THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Connecticut Water Service, Inc. (CTWS)

4/13/2006 Proxy Information

Mr. Engle, whose term as a director will end at the 2006 Annual Meeting, retired as President of Crystal Water Utilities Corporation/ The Crystal Water Company of Danielson on December 31, 1999, having served in that position since 1978. As part of the arrangements relating to the Company’s acquisition of Crystal Water Utilities Corporation/ The Crystal Water Company of Danielson on September 29, 1999, the Company entered into an employment/consulting agreement with Mr. Engle which covered his employment for the three-month period prior to his retirement and which provides that, beginning January 1, 2000, Mr. Engle will receive a $16,000 annual consulting fee from The Crystal Water Company of Danielson. This consulting agreement terminates on the earlier of December 31, 2009 or Mr. Engle’s death or resignation. Upon completion of the consulting agreement, Mr. Engle will receive a $16,000 annual supplemental retirement benefit until his death. In addition, Mr. Engle receives health insurance benefits of approximately $9,271 under an employment/consulting agreement which amount is paid by the Company.

CUNO, Inc., a filter manufacturer for which Mr. Kachur served as President and Chief Executive Officer in 2005, made payments of $275,340 to the Company during 2005 for water services provided to CUNO during the year. CUNO paid the Company’s prevailing rates for water services. In addition, during 2005 the Company paid $2,089,910 to Northeast Utilities, for which Ms. Thibdaue serves as a Vice President, for electric utility services. The Company paid Northeast Utilities prevailing rates for electric utility services. Northeast Utilities made payments of $6,529 to the Company during 2005 for water.

Mr. Chiaraluce is Chairman of Connecticut Water Service, Inc. and served as the President and Chief Executive Officer from 1992 until March 2006.