16.
(continued)
(in thousands) 2020 2019
Total Long-Term Debt (including current portion
and unamortized debt insurance costs):
Pennichuck Water S 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 norma! 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;
* 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;
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