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December 17, 2020. The overall rate increase is subject to the normal regulatory filing process
with the NHPUC, as followed for all prior rate case filings, and as such, the final permanent rate
increase granted will be effective retroactive back to the filing date.
On November 9, 2021, the NHPUC issued Order No. 26,544 approving a permanent rate
increase of 5.45%, becoming effective with services rendered back to December 17, 2020.
Finaneing
On April 2, 2021, the Company's Pennichuck Water Works subsidiary issued approximately
$5.2 million of tax-exempt and taxable bonds through the NH Business Finance Authority as
reimbursement for its 2020 capital improvements in Pennichuck Water Works’ water supply,
distribution and support systems. The bond issuance was approved by the Pennichuck Board of
Directors and the Sole Shareholder. This issuance had previously received NHPUC approval on
Order No. 26,10, dated February 2, 2018, which authorized up to $32.5 million in bonds via
multiple issuances for the years 2018-2021. This April 2021 bond issuance was the last annual
issuance that will occur from this overall multi-year bonding approval.
On May 6, 2020, the NHPUC issued Order No. 26,354 which permitted Pennichuck Water Works
to borrow up to $2,563,662 from the federal Small Business Administration Paycheck Protection
Program. This loan includes a 2-year maturity at an interest rate of | percent, which includes a
provision in which a portion or all of the loan can be forgiven if all employees are kept on the
payroll for eight weeks upon disbursement of the loan proceeds The loan proceeds were disbursed
by TD Bank, Inc., on behalf of the Small Business Administration on May 8, 2020. The PPP loan
was approved by the Pennichuck Corporation Board of Directors and the Sole Shareholder
On February 2, 2022, the Small Business Administration determined that the Company was
ineligible for forgiveness of the $2.5 million PPP loan which was established as part of the CARES
Act. The PPP loan is payable over two years from the initial approval date of the loan, at an interest
rate of. 1%. Monthly payments on this obligation begin on February 18, 2022, with a final maturity
date of May 7, 2022.
Qualified Capital Proiect Adjustment Charge (OCP AC)
On February 19, 2020, Pennichuck Water Works filed a petition with the NHPUC for a 3.83%
QCPAC surcharge on all capital improvements completed and placed in service by Pennichuck Water
Works in 2019. On December 9, 2021, the NHPUC issued Order No. 26,555 approving a QCPAC
surcharge of 3.90% for capital projects placed in service in 2019. This order became effective with
services rendered back to April 23, 2020 and allows for recovery in the form of a monthly
recoupment surcharge, to be collected over a twelve-month period from the date of the order.
On February 11, 2021, Pennichuck Water Works filed a petition with the NHPUC for a 5.44%
QCPAC surcharge (inclusive of the 3.83% filed for and approved in Order No. 26,555) on all
capital improvements completed and placed in service by Pennichuck Water Works in 2020.
The Commission has not issued an Order approving this requested surcharge. When the
Commission issues the Order, the surcharge will become effective retroactively to customers on
a “service rendered basis” back to April 1, 2021, which is the date for which Pennichuck Water
Works’ annual bond issuance associated with these capital investments and the QCPAC
surcharge will be completed and funded. The Order will allow recoupment of the surcharge
