Connecticut Water Service, Inc.

2010 Annual Meeting

of Shareholders

May 14, 2010

Forward Looking Statements

Except for the historical statements and
discussions, some statements contained in this
report constitute “forward looking statements”
within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward looking
statements are based on current expectations and
rely on a number of assumptions concerning future
events, and are subject to a number of
uncertainties and other factors, many of which are
outside our control, that could cause actual results
to differ materially from such statements.

2009 Recap

2009 - $59.4M

2008 - $61.3M

2008 - $9.4M

2009 - $1.20

2008 - $1.12

Revenue

Net Income

EPS

Segment Earnings
2006 - 2009

EPS

$0.81

$1.06

$1.12

$1.20

Dividend Growth

Total Return 2005 - 2009

Regulatory Filing

•Filed January 2010

–Decision expected July 1

–Requested $19.1 million over 3 years

•Sought to Minimize Customer Impact
While Addressing Financial Needs

–Phased-in Increase

–Aligned Ourselves with Conservation
Initiatives

Milestones

•Continued Growth Through Acquisitions

–Regulated - Solved Problems

–Unregulated - Leveraged Strength

•Capital Remained Available

•Technology Advancements

–Project Blue Horizon

–Foundation in Place

2010- A Look Ahead

•Implement New Rates

•Leverage our Technology Investment

•Continue Supporting Customers

•Q1 Earnings

–Revenue Growth

–Acquisitions

–Manage Costs

Connecticut Water Service, Inc.

2010 Annual Meeting

of Shareholders

May 14, 2010

Water Touches Everything
We Care About…

Water Touches Everything
We Care About…

Water Touches Everything
We Care About…

Water Touches Everything
We Care About…

Our Strategy…

•Deliver High

Quality Water

•Reliability

•Efficiency

•Responsive &

Courteous Service

Customer Strategy

•Organized in 1956

•55 Towns

•Serving 300,000 people

•225 Employees

Connecticut Water Company

Customers by Class

Residential

90.4%

Commercial

6.4%

Fire Protection

1.9%

Public Authority

0.7%

Industrial

0.5%

Service Area Profile

•Suburban/Rural

•Median household income

2007 -2008 $65,644

(US $51,233)

•>500 community water
systems statewide

–100 municipal/public authority

–> 75% serve less than 500 people

•Corporate Responsibility Committee

•Watershed Forest Management Plan

•Water Supply Planning

–Forecast & Plan supply for next 50 years

•Adopting new technologies

–Hybrid vehicles, videoconferencing, energy
efficient pumps

Stewardship

•EPA Partnership Award - 10 Years

•Reminder calls on past due bills

•H2O Assistance Program

•Temporary Rate Reduction

•Personal Service

•Reverse 911 notification system

•World Class Customer Service -

>85% satisfaction 4 years in a row

Customer Service

•Acquisitions

•Service Offerings

Growth Strategy

Infrastructure

•Rate Case Filed in January 2010

Decision due in July

Issues -

•Conservation trends

•Infrastructure commitments

•Cover increasing costs of

pension, health care,

chemicals

•Infrastructure Investment

–5% annual cap

–7.5% maximum adjustment

•1st Surcharge 0.95% (7/09)

Capital Expenditures

* 2010 Projected

•Acquire Water &

Waste Water Systems

•Connecticut

•Atlantic Coast States

•Fair Regulation

•60 Acquisitions in 20 years

•Jensen Communities - Killingworth & Mansfield

–500 homes (55 and over communities)

•Legend Hills - Madison

–Solves quality issues for condominium

community and two public schools

–Equivalent of 120 residential customers

•Hawk’s Nest - Old Lyme

–Agreement reached (pending DPUC approval)

–100 customers

•Home Serve

•Water Supply Agreement - Putnam, CT

–10 year agreement

–Minimum 50,000 gallons per day

–Maximum 800,000 gallons per day

Utility Services

•80 client contracts

–O&M

–Leak Detection

–Compliance Reporting

•University of Connecticut

Linebacker®
Service Line Protection

Renewal Rate

>90%

2010

2009

2008

2007

2006

2005

•Leadership is a privilege

•Trust based

•Team & service oriented

•Professionals

•“Satisfied Employees

Satisfy Customers”

•Employee Satisfaction

–Executive Compensation Metric

Employee Strategy

Project Blue Horizon
Enterprise Resource Planning

•Planning began October 2008

•“Go-Live” date 3/22/10

•25% of employees directly involved in
development

•Browser based interface featuring point and
click

•Old system outdated - no longer supported

Project Blue Horizon
Enterprise Resource Planning

Shareholder Strategy

•Strong Dividend Yield

•High Earnings Quality

•Strong Balance Sheet

Performance

•Financial Performance

– Only publicly traded water utility with positive

return in 2007, 2008, and 2009

•Dividends

–Dividend yield 3.8%

–Paid since 1956

–40 years of increasing dividends

–2.2% increase in dividend in 2009

Performance

•High Earnings Quality

–90% of Revenues, 77% of Earnings

from regulated business

•Strong Balance Sheet

–LTD 5.5% Embedded Cost

–47/53 % Debt-Equity ratio

–Access to Capital Doubled

–S & P Rating “A”

Performance

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