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Water Infrastructure and Conservation Adjustment (WICA)
On April 30, 2015, the Public Utilities Commission issued Order No. 25,784 approving a WICA
surcharge of 1.81% for customers of Pennichuck Water Works, Inc. in the Nashua Core System.
The surcharge is effective for service rendered on and after June 1, 2015. The order was
effective May 20, 2015.
Financing
On January 20, 2015, the entire balance in the Restricted Cash Bond Refund Escrow Account,
which included $23,350,000 of principal due on the Pennichuck Water Works, Inc. refinanced
bonds, as well as approximately $375,000 of accrued interest due on those bonds, was paid out to
holders of the debt instruments.
On March 4, 2015, Pennichuck East Utility, Inc. completed a financing transaction with CoBank,
ACB in the amount of $625,000 for a term of 25 years at an interest rate of 4.9%.
On March 16, 2015, Pennichuck East Utility, Inc. completed a financing transaction with the
New Hampshire Department of Environmental Services under the State Revolving Fund
Program in the amount of $510,000 for a term of 20 years at an interest rate of 2.72%. The loan
will fund the replacement of mains at the W&E System in Windham.
On May 15, 2015, Pennichuck Water Works, Inc., Pennichuck East Utility, Inc. and Pittsfield
Aqueduct Company, Inc. completed a financing transaction with the New Hampshire
Department of Environmental Services under the State Revolving Fund Program in the amount
of $3,500,000, $400,000 and $165,000, for a term of 20 years at an interest rate of 3.1689%. The
loans will fund main installation and/or replacements in Merrimack, Barnstead and Pittsfield,
New Hampshire.
On May 29, 2015, Pennichuck Water Works, Inc. filed a financing petition for up to
$25.5 million with the Public Utilities Commission relative to its Integrated Capital Finance
Plan. On September 2, 2015, the Public Utilities Commission approved the financing. On
October 27, 2015, the Company closed on the financing which included the refinancing of
$16.2 million of existing debt and $7.0 million related to the construction of an operations center.
The all-in interest rate relative to the financing is approximately 4.3%.
On September 29, 2015, the Public Utilities Commission issued an Order approving an
increase in the short-term debt limit to 18% for Pennichuck East Utility, Inc. and Pittsfield
Aqueduct Company, Inc., until June 30, 2019.
Succession Planning
The Company’s Chief Executive Officer, John Patenaude, retired on November 6, 2015. On that
date, Larry Goodhue, the Company’s Chief Financial Officer, Treasurer and Controller, was
promoted to Chief Executive Officer. Also on November 6, 2015, George Torres was promoted
to Corporate Controller, and Carol Ann Howe was promoted to Assistant Treasurer.
