18.
During the COVID-19 pandemic, the Company’s services have generally been considered
essential in nature and have not been materially interrupted. As the situation continues to
evolve, management is closely monitoring the impact of the COVID-19 pandemic on all
aspects of the Company’s business, including how it impacts customers, subcontractors,
suppliers, vendors, and employees, in addition to how the COVID-19 pandemic impacts the
Company's ability to provide services to customers. We believe the ultimate impact of the
COVID-19 pandemic on operating results, cash flows and financial condition is likely to be
determined by factors which are uncertain, unpredictable, and outside of our control. The
situation surrounding COVID-19 remains fluid, and if disruptions do arise, they could
materially adversely impact our business.
Subsequent Events
The Company has evaluated the events and transactions that have occurred through March
23, 2022, the date that these consolidated financial statements were available for issuance.
Pennichuck East Utility Rate Case
On February 18, 2022, the NHPUC issued Order No. 26,586 approving a permanent rate
increase of 16.79%, becoming effective with services rendered as of December 24, 2020 for
its customers.
In this Order, the Commission also approved modifications to its current ratemaking structure
which include:
e the creation of a MOEF of 4%;
e inclusion of actual NHBET cash payments in its revenue requirement calculation;
® reprioritizing the use of DSRR 0.1 funds;
e recovery of debt issuance costs; and
® re-establishment of the prescribed imprest levels of the components of the RSF
accounts.
PPP Loan
On February 2, 2022, the SBA determined that the Company was ineligible for forgiveness of
the $2.5M 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.
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