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HomeMy WebLinkAbout2005030110th UWI Response Part 2.pdfUNITED WATER IDAHO INC. CASE NO. UWI-O4- FOURTH PRODUCTION REQUEST IPUC STAFF TT A C H MEN T RESPONSE TO REQUEST NO. 127 SEE CASE FILE FOR SPREADSHEE TS UNITED WATER IDAHO INC. CASE NO. UWI-O4- SIXTH PRODUCTION REQUEST IPUC STAFF ATTACHMENT TO RESPONSE TO REQUEST NO. 162 Tr a n s p o r t a t i o n E x p e n s e 20 0 5 N e w L e a s e s Mi l e a g e Le a s e Ne w Sa v i n g s Ex i s t i n g Ne w Da t e O l d Ve h i c l e # De p t Fu n c t i o n Ye a r Mo d e l 09 / 0 1 / 0 4 Pa y m e n t Le a s e Pe r M o n t h Le a s e Te r m Le a s e U p T& D Du m p T r u c k 19 9 7 Du m p 72 , 4 0 9 63 0 63 0 ) OW N T& D Ba c k H o e 19 9 9 41 0 E 02 8 85 4 17 4 7/ 3 1 / 2 0 0 5 T& D Ba c k H o e 19 9 9 41 0 E 21 4 5 02 8 85 4 17 4 7/ 3 1 / 2 0 0 5 10 3 Pr o d Fo r e m a n 19 9 9 15 0 56 6 32 1 (3 2 1 ) OW N 10 4 Pr o d Pu m p O p e r a t o r 19 9 9 35 0 23 5 72 1 04 4 (3 2 3 ) 3/ 3 1 / 2 0 0 4 10 5 Pr o d Pu m p O c e r a t o r 19 9 9 35 0 83 , 07 7 53 8 52 0 3/ 3 1 / 2 0 0 4 10 9 * Pr o d Pu m p O p e r a t o r 20 0 0 35 0 50 1 50 5 32 1 18 4 6/ 3 0 / 2 0 0 5 11 0 * Pr o d Pu m c O p e r a t o r 19 9 9 35 0 85 , 71 3 54 0 36 2 17 8 4/ 3 0 / 2 0 0 4 11 2 Pr o d WT P 19 9 1 15 0 0 85 , 32 1 34 7 (3 4 7 ) OW N 11 3 Pr o d Pu m p O c e r a t o r 19 9 9 35 0 70 , 4 0 7 55 0 52 0 3/ 3 1 / 2 0 0 4 To t a l m o n t h l y l e a s e c o s t 91 0 77 3 (1 , 86 3 ) We w i l l r e a l i z e a n a n n u a l f u e l s a v i n g s o f $ 7 0 5 . 00 p e r v e h i c l e . KB B Es t i m a t e d UW I D Ve h i c l e # Ye a r Ty p e Se l l l L o a n e r Di s D o s i t i o n W h o l e s a l e Wh o l e s a l e Re s i d u a l * * Ne t v a l u e Re t i r e Le a s e d 19 9 7 Fo r d Se l l Ow n 00 0 00 0 00 0 18 * * * 19 9 9 Jo h n D e e r e Se l l Le a s e 22 , 50 0 22 , 50 0 24 * * * 19 9 9 Jo h n D e e r e Se l l Le a s e 27 , 50 0 50 0 10 4 19 9 9 Fo r d Se l l Le a s e 90 0 52 0 40 7 11 3 11 3 10 5 19 9 9 Fo r d Se l l Le a s e 00 0 20 0 38 8 81 2 81 2 10 9 20 0 0 Fo r d Se l l Le a s e 11 , 00 0 00 0 10 , 00 0 (1 , 00 0 ) (1 , 00 0 ) 11 0 19 9 9 Fo r d Se l l Le a s e 00 0 20 0 54 3 65 7 65 7 11 2 19 9 1 Ch e w Se l l Ow n 50 0 20 0 20 0 20 0 11 3 19 9 9 Fo r d Se l l Le a s e 00 0 20 0 06 0 14 0 14 0 20 9 19 9 2 Ch e v r o l e t Se l l Ow n 90 0 52 0 52 0 52 0 19 9 2 Ch e v r o l e t Se l l Lo a n e r To t a ' O \ s p o s a l 53 , 30 0 98 , 84 0 67 , 39 8 31 , 44 2 72 0 72 2 20 0 5 D i s D o s a l V a l u e UNITED WATER IDAHO INC. CASE NO. UWI-04- SIXTH PRODUCTION REQUEST IPUC STAFF TT A C H MEN T RESPONSE TO REQUEST NO. 170 r t~-~j-UO WtU U 1 ; ~j rn ru.J!4-1 Utility Business Services r AX NU,t', U 1 ll.ct(. ~"\ rris AvenueU i nl NJ 07083 Tct: (908) 289~9433 Fax: (906) 289-6968 WWW.ubs-inc.com ~-- Unit&d Water Idaho Nancy Richman 200 Old Hook Road Harrington P~rk, NJ 07640 Deliver To: Nancy Richman 200 Ole! Hook Road Harrington Park. NJ 07640 . _.~ ... ~. .. " 0 ..___..---.- .. ' 0'____..-.'."". _0_. _____0 .,,~. ... ----- ...~... ... .0__-------P~ta: 12/31/2004 Number: 04122735 Account Number: AO1 01068 Payment Terms: Due On Rocolpt Refetance: Biltlng Period: Noy 27.. Cae 28, 2004 PE165012 PostagQ .. Expross Mail l\ : 19.61 N 19.P~165012 10 Postage.. Express Mall (r . 22.94 N 229,PE16S012 Po$taga.. Expres!i Mall 19.97 N 19.PE165012 Post"ge - Express Mail 24,32 N 72.PE165012 Po~tage ~ Express Mail 26.69 N 26.Pf;165012 Posta~e - Express Mail 12.90 N 12.PO165001 2,270 Postage-3 Digit Sort 0.292 N 662.pa16S006 34,473 Postage..5 Pigit Sort 0.278 N 9~583.PO165010 22~ Postage-Single Picco Presort 0.352 N 79.PO166011 832 Postage-SIngle Piece Non..presort 0.37 N 307.PO165009 2 093 Postage-Mixed AADC 0.309 N 646.PO16SQO8 711 Postage..AADC 0.301 N 214.OC560001 I 40 605 p(J~tal Softwar~ Service ChargEt 0.015 N 609.ACOOOOO1 '- 7,911 Arrears.. addtlletter ohargu 0,60 N I 4,746.BPfiO2060 I """41.946 Customer Billing Service Charge 0.72 I N 30 201. ~~\\\\'\~ \(~~~\.. y~~ /;; " o"-l"tl.\lna. "~d..'61:;1.. ~8 ~~ I ~ _-_., lr.o'ilEf\. .. I 'I. K):' 1;~~t?~-:"~.L(?\ \ l~.-----.. - . ~tal: ~ .____. ~;:~;o. ~;" - 000% SalGs Tax: 0,Grand Total; 47,520. Balance Due: 47,520.Paid Amount: 0. .-.._-~.. 0 0_- -~.. .-. .~O.'-_._o . .-.--......-...",... ..__n.__u_.......-_o-..--.---...,.,..-.., .-_u -----..-. .-. Checks should be made payable to Utilities Business Services, Inc. T(J~a1 Acco~nt B;:alanco: 89 611 t urr~nt: 69,617-32 . 31-60: 0,61-90: 0. .. Over 90: 0.00 , . '. ... \ r HJ\ NU, CU;/l-- IJI Utility Business Services ....r t.Jj-~~-utJ 1 Ut.r. Unite~ Wnt~r Idaho N;ln9Y Rlchm~n 200 Old 'iook Road Harrington Park, NJ 07640 6ilo 10B5 Manis AvOOUQ Ucm. NJ 07083 Tel: (906) 289-9433 Fax: (908) 289-0068 \WfW . ub$ -Ine , com ...., ..., Deliver To: Nancy Richman 200 Old Hook Road Harrington Park. NJ 07640 .,~,.......",..."., .......,.- .~ -...~.. .-.., ".. ".~- -,--- Account Number. AO101068Dat~; 01/3112005 Number: 05012818 Payment Torms: Due On Receipt Retfatftnc;e: Billing Period: 12/29/04.. 01126105 -.- --~._-..- -~ ,..,.... - .. .. .... Prod yet"Quantity "..... . .....- ,." d. - PE165012 PE165012 PE1G5012 PE165012 PE165012 PE1650i2 PO165007 700 POi 85006 27.689 PO165010 504 P9165011 559 165009 293 PO16500fJ 005 OC560QO1 33.840 ACOOOQO1 ....... 6,895 BP502060 """ . 35,100 _._-~--- '-0- ... , ...-...,-.--.. ....,. ..,.. ... .-- Checks should be made payable to Utility Business Services, Inc. ....----. ...- ..,-.---.. ,,-.,~ o_...... --- --. . --,.. . ....-,..- ProductDQscrlptlQn Comments Unit Price Extended Price ""'_U",.~"n...n~""""'- ~._-- 22.34 N 22. 27..47 N 27. 23.08 N 184. 24.98 N 149. 44.64 N 44. 18.69 N 18.292 N 814.278 N 7,697.352 N 177. \J 0.37 N 206. f7 ) 0.309 N 399.(~ 0.301 N 302... 0.015 N 507.60 N 4J 137. 0':'12 N 25,272. "Jl;? 1;' . ,- :-" " ;r f.i.~. (.),.. 1 ; . ..'" 1".. ~'OUNrs ~ :)~. "~ '1 /; . - Ul... : DL;opJ:. Q:.: ~_._~~~~. ~'~l.l .~.......~" ..-~... ~ ---" '_u_--.- - ':-._ ~... o ~ ro- ""O~'.h.O__- t') .. -. .. . . . . . --.. - Total .... .. - ,.,. . , 39,962,000% Sales Tax: O~Grand Total: 39.962. Balance Due: 39,962. Postage.. E)(press Mall Postage.. Express M.U Postage.. Express Mail postage. Express Mail Postaga - Express Mall PoJ5tage " Express Mail PostagCt-3 Digit Sort Post..go-S Digit So8j Postage-Slngle Piece presort Postage--Stngle Piece Noh-Presort postago..Mhc;ed AADC Postage-AADC Postal Software SeN~c(t Charge Arrears .. add'lletter charge Customer Billing SeNI-::e Chargu 'B" \\\~\ 4l)~ ?o~ -\~'\ \ D ,5'S~. Paid Arn(Junt: 0. -----'- .. -~ ,.,.... , ... ...--.-.---- -. . ..~. .,,~.... --. Total AcC:Qunt Balance: 39.9ij2. CJJrrentt 39/962.71. 31-60: 0. . ,. ~'. ' 61..90: 0.Over 90: 0.00 .. UNITED WATER IDAHO INC. CASE NO. UWI-W-O4-04 SIXTH PRODUCTION REQUEST IPUC STAFF ATTACHMENT TO RESPONSE TO REQUEST NO. 185 Idaho e\'Vs B Ii United Water Idaho June 2004 Columbia Water Treatment Plant Scott Rhead and Bill Carr Plant - Construction of the 6 MGD Columbia Water Treatment Plant is steaming forward. The treatment building floor slab has b~en poured and the 1.2 MG clearweillreservoir completed. Sedimentation basins have been excavated and construction workers are forming baffle walls. Just in time for the 2004 peak season, the 16-inch and 24-inch transmission mains are in service, enhancing pressure flows to east Columbia Village. These lines should alleviate the low pressure. spikes encountered last summer. UWID anticipates completion of the project by the target "" of June 1,2005. Pilot Plant - In a related project, U.S. Filter and CDM Constructors installed a small, pilot membrane filter plant the Marden site to test the new, ultra-filtration system planned for the Columbia Plant. Data gathered from this pilot project will provide infonnation required to secure DEQapproval. The pilot also will verify the ultra-filtration system s efficiency at removing particles from Boise River water andhandling the annual spring algae blooms. Columbia Plant Construction Site Ultra-filtration Membrane Pilot Plant Ultra-filtration membranes can remove particles as small as 0.005 micron, compared to the media filters used at the Marden Plant which remove particles only down to 0.1 micron. The membrane modules (the long tubes in the picture on the right) contain thousands of hollow fibers. River water is forced under pressure through the membranes, causing particles greater than 0.005 micron, including pathogens like Giardia Lamblia and Cryptosporidium, to be trapped and sent to waste. The purified filtered water travels through the hollow center of the membrane and is collected for use. Ultra-filtration membranes provide a robust barrier to physical contaminants and the water quality does not deteriorate during starts, stops and flow changes. Membrane plants lend themselves to remote monitoring with SCADA computers and do not require chemical pretreatment to be effective. The ultra-filtration process promises to provide excellent quality drinking water for customers under a wide array of river conditions. ....... """'l Iii "... 'lIB"I '""' n.......- """-- 1ft m .-, aho ~e~~ Blitz -"-""-~"'-'._------~--_--":~---'------'-_.----'--'-"---"-----..-.--------- !!Ix. 200~ 2004 Charity Auction a Success Thanks to the generosity of United Water s employees and the skills of auctioneer J.B. Salutregui, the 2004 Charity Auction was a tremendous success. The event added $11,513.50 to the charitable contribution fund including $10,292.50 from the live auction, several cash donations and receipts from the day-off raffle. Thank you, employees and vendors, for an outstanding effort. --~ =r- ""'--""""""'", """"""""" .~w.,,~.".,,= =--=~- ..-.""""'.--,- ~A "',"'"-"" .... Cotnpany Slats Em p loyee N ew-s ptember 2004United Water Idaho O&M and Non~Contiguous Agreements Change Greg Wyatt Eagle O&M Contract United Water Operations Idaho and the City of Eagle anticipate signing a new Operations & Maintenance (O&M) Contract September 14 to cover water service to more tb,an 1 200 customers in the Lexington Hills area and Brookwood Subdivision. The new contract helps the City of Eagle build a capital investment fund and provides United Water Operations with a stable revenue stream to continue to offer quality operational services. Greg Wyatt Under the new contract, the City of Eagle will receive all water revenues and pay United a set contract fee to operate and maintain the water system, read meters, bill and collect payments. This contract caps the cost United can incur for routine maintenance and shifts responsibility to the city for extraordinary expenses and capital additions, including customer meters. The City of Eagle approved a 40 percent increase in water rates to go into effect with the implementation of the new contract, allowing the city to build a capital investment fund for the water system and to cover water expenses not related to operations. Both parties view the new contract as "win- win. " /'. " F UWID acquiredEM , precursor to United Water Operations Idaho, in the mid-1990s and began providing operations and maintenance management to the system serving the Lexington Hills area. The original contract was revised in 1997 and provided for United Water Operations to receive all revenues and pay all operating expenses. The new contract resulted from negotiations initiated by the City of Eagle in 2002. Carriage Hill Non-Contiguous Agreement UWID and the City of Nampa entered into a Purchase Agreement in March 2004 for the sale of the Carriage Hill water system to the city to meet the development's need for additional source of supply. This transaction requires Idaho PUC approval. The company filed. an application with the Idaho PUC on August 9,2004, and anticipates a ruling by the end of October. If the Idaho PUC's ruling is favorable to UWID, the sale should close within 30 days of the decision and permit further development in the subdivision. "':" - ~ The Idaho PUC approved the Carriage Hill Subdivision Non-Contiguous Water System Agreement in March 1999 and the single source of supply well, associated equipment and Phase I distribution system were subsequently installed. Phase n distribution network was installed in 2002 bringing the system to 25 lots, the maximum allowed by Idaho DEQ for a single source of supply. In early 2003, Carriage Hill developers notified UWID that they were ready to proceed with further development but lacked sufficient funds to construct a second source of supply. At the developer s request, UWIDpursued an interconnection agreement with the City of Nampa. Although the city did not want an interconnection, it did express interest in purchasing the Carriage Hill system to connect to the city . distribution system. Nampa created a Local Improvement District to help finance the acquisition. The company also sought and received a waiver from Idaho DEQ to allow development of an additional 10 lots in the subdivision prior to installation of a second source of supply. Approximately 31 lots are currently connected to the Carriage Hill system. ,.",..""""""""~-.......""" Idaho News Blitz ptember 2004 Company Events Heart Walk Final numbers are in for the 2004 American Heart Walk. UWID teams recruited 54 walkers who raised a total of $5,508, far exceeding the first-year recruitment goals of 17 walkers and $2,700 in contributions. Congratulations for a great effort go to Jeff Lough, company leader, and his team, with special recognition to top money-raisers Linda D'Orazio and Miguel Castro. Start planning now for an even bigger event in April 2005. Conlpany Picnic UWID families invaded Boondocks for their own version of "Friday the 13th" on August 13. Employees, retirees and their families, 120 in all, enjoyed an All American Barbecue followed by a fun-filled evening of bumper boats, go-karts, miniature golf, arcade games and laser tag. Community House United Water recently presented a $10 000 donation to Mayor Dave Bieter to help support Community House. As Greg Wyatt noted, the company selected Community House because it touches people s lives in practical and meaningful ways. The Bill Carey family checks out Boondocks, COl11pany Slats E11t loyee News 2004 August Year-to..Date FinanciaIs (all amounts in thousand $) 2004 2004 Difference Actual Plan Operating Revenues $21,673 $23,211 ($1,538) Operating Expense $12,183 $13,656 $1,473 Operating Income $9,490 $9,555 ($65) Interest Expense $4,565 $4,498 $( 67) Income Taxes Net Income $4,925 $5,057 ($132) 2004 YTD Training Hours: Safety 408 Technical 475 General 283 Mgt. Development 123 Customer Recognition Rick H eckenlively Special thanks were sent to Rick Heckenlively for going the extra mile to help a 78-year-old cancer survivor. Rick not only shut the water off so the customer could repair a leaking faucet, he also guided his family through the repair. Great job, Rick! New Employees Paul J ozwik - Mechanic Paul comes to UWID from Western States Equipment Company where he specialized in the repair and overhaul of Caterpillar truck engines. He brings over 10 years of experience as a mechanic. In his spare time, Paul is a serious cyclist. Michael Wilson - Accounting Clerk Michael joined the Accounting Department in August. A graduate of Lewis-Clark State College, he brings four years of experience in accounting and a strong background in Excel and business applications. Customers - Employees - Efficiency July 18, 2003 On Wisconsin! United Water Milwaukee recently received the results of an audit that reviewed its operation of Milwaukee Metropolitan Sewer District (MMSD) facilities. The audit validates United Water performance as one of the nation s top-performing wastewater treatment operators and acknowledges the professionalism of our Milwaukee team. The audit focused challenging areas such as flow management and treatment practices, minimizing the possibility of bypasses and establishing benchmarks against industry standards. This review provides both partners with an objective evaluation of system performance and presents issues to consider regarding further efforts that may enhance quality and service and build an even more robust and effective partnership. The MMSD system is among the nation s largest and most complex. Under United Water management both treatment plants have received the Association of Metropolitan Sewerage Agencies' (AMSA) Platinum Award for five consecutive years of 100 percent effluent compliance. The MMSD-United Water partnership has helped the District achieve savings in excess of $66 million over the first five years of the contract. At the same time, performance has consistently improved. Congratulations to the Milwaukee team on a job well done. Productive Teamwork Springfield As part of SUEZ' worldwide action plan for 2003- 2004, United Water has been reviewing those of its O&M operations which have not been sufficiently profitable. The objective is to identify ways to improve the projects' performance and efficiency and, if appropriate, to correct.aspects of the contracts. The first review to be completed focused on the Springfield, MassachusettsO&M operation in the East region. It identified potential for major operational improvements and for financial recovery. With these improvements, the project is now expected to reach profitability between 2004 and 2006. The Springfield review was performed on a very tight sch~dule in just over two months by the local management team, together with a multidisciplinary group including a PERFORMAX team, technical specialists from both United Water and SUEZ Environment, and members of the corporate legal and financial departments. It demonstrated the value of pooling skills and expertise from the project level clear across the Group to the corporate departments of United Water and SUEZ Environment. Other reviews are underway and on schedule in Gary, Laredo, and Milwaukee. Sbi United Water 1(. .. UWNY Adds AquaDAF An innovative water treatment system that improves water quality and water processing is now online at United Water New York's Lake DeForest Water Treatment Plant. The technology upgrade-AquaDAF-uses dissolved air filtration and is licensed by Ondeo Services. Several such units are in use in Ondeo s worldwide system, but this is the first installation in the United States. The new technology will enable the Lake DeForest plant to provide customers comfortably with up to 20 MGD of high-quality water. AquaDAF is particularly well suited to handle problems such as algae or storm events that decrease water clarity. It will enable UWNY to treat more water during heavy use periods in the summer, which will result in better tasting, higher quality water. The company provides drinking water to about 260,000 people in Rockland County. What's On Your Mind? CEO Tony Harding has taken his What's On Your Mind?" meetings on the road. He recently visited employees in California and Idaho where he outlined his views on values necessary for a leading water business. Harding also discussed the need to establish a stable and consistent framework for performance based on values, behaviors and results. Following his presentation, he encouraged employees to ask questions about things that are on their minds. Both the questions and answers have been frank and have covered a wide variety of subjects. Harding has also visited employees in the Metro NJ/NY and East regions and plans to hold "What's On Your Mind?" meetings throughout the rest of the company over the coming months. Color Us Ora nge United Water began its public-private partnership with the City of Orange Township, NJ, on June replacing the East Orange Water Commission. The company will operate and maintain the city water production and treatment water distribution, wastewater collection and storm water collection systems. The water system is comprised of five ra"W" water wells, two finished water wells, a water treatment and pumping facility, a 6 MGD reservoir and several finished and raw water interconnections. This is a great example of "proximity" growth: providing new additional services near our existing operations. Happenings In Harrisburg If you re looking for the United Water Pennsylvania Customer Service Center, you ll find it in a new location. The entire move was handled in-house over Memorial Day weekend--May23-25. Many action items needed to be accomplished by the transition team in a very short time frame. At the time of the move, the team was also setting up a new phone system. Shortly after, they created an account for the City of Orange and transitioned Camden Water to the WINS/2 System. With a customer base of over 75,000 (including PA, Orange and Camden), the eight customer service representatives and their manager met these challenges in the timely manner needed to make this transition a success. Congratulations for a real team effort to IT, Customer Service, the UWPA team and everyone involved in making things happen in Harrisburg. SIJ;;UnitedWater 1(" .. Customers - Employees - Efficiency August 26, 2003 Lights Out! On Thursday, August 14, the Northeast experienced a widespread power outage which affected several United Water facilities. Our employees responded promptly and professionally to this serious situation. Many worked through the night to ensure that customers had an adequate and safe supply of water. It was the second" all-nighter" in a short period of time for United Water Jersey City employees. Just a weekearlier, a lightning strike caused a failure to a power grid supplying their water treatment plant. Despite hot and humid conditions, they were able to meet customer needs and maintain water quality under challenging circumstances. After the August 14 power failure CEO Tony Harding visited a number of employees in the Metro Region to thank them for a job well done. Do The Right Thing United Water provides essential services for millions of people. Therefore, it is essential that we deliver these services in a manner which fully complies with the letter and spirit of all laws that apply to Qur operations. While some decisions are clearly black and white, there may be times when you have questions about" gray" areas. You may also have questions about reporting improper conductor whether we re conducting company business in an ethical manner. During those times, you are encouraged to bring your concerns to any member of United Water s management team. In addition, you may also contact any member of the Ethics Committee. The Ethics Committee is subcommittee of the Board of Directors Audit Committee. The individuals below will take your call and respond to your question or investigate your complaint. If you ever have questions about ethics, please call1800 6644552 and ask to speak to: Xavier Boulat, EVP and Chief Financial Officer, Ext. 2877 Bob Gerber, VP, Legal and General Counsel, Ext. 2854 Ann Koesterer, Director, Internal Audit, Ext. 4247 Todd Wohler, SVP, Human Resources, Ext. 2880 If you do not want to disclose your name, you may call the Ethics Hotline at: 1 877 ETHICSS or 1 877 384 4277. MT Update The Executive Management Team met at Harrington Park on August 19. Among the topics discussed were: Emergency Response Preparedness All EMT members agreed that the teams on-site at the United Water facilities affected by the August 14 power outage had done an excellent job of maintaining service throughout the night until all power sources were in working order. In discussing the company s preparedness for dealing with similar serious situations, the EMT identified two key areas which need to be addressed. A comprehensive review of standby power generation facilities at all United Water sites will be conducted. And the company s existing technical, operational, and communications emergency response procedures will be updated, simplified, and consolidated before the end of the year. SI),8~r Urn ted Water 1(- .. Health & Safety Alan Thompson, Vice President of Infrastructure Management, presented the new United Water Health & Safety policies manual, which has just been completed and will be distributed throughout the company over the coming weeks. The next step is to ensure that the company Health & Safety policies become a component of every employee s measurable professional objectives. Optimax The EMT agreed to set aside a full day on September 5 for a meeting to discuss and evaluate the results of the business reviews conducted during the summer in Milwaukee, Laredo, Springfield, Gary, and New Jersey. The reviews were conducted as part of the Suez Optimax program, which is focused on reducing debt and improving profitability throughout the Group. Finance and Budgets United Water began the year with an ambitious budget which included revenue assumptions based on rapid external growth. In the spring, the new management team reassessed the company financial objectives in the light of the Suez action plan. This focused mainly on improving performance of our core businesses and achieving " a new set of objectives approved by the management of Suez Environnement. Although every effort has been made to keep the company on track to achieve V2, several factors have made the task more difficult, especially this summer rainy conditions in the Northeast, which have had a significant impact on revenues. To ensure that United Water meets its objectives, the EMT committed for the remainder of 2003 to take all appropriate action to respect V2 requirements. This includes reducing non-essential costs, such as certain consulting fees and certain travel expenses. In order to avoid the time lags that affected decisions on this year s budget, the EMT also committed to a strict timetable for the 2004 budgeting process. All regions and corporate functions have already submitted their preliminary budgets to United Water s Finance group, which is now working on establishing an achievable target for operating income growth. The key dates for the budgeting process are: September 26-Submission to Suez En vironnemen t of the 2004 budget and the 2005-2007 Medium-Term Plan October IS-Deadline for all detailed region, business unit, and corporate support budgets November I-Finalization