LNG Facility Tour Waterbury Connecticut February 5 2007

LNG Facility Tour Waterbury, Connecticut February 5, 2007 Energy / Growth / Leadership

Safe Harbor Provisions This presentation contains statements concerning NU’s expectations, plans, objectives, future financial performance and other statements that are not historical facts. These statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, a listener can identify these forward-looking statements by words such as “estimate”, “expect”, “anticipate”, “intend”, “plan”, “believe”, “forecast”, “should”, “could”, and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results or outcomes to differ materially from those included in the forward-looking statements. Factors that may cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, actions by state and federal regulatory bodies; competition and industry restructuring; changes in economic conditions; changes in weather patterns; changes in laws, regulations or regulatory policy; changes in levels and timing of capital expenditures; developments in legal or public policy doctrines; technological developments; changes in accounting standards and financial reporting regulations; fluctuations in the value of our remaining competitive electricity positions; actions of rating agencies; and other presently unknown or unforeseen factors. Other risk factors are detailed from time to time in our reports to the Securities and Exchange Commission. We undertake no obligation to update the information contained in any forward-looking statements to reflect developments or circumstances occurring after the statement is made. 2

Agenda for Today Ø Yankee financial performance and rate case Ø Other distribution rate cases Ø Regulated business update Ø LNG facility overview Ø Site tour 3

Yankee Gas Background Ø Ø Ø Former CL&P gas division was spun off to NU shareholders July 1, 1989 NU reacquired Yankee Gas parent (Yankee Energy System) on March 1, 2000 for $478 million plus assumed debt NU has divested almost all non-core Yankee Energy businesses and grown Yankee Gas Building LNG facility Built new connection to New England Gas Co. in Rhode Island Added approximately 15, 000 Yankee Gas customers Currently serves nearly 200, 000 customers 4

Rate Case Highlights Ø Ø Ø Net increase of $37 million (8. 4%) Base rate increase of $68 million Lower pipeline, commodity charges due to LNG facility of $26. 5 million Savings from expected property tax abatement of $4 million Expected effective date of July 1, 2007 Most recent increase January 1, 2005 $68 million base rate increase driven by: Improved returns ($17. 5 million)* Higher rate base ($14 million)* Amortization of deferred hardship and environment remediation costs ($11 million) Higher O&M ($11 million, including $3 million for LNG facility electricity)* Higher depreciation over July 1, 2005 – June 30, 2006 test year ($9 million)* Higher property and other taxes ($6 million)* *Partially related to LNG facility – Overall total related to LNG facility about $20 million 5

Current Rate Case Schedule Consumer Counsel testimony due 2006 December 29 Rate case filed Statutory deadline for decision Draft decision 2007 May 15 March 13 March 6 April 19 Evidentiary hearings start Briefs due June 27 May 28 Final decision July 1 Increase expected to be effective 6

$ Millions Recent Yankee Gas Earnings History vs. Rate Case Pro Formas * 12 months ended September 30, 2006 ** Per rate case filing based on Yankee receiving full rate request 7

Yankee Gas Rate Base and Cap Ex Projected Distribution Capital Expenditures $ Millions Projected Year-End Rate Base 8

Status Of Other Distribution Rate Cases WMECO • Settlement approved • Rates effective January 1, 2007 • $1 million distribution increase, plus pension, other trackers, higher energy costs resulted in 17. 8% increase PSNH • $24. 5 million temporary increase effective July 1, 2006 • $60 million permanent increase requested (10. 5% ROE) with transmission tracker • $3 million distribution increase to be effective January 1, 2008 • To be filed around July 1, 2007 • Effective January 1, 2008 • Distribution ROE projected to be 6 -7% in 2007 • NHPUC staff recommended $40 million (9. 12% ROE) with transmission tracker • Expect distribution ROE to remain in 9 -10% range through 2008 CL&P • OCA recommended $17. 5 million (9% ROE) without transmission tracker • February 21 -22: Final settlement discussions • March 13 -14: Hearings • Late second quarter: Expected final decision • Retroactive to July 1, 2006 9

PSNH Rates Now Very Competitive In The Region 17. 79 16. 94 16. 11 14. 38 13. 42 cents/kwh 13. 26 Other includes C&LM, DSM, Stranded Costs (a. k. a. CTA, SCRC or Transition), Consumption Tax, SBC, and Renewables. 10

New Regulated Operations Organization Executive Vice President, Operations – NU Leon J. Olivier President & Chief Operating Officer CL&P/Yankee Gas Raymond P. Necci President & Chief Operating Officer PSNH Gary A. Long President & Chief Operating Officer WMECO Rodney O. Powell Vice President, Utility Group Services Michael F. Ahern Vice President, Customer Services Paul E. Ramsey Vice President, Transmission Projects James A. Muntz Vice President, Transmission Strategy & Operations David H. Boguslawski 11

Four Major SW Connecticut Projects – A $1. 65 Billion Investment E SWCT improvements have been a top priority in each of ISO-NE’s last four regional transmission expansion plans. Our four major projects there total about $1. 65 billion in investment. T LE P OM Bethel-Norwalk C 345 k. V Underground & Overhead $350 Million 21 miles 345 k. V (56% underground) 10 miles 115 k. V (100% underground) 50% of CT Load Completed October 2006 at a cost of $340 million Glenbrook Cables 115 k. V underground $183 Million 9 miles 115 k. V underground Projected in-service date: 2008 Under contract – construction under way, 20% complete Middletown-Norwalk 345 k. V Underground & Overhead $1, 047 Million (NU Share) Long Island Cable 138 k. V cross sound $72 Million (NU share) 69 miles 345 k. V (35% underground) 57 miles 115 k. V (1% underground) Joint project with United Illuminating 11 miles 138 k. V submarine cable Projected in-service date: 2009 Joint project with LIPA Construction under way, 16% Projected in-service date: 2008 Under contract – cable being manufactured complete 12

