SOURCE: Pennichuck Corporation

Pennichuck Corporation

December 16, 2009 09:00 ET

Pennichuck Corporation Announces Permanent Rate Increase for Its Pittsfield Aqueduct Utility Subsidiary

MERRIMACK, NH--(Marketwire - December 16, 2009) - Pennichuck Corporation (NASDAQ: PNNW) today announced that on December 11, 2009, the New Hampshire Public Utilities Commission (the "NHPUC") issued an Order approving the rate settlement in effect between the Company's Pittsfield Aqueduct Company, Inc. water utility subsidiary ("Pittsfield") and the Staff of the NHPUC. The Order provides for an annualized increase in Pittsfield's revenues of approximately $782,000 effective for service rendered from June 6, 2008 and replaces an annualized temporary increase of $666,000 that took effect as of that same service rendered date. Increased revenues retroactive to June 6, 2008 will be recorded in the fourth quarter of 2009.

The primary purpose of this rate relief, which was initiated in May 2008, is to allow Pittsfield to recover increased operating costs and to obtain recovery of and a return on capital improvements principally benefiting water systems acquired in 2006. The Order also approves the transfer of certain North Country water utility assets and related franchise rights from Pittsfield to the Company's Pennichuck East Utility, Inc. subsidiary effective January 1, 2010.

Commenting on this permanent rate increase, Duane C. Montopoli, Pennichuck's President and Chief Executive Officer, said, "We estimate that the additional fourth quarter 2009 revenues from this order will add about $.02 per share to our reported earnings."

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

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.

Contact Information

  • For More Information, Contact:
    Thomas C. Leonard
    Senior Vice President and Chief Financial Officer
    Phone: 603-913-2300
    Fax: 603-913-2305