UIL (UIL) 8-K Regulation FD Disclosure

Exhibit 99.2

FINANCIAL STATEMENTS

OF

CONNECTICUT NATURAL GAS CORPORATION

AS OF SEPTEMBER 30, 2015 AND DECEMBER 31, 2014 AND

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(UNAUDITED)

TABLE OF CONTENTS

	Page Number
Financial Statements:
Statement of Income for the three and nine months ended September 30, 2015 and 2014	3
Balance Sheet as of September 30, 2015 and December 31, 2014	4
Statement of Cash Flows for the nine months ended September 30, 2015 and 2014	6
Statement of Changes in Shareholder’s Equity	7

2

CONNECTICUT NATURAL GAS CORPORATION

STATEMENT OF INCOME

(In Thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015		2014
Operating Revenues	$	41,287		$	41,958		$	242,552	$	272,849
Operating Expenses
Operation
Natural gas purchased		11,635			14,087			114,372		149,434
Operation and maintenance		22,207			19,793			61,359		54,494
Depreciation and amortization		7,905			7,411			23,560		22,384
Taxes - other than income taxes		3,836			4,057			16,513		17,053
Total Operating Expenses		45,583			45,348			215,804		243,365
Operating Income (Loss)		(4,296	)		(3,390	)		26,748		29,484
Other Income and (Deductions), net		186			134			824		386
Interest Charges, net
Interest on long-term debt		2,185			2,323			6,556		7,109
Other interest, net		159			281			591		718
		2,344			2,604			7,147		7,827
Amortization of debt expense and redemption premiums		23			41			69		86
Total Interest Charges, net		2,367			2,645			7,216		7,913
Income (Loss) Before Income Taxes		(6,477	)		(5,901	)		20,356		21,957
Income Taxes		(2,234	)		(3,050	)		7,243		7,834
Net Income (Loss)		(4,243	)		(2,851	)		13,113		14,123
Less:
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests		6			6			20		(21	)
Net Income (Loss) attributable to Connecticut Natural Gas Corporation	$	(4,249	)	$	(2,857	)	$	13,093	$	14,144

CONNECTICUT NATURAL GAS CORPORATION

STATEMENT OF COMPREHENSIVE INCOME

(In Thousands)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015		2014
Net Income (Loss)	$	(4,243	)	$	(2,851	)	$	13,113	$	14,123
Other Comprehensive Income (Loss), net of income taxes
Changes in unrealized gains(losses) related to pension and other post-retirement benefit plans		-			-			128		-
Total Other Comprehensive Income (Loss), net of income taxes		(4,243	)		(2,851	)		13,241		14,123
Comprehensive Income
Less:
Preferred Stock Dividends of Subsidiary, Noncontrolling Interests		6			6			20		(21	)
Comprehensive Income (Loss)	$	(4,249	)	$	(2,857	)	$	13,221	$	14,144

3

CONNECTICUT NATURAL GAS CORPORATION

BALANCE SHEET

ASSETS

(In Thousands)

(Unaudited)

	September 30, 2015		December 31, 2014
Current Assets
Unrestricted cash and temporary cash investments	$	13,900	$	7,074
Accounts receivable less allowance of $2,000 and $3,300, respectively		45,808		64,266
Unbilled revenues		3,925		21,402
Current regulatory assets		14,196		13,761
Deferred income taxes		3,673		2,267
Natural gas in storage, at average cost		27,868		39,627
Materials and supplies, at average cost		1,562		1,252
Refundable taxes		1,154		1,510
Prepayments		2,969		1,021
Intercompany Receivable		5,000		-
Other		175		175
Total Current Assets		120,230		152,355
Other investments		1,719		556
Net Property, Plant and Equipment		530,850		501,297
Regulatory Assets		110,865		115,930
Deferred Charges and Other Assets
Unamortized debt issuance expenses		656		725
Goodwill		79,341		79,341
Other		234		-
Total Deferred Charges and Other Assets		80,231		80,066
Total Assets	$	843,895	$	850,204

