|
Current News For
Immediate Release: Contact:
Donald
L. Correll, President and CEO, or Hannah McCarthy, Interim CEO
PUC
STAFF: NASHUA'S PLAN TO TAKE PENNICHUCK - NOT IN THE PUBLIC INTEREST
The expert staff testimony by itself does not bring the case to a close, but it is a serious blow to the City of Nashua's efforts to takeover the utility. Although the full Commission has yet to rule on Nashua's proposal, recommendations of the PUC's staff are weighed heavily by the Commission. The PUC staff's testimony in this case confirms many of Pennichuck's arguments regarding the significant deficiencies in the City's case. The staff's testimony was unequivocal in stating that the proposed taking of Pennichuck is not in the public interest. "After consideration of all of this evidence, Staff does not believe the proposed taking is in the public interest," stated the testimony. A determination of public interest is the critical first step in the case before the PUC. If the PUC Commissioners accept their staff's recommendations that a taking of Pennichuck is not in the public interest, the Commission would not need to ever reach the issue of what price Nashua would be required to pay for the utility. "Given that the PUC staff testimony completely undermines the city's argument, it would be indefensible for the city to continue to pursue the eminent domain battle," said Donald L. Correll, the outgoing President and Chief Executive Officer of Pennichuck Corporation. "Continued pursuit of eminent domain in the face of an adverse recommendation from the PUC staff would be an irresponsible use of taxpayer money and a breach of the public trust." The Mayor has budgeted another $850,000 for the next fiscal year for additional costs of the attempted takeover. This installment, combined with funds spent or committed so far, pushes the total city cost to nearly $4 million. "It is quite likely that this budgeted amount significantly understates the true expense to the city," said Hannah McCarthy, interim CEO of Pennichuck. "Over the course of the next several months, the litigation schedule at the PUC will require a flurry of activity, including additional data requests, depositions and more written testimony from all parties. This continued level of intense activity will cause the city to incur significant additional legal and consulting fees, pushing even higher the costs shouldered by Nashua taxpayers." According to Ms. McCarthy, Pennichuck has sustained significant expense and financial damages in this multi-year saga. If the city chooses to continue its efforts to take Pennichuck, the potential damages it could be compelled to pay, including in particular Pennichuck's costs incurred in defending itself at the PUC, would be likely to increase. The staff testimony filed with the PUC is not only consistent with what the company has been saying for years, but is also consistent with what the vast majority of Nashua residents and area communities have been saying as well. The towns of Merrimack and Milford have each filed testimony with the PUC detailing their strong opposition to Nashua's attempt to take over Pennichuck, particularly due to the harm which the taking would cause to their residents, water customers and businesses. The PUC staff
testimony supported Pennichuck's position that the city's plan is inefficient
and flawed, particularly when compared to the customer service provided
by Pennichuck. As stated by the PUC staff, "Based on Staff's experience
with water utilities, Staff sees the absence of effective internal oversight
by Nashua, and more particularly the delegation of both operations and
oversight to contractors, as not creating an effective ownership and management
approach for a major business." Ms. McCarthy said Pennichuck has complete confidence in its case before the PUC and is prepared to defend itself for as long as it takes and at whatever cost. "We are committed to ensuring that our customers, employees and shareholders' interests are protected," she said. 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." |