The following table represents the total estimated amortization of MARA:
Estimated
Amortization
(in thousands) Expense
2018 $ 1,958
2019 2,006
2020 2,061
2021 2,119
2022 2,183
2023 and thereafter 62,900
Total $ 73,227
Note 12 — Rate Cases
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 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, 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 temporary rate increase would be approved very early in 2017.
The Company, NHPUC Staff and the Office of Consumer Advocate agreed to a temporary
rate increase at "current rates," and as such, there was no impact on ratepayers for any
temporary rate increases.
The request for the overall permanent rate increase was based upon increases in PWW’s
operating costs since the last allowed rate increase in 2010/2011 (for the 2009 test year), as
well as revenues needed to pay the debt service on over $40 million of infrastructure
replacements made since the last rate case, with those dollars being invested in its real
property assets, distribution and treatment systems, and other necessary capital items, to
ensure continued compliance with the Safe Drinking Water Act and prudent ongoing
replacement of aging infrastructure to properly maintain the company’s operating systems.
On November 7, 2017, the PUC issued Order No. 26,070 approving a permanent rate
increase of 3.12% and a 7.69% step increase for its customers. The permanent rate increase
was effective on a bills-rendered basis on and after December 7, 2016. The step increase is
effective the date of the order, November 7, 2017.
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