Business & Finance
Business and Finance
Business and Finance
Wed, January 7, 2009
Tue, January 6, 2009 Pennichuck Corporation: Pennichuck Corporation Announces Temporary Rate Increases for Two of Its Regulated Utilities
MERRIMACK, NH--(Marketwire - January 6, 2009) - Pennichuck Corporation (
The Pennichuck Water order provides for an annualized temporary increase in revenues of approximately $2.4 million, or 11%, effective for service rendered from and after July 28, 2008. Increased revenues for the period July 28, 2008 through December 31, 2008 will be recorded in the fourth quarter of 2008. The Pittsfield order provides for an annualized temporary increase in revenues of approximately $666,000, effective for service rendered from and after June 6, 2008. Increased revenues for the period June 6, 2008 through December 31, 2008 will be recorded in the fourth quarter of 2008.
In June 2008, Pennichuck Water filed for rate relief with the NHPUC to recover increased operating expenses and to obtain recovery of and a return on capital improvements principally for the ongoing major upgrade to its 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. Pursuant to that filing, Pennichuck Water requested an overall permanent increase in rates that, if approved in its entirety, would result in an annual increase in revenues of approximately $5.1 million. Included in the $5.1 million are two proposed step increases that, if approved, would increase annual revenues by approximately $1.9 million. Pennichuck Water also requested a temporary annualized rate increase of $2.4 million, or 11.27%, pending the establishment of permanent rates.
Commenting on Pennichuck Water's capital improvements, Duane C. Montopoli, Pennichuck's President and Chief Executive Officer, said, "As we enter 2009, I'm very pleased to report that the multi-year $40 million upgrade of our water treatment plant is on schedule, on budget and nearing completion. Upon completion in early 2009, it will be a state-of-the-art facility capable of producing high quality water under a wide range of operating conditions. It will also enable us to continue to provide our Pennichuck Water customers with clean, safe and reliable drinking water for many years to come."
In May 2008, Pittsfield filed for rate relief with the NHPUC to recover increased operating expenses and to obtain recovery of and a return on capital improvements principally benefitting water systems acquired in mid-2006. Pursuant to that filing, Pittsfield requested an overall permanent increase in rates that, if approved in its entirety, would result in an annual increase in revenues of approximately $1.1 million. Included in the $1.1 million is a proposed step increase that, if approved, would increase annual revenues by approximately $184,000. Pittsfield also requested a temporary annualized rate increase of $718,000 pending the establishment of permanent rates.
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 timing and results of a rehearing before the New Hampshire Public Utilities Commission regarding its recent eminent domain order (the "Eminent Domain Order") in favor of the City of Nashua, New Hampshire; the timing and results of a possible appeal to the New Hampshire Supreme Court regarding the Eminent Domain Order; 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.
