UIL (UIL) 8-K Regulation FD Disclosure

EXHIBIT 99.4

FINANCIAL STATEMENTS

OF

THE BERKSHIRE GAS COMPANY

AS OF SEPTEMBER 30, 2013 AND DECEMBER 31, 2012 AND

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED)

TABLE OF CONTENTS

	Page
	Number
Financial Statements:
Statement of Income for the three and nine months ended September 30, 2013 and 2012	3
Balance Sheet as of September 30, 2013 and December 31, 2012	4
Statement of Cash Flows for the nine months ended September 30, 2013 and 2012	6
Statement of Changes in Shareholder’s Equity	7

2

THE BERKSHIRE GAS COMPANY

STATEMENT OF INCOME

(In Thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013		2012
Operating Revenues	$	6,298		$	5,946		$	49,448	$	40,947
Operating Expenses
Operation
Natural gas purchased		1,704			1,179			22,501		16,861
Operation and maintenance		3,282			3,555			11,522		10,815
Depreciation and amortization		1,739			1,668			5,225		4,980
Taxes - other than income taxes		620			607			1,995		1,931
Total Operating Expenses		7,345			7,009			41,243		34,587
Operating Income		(1,047	)		(1,063	)		8,205		6,360
Other Income and (Deductions), net		303			347			767		1,682
Interest Charges, net
Interest on long-term debt		699			727			2,097		2,181
Other interest, net		-			1			5		5
		699			728			2,102		2,186
Amortization of debt expense and redemption premiums		29			29			88		88
Total Interest Charges, net		728			757			2,190		2,274
Income (Loss) Before Income Taxes		(1,472	)		(1,473	)		6,782		5,768
Income Taxes		(594	)		(589	)		2,621		2,130
Net Income (Loss)	$	(878	)	$	(884	)	$	4,161	$	3,638

THE BERKSHIRE GAS COMPANY

STATEMENT OF COMPREHENSIVE INCOME

(In Thousands)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Net Income (Loss)	$	(878	)	$	(884	)	$	4,161		$	3,638
Other Comprehensive Income (Loss), net		3			21			(25	)		45
Comprehensive Income (Loss)	$	(875	)	$	(863	)	$	4,136		$	3,683

3

THE BERKSHIRE GAS COMPANY

BALANCE SHEET

ASSETS

(In Thousands)

(Unaudited)

	September 30,		December 31,
	2013		2012
Current Assets
Unrestricted cash and temporary cash investments	$	2,163	$	2,032
Accounts receivable less allowance of $1,009 and $767, respectively		3,114		7,925
Unbilled revenues		682		1,615
Current regulatory assets		3,620		2,912
Deferred income taxes		-		909
Natural gas in storage, at average cost		4,030		3,908
Current portion of derivative assets		-		1,000
Prepayments		2,177		2,082
Other		741		736
Total Current Assets		16,527		23,119
Other investments		1,210		1,357
Net Property, Plant and Equipment		125,507		121,682
Regulatory Assets (future amounts owed from customers through the ratemaking process)		40,384		44,612
Deferred Charges and Other Assets
Unamortized debt issuance expenses		832		920
Goodwill		51,932		51,933
Other		-		7
Total Deferred Charges and Other Assets		52,764		52,860
Total Assets	$	236,392	$	243,630

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THE BERKSHIRE GAS COMPANY

BALANCE SHEET

LIABILITIES AND CAPITALIZATION

(In Thousands)

(Unaudited)

	September 30,			December 31,
	2013			2012
Current Liabilities
Current portion of long-term debt	$	2,393		$	2,393
Intercompany payable		2,000			7,000
Accounts payable		2,568			4,873
Accrued liabilities		6,100			5,893
Taxes accrued		5,300			3,911
Interest accrued		390			833
Total Current Liabilities		18,751			24,903
Deferred Income Taxes (future tax liabilities owed to taxing authorities)		24,850			25,312
Regulatory Liabilities (future amounts owed to customers through the ratemaking process)		26,313			26,863
Other Noncurrent Liabilities
Pension accrued		8,265			8,198
Environmental remediation costs		3,500			3,500
Other		11,538			10,353
Total Other Noncurrent Liabilities		23,303			22,051
Commitments and Contingencies
Capitalization
Long-term debt		34,777			35,479
Common Stock Equity
Paid-in capital		106,095			106,095
Retained earnings		2,312			2,911
Accumulated other comprehensive income (loss)		(9	)		16
Net Common Stock Equity		108,398			109,022
Total Capitalization		143,175			144,501
Total Liabilities and Capitalization	$	236,392		$	243,630

5

THE BERKSHIRE GAS COMPANY

STATEMENT OF CASH FLOWS

(In Thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2013			2012
Cash Flows From Operating Activities
Net income	$	4,161		$	3,638
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		5,313			5,058
Deferred income taxes		447			(410	)
Pension expense		1,432			827
Other non-cash items, net		915			82
Changes in:
Accounts receivable, net		4,569			4,536
Unbilled revenues		933			573
Natural gas in storage		(122	)		852
Accounts payable		(3,179	)		(2,705	)
Interest accrued		(442	)		(449	)
Taxes accrued		1,389			1,620
Accrued pension		(1,365	)		(859	)
Accrued liabilities		208			(714	)
Other assets		966			(113	)
Other liabilities		1,123			(359	)
Total Adjustments		12,187			7,939
Net Cash provided by Operating Activities		16,348			11,577
Cash Flows from Investing Activities
Plant expenditures including AFUDC debt		(6,604	)		(8,114	)
Other		147			41
Net Cash used in Investing Activities		(6,457	)		(8,073	)
Cash Flows from Financing Activities
Intercompany payable		(5,000	)		-
Payment of common stock dividend		(4,760	)		(5,000	)
Net Cash used in Financing Activities		(9,760	)		(5,000	)
Unrestricted Cash and Temporary Cash Investments:
Net change for the period		131			(1,496	)
Balance at beginning of period		2,032			2,474
Balance at end of period	$	2,163		$	978
Non-cash investing activity:
Plant expenditures included in ending accounts payable	$	884		$	238

6

THE BERKSHIRE GAS COMPANY

STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY

September 30, 2013

(Thousands of Dollars)

(Unaudited)

										Accumulated
										Other
	Common Stock				Paid-in		Retained			Comprehensive
	Shares		Amount		Capital		Earnings			Income (Loss)			Total
Balance as of December 31, 2012		100	$	-	$	106,095	$	2,911		$	16		$	109,022
Net income								4,161						4,161
Other comprehensive loss, net of tax											(25	)		(25	)
Payment of common stock dividend								(4,760	)					(4,760	)
Balance as of September 30, 2013		100	$	-	$	106,095	$	2,312		$	(9	)	$	108,398

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