UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging growth company
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| Item 7.01 | Regulation FD Disclosure |
The final Order of the Massachusetts Department of Public Utilities (“MDPU”), to which Item 8.01 below refers, is attached as Exhibit 99.1to this Current Report on Form 8-K.
| Item 8.01 | Other Events |
On April 17, 2020 the MDPU issued its final Order (the “Order”) in Docket No. DPU 19-130, the distribution base rate case filed with the DPU on December 17, 2019 by the electric division of Fitchburg Gas and Electric Light Company, Inc. (the “Company”), Unitil Corporation’s electric and natural gas utility subsidiary operating in Massachusetts.
The Order approves a Settlement Agreement (the “Agreement”) between the Company and the Massachusetts Office of Attorney General. The Agreement provides for a distribution increase of $1.1 million, effective November 1, 2020. Under the agreement, the Company will not increase or redesign base distribution rates to become effective prior to November 1, 2023, though the Company may seek cost recovery for certain exogenous events that meet a revenue impact threshold of $0.1 million. The agreement also provides for the implementation of a major storm reserve fund, whereby the Company may recover the costs of restoration of qualifying storm events. In addition, the agreement provides for the extension of the annual capital cost recovery mechanism, modified to allow the recovery of property tax on the cumulative net capital expenditures.
The distribution base rate case is based on the Company’s operating costs and investments in utility plant for a test year ended December 31, 2018 as adjusted for known and measurable changes. The Agreement provides for a return on equity of 9.7 percent and a capital structure reflecting 52.45% equity and 47.55% long-term debt.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
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Exhibit | |||
| 99.1 |
Massachusetts Department of Public Utilities Commission Order dated April 17, 2020 | |||
| 104 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| UNITIL CORPORATION | ||
| By: |
/s/ Laurence M. Brock | |
| Laurence M. Brock | ||
| Senior Vice President, Chief Financial Officer and Treasurer | ||
Date: April 21, 2020