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January 27. 2013 9:28PM

Gate City Musings: Where are Pennichuck savings?

Gate City Musings, a column on City Hall happenings and other Nashua items, is published every other Monday. It is written by a veteran political observer whose identity is known to the editors but who wishes to remain anonymous, and breathing.

MUSINGS USUALLY doesn't like to dwell on the same subject in the same month but it is very apparent the Pennichuck Water Co. versus its ratepayers saga here in the Gate City continues.

No matter what Pennichuck officials say, city residents and the New Hampshire Public Utilities Commission were told many, many times by our city leaders that our water rates would be lowered if the city owned the utility.

So the good people of Nashua, in a special election by a 3-1 margin, voted to let our mayor and board of aldermen know that they wanted the city to purchase Pennichuck. Why? Because under city ownership our water rates would be lower.

Now, less than a year after our aldermen voted and the mayor signed into law a $250 million bond issue to cover the purchase costs, Pennichuck's board of directors, including our mayor as a company, director, now want to increase rates.

But . isn't Pennichuck now a nonprofit company? It doesn't have to pay dividends to shareholders and the company's executives no longer have annual salaries up to a half-million dollars. And folks, get this ... our water rates would not increase but be lowered when all of this took place.

A "tip of the hat" to Ward 4 Alderman Arthur Craffey, who reminded the mayor and aldermanic board that the potential rate increase being proposed needs to be looked at very carefully, since it was common knowledge during the Pennichuck acquisition process that water rates would not be increased but be lowered because of significant decreases in operating costs.

While Pennichuck officials say their proposed water rate increase is not new and will not be automatic, it certainly was "unanticipated" and they say it is "wise strategy."

We should all sleep more comfortably knowing that Pennichuck officials are reviewing the company's communication process between them and city officials (what about the general public directors? Now they say they have formed a committee to address the issue.

All Musings has to say at this point is: "Wonderful and good luck to the Red Sox."

On to other matters, Musings has learned that several of the more liberal big spenders on the aldermanic board, including two at-large aldermen as well as those who represent Wards 1, 2, 3, 5, 6 and 8, will have serious competition.

As one wise "Main Street Martha's regular" said at lunch last week, "a new broom is needed during this fall's city election."

"We need more aldermen such as Ward 9's said Dan Moriarty," this wag said.

Nuff said!

Also overheard at Martha's . our next mayoral election could likely find Jim Donchess and Dave Deane facing Mayor Donnalee Lozeau. "Eight years is enough," "Time for a change," "We need a fiscal conservative," and "Let's do more for our teachers" will be various battle cries.

While the mayor would be considered the odds-on favorite, a run-off election between her and Deane would provide some excitement in that those voters who have tired of tax increases, excess bonding and the Pennichuck mess would have a definite place to turn.

Building a combined Public Works facility adjacent to the city dump (excuse me, the city landfill) ultimately will cost taxpayers more than $15 million in bonds. According to the mayor, in the next few years, or even the next decade or, the city hopes to use the land for consolidating four public works facilities on the site.

Board of Public Works Commissioner Tracy Pappas noted that the city wanted to acquire Pennichuck because the city did not think the company was a good steward of the watershed. "The use of Pennichuck bond proceeds to acquire land near the landfill might seem objectionable to some people," she noted.

Alderman-at-large and potential future mayor Donchess voted in favor of indefinitely postponing it. He said the city should use the $650,000 to meet greater infrastructure and educational needs in Nashua.

Alderman-at-large Mark Cookson, one of the board's strong fiscal conservatives, questioned why the city would consider moving its city's street garages to West Hollis Street to make way for a second sheet of ice at Conway Ice Arena. Musings notes that the Conway Arena is a private facility on public land, so expanding it at the expense of $15 million or so has many Nashuans scratching their heads in amazement.

Remember ... if you have a subject, complaint or praise about what our city officials are up to or you have a suggestion for "kudos," email them to gatecitymusings@yahoo.com. Musings would love to hear from you.