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(continued)

(in thousands)
Income Taxes Provision (Benefit):

Pennichuck Water
Pennichuck East
Pittsfield Aqueduct
Subtotal Regulated Segment
Service Corporation
Other
Total Income Taxes Provision (Benefit)

Net Income (Loss):

Pennichuck Water
Pennichuck East
Pittsfield Aqueduct
Subtotal Regulated Segment
Service Corporation
Other
Total Net Income (Loss)

Total Net Assets:

Pennichuck Water
Pennichuck East
Pittsfield Aqueduct
Subtotal Regulated Segment
Service Corporation
Other
Total Net Assets

Total Liabilities:

Pennichuck Water
Pennichuck East
Pittsfield Aqueduct
Subtotal Regulated Segment
Service Corporation
Other
Total Liabilities

46

2020 2019
1,728 1,521
738 415
21 14
2,487 1,950
34 49
(2,014) (1,685)
507 314
2,409 387
(361) (980)
19 6
2,067 (587)
84 111
(4,135) (4,861)
(1,984) (5,337)
298,004 292,311
61,881 58,203
3,056 3,278
362,941 353,792
(12) 24
(15,631) (15,672)
347,298 338,144
194,433 184,942
53,757 49,143
1,402 1,509
249,592 235,594
(31) (22)
97,325 99,833
346,886 335,405

(continued)

16.

(continued)

(in thousands) 2020 2019
Total Long-Term Debt (including current portion

and unamortized debt insurance costs):

Pennichuck Water $ 105,447. § 94,323
Pennichuck East 22,067 19,842
Pittsfield Aqueduct 140 143
Subtotal Regulated Segment 127,654 114,308
Service Corporation - -
Other 102,169 104,570
Total Long-Term Debt $ 229,823 §$ 218,878
Rate Cases
Pennichuck Water

On July 1, 2019, Pennichuck Water filed a request with the NHPUC for a rate increase of
11.91% over its current rates for the test year 2018, effective August 1, 2019. The proposed
permanent rate increase includes a 2018 Qualified Capital Project Adjustment Charge
(QCPAC) surcharge of 1.69%, a proposed 2019 QCPAC of 2.37%, and further modification to
its ratemaking structure. 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.

The request for the overall permanent rate increase was based upon increased Pennichuck
Water operating expenses since the last allowed rate increase in 2017 (for the 2015 test year),
and to provide enough revenues to pay for investments made in plant and treatment systems
to ensure its continued compliance with the Safe Drinking Water Act.

In addition to the requested rate increase, Pennichuck Water has proposed several
modifications to its current ratemaking structure which are designed to provide adequate
and timely cash coverage of operating expenses so that Pennichuck Water can avoid incurring
additional debt. The proposed modifications include:

® creating a Material Operating Expense Factor (MOEF), an expense factor on top of its
material operating expenses to cover inflationary increases between rate filings; as a
component of allowed revenues in determining permanent rates;

e including the actual cost of Federal and State corporate income taxes in Pennichuck
Water’s Operating Expense Revenue Requirement (OERR) component of allowed
revenues;

e reprioritizing the use of Debt Service Revenue Requirement (DSRR) 0.1 funds;

47

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;

49

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.

50

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

a LOCKER QUOTE uote #:

108857

Material Handling Sales Quote Date:
SALES e SERVICE2° Downeast Drive Yarmouth, Me. 04096 4/25/2022

INSTALLATION (207) 846-1054 FAX (207) 846-4423
USA (800) 458-6870

Bil To:_| Ship To:_]

City of Nashua- Purch Dept. Nashua Police Department

229 Main Street 28 Officer James Roche Drive

Administrative Services Division Att: Deputy Chief Joseph Fay

Nashua NH 03061 Nashua NH 03062
Requesters Name: Ship Via: Terms:

Kelly Parkinson Delivered and Installed Net 30 Days

Shipment: FOB: Quoted By:

20-22 Weeks ME Eric Peterson

Customer R.F.Q. Customer Phone: Customer Fax:

Lockers (603) 589-3333

Quantity Product Description Unit Price Total Price
1 LOT LYON WORKSPACE HEAVY DUTY $89,671.00 $89,671.00

COLLEGIATE LOCKERS FOR THE NASHUA POLICE
DEPARTMENT IN NASHUA, NH

SPECIFICATIONS: NEW LOCKERS

(175) 24° Wide x 21” Deep x 72" High Lyon Workspace
Heavy Duty Collegiate Single Tier Lockers

*Doors: 14 Gauge Door with Diamond Perforations
*Handle: Recessed with Lift Latch and Built in Padiock
Attachment (Hasp), Locks by Others

*Solid Sides, Tops, Bottoms: 16 Gauge

*Sloped Tops, Continuous Type: 16 gauge

“Hat Shelf- 12" Below Top: 16 Gauge

*Storage Shelf 12" Above Bottom of Locker: 16 gauge
*Backs: 18 gauge

“Finished End Panels: 16 gauge Boxed Type- No
Exposed Fasteners

“Bases: 4" Metal Z Base- (Mens Patrol Room #2 Only-
All other lockers on existing 5-1/2" Concrete Base
“Accessories: (4) Single Prong Hooks and (1) Coat
Rod per locker

“Number Piates: Aluminum #1-28 (Womens Patrol), #1-
147 (Mens Patrol)

To Accept This Proposal Piease Review Our Terms and Conditions on The
Following Page and Return To MHS

2

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