17.
On November 9, 2021, the NHPUC issued Order No. 26,544 approving an overall permanent
rate increase of 5.45%, which became effective with services rendered back to December 17,
2020. In addition, the Order approved the requested modifications to its ratemaking structure.
Qualified Capital Project Adjustment Charge
Pennichuck Water
On February 19, 2020, Pennichuck Water filed a petition with the NHPUC for a 3.83% QCPAC
surcharge on all capital improvements completed and placed in service by Pennichuck Water
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.
Pennichuck East
On February 13, 2020, Pennichuck East filed a petition with the NHPUC for a 1.97% surcharge
on all capital improvements completed and placed in service by Pennichuck East in 2019. The
Commission has not issued an Order approving this requested surcharge. When the
Commission issues the Order the surcharge will become effective retroactively on services
rendered basis back to November 23, 2020. The Order will allow recoupment of the surcharge
from all its customers based on their actual bills incurred between November 23, 2020 and
the final effective date of the Order. However, on September 23,2021 the NHPUC issued
Order No. 26,525 which approved Pennichuck East’s subsequent request to embed the
surcharge into the current rate case in pendency (see footnote 18). Final approval by the
NHPUC on this QCPAC surcharge, combined with new permanent rates and the requested
modifications to its ratemaking structure for PEU, was expected to be received in early 2022
(see footnote 18).
COVID-19 Pandemic impact
In March 2020, the World Health Organization (“WHO”) recognized COVID-19 as a global
pandemic and the President of the United States of America declared the COVID-19 outbreak
in the United States a national emergency. This prompted many national, regional, and local
governments to implement preventative or protective measures, such as travel and business
restrictions, temporary business closures, and wide-sweeping quarantines and stay-at-home
orders.
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