UIL has adapted well to change in the energy industry. What are the biggest changes that the company as a whole will be up against in 2002?

With UI, our utility, public policy decisions need to be made in Connecticut and the Northeast to ensure adequate infrastructure is in place to meet growing energy demands. That will involve the construction of new transmission lines, facilities and investments — projects we support — that can support growth of the interconnected wholesale market. And the critical decisions must be made in 2002 or 2003 to ensure the benefits of reliable, low-cost energy to this region.

In response to an order by Connecticut’s Department of Public Utility Control, UI filed for a complete review of its rates by the department in late 2001. While we cannot predict the outcome of the rate case, we strongly support a rate plan similar to the one currently in place.

During 2001, Xcelecom far outpaced its performance in 2000, with an income growth rate of 287% over the previous year. It faces changes spelled out in our business plan, involving careful acquisitions that will allow us to grow beyond Xcelecom’s current service area, now stretching from North Carolina to Boston. We may or may not have some macroeconomic issues that impinge upon our plans this year, but we intend to pursue our plans and continue to build our base.

APS’s customer base is still the lower 15% of the economic strata, people who are living in a cash society and who need our services for that reason. We’re rolling out some new services this year — a prepaid debit card and prepaid telephone pins, for example — and fully expect them to be well received. They are more technologically advanced ways to move funds, making life easier for people without credit cards or a bank account. The main question is whether our customer base grows significantly this year in light of the economy. If it does, we’re ready for it.