Notes to Balance Sheet
Note 1 (Restricted Cash) — At December 31, 2020, the balance of $8.9 million represents an
increase of $6.9 million from the end of 2019, mainly due to: (1) the cash generated from the
increased revenue levels year-over-year; and (2) the additional proceeds received from
Pennichuck Water’s September 2™ bonding event as a one-time replenishment of the existing
MOERR Rate Stabilization Fund.
Note 2 (Accounts Receivable) — At December 31, 2020, the balance in Accounts Receivable
increased approximately $3.2 million from the year-end total at December 31, 2019 of $5.6
million. This is attributed to: (1) revenue increases generated by the regulated utilities due to the
increased consumption levels year-over-year; and (2) the additional $1.6 million in recoupment
revenues recorded for PWW (which remain as unbilled receivables as of December 31, 2020),
resulting from the November 24, 2020 NHPUC order as previously discussed.
Note 3 (Other Current Assets) —- At December 31, 2020, approximately $1.3 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2021, relating to taxes paid in November and December of 2020 for the second half of the
property tax year ended March 31, 2021.
Note 4 (Acquisition Premium) — In accordance with GAAP, the Acquisition Premium is being
written-off over the 30-year life of the principal of the City Acquisition Debt. This amortization
will continue until the full value of this asset is written off in January 2042.
Note 5 (Bonds, Notes and Mortgages) — At December 31, 2020, the balance in Bonds, Notes and
Mortgages increased approximately $14.6 million from the year-end total at December 31, 2019
of $212.3 million. This is attributed to: (1) the additional financed amounts for capital projects
which have been incurred for ongoing infrastructure replacement, in conformity with the
Company’s key mission objectives; (2) a $2.5 million Paycheck Protection Program Loan which
was received on May 7, 2020 as part of the Coronavirus Aid, Relief and Economic Security Act,
aimed at allowing the Company to retain its existing workforce at full-employment, during the
current COVID-19 global pandemic; (3) and the remaining proceeds which resulted from the
$73.6 million of taxable bonds issued by Pennichuck Water Works on August 26, 2020. This
event was primarily used to retire or refinance existing debt, with the remaining proceeds to
replenish the MOERR RSF for PWW back to its authorized imprest value, and to repay the
Pennichuck Corporation Working Capital Line of Credit for funds used to support the RSF funds
as the Company awaited the completion of the debt refinancing and the approval of PWW’s new
rates.
Note 6 (Accrued Pension Liability) — During 2020, approximately $1.5 million was contributed into
the Pension Plan, while approximately $0.7 million in benefit payments were made to participants,
and approximately $2.7 million of investment gains were recorded, attributed to changes in market
values.
