Notes to Balance Sheet
Note 1 (Other Current Assets) ~ At December 31, 2016, approximately $1.2 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2017, relating to taxes paid in November and December of 2016 for the second half of the
property tax year ended March 31, 2017.
Note 2 — In accordance with GAAP, the Acquisition Premium is being written-off over the
30-year life of the principal of the City Acquisition Debt.
Note 3 — During 2016, approximately $970,000 was contributed into the Pension Plan, while
approximately $1,056,000 in benefit payments were made to participants and approximately
$1,103,000 of investment gains and appreciation was added to the plan.
Capital Expenditures
Capital expenditures in the fourth quarter of 2016 were $8.1 million compared to $5.0 million
in the fourth quarter of 2015. For the year 2016, capital expenditures were $20.8 million as
compared to $12.9 million in 2015.
The major expenditures for 2016 were as follows:
($000’s)
New Operations Building $ 7,000
Harris Dam Spillway $ 1,900
Varney Road (Locke Lake), Barnstead, NH $ 1,700
Merrimack Raw Water Transmission Main $ 1,100
Asset Management / GIS / DPaC $ 612
Meter Replacements $ 403
Dean & Main Building Renovation $ 317
Manchester Road Water Main Replacement (Amherst) $ 245
Maple Haven Booster Station Upgrade $ 229
Rate Case — Pennichuck Water Works, Inc.
On September 23, 2016, Pennichuck Water Works, Inc. (“PWW”) filed a request with the New
Hampshire Public Utilities Commission (“NHPUC”) for a rate increase of 17.21% over its
current rates for the test year 2015, for which 7.86% is related to a Permanent rate increase, and
9.35% is related to a prospective Step increase (associated with capital investments and other
allowable expenditures in the twelve months following the test year). 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 bills rendered on or after December 7, 2016, once approved by the NHPUC. The Step
increase, once approved and granted, would be earned on a forward looking basis, as of the date
of the order granting such increase. In addition, PWW requested that a Temporary rate increase
of 6.21% be granted as a subset of the final permanent rate increase, with the intention that this
