Capital Expenditures
Capital expenditures in the fourth quarter of 2020 were $4.9 million compared to $7.2 million
in the fourth quarter of 2019. For the year 2020, capital expenditures were $10.7 million as
compared to $16.6 million in 2019.
The major expenditures for 2020 were as follows:
Locke Lake New Water Source $ 1,923,000
25 Walnut Street Office Building Fit-Up and Relocation 619,000
Peacham Road Pipeline — Locke Lake 591,000
Carbon Filter Media Changeout — 5 & 6 495,000
Merrimack River Intake 485,000
Workorder System Replacement - CMMS 433,000
Rate Cases
Pennichuck Water Works, Inc. - On November 24, 2020, the NHPUC issued Order No. 26,425
approving an overall permanent rate increase of 11.85%, becoming effective with services
rendered back to April 14, 2020. The permanent rate increase is inclusive of QCPAC surcharges
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 Utility, Inc. - 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 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 and a 1.97% QCPAC surcharge which is currently
pending in DW 20-019.
Pittsfield Aqueduct Company, Inc. - On November 16, 2020, Pittsfield Aqueduct 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.
Financing
On April 23, 2020, the Company’s Pennichuck Water Works, Inc. subsidiary issued approximately
$7.5 million of tax-exempt and taxable bonds through the NH Business Finance Authority as
reimbursement for its 2019 capital improvements in Pennichuck Water Works’ water supply,
distribution and support systems. The bond issuance was approved by the Pennichuck Board of
