $ 719,458 Attachment RAB-2, page 2 24 Total Updated Revenue at 8.82 cents per kwh 89,305 Attachment RAB-2, page 2 25 Service Underl(0ver) Recovery $ Forecasted Retail MWH Sales -July - December ,043,131 Attachment RAB-2, page 2 27 Increase in Service Rate - cents per kwh (L2512) $ Service rate as approved in DE cents per kwh $ Updated Service rate effective cents per kwh $ (1) The IPP costs represent the forecasted Market Value of IPP generation.

Exhibit No. 11 Docket No. 07-09 Dated: 11312008 Attachment RAE-2 Page I 1 2 3 4 5 7 8 9 10 Enerqv Service Cost 11 12 Fossil Costs 13 FN 08M.

4 Exhibit No. 11 Docket No Dated: Attachment RAE-2 Page I Enerqv Service Cost Fossil Costs 13 FN 08M. Depreciation 8 Taxes 14 Return on Rate Ease 15 Ancillary, ISO-NE, Uplift, RPS 8 Capacity Costs 1 Vermont Yankee 17 IPP Costs 18 Purchases and Sales 19 Return on ES Deferral 20 ES Uncollectible Expense Actual ES Over-recovery Total Service Cost Reestimate Total Service ES Underl(0ver) Recovery Retail MWH Sales Service Cost -cents per kwh PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION (Dollars in 000's) January Febmary March April May June Actual Actual Actual Actual Actual Re-estimate Reference Amounts shown above may not add due to rounding.

Exhibit No. 11 Docket No. 07-09 Dated: 11 312008 Attachment RAE-2 Page 2 1 2 3 4 5 7 8 9 10 Enerqv Service Cost 11 12 Fossil Costs 13 FM OBM, Depreciation 8 Taxes 14 Return on Rate Ease 15 Ancillary.

RPS & Capacity Costs 1 Vermont Yankee 17 IPP Costs 18 Purchases and Sales 19 Return on ES Deferral 20 ES Uncollectible Expense 21 2007 Actual ES Over-recovery 22 23 Total Service Cost 24 25 Total

5 Exhibit No. 11 Docket No Dated: Attachment RAE-2 Page Enerqv Service Cost Fossil Costs 13 FM OBM, Depreciation 8 Taxes 14 Return on Rate Ease 15 Ancillary. ISO-NE. Uplift. RPS & Capacity Costs 1 Vermont Yankee 17 IPP Costs 18 Purchases and Sales 19 Return on ES Deferral 20 ES Uncollectible Expense Actual ES Over-recovery Total Service Cost Total Selvice ES Under/(Over) Recovery Forecasted Retail MWH Sales Service Cost - cents per kwh PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION (Dollars in 000's) July August September October November December Re-estimate Re-estimale Re-estimate Re-estimate Re-estimate Re-estimate Total Reference Amounts shown above may not add due to rounding

PUBLIC SERVICE RATE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION Exhibit No. 11 Docket No.

Nuclear: 12 13 14 Newington: 15 1 17 IPPs: 18 19 20 21 Peak Purchase: 22 23 24 Known Purchases 25 2 27 Offpeak Purchase: 28 29 30 Surplus Sales 31 32 33

40 RPS and Ancillary 41 Nemngton Capacity Revenue 42 43 Capacity (sold)/bought MW-mo 44 Capacity (sold)/bought Cost ($000) 321.389 340.894 327.280 271.

6 PUBLIC SERVICE RATE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION Exhibit No. 11 Docket No Dated: Attachment RAB-2 Page 3 PSNH Generation (GWh) and Expense ($000) IPP's Priced at Market Rate 2 Hydro: 3 4 Coal: 5 7 Wood: Nuclear: Newington: IPPs: Peak Purchase: Known Purchases Offpeak Purchase: Surplus Sales Congestion and Loss Adjustment Total GWH 3 Total Expense Other Expense 8 Capacity 39 ISO-NE. Uplift. Reserve & Regulation. 40 RPS and Ancillary 41 Nemngton Capacity Revenue Capacity (sold)/bought MW-mo 44 Capacity (sold)/bought Cost ($000) Expense $ , ,82 Expense Revenue Credit Expense Expense Expense ICAP Expense Expense Expense (Cred~t) Nov-08 Dec-08 Total Amounts shown above may not add due to rounding.

7 Exhibit No. 11 Docket No Dated: Attachment RAB-2 Page 4 I Forecasted PSNH IPP Market Value 2 3 IPP at 4 IPP Mkt Value Capacity ICAP Value ICAP Total Total 5 Month GWh ($000) MW $/kw-mo ($000) ($000) $/MW h 7 June , , July , , August , , September , , October , , November , , December , , Total ,711 1,455 25,

8 Fossil I Hvdro 08M. Depr. & Taxes FIH Operation & Maintenance Cost 14 FIH Depreciation Cost 15 FIH Property Taxes 1 FIH Payroll Taxes 17 Amort. of Asset Retirement Obligation SO2 Auction Proceeds Total FIH O&M. Depr. and Taxes PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION Fossil I Hydro 08M, Depreciation 8 Taxes Detail (Dollars in 000's) January February March April May June July August Actual Actual Actual Actual Actual Estimate Estimate Estimate Exhibit No. 11 Docket No Dated: Attachment RAE-2 Page 5 September October November December Total Estimate Estimate Estimate Estimate Amounts shown above may not add due to rounding.

