uil_exh99-1.htm

Shields & Company Midwest Seminar

April 7, 2009 - Chicago

TRANSFORMING INVESTMENT

INTO FUTURE VALUE

EXHIBIT 99.1

Certain statements contained herein, regarding matters that are not historical facts, are forward-looking
statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements
regarding management’s intentions, plans, beliefs, expectations or forecasts for the future. Such forward-looking
statements are based on the Corporation’s expectations and involve risks and uncertainties; consequently, actual
results may differ materially from those expressed or implied in the statements. Such risks and uncertainties
include, but are not limited to, general economic conditions, conditions in the debt and equity markets, legislative
and regulatory changes, changes in demand for electricity and other products and services, unanticipated
weather conditions, changes in accounting principles, policies or guidelines, and other economic, competitive,
governmental, and technological factors affecting the operations, timing, markets, products, services and prices
of the Corporation’s subsidiaries. The foregoing and other factors are discussed and should be reviewed in the
Corporation’s most recent Annual Report on Form 10-K and other subsequent periodic filings with the Securities
and Exchange Commission. Forward-looking statements included herein speak only as of the date hereof and
the Corporation undertakes no obligation to revise or update such statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events or circumstances.

For more information, contact:

Sue Allen - V.P. IR & Treasurer, 203.499.2409
Susan.Allen@uinet.com

Michelle Hanson - Mgr. IR, 203.499.2481
Michelle.Hanson@uinet.com

Important Note to Investors

Anthony J. Vallillo

President and Chief Operating Officer, The United Illuminating Company

Richard J. Nicholas

Executive Vice President and Chief Financial Officer, UIL Holdings/The United Illuminating Company

UI Service Territory in Connecticut

335 square miles

21% of Connecticut’s population

Who We Are……..

The United Illuminating Company, a wholly owned subsidiary of UIL Holdings
Corporation

› Electric Transmission and Distribution Utility

› 324,000 Customers in Southwest Connecticut

› $2.1 Billion Total Assets

› $600 Million Market Capitalization

› 1,039 Employees

› Retail Revenue Breakdown:

» 58% residential

» 35% commercial

» 6% industrial

» 1% street lighting

› Peaking Generation

UIL Holdings Corporation

The United Illuminating Company

Retail

Distribution

Wholesale

Transmission

GenConn Energy LLC

50%

UIL Structure

Today’s Message

Ш Reduced 2009 capital expenditures due to current market conditions

Ш Changed capital plan with shareowners and customers in mind

Ш Issuing equity below book value would dilute the Company value,
impacting new & existing shareowners

Ш Will closely monitor capital markets

* 2009-2017

2009 Strategic Initiatives

Ш Previously announced - plan for $75-$100 million of equity in 2009

› Universal shelf registration in place on March 11, 2009

Ш Significantly reduced 2009 capital expenditures until financial markets
improve

› Flexibility

4Allows UIL to issue equity at a time determined appropriate

Ш In November 2008 UIL reported a $1.7 billion* 10-year capital expenditure
program

› Program is under review

› Dollars & projects have been shifted to later years

Ш Seeking out and investing in transmission opportunities to meet
customers’ needs

Ш Moving forward with both GenConn peaking generation projects

Ш Analyzing Federal Stimulus funding opportunities

Not Much Has Changed

Ш Transmission & Distribution

› Customer, compliance, & standards projects

4We have to do them

› Aging infrastructure projects

4We will do them

4Timing issues

› Capacity projects

4We will do them

4Timing issues - change in peak load forecasts

Ш GenConn Peaking Generation

› Moving forward

› On time

Ш Central Facility

› Moving forward

› Timing issues

Types of Projects Deferred:

Ш Capacity

› New substations

› Load relief projects

› Substation rebuilds

Ш IT Related - software upgrades and hardware refresh

Ш Infrastructure

› Substation removal

› Cable replacement programs

› Splice chamber replacements

› Pole replacements

$ millions

What’s Next in Cap Ex?

