MERRIMACK, N.H., June 13, 2007 (PRIME NEWSWIRE) -- Pennichuck Corporation ("Pennichuck") today announced that both the House and Senate branches of the State of New Hampshire Legislature have approved Senate Bill 206, as amended ("SB206"). As more fully described below, Pennichuck and the City of Nashua ("Nashua") are engaged in confidential discussions regarding a possible comprehensive settlement of their eminent domain dispute which began in 2002. Pennichuck and Nashua are actively supporting SB206 which, if signed into law by the Governor, will provide statutory authority for Nashua, subject to Pennichuck's agreement and certain other conditions, to purchase and hold the stock of Pennichuck or one or more of its subsidiaries.
As previously announced, without passage of this statutory amendment, it is unlikely that the parties will be able to craft a mutually acceptable settlement. Additionally, however, a comprehensive settlement would require the negotiation of many complex issues and, therefore, even if SB206 is enacted into law, there can be no assurance that Nashua and Pennichuck will ultimately be able to reach a settlement agreement. Moreover, in addition to the approval of two-thirds of Nashua's Board of Aldermen, a definitive settlement agreement between the parties would likely also be subject to approval by the New Hampshire Public Utilities Commission ("NHPUC") and, depending on the terms of the settlement, Pennichuck shareholders.
As announced in mid-May, Pennichuck and Nashua have agreed to a 61-day extension, to July 16, 2007, of their initial agreement to postpone the eminent domain proceedings pending before the NHPUC. In the proceedings before the NHPUC, Nashua is seeking NHPUC approval to acquire by eminent domain all or a significant portion of the assets of Pennichuck Water Works, Inc., Pennichuck's principal subsidiary. Pennichuck Water provides potable water for domestic, industrial, commercial and fire protection service to customers in Nashua and other southern New Hampshire communities. The 61-day extension was approved by the NHPUC.
Pennichuck has no plans to comment further on the status or substance of the settlement discussions until either a definitive agreement is entered into or the postponement of the eminent domain proceedings terminates.
Pennichuck Corporation is a holding company involved principally in the supply and distribution of potable water in southern and central New Hampshire through its three regulated water utilities. Its non-regulated, water-related activities include operations and maintenance contracts with municipalities and private entities in New Hampshire and Massachusetts. The Company's real estate operations are involved in the ownership, management and development of real estate in the greater Nashua, New Hampshire areas.
Pennichuck Corporation's common stock trades on the NASDAQ Stock Exchange under the symbol "PNNW". The Company's website is at www.pennichuck.com.
This news release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Pennichuck Corporation. Forward-looking statements are based on current information and expectations available to management at the time the statements are made, and are subject to various factors, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, timing and results of eminent domain proceedings before the NHPUC, and the impact thereof on consolidated business operations; timing and amount of regulated water utility rate relief; changes in general economic conditions, legislation or regulation and accounting factors affecting Pennichuck Corporation's financial condition and results of operations; and, the impact of weather. Investors are encouraged to access Pennichuck Corporation's annual and quarterly periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Pennichuck Corporation, including a more detailed discussion of these and other risks and uncertainties that could affect Pennichuck Corporation's forward-looking statements.
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