Agenda

Deferred Charges and Other Assets

Deferred charges include certain regulatory assets and other assets. Regulatory assets are
amortized over the periods they are recovered through NHPUC-authorized water rates. The
Company’s utility subsidiaries have recorded certain regulatory assets in cases where the
NHPUC has permitted, or is expected to permit, recovery of these costs over future periods.
Currently, the regulatory assets are being amortized over periods ranging from 2 to 25 years.

Unamortized Debt Issuance Costs

Concentration of Credit Risks

Cash and Cash Equivalents

Cash and cash equivalents generally consist of cash, money market funds and other short-
term liquid investments with original maturities of three months or less.

Restricted Cash - RSF

PENNICHUCK CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — Description of Business and Summary of Significant Accounting Policies
Description of Business:

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2017 and 2016
(in thousands)

2017 2016

Financing Activities:

Borrowings (payments) on line of credit, net $ 5,574 $ -

Payments on long-term debt (5,209) (4,227)

Contributions in aid of construction 61 58

Proceeds from long-term borrowings 2,475 4,498

Debt issuance costs (21) (59)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2017 and 2016

(in thousands)

Balance as of
January 1, 2016

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the Year Ended December 31, 2016
(in thousands, except per share data)

Common dividends declared-

$279.91 per share

Net loss

Other comprehensive income (loss):

Unrealized loss on derivatives,

net of taxes of $(11)

Reclassification of net income
realized in net income, net of

taxes of $49

Balance as of

December 31, 2016

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the Year Ended December 31, 2017
(in thousands, except per share data)

Accumulated
Additional Other
Common Stock Paid in Retained Comprehensive
Shares Amount Capital Earnings/(Deficit) Income (Loss) Total

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, 2017 and 2016
(in thousands)

2017 2016

Net Loss $ (6,441) $ (1,240)
Other Comprehensive Income (Loss):

Unrealized gain (loss) on derivatives 3 (28)

Reclassification of net income realized in net income 76 123

Income tax benefit relating to

other comprehensive income (32) (38)

Other Comprehensive Income 47 57
Comprehensive Loss $ (6,394) $ (1,183)

PENNICHUCK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
For the Years Ended December 31, 2017 and 2016
(in thousands)