Major Projects on the Horizon

Ш Substations - New, Rebuild/Expand Existing Substations

› New - Shelton, Union Avenue, Orange, Fairfield

› Rebuild/Expand - Grand Avenue, Baird, Broadway II

Ш Infrastructure

› Splice chambers

› Cables

› Poles

› Line transformers

Ш Central Facility

Ш Remote Disconnect Project

Ш Meter Data Management

7 Miles of
345kV OH

33 Miles of
345kV OH

8 Miles of 2 -
345kV “XLPE” UG

2 Miles of
345kV OH

3 Miles of
345kV OH

UI to Own &
Operate 345kV Singer
Substation and 5.6 Miles
of 345kV XLPE UG Cable

16 Miles of 2 -
345kV “XLPE” UG

Middletown-to-Norwalk 345kV Transmission Project

Note: 2009 average rate base projections based on the current
2009 capital expenditure estimate

* Stranded costs - fully amortized by 2013

2009 Blended Allowed ROE: 10.1% - 10.2%

Average Rate Base 2007-2009

Experienced developer/generator

Existing sites & projects

Queued interconnections

Electric distribution company

Strong relationship with policy makers

Strategic realignment
w/ long-term capex program

COS regime operations

UI/NRG JV

Strategic Alignment

Regulatory Compliance

GenConn Energy LLC

50%

Peaking Generation

Devon & Middletown

Locations

$400 Million*

Approximate Cost

Anticipated 1H ‘09

Financing

CL&P

Off Taker

2010 & 2011

COD

400 MW

Capacity

GE LM6000

Technology

Project Development Highlights

Partnership between UI and NRG

* GenConn estimates that project costs may increase over the proposal it had originally submitted to the DPUC. The increase is driven primarily by increased
financing costs and the cost to build interconnection facilities at the Middletown site. Reasonably incurred financing costs and interconnection cost are pass-
through costs and GenConn expects to recover these costs through its contract for differences as determined by DPUC. Sponsors in process of syndicating
approximately $550 million of financings.

GenConn Energy - Peaking Generation

Ш Regulated COS approach

› ROE, lifetime floor - 9.75%

› 50/50 debt/equity

› 30-year O&M costs reviewed annually

› Cost recovery through contract for differences

Ш Financing

› 50% financed at the project level

› 50% financed with a UI Equity Bridge Loan

Ш Status

› All major equipment has been ordered

› General contractor - awarded

› Devon site construction commenced

CT Current Class I Standards**	~ 7% by 2010 ~ 12.5% by 2015 ~ 20% by 2020
Plan to Meet Current Standards***	Projects needed to achieve - To Be Determined

* Includes RPS for existing and new resources; and other requirements for new renewables, energy efficiency, and CHP

** Class 1 renewables are energy derived from: solar, wind, fuel cell, tidal, small hydro, bio mass

*** Appears unlikely to be achievable by instate (CT-only) projects

New England-wide RPS and
Efficiency Requirements*

~ 14% by 2012 (20,000 GWh)

~ 21% by 2016 (30,000 GWh)

~ 28% by 2020 (41,000 GWh)

Connecticut Standards:

Combined New England-wide Standards:

Renewable Portfolio Standards

Distribution Rate Case - Docket #08-07-04

Approved:

Ш Rates set for 2009 & 2010

Ш Revenue increase:

› $6.1 million increase in 2009

4Coupled with previously implemented $7.2 million increase from our last rate decision, the
change is a revenue reduction of $0.97 million, or 0.08%

Ш A one-time customer credit will be issued in April 2009

› 2010 revenue requirements increase by approximately $19 million over 2009, to be
adjusted for changes in 2010 pension expense (4Q ’09)

› Pension expense for 2010 will be trued-up on 12/31/09 asset balances & discount
rate

Ш 8.75% ROE, 50% equity, 50% debt capital structure

Distribution Rate Case - cont.

