UIL (UIL) 8-K Regulation FD Disclosure

EXHIBIT 99.4

FINANCIAL STATEMENTS

OF

THE BERKSHIRE GAS COMPANY

AS OF SEPTEMBER 30, 2011 AND DECEMBER 31, 2010 AND

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010

(UNAUDITED)

THE BERKSHIRE GAS COMPANY

TABLE OF CONTENTS

	Page Number
Financial Statements:
Statement of Income for the three and nine months ended September 30, 2011 and 2010	3
Balance Sheet as of September 30, 2011 and December 31, 2010	4
Statement of Cash Flows for the nine months ended September 30, 2011 and 2010	6
Statement of Changes in Shareholder's Equity	7

THE BERKSHIRE GAS COMPANY

STATEMENT OF INCOME

(In Thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011		2010
Operating Revenues	$	5,719		$	5,888		$	49,138	$	48,823
Operating Expenses
Operation
Natural gas purchased		2,103			2,088			24,466		25,314
Operation and maintenance		3,553			3,089			10,740		9,400
Depreciation and amortization		1,220			1,529			4,847		4,939
Goodwill impairment charge		-			-			-		5,994
Taxes - other than income taxes		590			529			1,855		1,735
Total Operating Expenses		7,466			7,235			41,908		47,382
Operating Income		(1,747	)		(1,347	)		7,230		1,441
Other Income and (Deductions), net		308			335			756		1,333
Interest Charges, net
Interest on long-term debt		756			792			2,315		2,422
Other interest, net		7			6			51		19
		763			798			2,366		2,441
Amortization of debt expense and redemption premiums		35			21			68		66
Total Interest Charges, net		798			819			2,434		2,507
Income Before Income Taxes, Equity Earnings		(2,237	)		(1,831	)		5,552		267
Income Taxes		(889	)		(714	)		2,143		2,438
Net Income		(1,348	)		(1,117	)		3,409		(2,171	)
Less:
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests		-			1			2		4
Net Income attributable to The Berkshire Gas Company	$	(1,348	)	$	(1,118	)	$	3,407	$	(2,175	)

THE BERKSHIRE GAS COMPANY

STATEMENT OF COMPREHENSIVE INCOME

For the Three and Nine Months Ended September 30, 2011 and 2010

(Thousands of Dollars)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net Income	$	(1,348	)	$	(1,117	)	$	3,409		$	(2,171	)
Other Comprehensive Loss		(22	)		-			(16	)		-
Less:
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests		-			1			2			4
Comprehensive Income	$	(1,370	)	$	(1,118	)	$	3,391		$	(2,175	)

3

THE BERKSHIRE GAS COMPANY

BALANCE SHEET

ASSETS

(In Thousands)

(Unaudited)

	September 30, 2011		December 31, 2010
Current Assets
Unrestricted cash and temporary cash investments	$	9,516	$	5,993
Accounts receivable less allowance of $740 and $1,260, respectively		3,893		8,483
Unbilled revenues		-		1,504
Current regulatory assets		938		5,021
Deferred income taxes		909		909
Natural gas in storage, at average cost		4,551		4,872
Materials and supplies		572		392
Prepayments		1,649		1,701
Total Current Assets		22,028		28,875
Other investments		1,477		1,535
Net Property, Plant and Equipment		112,865		111,222
Regulatory Assets (future amounts owed from customers through the ratemaking process)		39,245		39,660
Deferred Charges and Other Assets
Unamortized debt issuance expenses		1,115		1,182
Goodwill		52,525		52,476
Other		46		11
Total Deferred Charges and Other Assets		53,686		53,669
Total Assets	$	229,301	$	234,961

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THE BERKSHIRE GAS COMPANY

BALANCE SHEET

LIABILITIES AND CAPITALIZATION

(In Thousands)

(Unaudited)

	September 30, 2011			December 31, 2010
Current Liabilities
Current portion of long-term debt	$	2,393		$	5,417
Accounts payable		2,312			4,354
Accrued liabilities		4,297			3,930
Current regulatory liabilities		685			492
Interest accrued		416			877
Taxes accrued		4,702			3,425
Current portion of derivative liabilities		4			16
Total Current Liabilities		14,809			18,511
Noncurrent Liabilities
Pension accrued		990			1,090
Other		18,655			19,132
Total Noncurrent Liabilities		19,645			20,222
Deferred Income Taxes (future tax liabilities owed to taxing authorities)		13,865			14,372
Regulatory Liabilities (future amounts owed to customers through the ratemaking process)		32,359			32,890
Commitments and Contingencies
Capitalization
Long-term debt		39,558			40,263
Preferred Stock of Subsidiary
Redeemable preferred stock, noncontrolling interests		-			78
Common Stock Equity
Paid-in capital		106,095			106,046
Retained earnings		2,993			2,586
Accumulated other comprehensive income		(23	)		(7	)
Net Common Stock Equity		109,065			108,625
Total Capitalization		148,623			148,966
Total Liabilities and Capitalization	$	229,301		$	234,961

5

THE BERKSHIRE GAS COMPANY

STATEMENT OF CASH FLOWS

(In Thousands)

(Unaudited)

	Nine Months Ended September 30,
	2011			2010
Cash Flows From Operating Activities
Net income	$	3,409		$	(2,171	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		4,915			5,005
Deferred income taxes		(1,594	)		(1,232	)
Pension expense		(81	)		371
Goodwill impairment charge		-			5,994
Deferred purchased gas		3,320			3,505
Other non-cash items, net		352			(205	)
Changes in:
Accounts receivable, net		4,418			4,487
Unbilled revenues		1,291			1,156
Prepayments		51			(516	)
Natural gas in storage		320			436
Accounts payable		(1,855	)		(3,211	)
Interest accrued		(461	)		(434	)
Taxes accrued		1,429			1,951
Accrued liabilities		367			(402	)
Other assets		189			32
Other liabilities		(624	)		(840	)
Total Adjustments		12,037			16,097
Net Cash provided by Operating Activities		15,446			13,926
Cash Flows from Investing Activities
Plant expenditures including AFUDC debt		(5,969	)		(3,917	)
Other		122			4,599
Net Cash (used in) Investing Activities		(5,847	)		682
Cash Flows from Financing Activities
Payment on long-term debt		(3,000	)		(3,000	)
Line of credit borrowings (repayments)		-			(5,700	)
Payment of common stock dividend		(3,000	)		-
Other		(76	)		(4	)
Net Cash provided by Financing Activities		(6,076	)		(8,704	)
Unrestricted Cash and Temporary Cash Investments:
Net change for the period		3,523			5,904
Balance at beginning of period		5,993			370
Balance at end of period	$	9,516		$	6,274

6

THE BERKSHIRE GAS COMPANY

STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY

September 30, 2011

(In Thousands)

(Unaudited)

										Accumulated
										Other
	Common Stock				Paid-in		Retained			Comprehensive
	Shares		Amount		Capital		Earnings			Income			Total
Balance as of December 31, 2010		100	$	-	$	106,046	$	2,586		$	(7	)	$	108,625
Net income								3,409						3,409
Adjustment to goodwill						49								49
Other comprehensive income, net of tax											(16	)		(16	)
Payment of common stock dividend								(3,000	)					(3,000	)
Payment of preferred stock dividend								(2	)					(2	)
Balance as of September 30, 2011	$	100	$	-	$	106,095	$	2,993		$	(23	)	$	109,065

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