Three years from now, we expect Xcelecom will be a significant player in both electrical contracting and network systems integration. Since 85% of Xcelecom’s work force is employed on an as-needed basis, we don’t expect losses, even in a prolonged economic downturn.

The vitality and vigilance to get it done. If I had to credit a single reason for UIL’s solid performance, it would be our vital, energetic management team. They are serious planners and serious learners, empowered to fulfill the expectations of our shareowners and customers alike. Each of them embraces a strategy of rigorous business planning, understanding our business proposition and engaging the right people to get it done.

You’ll see their faces in the pages of this report as well as their ideas about connecting with customers. They understand that knowing the customer’s needs, knowing the regulatory agencies and suppliers, and knowing how to achieve efficiencies will always be at the root of our success.

“People, plans, performance” is still our imperative for top performance in all of our businesses. We will remain vigilant regarding changes in the economy and where they may take our business. Just as important, we will do nothing to place our dividend at risk and will continue to be disciplined investors. As a result, we are a sound investment for difficult-to-predict financial times.

We continue to appreciate your trust and loyalty and will repay it by remaining committed to our principles, our plans and our customers — all that has contributed to our performance and reliability in the past.

Nathaniel D. Woodson,
Chairman, President and Chief Executive Officer