Dear Retirees,2011 is shaping up to be amomentous year for UILHoldings Corporation. Changeis sweeping across every cornerof the corporation — not only at UI, but also the three naturalgas distribution companies we welcomed to the UILfamily last year: Berkshire GasCompany, Connecticut NaturalGas Corporation and SouthernConnecticut Gas Company. We are now deeply involved in theprocess of integrating those companiesunder the UIL banner, and wehave organized the top level of ourorganization to reflect this.
remains president andchief executive officer of UIL Holdings,now the parent of all four operating companies.
Anthony J. Vallillo
is now executive vice president and chief operating officer at UIL Holdings,overseeing gas and electric operations.Step by step, we are coming closer toour goal of operating as one company. We are scrutinizing all areas of allof our operations to find ways wecan work together effectively andefficiently. We expect to complete theimplementation of these integrationinitiatives this year.In the midst of this we have beenhard at work providing our customers with premier quality utility servicesand creating value for all of ourstakeholders.
UIL reported strong financialperformance for 2010. Consolidatednet income, excluding acquisitionand transition-related activities,increased by 13 percent, compared tothe previous year. We closed on theacquisition of three gas companies within six months of announcement,launched a new and innovativetransmission venture, and GenConnEnergy’s Devon plant was completedand became operational in 2010.
UIL reported solid earnings in thefirst quarter of 2011. Consolidated netincome was $52.0 million, compared with net income of $16.1 millionin the same period in 2010. Theseresults included $37.4 million fromthe recently acquired gas companiesand the impacts from the acquisition.The first quarter 2011 was the firstfull quarter of earnings from thegas businesses, GenConn Energy’sDevon plant was fully operationaland there were higher earnings fromtransmission due to a higher rate base.
Work continues on UI’s futureCentral Facility in Orange, Conn.Despite the harsh winter, construction work is on schedule for completing the office building in March 2012 andthe operations center the following June. Move planning for employees isalready under way, and the completedbuildings are expected to meet a highstandard for environmental design.UI is consolidating its seven existing work locations to gain efficiencies andreduce long-term costs.
We are also continuing in last year’s successful effort to reach outto customers through community meetings. This year, in addition tomeetings in UI’s service territory, we are also holding meetings forcustomers of the three UIL gascompanies — Berkshire, CNG andSCG — to engage them about theutility services our companiesprovide. We’re very excited about 2011, as webegin to reap the rewards from theopportunities we created in 2010. Wehave great confidence in the skills andtalents of the people who will bring this vision about: the diverse anddedicated employees at UIL and itsgas and electric operating companies, working together with common valuesand a deep commitment to safety andcustomer service. Together, we willmake 2011 a truly great year!
James P. Torgerson
UIL President and Chief ExecutiveOfficer
Anthony J. Vallillo
UIL Executive Vice President and Chief Operating Officer
A Letter from Executive Leadership
James P. TorgersonAnthony J. Vallillo