Southern New England Transmission Reinforcement Projects Are the Next Major Undertaking The SNETR projects solve four area problems: 1. Interstate transfer capability 2. Connecticut East-West transfer capability 4 3 3. Springfield Reliability 4. New England East-West transfer capability 1 2006 Activities: • Complete planning studies 2 • Analyze routing options 2007 Activities: • Begin siting process in Connecticut and Massachusetts • ISO-NE technical approval 2005 2006 2007 2008 2009 2010 2011 Planning Siting Construction 2012 2013

We Have Selected the Southern New England Transmission Reinforcement Project Preferred Routes The four components, identified to date, are: A Springfield Reliability Component An Interstate Reliability Component A Rhode Island Reliability Component A CT East-West Reliability Component Total Planning Grade Estimate: Post-SNETR Import Capability is expected to grow to 3600 MW $1. 1 - $1. 4 Billion

New England Return On Equity Ø FERC decision on New England transmission ROE issued on October 31, 2006 Ø Base ROE set at 10. 2% for the period 2/1/2005 through 10/31/2006 and 10. 9% beyond that Ø Incentive adders include: 50 basis points for joining an RTO 100 basis points for new transmission identified by ISO-NE within its regional system planning process Ø November 30 th Request for Rehearing by New England transmission owners – apparent 30 basis point error in base ROE Ø If successful with our FERC Rehearing Request: Our going forward ROE on the large majority of NU’s transmission capital program will be at 12. 7% As new investment enters rate base our weighted ROE will rise – from approximately 12. 1% blended in 2007 to about 12. 45% by the end of the forecast period 15

Northern Wood Power Project Ø 50 MW unit converted from coal-oil dual fired unit Ø Significant reduction in mercury, NOx, sulfur emissions Ø Entered commercial operation 12/1/06 Ø Completed under budget for $74 million 16

Yankee Gas Services Company At A Glance Customers Residential Commercial & Industrial Communities Served Service Area Natural Gas Distribution Mains Natural Gas Sales 199, 000 175, 000 24, 000 71 2, 088 sq. mi. 3, 106 mi. 47. 8 BCF* * billion cubic feet 17

Combined CL&P/Yankee Organization Before Current President & COO, CL&P VP Energy Delivery Services President & COO, VP Customer Operations President & COO, VP Energy Delivery Services Yankee Gas VP Operations Director, Sales & Marketing CL&P and Yankee Gas Director, Gas Supply VP Customer Operations -Asset Strategy - Maintenance -Major Construct. - YG Marketing -C&LM -Electric Ops - Gas Ops -Supply Chain - System Ops Center Director, LNG Project -Construction Manager -Project Engineering - Project Controls 18

Connecticut Legislative Update Ø 2005: Energy Independence Act Grants/loans for customer-side generation o $200/kw one-time incentives to host utilities 15 -year capacity-only conventional generation contracts with utilities o o o Ø $25/kw one-time incentives to utilities Bids submitted to the DPUC in December 2006 Winning bids to be announced in April 2007 2006: Legislation CL&P joined the OCC, AG, community groups and key legislators in supporting energy policy legislation Never reached House or Senate floor Ø 2007: Legislation Governor and legislative leadership identified energy as one of top 3 priorities Focus initially on conservation, renewable energy, incenting new generation, possible tax reductions Session ends June 6 19

What Is LNG? Ø LNG: Liquefied Natural Gas Ø Primarily methane Ø Odorless, colorless, non-corrosive, and non-toxic Ø Stored at -260 F Ø Volume is 600 times less than equivalent volume of natural gas vapor 20

Current Yankee Storage 21

Why Waterbury? Ø Largest customer base 50, 000 of 199, 000 Yankee customers connected to Waterbury system Yankee owns property in established industrial area o o Ø Ø Propane had been stored on site for approximately 40 years City very supportive of project Close proximity to major interstate highways and interstate pipelines 125 miles from Everett LNG terminal 2 miles from Algonquin pipeline Former manufactured gas site (1918 – 1963) 22

Map of Waterbury & Shelton 23

Source of Projected Commodity Savings 1. 9% Peaking service to marketers Lower price winter purchase Off-system sales Termination of peaking services Lower cost Canadian supply contracts Total: $26. 5 million annually 24

Construction Timeline DPUC approval 2004 Construction contracted Signed with CB&I Construction began in January May: First LNG injection Roof raised 2007 2006 2005 Foundation completed Today 90% complete Winter 2007 -2008: First expected LNG discharge 25

Questions and Answers

What Will We See On The Tour? Ø Ø Ø Ø Exterior of the tank CAM Building (control, administration, and maintenance) Vaporizers Spill impoundment structures Liquefaction equipment M&R Building (metering and regulation) Compressor Building Multi-Purpose Building 27

Safety Briefing Ø Ø Ø Personal Protective Equipment (PPE) at all times Active construction site Be aware above, below, and around you Stay together Watch out for each other Heed the words of those on site 28