of all budgets. The United Water Financial Operations Management Booklet, which explains the company s financial and administrative policies, has been completed. The document is intended to offer management guidance and to promote strong management discipline across the entire United Water organization. Xavier Boulat, Chief Financial Officer, gave copies to all EMT members. Booklets will be distributed to all managers throughout the company. Political Action Committee Joe Simunovich, Chairman of United Water Political Action Committee (PAC), and Ulises Diaz, VP of External Affairs, made a presentation to review the role and mechanics of the PAC. While is often useful for corporations to make contributions to candidates for federal or state offices who support their interests, they are not permitted to make political contributions on a federal level, and can do so only on a limited basis on a state level. PACs provide corporations with a mechanism for making such contributions. United Water s PAC was formed in 1994 as volunteer, non-profit employee political action committee and has, over the years, helped the company develop and maintain relationships important to its business. The company is required to report regularly to the Federal Election Commission. and various other state election commissions on the PAC's activities and contributions. EMTmembers will soon be receiving the most recent data and will be spearheading an effort to communicate information on the PAC and its importance, through their management teams, to eligible employees. Sbfl~r United Water 1(. .. Information Please The Information Technology Department is playing a key role in providing tools that will help United Water meet its challenging business objectives. Executives Tony Harding, Mel De Vogue, Hans Schenck, and Xavier Boulat recently discussed these objectives at the project kickoff which was held for United Water finance managers. These include cost control and increased business functionality as well as standardized business processes and procedures. The ITlFinance team is currently implementing system changes that will enable United Water to respond to increasingly complex financial management and reporting requirements. One major component of this plan involves creating a single integrated financial system. As a result, all operations using the Solomon system will be migrated to the current PeopleS oft system by the end of the year. This will simplify consolidation and reporting and provide a uniform platform for all PeopleSoft functions within United Water. It will also provide a single starting point for the PeopleS oft upgrade which will occur in 2004. Payroll Changes United Water will begin converting its Solomon payroll systems to a single PeopleSoft system in mid-September. The conversion, which should be completed by year-end, affects United Water Services companies and U.S. Water companies. Employees who currently see three separate deductions on their paycheck (one each for medical, dental, and vision) should note that these will be combined into one deduction. The total amount deducted will not change. In addition UWS and U.S. Water employees will receive two 2s in January, 2004-one for earnings received under the Solomon system and one for earnings received under the PeopleSoft system. There will be no change in total taxes deducted because of the conversion. Employees who will be affected by this change will receive additional information in September. Thirsty for Knowledge? If you have a thirst for knowledge about United Water, the information you need is coming soon. In the very near future, we ll be launching the new" Quench, United Water employee intranet site. Look for more information about the launch date in your e-mail. In order to minimize traffic during the launch, we re rolling Quench out to one region at a time. Human Resources and Information Technology will be the first departments to go online. Their sites will offer easy access to forms, policies, organizational charts, and much more. During the next several weeks, we ll be testing the new look and feel of Quench and making changes based on your input. Once we get your feedback, we begin adding other departments and region information. Our goal is to provide you with easy access to the tools and information you need to do your job more efficiently. From The U.K. To The U. CEO Tony Harding recently addressed The National Association of Regulatory Utility Commissioners (NARUC) at their summer meeting in Denver. NARUC' smembers include the governmental agencies that are engaged in the regulation of utilities and carriers in the fifty states, the District of Columbia, Puerto Rico, and the Virgin Islands. Harding s presentation, "From the K to the U.S: Priorities for United Water, outlined the regulatory environment in the U. and compared it to that of the U.S. He also defined United Water s priorities for the year ahead. NARUC regards United Water highly," said Harding. "This was a great opportunity for me to meet the commissioners, to share our professional experiences, and to advise them of United Water focus on customers, employees, and efficiency. Calendar September 16-EMT meeting September lS-Board of Directors meeting Sh;,109 Star United Water 1(. .. Customers - Employees - Efficiency September 23, 2003 Water, Water Everywhere re in the business of managing water under all types of circumstances. And when Mother Nature recently tested our skills, United Water personnel rose to the challenge. Over Labor Day weekend, record downpours affected our operations in both Indianapolis and Plainfield, Indiana. The Belmont and Southport plants, which treat 180 million gallons of combined sewage on an average day, were handling 350 million gallons during the emergency. The garage at the collection facility was flooded with five feet of water and employees worked to remove equipment while other crews worked non-stop, monitoring lift stations and taking care of back-up complaints, underpasses, overflows and rain routes. Pennsylvania s Reeser s Estates and Susquehanna systems. As a result, a boil water advisory was issued for about 400 customers served by those systems. Yet again, United Water employees have demonstrated their commitment and skill for getting the job done under difficult circumstances. United Water Board Meeting United Water s Board of Directors held a regular quarterly meeting on September 18 at Harrington Park. The Board members discussed a range of subjects, including reports from the Audi t and Compensation Advisory committees, year-to-date financial results, and initiatives related to health. and safety issues. . On September 15, remnants of Tropical Storm Henri created some of the worst flooding conditions on record in Delaware. In fact, a flash flood resulted in the emergency evacuation of United Water Delaware personneL A small crew remained at the plant and maintained contact with other employees throughout the emergency. Although waters from the Red Clay and White Clay creeks threatened our facilities, the staff was able to return to work the following morning. And, finally, Tropical Storm Isabel arrived with less force than expected on September 18. A few facilities experienced brief power outages with no interruptions of service. However, a power outage resulted in low pressure in United Water The Board recognized the good work performed by on-site teams in the Metro and East regions during the August 14 blackout. The CEO' recommendation to review seriously our standby generation capacity and emergency response procedures was fully endorsed by the Board. The results of the Optimax review, which had been carried out over the summer period, were a main agenda item. In preparation for the Board meeting, the EMT met on September 5 to provide input to the recommendations made by the Optimax team following its review of United Water s largest regulated and non-regulated businesses. The Board received a presentation on these recommendations and agreed that best S!Je~r UnitedWater 1('eo efforts should be made to improve those contracts that do not provide optimum frameworks for operational and financial performance. A large part of the Board meeting was devoted to a full report by Tony Harding on his initial impressions of issues and challenges at United Water. He stressed the company s need for a clear direction in the wake of the many changes in organization, leadership, and focus that it has undergone during the pastfew years. Harding noted several key priorities for improvement: establishing clear parameters for measurement and delivery of customer service asset management planning, including the determination of the right level and priorities for capital investment design and implementation of an up-to-date managemen t information system developing a better approach to procurement He also stressed other important areas for attention, including: security and emergency preparedness employee support and development the need for targeted external and community relations increased involvement in the development of regulatory policy To address all of these issues, as well as the question of United Water s focus going forward, Harding proposed the development of a medium- term Strategic Plan that would set a clear direction for the company and would include key objectives, prioritized action plans, and measurable targets, against which everyone in the company can follow our progress. It would also specify a performance framework setting out how individuals and teams should work together to achieve results. The Board agreed, and the first draft of United Water s Strategic Plan will be presented at the next Board meeting on December 16. Key Dates September 26-Submission to Suez Environnement of the 2004 budget and the 2005-2007 Medium-Term Plan followed by a formal presentation to Suez Environnement senior management on October 15. . OctoberlS--Oeadline for all detailed region,business unit, and corporate support budgets. November I-Finalization of all budgets. December I6-United Water Board meeting. Suez News Gerard Mestrallet, Chairman and CEO of Suez, recently recorded a 13-minute webcast for employees in North America. He summarizes the Group s activities for the first six months, reports on the 2003-2004 Action Plan and describes Suez strategy and scope. To view the video, please navigate to P:\Suez\suez webcast 2003.wmv. The sound quality is not ideal, so if you prefer, you can read the transcript in the Quench announcement" section. To find Quench, just type "quench.unitedwater.com" (no quotes) into your web browser. Check with your supervisor you need access to a computer. What's On V our Mind? Earlier this year CEO Tony Harding implemented his series of What's On Your Mind?" meetings. So far, Harding has visited employees at locations the Metro NJ/NY and East regions as well as in California and Idaho. While he has had a full calendar during these last several weeks, Harding plans to get "on the road again" in November to resume visiting locations in the West and East regIons. On The Move During the weekend of September 13, United Water began the first of a series of moves that will bring together the Metro Region team (presently in rented offices at Oradell) and the Corporate functional teams into one location in Harrington Park which is owned by the company. This will enable the groups to work together more closely, reduce external leasing costs, and make more effective use of space. Sb8~r United Water 1(. .. During Phase One, the EMT relocated from the oversized executive wing into more suitably sized offices. This will open the " old" executive area to accommodate a larger number of employees. Other moves will occur in phases throughout this year and into the first quarter of 2004. Quench United Water s "new" employee intranet has been launched. Human Resources and Information Systems are the first departments to go online. You can visit their sites for easy access to forms, policies, organizational charts and much more. To enter the Quench site, just type quench. unitedwater .com" (no quotes) into your web browser. Don t forget to send your feedback to the webmaster. Once we get your ideas on the look and feel of the new site, we ll begin adding other departments and region information. Diving Right In If someone told you that there was a diver in your sewer system last week, you might not believe it. But that's exactly what happened at United Water Milwaukee on September 16 and 17. Over the course of two days, divers were 300 feet below the surface inspecting the Milwaukee Metropolitan Sewer District's lnline Storage System (ISS) as part of a scheduled maintenance program. Contract Ratified The bargaining unit of United Water New York, members of IBEW (International Brotherhood of Electrical Workers) Local 363, ratified a new four- year agreement with United Water on Thursday, September 19. Local 363 represents 64 employees who provide water service to 260,000 people in Rockland County, NY. "United Water and Local 363 have successfully concluded negotiations that will benefit our employees, our customers and the company," said Bob Iacullo, president of the Metro Region. "d like to thank all the members of the negotiating teams for their efforts. I look forward to continuing the positive working relationship that we have historically had with Local 363. The tunnel system is 19 miles long and ranges up to 32 feet in diameter. It helps protect waterways during heavy rain events by holding up to 405 million gallons of waste-water until it can be accepted by the treatment plants. If the same amount of wastewater were stored in railroad tank cars, it would be contained in two trains stretching from Milwaukee to Chicago. Last week, with about 30 million gallons of water in the tunnel system, divers entered pump chambers to begin the visuaVvideo inspection. Next, they performed a power wash using high-pressure hoses to remove built-up sediment. After the divers surfaced, the 4,500 horsepower pumps were turned on to remove the loosened sediment. This process was repeated several times for three pumps which each have a capacity of 50 million gallons per day. The final ISS inspection report is still forthcoming. United Water s maintenance programs, including the ISS inspections, have helped the Milwaukee project earn a place among the nation s top ten performing wastewater facilities. log Star United Water 1(' .. United Way Kick-off United Water New York and United Water New Jersey kicked off their United Way campaigns last week. "I believe that it is time for our company to reinforce the fact that we see ourselves as real members of the local communities we serve," said CEO Tony Harding. "I plan to demonstrate this personally by rolling up my sleeves and taking part on the Corporate Day of Caring." He encouraged employees to help United Way on October 3 by volunteering to renovate a Habitat for Humanity home or do site clearing for the Teaneck Conservancy in Bergen County, NJ. UWNY employees have been asked to spruce up facilities for Jawonio, an organization dedicated to improving the well being of people with disabilities. In addition to "hands on" help, UWNJ/UWNY have established a financial goal of $15,000. Serving It Rig ht On Monday September 22, the Metro Region Customer Service group gathered at the Haworth Water Treatment Plant to celebrate the progress they have made as they strive to build a top- quality call center. Located at Moore Street in Hackensack, NJ, the team made many changes over the past several months, with the intent of improving customer satisfaction, enhancing training and increasing productivity. The event included remarks by Bob lacuno, Hans Schenck and Jim Glozzy. It was followed by a tour of the plant in order to give the Customer Service Reps a better understanding of United Water s business so that they can better serve the customers who contact them each day. A barbecue concluded the event, giving the representatives an opportunity to relax and enjoy some down time" with their colleagues. Members of the development and training team also handed out awards to several CSRs to recognize their efforts in documenting the processes that Customer Service follows each day to serve United Water s customers. These process designs evolved into the training courses that are currently being delivered to the CSRs. S1J8~r United Water 1(' .. Customers - Employees - Efficiency October 28, 2003 Customer Service Week Customer service is often the key that distinguishes an ordinary company from a great one. In order to acknowledge the important role that customer service representatives play in business, the International Customer Service Association introduced National Customer Service Week in 1988. This year, Customer Service Week was celebrated across the country during the week of October 6. In 1992, the U.S. Congress declared Customer Service Week a nationally recognized event. President George Bush, proclaimed" . . . the most successful businesses are those that display a strong commitment to customer satisfaction. If the United States is to remain a leader in the changing global economy, highest quality customer service must be a personal goal of every employee in . business and industry. " At United W ater~ about 130 individuals are on the front-line of our customer service effort," said CEO Tony Harding. "For most of our customers, these men and women are the face and voice of United Water. I'd like to thank our representatives for their hard work and professionalism. One of my goals is to enhance further our ability to improve customer satisfaction. Our customer service team will playa key role in helping United Water achieve 'best in class' service levels. The X Plan United Water s Employee Discount Car Purchase Program (X Plan) makes shopping for a car a little easier. The X Plan allows United Water employees to take advantage of special discounts on Ford, Lincoln, Mercury, Mazda, Volvo, Land Rover or Jaguar vehicles. Just log onto www.fordpartner.com or call the Ford Information Hotline at 1 877 975 2600. You need to provide United Water s Fleet ID code (UH329) in order to receive a personal identification number (PIN). Then simply visit your local dealer with your PIN and identify yourself as a Partner Recognition participant. Once you ve provided proof of employment and selected a vehicle, you willbe shown the dealer invoice. The X Plan is a predetermined discounted price afforded to United Water employees. It entitles participants to incentives which result in substantial savings. EMT Update The Executive Management Team (EMT) met at Harrington Park on October 22. Among the topics discussed were: Emergency Preparedness United Water employees have responded to difficult challenges during recent power outages, tropical storms and floods. These events have also shown us that we need to improve communications between the business units, the corporate office in Harrington Park and the Suez corporate office in Paris. As a result, the EMT agreed to implement a new emergency notification procedure. As part of this plan, a member of senior management will be on-call hours a day. He or she will serve as the primary corporate contact in the event of a major S~8~r UnitedWater'1("e. emergency in any region. The region presidents have advised their management teams that they must notify the emergency coordinator when a serious emergency occurs. The goal is not only to improve communications but also to help provide regional operations with additional resources they may need to manage emergencies. Individual business units are in the process of preparing or updating their technical and operational emergency response plans, with the goal of completing them by the end of this year. Budget On October IS, a team led by Tony Harding presented United Water s proposed 2004 budget and medium-term plan to the Suez Environment management team. Although Suez Environment has not yet provided a complete feedback report, the two teams agreed on the main strategic assumptions underlying the financial proposals. United Water will submit further detail and analysis on certain points within the next few days. The EMT will then meet on November 12 to resolve a few remaining issues related to projected expenditures. Customer Service Right On Cue Customer service representatives (CSRs) at United Water New Jersey are right on schedule for speedier service. The team is centrally located at the Moore Street call center in Hackensack. Under the current structure, designated representatives handle phone calls exclusively for eitherUWNJ, UWTR, UWJC,UW Hoboken, UW Midatlantic, UW Rahway,Kearny or UWTR customers. If one particular company representative is busy, customers from that company have to wait their turn for service. Under the new system, calls will be routed to the next available representative who will have access to records for all eight companies. The consolidation of the phone queues at Moore Street is scheduled to take place on Wednesday, November 5. This involves the removal of the splits" that currently designate certain customer calls for specific CSRs assigned to each company. Removing the splits -- i.e., allowing all calls to be routed to CSRs according to their availability -- will reduce customer wait time and allow the CSRs to handle an additional 300 customer calls each day. This will also enhance productivity by creating more balanced call distribution and reducing the paperwork backlog. In preparation for the consolidation, the CSRs have been attending in-house training classes on all facets of customer service across all the local United Water companies they serve, ranging from rate structures to billing and payments to customer care. The classes accommodate up to six CSRs per day, so while those CSRs are in class, the rest of the staff have stepped up to make sure that customers' requests are still handled in a consistent and timely manner. The EMT noted that the Moore Street team s hard work and flexibility will enable the company to achieve new levels of service for NJ customers. Strategic Plan At the last United Water Board of Directors meeting, Tony Harding promised to present the first draft of a medium-term strategic plan at the next meeting on December 16. A small team has been assigned to the task and is now working on preparing the draft in advance of the scheduled date. Kudos Success In Springfield On October I, Springfield employees provided a Performax update to CEO Tony Harding and Mike Belsante, president of the East Region. James Hill, Mickey Nowak, Kevin Carney and Rocky Caplette gave presentations on the initiative s eighth-week benchmarks. They identified early successes that include developing consensus on priority utilization between operations and maintenance, daily/weekly operating reports, and updating standard operating procedures which were driven by operational changes and capital projects. All employees at the Springfield Project have been involved in the Performax process. Under the direction of Oleh Dzydzora and Terry White, they S~8~r United Water 1~. .. receive training on the value and use of the quality performance tools as well as the processes for identifying critical indicators that measure performance and/or system response. The team then taught how to determine what actions they may take to have the desired system response, so that control strategies can be implement- ed. The long-term goal is to have the most efficient operation from both a compliance and a cost perspective. Congratulations to the Springfield team for making great strides in. a short period of time! An Extra Mile In Milwaukee Kudos to United Water Milwaukee employees Earl Kloss, George Tucker and Kathy Kloss. They were recently recognized for consistently going the extra mile" on behalf of their company s summer internship program. This is the third year that Washington High School students have participated in the program. They worked with employees in the maintenance/custodial, warehouse, information technology, and a combinatio~ of maintenance management system and accounting departments. The Summer 2003 program introduced a rotating work site schedule for maintenance/custodial interns and improved the job-shadowing experience by allowing the interns to work alongside electricians, the network systems administrator, the maintenance manager and engineers. Soaked In Springfield It was a dark and stormy day when club charter members Kevin Gervasini and Charlie Robinson were faced with a sudden downpour on September 28, 2003 that produced more than four inches of rain at the Bondi Island Facility. Nominated by their supervisor, Kevin and Charlie were recognized for work accomplished under extraordinary circumstances. They received an official certificate inducting them into the elite Drowned Rat Club!" Club membership is likely to grow since United Water employees always rise to the challenge of wet and wild weather. It seems the Hydro Management team maybe the next to join! Hydro Management Survives Isabel Hurricane Isabel plowed into North Carolina with 100 mph winds, flooding roads and knocking out power for more than 2.5 million people. But our team in North Carolina was able to maintain operations and services to our customers. throughout the state. With North Carolina in a state of emergency, Gary Stainback (director of operations for Hydro Management Services, which was a part of the US Water acquisition last year) and a dedicated team of employees demonstrated their skill for getting the job done under extreme conditions. Thanks for the great work! DAF Dedicated On October 24, United Water New York officially dedicated its new AquaDAF system at the Lake DeForest Water Treatment Plant in West Nyack. The dissolved air filtration (DAF) technology uses air to float sediment and algae to the surface for removal. This improves the quality of water provided to customers and has increased the facility s capacity from 10 million gallons