|
Current News For
Immediate Release: Contact:
Donald
L. Correll, President and CEO
Public
Utilities Commission Filing Shows Eminent Domain Case Merrimack, NH (NASDAQ: PNNW) - Pennichuck's expert witnesses echo many of the sentiments expressed by Pennichuck Corporation in testimony filed with the New Hampshire Public Utilities Commission (PUC) on January 12, including statements from the former chair of the PUC who characterizes Pennichuck as the state's "premier" water utility and says that an eminent domain taking of the company by the City of Nashua is not in the public's best interest. In addition, Pennichuck's primary valuation expert, a nationally-renowned accredited appraiser valued Pennichuck Water Works at $248,400,000, an amount that is twice what the City of Nashua offered to pay for the company and all of its affiliates two years ago. The City of Nashua is scheduled also to file today the testimony of its expert witness, indicating that expert's valuation of Pennichuck Water Works. "We are pleased to hear experts echo and validate what we have said for years, particularly in terms of the fulfillment of the public's best interest and the damage the company, its customers and the public would sustain as a result of an eminent domain taking. We are not surprised that experts have valued Pennichuck Water Works at nearly a quarter of a billion dollars - it's something we have been saying for years," said Don Correll, CEO of Pennichuck Corporation. The testimony filed at the PUC this week by both Pennichuck and the City of Nashua offered a look into the City's ongoing pursuit of Pennichuck through eminent domain. The filing marks a pivotal point in the case, which has raged on for over three years. With the filing of the parties' valuations and testimony on the issue of public interest, the case now enters an extended period of intensive activity. Mr. Correll noted that both sides will be required to substantially increase their spending in the coming weeks, as they analyze and respond to each other's filings and move toward the next phase of the proceeding. "With the threat of continued spending and with public hearings on this case not scheduled until 2007, I am hopeful City leadership will take this window of opportunity to enter into a meaningful dialogue," said Correll. "We have made clear that we welcome the chance to discuss this situation and work toward a fair and equitable solution. It seems that the time to do that is upon us, given the expert testimony that revalidates Pennichuck's position and its critical role in ensuring the community receives the highest quality water service." Included in Pennichuck's filing was testimony from former PUC Chairman, Douglas L. Patch, who characterized Pennichuck as the state's "premier" water utility and noted a series of negative repercussions not only for the City of Nashua, but for the entire state, should the eminent domain effort succeed. Pennichuck, he noted, is well-known to the PUC as a company that rescues failing water systems and provides quality, clean water to customers. Patch was among 11 witnesses who provided testimony on behalf of Pennichuck in the PUC filing, including a number of nationally recognized experts in utility regulation and valuation. The testimony outlined the negative impact the taking of the utility would have on the approximately 47,000 Pennichuck customers throughout the state and the threats posed by taking the company's assets and turning them over to Nashua so that it can operate a portion of the regional water system now operated by Pennichuck. "The comprehensive and integrated services we provide to our customers would be deeply compromised should the water system be turned over to the City of Nashua," said Correll. "The political pressures under which a municipality operates would obstruct the necessary long-term planning and investment that a water system demands, and the legacy of top-notch customer service provided by Pennichuck for over 150 years. " Validating the $248 million price tag was Robert Reilly, a nationally-renowned appraiser who is certified in over a dozen states, including New Hampshire. Reilly has been published extensively in the field of business valuation and co-authored or co-edited seven textbooks regarding valuing businesses and professional practices. Reilly has provided expert testimony in dozens of proceedings, in state and federal courts as well as in other forums. The valuation team on which Pennichuck relied in its PUC filing also included the highly regarded New Hampshire economist Russ Thibeault, who conducted a valuation of Pennichuck's real estate assets. Also included was testimony from nationally-recognized market researcher R. Kelly Myers of RKM Research and Communications, Inc., based in Portsmouth, NH. Myers has performed surveys of public opinion for many private and public entities, including the New Hampshire Public Utilities Commission. In the filing, Myers testifies that through his series of scientific surveys, his research indicates that Nashua voters oppose acquisition of Pennichuck by eminent domain by an almost 3-1 margin. "Despite our confidence in our position before the PUC, I am hopeful that with the new leadership of the Board of Aldermen and the openness of Mayor Streeter, we can take a 60-day pause on this multi-year battle and work to settle the issue so taxpayers and our company can be spared the additional waste of millions of dollars," said Correll. "Otherwise, both the City and the company will have to continue with this lengthy and costly litigation." Pennichuck Corporation is a holding company located in Merrimack, New Hampshire with three wholly owned operating subsidiaries involved in regulated water supply and distribution throughout southern and central New Hampshire; non-regulated, water-related services conducted through Pennichuck Water Service Company; and real estate investment and development activities conducted through The Southwood Corporation. Pennichuck
Corporation is traded on the NASDAQ Stock Market under the symbol "PNNW."
|