SOURCE: Pennichuck Corporation

November 19, 2008 09:40 ET

Pennichuck Corporation Comments on City of Nashua Press Release

MERRIMACK, NH--(Marketwire - November 19, 2008) - Pennichuck Corporation (NASDAQ: PNNW) today commented on a press release that was issued by the City of Nashua, New Hampshire yesterday. In its press release, the City announced that it is hiring two advisory firms to assist it in exploring all possible ways that it might acquire the Company's Pennichuck Water Works, Inc. regulated utility subsidiary by means other than eminent domain.

Commenting on this development, Duane C. Montopoli, Pennichuck's President and Chief Executive, said, "While we have not had any recent settlement discussions with Nashua, as we have previously publicly stated, we are open to having such discussions."

Commenting further on this matter, Mr. Montopoli added, "We look forward to the possibility of engaging in comprehensive settlement discussions with the City of Nashua aimed at resolving our dispute outside of eminent domain. Nevertheless, I must caution Pennichuck stakeholders that should such discussions occur in the future, a comprehensive settlement would require the negotiation and resolution of many complex issues and, therefore, no assurance can be given that Nashua and Pennichuck would ultimately be able to reach a settlement agreement. Moreover, in addition to the approval of two-thirds of Nashua's Board of Aldermen, a definitive settlement agreement could also be subject to approval by the New Hampshire Public Utilities Commission and, depending on the terms of any settlement, Pennichuck shareholders."

The Company generally does not intend to comment further on the status or substance of settlement discussions should they occur in the future, unless and until a definitive settlement agreement is entered into.

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.

Contact Information

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