SOURCE: Pennichuck Corporation

Pennichuck Corporation

August 28, 2009 08:00 ET

Pennichuck Corporation Receives $2.1 Million in Water Infrastructure Funding

Includes American Recovery and Reinvestment Act Stimulus Grants

MERRIMACK, NH--(Marketwire - August 28, 2009) - Pennichuck Corporation (NASDAQ: PNNW) today announced that its Pennichuck Water Works, Inc. subsidiary ("Pennichuck Water") has been awarded $2.1 million in low-cost loans by the New Hampshire Department of Environmental Services ("NHDES") for drinking water infrastructure projects in New Hampshire. One-half of this amount is federal stimulus money under the American Recovery and Reinvestment Act of 2009 ("ARRA") that will be forgiven over the life of the loan. The other one-half is from an existing NHDES revolving loan program and will carry an interest rate of 3.74% or less.

Of the $2.1 million, $1.3 million is for the replacement and/or rehabilitation of over 8200 lineal feet of water main in the French Hill area of Nashua, New Hampshire. $450,000 is for the connection of Pennichuck Water's Ashley Commons Community Water System in Milford, New Hampshire to the Town of Milford's water system in order to replace a low yield, poor water quality well supply. $300,000 is for the construction of a new pumping station in south Nashua, and $98,000 is for the replacement of an aging 20,000 gallon water storage tank at Pennichuck Water's Glenridge Community Water System in Derry, New Hampshire.

Commenting on this development, Duane C. Montopoli, Pennichuck's President and Chief Executive, said, "These are important necessary projects that will improve the water system and add jobs in the local area. Furthermore, the forgiveness of loan principal and the low interest rates on the remaining loan balances will help to minimize water rates for the benefit of Pennichuck Water's customers."

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.

Contact Information

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