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ConneCtionsSPRING 2009A QuArterly MAgAzine for the eMployees of CArpenter teChnology

OUR FUtUReQuality Department Focuses on the Customer New Demand Planning System UnveiledChange Comes to Carpenter TechnologyMentors Help with Talent Search

IN thIS ISSue

InvestIng In

7spring 20096 Carpenter ConneCtions

Company Update

Tim Armstrong hurries down the spiral staircase joining the two floors of the glass-enclosed, book-filled materials library, which serves as the information hub for Carpenter Technology’s Research and Development Center in Reading.

“Mindy, can you please get me everything you can find on slag-refractory interactions?” asks Armstrong, R&D Vice President, as he whirs past the desk of Librarian Mindy Peters.

Armstrong doesn’t just mean the information Carpenter Technology has developed itself during its more than 100 years of producing the world’s finest specialty steels and alloys. He literally means “everything”—no matter where the information was generated. In reaching out into that vast pool of world knowledge, Armstrong and Carpenter Technology are setting off on a new path that the Company believes will yield its next great products and innovation and ultimately secure the Company’s future.

“Our world doesn’t end on Union Street anymore,” says Manager – Innovation Technology Joe Lehman, referring not only to the street in Reading, where Building 68, Carpenter Technology’s R&D center, is located, but to the Company’s past preference to rely solely on the development of its own ideas and technology.

“We have wonderfully talented and innovative staff, but we have limited resources and manpower, and we have to use them wisely when choosing new products to develop,” explains Armstrong. “One path to success is stay aware of developments outside Carpenter and identify the best ideas that R&D can develop or expand upon.”

InVESTInG In THE FUTURE

Key to the effort is the continued investment that Carpenter Technology is making in its Research and Development area. Chairman, President and CEO Anne Stevens says that despite the challenging economy, funding research initiatives is a necessity for the Company if it is to control its destiny and ensure its future. “We must make the necessary investments that will enable us to meet the increasingly demanding requirements of our customers,” she notes.

In FY2008, Carpenter Technology increased its capital spending for research efforts over the previous year and in FY2009, the Company

Company Update

Carpenter technology Is searching Worldwide for the talent and Ideas that Will Yield the Company’s next great Products

InvestIng In Ideas

“In five years, we want to be known as the partner of choice in our field. We want our

customers to come to us and say, ‘We have a problem. You are the best. Please solve it.’”

—tim Armstrong, vice President

Research and Development

technician iii Mike natale prepares to test a solar Manufacturing vacuum heat treating furnace to ensure that it meets operational specifications.

Continued on page 8.

these gauges are part of the closed-loop water system that cools the solar furnace.

Employee Communications

Make a Difference! Join Our Volunteer Team.

Get Involved. Volunteer Today.

See the Carpenter Intranet or your manager for more information!

CARPENTERTECHNOLOGY CARES

To enroll or find out more

about how you can become

a part of Carpenter CARES,

please contact or visit:

Carpenter Technology Employee Relations (137) P.O. Box 14662 Reading, PA 19612-4662

Greg DeLapp Employee Relations and Employee Assistance 610-208-2325

Sharon Rytel Employee Relations Administrative Assistant 610-208-3311 Fax: 610-208-3860

Making a Difference in Our Communities

Participating employees have the chance to be rewarded according to the following:

Quarterly Rewards—Two randomly selected volunteers will each be able to direct a $100 Carpenter donation to the non-profit organization of their choosing.

Annual Rewards—Volunteer 75 or more hours during a fiscal year and earn a $100 donation to the non-profit organization of your choice; for 150 hours or more, earn a $200 donation.

Annual Recognition & Volunteer of the Year

Participating employees also have a chance to be honored at Carpenter’s annual recognition event or as Volunteer of the Year.

To be eligible for the annual award, candidates must complete at least 150 hours of volunteer service in the previous fiscal year.

From the eligible candidates, five finalists will be chosen by the Volunteer Advisory Committee, based on the number of hours volunteered and the diversity of their volunteer work.

The top candidate will be named Volunteer of the Year and will receive:

n A gift and plaque

n $1,000 donation to a non-profit agency of their choice

The remaining four nominees will also receive awards and prizes:

n A gift

n $500 donation to a non-profit agency or organization of their choice

Earn Rewards for Your Favorite Non-profit Organizations Enroll Today!

Employee Communications

Welcome

Contact Us:

To find out more about Conectiv Energy,

including what we do in the community

and for the environment, please visit us

on the Web at www.conectiv.com.

