1. United Water at a Glance 138 years in the US water market 2000: Became wholly owned subsidiary of Suez Group Key Highlights  Revenues $535M  Total assets $3.1B  2,200 employees  Active in 21 States  7.7 Million people served Two Business Segments: Regulated and Contract Services  21 Regulated utilities  145 O&M contracts* Strategy: Develop a balanced portfolio of Regulated and Contract Services operations that generate value in line with their risk profiles * includes 2007 Aquarion and AOS Acquisitions

2. NYPSC Revenue Reconciliation Revenue “decoupling”= Revenue Reconciliation”; Revenue Adjustment Clause (RAC) In use for many years for larger NY utilities NYPSC “rate year” concept—fully projected rate year starts on effective date of new rates (Statement of Policy) New tariffs approved by PSC reflect rate year revenue requirement Rockland and Westchester Counties—summer irrigation, summer rates 1.5x

3. NYPSC Revenue Reconciliation Seasonal rate+low fixed charge=revenue volatility Post rate year reconciliation—compare actual to forecast metered revenue Refund overcollections, surcharge undercollections based on a percentage of the bill (winter months) Adjustments for variable costs (purchased water, power, chemicals), change in unbilled revenue and unaccounted for water Allows seasonal pricing signals, but protects customers and company