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e reallocating the value of components of the aggregate RSF; and

e changing the treatment of debt issuance costs for long-term debt, other than tax
exempt and taxable bond issuances.

On July 24, 2020, the NHPUC issued Order No. 26,383 which approved the following
modifications to its current ratemaking structure: (1) the creation of the MOEF. The MOEF
percentage factor will be applied to Pennichuck Water’s MOERR and established in each rate
proceeding; (2) the inclusion of actual NHBET cash payments in the revenue requirement,
included as part of the MOERR component; (3) reprioritization of DSRR 0.1 funds to include
funding of deferred assets, replenishment of RSF fund balances to their imprest values, and
for funding of capital improvements.

On November 24, 2020, the NHPUC issued Order No. 26,425, which approved a MOEF of 9.5%
to be applied to the MOERR, as a factor determining that overall portion of allowed revenues
in determining permanent rates.

In this Order, the Commission also approved an overall permanent rate increase of 11.85%,
becoming effective with services rendered on the date of the order. The permanent rate
increase is inclusive of a QCPAC of 4.06% previously approved by NHPUC Order No. 26,298
on October 19, 2019 for 2018 capital expenditures, resulting in a net increase of billed rates
to customers over and above the QCPAC surcharge already in place, of 7.79%.

Pennichuck East

On November 24, 2020, Pennichuck East filed a request with the NHPUC for a rate increase
of 21.05% over its current rates for the test year 2019, effective December 24, 2020, for which
15.0% of this increase is related to a request for a temporary rate increase effective for
services rendered on or after December 24, 2020. The temporary rate increase is subject to
approval by the Commission which is separate and distinct from the final rate increase
approval, as the Commission’s final determination on the permanent rate increase request is
processed to completion. The 15.0% temporary rate increase would be inclusive of a 2.98%
QCPAC surcharge which was approved on December 6, 2019 in Order No. 26,313 anda 1.97%
QCPAC surcharge which is currently pending in DW 20-019.

In addition to the rate increase requested, Pennichuck East has requested certain
modifications to its ratemaking structure which were similarly approved for Pennichuck
Water on July 24, 2020 by NHPUC Order No. 26,383. These modifications would include:

e creating a MOEF, an expense factor on top of its material operating expenses to cover
inflationary increases between rate filings, as a component of that portion of its
allowed revenues in determining permanent rates;

e inclusion of actual NHBET cash payments in its revenue requirement calculation;

e reprioritizing the use of DSRR 0.1 funds;

48

e recovery of State Revolving Loan Fund and Drinking Water Groundwater Trust Fund
debt issuance costs; and

e re-establishment of imprest levels of the components of the RSF account and the
retention of a previously approved reconciliation mechanism.

Pittsfield Aqueduct

On November 16, 2020, PAC filed a request with the NHPUC for a rate increase of 11.18%
over its current rates for the test year 2019, effective December 17, 2020. The overall rate
increase is subject to the normal regulatory filing process with the NHPUC, as followed for all
prior rate case filings, and as such, the final permanent rate increase granted will be effective
retroactive back to the filing date, with final approval by the NHPUC in the Fall of 2021.

The request for the overall permanent rate increase was based upon increased PAC operating
expenses since the last allowed rate increase in 2014 (for the 2012 test year), and to provide
sufficient revenues to pay for investments made in its treatment systems to ensure its
continued compliance with the Safe Drinking Water Act.

In addition to the rate increase requested, PAC is requesting certain modifications to its
ratemaking structure which were similarly approved for Pennichuck Water on November 7,
2017 by the NHPUC in Order No. 26,070 and July 24, 2020 by Order No. 26,383. These
modifications would include:

e use of a five-year trailing average of revenues and expenses as a test period;

e creating an MOERR RSF, a DSRR RSF, and a City Bond Fixed Revenue Requirement Rate
Stabilization Fund (CBFRR) RSF to provide rate stabilization and cash flow coverage for
operating expenses, debt service, and the CBFRR portion of revenues, between
permanent rate filings;

e creating three “buckets” of allowed revenues comprising the allowed revenues for
the Company, in their component levels, including:

o OERR
= Comprised of the MOERR and the NOERR

o DSRR
= Comprised of the DSRR 1.0 and DSRR 0.1

o CBFRR
= Which already existed in PAC’s rate structure, but is being redefined as an
overall component in determining allowed revenues;

e creating a MOEF, an expense factor on top of its test year material operating
expenses, in defining the overall value of the MOERR portion of allowed revenues,
and to cover inflationary increases between rate filings, as a component of that
portion of its allowed revenues in determining permanent rates;

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17.

e inclusion of actual NHBET cash payments in its revenue requirement calculation; and

e the establishment of a revenue requirement structure, and the mechanics and
methodology for its approval, resetting and funding, inclusive of the RSFs and allowed
revenue “buckets” shown above, which is the same as approved for Pennichuck Water
by NHPUC Order Nos. 26,070, and 26,383

Qualified Capital Project Adjustment Charge

On February 19, 2020, Pennichuck Water filed a petition with the NHPUC for a 3.83% QCPAC
surcharge on all capital improvements completed and placed in service by Pennichuck Water
in 2019. The Commission has not issued an Order approving this requested surcharge. When
the Commission issues the Order, the surcharge will become effective retroactively on a
service rendered basis back to April 30, 2020. The Order will allow recoupment of the
surcharge from all its customers based on their actual bills incurred between April 30, 2020
and the final effective date of the Order.