Conectiv Energy

Corporate Offices

P.O. Box 6066

Newark, DE 19714-6066

to Conectiv Energy

“Working at Conectiv Energy

has been a great learning

experience for me. Everyone

has a positive outlook and the

people are the best.”

—Senior Risk Analyst

“At Conectiv Energy, you

get the family atmosphere

of a small company with the

benefits of working at a large

company.”

—Environmental Consultant IV

“My experience working at

Conectiv Energy has been one

of growth and knowledge. It

has been challenging, yet very

rewarding. The best part is

the many different people and

personalities I get to work with

every day.”

—Storekeeper

Printed on recycled paper.

Our Vision To competitively grow the value of our power generation and related assets

Our Mission We have set our course for the future. The mission of Conectiv Energy summarizes our company’s goals, strategies and values that focus on innovation and growth in the areas of energy and fuel:

n To focus on employee safety, environmental protection and our community responsibilities

n To empower a culture committed to ethical behavior in highly skilled, motivated and diverse teams

n To outperform the competition by optimizing operations, maintenance and marketing

Our ValuesConectiv Energy has a strong values-based culture, and our company is driven by those values. We communicate clear objectives and expectations and foster an environment where individuals and teams can work, learn, develop and contribute knowing their values and behaviors are aligned with the business.

Conectiv Energy’s core values are:

Safety – We make safety the most important part of everything we do.

Accountability – We accept responsibility for our actions and behaviors.

Integrity – We intentionally do the right thing.

Diversity – We treat everyone with dignity and respect.

Excellence – We strive to be the best.

[NOTE: Picture – Possibly graphic from website of trading board][NOTE: Flap with Business Card Slot: Sample]

We are proud to be Conectiv Energy.

Conectiv Energy is a competitive wholesale energy trading and generation company operating in the PJM, New York and New England power pools. We manage power plants in the Mid-Atlantic states and buy and sell fuel and energy in the wholesale marketplace. Conectiv Energy is an asset-backed merchant energy business that uses risk management tools, regional expertise and intellectual capital to optimize the value of our assets. Our success is made possible by the people of our company.

Headquartered in Newark, Delaware, we are a wholly owned subsidiary of Pepco Holdings, Inc. (PHI). We enjoy the benefits of being part of a larger organization, while being able to focus on the people and ideas that make us strive to be the best.

About Our Business

Employee Communications

Employee Communications

peopleJune 2008

CMPT

In This Issue4. CMPtvIsOntheAir4. ‘ThumbsUp’forPoroSafetyCouncil4. CMPTIsSSMCBestSupplier5. JohnRobertsRetires5. EMShow‘GoesontheRoad’5. MeetBrendaSoto6-7. IntelAwardCelebration8. GreenTeamSalutesEarthDay8. ‘ThinkBeforeYourNextMove’

8. NOBCChEHailsROHSupport9. PeopleSpotlight:AngusRepper9. CMPTEngineerWinsROHAward

10. ‘Positive’ExperienceatBoysandGirlsClub10. CMPTRollsforJA11. ArizonaVolunteerTeachesHow‘AmericaWorks’11. ARiverRunsCleaner

21 C at Midyear: A Roundup of MDWT ‘Wins’

The21stCenturyManufacturingprogram,knownas“21C,”startedtheyearwithgreatexpecta-

tions,andsofar,theprogramhasstimulatedourMini-Businessestorackupquiteafewwins.

ManyoftheMission-DirectedWorkTeams’(MDWTs’)earlygainshavecomeintheformof“Quick

Wins”andthroughtheuseof“InnovationBlitzes.”Seepage3foralookattheprogressmadeby

someoftheteams.

Whencomputercustomersseethefamiliar“IntelInside”logo,theyknowtheyaregetting

anearlyflawlessproduct.AccordingtoIntelofficials,onereasonforthestellarreputationof

thecompany’smicrochipsisthequalityofwork

performedbyCMPT.TorecognizeCMPTeffortsinembracingIntel’s

QualityOperatingSystemPlus(QOS+)beliefsandforcontinuedQualityIncidentFree(QIF)performance,IntelrecentlyselectedCMPTout

ofnearly120supplierstoreceiveoneoffourtop

supplierawards,theGlobalFabMaterials(GFM)

SupplierQOS+Award.KimGupta,GFMChemi-

cals&GasesOperationsManager,andKathyBeck,GFMTechnicalSupplierOwner,fromthechipmanufacturertraveledtoNewarktopersonallypresenttheawardandthanktheemployeesofCMPTataneventheldonMay6.

