Reassurance From England

To the Editor,

My name is Kevin Bond, chief executive of Kelda Group based in Leeds, England, and I am writing this letter to tell you a little about who we are and what we do.

Kelda specializes in water and environmental services, and we have recently merged with the Aquarion Company who are responsible for providing water services to 24 towns and 500,000 people in Connecticut.

We have known Aquarion for a number of years and have exchanged views and ideas on US/UK water industry best practice and believe that this combination will provide local customers with water services that are second to none.

Aquarion will continue to run your local services and as far as the customer is concerned it is “business as usual.” However, I know that some people are anxious about the future of land that Aquarion owns and what plans Kelda may have for it.

First of all, I would like to reassure you that we have no intention of selling off large tracts of land or developing it. In Yorkshire, England, Kelda owns over 70,000 acres of land, much of which is in national parks and the picturesque Yorkshire Dales, an area of outstanding natural beauty.

We manage our land carefully to ensure that there is a proper balance between recreation; walking, bird watching, fishing, sailing, and conservation; including the protection of water catchments and rare species of plant and animal life.

To demonstrate that we have recently agreed with Governor Rowland a moratorium on all class II and III land sales for three years and two years respectively. That will give all interested parties time to secure the long term future of the land holdings. We will honor that agreement.

Additionally, Kelda and our local Aquarion representatives will continue to meet with government and environmental organizations to see what further steps we can take together, to give reassurance and peace of mind to all that care, as we do, for the protection of the beautiful Connecticut environmental heritage.

Finally, I would like to say that we are 100 percent committed to growing our reputation in the United States. Our environmental credentials are at the heart of that reputation and we aim to protect and enhance it wherever we can.

Yours sincerely,

Kevin Bond, Chief Executive - Kelda Group

Leeds, England                           February 29, 2000