e reallocating the value of components of the aggregate RSF; and
e changing the treatment of debt issuance costs for long-term debt, other than tax
exempt and taxable bond issuances.
On July 24, 2020, the NHPUC issued Order No. 26,383 which approved the following
modifications to its current ratemaking structure: (1) the creation of the MOEF. The MOEF
percentage factor will be applied to Pennichuck Water’s MOERR and established in each rate
proceeding; (2) the inclusion of actual NHBET cash payments in the revenue requirement,
included as part of the MOERR component; (3) reprioritization of DSRR 0.1 funds to include
funding of deferred assets, replenishment of RSF fund balances to their imprest values, and
for funding of capita! improvements.
On November 24, 2020, the NHPUC issued Order No. 26,425, which approved a MOEF of 9.5%
to be applied to the MOERR, as a factor determining that overall portion of allowed revenues
in determining permanent rates.
In this Order, the Commission also approved an overall permanent rate increase of 11.85%,
becoming effective with services rendered on the date of the order. The permanent rate
increase is inclusive of a QCPAC of 4.06% previously approved by NHPUC Order No. 26,298
on October 19, 2019 for 2018 capital expenditures, resulting in a net increase of billed rates
to customers over and above the QCPAC surcharge already in place, of 7.79%.
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
15.0% 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 15.0% temporary rate increase would be inclusive of a 2.98%
QCPAC surcharge which was approved on December 6, 2019 in Order No. 26,313 anda 1.97%
QCPAC surcharge which is currently pending in DW 20-019.
In addition to the rate increase requested, Pennichuck East has 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:
*® creating a 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;
¢ = reprioritizing the use of DSRR 0.1 funds;
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