On February 13, 2020, Pennichuck East filed a petition with the NHPUC for a 1.97% surcharge
on all capital improvements completed and placed in service by Pennichuck East in 2019. The
Commission has not issued an Order approving this requested surcharge. When the
Commission issues the Order the surcharge will become effective retroactively on a service
rendered basis back to November 23, 2020. The Order will allow recoupment of the surcharge
from all its customers based on their actual bills incurred between November 23, 2020 and
the final effective date of the Order.

COVID-19 Pandemic Impact

In March 2020, the World Health Organization (“WHO”) recognized COVID-19 as a global
pandemic and the President of the United States of America declared the COVID-19 outbreak
in the United States a national emergency. This prompted many national, regional, and local
governments to implement preventative or protective measures, such as travel and business
restrictions, temporary business closures, and wide-sweeping quarantines and stay-at-home
orders.

During the COVID-19 pandemic, the Company's services have generally been considered
essential in nature and have not been materially interrupted. As the situation continues to
evolve, management is closely monitoring the impact of the COVID-19 pandemic on all
aspects of the Company’s business, including how it impacts customers, subcontractors,
suppliers, vendors, and employees, in addition to how the COVID-19 pandemic impacts the
Company’s ability to provide services to customers. We believe the ultimate impact of the
COVID-19 pandemic on operating results, cash flows and financial condition is likely to be
determined by factors which are uncertain, unpredictable, and outside of our control. The
situation surrounding COVID-19 remains fiuid, and if disruptions do arise, they could
materially adversely impact our business.

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18.

Subsequent Events

The Company has evaluated the events and transactions that have occurred through
March 23, 2021, the date that these consolidated financial statements were available for
issuance.

51

Jim Donchess
Mayor e City of Nashua

To: Board of Aldermen

From: Mayor Jim Donchess

Date: March 31, 2021

Re: Multi-Year Contract Award — Backup Internet Line

Pursuant to NRO: § 5-74/B: A contract that extends from the current fiscal year into succeeding
fiscal year(s) in which no funds have been appropriated nor otherwise designated for this purpose
shail be approved by the full Board of Aldermen before the contract shall become binding on the
City.

The Finance Committee has approved and placed on file the notification of the award of the
referenced contract at the Apri! 7, 2021 meeting and as such | am requesting the full Board of
Alderman approve the following contract:

tem: Internet Line Upgrade
Value: $4,211.88 per year for 3 years to total $12,635.64
Vendor: Consolidated Communications
Purchasing Memo#: 21-092 dated March 30, 2021
Contract Term: 3 years
Thank you.

229 Main Street * PO Box 2019 * Nashua, New Hampshire 03061-2019
603.589.3260 + fax 603.594.3450 ¢ NashuaMayor'@NashuaNH. gov
www. NashuaNH.gov

City of Nashua

Purchasing Department
Administrative Services Division (603) 589-3330
229 Main Street - Nashua, NH 03060 Fax (603) 594-3233

March 31, 2021
Memo #21-092

TO: Mayor Donchess
Finance Committee

SUBJECT: Backup Internet Line in the amount of $12,635.64 funded from account 55109
Telecommunications Telephone: Voice

Please see attached communications from Nick Miseirvitch, Deputy Director IT, dated March 25, 2021 for
project specific details related to this purchase. Below please find a summary of the purchase approval
request:

Item: Backup internet Line
Value: $350.99 per month for 3 years to total $12,635.64
Vendor: Consolidated Communications

Department: 120Telecom
Source Fund: 55109 Telecommunications Telephone: Voice

Ordinance: Pursuant to NRO § 5-84 Special purchase procedures (A}/10 Commodity items
which are generally available for a publicly advertised price in national or online
sources, and are not customized by the vendor for individual purchasers.

The Administrative Services Division: Information Technology, and the Purchasing Department respectfully
request your approval of this contract.

Regards,

Kelly Parkinson
Purchasing Manager

Cc: N Miseirvitch
J Graziano

City of Nashua

Information Technology Department (603) 889-3300
Administrative Services Division Fax (603) 594-3434
229 Main Street - Nashua, NH 03060

To: Ms. Kelly Parkinson
Purchasing Manager, City of Nashua
229 Main St
Nashua, NH 03061-2019

Date: March 25, 2021
Re: — Backup Internet Line - Fiber Connect 1 Gig/s/500 M with 14 Static IPS
Ms. Parkinson,

As the City’s internet usage continues to grow, it is extremely important to provide an adequate
backup internet line in the event that the primary internet line becomes unavailable. The
information Technology Department has identified a replacement of the existing backup internet
line.

