Mark S. Cookson, Alderman-at-Large

The City of Nashua has over the past week held several Public Information Sessions for surrounding communities impacted by Nashua’s actions to purchase Pennichuck — including Litchfield, Merrimack and Salisbury, MA. The local news reporting agencies have picked up a couple of these sessions — the first being in before the Litchfield Board of Selectmen and the second before the Merrimack Town Council last week.

City officials warn: No rate dip soon

While I did not attend this information session it was reported by the Nashua Telegraph that during the first meeting before the Litchfield, NH Board of Selectmen it came out that Nashua officials don’t foresee any great rate decreases in the immediate future once Nashua takes control of the water company, likely next year. But the real cost savings stemming from the $198 million deal won’t be felt until the debt payments come off the books 30 years from now, said John Patenaude, the city’s transaction executive.

“It’s not our intention to increase rates … for another year at least or two years. But it depends on the operating costs of the businesses,” he said. “We can’t make any long-term promises.”

I’ll share with you that there are many factors which go into determining whether this purchase by the City will be in the “Pubic’s Best Interest.” One of the factors which will influence this decision is the rate at which the Municipal Bond is sold…any rate close to, or above, 6.5% will most likely result in a cost too high to be deemed in the “Pubic’s Best Interest.”

Taxation without Representation

However, there was another contentious topic brought forward by Litchfield Selectman George Lambert when he asked about the running of the Water Utility and ensuring they, Litchfield, would be represented. The Board of Directors appointed to govern the utility will be made up of seven to 13 members, Patenaude said with at least five members will be from Nashua, while the rest will come from the surrounding towns.

“That means that while we don’t have direct representation … you guys could raise our rates without us having any more input,” Litchfield Selectman George Lambert asked the Nashua officials. “What was incorporated in your plan to protect the (town) of Litchfield to make sure we don’t bear an unnecessary burden?”

Patenaude assured those at the meeting that Pennichuck’s subsidiary companies, including Pennichuck East, which serves Litchfield, will remain separate entities with governing boards of their own. City officials have no plans to sell off the subsidiaries, and the separate boards can include more representation from the surrounding towns to better keep rates down, Patenaude said.

Hear for myself

Upon reading these concerns earlier in the week; and knowing another Pennichuck Public Information Session was scheduled to be presented before the Merrimack Town Council I decided I would personally like to hear the concerns being expressed by some of the surrounding communities. So, I attended the Merrimack Town Council last Thursday evening, Dec. 16, 2010.

I sat in the back of a full Council Chamber and watched members of the public arrive and take there seats. I watched John Patenaude, the city’s transaction executive, take his place at the front of the Chamber setting up his PowerPoint Presentation; shortly thereafter, Nashua’s Corporation Counsel arrived in Attorney Jaime McNamee; followed by Mayor Donnalee Lozeau. Someone I didn’t expect to see there but who was an active participant pre and post presentation was Pennichuck Executive Donald Ware.

Know your audience!

Now, understand I have seen this exact presentation (video below) presented to Nashua’s Board of Aldermen as reasons why we, the City of Nashua’s Board of Aldermen, should support the bonding legislation for $220M; and ultimately support the City’s efforts to purchase Pennichuck.

My impression of the presentation this evening — not impressed at all. The focus of the presentation was why it was important for Nashua to purchase Pennichuck. NOT once during this presentation did Mr. Patenaude or Mayor Donnalee Lozeau attempt to address the concerns which other communities might have with the City of Nashua’s potential purchase of the water utility. In Merrimack’s case, why would one not address one of Pennichuck’s largest consumers of water in Anheuser-Busch/In-Bev plant on Daniel Webster Highway?

I would have thought, at the very least, that even though Pennichuck Corporation serves fewer than 5% of Merrimack water users, according to town figures, the utility company does serve the Anheuser-Busch/In-Bev plant on Daniel Webster Highway, making the acquisition of vital interest to parts of the Merrimack community, Town Councilors and Nashua officials should have known this would be an important topic to address. Not one mention until it was brought up by a Town Councilman. Huge mistake in my opinion!

I am disappointed the leaders didn’t have the foresight to update this presentation to meet the needs as well as address the concerns of the surrounding communities.

See for yourself…I’ve provided a video of the presentation from the Merrimack Town Council Meeting. Please share your opinion.

Thank you!
Mark Cookson, Alderman-at-Large
City of Nashua