Rate Covenant Test - If during any fiscal year, the EBITDA of Pennichuck Water shall not
equal at least 1.1 times all amounts paid or required to be paid during that year
(“Amounts Paid”}, then the Company shall undertake reasonable efforts to initiate a rate-
making proceeding with the NHPUC, to rectify this coverage requirement in the
succeeding fiscal years. Thereby, the ratio of EBITDA to Amounts Paid must be equal to
or greater than 1.1; as of December 31, 2021 and 2020, the Rate Covenant coverage ratio
was 2.19 and 3.57, respectively.
13. Accumulated Other Comprehensive Income
The following table presents changes in accumulated other comprehensive income by
component for the years ended December 31, 2021 and 2020:
(in thousands)
Beginning balance
Other comprehensive income (loss) before reclassifications
Amounts reclassified from accumulated other
comprehensive income
Net current period other comprehensive income (loss)
Ending balance
interest Rate Contract
2021 2020
254 «=§ 318
43 (89)
59 25
102 (64)
The following table presents reclassifications out of accumulated other comprehensive
income for the years ended December 31, 2021 and 2020:
Amounts Reclassified
from Accumulated Other
Comprehensive Income
Details about Accumulated Other
Comprehensive Income Components
(in thousands) 2021 2020
Gain on cash flow hedges:
Interest rate contracts $ 98 6S 42
(39) (17)
Amounts reclassified from accumulated
other comprehensive income $ 59 863§ 25
43
Affected tine Itemin
the Statement Where
Net Income is Presented
Interest expense
Tax expense
Net of tax
