Exhibits 1a through 1e Average ROE for UI Distribution of 9.34% for the twelve months ended December 31, 2017.

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1 March 27, 2018 Mr. Jeffrey R. Gaudiosi, Esq. Executive Secretary Public Utilities Regulatory Authority 10 Franklin Square New Britain, CT Re: Docket No Investigation to Consider Rate Adjustment Procedures and Mechanisms Appropriate to Charge or Reimburse the Consumer for Changes in the Cost of Fossil Fuel and/or Purchased Gas for Electric and Gas Public Service Companies Compliance Order No. 1 Dear Mr. Gaudiosi: The United Illuminating Company ( UI or Company ) submits the calculation of rate of return on common stock equity (ROE) on a Distribution-only basis (i.e., total Company excluding Transmission) in compliance with the above-referenced proceeding and in response to the Authority s letter request dated March 27, Exhibits 1a through 1e Average ROE for UI Distribution of 9.34% for the twelve months ended December 31, Exhibit 2a through 2e Average ROE for UI Distribution of 1.35% for the three months ended December 31, I hereby certify service of this filing upon all parties and interveners of record in this proceeding. If the Authority or the Staff has any questions regarding this filing, please call me at Very truly yours, Steven P. Favuzza Vice President, Controller & Treasurer of UIL Holdings Corporation on behalf of The United Illuminating Company Attachments 180 Marsh Hill Road, Orange, CT An equal opportunity employer

2 The United Illuminating Company Schedule of Allocation of 2017 Earnings Sharing Exhibit A Amount of Operating Income used to calculate Common Equity Return - Prior to Sharing ( Only) $77,424,280 Amount of Operating Income required to calculate Common Equity Return of 9.10% ( Only) $74,872,546 Amount of Earnings Shared $ 2,551,734 Allocation of After-Tax reduction in Operating Income: Rate Plan Earnings Sharing: One-half for future surcredit to customers 1,275,867 One-half retained as earnings 1,275,867

3 The United Illuminating Company Exhibit B Rate of Return on Rate Base Common Stock Equity For Twelve Months Ended December 31, 2017 Average - Before Earnings Sharing Average - After Earnings Sharing Capitalization Average Embedded Capitalization Average Embedded Ratio Rate Base Cost Return Ratio Rate Base Cost Return Total $ 999,744,092 $ 77,424,280 $ 999,744,092 $76,148,413 Less Long-term Debt 45.56% 455,483, % 25,344, % 455,583, % 25,350,387 Preferred Stock and Preferred Securities 0.00% % % % 0 Applicable to Common Stock 54.44% $ 544,260,684 $ 52,079, % $ 544,160,709 $50,798,027 Rate of Return on Rate Base Common Stock Equity 9.57% 9.34% Reconciliation: Total Utility Operating Income - Before Earnings Sharing $ 77,424,280 Rate Plan Earnings Sharing Surcredit portion - after tax (1,275,867) Total Utility Operating Income - After Earnings Sharing $ 76,148,413

4 The United Illuminating Company Calculation of Revenue Requirement Associated with Surcredit portion of 2017 Earnings Sharing Exhibit C One Half of Operating Income to be shared $ 1,275,867 Gross Revenue Conversion Factor Revenue Requirement Customer Surcredit $ 2,320,447 Reconciliation of Revenue Requirement Calculation: Revenue Requirement $ 2,320,447 Gross earnings tax (7.04%) $ 163,444 $ 2,157,003 State income tax (9.00%) $ 194,130 Available for federal income tax $ 1,962,873 Federal income taxes (35%) $ 687,005 Operating Income to be refunded as Customer surcredit $ 1,275,867

5 The United Illuminating Company Calculation of Gross Revenue Conversion Factor Used for 2017 Surcredit Calculation Exhibit D Tax Rate Amount Revenue Weighted Average Gross Earnings Tax Rate % State Tax Rate 9.00% Available for FIT Federal Income Tax 35.00% After-Tax Factor Effective Tax Rate Gross Revenue Conversion Factor

6 The United Illuminating Company 2017 Journal Entries for Earnings Sharing Exhibit E Journal Entries to record Customer portion of Earnings Sharing: Account 400: Operating Revenues $ 2,320,447 Account 254: Regulatory Liability $ 2,320,447 To record a regulatory liability reflecting the amount to be refunded to customers. Account 236: Taxes Accrued $ 163,444 Account 408.1: Taxes Other Than Income Taxes, Utility Operating Income $ 163,444 To record the gross earnings tax effect of reducing Operating Revenues for Account 236: Taxes Accrued $ 881,136 Account 409.1: Income Taxes, Utility Operating Income $ 881,136 To record the state and federal income tax effect of reducing Operating Revenues for 2017.

