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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Penacuck Water Special Committee Meeting - September 11, 2025

Board of Aldermen Meetings — Thursday, September 11, 2025

BodyNashua, New Hampshire

SessionBoard of Aldermen Meetings

DateThursday, September 11, 2025

StatusFILED

Video Record

0:00 / 50:01

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

3:40

Okay.

3:42

Okay, a meeting of the Penacuck Water Special Committee was held Wednesday, September tenth, twenty twenty-five at seven oh five seven oh sorry, seven oh three PM in the Aldermanic chamber.

3:56

Let's start the meeting by taking a roll call attendance, please.

4:07

Alderman Gobaya is here.

4:08

Alderman Jetty is not here.

4:10

Alderman Moran.

4:12

Alderman Clean.

4:14

I'm here.

4:22

And so that we can make quorum tonight.

4:24

Um Alderman at large, uh Lori Wilshire will be sitting in, so Alderman Wilshire, you are here.

4:32

I'm here.

4:33

And thank you so much for coming um to rescue us today.

4:38

Um in attendance, we have um uh Chief Executive Officer uh John Bovere of Panatuk, um George Torres, and I'm I am so sorry, I'm forgetting your name.

4:52

Chris Chris County Um is also here, and we will be having you come up in a moment um to speak.

5:00

Is there anybody here for public comment?

5:03

Seeing none.

5:04

Communications?

5:06

From John Beauvert, Chief Executive Officer.

5:09

In regard to Penacheck Corporation quarterly report to the sole shareholder from the quarter ended March 31, 2025.

5:17

Next communication from John J.

5:19

Bovard, Chief Executive Officer, Penachuck Corporation quarterly report to the sole shareholder for the quarter ended June 30, 2025.

5:27

Third communication from Office of Corporation Council in regard to our 25-199 authorizing Penachuck Waterworks Incorporated to issue bonds in the amount not to exceed 99 million dollars.

5:41

Thank you.

5:48

Without objection, I will suspend the rules to allow for communication that was received after the agenda was prepared.

5:55

Mr.

5:56

Clerk?

5:56

From the Office of Corporation Council in regard to our 25-209 authorizing Penetrack Corporation and Panachuck Waterworks Incorporated to increase the loan from the State of New Hampshire PFAS remediation grant fund and loan.

6:10

There being no objection, I will accept the communication and place it on file.

6:15

Unfinished business.

6:16

There is none.

6:29

In the motion.

6:30

And I will make a motion to recommend final passage.

6:33

Okay.

6:34

Without objection, I will suspend the rules to allow for an additional resolution that was received.

6:39

Oh sorry, I'm just kind of jumping.

6:40

Yeah, let's do this one first.

6:42

I apologize.

6:42

Gentlemen, would you like to come up and take a seat?

6:49

Let me bring this one up here.

6:50

This is 1990.

7:06

And would you like to talk to this resolution?

7:10

Thank you.

7:10

With uh I'm this is John Bois, I'm the CEO of uh Penacheck Penacheck Waterworks, and with me tonight is is George Torres, our chief financial officer, and Chris County, our chief operating officer.

7:23

Um I am gonna turn this over to George from the standpoint of the the shareholder reports or one of his primary responsibilities and the most knowledge as well as in detailed knowledge that can answer the questions as well as the the other uh items on the agenda tonight, too.

7:40

Kristen is here.

7:41

Chris will be able to speak specifically to the um the increase in the um PFAS remediation loan for our treatment plan upgrade grades, and if there's any other questions, I'm sure all three of us can be able to answer them tonight.

7:55

Okay, thank you.

7:56

Mr.

7:56

Torres.

7:57

So good evening.

7:58

Uh thank you for having us submitted for this committee's review and subsequent approval and acceptance is the quarterly shareholder report through the end of June.

8:10

Uh essentially there are a few main takeaways when you review the report.

8:15

While you do see through the first six months of the year, there is an increase in the revenues overall.

8:22

Uh most of that is really uh uh because of a QCPAC order that was approved for 2023 capital expenditures that Penachuck had proceeded with.

8:34

Um that order was uh late.

8:38

Um should have been uh in the prior 2024 fiscal year, but because of uh the docket schedule on the PUC uh and probably a little bit is of our fault because of the merger and consolidation that was put forth uh through the PUC that was subsequently approved.

8:56

That docket was delayed.

8:58

Uh so we did get an approval of that docket in that order in March of this year.

9:03

Uh so that essentially was the main driver of the increase you're seeing year over year.

9:08

It was about a 4% increase uh in relation to it.

Discussion Breakdown — Share of Meeting

Water And Wastewater Management█████████████████████████████████████████████46%

Debt Service████████████████████20%

Public Works███████████████15%

Public Engagement██████████10%

Procurement Processes██████6%

Procedural███3%

Summary of Proceedings

Penacuck Water Special Committee Meeting - September 11, 2025

The Penacuck Water Special Committee met on September 11, 2025, at 7:03 PM in the Aldermanic Chamber. Committee members present: Alderman Gobaya, Alderman Moran, Alderman Clean, and Alderman Lori Wilshire (sitting in). Alderman Jetty was absent. Also present were CEO John Bovere, CFO George Torres, and COO Chris County. The meeting covered quarterly financial reports, a bond authorization for up to $99 million, an increase in a PFAS remediation loan, and updates on the merger and infrastructure improvements.

Communications

Received and placed on file quarterly shareholder reports from Penachuck Corporation for quarters ending March 31, 2025, and June 30, 2025.
Received communication regarding resolution R-25-199 authorizing bonds up to $99 million.
Received communication regarding resolution R-25-209 increasing the state PFAS remediation loan.

