United Water at a Glance

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 OM 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 conceptfully 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 Countiessummer
  irrigation, summer rates 1.5x

3
NYPSC Revenue Reconciliation

• Seasonal ratelow fixed chargerevenue volatility
• Post rate year reconciliationcompare 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