7 Exhibit 1a THE UNITED ILLUMINATING COMPANY STATEMENT OF INCOME TWELVE MONTHS ENDED December 31, 2017 SALES OF ELECTRICITY Residential Service $ 239,745,400 Commercial Service 139,263,807 Industrial Service 20,808,686 Other Sales to Ultimate Consumers 8,901,509 Total Sales of Electricity 408,719,402 OTHER ELECTRIC REVENUES 6,836,443 TOTAL ELECTRIC OPERATING REVENUES 415,555,845 ELECTRIC OPERATING EXPENSES: Operation & Maintenance Expenses 190,763,444 Depreciation and Amortization 56,665,800 Total Taxes 91,978,189 Total Electric Operating Expenses 339,407,432 TOTAL UTILITY OPERATING INCOME 76,148,413 OTHER INCOME AND DEDUCTIONS - NET 7,730,327 ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION 874,500 TOTAL INCOME 84,753,240 INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES Interest on Long-Term Debt 26,385,237 Amort. Debt Disc., Prem. & Expense 1,228,128 Other Interest Charges 1,117,059 Allowance for Borrowed Funds Used During Construction - Credit (885,989) Net Interest Charges 27,844,436 NET INCOME $ 56,908,804

8 THE UNITED ILLUMINATING COMPANY STATEMENT OF INCOME (RATEMAKING) TWELVE MONTHS ENDED December 31, 2017 Exhibit 1b OPERATING REVENUES Residential Service $ 239,745,400 Commercial Service 139,263,807 Industrial Service 20,808,686 Other Sales to Ultimate Consumers 8,901,509 Total Sales of Electricity 408,719,402 OTHER ELECTRIC REVENUES 6,836,443 TOTAL ELECTRIC OPERATING REVENUES 415,555,845 ELECTRIC OPERATING EXPENSES: Operation & Maintenance Expenses 190,763,444 Depreciation and Amortization 56,665,800 Total Taxes 91,978,189 Total Electric Operating Expenses 339,407,432 ELECTRIC UTILITY OPERATING INCOME $ 76,148,413

9 Exhibit 1c THE UNITED ILLUMINATING COMPANY RATE BASE AT December 31, 2017 AND RATE OF RETURN ON RATE BASE FOR THE TWELVE MONTHS ENDED December 31, 2017 REFLECTING THE DECISION TO DOCKET NOS , , , , , AND End of Period December Average 2017 Rate Base: Utility Plant in Service $ 1,689,598,005 $ 1,705,931,677 Less: Accum. Prov. For Depr. & Amort. & Cost of Removal 437,129, ,028,929 Net Utility Plant in Service 1,252,468,239 1,256,902,748 Add: Working Capital 27,303,847 28,141,330 Prepaid Expenses 1,992,217 2,121,973 Regulatory Asset - SFAS ,062, ,559,612 Regulatory Asset - UPZ 19,066,255 15,350,770 Deferred Taxes: Pension Costs (19,694,731) (19,678,561) 2013 Rate Case Storm Reserve 2,890,385 2,685,230 Pension Liability (taxes on SFAS 158) 83,090,644 73,488,415 Injuries and Damages 1,788,025 1,227,280 Vacation Accrual 1,026,050 1,026,050 Allowance for Bad Debt 1,044, ,199 Regulatory Liability - UPZ Amortization 1,110,752 - Deduct: Customer Advances for Construction 2,838,939 2,398,974 Allowance for Bad Debt 2,630,769 2,400,000 Pension Liabilities 226,380, ,253, Rate Case Storm Reserve 6,848,185 6,571,101 Reserve for Injuries and Damages 4,275,894 2,900,432 Accrued Vacation 2,568,947 2,568,947 Regulatory Liability - UPZ Amortization 2,719,100 - Deferred Taxes: Accelerated Tax Depreciation 155,603, ,339,849 Regulatory Asset - SFAS ,090,644 73,488,415 Pensions (account 282) (16,026,107) (18,461,209) Regulatory Asset - UPZ 7,888,430 6,363,239 Repairs and maintenance deduction 128,585, ,681,369 Rate Base $ 999,744,092 $ 1,000,270,270 Returns on Ratebase: Operating Income $ 76,148,413 $ 76,148,413 Rate of Return on Rate Base 7.62% 7.61%

10 The United Illuminating Company Exhibit 1d Rate of Return on Rate Base Common Stock Equity For Twelve Months Ended December 31, 2017 Average End of Period Capitalization Average Embedded Capitalization Rate Embedded Ratio Rate Base Cost Return Ratio Base Cost Return Total $ 999,744,092 $ 76,148,413 $ 1,000,270,270 $ 76,148,413 Less Long-term Debt 45.57% 455,583, % 25,350, % 437,018, % 24,134,852 Applicable to Common Stock 54.43% $ 544,160,709 $ 50,798, % $ 563,252,189 $ 52,013,561 Rate of Return on Rate Base Common Stock Equity 9.34% 9.23%

11 The United Illuminating Company Exhibit 1e Rate of Return on Common Stock Equity For the Twelve Months Ended December 31, 2017 End of Period: Income for Common Stock $ 56,908,804 Common Stock Equity $ 933,482,778 = 6.10% Average: Income for Common Stock $ 56,908,804 Common Stock Equity $ 929,656,865 = 6.12%

