01-02-2008 - IRP Outlines Course for Connecticut's Energy Future

CONTACT: David Radanovich, CL&P
Office: (860) 665-3384
After Hours: (203) 499-2812

Anita Steeves, UI
Office: (203) 499-2901
After Hours: (800) 286-2000

IRP Outlines Course for Connecticut’s Energy Future

CL&P, UI Pledge Continuing Supportive Role in Further Development and
Implementing Recommendations

HARTFORD, Connecticut – Jan. 2, 2008 (NYSE: NU and UIL) – For the first time since
the 1998 Electric Restructuring Act was passed into law, The Connecticut Light and
Power Company (CL&P) and The United Illuminating Company (UI) submitted an
annual Integrated Resource Plan (IRP) for the state. The plan was delivered today to the
Connecticut Energy Advisory Board (CEAB).

“This plan will help regulators and elected officials make informed decisions to address
the major challenges in Connecticut’s energy future,” said CL&P President Ray Necci.

“We are pleased that the legislature recognized the need for the study and thank them for
reinstating this important process. Our companies are committed to working with our
regulators and policy makers to act on the recommendations to build a more stable,
environmentally sound energy future for our customers.”

“Connecticut’s policy makers, utilities, businesses and residents must act together in a
coordinated effort to address current and future energy issues. This plan provides
meaningful direction to the process of providing Connecticut with safe, affordable and
reliable electricity,” said UI President Anthony J. Vallillo.

The study highlighted several energy challenges including:

•  Likely growth in peak demand
•  Heavy dependence on high cost natural gas-fired generation
•  Meeting future standards for both renewable energy and emissions
•  Identifying means of procuring energy that minimizes both volatility and
   lowers costs for consumers when energy prices are high
•  Mitigating periods of high energy prices and volatility by continuing to
   explore cost-of-service generation options.

Key recommendations of the report include:

• Maximize the use of demand side management (DSM) to reduce peak load,
  energy consumption and emissions.
• Explore other power procurement structures such as longer term power
  contracts on a cost-of-service basis with merchant and utility ownership of
  generation.
• Evaluate the structure and costs of Connecticut’s renewable portfolio standard
  (RPS) in the context of a regional implementation of the sources and costs of
  similar policies in New England.
• Consider potential ways to mitigate the exposure of Connecticut consumers to
  the price and availability of natural gas.

This IRP report will be reviewed by CEAB and the Connecticut Department of Public
Utility Control will determine what specific actions will be taken. The companies said
they look forward to working with CEAB and DPUC.

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The Connecticut Light and Power Company (CL&P) has been part of everyday life in Connecticut for more than 100 years, providing safe and reliable electric service to homes, neighborhoods and businesses. With nearly 1.2 million customers in 149 cities and  towns, CL&P is an active member in the communities it serves, offering programs in
energy conservation, economic development and environmental education. CL&P is part of the Northeast Utilities System (NYSE: NU). For more information, please visit www.cl-p.com.
The United Illuminating Company (UI) is a New Haven-based regional distribution utility established in 1899. UI is engaged in the purchase, transmission, distribution and sale of electricity and related services to more than 320,000 residential, commercial and industrial customers in the Greater New Haven and Bridgeport areas. UI’s World Wide Web address is http://www.uinet.com/. UI’s parent company, UIL Holdings Corporation, is traded on the New York Stock Exchange under the symbol UIL.