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CONNECTICUT NATURAL GAS CORPORATION

BALANCE SHEET

LIABILITIES AND CAPITALIZATION

(In Thousands)

(Unaudited)

	September 30, 2015		December 31, 2014
Current Liabilities
Current portion of long-term debt	$	1,619	$	1,616
Accounts payable		29,283		59,515
Accrued liabilities		13,274		11,621
Current regulatory liabilities		15,925		4,346
Interest accrued		2,958		2,098
Taxes accrued		7,692		3,615
Total Current Liabilities		70,751		82,811
Deferred Income Taxes		18,359		18,589
Regulatory Liabilities		179,838		171,596
Other Noncurrent Liabilities
Pension accrued		58,381		61,024
Other post-retirement benefits accrued		12,690		13,390
Other		7,414		7,338
Total Other Noncurrent Liabilities		78,485		81,752
Commitments and Contingencies
Capitalization
Long-term debt, net of unamortized premium		140,558		141,773
Preferred Stock, not subject to mandatory redemption		340		340
Common Stock Equity
Common stock		33,233		33,233
Paid-in capital		315,304		315,304
Retained earnings		6,926		4,833
Accumulated other comprehensive income		101		(27	)
Net Common Stock Equity		355,564		353,343
Total Capitalization		496,462		495,456
Total Liabilities and Capitalization	$	843,895	$	850,204

5

CONNECTICUT NATURAL GAS CORPORATION

STATEMENT OF CASH FLOWS

(In Thousands)

(Unaudited)

	Nine Months Ended September 30,
	2015			2014
Cash Flows From Operating Activities
Net Income	$	13,113		$	14,123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23,629			22,470
Deferred income taxes		287			379
Pension expense		5,526			4,950
Regulatory activity, net		10,761			26,433
Other non-cash items, net		(2,717	)		157
Changes in:
Accounts receivable, net		19,758			21,235
Unbilled revenues		17,477			15,071
Natural gas in storage		11,759			(1,116	)
Prepayments		(1,948	)		(369	)
Accounts payable		(32,161	)		(26,210	)
Taxes accrued/refundable, net		4,433			(1,589	)
Accrued pension		(7,674	)		(7,167	)
Accrued other post-employment benefits		(1,195	)		(1,223	)
Accrued liabilities		1,653			6,844
Other assets		(544	)		1,124
Other liabilities		1,002			1,213
Total Adjustments		50,046			62,202
Net Cash provided by Operating Activities		63,159			76,325
Cash Flows from Investing Activities
Plant expenditures including AFUDC debt		(40,313	)		(35,069	)
Intercompany receivable		(5,000	)		4,000
Other		-			690
Net Cash used in Investing Activities		(45,313	)		(30,379	)
Cash Flows from Financing Activities
Distribution of capital		-			(42,100	)
Payment of common stock dividend		(11,000	)		(774	)
Payments on long-term debt		-			(10,000	)
Other		(20	)		21
Net Cash used in Financing Activities		(11,020	)		(52,853	)
Unrestricted Cash and Temporary Cash Investments:
Net change for the period		6,826			(6,907	)
Balance at beginning of period		7,074			8,620
Balance at end of period	$	13,900		$	1,713
Non-cash investing activity:
Plant expenditures included in ending accounts payable	$	6,509		$	3,307

6

CONNECTICUT NATURAL GAS CORPORATION

STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY

September 30, 2015

(Thousands of Dollars)

(Unaudited)

	Common Stock				Paid-in		Retained Earnings  (Accumulated			Accumulated Other Comprehensive
	Shares		Amount		Capital		Deficit)			Income			Total
Balance as of December 31, 2014		10,634,436	$	33,233	$	315,304	$	4,833		$	(27	)	$	353,343
Net income								13,113						13,113
Other comprehensive income, net of income taxes											128			128
Payment of commom stock dividend								(11,000	)					(11,000	)
Payment of preferred stock dividend								(20	)					(20	)
Balance as of September 30, 2015		10,634,436	$	33,233	$	315,304	$	6,926		$	101		$	355,564

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