NASHUA – It’s been 11 months since the city purchased Pennichuck Corp. and its subsidiaries, but the Board of Aldermen still is treading carefully when it comes to how it should address questions with the water utility’s leadership.
On Tuesday, a motion to call a meeting with Pennichuck’s Board of Directors failed, 5-9, after Ward 4 Alderman Art Craffey sent city officials a letter questioning the company’s plans to seek increased charges to support infrastructure upgrades.
Instead, aldermen agreed to wait for a response from Pennichuck’s board, after Lozeau said that she had forwarded Craffey’s letter to Pennichuck Chairman Jay Leonard.
The Pennichuck board will take up Craffey’s communication at their next meeting, scheduled next Friday, she said.
Before that decision, aldermen debated back and forth about the aldermen’s relationship with Pennichuck leadership, in light of the city’s position as the company’s sole shareholder -- it paid $29 a share for Pennichuck stock when it bought the company Jan. 25, buying about 4.7 million shares totaling $137.8 million.
The city made history with the $152 million takeover of the private water utility, which covers communities as far north as North Conway.
The utility remains private and independent from the city in certain respects.
“I have a problem with making this request,” Alderman-at-Large Lori Wilshire said. “When we set forth to buy a water company, it was that this board was not to be running the water company and the first time something happens, we’re requesting to bring them in here and do just that.”
Craffey crafted his letter in light of news that Pennichuck will be filing a Water Infrastructure and Conservation Adjustment request for unspecified infrastructure improvements in 2013.
The WICA process, which is fairly new to New Hampshire, allows water companies to seek quick approval to pay for specific repairs rather than waiting for annual rate-setting hearings before the state’s Public Utilities Commission.![]()
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