IUSA/UIL Merger Initial Analysis

A 77 page in depth analysis of the then proposed IUSA/UIL merger.

The report analyzes the issues of concern during the merger process in the summer of 2015.

Report contains: preliminary earnings and valuation estimates; background information about all of the subsidiary utilities, with historical customer counts and sales volumes; regulatory review of the four state jurisdictions; listing of all wind projects owned by IUSA, including size, location, date in service, and generating volumes; accounting review discussing the potential impact of IFRS vs. US GAAP accounting, as well as pro forma financial statements.

Table of Contents:

• Key Things to Look for in S-4 Filing   p.2
• New Company Structure   p.3
• Subsidiary Summaries   p.4
• Regulatory Environment   p.12
• Rate Base   p.16
• 2016 Earnings   p.17
• Earnings Beyond 2016   p.22
• Cash Flow Review   p.27
• Valuation   p.28
• Financial Statement Review   p.31
• APPENDIX 1 – Renewables map   p.48
• APPENDIX 2 –Wind asset table   p.49
• APPENDIX 3-Utility customer count   p.51
• APPENDIX 4-Credit Rating Information   p.52
• APPENDIX 5-Berkshire Gas press release   p.53
• APPENDIX 6-Board of Directors info.   p.54
• APPENDIX 7-Maine Natural Gas map and financials   p.60
• APPENDIX 8-Iberdrola S.A. segment results   p.61
• APPENDIX 9-IUSA Financial Statements   p.64
• APPENDIX 10-Merger filing pro forma statements   p.68
• APPENDIX 11-IUSA Intercompany Transaction info   p.74
• APPENDIX 12-Div./Dist. to non-controlling interests   p.77