CWC to Operate & Manage UConn's Systems
Date: Thursday, August 03, 2006

STORRS, CT, August 3, 2006 - Connecticut Water Service Inc.’s (NASDAQ: CTWS) subsidiary, New England Water Utility Services, was recently selected through a competitive bidding process by the University of Connecticut to provide for the total operation, management and maintenance of the University’s water systems at the Storrs and Depot Campuses. The University’s evaluation team determined that Connecticut Water’s technical proposal best met the requirements for the operation, maintenance and management of the University’s water systems. Connecticut Water and the University have signed an Operating Agreement for a two-year term with an option to extend it for two additional one-year terms. If extended for both additional terms, the value of the total agreement will exceed $1.75 million. In addition, Connecticut Water anticipates that it will be able to assist the University in providing needed capital improvements to the water systems during the term of the agreement. Connecticut

Water has been providing operating services to the University’s water systems on an interim basis since November 2005.

The new Operating Agreement provides for the continued use of an experienced senior operations manager who provides for the direct management and operations of the University’s water systems. It also calls for Connecticut Water to provide a certified water treatment plant operator to perform daily operations and water quality sampling and other water system duties such as cross connection inspections, system flushing, regulatory reporting and system improvement planning.

Eric W. Thornburg, president and CEO of Connecticut Water, said the company is honored that the University chose Connecticut Water to partner with and manage the University’s water systems. “We recognize that water is a precious resource and we pledge to dedicate our staff and expertise to address the current and future needs of the University,” said Thornburg. “We have demonstrated our commitment to provide high-quality service to UConn under the interim services agreement, and look forward to continuing to work to meet the University’s needs in the long term.”

“Connecticut Water submitted a superior proposal from the perspective of both service and pricing,” said Thomas Callahan, interim associate vice president for administration and operational services and special assistant to UConn President Philip Austin. “NEWUS has met our expectations and we expect that they will continue to do so through the duration of this contract.”

Connecticut Water has conducted a full review of the University’s water system, including operations and customer service practices, tested production meters for accuracy and made recommendations on capital improvement and major maintenance projects. The Company has also conducted a leak detection survey of the water systems to locate sources of lost water to minimize unnecessary demands on the University’s water supply sources.

New England Water Utility Services operates water and wastewater systems under contract for condominiums, schools, and municipalities, such as the towns of Durham, and New Hartford, Connecticut. It also provides specialized services such as leak detection, water quality monitoring, and cross connection inspections to various municipal, commercial and industrial clients throughout the State, as well as a water service line repair program for residential and commercial customers.

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Contacts:

Mary B. Ingarra, Connecticut Water -- 800-428-3985 Ext. 3014

Richard Veilleux, UConn -- 860-486-3530

 
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