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Additionally, during 2018 the Company was asked by NHDES to contract for similar design
services with SGPP for expansion of its public water system in southern Bedford. This project
was initiated in 2018, and was slated for completion in the first half of 2019, bringing water to
approximately 90 new customers in that community.
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bond issuance associated with these capital investments and the QCPAC surcharge will be
completed and funded. The Order will allow recoupment of the surcharge from all its customers
based on their actual bills incurred between April 1, 2021 and the final effective date of the
Order.
Directors and the Sole Shareholder. This issuance had previously received NHPUC approval on
Order No. 26,101, dated February 2, 2018, which authorized up to $32.5 million in bonds via
multiple issuances for the years 2018-2021.
Capital Expenditures
Capital expenditures in the fourth quarter of 2020 were $4.9 million compared to $7.2 million
in the fourth quarter of 2019. For the year 2020, capital expenditures were $10.7 million as
compared to $16.6 million in 2019.
The major expenditures for 2020 were as follows:
Locke Lake New Water Source $ 1,923,000
25 Walnut Street Office Building Fit-Up and Relocation 619,000
Peacham Road Pipeline — Locke Lake 591,000
Carbon Filter Media Changeout — 5 & 6 495,000
Merrimack River Intake 485,000
Notes to Balance Sheet
Note 1 (Restricted Cash) — At December 31, 2020, the balance of $8.9 million represents an
increase of $6.9 million from the end of 2019, mainly due to: (1) the cash generated from the
increased revenue levels year-over-year; and (2) the additional proceeds received from
Pennichuck Water’s September 2™ bonding event as a one-time replenishment of the existing
MOERR Rate Stabilization Fund.
Balance Sheet ($000’s)
As of As of
December 31, 2020 December 31, 2019
(Audited) (Audited)
Assets
Property, Plant & Equipment, Net $ 242.469 $ 237,182
Current Assets:
Unaudited Cash Flow Statement
Cash Flow on a GAAP basis for the fourth quarter of 2020 as compared to the fourth quarter of
2019, and the year-to-date 2020 versus 2019, are as follows:
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Consolidated operating expenses increased by $0.8 million, or 2.1%, for the full year,
from 2019 to 2020, mainly due to the higher direct production costs, as well as labor and
benefit costs, as previously discussed.
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Third, the Mayor and Board of Aldermen unanimously agreed to establish a corporate
governance system for the purposes of managing Pennichuck Corporation. This corporate
governance system relies upon well-established principles of corporate law, and is established
pursuant to Pennichuck Corporation’s Articles of Incorporation and By-Laws, as adopted by the
City and the Company at the time of the acquisition pursuant to the Merger Agreement.
