_ Peaking Generation – GenConn Energy

GenConn Energy LLC, a joint venture between UI and NRG Energy, Inc., was selected to build two new “peaking” generation plants. Peaking generation will help address the need for more power during the heaviest load periods. In June 2008, the Connecticut Department of Public Utility Control (DPUC) awarded GenConn the right to build 200 megawatts of new generation at NRG’s plant in the Devon section of Milford. In October, GenConn was awarded an additional 200 megawatts in Middletown. The plants will be built on a “cost-of-service” basis, meaning the cost to build and operate the plants would be recovered dollar-for-dollar through rates, plus a fixed rate of return to investors. Preparations are already underway at both sites; the Devon plant is scheduled to be in operation in June 2010; Middletown in June 2011.

_ Utilizing Technology to Enhance the Customer Experience

Customer service remained at the forefront during 2008. The combination of rising costs of electricity and difficult economic times focused the Company’s effort to improve and promote the many customer options found at our website, www.uinet.com. Foremost among these was a complete redesign of the home page, incorporating best practices from the energy industry to make the on-line experience for our customers as uncomplicated and enjoyable as possible. Extra attention was paid to the “My Account” portion of the site where customers can enroll for a state-of-the-art customized energy and conservation experience.