The proposed contract with Consolidated Communications, Inc (CCI) increases the City’s backup
Internet bandwidth from 25 Mbps to 1000 Mbps for an additional monthly cost of $90 over the
existing. This will place the City on CCI’s newest technology and provide additional static iP
addresses for future expansion.

The Information Technology Department recommends awarding the contract to CCI in the amount
of $350.99/month. Funding is available in the Telecomm-Telecommunications Telephone-Voice

account 20.1.555 - 55109.

Sincerely,

Nick Miseirvitch
Deputy Director, Information Technology
City of Nashua

Ce: K. Kleiner

Consolidated

we &

SERVICE SCHEDULE
High-Speed Internet

Service Provider: Consolidated Communications Enterprise Services, Inc. (hereinafter “Consolidated” or

“Consolidated Communications”)

Customer Name: City of Nashua

1.

Services.

The term “Service” shail mean the (a) Consolidated business High Speed Internet access service with or
without local service and related transport services (“High-Speed Internet Service” or “Service”) provided
to you by Consolidated; and (b) the Internet services provided by Consolidated which include Consolidated
Domain Name E-Mail Service (“E-M Service”), , all Software, Content, domain name server (“DNS”) and
telated services, and such other products or services as you may subscribe to with Consolidated under the
pricing plan set forth below (collectively, the “Consolidated Services”). The Service shall also include any
software or hardware that Consolidated provides you in connection with the Service to which you have
subscribed, and includes any sub- or secondary accounts associated with a primary account. “Content” shall
mean content provided by Consolidated or its third party licensors, providers or suppliers and accessible on
the Service, including without limitation images, photographs, animations, video, audio, music, and text,
with the exception of content uploaded by and stored on behalf of users. High-Speed Internet Service
utilizes transport service provided by your local Consolidated Communications telephone company. If you
change your local telephone company, or move your local telephone service to a wireless or Internet
telephone service provider we may in our discretion either immediately terminate your Service or continue
to provide High-Speed Internet Service without local service at existing terms and conditions under the
then-current pricing plan applicable to your Service. If your local Consolidated Communications telephone
company provides transport service to your location utilizing fiber optic technologies, we (in our sole
discretion) may migrate your High-Speed Internet Service to fiber optic transport technologies. In cases of
such migration, Consolidated will offer to you fiber-based Internet Service for Business (“FAST®™”) and
we will disclose to you applicable rates and additional terms, if any, that may differ from the services
provided under this Schedule.

Service and Initial Quantity Commitments.

Customer agrees to purchase the following Services from Consolidated at the rates and quantities set forth
below for the Service Period identified below. Any other work, services or facilities required will be
provided subject to prevailing tariff rates and charges, or if no tariff is applicable, as mutually agreed to by
the parties.

Monthly
Recurring
Charge “MRC”

Non-Recurring

Service Type Charge “NRC”

Fiber Connect 1 Gig/s/500 M with 14 Static IPS $0.00 $350.99

Service Period and Billing. The Customer shall purchase the Service for a period of [Thirty Six ] 36)
consecutive months following the execution of this Schedule and installation of the Service (if not
previously installed and cutover) hereof (“Service Period”). Termination charges will apply to all Service
disconnected prior to the end of the Service Period or any extension thereof. The Service Period and Billing
for the circuits shall begin on the In-Service Date.

Service Cancellation;. If you cancel your High-Speed Internet Service within 30 calendar days, you agree
to return to Consolidated all hardware which Consolidated has provided to you in connection with the
High-Speed Internet Service prior to receiving a refund on said equipment charges or additional equipment
charges will apply. Consolidated will provide you with a pre-paid mailing label and instructions for the
return of this equipment. If you cancel after the first thirty (30) calendar days of High-Speed Internet

Consolidated Internet
Page | of 2
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ro ery
Beit

onsolidated

Service but before completing the 36 month, City agrees to (a) pay Consolidated all Service fees accrued as
of the cancellation date and (b) you agree to pay a termination fee of $100.00 for each High-Speed Internet
Service terminated (“Early Termination Fee’). Activation or set-up fees paid at the initiation of High-
Speed Internet Service are not refundable

5. Locations.
The Services shall be provided to Customer under the terms hereof at the following locations. Other
locations may be added to this Schedule only upon mutual assent of the parties.
| Service Type | Quantity | Address
Fiber Connect with 14 1 124 Spit Brook Rd Nashua NH
Static IPs
All services described herein are provided pursuant to the rates, terms and conditions of Enhanced
Communications of Northern New England Inc. (HIGH-SPEED ENFERNET TERMS OF SERVICE -
BUSINESS CUSTOMERS) posted at https:/Avww consolidated can/suppart/‘terms-policies/internet-
terms-policies. Your signature below indicates your acceptance of the rates, terms and conditions in the
High-Speed Internet Terms of Service — Business Customers as well as the commitments and discounts
described herein.
Customer: City of Nashua Consolidated Communications Enterprise Services,
Inc.
U
Name: Name: Joseph Weisenburger
Title: Title: Regional Sales Manager
Date: Date:

2/22/24

Consolidated Internet
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