Xcelecom
Xcelecom’s net income exceeded $6M, almost three times higher than in 2000.
Five new companies were acquired by Xcelecom in 2001, raising the total number of employees to 1700+ and the total number of companies under the Xcelecom umbrella to 12, with assets totaling $180M.

Xcelecom successfully completed work on the Mohegan Sun casino addition, the largest project in the company’s history, at a cost of $100M.

The company now operates in every major market from Boston to North Carolina, with 16 locations, successfully fulfilling the initial strategic geographic objective.

The United Illuminating Company (UI)
During 2001, UI continued to reorganize in response to state-mandated electric industry restructuring, and implemented a business model to spur continuous improvement in work processes. To lead the company into this new era, UI selected nine Process Executives (two of whom are new to the company) committed to delivering customer and shareowner value.

The utility reached a milestone of 265,000 meters billed through our new automatic meter reading system, to be completed in 2002.

Through the Conservation and Load Management Fund created by Connecticut’s General Assembly, UI provided conservation services to 38,678 customers. An estimated 78 million kWh of energy and $8M in electricity costs were saved by participating residents and businesses, which had a positive environmental impact.

To support economic development and enhance reliability for our customers, UI completed the relocation of a major substation at the former Steel Point site in Bridgeport.

American Payment Systems (APS)
In May 2001, APS acquired a majority position in CellCards of Illinois, a business offering prepaid cellular, local and long-distance calling cards and related products and services. The products will be offered through APS’s entire 10,000 retail relationships. Prior to acquisition, CellCards grossed $14M in sales during its first year in business.

APS began the process of launching its prepaid MasterCard product, Access by QuickPay!, which is now being sold and serviced in 2002. The Access card will serve a growing need for customers outside of the traditional banking system.

To enhance its management team, APS made two strategic hires. Ron Urquhart, President of APS Cards Services, Inc., a wholly owned subsidiary of APS, offers essential depth of experience as APS ventures into the prepaid credit card business. Paul LaVoie, Vice President of Sales and Marketing, has provided the focus, direction and energy behind a 56% sales growth in 2001.

UIL Holdings Corporation
UIL maintained a strong, consistent dividend yield of 5.7% throughout 2001.

For the first time, UIL revenue exceeds $1 billion.

UIL Holdings held its first annual shareholder meeting in May.

UIL completed a $75 million note financing.

UIL continued to direct the growth and success of its non-utility businesses by investing cash generated from utility operations.