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Additionally, during 2018 the Company was asked by NHDES to contract for similar design
services with SGPP for expansion of its public water system in southern Bedford. This project
was initiated in 2018, and was slated for completion in the first half of 2019, bringing water to
approximately 90 new customers in that community.
The Company was also asked by the NHDES to design a further buildout for SGPP in Litchfield
to bring public water to an additional 30 residences in Litchfield, due to this contamination site.
SGPP entered into another contract with the Company for the expansion of the Company’s water
system in that area, construction of which was completed between 2019 and early 2020, and was
fully paid for by SGPP, and included in CIAC assets at such time as that project was completed.
As of March 20, 2018, SGPP and NHDES entered into a Consent Decree. Under the Consent
Decree, SGPP needs to fulfill their obligations by November 2019 on all of these currently
identified activities, and/or request an extension of time to fulfill their obligations, due to
circumstances outside of their control, including the availability of qualified contractors to
complete the buildout of the public water system in the impacted areas.
A similar effort on behalf of Textiles Coated International, Inc. (“TCI”) in the town of Amherst,
due to PFOA contamination related to their previous existence as a manufacturer in that town,
was also undertaken at the request of the NHDES. The Company was contracted to do design
services for the expansion of the public water system in that area of Amherst, by TCI, and
construction of the expansion of that part of the system began in 2017, and was fully completed
in 2018. Once again, the entire cost of this project was borne by TCI, and has become part of the
Company’s owned infrastructure as CIAC assets.
Company Goals — 2021
The Company’s main goals for 2021 are as follows:
e Complete the PEU Rate Case for test year 2019, including requests for rate structure modification
relating to an MOEF (Material Operating Expense Factor to be included in the allowed revenue
calculation for the utility to provide adequate cash flows between rate case filings for inflationary
and other increases in operating expenses), with temporary rates expected in Q2/Q3 2021 and
permanent rates expected in Q1 2022
© Complete the PAC Rate Case for test year 2019, with final rates expected in Q3/Q4 2021,
inclusive of rate structure modifications requested for PAC equivalent to those granted to PWW
in its last two filed rate cases
e File annual PWW and PEU QCPAC cases
e Complete construction and installation of Locke Lake overflow intake and treatment facilities
upgrades, which were initiated in project construction during late 2019 and throughout 2020.
e Continued development and implementation of the Asset Management, GIS and DPaC modules,
including criticality and vulnerability assessment to establish framework for long-term Capex
planning
e¢ Continued roll-out and implementation of Company-wide Customer Security Program, to the benefit
and safety of customers and employees
