Municipal Acquisition Regulatory Asset (“MARA”)
Pursuant to the NHPUC Order, the Company established a new Regulatory asset (MARA) which
represents the amount that the Acquisition Price exceeded the net book assets of the
Company’s regulated subsidiaries (Pennichuck Water, Pennichuck East, and PAC) at
December 31, 2011. The initial amount of the MARA was approximately $89 million for the
regulated companies, offset by a non-regulated amount of approximately $4.8 million. The
MARA is to be amortized over a thirty (30) year period in the same manner as the repayment
of debt service for the City’s acquisition bonds. The balance in the MARA at December 31, 2020
was approximately $71.1 million, reduced by the non-regulated credit of approximately $3.9
million.
Aggregate amortization expense for the years ended December 31, 2020 and 2019 totaled
approximately $2,061,000 and $2,006,000, respectively.
The following table represents the total estimated amortization of MARA:
Estimated
Amortization
(in thousands) Expense
2021 $ 2,119
2022 2,183
2023 2,253
2024 2,328
2025 2,409
2026 and thereafter 55,910
Total S 67,202
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