per day (mgd) to 20 mgd. The new AquaDAF technology upgrade is licensed exclusively in the United States by Suez Environment. Although several units are in use throughout the world, this is the first installation in the U.S. "This project at our Lake DeForest plant is a prime example of how our customers in Rockland County benefit from the expertise of our parent company," said Bob Iacullo, president of the Metro Region. Rockland County Executive C. Scott Vanderhoef was among the officials who attended the event. He acknowledged the importance of the DAF Sb:ct~r United Water 1(- .. project to the county s water supply. United Water New York provides drinking water to about 265,000 people in Rockland County. A Beautiful Day About 30 employees at United Water Delaware rolled up their sleeves for "Cleanup and Beautification Day" on Friday, October 17. The volunteers spent the day sprucing up the buildings and surrounding grounds. Some projects required field personnel's expertise and skills in the more labor intensive tasks such as removing root bound and dead bushes and trees, cleaning gutters and parking lots, and power washing the entrance. Other employees planted flowers, weeded, mulched, decorated inside the building or prepared and fed the gang a delicious breakfast and lunch. They even made UWDE scarecrows! At the end of the day, the place looked great and everyone enjoyed the camaraderie they shared. The hard work ended with a small social with even more food and a raffle with plenty of prizes for those who participated! The event was a wonderful success and UWDE's employees are already buzzing with ideas for spring projects. United Way Day of Caring Metro NJ/NY employees were out in force for United . Way Day of Caring" on October 3. S1lfl~r The program partners local businesses with nonprofit organizations that need a little elbow grease" to fix up their facilities. In New York, our employees spruced up grounds for Jawonio, an organization dedicated to improving the well being of people with disabilities. In NJ, some employees helped clean up Palisades Interstate Park, while others, including CEO Tony Harding and EMT members, helped rehabilitate a Habitat for Humanity home. "Volunteering helps to reinforce the fact that we at United Water see ourselves as real members of the local communities we serve," said Harding. Key Dates November I2-Special EMT meeting focused on remaining budget issues November IS-EMT meeting December 9-EMT meeting December I6-United Water Board meeting Ethics Hotline Employees who have questions or concerns about ethics-related issues are encouraged to discuss these matters with their supervisors. You may also call The Ethics Hotline at 1877 ETHICSS. Safety First The National Safety Council reminds us that the major Halloween dangers are not from witches or spirits but rather from falls and pedestrian/car crashes. Here are a few reminders from the NSC: Watch for children walking on roadways, medians and curbs Use reflective tape on costumes and give your kids flashlights Review trick-or-treat safety precautions, including pedestrian/traffic safety rules Pin a slip of paper with your child's name, address and phone number inside a pocket in case the youngster gets separated from the group For a complete list of Halloween safety tips, visit the NSC at http://www.nsc.orgilibrary/facts/haloween. United Water 1(" .. Customers - Employees - Efficiency November 26, 2003 Information Please United Water s information technology and finance team, under the direction of Mike Divincenzo and Kerry Tracy, has made substantial progress rolling out tools that will help the company meet challenging business objectives. One major component of the IT plan is the creation of a single, integrated financial system. The process of migrating 36 business units that use the Solomon financial system to the PeopleSoft system (version 7.2) is well underway. Here are some of the highlights of what has been accomplished in just four months: Migrated detailed G/L data to PeopleSoft for 30 business units. Converted payrolls for seven legal entities and went live with the new check run on schedule. Synchronized field and corporate HR inform a tion. Merged multiple vendor listings into a single corporate master list. Consolidated asset management information in the PeopleSoft module. Provided a web-based accounts receivable application that is accessible to managers in the field. The process involved a great deal of planning and hard work by corporate and regional staff in IT, finance, procurement and human resources. The group had to overcome obstacles that included the constraints of the existing ADP HR/payroll system, inconsistent data structures, various municipal reporting requirements and IT connectivity issues. "It was a huge undertaking that succeeded because everyone cooperated, said Michele Nash, senior accountant. " already saving time in the monthly consolidation process and people in the field now have access to information they need to get their jobs done more efficiently. Happy Holidays In recognition of our employees' extraordinary efforts in 2003, CEO Tony Harding has designated Friday, December 26, as a holiday for United Water employees. Harding said, "the past year has been both challenging and interesting for all us. Through it all, United Water employees continued to demonstrate that one very important thing has not changed---their commitment to providing our customers with excellent service. I have been impressed by the conviction and hard work exhibited by our employees all across the nation. Therefore, as the holidays approach, I feel that it is important that we all take a little extra well-deserved time off. Work schedules must, of course, be coordinated with managers to be sure that operational needs are met. Employees who have to work on Friday will be able to arrange with their supervisors to take a different day off. S1J8~r UnitedWater 1(- .. On The Road Again Tony Harding continued his "What's On Your Mind?" meetings recently by visiting employees in Gary, Indianapolis and Pennsylvania. He made brief presentations describing his goals and objectives for customers, employees and efficiency. Afterwards, employees had the opportunity to ask questions. Key issues for Indianapolis and Gary employees included health benefits, customer service and staffing levels. Michael Belsante, region president, joined Harding on a whirlwind tour of United Water Pennsylvania s Harrisburg and Mechanicsburg facilities including the Sixth Street, Rabold and Hummelstown water treatment plants and the new operations facilities center. More Payment Facilities For Customers As part of a continuing effort to enhance customer service, United Water will give New Jersey customers new payment options. The company recently signed a contract with American Payment Services (APS) that will enable customers of eight business units to make in-person payments ata wide variety of neighborhood businesses. The program will be piloted in Jersey City. Other companies slated to participate include United Water New Jersey, Toms River, Lambertville, Mid- Atlantic, Hoboken, Rahway and Kearny. NJBPU approval is required for the regulated businesses. The project team is currently working with APS on details such as collection methods, deposit processes and interaction withUBS. The APS project should be completely rolled outin the second quarter of 2004. Freeport Improvements United Water is overseeing the design and construction of stormwater improvement projects in Freeport, IL, where we also operate the Freeport Water & Sewer Commission s 14-MGD water and 18-MGD wastewater treatment facilities. The groundbreaking ceremony was held on October to launch the first phase of the $3.1 million project which will double sewer capacity and reduce street flooding and basement backups. In total, the project will add about three miles of new pipe to the system, which serves 28,000 people. The current system cannot even handle a two year rain event," explained Alice Ohrtmann, regional operations director. "We are expanding the system to handle a 25-year event The second phase will begin soon and this will involve the purchase of up to 40 homes located in a flood plain. This is being done in accordance with the Illinois EP A's Compliance Agreement" A recent editorial in the Freeport Journal Standard noted that "the sewer project is going to be difficult, but if it is handled well, the result will be a much- needed improvement to the city infrastructure.... ..leavingthings better than we found them. Kudos Power Efficiencies In Pekin An integrated flow management program has helped United Water reduce energy costs in Pekin, , where we operate the city s wastewater treatment plant and lift stations. The plant has three separate activated sludge secondary processes into which primary effluent is pumped through a common flow splitter structure. The structure design added nearly a foot of unnecessary head to the system and would not allow for even flows. United Water 1~. .. Don Hughes, project manager, explained that the Pekin staff planned and executed a bypass of the flow-split structure and modified the inlet gates to the three processes. This now provides for an even flow split and allows us to process an additional1-MGD of flow during wet weather events using the same number of pumps. It has also enabled us to operate the secondary processes using one blower instead of two. Because blowers consume a lot of energy, the savings will exceed 50 percent of previous energy costs. Now that's powerful teamwork! Laredo Gets The Job Done The headline in the Laredo Morning Times read United Water rises to the task." The story described the "Herculean task" accomplished by United Water Laredo employees who responded to a 42-inch sewer line break. It produced a sinkhole about 24 feet wide and 140 feet long. As a result, nearly four million gallons of wastewater per day were being diverted into Zacate Creek. The only contractor who had the ability to fix the problem said the work would take three weeks to complete. But the United Water team came up with a strategy and resolved the situation in just five days. They created a temporary by-pass system comprising 800 feet of pipe and four pumps to intercept the flow which is pumped into the Zacate Creek Treatment Plant. Laredo employees worked day and night, often in sewage up to their chests, to get the job done. Kudos to Laredo employees for an exceptional effort! Well, Well! On November 5, employees at United Water New Jersey attended a "Wellness Fair" and "Blood Drive" in Harrington Park. Employees had the opportunity to get flu shots, ten-minute back massages and preliminary evaluations by a chiropractor. In addition, a variety of benefits and health care providers were on site with a wealth of important information. Holiday Info UNICEF Contributions During the holiday season, it is important to recognize organizations that make a difference in the world. To celebrate that spirit, United Water has made a donation to the U.S. Fund for UNICEF in lieu of giving holiday gifts to clients, vendors, etc. Our donation to UNICEF supports water, hygiene and sanitation programs that provide access to a clean and secure supply of water. UNICEF's goal is to focus on survival, growth and development of the world's neediest children. thanks, they ve printed our holiday card messages. Gift Policy At this time of year, you may have questions regarding whether or not to accept holiday gifts from outside sources. Our policy states that the occasional exchange of business courtesies such as modest gifts, meals and entertainment is an acceptable practice. These small gestures can be accepted. However, do not accept a gift if it appears to be an attempt to influence your relationship with a vendor or to obtain personal favors. The complete policy on gifts can be found in the HR Policy Manual. You can also log onto Quench (h!!JdLguench.unitedwater.com)and navigate to the HR/ Policy page. If you have questions regarding gifts, speak to your supervisor or contact a member of the Ethics Committee at 1 877 ETHIC55. SJJ.~r United water1(- .. Support Our Troops The Illinois National Guard MP 333rd Unit is in Iraq indefinitely, and a holiday supplies drive will let them know that the folks back home are thinking of them. United Water and Freeport Water & Sewer Commission employees were the largest single contributor to the cause. Here are some useful links if you would like to support our men and women in uniform. For tips on mailing packages to military personnel overseas, visit the S. Postal Service (USPS) at www.usps.corn/su2Portingourtroo~. Both the USPS and the U.S. Army www.army.mil/operations/iraqffug)remind us that you cannot send unsolicited packages to "any service person." Instead, they refer you to other possibilities including donating a calling card at www.operationuplinkorg,sending an email greeting via www.operationdearabby.net sending a thank you card through www.defendamerica.miL You can also send a Gift from the Homefront" gift certificate through www.aafes.corn/docs/homefront.htm. Business Casual??? It was chocolate, chocolate and more chocolate in Idaho where the " dress code" took on a fresh look for Halloween. Our employees enjoyed an opportunity to give new meaning to the term business casuaL" Official winners of the Halloween contest were Bill Carr, Jarmila Cary, Patty Foss, Debbie Presley and Karen Saville. On The Waterfront The.fust Frontline Management Training Program concluded on November 18 with a graduation celebration that included final presentations, awards and a luncheon. Over the past eight months, 24 participants from the East and Metro regions have been actively engaged in a developmental program focused on leadership skills and capabilities. All participants shared their lessons learned" and plans for the future. Additionally, three group presentations which detailed "Action Learning" assignments were provided to an audience of managers and some members of the EMT. Tony Harding invited the group to give a presentation on the Frontline program to the EMT so that ideas for business improvement, which came out of the program, can be implemented. Report Time The technical services department reminds us that this is the time of year to begin preparing a number of reports. As in the past, facilities that serve 200,000 people or more will be asked to complete an Annual Operational Performance Ratio Report. It is expected that spreadsheets will be distributed in December and returned January. This report helps Suez develop worldwide benchmarks and helps local managers identify areas for business improvement. addition, annual water quality and environmental compliance reports will be required by both Suez and regulatory agencies. Tech services will be coordinating the reporting for all these areas. Safety Update As part of the ongoing United Water/Suez commitment to safety, Eric Harle, safety director for Suez Environment, recently audited United Water s safety program. The ten-point review involved areas such as record keeping and reporting, CAPEX as it relates to safety, accident investigation programs and unique local safety initiatives. During the four-day audit, Harle 109 Star United Water 1~.e. visited employees at United Water New Jersey, New York and Owego/Nichols. Coincidently, during his visit to UWNJ, the Haworth Plant was conducting a surprise emergency response drill. Harle was impressed by the response and professionalism of the employees and with the plant's portable emergency response trailer. Harle commended United Water on many safety program components and offered suggestions for improvement. For example, he recommended that our accident investigation and prevention programs involve more "frontline" employees and that safety be a part of management's annual performance evaluations. He thought we should also improve how we communicate on the frequency, severity and lost time related to accidents. We will be working with Harle during 2004 to enhance our safety program. Milwaukee Hosts Delegation United Water Milwaukee recently hosted a delegation from the Paris wastewater authority. The "Syndicat Intercommunal d'Assainissement de l'Agglomeration Parisienne" (SIAPP) is responsible for choosing a biosolids program for the French capital. Senior management officials from SIAPP, Suez and Degremont toured the biosolids facility and the Milorganite bagging operations. Milorganite is the nation s leading organic nitrogen fertilizer. Terry Tobel, project manager, Milwaukee, and Mike Link, technical services director, West Region, conducted the tour and led in-depth discussions on the technical and environmental aspects of biosolids. The visit provided SIAPP management with an opportunity to see first hand the production, distribution and marketing of an award-wining biosolids program. For more information on Milorganite, visit www.milorganite.org. EMT Update Last month, a team led by Tony Harding presented our proposed 2004 budget and medium- term plan to the Suez Environment management team. The two teams agreed on the main strategic assumptions underlying the financial proposals. The Executive Management Team met on November 12 and reviewed the 2004 proposed regional and corporate budgets. Confirmation of the 2004 budget is expected from Paris shortly. Key Dates December 9-EMT meeting December 16-United Water Board meeting SJJ8~r United water1C" .. Customers - Employees - Efficiency December 19, 2003 Rake Up Boise Employees at United Water Idaho continued their Rake Up Boise tradition on November 15. The team gave a helping hand to the community by raking leaves for three senior citizens, including UWID retiree Marge Thomas. Despite the rain, they finished the task in a record-breaking one hour and 15 minutes! Honesty Wins Customers' Trust The EPA has cited United Water Delaware Consumer Confidence Report (CCR) as a "success story" that shows how CCRs can help build communities' trust in their water utilities. When UWDE had a treatment technique violation, company officials immediately coordinated with the health department, notified their customers and included a full disclosure, as required, in their annual water quality report or CCR. Plant manager Dave Fournier is quoted in an EP A CCR poster, "Years ago, mostpublic water system officials were reluctant to disclose information on violations, wary of backlash from a frightened public. Today, with annual CCRs and improved public notification requirements and customer relations, there is much more focus on ethics and reporting. There s a definite correlation between honesty and building public trust" You can see the EP A poster at www.e~ov/ogwdw/publicoutreach/pdfs/mcl QQ ster-2003.E4!. And, don t forget, it will soon be time to get ready for next year s CCR! WPC Handbook The Water Partnership Council (WPC) is a non- profit organization comprising the leading water companies which supply operational services for water and wastewater systems in the United States. The WPC seeks to encourage partnerships between private companies and local governments and organizations committed to strengthening our country swater and wastewater infrastructure. In doing so, the WPC and its members worked with over 30 community leaders and industry experts to create a handbook entitled "Establishing Public-Private Partnerships for Water and Wastewater Systems: A Blueprint for Success. The handbook offers guidance to communities that maybe interested in public-private partnerships. It also focuses on diminishing the most common myths and fears about establishing a public-private partnership. As a WPCmember, United Water was an active contributor to the handbook. You can obtain a copy by visiting www. waterpartnershi~or by calling Corporate Affairs in Harrington Park. Information Please The finance team is on schedule to complete the Solomon to PeopleSoft migration for remaining companies (United Water Milwaukee and former US Water operations) by the end of the year. As part of this initiative, IT is upgrading all operating systems to Windows XP. The completion of these tasks is the first step in the plan for upgrading to PeopleSoft Version B.X in 2004. This initiative wills~r United Water 1('e. help standardize business processes, fully integrate functional PeopleS oft modules and enhance financial reporting. In addition, users will benefit from a web-based tool which will eliminate connectivity and performance problems, automate interfaces with third party services and tools (Le. ADP, UBS, MMS) and eliminate proprietary software. UWDE Joins Basket Brigade United Water Delaware supported the "Basket Brigade of Delaware" and their efforts to supply Thanksgiving meals for families in need. This included contributions of cash, food and time. addition, company personnel and vehicles helped distribute baskets to 47 families on November 24. The whole process was staffed completely by volunteers and really shows how companies can make a difference when they come together with the community. UW Delaware employees were proud to have been a part of this wonderful effort! E- Learning Links Performance Development Review Process The HR team hopes you enjoy the training overview and welcomes any comments or questions you may have. For additional information, please contact Gerry Franciosa at X3407. W2net Online Suez Environment recently launched W2net, the new website which replaces the e- water portal and the SITA homepage. It displays news under six different headings that contain a variety of company- wide information and useful tools. You can find the new website via the Suez internal network at h!!p:/ /w2netsuez- env.suez. You can also visit in an extranet mode from any computer in the world at h!!p:/ /www.myw2netcom PDR Tools Online December marks the start of the Performance and Development Review (PDR) and compensation related activities. If you are responsible for completing these reviews, you can find a new E- Learning tool on Quench that provides an overview of the process. With a run time of about ten minutes, the module combines a video and PowerPoint overview of the PDR, compensation timeline and related actions. In addition, key documents such as PDR forms and worksheets are linked to the training module. You can get access to the training module by navigating to: Quench . Human Resources Employee Development Gary Supports Students United Water Gary presented Ronald Hiller, principal at Lew Wallace High School, with a check for $10,000 during a special luncheon held recently at the Gary Sanitary District "United Water is a perfect example of a company demonstrating its philosophy by being an active community partner," said Hiller. Through United Water Adopt-School Program,' Lew Wallace students have an opportunity to take part in an eight-week summer internship program. Students gain valuable first-hand work experience and knowledge that helps them explore career possibilities.. In addition, the company recently expanded its commitment to the. high school by sponsoring the First Annual United Water Golf Outing dedicated to raising funds for Lew Wallace. Key Dates The December 16 Board Meeting has been rescheduled for January 14,2004. SIJ;8~r United Water 1(- .. Customers - Employees - Efficiency M i Iwau kee Sets Record United Water Milwaukee employees delivered outstanding performance in 2003. Year-end figures showed that United Water provided the Milwaukee Metropolitan Sewerage District (MMSD) with the best water quality ever achieved. As a result, the project earned a performance incentive bonus of $100,000 from the client. This follows an independent audit last summer that recognized the project as one of the nation best wastewater treatment facilities. Under the contract with MMSD, United Water can receive bonuses on two water quality parameters penalties based three key water quality parameters. While the company has never received penalties, it received an incentive bonus for excellent Biological Oxygen Demand (BOD) performance in 1998, 1999,2000 and 200l. 2003 marks the first year that United Water has received incentive bonuses for both BOD and Total Suspended Solids (TSS). The charts show how United Water Milwaukee actual performance was far superior to both MMSD contract standards and the Wisconsin Department of Natural Resources (DNR) state permits. Achieving such high water quality also qualifies the Jones Island and South Shore wastewater treatment plants for the Association Metropolitan Sewerage Agencies' Gold Award for facilities that had no permit violations in 2003. Congratulations to the Milwaukee team for providing excellent customer service and for protecting Wisconsin's natural resources. Brrrreak Time Brrrrrr, it's cold out there! And just as you expect, as the temperature goes down, the number of main breaks goes up. Despite record January lows, United Water employees have turned on the heat to make timely repairs and respond to customer needs. In New Jersey, crews responded to early morning 16-inch break on Route 3, a major highway leading to midtown Manhattan. Icing conditions forced the closure of Jersey-bound lanes during the morning rush hour, creating huge traffic jams throughout the NY metropolitan area. Milwaukee Performance 2003 Biological Oxygen Demand Contract Limit Total Solids Suspended Contract Limit State Limit Fecal Coliform January 30, 2004 """. Sbft~r 400 Number/100 ml United Water 8. Despite bone chilling temperatures, crews restored water service and the highway was reopened by noon. Just down the road in Jersey City, employees repaired five weather-related main breaks in just one morning. Because of the record cold, employees throughout the East and Metro regions have been busy answering phone calls, conducting inspections and making repairs. Kudos to everyone who braves the cold to keep the water running. The RAID Returns Suez is resuming the RAID in 2004 and United Water will send a team to represent us at this exciting