Common use of Regulation as a Utility Clause in Contracts

Regulation as a Utility. (a) The CTWS Subsidiaries set forth in Section 4.07(a) of the CTWS Disclosure Letter (the “Regulated CTWS Subsidiaries”) are regulated as “water company” and a “public service company” within Connecticut and a “water utility” and “public utility” in Maine. All assets included in the rate base calculations of the Regulated CTWS Subsidiaries (i) in Connecticut, are used and useful in providing service to customers of the Regulated CTWS Subsidiaries within Connecticut, and (ii) in Maine, are “used or required to be used in” the Regulated CTWS Subsidiary’s “service to the public within Maine,” within the meaning of Section 303 of the Maine Public Utility Law. No assets of CTWS or any of the Regulated CTWS Subsidiaries are currently disallowed in any ratemaking procedure before the PURA or the MPUC, as applicable. (b) Since January 1, 2015, CTWS and each CTWS Subsidiary has filed with the SEC or the appropriate state public utilities commission (including the PURA and the MPUC), as the case may be, all documents required to be filed by it under applicable state public utility Laws, except for filings the failure of which to make would not reasonably be expected to have, individually or in the aggregate, a CTWS Material Adverse Effect. All such documents complied, as of the date so filed, with all applicable requirements of the applicable statute and rules and regulations thereunder, except for any failures to comply that would not reasonably be expected to have, individually or in the aggregate, a CTWS Material Adverse Effect. (c) As of the date hereof, neither CTWS nor any Subsidiary or Affiliate of CTWS is subject to regulation as a public utility or public service company (or similar designation) by any state in the United States, other than Connecticut and Maine, or in any foreign country.

Regulation as a Utility. (a) The CTWS SJW Subsidiaries set forth in Section 4.07(a3.07(a) of the CTWS SJW Disclosure Letter (the “Regulated CTWS SJW Subsidiaries”) are regulated as a “water companycorporation” and a “public service companyutility” within Connecticut California and a “water and sewer utility” and “retail public utility” in MaineTexas. All assets included in the rate base calculations of the Regulated CTWS SJW Subsidiaries (i) in ConnecticutCalifornia, to the extent any portion of such facilities were eliminated from consideration within the meaning of Section 455.5 of the California Public Utilities Code, for rate setting purposes, have been “returned to useful service” and such facilities’ value and associated expenses are used and useful in providing service to customers currently considered for purposes of establishment of the Regulated CTWS Subsidiaries within Connecticut, SJW Subsidiary’s rates and (ii) in MaineTexas, are “used or required to be used in” the Regulated CTWS Subsidiary’s “service by and useful to the public within Maine,utility in providing service” within the meaning of Section 303 13.185 of the Maine Public Utility LawTexas Water Code. No assets of CTWS SJW or any of the Regulated CTWS SJW Subsidiaries are currently disallowed from recovery in rates based on its value and associated expenses in any ratemaking procedure before the PURA California Public Utilities Commission (the “CPUC”) or the MPUCPublic Utilities Commission of Texas (the “PUCT”), as applicable. (b) Since January 1, 2015, CTWS SJW and each CTWS SJW Subsidiary has filed with the SEC or the appropriate state public utilities commission (including the PURA CPUC and the MPUCPUCT), as the case may be, all documents required to be filed by it under applicable state public utility Laws, except for filings the failure of which to make would not reasonably be expected to have, individually or in the aggregate, a CTWS SJW Material Adverse Effect. All such documents complied, as of the date so filed, with all applicable requirements of the applicable statute and rules and regulations thereunder, except for any failures to comply that would not reasonably be expected to have, individually or in the aggregate, a CTWS SJW Material Adverse Effect. (c) As of the date hereof, neither CTWS SJW nor any Subsidiary or Affiliate of CTWS SJW is subject to regulation as a public utility or public service company (or similar designation) by any state in the United States, other than Connecticut California and MaineTexas, or in any foreign country.