12 Exhibit 2a THE UNITED ILLUMINATING COMPANY STATEMENT OF INCOME THREE MONTHS ENDED December 31, 2017 SALES OF ELECTRICITY Residential Service $ 56,854,178 Commercial Service 32,845,766 Industrial Service 4,817,462 Other Sales to Ultimate Consumers 2,169,915 Total Sales of Electricity 96,687,320 OTHER ELECTRIC REVENUES 3,825,123 TOTAL ELECTRIC OPERATING REVENUES 100,512,444 ELECTRIC OPERATING EXPENSES: Operation & Maintenance Expenses 50,074,183 Depreciation and Amortization 13,690,715 Total Taxes 23,146,420 Total Electric Operating Expenses 86,911,317 TOTAL UTILITY OPERATING INCOME 13,601,127 OTHER INCOME AND DEDUCTIONS - NET (1,097,795) ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION 334,065 TOTAL INCOME 12,837,397 INTEREST CHARGES AND DIVIDENDS ON PREFERRED SECURITIES Interest on Long-Term Debt 5,962,221 Amort. Debt Disc., Prem. & Expense 302,675 Other Interest Charges 669,932 Allowance for Borrowed Funds Used During Construction - Credit (267,659) Net Interest Charges 6,667,168 NET INCOME $ 6,170,229

13 THE UNITED ILLUMINATING COMPANY STATEMENT OF INCOME (RATEMAKING) THREE MONTHS ENDED December 31, 2017 Exhibit 2b OPERATING REVENUES Residential Service $ 56,854,178 Commercial Service 32,845,766 Industrial Service 4,817,462 Other Sales to Ultimate Consumers 2,169,915 Total Sales of Electricity 96,687,320 OTHER ELECTRIC REVENUES 3,825,123 TOTAL ELECTRIC OPERATING REVENUES 100,512,444 ELECTRIC OPERATING EXPENSES: Operation & Maintenance Expenses 50,074,183 Depreciation and Amortization 13,690,715 Total Taxes 23,146,420 Total Electric Operating Expenses 86,911,317 ELECTRIC UTILITY OPERATING INCOME $ 13,601,127

14 Exhibit 2c THE UNITED ILLUMINATING COMPANY RATE BASE AT December 31, 2017 AND RATE OF RETURN ON RATE BASE FOR THE THREE MONTHS ENDED December 31, 2017 REFLECTING THE DECISION TO DOCKET NOS , , , , , AND End of Period December Average 2017 Rate Base: Utility Plant in Service $ 1,699,865,767 $ 1,705,931,677 Less: Accum. Prov. For Depr. & Amort. & Cost of Removal 446,002, ,028,929 Net Utility Plant in Service 1,253,863,343 1,256,902,748 Add: Working Capital 27,087,402 28,141,330 Prepaid Expenses 2,312,025 2,121,973 Regulatory Asset - SFAS ,405, ,559,612 Regulatory Asset - UPZ 16,282,855 15,350,770 Deferred Taxes: Pension Costs (19,729,350) (19,678,561) 2013 Rate Case Storm Reserve 3,011,444 2,685,230 Pension Liability (taxes on SFAS 158) 81,290,226 73,488,415 Injuries and Damages 1,544,376 1,227,280 Vacation Accrual 1,026,050 1,026,050 Allowance for Bad Debt 1,011, ,199 Regulatory Liability - UPZ Amortization 277,688 - Deduct: Customer Advances for Construction 2,424,211 2,398,974 Allowance for Bad Debt 2,550,000 2,400,000 Pension Liabilities 230,451, ,253, Rate Case Storm Reserve 6,882,831 6,571,101 Reserve for Injuries and Damages 3,676,677 2,900,432 Accrued Vacation 2,568,947 2,568,947 Regulatory Liability - UPZ Amortization 679,775 - Deferred Taxes: Accelerated Tax Depreciation 157,851, ,339,849 Regulatory Asset - SFAS ,290,226 73,488,415 Pensions (account 282) (19,724,287) (18,461,209) Regulatory Asset - UPZ 6,744,138 6,363,239 Repairs and maintenance deduction 131,036, ,681,369 Rate Base $ 992,951,268 $ 1,000,270,270 Returns on Ratebase: Operating Income $ 13,601,127 $ 13,601,127 Rate of Return on Rate Base 1.37% 1.36%

15 The United Illuminating Company Exhibit 2d Rate of Return on Rate Base Common Stock Equity For Three Months Ended December 31, 2017 Average End of Period Capitalization Average Embedded Capitalization Rate Embedded Ratio Rate Base Cost Return Ratio Base Cost Return Total $ 992,951,268 $ 13,601,127 $ 1,000,270,270 $ 13,601,127 Less Long-term Debt 45.77% 454,473, % 6,322, % 437,018, % 6,033,713 Applicable to Common Stock 54.23% $ 538,477,472 $ 7,278, % $ 563,252,189 $ 7,567,414 Rate of Return on Rate Base Common Stock Equity 1.35% 1.34%

16 The United Illuminating Company Exhibit 2e Rate of Return on Common Stock Equity For the Three Months Ended December 31, 2017 End of Period: Income for Common Stock $ 6,170,229 Common Stock Equity $ 933,482,778 = 0.66% Average: Income for Common Stock $ 6,170,229 Common Stock Equity $ 922,014,799 = 0.67%