United Illuminating : UIL Breaks Ground on Major Natural Gas Expansion

NEWS RELEASE
May 21, 2015

Media Contact:
Michael A. West Jr.: 203-499-3858

UIL Breaks Ground on Major Natural Gas Expansion
Project Will Provide Energy Choice and Economic Development Opportunities

NEW HAVEN, Conn. - May 21, 2015 - Connecticut Natural Gas Corporation, a subsidiary of UIL Holdings Corporation, today officially broke ground on a project that will bring a new energy choice to residents and businesses in East Hampton, Connecticut.

The 10-mile expansion of natural gas main into the town is the company's largest such project in three decades. The new gas main will serve nine East Hampton schools and municipal buildings, will reach all of the town's major businesses, and will make natural gas an option for more than 400 residential and commercial customers along the route.

"We are very excited about this project and what it means for energy choice to the citizens of East Hampton," said James P. Torgerson, UIL's President and Chief Executive Officer. "This is yet another example of how the Comprehensive Energy Strategy is working to help make Connecticut a cleaner, more competitive state. We expect in the years ahead to continue to bring natural gas to more communities and more neighborhoods where it wasn't available before."

The Comprehensive Energy Strategy was proposed by Gov. Dannel P. Malloy and adopted in 2013. It has facilitated gas expansion by lowering the economic hurdle that projects must clear in order to be considered economically viable without a significant upfront contribution from the customers they'd serve. The strategy seeks to convert 280,000 new natural gas heating customers statewide by 2023, among other goals.

The town of East Hampton and other "anchor" customers, such as American Distilling, Inc., signed up in advance to purchase natural gas, helping to provide the critical mass of demand necessary to justify moving forward with the project.

"We're excited about this project for a number of reasons," said Ed Jackowitz, CEO of American Distilling, the world's largest source of distilled witch hazel extracts. "Switching to gas goes hand-in-hand with our philosophy to be as environmentally friendly as we can be. Having natural gas delivered via the new main will help improve the efficiency of our process. And we expect significant cost savings by using natural gas instead of fuel oil. As always, we strive to be faster, better and cheaper - and natural gas will help with all of the above."

East Hampton's Town Manager Michael Maniscalco said the project creates a major savings opportunity for the town and its taxpayers, and will help the town attract businesses. Four schools and all major town offices will be connected to the new main.

"This is great news for East Hampton taxpayers, many of whom will have the opportunity to connect to the new natural gas main," Maniscalco said. "We see this as a big 'win' all around."

Construction on the project began in April. The new gas main entered East Hampton from the Portland border this month, following Route 66 and Route 16 into the center of town. Natural gas is expected to begin flowing to the new customers in East Hampton in time for the upcoming 2015 heating season.

Photo: East Hampton (L-R): American Distilling, Inc. Chief Executive Officer Ed Jackowitz, East Hampton Town Council Chairperson Barbara Moore, East Hampton Town Manager Michael Maniscalco, UIL Holdings Corporation Director of Commercial & Industrial Sales Terri Eller, UIL Holdings Corporation Vice President for Customer & Business Services Anthony Marone

About UIL Holdings Corporation:

Headquartered in New Haven, Connecticut, UIL Holdings Corporation (NYSE:UIL) is a diversified energy delivery company serving more than 725,000 electric and natural gas utility customers in 67 communities across two states, with combined total assets of over $5 billion.

UIL is the parent company of The United Illuminating Company (UI), The Southern Connecticut Gas Company (SCG), Connecticut Natural Gas Corporation (CNG), and The Berkshire Gas Company, each more than 100 years old. UI provides for the transmission and delivery of electricity and other energy related services for Connecticut's Greater New Haven and Bridgeport areas. SCG and CNG are natural gas distribution companies that serve customers in Connecticut, while Berkshire Gas serves natural gas customers in western Massachusetts. UIL employs more than 1,900 people in the New England region.