YO PENNICHUCK®
March 30, 2022
ANNUAL REPORT TO THE SOLE SHAREHOLDER
Dear Shareholder:
The Annual Meeting of Pennichuck Corporation (“Pennichuck” or the “Company”) will be held
at 9:00 a.m. on Saturday, May 7, 2022, at the Compuny’s Distribution Facility, 16 Daniel
Webster Highway. Mcrrimack, New Hampshire.
Background on the City's Acquisition and Our Corporate Structure. ‘\he City’s acquisition of
the shares of Pennichuck Corporation was completed on January 25, 2012. As part of the
acquisition, the corporate structure of Pennichuck Corporation and its subsidiaries was retained
Under the structure, the City of Nashua is the sole shareholder of Pennichuck Corporation.
Under the Company‘s By-Laws, the City in its capacity as shareholder makes its decisions
through actions by its Board of Aldermen, in accordance with the City’s Charter. No single
person = the Mayor or any individual member of the Board of Aldermen —is him or herselfa
shareholder, rather, the entity of the City itself is the sole shareholder of Pennichuck Corporation
represented by the Bourd of Aldermen and the Mayor.
Pennichuck continues to owt five corporate subsidiaries, including three regulated utilities
(Pennichuck Water Works, Inc., Pennichuck East Utility, Inc., and Pittsficld Aqueduct Company
Inc.), an unregulated service company (Pennichuck Water Service Corporation), and a shell
company (The Southwood Corporation).
As unanimously approved by the City’s Board of Aldermen at the time of the acquisition. the
corporate structure was retained for several reasons.
First, the City’s Mayor and Board of Aldermen desired to maintain some stability and continuity
for all of the customers and employees of the Pennichuck companies. Retaining the existing
corporate Structure minimized the need for any radical changes to the utility companies and
operations and encouraged support by all of the communities served by the utilities.
Second, retaining the corporate structure provided continuity for the regulatory and financial
status of the companies and their respective businesses. The New Hampshire Public Utilities
Commission continues to provide regulatory oversight for the utility companies, and banks,
lenders and other contract parties continuc to be able to rely on existing contracts and other rules
with respect lo financing and other operations.