event. This year s RAID will maintain a physically competitive component but will also include opportunities for less athletic team members. Our RAID team will consist of four athletes/competitors" and three "scouts" who will be responsible for team logistics and who will take part in "fun" sporting events. The RAID will be held June 10 - 13 in France Eastern Pyrenees. Employees who are interested in participating should complete an application indicating their interests and qualifications. A committee will review all applications and every effort will be made to select team members from various United Water locations. Applications should be returned to your human resources department by February 12. The United Water team will be announced by March Puerto Rico Contract Ondeo de Puerto Rico and the government of Puerto Rico have mutually terminated their Operation & Maintenance contract for the island' water and sanitation services. Despite significant improvements in the quality of Puerto Rico s water service since the contract began in May 2002, both parties were unable to agree on a way to continue the contract in its current form. Unexpected conditions encountered on the island prevented Ondeo de Puerto Rico from generating the level efficiency gains expected for this type of contract. In addition, economic conditions differed considerably from initial projections. The 2003-2004 Suez Action Plan also helped shape the decision to end the contract. The plan defines the need for increased profitability criteria and reduced risk objectives. The operating difficulties experienced on the island are incompatible with Suez s long-term economic criteria. As a result, Ondeo de Puerto Rico reached an amicable resolution of the contract. The Ondeo team will maintain full responsibility for the island's service to ensure an orderly transition until Puerto Rico authorities assume operations on April Holiday Wrap United Water employees helped brighten the holidays for customers in communities across the country. In Idaho, our colleagues responded in a big way to "Bring Your Turkey To Work Day. They donated 45 birds (weighing in at 778 pounds) to the Idaho Foodbank. They also played "Secret Santa" for a special family needing a little Christmas magic. The family included four children, a mother, and a father who is terminally ill. UWID elves came out of the woodwork chipping in to the tune of $1,5001 In the Metro Region, employees made sure that 75 children in need received gifts on their "wish list." They also collected 251" gently used" coats to help families stay warm this winter. Thanks to all United Water employees who opened their hearts and their pocket books to brighten up the holidays for families who needed a helping hand. On The Water Front The second group of United Water employees completed the Frontline Management Program in December. Thirteen participants from Indianapolis and Gary were part of the Action Learning" teams. Regional management joined the training participants in Indianapolis where each of the three teams gave first class" reports on their final projects. December also marked the halfway point for the multi-project group taking the training in California. Plans for additional Frontline training are being finalized with tentative March start dates for Group 4 in the New York/New Jersey area. Sh~r UnitedWater 1(" .. Customers - Employees - Efficiency February 25,2004 That's Beneficial United Water employees are eligible for a variety of "voluntary benefits" at reduced rates. These cost saving programs include discounts on certain programs and services available through Ford Flyte Tyme Limousine and MetLife. In fact, in response to employees requests, United Water is now offering pet insurance through MetLife. addition, United Water employees can receive a $10 Cash Card if they become members of CaSTCa ,an international warehouse chain that carries quality, brand name merchandise at substantially lower prices. To learn more about voluntary benefits: Go to http://quench.unitedwater.com/ Click on Human Resources tab Under the "Benefits" tab, click on "Voluntary Benefits. You can also contact Dolores Gennari at dolores.gennari~unitedwater.com or at 1 800 664 4552 for additional details. Need Help? If you require any assistance with hardware, software or network related issues, help is available from the United Water Help Desk. The staff is available to assist employees at all United Water facilities from 7:30 a.m. (EST) to 7:00 p. (EST). Technicians will log your call and assist you over the phone. However, if your issue requires on-site support, you will be given a ticket number and a technician from your region will be dispatched to your location. You can contact the corporate Help Desk at 1 800 3178055 or by em ail at uwisservice&requestC?iJunitedwater.com, If you reach the voice mailbox, please leave your name, number and a brief message and a technician will return your call as soon as possible. Web Meeting Service United Water has access to an Internet-based conferencing capability that Suez has developed using Webex technology. This Web Meeting service provides the ability to hold interactive online meetings using a telephone and a web browser. Using this service, meetings can be set up quickly and effectively without the need to travel. The tool enables online attendees to chat, share presentations and applications, edit documents, and hold interactive discussions. To learn more about the United Water Web Meeting Service: Go to: http://quench.unitedwater.com Click on "Suez Intranet" Under "Tools and Resources , click on "Web Meeting. You can set up an account, request a user ID and password and begin using this powerful tool about 48 hours. What's New In Training? You can find out by checking out the Human Resources Development Catalog. It provides a listing of internal training programs as well as an overview of each program and participant objectives. Many of these programs have little to Sb~r United Water .. no cost. The material is also cross-referenced to reflect the competencies that are addressed by each training program. New to the Development Catalog is a half-day training program on "Managing Conflict." The program explores the skill of Managing Conflict from two perspectives: 1) participants identify the strengths and weaknesses of their natural style in dealing with conflict and 2) they learn to use a six- step process to improve their effectiveness in conflict management. Sound interesting? Talk to your HR manager or review the catalog on Quench. To learn more about the development catalog: Go to http://hr.unitedwater.com Under the "Employee Development" tab, click on Development Catalog. For more information, please call Gerry Franciosa in Corporate HR at 201 7503427. Out Of This World United Water Milwaukee is expanding its partnership with Washington High School. This time, employees Mark Krueger, Craig Heisel and Darin Heibnan are mentoring students who are participating in the NASA Robotics Education Project (REP). REP encourages high school students nationwide to become involved in science and engineering, particularly robotics. NASA' goal is to contribute to the future exploration of our solar system through the development of an educated robotics technology workforce. Using a combination of disciplines - math, science, and information technology - students must conceive, design, test and build a robot. Students participate in regional competitions leading to the national event. The Washington High robot and team will participate in the regional competition at the end of March at Northwestern University. For more information on REP visit www.robotics.nasa.gQY Turn Up The Heat The competition is heating up in Laredo, TX, where the Border Olympics are underway. United Water is an official sponsor of the 74-year old sporting tradition. This major springtime attraction features high school and college competition in track and field, baseballi tennis, golf, softball and soccer. The Border Olympics take place now through April. The event draws thousands of visitors to Laredo where United Water operates the water and wastewater facilities. Located on the Rio Grande, Laredo is the principal port of entry into Mexico and is the second fastest growing city in the nation. The Border Olympics is a tradition that unites the community and contributes to its economic growth. The Shadow Knows Several students from River Dell High School in Oradell, NJ, know a little bit more about careers in the water business. The group took part in Job Shadow Day on February 11 and spent time with New Jersey based employees. The students had an opportunity to visit many areas including human resources, legal, communications, metering, security/safety, customer service and the laboratory. Thank You! Employee volunteers in the New York/New Jersey area were honored at the First Annual Volunteer Recognition Lunch on February 3. Employees who helped at various 2003 events were invited to the festivities. Special Awards and Recognition were given to the employees who volunteered for three or more events. Employees honored for taking part in six or more events include Kim Azzolino, Jane Dolan, Janis Hoey, Paula McEvoy and Marge Moore. Peggy Andrews, Mary Gustofson and Les Maier were also recognized for their efforts. CEO Tony Harding and Bob lacuno, president, regulated businesses, were on hand to distribute the certificates of appreciation. Sb~r UnitedWater .. Notable Notes Mike Algranati, assistant treasurer for United Water in Harrington Park, NJ, has been appointed to the board of directors of Jawonio. Based in Rockland County, NY, Jawonio is dedicated to advancing the independence, well-being and equality of people with disabilities or special needs. Emily Nichols, public affairs manager at United Water Indianapolis, has been appointed to the board of directors at Keep Indianapolis Beautiful and at Horizon House, an advocacy group for the homeless. At Your Service As part of an ongoing initiative to improve customer service, United Water has implemented a program which will provide customers with more locations to pay their water bills. The program was launched this week at our operation in Jersey City,NJ. Those customers can now pay their water and sewer bills in person at small retail stores in their neighborhood. This new program expands the number of places where residents can pay their bills from two to 19. An added convenience is that many of these retail shops have business hours well into the evening. Seven other New Jersey business units are slated to participate in this program. Safety First United Water Direction for the Medium Term defines the need to create a genuine health and safety culture. In order to help raise awareness about workplace safety, the Shooting Star will report key safety numbers on a regular basis. The information is compiled from Quality Control Reports submitted by our business units across the country. (Thanks to the team for their efforts last month.) The chart below shows the trend for time lost due to accidents. We will be looking at the underlying reasons for the apparent increase and communicating our progress throughout the year. Accidents Resulting in Lost Time Monthly Average 2003 Actual January 2004 Sh~r United Water .. Customers - Employees - Efficiency Heroic Catch When Mark Wilmoth and Chris Ross of United Water Arkansas set out for a day of fishing, they never dreamed their" catch of the day" would lead to a recommendation for a lifesaving award from the governor. Thanks to their efforts, Sylvia Smith was rescued after her car hydroplaned into the bottom of a flooded ditch shortly after 4 a. Smith climbed out of the submerged car and spent two life-threatening hours on the roof surrounded by turbulent waters brought , on by the pouring rain. Finally, a passing motorist noticed her plight and flagged down Wilmoth and Ross. The two men, along with another friend, launched their boat into the flooded area and pulled Smith to safety. "Those men saved my life," she said. "The turbulence was so bad, they risked their lives coming after me." The Arkansas State Police agreed and have submitted their names for lifesaving awards from the governor. Information Please The U ni ted Water Information Network Proj ect (UWlN) is in full swing and building upon last year s Windows XP upgrade and the migration of business units with Solomon financial systems to PeopleSoft 7. The UWIN project, which was officially kicked off last month, involves finance personnel nationwide and consultants from four specialized firms. The goal of the project is to Sb8~r March 26, 2004 implement a financial system that better supports United Water s business needs. Upon completion, financial processes will be standardized and simplified and many manual steps will be eliminated. In addition, employees will have access to more timely and more accurate data, In the months ahead, the team will focus on upgrading the entire company to PeopleSoft 8.4 and upgrading the human resources and payroll systems to ADP's latest version. The team is currently conducting configuration workshops, designed to map the requirements identified late last year to deliver system functionality. The anticipated dates that the systems go into active use are as follows: . ADP Enterprise Horizon, (HR & Payroll), May 2004 PeopleSoft Time & Expense, July 2004 PeopleSoft Financials, October 2004 You can find additional information on Quench at h!!p://finance.unitedwater.coll1. You can also email the project team at UWINProject0!UnitedWater.com,or contact Michael DiVincenzo directly with any questions you may have. Solid Thinking Some solid thinking at United Water Garyresulted in a new approach to an old problem. For our client, the Gary (Indiana) Sanitary District, this means improved water quality without capital upgrades or investments. For the industry, means that one single calculation may be a more significant process control tool than three other more widely used calculations. UnitedWater .. The United Water Gary experience is the subject of a paper entitled" One-Step Control." The article, based on the work of the operations group, will be published in the Indiana WEA magazine. The group faced many challenges at the 60-MGD wastewater facility. This included operating Secondary Clarifier Effluent . Running Average . Actual C3 5 .Jun .Jul Aug Sep Oct Nov Dec .Ian Feb03 '03 '03 '03 '03 '03 '03 '04 ' during three plant upgrades and a variety of wet weather/ flow conditions-all while meeting very stringent permit requirements for Total Suspended Solids (9.6 mgll). The Gary team responded to these challenges by developing an approach to process control that allows for better treatment using the Solids Loading Rate calculation. The result has been remarkable consistency with a very good quality secondary clarifier effluent. The chart above illustrates the improvements. The accomplishments are even more impressive when you consider that the facility is operated with only seven of 24 final clarifiers in service. To read the entire article, please visit Quench. The document can be found under " Announcements. Traveling Safely Have you received emails warning you about hotel key cards and identity theft? Have you checked out the urban legends websites? They tell you two important things: there s a lot to worry about-or there s nothing to worry about it. For the most part, the warning is a false alarm, according to hotel and police officials. The email warning was based upon the early stages of a Pasadena, CA Police Department investigation into whether hotels put personal guest information (including credit card numbers) on the key cards. The fear was that thieves might be able to swipe the cards (no pun intended) using magnetic readers and steal the information. Upon the completion of their investigation, the Pasadena PD (www.ci.pasadena.ca.us/police) concluded that most large hotels using newer technology do not store personal information on key cards. What's the bottom line? Key card fraud is unlikely but the "urban legend" has a grain of truth. personal information is stored on a card and if it falls into the hands of a thief, he or she can read the data with a scanner. A prudent course of action is to inquire at check-in, keep your card in a safe place and either return it to the desk or destroy it when you check out. Hotel key cards are not a typical source of credit card fraud. help protect yourself from more common types of credit card fraud visit the Federal Trade Commission website at htlp://www .He. gov /bcp/ conline/pubs/credit! cards. . If you think you are the victim of identity theft, visit htlp://www.consumer.gov/idtheft. Hit Parade The George Washington Birthday Parade has been an annual and extremely popular event in Laredo, TX, for 107 years. In fact, Laredoans camp out the night before throughout the parade s route just to get a good seat. Sponsored by Anheuser-Busch the theme of the 2004 parade was "Education: Our Key to the Future. This year United Water Laredo joined the parade for the first time and entered a float with the theme "Water gives you life and knowledge gives you a future." The float, covered in blue and silver metallic colors, featured a miniature water fountain with running water, a Sh8~r United Water .. miniature lab, two safety barrels and two fire hydrants. To give the illusion of water gushing out of the fire hydrants, blue metallic streamers were attached and an air pump hidden within the trailer pumped air into the hydrants causing the streamers to appear as if water was coming out from them. The Activities Committee put this float together in one and half months. The members are Araceli Thatcher, Margie Rendon, Beatriz Gonzalez, Irma Sanchez, Rosario Jimenez, Antonio Mora, Jose Santos, Jorge Enriquez, Alex Garza, Natividad Hernandez and Luis Ibarra, Performing To The Max There was a lot to celebrate in Springfield Massachusetts, where United Water operates the 67-MGD regional wastewater treatment facility. The Springfield team was on target for achieving their Performax goals at the 32-week milestone on March 3. Executive Management Team members Tony Harding, Xavier Boulat, Henry Saint Bris and Alan Thompson were in attendance to support the Springfield team s accomplishments which included: Short Interval Controls (SICs) applied and results tracked. Implemented Management Controls and Reporting System; Work Order process remains fully aligned and sustainable with continuous improvement. . Operation s processes are accurately measured by Daily/W eekly Operating Reports and continue to be predictable. Key Standard Operating Procedures were implemented and are in use. Annual savings run at the rate of $400, 000 (versus agreed bases) achieved in area of sludge production, chemical, and utilities. Ken Maltese, the project director, made a presentation to describe the progress through week 32. Other participants presenting that day included Don Goodroe, project operations manager; Allen Yelle, maintenance manger; Kevin Carney, senior plant operator and Judson Swiminer, residuals technician. The Springfield staff expressed their appreciation to Oleh Dzydzora for his efforts in assisting the team to achieve their Performax goals. Safety In Numbers United Water s lost time incident rate (frequency rate) dropped from 6.27 in January to 5.32 in February. While the rate is still a little higher than years past, we re making progress. Whenever an accident occurs, especially a lost time accident, it' important to form a small team to look into what happened. The team should typically consist of a supervisor and work crew or the individuals involved in the accident. Together they can Accidents Resulting in Lost Time 2003 Annual Actual January Actual FebruaryAverage 2004 2004 conduct a root cause analysis (RCA) to determine the true cause of the accident. This involves digging beyond the obvious to see if anything else may have contributed to the problem. The goal to identify the true cause and prevent future accidents. For information on conducting RCA email john.ekman((i)unitedwater.com be1JtIiigStar United Water .. Need Feedback? Ed Koch used to stand on New York City street corners when he was mayor and ask passers-by, How am I doing?' . That's one way to get feedback on job performance but you might want to consider programs offered by human resources. The department recently rolled out Advanced Presentation Skills" training to provide the tools and strategies that increase the success presentation skills. For those who attended, the surprise was that everything was videotaped for instant feedback! Speaking of feedback, 360-degree assessments continue to be regularly implemented for a large number of supervisors and managers. This tool provides the individual with feedback from their personal viewpoint as well as their boss, peers/colleagues and direct reports. In addition to feedback tools, HR is planning and finalizing customized training to help specific work groups with development opportunities. You can also find additional information on Quench at b!!p:/ /hr. uni ted water. co m/ Cumberland Wins Award The Indiana Section of. the American Consulting Engineers Council recently awarded a Merit Award to Cumberland, IN,for its new Water Pollution Control Facility. This award recognizes specific projects that demonstrate initiative and ingenuity in the field of engineering. United Water played a significant role during the design and construction phase of this new plant, serving as overall program manager. By providing these oversight services to the town, a successful project was ensured and the transition of operations from the old plant to the new plant was streamlined. With a new plant average design flow of 1.5-MGD and peak design flow of 4.5-MGD, this facility has already exceeded expectations by capturing all wet weather flow since its start-up during November 2002. To date, a one-day record of nearly 6-MGD has been recorded! Calls (And Cash) For Kids United Water Idaho employees joined Miss Idaho (pictured top-center.. the one with the tiara!) on March 12 to help raise money for a much-needed expansion of the Pediatric Inpatient MedicaVSurgical Unit at the St. Luke s Children Hospital in Boise. United Water employees not only fielded phone calls, but also pitched in $500. A challenge was extended ovet: the radio airwaves for other local utility employees to match this contribution. Phone calls and cash pledges jingled in to the tune of $5,000 during UWID's watch. Our phone team included Camille Brown, Bob Lawrence, Roger Dittus, Mike Waters, Pete Benkert, Kevin Smith, Bill Carr, John Lee, Rob Barrett, and Mary Cahoon. In Memoriam United Water extends its deepest sympathy to the family and friends of John Vandegriff who passed away on March 21. John was a senior technical analyst at United Water Idaho. Prior to joining the Idaho team J ohnwas a member of the UWM&S technical services group. Our hearts and prayers go out to his family including his wife Kelly, and their sons, Preston, Ian and Cole. An educational trust fund has been established for the boys. If you wish, you may make a contribution to: The Vande griff Family Fund, 5660 N. Star Ridgeway, Star, ID 83669. Sb~UnitedWater .. Suez News The Suez Board of Directors met on March 3 and approved the results for the financial year ended December 31,2003. The accounts will be submitted for approval to the Annual General Shareholders Meeting on April 27. The board also approved the Group strategy which is based on the simultaneous and sustainable development of its two business sectors~energy and the environment. A recent press release issued by Suez stated that the 2003-2004 Action Plan has been executed and exceeds the objectives announced in January 2003. The full cost of the plan has been charged to 2003 income. In a difficult economic environment, Suez posted good operating performance and vigorous organic growth in its main business sectors. With its divestments in the communications sector and disposals of its equity investments, the Group has strengthened its core-business focus and stabilized its corporate structure. The key points covered in the press release included: Action Plan-- Every objective for year-end 2004 met by February 2004 2003 Results-- Good operating performances in a year marked by the implementation of the Action Plan Outlook for 2004-2006-- Strategic focus on energy and environment, return to net profit and pursuit of growth of operating results Board of Directors-Recommendation at Annual General Shareholders' meeting to maintain net dividend at EUR 0.71 per share. Payment May, 3,2004. You can read the entire press release on the Suez web site at h!!p://www.suez.com/upload/up 1151. 