Common use of Relevant Background Clause in Contracts

Relevant Background. A. Acquisition and Ownership by the City of Nashua. 1. PWW is a regulated public utility that is wholly-owned by Penn Corp, which is, in turn, a corporation that is wholly-owned by the City of Nashua, New Hampshire (the “City”). The City acquired its ownership of Penn Corp on January 25, 2012, pursuant to the Acquisition Order. In addition to PWW, Penn Corp also owns two other water utilities: Pennichuck East Utility, Inc. (PEU) and Pittsfield Aqueduct Company, Inc. (PAC). 2. The Acquisition Order approved a settlement agreement among the parties to DW 11-026 (the “DW 11-026 Settlement Agreement”), subject to certain conditions. Among other things, the settling parties to the DW 11-026 Settlement Agreement recommended that the Commission approve the City’s acquisition of Penn Corp, approve a modified ratemaking structure for Penn Corp’s three water utilities (including PWW), approve the establishment of a $5,000,000 Rate Stabilization Fund (“RSF”) to be maintained by PWW, and approve certain accounting matters and limitations on dividends and distributions from the three utilities to Penn Corp. These special provisions were instituted in order to allow the three utilities to have “rates at levels that are sufficient to enable each utility to meet their operating requirements and to satisfy each utility’s apportioned share of responsibility to pay the debt service arising from the City Acquisition Bonds.”2 (See DW 11-026 Settlement Agreement at 8.)3

Relevant Background. A. Acquisition and Ownership by the City of Nashua. 1. PWW is a regulated public utility that is wholly-owned by Penn Corp, which is, in turn, a corporation that is wholly-owned by the City of Nashua, New Hampshire (the “City”). The City acquired its ownership of Penn Corp on January 25, 2012, pursuant to the Acquisition Order. In addition to PWW, Penn Corp also owns two other water utilities: Pennichuck East Utility, Inc. (PEU) and Pittsfield Aqueduct Company, Inc. (PAC). 2. The Acquisition Order approved a settlement agreement among the parties a to DW 11-026 (the “DW 11-026 Settlement Agreement”), subject to certain conditions. Among other things, the settling parties to the DW 11-026 Settlement Agreement recommended that the Commission approve the City’s acquisition of Penn Corp, approve a modified ratemaking structure for Penn Corp’s three water utilities (including PWW), approve the establishment of a $5,000,000 Rate Stabilization Fund (“RSF”) to be maintained by PWW, and approve certain accounting matters and limitations on dividends and distributions from the three utilities to Penn Corp. These special provisions were instituted in order to allow the three utilities to have “rates at levels that are sufficient to enable each utility to meet their operating requirements and to satisfy each utility’s apportioned share of responsibility to pay the debt service arising from the City Acquisition Bonds.”2 (See DW 11-026 Settlement Agreement at 8.)3