Notes to Balance Sheet
Note | (Other Current Assets) — At December 31, 2018, approximately $1.0 million of this
balance is comprised of prepaid property taxes, which will be expensed in the first quarter of
2019, relating to taxes paid in November and December of 2018 for the second half of the
property tax year ended March 31, 2019.
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 2018, approximately $1.1 million was contributed into
the Pension Plan, while approximately $.6 million in benefit payments were made to participants,
and approximately $0.9 million of investment losses were recorded, attributed to changes in market
values.
Capital Expenditures
Capital expenditures in the fourth quarter of 2018 were $6.6 million compared to $2.9 million
in the fourth quarter of 2017. For the year 2018, capital expenditures were $13.6 million as
compared to $8.0 million in 2017.
The major expenditures for 2018 were as follows:
PWW-PEU Interconnection $ 2,980,000
Kinsley St. Main Replacements $ 694,000
Taylor St. Main Replacements — Phase 2 $ 651,000
Factory St. Main Replacements $ 603,000
Asset Management $ 387,000
Brady Ave./Maple Hills, Derry Main Replacements $ 372,000
Marshall St. Main Replacements $ 355,000
PWW-PEU Interconnection — Station Bidding & Const. $ 339,000
Meter Replacements $ 314,000
Rate Case - Pennichuck East Utility, Inc.
On October 18, 2017, Pennichuck East Utility, Inc. (“PEU”) filed a request with the Public
Utilities Commission (“NHPUC’) for a rate increase of 20.78% over its current rates for the test
year 2016, for which 19.36% of this increase is related to a permanent rate increase and 1.42% 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 was 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, PEU requested that a temporary rate increase af 12.24% be granted as a subset of the