Discussion Items

Quarterly Financial Report (Q2 2025)

CFO George Torres presented the report, noting a 4% revenue increase primarily due to a delayed QCPAC order for 2023 capital expenditures. However, operating expenses increased by over 10%, driven by higher general administrative costs (health benefits) and a significant rise in purification expenses. The latter was attributed to more frequent replacement of granular activated carbon (GAC) filter media due to PFAS regulations—now an annual $2.1 million expense instead of every 5–7 years. This shift from capitalized to operating expense contributed to a pre-tax loss and reduced EBITDA. Cash flow decreased due to the loss and a timing issue with a $1.8 million DES reimbursement received in August 2025.

R-25-199: Bond Authorization Up to $99 Million

The resolution authorizes Penachuck Waterworks Inc. to issue bonds up to $99 million over a five-year capital plan. This covers expected capital projects including the refinancing of approximately $13.5 million in existing COBANC debt assumed from a prior merger. The prior five-year plan was $57.5 million; the increase reflects the larger merged entity (including PEU and Pittsfield) and the refinancing component. CFO Torres explained that refinancing COBANC debt at longer terms (30–35 years vs. 20 years) would generate cash flow savings for ratepayers despite slightly higher interest rates. The $4.5 million cost of issuance includes bond issuance costs, underwriting fees, and potential breakage fees for early retirement of COBANC debt. The resolution was a not-to-exceed amount to avoid future amendments. The committee voted unanimously to recommend final passage.

R-25-209: PFAS Remediation Loan Increase

The resolution increases the loan from the New Hampshire DES PFAS remediation grant and loan fund from $11.45 million to $17.5 million. COO Chris County explained that the project, originally estimated in 2023, received bids well above expectations due to market conditions. Despite value engineering, the scope remained similar. The loan carries 1% interest during construction and about 3.5% post-completion, with low issuance costs. The committee voted unanimously to recommend final passage.

General Discussion: Merger Update and Infrastructure

CEO John Bovere reported ongoing integration efforts, with no immediate ratepayer savings yet realized but future benefits expected from lower capital costs and reduced rate case frequency. CFO Torres noted that the April 2025 bond issuance already provided lower rates for PEU capital compared to COBANC rates. Alderman Wilshire praised the recent water pressure improvement project on Webster Street and noted better water quality (less brown water) although some sediment remains. The committee discussed that further infrastructure investment is needed.

Key Outcomes

Resolution R-25-199 (bond authorization up to $99 million) recommended for final passage by unanimous vote.
Resolution R-25-209 (PFAS loan increase to $17.5 million) recommended for final passage by unanimous vote.
The quarterly reports were accepted and placed on file.
The meeting adjourned at 7:49 PM.

Note: The meeting was originally scheduled for September 10, 2025 per transcript, but the instruction requires using September 11, 2025 as the date.

Meeting Transcript

Okay. Okay, a meeting of the Penacuck Water Special Committee was held Wednesday, September tenth, twenty twenty-five at seven oh five seven oh sorry, seven oh three PM in the Aldermanic chamber. Let's start the meeting by taking a roll call attendance, please. Alderman Gobaya is here. Alderman Jetty is not here. Alderman Moran. Alderman Clean. I'm here. And so that we can make quorum tonight. Um Alderman at large, uh Lori Wilshire will be sitting in, so Alderman Wilshire, you are here. I'm here. And thank you so much for coming um to rescue us today. Um in attendance, we have um uh Chief Executive Officer uh John Bovere of Panatuk, um George Torres, and I'm I am so sorry, I'm forgetting your name. Chris Chris County Um is also here, and we will be having you come up in a moment um to speak. Is there anybody here for public comment? Seeing none. Communications? From John Beauvert, Chief Executive Officer. In regard to Penacheck Corporation quarterly report to the sole shareholder from the quarter ended March 31, 2025. Next communication from John J. Bovard, Chief Executive Officer, Penachuck Corporation quarterly report to the sole shareholder for the quarter ended June 30, 2025. Third communication from Office of Corporation Council in regard to our 25-199 authorizing Penachuck Waterworks Incorporated to issue bonds in the amount not to exceed 99 million dollars. Thank you. Without objection, I will suspend the rules to allow for communication that was received after the agenda was prepared. Mr. Clerk? From the Office of Corporation Council in regard to our 25-209 authorizing Penetrack Corporation and Panachuck Waterworks Incorporated to increase the loan from the State of New Hampshire PFAS remediation grant fund and loan. There being no objection, I will accept the communication and place it on file. Unfinished business. There is none. In the motion. And I will make a motion to recommend final passage. Okay. Without objection, I will suspend the rules to allow for an additional resolution that was received. Oh sorry, I'm just kind of jumping. Yeah, let's do this one first. I apologize. Gentlemen, would you like to come up and take a seat? Let me bring this one up here. This is 1990. And would you like to talk to this resolution? Thank you. With uh I'm this is John Bois, I'm the CEO of uh Penacheck Penacheck Waterworks, and with me tonight is is George Torres, our chief financial officer, and Chris County, our chief operating officer. Um I am gonna turn this over to George from the standpoint of the the shareholder reports or one of his primary responsibilities and the most knowledge as well as in detailed knowledge that can answer the questions as well as the the other uh items on the agenda tonight, too. Kristen is here. Chris will be able to speak specifically to the um the increase in the um PFAS remediation loan for our treatment plan upgrade grades, and if there's any other questions, I'm sure all three of us can be able to answer them tonight. Okay, thank you. Mr. Torres. So good evening.

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