utility earnings waned from the previous year, our other businesses nearly offset this dip. So, while the economy had an impact, it was held in check by the nature of our utility business, which brings in fairly stable kilowatt-hour sales. The coming year’s economic predictions are ambiguous and we’ll be watching carefully. With Xcelecom, for instance, we’ll be watching how orders come in during the first part of the year to help us shape our expectations. The market for acquiring additional companies remains robust, so if there’s an opportunity to add value, we won’t miss it. APS’s market — the lower 15% of income earners — could very well expand if the economy continues to stress this population.

Can you summarize the business philosophy and approach that UIL will take throughout 2002?

We’re here to meet the needs of our customers and our communities in a very responsible fashion.

We will continue to do it through a well-trained and engaged work force. We’ll strive to be the best provider of service to our customers, and we’ll strive to deliver the highest return to those who have invested in us. Our company and subsidiaries will continue to focus on how we do our work, on changes in the markets we serve and on understanding our customers. We will work to help shape policy that affects UIL and its customers. Our dividend will continue to be supported by cash flow coming out of our utility, while a greater portion of future earnings will flow out of our growing non-utility holdings. All of these factors are constants, no matter where the economy is going. They are the bedrock of next year’s numbers.

Did the 2001 economy affect UIL’s earnings? What impact do you foresee in the year ahead?

We started out the year being more optimistic about financial market conditions than was justified in the end. That caused us to revise our earnings estimate in mid-year, which we beat. Last year, our dividend yield remained consistent, nearly level with the prior year’s. Though our