Ш Favorable Items

› Implemented UI’s proposed revenue decoupling methodology

› Approved 90% of proposed distribution capital program expenditures

› Transferred a portion of uncollectibles and other expense to Generation Services Charge

› Established a $10.2 million regulatory asset for a portion of 2009 increased pension and
postretirement expense

› Pension tracker

› Cost of Debt tracking mechanism

Ш Unfavorable Items

› Lower than expected allowed ROE, 8.75%

› Approved O&M expenses - 15% less than requested

Ш Reconsideration Requests

› Items for reconsideration

› Request to reconsider decision regarding cost of capital

Financing Plan

Ш Debt

› Successfully remarketed $103.5 million in Pollution Control Revenue Bonds

› Refinancing $51 million maturing debt in 2009

› DPUC approved an application to afford UI flexibility to market $92 million
outstanding tax-exempt bonds - redeem & reissue without insurance

› Expect to apply to the DPUC for approval of additional debt financings over the next
3 years

4Capital needed to fund capital expenditure program

Ш Equity

› Universal Shelf registration in place - provides flexibility

› Will closely monitor capital markets

Financing Plan - cont.

Ш Liquidity

› UIL & UI have a $175 million joint short-term credit facility due December 2011

4UI had $148 million outstanding as of December 31, 2008

Ш GenConn financing $40 million

- Repayment expected in 1H ‘09

Ш Tax exempt bond $25 million

- Remarketed March 2009, paid down short-term facility

› $7.7 million unrestricted cash and temporary investments as of December 31, 2008

› UI has a $25 million revolving credit facility due May 2009

4UI did not have any short-term borrowings outstanding as of December 31, 2008

› UIL also has an uncommitted money market loan facility

Ш Strong transmission earnings, increase of 88% over 2007

Ш Distribution earnings continued to be impacted by lower kilowatt hour sales, increased
uncollectibles expense, increased interest expense from higher borrowing, and mark-to-
market adjustments to non-qualified pension investments

Strong Transmission Earnings in 2008

2009 expectations are not intended to be additive.

2009 Guidance Expectations

Ш Managing distribution O&M expenses

Ш Assumes transmission business weighted average return on equity of 12.3% to 12.5% in
2009

	2008 Actual	2009 EPS Guidance
Total United Illuminating Company	$2.03	$1.90 - $2.10
Distribution, CTA & Other	1.09	0.90 - 1.10
Transmission	0.94	0.95 - 1.05
Corporate	(0.10)	(0.12) - (0.07)
Total Continuing Operations	$1.93	$1.80 - $2.00
Discontinued Operations - Xcelecom	(0.01)
Total UIL	$1.92

2009 Earnings Guidance - as of March 11, 2009

› Solid enterprise foundation

› Attractive investment opportunities in both distribution and
transmission

› Cost-of-Service generation

› Focused on regulated utility

› Pure-play utility

› Long-term Distribution rate base growth

› Long-term Transmission rate base growth

› Potential generation opportunities

Value

Focused

Growing

Positioned
for Success

› Creating value for our customers and shareowners

› Consistent annual dividend for more than 12 years

› Paid a consecutive quarterly dividend, without suspension, for

more than 100 years

UIL

Q&A

Appendix

4Q and Full Year 2008 Earnings Details Compared to
the Same Periods in 2007

The United Illuminating Company

Ш Distribution, CTA & Other

› Distribution earnings for both the quarter and full year 2008 continued to be impacted
by lower kilowatt hour sales, increased interest expense from higher borrowings and
mark-to-market adjustments to non-qualified pension investments

› Lower kWh sales volume, $0.05 per share in 4Q ’08

4FY ’08, $0.18 per share lower

› Actual kWh sales were down 4.3% in 4Q ’08

4FY ’08, 3.2% lower

› Weather adjusted retail kWh consumption 3.4% lower in 4Q ’08

4FY ’08, 3.7% lower

› Uncollectibles expense was $0.03 per share favorable in 4Q ’08 compared to 4Q ’07

4Reduced earnings by $0.05 per share FY ’08

4Q and FY compared to 2007 - cont.

