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For Immediate Release: February 4, 2004 Contact:
Donald L. Correll, President and CEO Pennichuck Corporation
NASHUA, N.H. – Pennichuck Corporation (NASDAQ: PNNW) today announced it has filed a petition for declaratory judgment in Hillsborough County Superior Court that seeks judicial review of and equal rights under New Hampshire law governing municipal takeover of utilities by eminent domain. The petition asks the court to intervene to end the limbo in which Pennichuck finds itself because of the city of Nashua’s failure to act for more than a year after a referendum vote purporting to authorize the city to pursue taking Pennichuck’s assets by eminent domain.The petition also cites the fact that Nashua’s behavior has caused and continues to cause substantial financial damage to Pennichuck, and is hindering the company’s ability to pursue new business opportunities. The petition states that Nashua has neither filed any petition for eminent domain at the Public Utilities Commission (PUC), nor said publicly that it has abandoned that intention. As a result, Pennichuck has been unable to pursue aggressively opportunities for the purchase and operation of other water systems in New Hampshire, and the company continues daily to incur substantial expenses associated with the threatened taking of its assets. “In effect, the city of Nashua has attempted to reap the control benefits of the eminent domain law without assuming any of the financial and operational obligations,” said Donald L. Correll, Pennichuck president and chief executive officer. “We are now asking the court to issue a declaratory judgment in our favor that will allow us to protect the rights and interests of our customers, shareholders and employees, and to plan for the future growth of our business.” In its petition, Pennichuck is asking the court to consider the following four counts:
# # # About Pennichuck Corporation Pennichuck Corporation is a holding company located in Nashua, New Hampshire with three wholly owned operating subsidiaries involved in regulated water supply and distribution in Nashua and towns throughout southern and central New Hampshire; non-regulated, water-related services conducted through Pennichuck Water Service Company; and real estate management and development activities conducted through The Southwood Corporation. Pennichuck Corporation is traded on the NASDAQ Stock Market under the symbol “PNNW.” |