2ili Sho~r United Water .. Customers - Employees - Efficiency April 30, 2004 Buying Right United Water Indiana was recently awarded the Circle of Excellence Award by the Indiana Regional Minority Supplier Development Council (IRMSDC). Their primary mission is to promote and cultivate successful minority ' enterprises within the Indiana business community. The IRMSDC is an advocate for the economic well-being and growth of Minority Business Enterprises (MBEs) and Women-owned Business Enterprises (WBEs). ... \,J'~' 1 uy \ ::- '/I ;I' J:r':\ISI)(f ,r / ' -~" ""I;." ;~ll" Of';:, ~~,,,.. The Circle of Excellence Award goes to one company from each of three regions in Indiana who are nominated by the suppliers for their achievements and commitment to the mission the organization. Jon Kessen, from Indy purchasing department, received the Buyer of the Year Award. Indianapolis Mayor Bart Peterson specifically recognized United Water as a company that had "blown the doors off the MBE/WBE program for the city. He cited us a great example of how well this program can work. Kudos to United Water Indianapolis and to our entire United Water procurement team for their MBE/WBE leadership efforts. Driving While Tired re all familiar with the dangers of DWI" (driving while intoxicated) and "DUI" (driving under the influence). Now the State of New Jersey has a law that recognizes the dangers of DWT" or driving while tired. The new law defines fatigued" as being without sleep for more than 24 consecutive hours. While the law doesn t prohibit driving while fatigued, it provides for severe penalties if the driver.causes a fatal accident after being awake for 24 hours. Fatigued driving is now considered" reckless" under the state s Vehicular Homicide Statute. A driver involved in a fatal fatigue-related accident can face jail time and fines up to $150,000. According to the National Highway Traffic Safety Adminis ITa tion (htlp ://www .nh tsa. dot. gov D driver fatigue causes at least 1,500 deaths; 71,000 injuries and 100,000 car accidents each year. Some studies indicate that driving while tired is just as dangerous as driving drunk. Most fatigue-related crashes are serious, happen after midnight, on highway and when the driver is alone. While there is no substitute for being properly rested, the NHTSA reports that two risk-reducing actions may help limit the danger. They suggest that a 20-minute nap and consuming caffeine the equivalent of two cups of coffee can help for short periods. Drivers, however, should not rely on these methods to overcome fatigue-related performance. So, whether you are a New Jersey resident or just passing through, the Vehicular Homicide Statue applies to every driver who has been awake for hours. More importantly, it reminds us that driving anywhere while tired can have serious consequences which can be prevented with proper rest. Sh~r United Water 1("e. ve GotVour Number United Water facility listings, including addresses and phone numbers, are now available on Quench. You can find the numbers you need on the Quench home page at~uench. unitedwater.com/. Severance Update United Water has recently completed a two-year process that moved the company to a regional structure and then to a structure that supports our regulated and non-regulated businesses. Our new organization clearly defines our lines of business and our Direction for the Medium Term provides a blueprint that will help us shape a successful future for our company. United Water has now completed its major restructuring activities. As a result, we will conclude the program implemented to help transition affected employees to new careers while the company made critical organizational changes. Effective April 30, 2004 the Enhanced Separation Program (ESP) is being terminated and we will return to our normal severance practices. While organizational changes will always be a part of business, we do not anticipate any major structural changes like those that have occurred over the past two years. That's Beneficial! United Water is pleased to announce a variety of voluntary" benefits that are available to our employees. They include discounts with men clothier, JoS. A. Bank, as well as Eddie Bauer and Eddie Bauer Home. You can also take advantage of special savings with National Car Rental and AT&T Wireless. And, if you re visiting New York, you ll find great prices on entertainment events, including Broadway shows, through SVM. You can find additional information on Quench at~uench.unitedwater.com/. Just follow the link for Human Resources/ BenefitsN oluntary Benefits. Good Deeds From The Heart United Water employees have been getting their exercise while raising money for a worthy cause. Over 50 United Water Idaho employees and family members teamed up to raise money for the American Heart Association. Under the direction of Jeff Lough, T &D crew chief, the team raised $5,363. Linda D'Orazio and Miguel Castro received "Top Walk Awards for bringing in the BIG bucks! Customer Service slam-dunked the Team Award by bringing in $2,7001 Committee members included Anne Osler, Jane Wood, Kevin Smith, Don Mays and Greg Wyatt. Spring Cleaning A team of 76 folks from United Water Delaware took part in National Youth Service Day and the Annual Christina River Watershed Cleanup. They joined 500 of their neighbors who pitched in at sites along the Christina River and its tributaries to pick up trash. The 13th annual cleanup was sponsored by the Delaware Department of Natural Resources and Environmental Control, the Christina Conservancy and a variety of businesses. Venture Capital Richard Ofeldt, production superintendent at United Water New York, was recently honored for his lasting commitment to Venture. The agency serves people with disabilities by providing residential, educational, employment and transition services. He was integral to the development of a memorial pond. In addition Ofeldt and co-workers also host an annual classic car show which benefits Venture. Sb(J~r United Water 1(.8. Books In A Bag Volunteers from United Water New Jersey joined Read Across America and honored Dr. Seuss on his 100th birthday. In cooperation with the Volunteer Center of Bergen County, our team supported the local effort to promote literacy and the importance of reading, especially at preschool programs such as Head Start where children are from low-income families. United Water employees collected new books and enough cash to meet their goal of 350 books. They visited two local pre-schools and provided each child with a book bag, a bookmark, a reading list and five brand new books. They also read to the kids and shared a pizza lunch. Thanks to Jane Dolan, Peggy Andrews, Donna Koeniges, Christine Mednick Sara Kom and Simone Reeves for their efforts. Earth Day Adventure Families in Boise were treated to a film described as "Jurassic Park in Your Own Backyard." The free showing of "Microcosmos," was co-sponsored by United Water Idaho. The "thriller" is an amazing chronicle of the insect world and it was shown in the perfect setting- Boise s historic Egyptian Theater. The venue is said to the be best remaining example of Egyptian revival style, which was popular after King Tut's tombs were discovered in the 1920s. Microcosmos features memorable images, including a caterpillar traffic jam, a frog s bout with a rainstorm and a bird that turns into Godzilla. According to the New York Times, "with its tiny cast of thousands, Microsomos leaves no doubt that Mother Nature remains the greatest special effects wizard of all. Check out the May edition of the Shooting Star to see how other United Water companies celebrated Earth Day and Mother Nature. Christmas In April It didn t feel like winter but Christmas was in the air in Jersey City, NJ, two weeks ago. A team of employees volunteered their Saturday to help refurbish a home and make repairs for family that did not have the means to do it on their own. This has been an annual event for many employees. Rose Nichols, who coordinated the activities, reported that the family they assisted was moved to tears. In fact, the homeowner, who requires a wheelchair, insisted on walking into his newly renovated kitchen. Kudos to Rose, Chris Fennell and family, Simone Reeves, Mike Grochulski, Pete Krempa, Bill Foley, Steve Cirino, Mr. and Mrs. Fred Kaps Jr. and Steve and Denise White. Training, Training, Training April has been a busy month for Frontline Management Program participants. Members from the five California projects concluded their program on Tuesday, April 27 with combined personal presentations and four action learning group presentations. A lot of time and effort has been spent by all since FLM was launched in September 2003. A new group of 23 New York and New Jersey participants began FLM training on April 20. Additional supervisor/manager groups are also in queue to begin later this year. Information Please The UWIN project team has now completed over 70 configuration workshops. They were designed to validate system requirements, identify any customizationsor process changes required to support the successful use and implementation of the new system. The team s accomplishments include: Sh~r United Water 1(.eo . ADP Enterprise Horizon, (HR & Payroll) system testing and training in preparation for the May 2004 implementation date. The Financial Leadership Team has approved the Business Unit Structure used in the system and the system is being set up using this information. . A GAAP standard chart of accounts was designed and approved. Discussions around process changes and customizations that are needed for the system are now underway, in support of developing a prototype system, due for completion at the end of May. Configura tion and programming for the base system has begun. You can find additional information on Quench at h!!p://finance.unitedwater.com/. You can also email the project team at UWINProjectCO!UnitedWater.com or contact Michael Di Vincenzo directly with any questions you may have. In Memoriam United Water extends its sympathy to the family and friends of John Holmes who passed away in March. John was a supervisor in the operations department at United Water Indianapolis. Before joining the company, he worked for the city of Cumberland. He is survived by his wife, Jennifer, and their daughter, Kendy1. The family has requested that donations be made to a memorial fund in lieu of flowers. If you wish, you may make a contribution to: The John Holmes Memorial Fund for the Benefit of Kendyl Holmes, C/O National City Bank, 21 W 38th St, Indianapolis, IN 46208. News from Suez Shareholder Meeting Two thousand people attended the annual shareholder meeting on April 27. The company financial statements for fiscal year 2003 were approved and the net dividend for the year set at EUR 0.71 per share, plus a tax credit of EUR 0.355. The dividend will fall due for payment May 2004. The audiocast and presentation slides from the meeting can be found online at h!!p://www.suez.coml Suez Online W2net is the new Suez Environnement website. It displays news under six different headings that contain a variety of company-wide information and useful tools. You can find the newwebsite via the Suez intranet at h!!p:/ /w2net.suez-env .suez You can also visit in an extranet mode from any computer in the world at h!!p://www.myw2net.com. The Suez intranet also provides information on RAID 2004, their international competition which challenges the athletic ability and strategic skills of employees from its companies around the world. From your United Water browser, visit http://intranet.swan.suez/and click on "Suez and You/Raid 2004". United Water is being represented at the RAID by Doug Beesley (Indiana), Jarmila Calf (Boise), Susan Coughlin (Harrington Park), Jason Fuchs (Harrington Park), Matthew Hobba (Harrisburg), Bill Lenart (West Nyack) and Iris Muralles (Burbank). Senior Managers Convention Suez, Mastering Our Future," was the topic of the Suez Senior Managers Convention held March 21- 23. Four hundred top executives from Suez companies around the world gathered in Marne la Valle, France to review 2003 and define priorities for 2004 and beyond. CEO Gerard Mestrallet was the keynote speaker. After two difficult years, he noted that Suez is on the road to recovery. Action plan goals, established in 2003, have been achieved. For the first half of 2004, Suez will generate net current income and net income after exceptional items that will both be in the black. The company s corporate structure has been determined, with a focus on energy and environment, and asset sales are completed. Challenges ahead include managing and optimizing strengths, controlling financial risks, committing to corporate values, sharing knowledge and focusing on safety. Shd~r United Water 1(.e. Customers - Employees - Efficiency May 27, 2004 Award Winners Learning Together Eric Schweizer (United Water) and Joseph Supemeau (Executive Director, Springfield Water & Sewer Commission) were on hand when basketball hall of famer and former Boston Celtic, KC Jones, presented them with the Community Education Award at the American Public Works Association regional meeting on May 12. The award recognized the company for an innovative, hands-on curriculum that is based on the wastewater treatment process at United Water s plant at Bondi's Island. The goal is to teach and inspire tomorrow s scientists, engineers and public works professionals. The program, originally geared for fifth graders, was developed in conjunction with the Springfield School Department and Springfield College. A World Outside the Classroom" has expanded its curriculum to include math and language arts, while still maintaining the original goals of encouraging the study of science, technology and engineering; helping students meet state standards in these areas; and inspiring students of all backgrounds to pursue related careers. Youngsters will continue to have hands-on participation in activities such as the water cycle, design challenge and a plant tour. This program is a perfect example of how United Water can have a positive, powerful and long-term impact on the communities it serves. Buying Right United Water Milwaukee received the "Award for Excellence" from the Wisconsin Supplier Development Council (WSDC). Jane LeCapitaine, community relations manager, accepted the award at the WSDC'Partners for Profit Dinner on May 6. The WSDC is a nonprofit organization consisting 2004 Year to Date MBE/WBE/SBE 60% 50% 40% 30% 20% 10% Actual Contract Goals of companies and public agencies from throughout the state. Members work together to increase the amount and quality of business transacted with minority-owned firms. United Water Milwaukee has consistently surpassed its contract requirements for minority, women and small business enterprises. The trend continues in Milwaukee in 2004, as does the commitment Sb:United Water 1(0 .. throughout our company. Kudos to United Water Milwaukee and to our entire United Water procurement team for their leadership efforts. That's The Spirit! Congratulations to Linda Lesnewski of United Water New Rochelle who received United Way s Spirit of Caring Labor Award. Linda.was honored at a luncheon held on Apri129. She was recently elected to serve on the board of directors for United Way of Westchester and Putnam in New York. Linda works in the water quality department and has been with the company for 13 years. Walk This Way Folks in New Jersey wore out some shoe leather for March of Dimes Walk America onApri125. Joan Patzer, Chris Fennell, Colleen Russo, Kim Azzolino and Janis Hoey walked with Patty Bogosian who collected the most donations and Shonya Jordan who brought the most walkers to the event. United Water provided water at various checkpoints throughout the route. Wayne Riordan, Gregg Jordan, Ilene Lusch, Simone Reeves, Michelle Winder-Etterbeek and Mel Mann made sure there was plenty of our favorite beverage for the thirsty crowd. Water Crazy Tori Morgan, IPP coordinator, and Sharon Marsh, business development manager, for Non-Regulated Businesses, helped Cedar Crest College celebrate HydroMania on May 13. The college hosted the annual Lehigh Valley (P A) Water Suppliers daylong program in honor of National Drinking Water Week. Over 1, 000 third and fourth graders assembled in small groups to be part of interactive educational presentations. These included sessions on ground water and surface water, understanding watersheds and protecting the water supply from contamination. The students also had the opportunity to create their own watershed and learn how actions of residents, companies, farms and factories affect the water quality in their watershed. Finally, the kids gathered under a large tent to complete a scavenger hunt by participating in the various exhibits. Exhibitors provided short presentations and answered questions, while the volunteers from United Water assisted students and exhibitors throughout the day. Got Trash In Bergen County (NJ), United Water employees were joined by volunteers from the Hackensack Riverkeeper organization and local Boy Scouts for cleanups of the Woodcliff Lake and Oradell reservoirs. Volunteers worked on foot and in canoes to collect trash that accumulated over the winter. A team of employees from United Water Rahway also worked to cleanup the RahwayRiver. The event was cosponsored by the City of Rahway, NJ, the u.s. Army Corps of Engineers and the Boy Scouts. Thanks to Peggy Andrews Kim Azzolino, Patty Bogosian, Peg Brandes Sh8~United Water 1("e. Patrick Cairo, Charlene Cassarello, Ray Cywinski Daisy Carpenter, EJ Flynn, Jim Glozzy, Mary Gustofson, Gary Harstead, Rich Henning, Janis Hoey, Puspal Hore, Kara Kennedy, Mike and Sean Kozick, John Koerkle, Marge Moore, Joan Patzer Deb Rizzi, Greg Roupp and Steve Wondrack for their efforts. Water Awareness Week United Water Idaho participated in the state s 10th annual Water Awareness Week from May 10-14. This statewide program, implemented regionally, promotes water education for sixth grade students. The southwest portion of Idaho is the responsibility of Region 3 participants: United Water, Idaho Water Resource Research Institute - University of Idaho, Boise City, Idaho National Engineering and Environmental Laboratory, Boise Office, and the Idaho Water Policy Group. Several school districts are involved in Region 3, which includes approximately 176 teachers and 5,500 students. Region 3 has made concerted efforts to ensure that the educational materials sent out are consistent with the state and local school standards. This year, our theme was "Weather and Atmosphere and one of our educational products was a video. This video was developed with the assistance of Boise State University, Channel 7, Channel 12, J. V evig' s sixth grade class from Koelsch Elementary School and UWID's Mary Cahoon. The video aired on community television so all the sixth grade classes could easily tune in from their classrooms. In addition, each teacher in the region received a resource packet consisting of a poster, field trip materials, as well as information on classroom presentations and outstanding websites. Last month, UWID celebrated Earth Day by setting up a booth at Boise State University and making presentations on water efficient landscaping for local NYK Line employees. Random Acts Of Kindness Earlier this year, employees at United Water New Rochelle celebrated "Random Acts of Kindness Week." During that time they were asked to do at least one act of kindness every day that week. The initiative launched UWNR's new Outreach Program which has since included a blood drive, an eyeglass collection and awalkathon for the Lions Club. More activities are planned for the year ahead. To see what others are doing you can visit the the Random Acts of Kindness Foundation at www.actsofkindness.org. The organization inspires people to practice kindness and to "pass it " to others. They provide free educational and community ideas, guidance, and other resources through their website. Safety First Workplace safety continues to be an important priority for United Water. The chart shows the trend for time lost due to accidents. While accidents increased in March, they dropped again in April, a trend that we re working on continuing Accidents Resulting in Lost Time 2003 Annual ActualAverage January 2004 Actual Actual Actual February March 2004 April 2004 2004 Sb~r UnitedWater 1("e. throughout the year. If you have questions on safety related issues, contact the following members of the tech services team: Stacey Christian, John Ekman Judy Grzegorski, Mike Luker, Mitch Mosier, John Marra, Scott Para and Dave RoncarL Go Raiders!!! Good luck to the United Water Raid team as they get ready to compete in the Suez Raid. This year s event takes place June 10 -13 in the Eastern Pyrenees, France. Athletes include J armila Cary (Boise, 10), Matthew Hobba (Harrisburg, P A), Bill Lenart (West Nyack, NY) and Iris Muralles (Burbank, CA). Susan Coughlin and Jason Fuchs (Harrington Park, NJ) and Doug Beesley (Indianapolis, IN) will serve as scou ts for the team. Suez News Suez and the Argentine government recently signed is a memorandum of understanding allowing Aguas Argentinas to continue its operations in 2004 and to complete the investment program needed to provide quality service to 11 million customers in the Buenos Aires region. Under the terms of this agreement, the teams will be able to renegotiate the contract, a necessary provision in view of the changed economic and social context in Argentina. This agreement marks the end of a troubled period, during which the Argentine government raised serious doubts about the concession s future. It allows Suez to meet its commitments to the population it has been serving for almost 12 years. In a recent announcement, Jean-Louis Chaussade, CEO of Suez Environnement, commended Jean Bernard Lemire (former COO of United Water) for leading Aquas Argentinas through difficult times. SI1~r United Water e. Customers - Employees - Efficiency June 29, 2004 Welcome South County United Water has completed the purchase of South County Water Corporation and South County Sewer Corporation, which provide water and wastewater services to about 400 residential customers and several commercial operations in Orange County, NY. The new entities will be called United Water South County Water and United Water South County Sewer. The transaction was approved by the New York State Public Service Commission (PSC). The acquisition is in line with the company s medium term plan to pursue 'proximity' growth in the regions where United Water has robust existing operations. South County operations will be managed through United Water New York. South County Water Corporation s customers will now benefit from the resources of a larger, well- managed water utility that has committed itself not only to making improvements to the water systems, but also to freezing current rates for anotheryear said Bob lacuno, chief operating officer. "We agreed with the PSC to freeze water rates for one year and make a number of improvements to the five water systems. The most significant improvement will be the installation of a new water filtration system at Sterling Lake by the fall of this year. New Water Supply Project United Water New Rochelle has begun the first . phase of a project designed to improve the community's water supply. Contractors are conducting test borings in Eastchester where the company plans to construct a new peak capacity 50- million gallon a day (MGD) pump station. United Water is making these improvements to meet the standards of the federal Surface Water Treatment Rule. The company currently purchases its water from New York City s Croton, Catskill and Delaware aqueducts. The Croton water supply does not meet the EP A requirements for filtration. In order to meet these water quality standards, the company must find a new water supply source. a result, United Water New Rochelle will implement a comprehensive construction program designed to meet EP A criteria. The componentsinclude: . A connection to the Delaware Aqueduct in Yonkers. . A new transmission main from the Delaware Aqueduct to United Water s existing transmission lines in Yonkers that supply water from the Catskill Aqueduct. . A new peak capacity 50-MGD pump station (the Delaware Pump Station) in Eastchester. . New interconnections in Eastchester. The Delaware Pump Station, shown in the rendering, is scheduled to be online in the fall of 2006. Sh~r UnitedWater 1("e. Lighting Response Whoever said "lightning never strikes twice" wasn in Owego, NY, at 4 p.m. on Thursday, June 17. A sudden massive storm flooded the streets and a lightning strike near Owego s primary well field created a fireball in the sky. It also burned out motors at both wells that were in service at the time, taking out two thirds of Owego s production capacity. A second lightning strike near the office destroyed the SCADA system. The Owego team quickly swung into action and put a single, undamaged well online. They also notified fire and health officials and the media. In addition, two major industrial clien ts were asked to cutback on production during the emergency. The office looked like a war room for two days," said Allan Watkins, manager of United Water Owego. We stabilized the situation as best we could. We found and ordered a replacement motor for our largest well and we worked with United Water New York (Mike Pointing, Don Distante and Jim Schneider) to locate additional motors. We also worked with corporate communications to address the concerns of local media." Owego was back to full pumping capacity by 10:15 p.m. on Friday. By Monday SCADA was 90 percent restored with help from a local contractor and the second production motor was restored and online with help from the local Lockheed Martin machine shop. The Owego team s experience and commitment were evident in that they were able to maintain 60 percent of the system demand throughout the emergency. Customers always had water and all water quality standards were maintained. Kudos to the United Water Owego team of Pat Lord, Stacey Ulrich, Allan Watkins, Steve Wildenstein and Pennie Williams for showing us how well a small company can do a big job.Sb~r United Water 401 (k) PlanReminder After June 30, 2004, Vanguard(/!) WindsorT" II Fund and Vanguard(/!) Total Stock Market Index Fund will no longer be investment options in your fund lineup. Don t forget you have until 4 p.m., Eastern Time, on June 30,2004, to exchange money out of these funds into other plan investment options. you do not make an exchange, any balance in Vanguard Windsor II Fund will move to Vanguard(/!) WindsorT" Fund; any balance in Vanguard Total Stock Market Index Fund will move to Vanguard(/!) 