ШDistribution, CTA & Other - cont.

› Increased revenue for the quarter and the year from previously approved increases in
distribution rate components

› Mark-to-market adjustments for non-qualified pensions (below the line) reduced earnings
$0.03 per share in 4Q ’08

4FY ’08, $0.10 per share reduction

› Distribution and CTA combined return on equity in 2008 - 6.99%

ШTransmission

› Transmission earnings were strong in the 4Q ’08 compared to 4Q ’07

4$0.26 per share vs. $0.18 per share

› 2008 transmission earnings increased 88% over 2007

4$0.94 per share vs. $0.51 per share

4Middletown-to-Norwalk transmission project was completed and energized in 4Q ’08

Ш Ahead of original schedule and on budget

4Trumbull substation was energized in 2Q ’08

› Weighted average return on equity in 2008 - 12.55%

4Q and FY compared to 2007 - cont.

Ш Depreciation expense increased in 2008 by $0.07 per share, due to
capital spending

Ш Increased interest expense from higher borrowings, $0.04 per share in
4Q ’08

› FY ’08, $0.21 per share

Ш Corporate and Other

› The absence of interest income of $0.02 per share recorded in 4Q ’07 related to
UIL’s loss carryback claim with the IRS

Rate Case Information - Lower Distribution Sales

GWH

* 1% annual sales forecast approved in prior rate case

(6+6)

(pre-GSC Allocation)

$MM

Rate Case Information - Higher Distribution
Uncollectibles

Distribution Non-Hardship Uncollectibles

$15.8

$21.3

$MM

$23.9

$23.0

Actual

Projected

Rate Year

Rate Case Information - Uncollectibles cont.

Total Uncollectibles

Rate Case - Favorable Items Detail

Favorable Items

Implemented UI’s proposed revenue decoupling methodology

› Annual true-up

» If revenues < approved, rates will adjust to collect additional revenues

» If revenues > approved, excess will be returned to customers

› Decoupling will be evaluated after a two-year pilot period

Approved 90% of proposed distribution capital program expenditures

Transferred a portion of uncollectibles and other expense to Generation Services
Charge

› Approximately $7 million

Established a regulatory asset for a portion of 2009 increased pension and
postretirement expense

› Future recovery of $10.2 million

› 2010 true-up

Rate Case - Favorable Items Detail

Pension tracker

› True-up for 2010

» Based on year-end valuation, which takes into account changes, if any, in asset values and the discount
rate

Cost of Debt tracking mechanism

› Annual true-up

» Provided embedded debt cost after issuances, differs from allowed embedded cost of capital of 6.42%
for 2009, 6.76% for 2010

» Minimum 25 basis points and results in +/- $1.5 million interest expense or greater

Sharing mechanism

› 50% of excess earnings over allowed level is returned to customers through bill reduction

› 50% retained by UI

Increased distribution revenue requirements in 2010, approximately $19 million over
2009

› Excludes impacts of a change in pension expense

Rate Case - detail

Unfavorable Items

Lower than expected allowed ROE, 8.75%

Significant decrease in amount of O&M expenses

› $158.6 million requested vs. $134.4 million approved

Reconsideration Requests

Items for reconsideration

› Clarification & Technical errors

› Technical session held March 9, 2009 to address errors

» Total impact of requested corrections to mathematical errors; $4.7M in 2009 & $5.6M in 2010

Request of the DPUC to reconsider decision regarding cost of capital

2008 Capital Expenditures

Legal, Accounting &

Regulatory

Agreements

CfD w/

CL&P

Proceeds Offset

Revenue Requirements

Project Debt

GenConn

Devon LLC

GenConn

Middletown LLC

100%

Engineering, Procurement &
Construction Management,

Site/Common Facilities

O&M, and
ComOps Agreements

CfD w/

CL&P

GenConn Energy Structure

100%

ISO-NE

(Revenues)

Procurement &
Construction Contract(s)

50%

NRG

50%

100%

GenConn Energy, LLC

Additional Information 2008 vs. 2007