® 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.
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 will be effective
retroactive back to the filing date, with final approval by the NHPUC in the Fall of 2021.
The request for the overall permanent rate increase was based upon increased PAC operating
expenses since the last allowed rate increase in 2014 (for the 2012 test year), and to provide
sufficient revenues to pay for investments made in its treatment systems to ensure its
continued compliance with the Safe Drinking Water Act.
In addition to the rate increase requested, PAC is requesting certain modifications to its
ratemaking structure which were similarly approved for Pennichuck Water on November 7,
2017 by the NHPUC in Order No. 26,070 and July 24, 2020 by Order No. 26,383. These
modifications would include:
e use of a five-year trailing average of revenues and expenses as a test period;
e creating an MOERR RSF, a DSRR RSF, and a City Bond Fixed Revenue Requirement Rate
Stabilization Fund (CBFRR) RSF to provide rate stabilization and cash flow coverage for
operating expenses, debt service, and the CBFRR portion of revenues, between
permanent rate filings;
e creating three “buckets” of allowed revenues comprising the allowed revenues for
the Company, in their component levels, including:
o OERR
« Comprised of the MOERR and the NOERR
© DSRR
= Comprised of the DSRR 1.0 and DSRR 0.1
o CBFRR
® Which already existed in PAC’s rate structure, but is being redefined as an
overall component in determining allowed revenues;
e creating a MOEF, an expense factor on top of its test year material cperating
expenses, in defining the overall value of the MOERR portion of allowed revenues,
and to cover inflationary increases between rate filings, as a component of that
portion of its allowed revenues in determining permanent rates;
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