Pennichuck Corporation Announces New Hampshire PUC Approval of 22% Final Rate Increase
August 14 2009 - 1:55PM
Marketwired
Pennichuck Corporation (NASDAQ: PNNW) today announced that on
August 13, 2009, the New Hampshire Public Utilities Commission (the
"NHPUC") issued an Order modifying and approving the rate
settlement in effect between the Company's Pennichuck Water Works,
Inc. subsidiary ("Pennichuck Water") and the Staff of the NHPUC.
The Order makes effective an annualized increase in Pennichuck
Water's revenues of approximately $4.7 million, or 21.8%, and
replaces an annualized temporary increase of $2.4 million, or 11%,
that has been in effect since July 2008. These dollar amounts and
percentages are based on 2007 water usage volumes.
The primary purpose of this rate relief, which was initiated in
June 2008, is to allow Pennichuck Water to recover increased
operating expenses and to obtain recovery of and a return on
capital improvements principally for the then ongoing major upgrade
to the company's water treatment plant, the replacement of a 5.5
million gallon water tank, the installation of radio meter reading
equipment and the replacement of aging infrastructure. In December
2008, the NHPUC approved a temporary increase of 11% effective for
service rendered from July 28, 2008. The final Order now being
announced replaces the temporary increase with a permanent increase
of 11.4% effective as of the same service rendered date plus a step
increase of 10.4% effective for billings from August 13, 2009.
Increased revenues retroactive to July 28, 2008 will be recorded in
the third quarter of 2009.
Commenting on Pennichuck Water's capital improvements, Duane C.
Montopoli, Pennichuck's President and Chief Executive Officer,
said, "I'm very pleased to report that the multi-year $40 million
upgrade of our water treatment plant was completed earlier this
year on schedule and on budget. It is a state-of-the-art facility
that will enable us to continue to provide our Pennichuck Water
customers with clean, safe and reliable drinking water for many
years to come."
Pennichuck Corporation is a holding company involved principally
in the supply and distribution of potable water in New Hampshire
through its three regulated water utilities. Its non-regulated,
water-related activities include operations and maintenance
contracts with municipalities and private entities in New Hampshire
and Massachusetts. The Company's real estate operations are
involved in the ownership, management and commercialization of real
estate in southern New Hampshire.
Pennichuck Corporation's common stock trades on the Nasdaq
Global Market under the symbol "PNNW." The Company's website is at
www.pennichuck.com.
This news release may contain certain forward-looking statements
with respect to the financial condition, results of operations and
business of Pennichuck Corporation. Forward-looking statements are
based on current information and expectations available to
management at the time the statements are made, and are subject to
various factors, risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These factors include, but are not
limited to, the results of the appeal to the New Hampshire Supreme
Court of the reaffirmed eminent domain order of the New Hampshire
Public Utilities Commission in favor of the City of Nashua, New
Hampshire; the impact of an eminent domain taking by Nashua on
business operations and net assets; legislation and/or regulation
and accounting factors affecting Pennichuck Corporation's financial
condition and results of operations; the availability and cost of
capital, including the impact on our borrowing costs of changes in
interest rates; and, the impact of weather. Investors are
encouraged to access Pennichuck Corporation's annual and quarterly
periodic reports filed with the Securities and Exchange Commission
for financial and business information regarding Pennichuck
Corporation, including a more detailed discussion of these and
other risks and uncertainties that could affect Pennichuck
Corporation's forward-looking statements. We undertake no
obligation to update or revise publicly any forward-looking
statement.
For More Information, Contact: Thomas C. Leonard Senior Vice
President and Chief Financial Officer Phone: 603-913-2300 Fax:
603-913-2305
Pennichuck (NASDAQ:PNNW)
Historical Stock Chart
From Sep 2024 to Oct 2024
Pennichuck (NASDAQ:PNNW)
Historical Stock Chart
From Oct 2023 to Oct 2024