LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2010

(I) LEASE OBLIGATIONS

UIL Holdings and its wholly-owned direct and indirect subsidiaries have lease arrangements for data processing equipment, office equipment, office space and land.

Operating leases, which are charged to operating expense, consist principally of leases of office space and facilities, land, railroad rights of way and a wide variety of equipment. The future minimum lease payments under these operating leases are estimated to be as follows:

	(In Thousands)
2012	$	10,576	(1)
2013		2,592
2014		1,819
2015		1,726
2016		1,904
2017-after		38,459
	$	57,076

(1) Lease for office space in the building located at 157 Church Street, New Haven, Connecticut expires in June 2012. In February 2012, such lease was amended, for considerably less space, and extended for various terms not to exceed ten years with certain options to extend thereafter.

Rental payments charged to operating expenses in 2011, 2010 and 2009 were as follows:

	Year Ended December 31,
	2011		2010		2009
	(In Thousands)

Rental payments	$	18,655	$	13,997	$	13,588
Less: Sublease rental payments received		1,148		1,120		1,125
Rental payments charged to operating expenses	$	17,507	$	12,877	$	12,463

- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

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