500 Index Fund. You can make your change online at www.vanguard.com or by calling Vanguard at 1800 5231188. The Show Must Go On The folks in Freeport, IL, will have a traditional Fourth of July fireworks show, thanks to some help from United Wate!. When the previous fireworks sponsor dropped out, United Water advanced $20,000 to secure the show. The company won t be the sole sponsor, however, as area businesses will be contributing to help United Water cover the costs associated with the show. United Water operates the water and wastewater system in Freeport which serves about 28,000 people. In addition, the team has made sure that the community will have bang-up time on the Fourth. Playing It Safe A $20,000 donation from United Water has paid for brand new playground equipment that completes Jackson Street Park in Hoboken, NJ, just in time for the summer season. The state-of-the-art equipment is designed for safety. It includes special safety padding to help decrease injuries if a child should fall. United Water operates Hoboken s water system which serves about 33,000 people in the mile-square city. When construction of the park's basic elements was completed toward the end of last winter, there wasn t enough money left in the budget to United Water e. purchase all of the equipment that was need to entirely fill the playground, explained Mayor David Roberts. At that time, he personally reached out to local business leaders for donations. "I would like to thank United Water for making a significant contribution to the future of our community," said Roberts. "These are investments that improve the quality of life for our residents, especially our children." The park's construction was mostly funded by $600,000 in state Green Acres funds. The program is administered by the New Jersey Department of En vironmen tal Protection. Play Ball! Future baseball greats are enjoying the Great American Pastime in Rahway, NJ, thanks to sponsor United Water. Last year s 10-12 year old girls softball team finished first in the Police Athletic League (PAL). Mary Gustafson, office coordinator, and EJFlynn production supervIsor, accepted an award from the PAL for last season s accomplishments. This year United Water Rahway is sponsoring a team for boys ages 12-15. Drive On United Water New York employees responded in a big way to a clothing/toiletry/ food drive sponsored by United Way of Rockland. Items were donated to three of their agencies which havegrou p homes. These include the Rockland Family Shelter, Volunteer Counseling Services, Mental Health Association, and Y AIIRockland County Association for the Learning Disabled. Special Delivery Procurement analyst, Barbara Reilly, based in Oradell, NJ, is heading down under" to deliver a paper forthe Organisation for Economic Co- operation and Development (OECD). The OECD is a group of 30 member countries that share commitment to democratic government and the market economy. Its work covers a wide variety of economic and social issues. Reilly took advantage of United Water s Tuition Assistance Program and received her MBA in Management in May of 2003 from Ramapo College of New Jersey. She is presenting the paper developed for her master s project entitled "1997 OECD Convention Against Bribery of Foreign Officials in International Business Transactions: The Response of the Republic of Italy and Major Italian Companies. The paper is being presented at the Academy of WorId Business, Marketing & Management Development Conference which will be held July 13-16 at the Gold Coast, Queensland, Australia. The presentation by one author of the paper will ensure publication by the Academy. A large percentage of the funding for the trip is being provided by Ramapo College, while additional funding is being provided by the conference itself. Financial Times Thirty members of United Water s financial team from across the country met in Haworth, NJ, on June 16 and 17 to attend the company s Finance Conference. The purpose of the conference was to confirm roles and responsibilities, set priorities, discuss critical topics and create an integrated finance team. About half the participants had an opportunity to make formal presentations on variety of specific topics. In addition, team members attended breakout sessions on budgeting, working capital, procurement and career paths. Sh~United Water 1(" .. It was a great opportunity to meet colleagues from all business units and to establish a common understanding of the company s financial role, goals and objectives. Participants will bring this information back to co-workers who did not attend the conference due to budget constraints. The event was such a success that discussions are already in the works for next year s conference. The company hopes to expand the number of financial professionals who attend this important event. Information Please The United Water Information Network (UWIN) Project continues to make progress and is on track for an October "go live" date. The project team completed the prototype review sessions which provided United Water with a first look at the new system. These sessions were the means through which the system design was validated, providing an opportunity for users to offer suggestions for system refinements. The finance leadership team and others involved in the design process provided feedback. The project is now ready to move on to the testing phase which will involve additional end-users. The test process will help ensure that the system is "bug free" and further validate that the system meets all of United Water s business process requirements. In addition to testing for problems and issues, participants will help the team test interfaces, converted data and custom reports. Just Ducky It was a bright sunny day in Killingly, CT,when Lou Chartier, process technician, found a mother duck in an aeration basin and nine baby ducks in another. According to Marlyn Cutler, momma must have jumped in and the ducklings followed her not realizing that she could jump out but they could not! Mter constructing a makeshift ramp from the inside to the outside of the tank, the Killingly rescue team of Chartier, Dick Emond and Randy LeBeau walked away in hopes that momma duck would lead her ducklings to safety. Unfortunately, this strategy didn t work. The team then 8I8r7 resorted to catching them with a net and moved them down to the river and let them go. It was a success-or so they thought. The next morning the ducklings were back in the aeration basin. Two weeks have gone by and the ducklings insist they are going to grow up in the aeration basin. They have even learned how to use the makeshift ramp! RAIDERS Return The Suez 2004 RAID was held June 10-13 in Font Romeu, France, located in the breathtakingly beautiful Pyrenees. The United Water RAIDERS arrived on June 8 and quickly became familiar with each other, the local citizens and the spectacular location. The events over the next few days were challenging and grueling. Our team competed with other teams, some of whom have trained together for months and in some cases, years. The RAIDERS were competitive, but in the cooperative spirit of "WeAre SUEZ" and the RAID Charter, helped other teams along the way. As a mixed team, the Raiders took 5th place and overall came in 62nd One highlight for the team was meeting Suez chairman and CEO, Gerard Mestrallet. Other RAID highlights and photos from the Font Romeu are posted on SWAN, the Suez Intranet. From Sh~United Water e. your United Water browser, visit http://intranet.swan.suez/ and click on "Suez and You/Raid 2004. United.Water was represented by Susan Coughlin (Harrington Park), Doug Beesley (Indianapolis), Matthew Hobba (Harrisburg), Bill Lenart (West Nyack), Jarmila Cary (Boise), Jason Fuchs (Harrington Park) and Iris Muralles (Burbank). Safety in Numbers Accidents Resulting in Lost Time 2003 Actual Actual Actual Annual January February March Average 2004 2004 2004 Actual April 2004 Actual May 2004 Helping Hand Kudos to Steve Howerter, who works at the water treatment plant operated by United Water in Phillipsburg, NJ. Howerter was quick to lend a helping hand when a report of trouble came over his radio. He immediately headed to a nearby fishing spot on the Delaware River where two other Good Samaritans had pulled a drowning man from the bottom of the river. They were unable to bring him over the tenfeet of sharp rocks to the riverbank. Howerter jumped in and assisted with the effort. The man was flown to a hospital for treatment. Suez News Award Winner Suez Environnement has received a Wodd Business Award in recognition for their contribution to the United Nations' Millennium Development Goals. By 2015, the UN aims to reduce the number of people living in extreme poverty by 50 percent through eight primary development goals including one that addresses access to water and sanitation. The Suez Water for All program is one of 10 projects worldwide to have received a 2004 World Business Award. Water for All is a research and development program that aims to improve access to water and sanita tion services for underprivileged communities in developing countries. P Upgrades Perspective On June 2, Standard & Poor s issued a press release confirming the A- rating on Suez and upgrading its perspective to stable from negative. This demonstrates the company s good operating performance in 2003 and the quick pace at which management implemented its 2003-2004 strategic business plan, especially regarding the net debt reduction level and the cost reduction program. Suez has been rated A- for its long-term debt by Standard & Poor s since Aprl12001. The company is listed on the Euronext Paris, Euronext Brussels, Luxembourg, Zurich and the New York Stock Exchange. Sh~United Water 8. Customers - Employees - Efficiency July 30, 2004 Owning Our Success The Contract Services (non- regulated businesses) Segment held its first annual project managers conference in Indianapolis on July 20-22. This year theme was Owning Our Success." The conference focused on defining the importance of project managers in United Water s business model. Significant time was spent identifying the skills required to be a successful project manager. Tony Harding, chief executive officer, Xavier Boulat, chief financial officer and Ed Imparato, vice president of finance, also attended. Harding talked about the state of the company while Mike Buchanan, executive director of finance, Boulat, and Imparato lead a roundtable discussion about the current financial picture and the 2005 budgeting process. Presentations were given by technical services, human resources, client services, legal and finance representatives. Each presenter introduced their team and the services they offer in support of our projects and customers. JC Goldman, president and COO, Contract Services, discussed the company s commitment to the environment, quality, safety and integrity. He also explained the philosophy that we create own our success" and discussed the team s commitment to providing leadership and support in the effort to fulfill our obligations to our employees and clients. The Wheel Thing United Water employees just love their wheels. This summer they ve turned out to support "Hot Rods and Harleys" as well as "Classic Cars." In New Jersey, our folks supported the Rahway Center Partnership s efforts to revitalize the downtown. Nearly 8,000 people crammed into the business district where they enjoyed a rainbow of hot rods, ranging from muscle machines to customized classics as well as a full array of motorcycles -- or HOGs as the Harley Owners Group sometimes calls them. Meanwhile in West Nyack, United Water New York sponsored their annual Classic Car show to benefit the Camp V entureFoundation (CVF). This non-profit organization cares for people withdevelopment . . , . al disabilities in Rockland County. United Water employees raised over 600 this year,bringing the total donations for the past seven years to $30,000. The funds have been used to support a variety CVF projects including rehabilitation of a summer camp and the construction of a memorial pond. Sold! It was going, going, gone in Boise, Idaho, where United Water employees and friends engaged in the all-time favorite "Live Auction." Generous cash contributions by employees and friends exceeded Sb~r United Water e. $11,500 at United Water Idaho s annual Employee Charitable Contribution s Event held on June 24.. This fun-filled afternoon included barbecued hamburgers, chicken, salads, chips, and brownies. Once hungry bidders were properly fed, bidding cards flashed in hot pursuit of 120 items ranging from tents, cameras, tires, rounds of golf, original water colors painted by employees, photographs taken by retirees, handcrafted birdhouses and hand-tied fishing flies, just to mention a few. Nextel equipment can be purchased at substantially discounted prices, sometimes exceeding over 50 percent off the list prices. When purchasing new or replacing your existing company Nextelequipment, please sure to contact procurement for order processing. If you want to activate a new line or replace exis ting equi pmen t, contact Chris Lee in corporate procurement for a new order form. The program also extends the same benefits to all United Water employees and family members who wish to make purchases for personal use. Please contact the Nextel rep for more information on purchasing new phones and services and enrolling your existing personal N extelline under the program to take advantage of the discount. Our rep is Martin Pavlinec, cell 862-849-6900 or email martin. pavlinec(g?nextel.com. U1ftDtS C IIAIUT A8LB CONTIUBVIIONS co. Proceeds from previous years have gone to support over two dozen charitable organizations in the areas of education, youth activities, wildlife! domestic animals, health and human services, fire and police services and service organizations. Special recognition goes out to company vendors who help to make this event possible by their donations, as well as UWID committee members Clayton Noble, Bob Lawrence, John Lee and Joyce Sanford. Purchasing Power A corporate-wide initiative to streamline the supplier base and reduce expenses, has great benefits for both company and personal N extel accounts. Our corporate procurement department has negotiated and established a national program that enables all United Water employees to take advantage of services and products offered from Nextel Communications. Highlights of the corporate program include: . New and existing Nextel accounts under the United Water corporate program will receive a 10 percent discount off the monthly recurring charges. Walk FAR For NAAR Ray Cywinski (United Water New Jersey) was up before the birds on June 6 as he prepared to serve our favorite brand of water to 000 walkers raising funds for autism research. Walk F. (Family and Friends for Autism Research) For NAAR is the signature fundraising event of the National Alliance for Autism ~ Research (www.naar.org). The organization is dedicated to funding biomedical research focusing on autism spectrum disorders. Autism is a complex brain disorder that often inhibits a person s ability to communicate, respond to surroundings or form relationships with others. ItSb~r United Water e. is typically diagnosed by the age of two or three and affects people of all racial, ethnic and socioeconomic backgrounds. This is the third year running that Cywinski has been at Manhattanville College in Purchase, NY, helping to quench a thirsty crowd. This year the local walk raised over $600.000. Suez News We Are Suez Four thousand employees from European-based Suez companies recently gathered in Paris to launch the "WeAre Suez" campaign. This is an educational project aimed at helping employees develop a common understanding of Suez' future, the issues facing the business, and each employee role in achieving organization goals. Gerard Mestrallet, chairman and CEO, was the keynote speaker. He focused on the three Suez-corporate level topics: . Identity-An industrial and services group focused on energy and environment activities. . Ambition-To be the best with the best performance. . Strategy-Simultaneous and sustainable development of energy and environment activities. are~'-~e All Suez subsidiaries, including United Water, will develop a plan that addresses each of these three areas. In the summer edition of Terre Bleue, the Suez magazine, Jean-Louis Chaussaude, executive vice president of Suez Environnement, was asked about the company s main growth areas. He responded, we clearly need to refocus on the developed countries, primarily the U.S. and Europe, while not turning our backs on other international developments, provided we take managed, calculated risks." In the coming weeks, United Water will develop its "WeAre Suez" plan that reflects the company s identity, ambition and strategy within the Suez organization. In October, Mestrallet will hold a WeAre Suez" conference for. North America employees. Financial Results During the first-half of 2004, Suez achieved organic revenue growth of +5.2%, to EUR 19. billion as of June 30, 2004 (versus EUR 19.5 billion at June 30, 2003). Organic growth stemmed principally from: Electricity & Gas International (+ 37.7%, or + EUR 712 million) thanks to the continued expansion of LNG activities in the United States (+ EUR 143 million), the success of Tractebel Energy Services Inc (TESI) in its direct sales activity in the United States to industrial and commercial clients (+ EUR 153 million), and to the start-up of four new power plants in 2003 and early 2004 (+ EUR 309 million). . A rise in electricity sales in Europe (+ 5.6%, + EUR 180 million), and especially from wholesale transactions. The water activity in Europe (+ 4.8%, + EUR 88 million), particularly in France and Spain and with industrial customers. Overall, other Group activities recorded stable revenue reflecting solid positions. To read the entire press, visit Quench at h Up://quench.unitedwater.com Safety Accidents Resulting in Lost TIme Actual April 2004 Actual May 2004 Actual June 2004 2003 Actual Actual ActualAnnual January February MarchAverage 2004 2004 2004 Sb~r UnitedWater .. Customers - Employees - Efficiency August 30, 2004 Arkansas Rates A Success Earlier this year CEO Tony Harding implemented a plan to focus on the specific needs of our regulated and non-regulated businesses. This included incorporating regulatory planning into the company s business process. The plan yielded its first success last month when the Arkansas Public Service Commission (PSC) approved an overall 12.6 percent rate increase for United Water Arkansas. The PSC approval culminated more than a year of work by a team consisting of United Water Arkansas and the . regulatory business, finance and technical services departments. Mark Gennari, of the regulatory business department, led the group s efforts. United Water Arkansas customers have not had a rate increase since 1997. Since then, the company has incurred costs related to various improvements and capital investments which ultimately benefit the customer. By law, a utility is entitled to recover its expenses and earn a reasonable rate of return on its investment. On September 30,2003, after months of preparation, the company filed an application with the PSC. What followed was an unprecedented seven-month discovery period during which the PSC requested information to further substantiate our request. During that time, the team responded to more than 300 data/information requests (in contrast to approximately 40 in the prior rate case). They also filed testimony rebutting the PSC's initial recommendation and then entered into settlement discussions. The case was settled a few days before the hearing in Little Rock scheduled for June 21. The new rate structure will result in a 5.98 percent authorized rate of return and additional annual revenue of $920,834 for facilities and consumption-based increases. In addition, there is an opportunity to earn an additional $144,234 based upon new connection charges and late payment fees. The new rates were approved June 22nd and became effective July 30th United Water s last rate case was filed in 2000. The company plans to file rate cases for United Water New Rochelle and United Water Idaho by the end of the year. A Charity for Water Professionals For many years United Water has contributed its resources, both human and financial, to organizations that provide a full range of services that help make the communities we serve better places to live. These have included such national charities as United Way and American Red Cross. This year United Water made its first major donation of$10,000 to Water for People, an international humanitarian organization that helps deliver water services to communities throughout the world that lack access to drinking water and adequate sanitation. Pictured to the left of our CEO Tony Harding is Steve Werner, the Executive Director of Water for People. Sb8~~nited Water .. Water for People gives us the chance to connect our business with an organization that provides workable water solutions for people throughout the world," said CEO Tony Harding. "It provides a great opportunity for us to share our resources and have an impact on present and future generations of people. United Water employees will also be able to help contribute to Water for People. This fall the company will kick off a workplace giving campaign, where you will be able to make a financial contribution through a user-friendly, payroll deduction form. There will also be opportunities to get involved in helping Water for People out in the field at one of their projects. Good Deeds What A Walk Elaine O'Brien put on her walking shoes, covered miles in three days and raised $4,200 to fight breast cancer. O'Brien, an executive assistant in the corporate legal department, recently completed a Day Breast Cancer Walk for the benefit of the Susan G. Komen Breast Cancer Foundation and the National Philanthropic Trust. More than 1 000 walkers (including 60 survivors) raised over $3 million to fund access to care and to find a cure for breast cancer. Brien s walk took her through four boroughs of Manhattan. She strolled over the famed Triborough, Brooklyn and Bayonne bridges with their spectacular views and enjoyed a short rest on the Staten Island Ferry before pounding the pavement again. If you see O'Brien strolling on her lunch hour, she s already in training for next year s event. To learn more about the walk, visit www.the3day.org Safe Haven United Water Idaho and United Water Resources, recently made a combined $10,000 contribution to help support Community House in Boise. "For ten years Community House has been providing a safe place for many individuals and families in need of emergency and transitional housing," said Greg Wyatt, general manager of United Water Idaho. "ThisSb~ work is vital to the health of our community because it really touches people s lives in practical and meaningful ways. We at United Water believe this is an important area for our involvement." Mayor David Bieter accepted the donation on behalf of Friends of Community House during a press conference on August 5. Wyatt made the presentation along with Bob lacuno, chief operating officer of United Water s regulated business segment. Notable Notes United Water contributed $1,500 to the Freeport Illinois Library Building Fund. The new 40,000 square foot library replaces a Carnegie library that was built in the late 1890s. Volunteers from United Water operations in New Jersey assisted with a painting project at a group home in Paramus for Children s Aid and Family Services. Barbara Reavis, Mercedes Pedemonte and Sue Crawford of United Water New Rochelle raised $400 for the American Cancer Society Health Walk. Continuing Education United Water Indianapolis has completed another successful year with the students of Arlington High School. The farewell luncheon held on , .. August 13 completed the eleventh summer for ; the Adopt- School program. Committed developing and improving young peoples' lives, the employees of United Water have continued to volunteer their time and talents to serve mentors for this internship program. Their UnitedWater*" .. commitment provides the students with valuable on the job training that focuses on work ethics, positive attitudes, communication, adaptability, teamwork, attention to detail and attendance. This year the program concentrated on the importance of entrepreneurship. Special guest speakers at the luncheon included the CEOs from National City Bank, Milor Supply,T&T Cleaning and Construction, Byerly Insurance and Professional Data Dimensions. As a wise investment in our future and our community, United Water will continue to strengthen its partnership with Arlington High School. Fantastic Friday the 13th They re at it again in Boise. The famed Friday the 13th superstition was turned inside out and upside down as United Water Idaho families gathered at Boondocks (a local amusement park) on Friday, August 13 for an evening of fantastic " fun. Employees, retirees and family members enjoyed an "All American B-Q" and after dinner thrills. The night of splashes and crashes included bumper boats, go-karts, miniature golf, arcade games and laser tag. Diane Baird' granddaughter Makenzie (age 8) summed up the evening when she said, "Please you tell your boss we want to do this again!" Greg, it's time to make next year s reservation! Picnic Season United Water New Rochelle held an employee recognition picnic at Five Island Park on July 2. The team enjoyed barbequed picnic fare and visits with retirees who joined in the fun. Chris Riat, operations manager, recognized employees who received service awards, community outreach volunteers and those who had not taken sick time during the year. United Water Delaware held its annual picnic on August 7 at the Brandywine Picnic Park. Employees, one retiree and their families and friends enjoyed a cool day of fun. There were activities for everyone including horseshoes, volleyball, a rock climbing wall, tubing, boating, amusement prize games and carnival rides. And in true United Water style, the food was plentiful and the crowd chowed down on a full menu of great picnic food. In Memoriam Vinny Delanzo United Water expresses its condolences to the family and friends of Vinny DeLanzo who passed away on August 11 after a brief illness. DeLanzo, an employee of 10 years, was supervisor of the United Water Jersey City meter