KimaddressedseveralhundredCMPTemployees

whoweretreatedtoabarbecuelunchfollowed

bycakeandicecreaminrecognitionoftheIntel

award.Hesaid,“Qualitythatwasacceptablefiveorsixyearsagoisn’tacceptabletoday!Your

productsmakeitpossibleforInteltomakeadif-

ferenceinthecomputingworld.”

Intel Awards CMPT Top Honor for Quality

Vol.1,No.3

continued on page 2Peter Freeman, Director of Manufacturing, accepts the GFM Supplier QOS+ Award from Intel’s Kim Gupta, far right. Accepting the award with Peter are, from left, Jennifer O’Sullivan, Global Technical Services; Donna Northrup, Order Fulfillment; Brian McDavitt, U.S. Sales; and Mark Gazze, Director of Quality & Operations Engineering.

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Corporate Communications

664 Churchmans Road

Newark, DE 19702

302-453-6900

800-332-5114

www.artesianwater.com

Financial ResultsOver the last five years, we have increased our dividend at a 5.9% average annualized rate. In 2008, we increased our annual common stock dividend by $0.0256, or 3.7%, which brought the annual dividend to $0.7136 per share. Our revenues grew to a company record of $56.2 million in 2008, a 7% gain from 2007 revenues of $52.5 million. Driven by the gain in revenues, we increased net income by $155,000 to $6.4 million in 2008, an increase of 2.5% from $6.3 million in 2007.

Strengthsn 104-year record of exemplary operational and

financial performance

n Service area is located in two of the fastest growing areas of the United States.

n Infrastructure investments have already been made to support continued growth.

n Non-utility business is expanding rapidly. (Non-utility revenue increased $1.7 million in 2008, a 72% gain from 2007.)

n We have a talented, experienced and dedicated management and professional team.

Sustainable Growth We are expanding our business in Cecil County, Maryland, and southern Delaware and transforming from primarily a water services provider to a total water resource management company. Some expected growth will undoubtedly occur more slowly than previously projected because of turmoil in the housing and credit markets. But one area that should grow quickly is Cecil County, Maryland, where we have secured significant water and wastewater franchises in the county’s growth corridor. Cecil County is expected to add thousands of high-paying jobs in the next few years because of U.S. Army-mandated expansion at the nearby Aberdeen Proving Grounds.

Laura Slayman, Investor Relations/Strategic Planning Assistant (800) 332-5114 [email protected]

Artesian Resources Corporation | P.O. Box 15004 | Wilmington, Delaware 19850

About Artesian ResourcesArtesian Resources Corporation

operates as the holding company

of eight wholly-owned subsidiaries.

Artesian Water Company, the

principal subsidiary, is the oldest

and largest investor-owned public

water utility on the Delmarva

Peninsula, and has been providing

water service in the state of

Delaware since 1905. Although

our Delaware water business

remains our largest business

line, accounting for 90% of our

revenues, we have expanded our

capabilities and our service area.

We now provide wastewater

service in Delaware and provide

water and wastewater service

in Cecil County, Maryland, and

Pennsylvania.

The Company is listed on NASDAQ

Global Market and trades under the

symbol ARTNA.

Nicholle R. Taylor, Vice President (800) 332-5114 [email protected]

For the year ended December 31,

In millions except per share amounts 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

Operating Revenues $56.19 $52.52 $48.59 $45.29 $39.58 $36.30 $34.60 $31.99 $27.55 $26.78

Operating Expenses 44.28 40.76 36.79 34.64 29.71 27.77 26.42 24.59 21.34 20.69

Operating Income 11.91 11.77 11.80 10.64 9.87 8.53 8.18 7.40 6.21 6.09

Net Income 6.42 6.26 6.07 5.04 4.40 3.92 4.17 3.32 2.45 2.98

Net Income Per Common Share

Diluted .86 .90 .97 .81* .72* .64* .76* .70* .52* .65*

Cash Dividend Per Common Share .71 .66 .61 .58* .55* .53* .51* .49* .49* .47*

Rate Base $189.03 $174.83 $167.76 $160.04 $152.21 $131.56 $115.18 $98.68 $88.48 $77.48

* Restated for the stock split effective May 30, 2006

F I N A N C I A L H I G H L I G H T S

1999

2000

2001

2002

2003

2004

2005

2006

$.48

*

$.49

*

$.50

* $.52

* $.54

*

$.57

*

$.60

$.64

2007

2008

$.69

$.71

Annualized Dividend*Restated for the stock split effective May 30, 2006

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ctiv

.com

conectiv.com

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.com

conectiv.com

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