Richard J. Nicholas

Executive Vice President
and Chief Financial Officer, UIL/UI

Conservation

Our energy efficiency programs achieve an average of 650,000 lifetime megawatt-hour (MWh) reduction each year, approximately 1% per year of permanent peak demand reduction. We have exceptional load management and demand response programs in place to encourage energy efficiency across all customer classes. More than 5% of our system peak load participates in our demand response programs and we have demand response contracts with two of the nation’s largest retail providers located throughout New England. These conservation-oriented programs are helping our customers, our community and UIL shareowners feel confident in UIL’s leadership.

Recognition

The United Illuminating Company was honored at Autovation 2007: The AMRA International Symposium on October 1, 2007, in Reno, Nevada. UI’s entry into the Utility Planning Network 2007 Metering Awards Program was chosen as the winner of the Revenue Assurance Initiative category. Entries into the program came from utilities in Europe, South America, Australia, the United States and Canada. The award recognizes UI’s achievements in using advanced technologies, customer service training, consumer education and media outreach to maximize metering efficiency and improve customer care.

generation avenues allowed by the 2007 state legislation. We will also work closely with the legislature and the DPUC to open options presently closed to the company.

Our philosophy of doing what is in the best interest of our customers was reflected in our 2007 earning results. After eliminating the one-time income and expense items from 2006 and 2007 net income, earnings per share from continuing operations increased 9.4% to $1.87 per share from $1.71 in 2006. This achievement is a result of our strategy to focus on utility activities and divest our non-utility operations. The 10-year capital and construction plan our people recently developed reflects our philosophy as well. They created needed solutions to maintain the outstanding reliability of our transmission and distribution system and yet meet the increased demands placed on our system by our customers. We have planned these upgrades in the most cost-effective manner in order not to overly burden our customers.