shop. He is survived by his wife, Viola; and their 17-year-old son, Johnathan. Contributions in his honor can be made payable to Viola DeLanzo, C/O Rose Nichols, Human Resources, Harrington Park, NJ. Vandegriff Family Fund Friends of John Vandegriff have organized a golf outing to support the Vandegriff Family Fund. Vandegriff, a senior technical analyst at United Water Idaho, passed away in March. The outing, which will benefit his three young sons, will be held on September 17 at the Valley Brook Golf Club in Rivervale, NJ. To participate or contribute, please visit www.vffgolfouting.org or contact gary .albertson (g!uni ted water. com. Sb8~r UnitedWater .. Customers - Employees - Efficiency September/October 2004 We Are Suez In early October, 150 United Water managers attended the We Are Suez Convention in. New York City. This educational project is aimed at developing a common understanding of Suez' future and the issues facing the business. Gerard Mestrallet, chairman and CEO, focused on the group s identity, ambition and strategy. Jean Louis Chaussade, CEO of Suez Environnement, and Alain Chaigneau, who heads the Americas operations, reiterated the group s support for United Water and its commitment to the North American marketplace. The speakers' key messages focused on sustainable development, the financial recovery process and redirecting activities to low risk countries, including the U.S. Both Chaussade and Chaigneau attended the United Water Managers Conference on the following day. ~.s'-"ez United Water Managers Conference Tony Harding, CEO, opened the conference with a report on the company s strategy and progress against the Direction for the Medium Term, which was approved by the board earlier this year. He emphasized the need for clear and consistent direction after a long period of change and instability. He also reviewed the rationale for distinct regulated and contract services business models. During his presentation, Harding discussed the importance of shifting the company s focus from growth at all costs" to "continuous performance improvement" Bob lacullo (COO, Regulated Business), JC Goldman (COO, Contract Services), Alan Thompson, (Sr. VP, Technical Services) and Xavier Boulat, (EVP & CFO) led team presentations highlighting their areas of responsibility. They discussed optimizing regulated and con tract services portfolios, improving performance and profitability, renewing and refining existing contracts and pursuing profitable, proximity growth, when appropriate. Other key areas, including rate strategy, capital expenditures, customer service, client relations, employee development and health and safety, were also addressed. At the end of the presentations, Harding moderated a question and answer session with the Executive Management Team. He concluded the meeting by acknowledging the hard work and achievements made by United Water employees in a short period of time. Harding will resume his "What's On Your Mind?" meetings beginning with United Water Idaho. He will review highlights from The Managers Conference and answer employee questions about the company s plans and progress. ho11t1iigSiar United Water .. Stormy Weather It was a hurricane season the likes of which we can only hope we never see again. United Water employees rose to the challenge of providing the best service possible under some of the most difficult flooding conditions imaginable. Harrisburg, PA, saw the worst flooding in years when Hurricane Ivan showed up in town. The Hummelstown Plant was flooded out and operations were severely curtailed at the Sixth Street Plant. Residents were under a boil water advisory from September 18-23 and then again from September 29- October 2. The United Water Pennsylvania team worked around the clock to restore service as quickly as possible. Plans are currently underway to move the Hummelstown facility out of the flood plain and to upgrade the treatment technology at the Sixth Street Plant. And in Phillipsburg, NJ, Hurricane Ivan caused the Delaware River to rapidly rise feet above flood stage. As a result, the Riverside Way lift station, located on the riverbank, was taken out of service on Saturday, September 18. Good planning and quick action by the United Water team minimized the impact of raw sewage overflowing into the Delaware. Much of the normal flow was diverted to an alternate route to the plant. On Monday, the water had subsided enough to allow personnel to install a bypass pump, and remove and repair damaged motors, pumps and electrical components. By working around the clock, the team was able to get the station back online by Wednesday. Up and down the east coast, all United Water operations worked hard to weather the storms. In Florida, where four hurricanes hit in six weeks, the Jacksonville team did a great job of keepingtheir systems up and running. Hurricane Jeanne was accompanied by tornadoes in Delaware where the Christiana Plant was out of service due to flooding but operations were maintained at the Stanton Plant. United Water teams in North Carolina New York, New Jersey and New England also braced for each of the hurricanes. Our business units rolled out their hurricane plans and staffing strategies for each event. Kudos to everyone who prepared for or responded to these emergencies. Security Matters United Water was recently selected to represent all privately owned water companies on a national security council. Scott Para, security manager for the regulated segment, is the company s designee on the Water Sector Coordinating Council (WSCC). The WSCC is a panel of drinking water and wastewater treatment utility officials who will act as advisors to the Department of Homeland Security (DHS) and the Environmental Protection Agency (EP A) on water security issues. One of the first issues that the group will tackle is the mechanism used to communicate sensitive information to all water and wastewater sites, regardless of size. The WSCC will look at the existing Association of Metropolitan Water Agencies Water Information Sharing and Analysis Center (WaterISAC) and the DHS' Homeland Security Information Network (HSIN). The group will also address a variety of other detailed substantive issues and make recommendations to the DHS and the EP Water Rights Agreement United Water New York, the Palisades Interstate Park Commission and the New York State Office of Parks, Recreation and Historical Preservation have signed a letter of intent for United Water to purchase water rights associated with the Letchworth Water Treatment Plant. The parties will now enter into negotiations to formalize theSh~United Water j(... specific terms of the agreement. This agreement is an important step in adding a new source of supply for Rockland County residents. As outlined in the letter United Water will be able to purchase 1.5 million gallons of water per day from the three reservoirs that supplied the Letchworth water system, an existing water supply that once served the Letchworth Mental Health Facility. In addition, the company will operate and maintain the plant and make improvements. The Palisades Interstate Park Commission and the State of New York will retain ownership of the Letchworth water system. Wall Promoted Charlie Wall has been promoted to senior vice president of human resources and has assumed responsibility for overseeing the company s human resources strategies and programs. His selection was based upon input from an outside executive search firm, as well as his outstanding performance during his career at United Water. Wall has worked human resources at U ni ted Water since 1996 and he has held positions of increasing responsibility since joining the company. In addition, he brings a wealth of experience from previous employment in the manufacturing, wholesale distribution and retail industries. His fields of expertise include such areas as pension and welfare funds, labor relations and benefits administration. We wish Charlie every success in his new position and as a member of the Executive Management Team. Confined Space Training United Water Gary, the Gary Sanitation District and the Gary Fire Department recently hosted a three day confined space rescue training program. East Chicago Water District employees also participated in the event. The training, which is mandated by the Occupational Safety and Health Administration, involved scenarios where workers were rescued from manholes or air vaults using a tripod and rescue winch. Each participant was lowered and then raised in and out of the space and each operated the lift device. The training also involved classroom work with Alexander Williams, safety and security coordina tor for United Water. By working together with community organizations, we can share our knowledge and strengthen our capabilities," said Dwain Bowie, general manager of United Water Gary. "While our ultimate goal is to prevent accidents, we must always be prepared for the unexpected. This is a great example of how we can improve work place safety by encouraging collaboration between our employees and neighboring agencies. Good Deeds Favorite Dad Purpose, passion and perseverance are three things that go a long way when embodied in the right person. And the right person just happens to be a United Water Indianapolis employee, volun teering effortlessly to help strengthen the community. Anthony Wallace, the co- founder and coordinator of Arlington High School's Security Dads Program, was a recipient of the Mayor Community Service Award given on September 20. The Security Dads program is an opportunity for . fathers to get more involved with the school and give back to a community that has given much to them. Their goal is to discourage violence while encouraging peace and strong values. Security Dads are positive influences and role models to many students who may be from fatherless households. Since the inception of Security Dads in 1989, the program has logged more than 250;000 hours of volunteer time at Arlington High School. Sb~United Water .. Making Strides Juanita Alaniz, O&M specialist in Gary, IN,led the way for the American Cancer Society's "Making Strides Against Breast Cancer" walk on October 17. The 49-year-old cancer survivor was joined by 2,700 people who raised about $160,000 for research, education and support programs. Alaniz participated in the walk with several United Water co-workers who raised $1 000 for the event. In a recent Post-Tribune newspaper article, Alaniz acknowledged United Water employees who offered her support during the treatment and recovery process. For more information about "Making Strides Against Breast Cancer" visit the American Cancer Society at www.cancer.org Day Of Caring United Water employees in New York and New Jersey rolled up their sleeves for United Way s Day of Caring on October 1. About 24 employees spent .. the day sprucing up Camp Visions for the Blind in Spring V alley, NY and Spectrum for Living s newest facility for adults with disabilities in Teaneck, NJ. Todate, area employees have raised over $18,000 for the United Way campaign. Arts For Kids United Water Idaho helped kick off the City Arts Celebration last month by sponsoring 1/ Arts for Kids. The company s generosity created an opportunity for disad van taged children to attend free hands-on art workshops that were facilitated by professional artists and art educators. In addition to four 45-minute art workshops, audiences also were entertained by the area s best musicians and multicultural performing groups. The celebration was held around the fountain at Boise Centre' on the Grove. The fountain, a centerpiece for many Boise events, was donated to the community by United Water Idaho in 1990. Cross-Functional Teamwork What is the most effective way to obtain the best value when purchasing 180,000 radio frequency (RF) units and 90,000 meters? The $15-$20 million question focused on preparing a Request For Proposal (RFP) to replace existing HOMER equipment in New York and New Jersey. The capital expenditure (CAPEX) project would take place over a five-year period and required careful planning. In early 2004, the corporate procurement department (now known as supply chain management or SCM) answered the question with input from a cross-functional team of employees. They included representatives from operations, customer service (including the meter shop), legal and information systems. The goal was to create a clear, detailed and comprehensive RFP to present to major meter and RF manufacturers. The team identified equipment specifications, meter shop issues, customer service implications, pricing, scheduling and capital budget impacts. Members also conducted vendor sessions at both pre-bid and short-list meetings and made a final recommendation to management. Negotiations are currently underway to finalize an agreement. The successful bidder will be announced in the near future. By working together, the team addressed a wide range of concerns, ensured the best decision for the company and maximized significant cost reductions. Since this approach was so successful, the SCM group will actively promote cross- functional teams for future major sourcing initiatives. Sb~UnitedWater j(. 8. Finance Project The Finance Project is reaching completion and the majority of the new system is live. There was a tremendous effort put forth to get the new system ready and rolled out across the organization. The changes afford us an opportunity to improve our business processes, streamline or simplify work in some areas and provide new functionality, particularly for the non-regulated businesses. Going forward, there will be new tasks to learn, system refinements that must be made and problems that must be resolved. As a result of everyone s hard work, United Water will be able to benefit from the new system and from efforts to optimize and simplify the business processes. Open Enrollment Reminder Your 2005 Open Enrollment kit should arrive at your home next week. If you do not receive your kit by November 12, please contact the benefits department at 800 664 4552, extension 3052. The Open Enrollment period begins on November 8. Please note that this year s Open Enrollment is an ACTIVE enrollment for the medical plans. If you do not actively enroll, your 2005 medical election plan will default to UnitedHealthCare s Choice Plus 2 Plan at your current coverage level. Your other elections, with the exception of flexible spending accounts, will remain the same. Check your enrollment kit for more details. Remember, choose well, use well. . .live well! Safety In Numbers Accidents Resulting in Lost TIme -.:t C') ~.. ~ 'E II) ~'. ~o:t ::!:o:t c: ~ g' ~ ~o:t -0 -0 ~~ 0:I::U IO~ iI~ ~8 ~~ ~~ iij~ aM::- ""'0 "-0 ION 'U 'U :I 80:1:iij 0:1: 0:1: ~ 0:1: ... 0:1: ..... ti :u S:I -.c CJ '" E :I II) 60:1: u ... iij 0:1: 51- .:. (IJ In Memoriam United Water extends its deepest sympathy to the family and friends of John Rapp who recently passed away. Rapp, 66, was a distribution inspector at United Water New York where he had been an employee for 40 years. He is survived by his wife, Arlene, and their children and grandchildren. Suez News 2004 Half-Year Results: Net Income of EUR Billion The Group s half-year results reflect fine operating performances by Group businesses: Solid organic growth in revenues and gross operating income (EBITDA): +5.2% and +8.1 %, Strong growth in net current income, Group share (NCIgs): $695 million (+32.5%). The Group s four business lines and their divisions all contributed positively to net current income, Group share. Suez Environment recorded a swift turnaround: an increase of $117 million in NCIgs, $960 million in capital gain on the sale of M6, Net income, Group share: $1.73 billion for 1st- half 2004 reflecting further improvement in the Group s operating performance and the M6 capital gain. The business strategy implemented by Suez focuses, in particular, on ongoing financial discipline. Contract Developments Suez recently signed two new water agreements in China, which the Group has been identified as a stable environment for sustainable growth. The company has entered into a public-private partnership to construct a new drinking water plant for the municipality of Qingdao. In addition, Suez was awarded a 35-year drinking water concession in Tangu to serve residential customers as well as one of the busiest ports in the world. Mexico, Suez extended its service supply contracts with the Mexico City municipal water company. Sh~United Water *-... Customers - Employees - Efficiency November 30, 2004 Regulated Managers Conference Senior managers from United Water s regulated business segment attended a company conference on November 9 - 10. The event took place in Weehawken, New Jersey where United Water was founded in 1869. COO Bob lacullo noted the significance of the location in his talk which addressed preparing for the future by getting "back to basics." He noted that in recent years, the growth at all costs" philosophy had shifted focus away from fundamentals. However, in 2004, the company adopted the Direction for the Medium Term" and made a commitment to "continuous performance improvement" Along with that comes the recognition that operations and customer service are still the keys to our success. Consequently, the regulated businesses have developed a plan to make improvements through the right mix of capital and operating expenditures. This includes implementing a rate case strategy that will involve input from business units and corporate departments alike. By focusing on the "basics United Water will strengthen its position with customers and regulators. and prepare for future growth in proximity markets. Jim Glozzy, John Hollenbach, Mike Pointing and Greg Wyatt each provided updates on the business units in their divisions. Representatives from corporate departments spoke on information systems, human resources and customer service issues. In addition, financial, supply chain,legal, rate and technical service matters were also discussed. Many of these specific topics will be addressed in future issues of the Shooting Star. Customer Service Conference United Water s first Customer Service Conference was held on November 3 .;... 4 at the Emerson Golf Club, Emerson, New Jersey. Customer service managers from all United Water locations attended. The theme for the event was Bridging Services to Deliver Customer Value." Several executives also attended and spoke of the importance of customer service as a function and a philosophy throughout the organization. Key members of other United Water departments attended including information systems, communications, accounting, internal audit and operations. The first day of the meeting focused on "shared learning" where best practices were shared through presentations of local and corporate business plans. The day concluded with a presentation by Utility Business Services showing enhanced functionality of the current billing system, Wins II. The second day focused on generating ideas" to determine how United Water b..tiffIngstAr UnitedWater .. can differentiate itself in service to customers and strengthen its internal customer service network. Topics included leveraging technology (Interactive Voice Response), financial success stories (finding $1 million in unbilled revenue in UWNJ) and understanding regulatory parameters (Sarbanes- Oxley Act). CEO Tony Harding complimented Lynne Allaker executive director of customer service, and her team for two outstanding days, "Congratulations. The content and atmosphere of the conference were both excellent I really feel that everyone is pulling in the same direction and is willing and eager to learn from, and adopt, best practices. We have made huge progress in the last number of months." COO Bob lacuno also commended the customer service group for a great conference and for their hard work throughout the year, "The exchange of ideas and practices will surely benefit all and enable us to provide 'excellent value for money services' to our customers. Good Deeds Delaware Supports The United Way United Water Delaware recently raised $1 270 through their local United Way Campaign. Employees contributing on the first day of the campaign were entered into a "same day" raffle for prizes donated by United Water and Susan Rife. Dave Fournier, production superintendent, was the luck winner! Rhode Island Supports The Stars United Water Rhode Island helped sponsor Wakefield Elementary School's production of a play called "Hydroscope." It covered the entire water cycle and played to a full house of parents, friends and members of the community. At the cast party, each of the students was presented with an invitation to pick up a water conservation kit at the United Water office. The kits will be used in their math classes where they will learn to calculate how much water they can save by changing their water use habits. Support Our Troops Here are some useful links if you would like to support our men and women in uniform during the holiday season. For tips on mailing packages to military personnel overseas, visit the U.S. Postal Service (USPS) at www.usps.com/suJ2Portingourtroo~. Both the USPS and the U.S. Army www.army.miVoperations/iraqLfug.htn11 remind us that you cannot send unsolicited packages to "any service person." Instead, they refer you to other possibilities including donating a calling card at www.operationuplink.org or sending a "Gift from the Homefront" gift certificate through www.aafes.com/docs/hom efronthtm.The gift certificates enable military personnel to purchase items at military facilities around the world including those associated with operations in Iraq and Afghanistan. You can also make a contribution to the usa www.usocares,org to sponsor a "care package for the troops. For more ideas, visit www.defendamerica.miVsupport troops.html. Gift Policy At this time of year, you may have questions regarding whether or not to accept holiday gifts from outside sources. Our policy states that the occasional exchange of business courtesies such as modest gifts, meals and entertainment is an acceptable practice. These small gestures can be accepted. However, do not accept a gift if appears to be an attempt to influence your relationship with a vendor or to obtain personal favors. The complete policy on gifts can be found in the HR Policy Manual. You can also log onto Quench (http://quench.unitedwater.com) and navigate to the HR! Policy page. If you have questions regarding gifts, speak to your supervisor or contact a member of the Ethics Committee at 1 877 ETHICSS. Sl1o~r United Water j('.. Flyte Tyme Reimbursement In an effort to enhance the payment approval process and streamline invoice processing, starting December 2004, employees are required to pay for Flyte Time ground transportation services using a personal credit card. The employee will be reimbursed through the PeopleSoft Travel and Expense (T &E) system. The new procedure mirrors the current expense reimbursement policy on hotels, meals, and other travel related incidentals. Flyte Tyme is United Water s preferred supplier for all ground transportation in the New York/New Jersey area and should be utilized for all business related trips requiring ground transportation services in that area. In addition, Flyte Tyme provides preferred rates for United Water employees and the benefits can also be extended to personal travel needs. You can find more information about the services they offer by visiting www.flytetymelimo.com or by calling 1 800 920LIMO. Halloween Celebrations Who says Halloween is just for kids? The United Water New Jersey customer service department enjoyed the day in style. Not to be outdone, United Water Idaho employees showed up for work in good spirits and great costumes. ho1ltfi1iSi1r United Water .. Customers - Employees - Efficiency December 22, 2004 News From Idaho Renewable Resource Initiative United Water Idaho has launched its Renewable Resource Initiative. The goal of this program is to shift reliance on new sources of water from ground water wells to surface water. The initiative is designed to meet the current and future water needs of the Boise Valley. The new Columbia Water . Treatment Plant is a key element in this plan. The state-of-the- art plant will treat water from the Boise River, initially expanding the company s water capacity by 6 million gallons per day (MGD). The facility is designed for incremental capacity additions of 1-2 MGD, as required. The anticipated build out capacity of 20 MGDs could occur over a 15-20 year period. In addition to using a renewable surface water supply, the plant uses cutting-edge membrane filtration technology which results in higher quality finished water. The plant is expected to be online in March of 2005 and will be featured in future issues of the Shooting Star. Rate Case Filing United Water Idaho has filed an application with the Idaho Public Utilities Commission (IPUC) requesting a 21.46% ($6.768 million) rate increase. The company s last rate adjustment was in September 2000. Since then, United Water has invested more than $41 million in water supply, treatment, and storage and distribution facilities in order to maintain and improve service to customers. These investments include the construction of the Columbia Water Treatment Plant and new water storage reservoirs that provide stable pressure and improved fire protection. The company has also renewed the water system infrastructure by replacing over miles of water mains, almost 3,000 water services and about 22,000 water meters. These improvements are critical to the long-term integrity of the water system, to meeting Boise present and future water needs and to maintaining customer satisfaction. The rate case filing is part of the Medium Term Plan to develop an integrated rate case strategy that focuses on optimizing our performance in customer service and efficiency, arid investing in Capex at appropriate levels. United Water Idaho s requested. increase