UNITIL CORPORATION (NYSE:UTL) Files An 8-K Regulation FD DisclosureItem 7.01
The final Order of the Maine Public Utilities Commission (“MPUC”), to which Item 7.01 below refers, is attached as Exhibit 99.1 to this Current Report on Form 8-K.
On February28, 2018 the MPUC issued its final Order (the “Order”) in Docket No.2017-00065, the distribution base rate case filed in May 2017 by the Maine division of Northern Utilities, Inc. (the “Company”), Unitil Corporation’s natural gas utility subsidiary operating in Maine and New Hampshire. The Order would have resulted in a revenue increase of $2,072,647, prior to incorporating the effect of a lower federal income tax rate under the Tax Cuts and Jobs Act of 2017. Incorporating the effect of the lower tax rate resulted in a revenue decrease of $87,243. The Order also provides for a reduction in annual depreciation expense reducing the Company’s annual operating costs by approximately $500,000. The Order addresses a number of other issues including a change to therm billing, increases in other delivery charges, and cost recovery under the Company’s Targeted Area Buildout program in Saco, Maine (“Saco TAB”) and Targeted Infrastructure Replacement Adjustment (“TIRA”) program. The new rates and other changes are effective as of March1, 2018.
The distribution base rate case is based on the Company’s operating costs and investments in utility plant for a test year ended December31, 2016 as adjusted for known and measurable changes. The MPUC approved a return on equity of 9.5percent and a capital structure reflecting 50percent equity and 50percent long-term debt. Additionally, the MPUC approved the inclusion of Saco TAB investments in rate base along with a cost recovery incentive mechanism. The MPUC also approved adjustments to and an extension of the Company’s TIRA for an additional eight-year period to provide for annual revenue increases associated with specified targeted operational and safety-related infrastructure replacement and upgrade projects.
|Item 7.01||Financial Statements and Exhibits|
UNITIL CORP ExhibitEX-99.1 2 d547378dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 REDACTED STATE OF MAINE Docket No. 2017-00065 PUBLIC UTILITIES COMMISSION February 28,…To view the full exhibit click
About UNITIL CORPORATION (NYSE:UTL)
Unitil Corporation (Unitil) is a public utility holding company. The Company is engaged in the local distribution of electricity and natural gas to customers throughout its service territories in the states of New Hampshire, Massachusetts and Maine. It operates through three segments: utility gas operations, utility electric operations and non-regulated. The Company is a parent company of three distribution utilities: Unitil Energy Systems, Inc. (Unitil Energy), which provides electric service in the southeastern seacoast and state capital regions of New Hampshire, including the capital city of Concord; Fitchburg Gas and Electric Light Company (Fitchburg), which provides both electric and natural gas service in the greater Fitchburg area of north central Massachusetts, and Northern Utilities, Inc. (Northern Utilities), which provides natural gas service in southeastern New Hampshire and portions of southern and central Maine, including the city of Portland, in northern New England. UNITIL CORPORATION (NYSE:UTL) Recent Trading Information
UNITIL CORPORATION (NYSE:UTL) closed its last trading session down -0.06 at 42.80 with shares trading hands.