Pennichuck East
On November 24, 2020, Pennichuck East filed a request with the NHPUC for a rate increase
of 21.05% over its current rates for the test year 2019, effective December 24, 2020, for which
15.00% of this increase is related to a request for a temporary rate increase effective for
services rendered on or after December 24, 2020, The temporary rate increase is subject to
approval by the Commission which is separate and distinct from the final rate increase
approval, as the Commission’s final determination on the permanent rate increase request is
processed to completion. The 15.00% temporary rate increase would be inclusive of a 2.98%
Qualified Capital Project Adjustment Charge (QCPAC) surcharge which was approved on
December 6, 2019 in Order No. 26,313 and a 1.97% QCPAC surcharge which is currently
pending in DW 20-019.
On August 16, 2021, the NHPUC issued Order No. 26,508 approving temporary rates at
14.03% effective on a service rendered basis as of December 24, 2020. The temporary rate
increase was inclusive of a QCPAC surcharge of 2.98% which was approved in 2019 within
order No, 26,313.
In addition to the rate increase requested, Pennichuck East requested certain modifications
to its ratemaking structure which were similarly approved for Pennichuck Water on July 24,
2020 by NHPUC Order No. 26,383. These modifications would include:
e creating a Material Operating Expense Factor (MOEF), an expense factor on top of its
material operating expenses to cover inflationary increases between rate filings, as a
component of that portion of its allowed revenues in determining permanent rates;
e inclusion of actual NHBET cash payments in its revenue requirement calculation;
e reprioritizing the use of Debt Service Revenue Requirement (DSRR) 0.1 funds;
® recovery of State Revolving Loan Fund and Drinking Water Groundwater Trust Fund
debt issuance costs; and
e re-establishment of imprest levels of the components of the RSF account and the
retention of a previously approved reconciliation mechanism.
Final approval by the NHPUC on new permanent rates and the requested modifications to its
ratemaking structure for PEU, was expected to be approved early 2022 (see footnote 18).
Pittsfield Aqueduct
On November 16, 2020, PAC filed a request with the NHPUC for a rate increase of 11.18%
over its current rates for the test year 2019, effective 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 would be
effective retroactive back to the filing date.
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