would raise rates for a typical residential customer by about $6 a month (20 cents a day), bringing the average annual bill from $323 to $395. To temper the effect on lower income households, United Water has proposed that key parties conduct workshops to collaboratively develop a 'low . , Income assIstance program. The IPUC will perform a complete investigation and analysis of United Water s request before authorizing any adjustment in current rates charged to customers. The process could take until the summer of 2005 to complete. Security Matters United Water recently took part in an important tabletop exercise on tularemia, a potentially dangerous biological weapon. The Business Executives for National Security (www.bens.org sponsored the event. BENS is a nationwide non- partisan organization comprised of senior executives who work cooperatively with Sb:United Water government to enhance homeland security. Prior to the event, the New Jersey State Police Exercise and Design Planning Unit disseminated alerts using the NC4 secure alert mechanism. Scott Para, United Water New Jersey s security manager, represented the company at the exercise held at New Jersey News Network headquarters in Trenton. Companies from the pharmaceutical, financial, information technology and health care fields were among the industries that participated. This exercise enabled the attendees to understand how different sectors would respond to an outbreak and helped them further develop their emergency response plans. According to Para, this was an excellent opportunity to help build relationships with emergency management officials. This type of drill helps ensure an effective and coordinated response in the event that a real crisis occurs. If anyone needs assistance in conducting a similar exercise, please call Para at 201 7672849. Play Ball! Congratulations to United Water Laredo s men baseball team for finishing second in their league with a record of 9-2. Slugger Tony Mora III led the way with nine home runs to earn the homerun title for the season. Back: Joel Lopez, Jorge Garcia, Jesus Melendez, Tomas Hernandez, Joe Salazar, Hector Cadena, Juan Vasquez, Tony Mora III. Front: Felix Rodriguez, Juan Bernal, Martin Dominguez, Felix Melendez, Santos Segura. Good Deeds Volunteers Honored Employees from the New York!New Jersey metropolitan area were recently honored at a volunteer recognition breakfast. More than 100 employees were recognized for their outstanding contributions to community and not-for-profit organizations throughout the year. Their projects ranged from reservoir cleanups to collecting books for needy children to helping seniors and citizens with disabilities. CEO Tony Harding and COO Bob lacuno were on hand to honor the volunteers. Special Delivery John Bohajian, from United Water New Jersey meter department, is helping the homeless this ! holiday season. Rather than i discard an abundance of great ! food from holiday parties, ( Bohajian has been making \ deliveries to the Bergen County Community Action Program. His kindness has enabled the homeless shelter in Hackensack to offer special meals to people in need. Tis The Season It's the season for giving and United Water Delaware employees gave from the heart. Employees participated in the "Basket Brigade of Delaware" by donating food items and delivering , Thanksgiving dinners to needy families around New Castle County The spirit of giving continued with their third annual Toys for Tots drive. They collected toys and donated proceeds from a 50/50 raffle held at their holiday party. All the donations were delivered to the loca: S. Marines office. Sbld~r United Water 'III A Capital Review United Water s capital expenditure plan recently received a very positive review from Suez Envrionnment's Martin Heinrich. Heinrich is director of risks and investments for the Americas. He spent the first ten days of December conducting an in-depth review of our regulated businesses. Gary Albertson, VP of Engineering & Asset Management, facilitated Heinrich's efforts which included site visits in Pennsylvania, New Jersey, New York and Idaho. The review also covered all aspects of our capital investment program, from initial planning and asset management policies through budgeting, approvals and project delivery. During the review process, Heinrich took the opportunity to fully understand United Water business and strategy. He is taking a message back to Paris that our Medium Term Capital Plan has been developed with solid asset management fundamentals, taking into account the real needs, appropriately timed, and in coherence with the regulated business strategy. The capital plan is in line with our Regulated Business Strategy and our Medium Term Plan. The forecasted capital expenditures are well above United Water s historical amounts. The outcome of this review is consistent with everything we have done recently and should help support our capital funding needs going forward. Congratulations to the entire team for their ou tstanding efforts in making the review process a success. Safety In Numbers III III ... 2003 J.n AnnuliAn,.g. Fob M., Apr M.y Jun Jul Aug Sop Oct No. VOIr-To-Olt. Have A Safe And Happy Holiday Season Shf . " 109 Star United Water 1e. Customers - Employees - Efficiency January 21, 2005 Suez Environnement Introduces the R+i Alliance: new entity to develop research and innovation projects for the main subsidiaries of Suez Environnement On January 7th, 2005, the main subsidiaries of Suez Environnement introduced the R +i Alliance, a newly created entity that will select, fund and coordinate the execution of common research, development and innovation projects of Suez Environnement's main subsidiaries and associated companies in the water business. The companies establishing this new entity are: Lyonnaise des Eaux in France, Northumbrian Water Limited in the United Kingdom, Ondeo North America/United Water in the United States of America and Suez Environnement. Other companies may be invited to join the R + I Alliance in the future. The mission of this new management and funding program is to: Integrate Research and Innovation (R + I) needs of the member companies and increase their management role in R + I activities. Facilitate visibility in the selection and financing of R + I projects. Facilitate the cooperation by and between the R + I resources of the main subsidiaries and associated companies. Coordinate the design and execution of a joint R + I program. Increase economies of scale and synergies. Obtain a better value from the results of R + I projects. The R+i Alliance is a legal and independent entity, established in Paris and the Alliance members are equal shareholders of the company. While the R +i Alliance program will certainly be addressing joint global water interests, the new entity will also look for its members to run their own R + I activities on specific issues. Coordinating and directing the research and innovation activities of the R +i Alliance will be the responsibility of the following three entities: 1. The Board of Directors, comprised by the CEOs of the member companies, will be responsible for providing strategic direction and approving the annual program: Jean Michel Theron, representing Lyonnaise des Eaux, France John Cuthbert, representing Northumbrian Water Limited, United Kingdom Tony Harding, representing United Water, USA Bernard Guirkinger, representing Suez Environnement Tony Harding has been appointed Chairman of the Board. United Water 1e.'. e. - . 2. The Steering Committee, comprised by two senior executives of the member companies, including the Technical Director and/or the Operations Director, will be in charge of identifying the needs, preparing the annual program and monitoring the progress. The Steering Committee members will oversee and consolidate the work conducted on specific topics by dedicated expert groups from the member companIes. Alan Thompson and Mike Link will be the Steering Committee representatives appointed from United Water. 3. The Management Team, including a General Manager, will be in charge of organizing the internal process, supporting the Steering Committee, ordering the projects to accredited centers, and monitoring the progress in both technical and administrative issues. At its initial meeting in Paris, the Board of Directors appointed Carlos Campos as General Manager of the R +i Alliance. Carlos is a graduate of the Polytechnic University of Catalonia in Barcelona (Spain) with a degree in Civil Engineering. He also holds both a Master and Doctorate degree from University of Illinois at Urbana Champaign (USA) in Environmental Engineering. Carlos joined the SUEZ Group in 1999 to workon R&D projects on water treatment processes in the Water Quality & Treatment Division of the Direction des Operations, de la Recherche et l'Environnement (DORE) at the Suez Environnement headquarters in Le Pecq, France. For the past 3 years he has been the manager of the Technical Support Unit of the Water Quality Division, a group of specialists that provide engineering services to the water companies of Suez Environnement worldwide. Sb,ctt1ting Stii United Water .. Customers - Employees - Efficiency January 28, 2005 Your Support is Their Lifeline Ever wonder what happens with your money once you write a check to the American Red Cross for something like the tsunami disaster? We did too, especially in light of the tremendous employee spirit displayed during our call to action. Here s what we found out about how your donation helps the people who need it most. Ron Matthews, a grandfather from Ames, Iowa and a veteran disaster volunteer with the American Red Cross, is part of a six-person team working under the auspices of the In terna tional Federation of Red Cross and Red Crescent Societies (Federation), which is coordina ting relief efforts Ron Matthews assists with relief supplies ! among the Sri distribution in Sri Lanka. I Lankan Red j Cross and sister Red Cross societies from around the world. Ron has been working with staff of the Sri Lankan Red Cross branches to identify what items are most useful to families at this point in their recovery. In the course of his activities, Ron also talks to residents of the hard-hit coastal communities to find out what their current needs are. The American Red Cross team has been providing logistics for the distribution of non-food items needed by people who have taken refuge in local schools and Buddhist temples. Immediately after the disaster, people needed water containers, family hygiene kits and cooking supplies. Gradually, as people can use them, items such as tents, blankets for use as sleeping mats, and bed sheets have been added to the distributions, which have reached more than 4,500 families. Our employee contribution of $17,000, matched by United Water, totaled approximately $34,000 for the people affected by the natural disaster. That' outstanding, and it will go a long way to providtng necessary items for victims of this tragedy. CEO Tony Harding presented Vernon Reed, CEO of the Bergen-Hudson Chapter of the American Red Cross, with a check for our contribution on January 25. In addition, we learned that Suez will match our total contribution of $34,000 with a donation to ; , Foundation Suez Disaster Relief Fund. Your donation is \ just one way ; you can ; help, ! however. Volunteers who have technical and rebuilding skills are needed to assist in the reconstruction effort that will certainly take place over the next few years. If you are interested in volunteering, please contact the communications department for more information. Vernon Reed, American Red Cross, accepts our donation from Tony Harding. Sb~r United Water 1('e. Raising the Water level It is, in its own right, quite an impressive showing when you think about. Introduced in the fourth quarter this year, our Water for People fund drive netted about $9,300 for the organization. And more than 20 percent was raised by the good folks at United Water Arkansas! Major Kudos to people of Pine Bluff! CEO Tony Harding also committed an additional corporate donation of $10,000 to help Water for People assist communities around the world benefit from clean drinking water and new and improved treatment plants that are often taken for granted in our country. You will hear more about Water for People in future publications. Welcome Back, Susan! There s a song by George Thoroughgood and the Delaware Destroyers entitled" One Bourbon, One Scotch, One Beer," that describes the kind of day it was for Susan Skomorucha on her December 28th return to United Water Delaware. Waiting to greet her were about 2 500 customers that woke up that morning and found that they had much lower than normal water pressure. It didn t take her long to find out about a 16-inch water main break that occurred during the night. She quickly found out that customers would not have had any water at all if it wasn t for the quick actions taken by employees who responded during the frigid early morning hours. The 16-inch water main broke during the night and the emergency response procedure was implemented. Calls went out at 2 a.m. and employees reported to the main break, while others went to the office, issued press releases, answered customer calls and coordinated work with outside vendors. An interconnection with Artesian Water Company was turned on to provide service to customers in the River Road system. Work went on throughout the day and by 6 p.m. the repairs were made and service restored. Kudos to the Delaware team for focusing on customers' needs and for making Susan Skomorucha s first day as general manager a whole lot easier. It's High Tide in Delaware On January 19, the Delaware River Basin Commission approved United Water Delaware proposed revised operating plan for the Tidal Capture Structure, which is an inflatable dam. When it is inflated at peak high tide, it essentially extends the period of high tide allowing the company to pump the supply into the Stanton Water Treatment Plant. Once the dam is deflated, it again allows the stream to flow naturally. The Commission approval is significant because the revised plan im proves operating conditions during droughts as well as low stream flows. The plan is the culmination of work that has been in progress for two years. Plant operations and customers will . benefit greatly from this change. The new procedure also positively impacts our water supply deficit as calculated by the State of Delaware s Water Supply Coordinating Council and the Water Supply Self Sufficiency Act, which became law in July 2003. Tidal Capture Structure, Del~ware s inflatable dam Sharing The Knowledge Time and knowledge are two great gifts and United Water Milwaukee s IT staff generously shares both. Larry Patterson, Karen Livingston, Darin Heiman and Gary Schuyler recently donated several weekends to help the Prairie Hill Elementary School upgrade its Information System. The school purchased the necessary equipment and software and the IT staff volunteered to assist with installation. The team also actively participates in the Adopt-School program and Career Day at the high school. SbifJ~r UnitedWater Now They are Certified! Several of United Water s executive assistants in Harrington Park, NJ, recently earned the Certified Professional Secretary rating from the International. Association of Administrative Professionals. They were required to satisfy education and experience requirements and pass a comprehensive three-part exam that addressed office systems and technology, office administration and office management. Lisa Carlino-Boyd, Sherry Corvino, Mary DeLuise Donna Koeniges, Christine Mednick, Nancy Richman, Elaine O'Brien and Joan Patzer are now preparing to take the Certified Administrative Professional exam in May. Reaching Out in Our Backyard United Water employees were helping others from coast to coast during the holidays. Customers in communities from chilly New Jersey to sunny California were the beneficiaries of our employees generosity. In New Jersey, the team collected 38 gifts for the Bergen County Foster Parents Association and obtained all of the gifts requested by the "Adopt A Family." Winter days are little warmer for the needy because employees also collected 87 coats for the New Jersey Cares Coat Drive. In addition, employees donated 42 bears for the North Jersey Media Group Bear Hug for the Holidays." Special thanks to the following volunteers who helped "tag" more than 000 bears (in two days) for distribution to surrounding hospitals: Lisa Asala, Karen A yon, Kim Azzolino, Lisa Carlino-Boyd, Charlene Cassarello, Chris Fennell, Illinca Ford, Genine Jackson, Kabrina Jackson, Colleen O'Malley, Simone Reeves and AnnmarieR u ti gli ani. On November 22, the Idaho Food Bank's refrigerated truck drove up to our loading dock in Boise to pick up 45 frozen turkeys weighing in at 756 pounds. This is the second year that United Water Idaho participated in the "Take Your Turkey To Work" food drive. The turkeys were distributed to area families, shelters, rescue missions and outlets that help the needy and homeless. In December, generous UWID employees delivered some Christmas magic and cheer to two adopted families. Their combined cash and gift contributions nearly topped $1,000. Our employees in Banning, CA, enjoyed the holiday season with outdoor lights and a Christmas tree. The staff also hung stockings with care at the city wastewater treatment plant. The real reason for the season came into focus when the project employees vol un teered to help a community family by su pporting the Banning Chamber of Commerce Adopt A Family Program." A I selected family reaped the benefits of United Water s generosity with a dinner on December 25 along with two very 'pecial gifts. The family s youngest, a train loving httle boy, was granted his wish for a remote controlled train while his older sister entered the world of music when she received her own new saxophone. Our community minded employees; Stephen Anderson, Lorenzo Amis, John Holub, David Lanhardt and Ronnie Lomeli also added clothing, children s gifts and personal items to keep the family warm during the winter. Our teaIT expressed their gratitude to the Banning Chamber of Commerce and especially Debbie Franklin for enabling them to be an active community member during this very special time. Banning, CA employees celebrated the holidays with a giving spirit Sb,ng Star United Water There s Safety in Numbers Workplace safety continues to be an important priority for United Water. The chart below shows the trend for time lost due to accidents. The year end total for 2004 was 4.23 accidents, well below our year end goal of 5. Congratulations to all! Accidents Resulting in Lost Time ... ffi - - ~ ~ - ~ - ~ - /lnnu.1 Yo., EndA..'q. T...I If you have questions on safety related issues, contact the following members of United Water ssafety team: Stacey Christian, John Ekman, Judy Grzegorski, Mike Luker, Hector Martinez, Mitch Mosier, John O'Mana, Scott Para, Dave Roncari and Alex Williams. Suez Increases Dividend On January 19, the Suez Board of Directors conducted a detailed review of the Group s activities, profitability and growth prospects in the context of its strategy based on the simultaneous and sustainable development of its two business sectors: environment and energy. The board announced that the action plan, implemented two years ago, had met or exceeded its objectives. They also proposed a dividend increase of nearly 13% relative to 2003 that it intends to sustain over the medium term, consistent with net income evolution and offering competitive investor return. The board also approved the launch of a new Optimax plan for 2005 and 2006. A press release with more details on the board meeting is available for review on Quench. United Water Joins R+i Alliance United Water is member of the newly formed R Alliance, a Suez Environnement entity focused on research and innovation. Lyonnaise des Eaux in France and Northumbrian Water in the United Kingdom are also members. Other companies may be asked to join the alliance in the future. The R +i Alliance will select, fund and coordinate common research, development and innovation projects of Suez Environnement's main subsidiaries and associated companies in the water business. Tony Harding, United Water s CEO, is chairman of the R + i Board of Directors. Alan Thompson, senior vice president for technical services, and Mike Link, senior technical director for the non- regulated segment, will represent United Water on the steering committee. An announcement with more details on R + i is available for review on Quench. Sble~r United Water 1t. Customers - Employees - Efficiency February 28, 2005 Safety in Numbers United Water Direction for the Medium Term defines the need to create a genuine health and safety culture. Tracking performance is one way to improve workplace safety. The chart below shows the number of accidents resulting in lost time. The goal is to reduce these accidents by increasing awareness of safe work practices. In the year ahead United Water's ... safety training program will focus on employee safety training needs, OSHA regulatory training requirements and our 2004 recordable, frequency and severity rate issues. More information is available by following the technical services link on Quench. Winners co 2004 Jon Feb Mo, Ap, Moy Jun Jul Aug Sop Ocl NoY V..,.To-;) I Annuo' DOlo Forty seven United Water Ayo,ogo facilities completed 2004 with no lost time accidents. This excellent performance proves that diligence and attention to details really make a difference in creating a safe work environment. John Ekman, director of health and safety noted, "these outstanding, results show that teamwork enables us to make progressive changes and have a positive impact on the overall safety of our workforce. As we continue to drive safety throughout the organization and empower our local safety committees, we will further improve our safety record. I'm confident that at the end of 2005 we will add to the list of sites with no lost time accidents." For a complete list of winners, please view the announcement posted on the home page of Quench. Boise to the Rescue United Water Idaho recently demonstrated their commitment to excellence when an adjacent water system was contaminated with trichloroethylene (TCE),a substance used for degreasing. Test results for Terra Grande Water, which served about 117 residential customers, showed TCE at 10 to 19 times the maximum contaminant level (MCL). On January 21, the Idaho Department of Environmental Quality (DEQ) required public notifica tion urging customers not to drink or cook with the water. .... 2005 Safety Goal is Less than 4 ... What distinguished United Water Idaho during this crisis was not only their willingness to assist their neighbors, but the speed with which they solved a dangerous problem. Within a week after the DEQ approached United Water, the company built a new interconnection consisting of 140 feet of four-inch pipe, a three-inch meter in a concrete meter vault followed by a double check valve backflow protection device in another vault. Most importantly, the 117 families quickly had a new and reliable supply of clean, safe drinking water. During that same week, Greg Wyatt, general manager, attended a Public Utility Commission hearing granting United Water the right to serve the subdivision as an individual customer under UnitedWater 1(' .. our standard tariff. In addition, DEQ agreed to pay for all construction costs, except the meter, under their EP A Emergency Fund. This program targets funding solutions to water quality or pollution issues when systems such as Terra Grande have no means of making the needed investments. DEQ was extremely grateful and said that they have never seen such responsiveness and cooperation from a utility. (DNR) state permits. In addition, both wastewater treatment plants qualify for the 2004 Association of Municipal Sewerage Agencies Gold Award. Congratulations to the Milwaukee team for providing excellent customer service and for protecting Wisconsin s natural resources. Freeport: Past, Present And Future The City of Freeport, IL, celebrated its 150th birthday on February 14 and the United Water team helped pay tribute to the community's history. One of the highlights of the day included the unveiling of the "Lost Freeport" photo collection. The exhibit was created from recently discovered glass photographic negatives that date back to 1914. United Water also displayed some real treasures from the city' past They included wooden water pipes first used in the city during the late 1800s. "We had a whole display of artifacts from the Freeport water system dating back to the late 1800s," said Alice Ohrtmann, project manager. "We also had new pipes on hand so people were able to see how the system developed over the years. It was great to help the residents look back on the city's heritage. For United Water, it's even more of a privilege to be part of Freeport'future. For The Record United Water Milwaukee employees continued their excellent performance record in 2004. During the past two years, United Water provided the Milwaukee Metropolitan Sewerage District (MMSD) with the best water quality effluent ever achieved during the past 27 years. As a result, Milwaukee Performance 2004the project will receive a Biological Oxygen Demand er ormance Incen ve Contract bonus of $100,000 from the Limit client Under the contract with MMSD, United Water can receive bonuses based on two water quality parameters or penalties based on three water quality parameters. The company has never received a penalty and has earned several bonuses based on excellent performance. Total Solids Suspended Contract limit State Limit Fecal Coliform The charts show how United Water Milwaukee actual performance in 2004 400 was far superior to both MMSD contract standards and the Wisconsin Department of Natural Resources Number/100 ml Actual log Star United Water 1(.