uil_exh99-6.htm

EXHIBIT 99.6

Connecticut Natural Gas Corporation

Financial Statements (Unaudited)

For the Three Months Ended March 31, 2011 and 2010

Table of Contents


March 31, 2011 and 2010


Financial Statements (Unaudited)	Page(s)

Statements of Income	1

Statements of Comprehensive Income	1

Balance Sheets	2

Statements of Cash Flows	4

Statement of Changes in Common Stock Equity	5

Connecticut Natural Gas Corporation
Statements of Income (Unaudited)



Three months ended March 31,	2011			2010
(Thousands)
Operating Revenues
Sales and services	$	166,253		$	154,285
Operating Expenses
Natural gas purchased		108,656			100,313
Other operating expenses		13,328			14,686
Maintenance		2,092			2,031
Depreciation and amortization		5,846			5,665
Other taxes		8,324			8,302
Total Operating Expenses		138,246			130,997
Operating Income		28,007			23,288
Other (Income)		(428	)		(3,216	)
Other Deductions		1,542			162
Interest Charges, Net		2,965			3,015
Income Before Income Taxes		23,928			23,327
Income Taxes		7,592			9,486
Net Income		16,336			13,841
Less: Preferred Stock Dividends		13			13
Earnings Available for Common Stock	$	16,323		$	13,828




Connecticut Natural Gas Corporation
Statements of Comprehensive Income

Three months ended March 31,		2011			2010
(Thousands)
Net Income	$	16,336		$	13,841
Other Comprehensive Income (Loss), Net of Tax		12			(8	)
Comprehensive Income	$	16,348		$	13,833

Connecticut Natural Gas Corporation
Balance Sheets (Unaudited)


	March 31,		December 31,
	2011		2010
(Thousands)
Assets
Current Assets
Cash and cash equivalents	$	2,174	$	49,520
Accounts receivable and unbilled revenues, net		90,483		70,881
Affiliated accounts receivable		338		964
Affiliated note receivable		29,000		-
Natural gas in storage, at average cost		28,669		54,630
Derivative assets		95		1,625
Accumulated deferred income taxes		1,790		-
Prepayments and other current assets		4,333		6,463
Total Current Assets		156,882		184,083
Utility Plant, at Original Cost
Natural gas		635,722		634,481
Less accumulated depreciation		220,252		216,886
Net Utility Plant in Service		415,470		417,595
Construction work in progress		569		428
Total Utility Plant		416,039		418,023
Other Property and Investments, Net		1,921		1,920
Regulatory and Other Assets
Regulatory assets
Unfunded future income taxes		149		3,958
Deferred income taxes		15,508		5,859
Deferred purchased gas costs		-		8,408
Pension and other postretirement benefits		79,070		79,895
Other		53,461		56,372
Total regulatory assets		148,188		154,492
Other assets
Goodwill		115,049		115,068
Other		2,500		2,750
Total other assets		117,549		117,818
Total Regulatory and Other Assets		265,737		272,310
Total Assets	$	840,579	$	876,336

Connecticut Natural Gas Corporation
Balance Sheets (Unaudited)

	March 31,			December 31,
	2011			2010
(Thousands)
Liabilities
Current Liabilities
Current portion of long-term debt	$	3,915		$	3,915
Accounts payable and accrued liabilities		9,957			8,252
Accounts payable, natural gas purchased		28,588			30,623
Accounts payable to affiliates		640			1,161
Interest accrued		3,572			2,738
Taxes accrued		15,394			9,462
Other		12,317			12,781
Total Current Liabilities		74,383			68,932
Regulatory and Other Liabilities
Regulatory liabilities
Pension and other postretirement benefits		9,921			10,404
Accrued removal obligation		114,172			112,548
Other		31,156			26,573
Total regulatory liabilities		155,249			149,525
Other liabilities
Deferred income taxes		16,742			13,862
Pension and other postretirement benefits		72,833			77,886
Asset retirement obligation		6,857			6,769
Other		4,658			4,862
Total other liabilities		101,090			103,379
Total Regulatory and Other Liabilities		256,339			252,904
Long-term debt		162,827			163,805
Total Liabilities		493,549			485,641
Commitments
Preferred Stock
Preferred stock		750			750
Common Stock Equity
Common stock		33,233			33,233
Capital in excess of par value		350,827			350,827
Retained (deficit) earnings		(37,809	)		5,868
Accumulated other comprehensive income		29			17
Total Common Stock Equity		346,280			389,945
Total Liabilities and Equity	$	840,579		$	876,336

Connecticut Natural Gas Corporation
Statements of Cash Flows (Unaudited)


Three months ended March 31,	2011			2010
(Thousands)
Operating Activities
Net income	$	16,336		$	13,841
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization		5,846			5,665
Amortization of regulatory and other assets and liabilities		3,896			(9,229	)
Deferred income taxes and investment tax credits deferred, net		(3,292	)		(5,063	)
Pension expense		1,528			1,636
Changes in current operating assets and liabilities
Accounts receivable and unbilled revenues, net		(18,976	)		(21,827	)
Inventories		25,961			29,994
Prepayments and other current assets		3,660			(1,152	)
Accounts payable and accrued liabilities		(851	)		(4,466	)
Interest accrued		834			923
Taxes accrued		5,932			34,907
Other current liabilities		(464	)		1,845
Changes in other assets		11,813			18,924
Changes in other liabilities		(7,960	)		406
Net Cash Provided by Operating Activities		44,263			66,404
Investing Activities
Utility plant additions		(2,595	)		(2,269	)
Loan to parent		(29,000	)		-
Investments, net		(1	)		26
Net Cash Used in Investing Activities		(31,596	)		(2,243	)
Financing Activities
Dividends paid on preferred stock		(13	)		(13	)
Dividends paid on common stock		(60,000	)		(11,000	)
Net Cash Used in Financing Activities		(60,013	)		(11,013	)
Net Increase in Cash and Cash Equivalents		(47,346	)		53,148
Cash and Cash Equivalents, Beginning of Period		49,520			1,747
Cash and Cash Equivalents, End of Period	$	2,174		$	54,895

Connecticut Natural Gas Corporation
Statement of Changes in Common Stock Equity (Unaudited)
(Thousands)

										Accumulated
	Common Stock						Retained			Other
	Outstanding $3.125 Par Value				Capital in		Earnings			Comprehensive
	Shares		Amount		Excess of Par		(Deficit)			Income		Total
Balance, January 1, 2011		10,634	$	33,233	$	350,827	$	5,868		$	17	$	389,945
Net income								16,336					16,336
Other comprehensive income, net of tax											12		12
Comprehensive income													16,348
Dividends common stock								(60,000	)				(60,000	)
Dividends preferred stock								(13	)				(13	)
Balance, March 31, 2011		10,634	$	33,233	$	350,827	$	(37,809	)	$	29	$	346,280