UI currently represents two-thirds of our business and remains the biggest cash-producer for UIL. Deregulation has meant reduced earnings, but it has also meant that we have successfully managed any exposures on the utility side of our business.

Conduits and connections to a wider business universe. Two primary businesses under UIL’s United Resources, Inc. umbrella are delivering services to a rapidly increasing customer base — and our shareowners are beginning to reap the benefits of our investment in their expansion and development.

APS, with 10,000 retail relationships across the country, is now the nation’s largest provider of walk-in payment services to people who pay their bills in person rather than through the postal service or Internet. Operating in 45 states, APS experienced 56% sales growth last year alone, with another strong sales year predicted in 2002.

Many strategic decisions were made at APS last year that should greatly enhance our position. A contract on the East Coast with Verizon is expected to add significant volume in the years ahead. We acquired a majority interest in CellCards of Illinois, a provider of prepaid cellular and long-distance cards, and we entered into a joint marketing agreement with Billmatrix, an emerging name in payments by phone. This year, APS has already begun selling a prepaid MasterCard (Access by Quickpay!) and has acquired the walk-in bill payment business of Merchants Express Money Order Company (MEMO), one of the largest money order providers in the U.S.

There’s every reason to expect that APS will become a dominant player in a profitable niche. It has already become a valuable conduit for people outside of the banking system who wish to pay their bills efficiently.

Xcelecom, our other major service company, has more than doubled its size to over $300 million dollars per year since 2000 and is already proving its worth on our balance sheet. Once a marginal contributor to our earnings, it brought in $6 million for us last year, triple its 2000 level. From North Carolina to Massachusetts, Xcelecom is a known quantity — a leading provider of tailored electrical and voice-data-video design, cellular communication antennae, telecom and computer infrastructure construction, systems integration and related services.

The 12 acquired companies that now comprise Xcelecom were added in a disciplined fashion. They must serve industrial/commercial markets and have a great local reputation and strong customer list. They have been profitable in the past and still are as Xcelecom assets. Future acquisitions must first pass the same litmus tests.