Notes to Balance Sheet
Note 1 (Other Current Assets) - At December 31, 2017, approximately $1.1 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2018, relating to taxes paid in November and December of 2017 for the second half of the
property tax year ended March 31, 2018.
Note 2 (Acquisition Premium) — 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 (Accrued Pension Liability) — During 2017, approximately $1.1 million was contributed into
the Pension Plan, while approximately $.6 million in benefit payments were made to participants
and approximately $2.4 million of investment gains and appreciation was added to the plan.
Capital Expenditures
Capital expenditures in the fourth quarter of 2017 were $2.9 million compared to $8.1 million
in the fourth quarter of 2016. For the year 2017, capital expenditures were $8.0 million as
compared to $20.8 million in 2016.
The major expenditures for 2017 were as follows:
Amherst St. Area Main Improvements $ 1,144,000
Main St. Area Main Replacements Phase 1 $ 800,000
Meter Replacements $ 561,000
Asset Management / GIS / DPaC $ 544,000
City Sewer Project - Main Replacements $ 416,000
PWW-PEU Interconnection Design & Evaluation $ 348,000
Route 101 Widening, Bedford $ 263,000
Maple Hills Water Main Improvement, Derry $ 248,000
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% was related to a permanent rate increase,
and 9.35% was related to a prospective step increase (associated with capital investments and
other allowable expenditures in the twelve months following the test year). The overall
requested 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
would be effective retroactive back to the filing date, 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, as a part of the rate case filing, PWW requested
that a temporary rate increase of 6.21% be granted as a subset of the final permanent rate