9 Exhibit No. 11 Docket No Dated: Attachment RAE-2 Page Return on Rate Base 12 PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE 2008 ENERGY SERVICE RATE CALCULATION FOSSIUHYDRO RETURN ON RATE BASE (Dollars in 000's) January February March April May June July August September October November December Total Actual Actual Actual Actual Actual Estimate Estimate Estimate Estimate Estimate Estimate Estimate Rate base Net Plant Working Capital Allow. (45 days of O&M) Fossil Fuel Inventory Mat'ls and Supplies Prepaid Property Taxes Deferred Taxes Other Regulatory Obligations Total Rate Base (L15 thm L22) Average Rate Base ( prev + cur month) x Return Retum (L25 x L2) Amounts shown above may not add due to rounding.

Table of Folward Market Prices for On-Peak

04/08/2008 04/09/2008 On-Peak ($/MWH) Jul

11 Table of Folward Market Prices for On-Peak Bilateral Purchases delivered July - Dec 2008 Exhibit 11 Docket No. DE Dated: /13/2008 Attachment RCL-1 Page 2 of 2 Date 04/ /02/ /03/ /04/ /07/ /08/ /09/2008 On-Peak ($/MWH) Jul - Dec 2008 $ $ $ $99.2 $ $ $

12 Before the Public Service Company of New Hampshire Default Service Rate Mid-Year Adjustment Prepared Technical Statement of Robert A. Baumann and Richard C. Labrecque Docket No. DE June 13, Purpose of Technical Statement This Technical Statement is being submitted to explain the changes to Public Service Company's proposed Default Service (ES) Rate effective July 1,2008. This filing updates the Company's latest ES filing that was submitted on May 22, Proposed Rate On May 22,2008, PSNH filed a proposed mid-year ES rate of 9.4 centslkwh to be effective for the six month period July 1 through December 3 1,2008. As discussed at the hearing in this docket on June 11,2008, PSNH's concern over rising energy prices supported a revised filing of the ES rate using the most current forward market pricing information available. To that end, PSNH has updated May 2008 for actual data and has re-estimated the energy costs for the June through December 2008 period using available price data as of June 11,2008. In this submittal, PSNH is proposing a mid-year ES rate of 9.57 cents1kwh to be effective July 1, This is an increase of 0.75 cents above the currently effective ES rate of 8.82 centslkw11 and an average overall rate increase of 5.5%. The increase is attributable to an additional net $. million of forecasted costs to be recovered in the second half of the year above the forecasted costs used to calculate the May 22 proposed rate of 9.4 cents/kwh. Forecasted generation cost increases of $10.9 million are contained in Attachment RAB-2, Page 3, and are specifically referenced below. In addition, there is a decrease in costs of $0.2 million associated with lower projected return in June 2008 due to the change in average rate base from adding May actual data. Finally, May actual results came in better than projected by $4.1 million. The May actual results are primarily due to lower fossilkydro O&M and return of $2 million, $3.5 million in savings due to 80 GWh of additional coal generation which avoided more expensive purchases and created surplus sale revenues, offset partially by $1.5 million of additional IPP costs due to higher market prices.

13 3. Changes From Mav 22 Filing Attachment RAB-2, Pa~e 3: Line 5 - Coal Expense increased by $1,84K based on a revised estimate of the diesel fuel surcharge impact on coal transportation charges. Line 15 - Newington Expense increased by $23K based on a revised estimate of #2 oil costs during unit startups. Line 18 - IPP Expense increased by $2,37K due to higher forward energy market prices. Line 22 - Peak Purchase Expense increased by $3,302K due to higher forward energy market prices. Line 28 - Off peak Purchase Expense increased by $3,74lK due to higher forward energy market prices. Line Surplus Sales Revenues increased by ($448K) due to higher forward energy market prices. Line 33 - Congestion and Loss Adjustment Expenses decreased by ($17K) due to higher forward energy market prices. Note: this line item is used to convert forward market prices, which are price quotes applicable to the Mass. HUB delivery location, to the equivalent New Hampshire load zone price (which is historically lower than the Mass. HCTB price). The adjustment is a percentage of the market price. Therefore, as the Mass. HUB market price increases, this adjustment factor will also increase and create an additional expense reduction. Attachment RAB-2, Page : Line 27 - Lower projected return in June 2008 of $1 87K due to the change in average rate base impacted by May actual data.

Docket No. DE Dated: 05/04/2015 Attachment CJG-1 Page 1

Docket No. DE Dated: 05/04/2015 Attachment CJG-1 Page 1 Docket No. DE - Dated: 0/0/0 Attachment CJG- Page 8 9 Summary of Forecasted Energy Service 0 Cost For January 0 Through December 0 TOTAL COST Cents per KWH Reference Fossil energy costs $ 9,9 $. Attachment