Appeal of the City of Nashua

The City of Nashua (the city) appeals from an order of the public utilities commission allowing Pennichuck Water Works (Pennichuck) to remove from the rate base 1,490 acres of land at historical cost. We affirm.

For over fifty years, Pennichuck has owned a large amount of land in Nashua and elsewhere for the purpose of protecting its watershed. With the advent of the Federal Clean Water Act, and a significant additional demand for its water, Pennichuck decided to build a new treatment plant which would provide additional treatment capacity and a higher level of water quality. This…