TWENTY-THIRD IN A SERIES

IT’S TIME CITY LEADERS STARTED
PROVIDING SOME STRAIGHT ANSWERS

Dear Customers and Shareholders,

To reach your Alderman, call 603-589-3030 ALDERMEN-AT-LARGE Brian McCarthy James Tollner Steven Bolton David Deane Paula Johnson David Rootovich WARD ALDERMEN Ward 1 Kathryn Vitale Ward 2 Richard LaRose Ward 3 Kevin Gage Ward 4 Marc Plamondon Ward 5 David Lozeau Ward 6 Robert Dion Ward 7 Lori Cardin Ward 8 David McLaughlin Ward 9 Robert Shaw, Jr.

The citizens of Nashua must be wondering why, after more than two years of threatening a hostile takeover of Pennichuck and flushing more than a million dollars of taxpayer money down the drain, the city has absolutely nothing to show for it. No testimony before the New Hampshire Public Utilities Commission (PUC), no plans or explanations to the public, no resolutions and frankly no end in sight.

Maybe the answer to “Why?” is because city officials and their consultants and attorneys can’t keep their stories straight. Their contradictory statements and actions have led to continuous confusion, ongoing delays and escalating costs. We think their public contradictions speak for themselves:

No, we can’t… Yes, we can…

Alderman-at-large Brian McCarthy’s actions and words contradict and ignore his own interpretation of the state law, and bring into question the legitimacy of the city’s actions.

• On February 3, 2003, Alderman-at-large Brian McCarthy stated,“We cannot buy a profit-making corporation.”
• But on November 20, 2003, McCarthy actively supported the city’s offer to buy all of Pennichuck Corporation for $121 million. According to the Nashua Telegraph report, “We ought to be in the right ballpark...,” McCarthy said.

We want it all… No, that doesn’t make sense…

The city’s claim that a hostile takeover of Pennichuck utilities outside of Nashua is in the “best interest” of consumers apparently doesn’t apply to everyone, as this contradiction by the city’s legal advisor clearly suggests.

• In an April 26, 2004 motion to the Superior Court of New Hampshire, the city asserted that acquiring Pennichuck assets outside of Nashua is “in the public interest” because “it will protect the level of service to… consumers.”
• But on July 19, 2004, less than three months later, in Superior Court once again, the city’s legal counsel said,“…it’s easier for us not to acquire a lot of those little systems… scattered all over kingdom come. It doesn’t make any sense to own a Newmarket,… to own Plaistow and Atkinson from an operational standpoint.”

Can they or can’t they? Will they or won’t they? No one knows – apparently not even the city.

Maybe it’s time city leaders started providing some straight answers. And maybe it’s time to ask the real question…Why are city leaders continuing to pour more than $1,000,000 of taxpayer money down the drain?

Call your alderman today at (603) 589-3030 and get some straight answers.

Pennichuck Corporation
New Hampshire’s Oldest
Continuously Operating Business
September 26, 2004