uil_exh99-8.htm

	EXHIBIT 99.8







The Berkshire Gas Company

Financial Statements (Unaudited)

For the three months ended March 31, 2011

Table of Contents

March 31, 2011 and 2010

Financial Statements (Unaudited)	Page(s)

Statements of Income	1

Balance Sheets	2-3

Statements of Cash Flows	4

Statements of Changes in Common Stock Equity	5

The Berkshire Gas Company
Statements of Income (Unaudited)


Three months ended March 31	2011			2010
(Thousands)
Operating Revenues
Sales and services	$	30,527		$	30,534
Operating Expenses
Natural gas purchased		15,541			17,278
Other operating expenses		3,460			2,953
Maintenance		304			214
Depreciation and amortization		1,914			1,795
Other taxes		670			638
Total Operating Expenses		21,889			22,878
Operating Income		8,638			7,656
Other (Income)		(252	)		(345	)
Other Deductions		11			10
Interest Charges, Net		829			859
Income before Income Taxes		8,050			7,132
Income Taxes		3,146			2,787
Net Income		4,904			4,345
Preferred Stock Dividends		1			2
Earnings Available for Common Stock		4,903			4,343

The Berkshire Gas Company
Balance Sheets
	March		December
	2011		2010
(Thousands)
Assets
Current Assets
Cash and cash equivalents	$	9,734	$	5,993
Accounts receivable and unbilled revenues, net		13,026		9,989
Gas in storage at average cost		1,951		4,872
Materials and supplies at average cost		442		392
Deferred income taxes		909		909
Prepayments and other current assets		1,472		1,700
Total Current Assets		27,534		23,855
Utility Plant, at Original Cost
Natural gas		156,959		156,595
Less accumulated depreciation		51,177		50,211
Net Utility Plant in Service		105,782		106,384
Construction work in progress		151		100
Total Utility Plant		105,933		106,484
Other Property and Investments, Net		2,958		2,975
Regulatory and Other Assets
Debt premium		8,426		8,681
Environmental remediation costs		14,738		14,498
Pension benefits		17,238		17,445
Other		1,021		4,058
Total regulatory assets		41,423		44,682
Other assets
Goodwill		52,476		52,476
Long term accumulated deferred income taxes		-		3,127
Other		1,287		1,193
Total other assets		53,763		56,796
Total Regulatory and Other Assets		95,186		101,478
Total Assets	$	231,611	$	234,792

The Berkshire Gas Company
Balance Sheets
	March		December
	2011		2010
(Thousands)
Liabilities
Current Liabilities
Current portion of long-term debt	$	5,418	$	5,418
Accounts payable and accrued liabilities		3,604		4,356
Interest accrued		472		877
Taxes accrued		5,455		3,425
Environmental reserve		760		760
Derivative liability current		12		15
Other		2,379		3,930
Total Current Liabilities		18,100		18,781
Regulatory and Other Liabilities
Regulatory liabilities
Deferred income taxes		6,189		7,479
Unfunded future income taxes		158		163
Pension benefits		2,427		2,622
Accrued removal obligation		23,450		23,007
Total regulatory liabilities		32,224		33,271
Other Liabilities
Deferred income taxes		14,472		17,533
Environmental remediation costs		8,070		8,070
Postretirement reserves		5,068		5,110
Other		3,056		3,061
Total other liabilities		30,666		33,774
Total Regulatory and Other Liabilities		62,890		67,045
Long-term debt		40,008		40,263
Total Liabilities		120,998		126,089
Commitments and Contingencies
Preferred Stock
Preferred Stock		78		78
Common Stock Equity
Capital in excess of par value		106,046		106,046
Retained earnings		4,489		2,586
Accumulated other comprehensive loss		-		(7	)
Total Common Stock Equity		110,535		108,625
Total Liabilities and Stockholders' Equity	$	231,611	$	234,792

The Berkshire Gas Company
Statements of Cash Flows (Unaudited)

Three months ended March 31	2011			2010
(Thousands)
Operating Activities
Net income	$	4,904		$	4,345
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation		1,614			1,555
Amortization of regulatory assets and liabilities		300			240
Deferred income taxes and investment tax credits, net		(1,235	)		(1,043	)
Pension income		170			65
Changes in current operating assets and liabilities
Accounts and other receivables		(3,037	)		(2,971	)
Inventories		2,870			3,093
Prepayments and other current assets		66			(30	)
Accounts payable and accrued liabilities		(752	)		(1,934	)
Taxes accrued		2,030			4,620
Interest Accrued		(406	)		(378	)
Other current liabilities		(1,554	)		(2,823	)
Other assets		2,106			1,792
Other liabilities		(249	)		1,475
Net Cash Provided by Operating Activities		6,827			8,006
Investing Activities
Utility plant additions		(51	)		(274	)
Contributions in aid of construction		10			(12	)
Other property and investments, net		(44	)		(80	)
Net Cash Used in Investing Activities		(85	)		(366	)
Financing Activities
Notes payable repayments		-			(5,700	)
Dividends on preferred stock		(1	)		(2	)
Dividends on common stock		(3,000	)		-
Net Cash Used in Financing Activities		(3,001	)		(5,702	)
Net Increase in Cash and Cash Equivalents		3,741			1,938
Cash and Cash Equivalents, Beginning of Year		5,993			370
Cash and Cash Equivalents, End of Period		9,734			2,308

The Berkshire Gas Company
Statements of Changes in Common Stock Equity (Unaudited)

	Common Stock									Accumulated
	Outstanding				Capital in					Other			Total
	$2.50 Par Value				Excess of		Retained			Comprehensive			Common
(In Thousands, except number of shares and par value amounts)	Shares		Amount		Par Value		Earnings			Income (Loss)			Equity
Balance at December 31, 2010		100	$	250	$	106,046	$	2,586		$	(7	)	$	108,625
Net income								4,904						4,904
Other comprehensive income, net of tax											7			7
Comprehensive income														4,911
Dividends on common equity								(3,000	)					(3,000	)
Dividends on preferred stock								(1	)					(1	)
Balance at March 31, 2011		100	$	250	$	106,046	$	4,489			-		$	110,535