Notes to Balance Sheet
Note | (Restricted Cash) ~ At December 31, 2021, the balance of $12.7 million represents an
increase of $1.8 million from the end of 2020, mainly due to the cash generated from the increased
revenue levels year-over-year, as well as the approved changes in the allowed revenue structure
for Pennichuck Water Works in its last filed rate case (and pending for Pennichuck East Utility in
its currently approved rate case), which has a new structure element included (the MOFF -
Material Operating Fxpense Factor} designed to reinforce the Company's ongoing cash flaw
position on an ongcing basis, and between permanent rate filings
Note 2? (Accounts Receivable} — At December $1, 2021, the balance in Accounts Receivable
increased approximately $1.1 milliun from the year-end total at December 31, 2020 of $8.8 million
This is attributed to: (1) revenue increases generated by the regulated utilities due to the incrcased
consumption levels year-over-year, and (2) the additional $2.3 million in recoupment revenues
recorded for Pennichuck Water Works (which remain a5 unbilled receivables as of December 31,
2021), resulting from the December 9, 202] NHPUCT order as previously discussed.
Note 3 (Other Current Assets) — At December 31, 2021, approximately $0.9 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2022, relating to taxes paid in November and December of 2021 for the second half of the
ey
properly tax year ended March 31, 2021
Note 4 (Acquisition Premium} = In accordance with GAAP, the Acquisition Premium is being
written-off over the 40-ycar life of the pnacipai of the City Acquisition Debt. This amortization
will continue until the full value of this asset is wrilten off in January 2042.
Naic_5 (Bonds, Notes and Mortgages) - At December 31, 2021, the balance in Bonds, Nates and
Mortgages increased approximately $6.4 million from the year-end total at December 31, 2020 of
$226.9 million. This is attributed to the additional financed amounts for capital projects which
have been incurred for ongoing infrastructure replacement, in conformity with the Company's key
mission objectives.
Note 6 (Accrucd Pension Liability) - During 2021, approximately $1.1 million was contributed into
the Pension Plan, while approximately $0.8 million in benefit payments were made to participants,
and approximately $2.9 million of investment gains were recorded, attributed to changes in market
values.
