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will be unsecured. The corporate parent, Pennichuck, will provide an unsecured corporate
guaranty of the repayment of the loans in accordance with the terms of a Guaranty Agreement.
Approval by Pennichuck, PWW, PEU and PAC. The loans to finance the projects listed
above and the guaranty of the loans have been approved by the respective Board of Directors of
Pennichuck, PWW, PEU and PAC.
Pennichuck recommends that the City authorize (i) PWW, PEU and PAC to enter into the loans
under the SRF Program; and (ii) Pennichuck to enter into the Guaranty Agreements.
Other Approvals. As regulated public utilities, PWW, PEU and PAC must obtain approval of
the loans from the New Hampshire Public Utilities Commission (“NHPUC”), which will
approve the loans if it finds the loans to be consistent with the public good. PWW, PEU and
PAC will file petitions for approval with the NHPUC in early February, and expect the NHPUC
to consider the petitions promptly. Under the SRF Program, the loans must also be approved by
the Governor and Executive Council.
Lower Costs Are Good for Customers. Pennichuck and its Board of Directors have
determined that the capital projects to be financed by the SRF Program loans will allow PWW,
PEU and PAC to continue to provide safe, adequate and reliable water service to their customers
on a cost-effective basis. The terms of the financings through the SRF Program are very
favorable compared to other alternatives and will result in lower financing costs than would be
available under other debt options. These lower financing costs will be passed on to customers.
Requested Approvals. For the reasons described above, Pennichuck respectfully requests that
the City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article IX(3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:
RESOLVED, that the City hereby approves the borrowing by Pennichuck Water
Works, Inc. of up to $1,400,000 from the State of New Hampshire pursuant to the State
Drinking Water Revolving Loan Fund Program to finance the cost of replacing
approximately 4,265 linear feet of water main in the Nashua Core Water System
(Amherst Street area) in Nashua;
FURTHER RESOLVED, that the City hereby approves the borrowing by Pennichuck
East Utility, Inc. of up to $1,650,000 from the State of New Hampshire pursuant to the
State Drinking Water Revolving Loan Fund Program to finance the cost of replacing
approximately 18,600 linear feet of water main in the Varney Road area at Locke Lake
in Barnstead;
FURTHER RESOLVED, that the City hereby approves the borrowing by Pittsfield
Aqueduct Company, Inc. of up to $440,000 from the State of New Hampshire pursuant
to the State Drinking Water Revolving Loan Fund Program to finance the cost of
installing approximately 4,650 linear feet of water main on Fairview Road/Catamount
Road in Pittsfield;
