Pennichuck Corporation Announces Temporary Rate Increases for Two of Its Regulated Utilities
October 13 2010 - 4:45PM
Marketwired
Pennichuck Corporation (NASDAQ: PNNW) today announced that the New
Hampshire Public Utilities Commission (the "NHPUC") has issued
orders approving temporary rate increases for two of its regulated
utility subsidiaries, Pennichuck Water Works, Inc. ("Pennichuck
Water") and Pittsfield Aqueduct Company, Inc. ("Pittsfield").
The Pennichuck Water order provides for an annualized temporary
increase in revenues of approximately $2.6 million, or 10.8%,
effective for bills rendered from and after October 8, 2010.
In May 2010, Pennichuck Water filed for rate relief with the
NHPUC seeking a permanent annual increase in revenues of $3.9
million, or 16.23%, plus a step increase of $0.9 million, or 3.68%.
The rate relief request is associated with recovering the cost of
new capital improvements of approximately $15 million since its
last rate case combined with (a) the revenue loss which resulted
from water usage volume declines over the past two years, (b)
increased state utility and property tax expenses, and (c) eminent
domain defense costs. Water usage volumes have declined since 2007
due to the combined effects of the economic recession, cool and wet
weather affecting peak summer usage and continued customer
conservation efforts related to water saving appliances and the
like.
The Pittsfield order provides for an annualized temporary
increase in revenues of approximately $61,000 or 10%, effective for
bills rendered from and after October 8, 2010. The requested rate
increase is due to higher property taxes and insurance.
The temporary rate relief that has now been granted by the NHPUC
for both Pennichuck Water and Pittsfield does not necessarily
reflect the ultimate outcome of the underlying requests for
permanent rate relief. Any difference between the temporary rate
relief now being granted and the permanent rates ultimately
approved by the NHPUC for these utilities will be reconciled upon
the approval of such permanent rates.
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 outcome of requests for rate relief from the NHPUC
from time to time, the implications of the New Hampshire Supreme
Court's March 25, 2010 decision affirming the eminent domain order
of the NHPUC in favor of the City of Nashua, New Hampshire; the
impact of an eminent domain taking by Nashua on business operations
and net assets; the interpretation of RSA 38:13 of the New
Hampshire utility municipalization statute to a potential
negotiated sale of the stock of Pennichuck Corporation to Nashua
including the 2007 special legislation that authorizes the city to
purchase and hold the stock of Pennichuck Corporation in settlement
of the municipalization proceeding; 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 as well as current reports on Form 8K 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
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