Page 1 of 2 The following message is presented to you by Dean Costas of The Plantations and Bob Steinback of Henlopen Landing:

TIDEWATER UTILITIES, INC FILED A 29% RATE INCREASE ON September 16, 2011 (pending PSC approval), and an interim rate increase of 10.89% which is effective immediately. In 2009, Tidewater filed for a 32.54% rate increase, but settled for 14.95%. Members of the Public Service Commission Staff recently stated that our opposition made a significant difference, that is: the calls, Letters to the Editor, E-mails, speaking at public hearings, testifying at the rate case, and meeting with State Legislators. We need to do it again, and I will share the schedule of hearings, and rate case dates when available. THE PRUDENCE STANDARD (HB 277) In a related area, the PSC Staff has tried unsuccessfully for several years to get legislation passed that advocates a change in the standard of review of utility expenditures to a Prudence Standard that would allow the PSC to take into account considerations other than the determinations of a given utility. Our State district Representative and Majority Leader, Pete Schwartzkopf, sponsored a bill, HB 228, on the last day of this years General Assembly. As I read it, it is not the Prudence Standard as the PSC had requested. Both of these can be found at: www.legis.delaware.gov. The PSC has been asked to compare and comment, which Ill share when available. ARTESIAN WATER CO, INC (the largest water company in Delaware). A spokesperson with the Governmental Affairs Division of Artesian Water Co. recently asked me if he could share the reason his company opposes the previously sponsored Prudence Standard (HB 277) with members of our community. Because this information could be important to overcoming Artesians objections, I have accepted this invitation on behalf of communities in our area. The Clubhouse located at the Dave Marshall Tennis and Fitness Center, 18464 Plantations Blvd., Lewes, DE. 19958 has been reserved for Tuesday, October 25th at 1 PM and at Artesians expense. All are welcome. Q & A will follow a 20-30 minute presentation. By the way, Tidewater is on record supporting the Prudence Standard. SOME REASONS TO OPPOSE THE RATE INCREASE AND ASK FOR LEGISLATIVE RELIEF 1. If the 32.54% had been approved, it would have been an increase of 143% in eight years 2000-2008. Now Tidewater is requesting 29% more. Too much too soon. 2. Please enact the Prudence Standard; otherwise, the PSC will not have the legal right to restrain double digit rate increases. 3. According to the PSC, the majority of jurisdictions in this country have adopted a Prudence Standard with respect to the allowance of public utility expenses for rate making purposes, either by Legislative Codification, Judicial Decision, or Regulatory Policy. This Amendment (The Prudence Standard) will bring Delaware in line with the majority jurisdictions. 4. In a letter the PSC Chair stated: The Business Judgment Rule, in our opinion, is meant for situations involving businesses that have competitive pressures, which in essence, would regulate the way they spend. However, in the context of a regulated utility, where customers are essentially held captive to their utility provider, we do not consider this (business) standard to be appropriate. 5. Many of us have not received a COLA for the last two years. Living on fixed incomes has become more challenging. Another rate increase is unacceptable at this time. Write Governor Jack Markell, Senator Gary Simpson, and House Majority Leader Peter Schwartzkopf to ask for legislation to be enacted to give rate payers permanent relief:

Page 2 of 2 1. To change the standard review of utility expenditures to a prudence standard and authorize the PSC to take into account considerations other than the determinations of a utility. 2. To deny tidewater the authority to charge existing subscribers for facilities planned and built for future subscribers. 3. Since Delaware Statute provides an Appeal Process for Tidewater, request legislation to add an Appeal process for subscribers. The Honorable Gov Jack A. Markell Tatnall Bldg. William Penn St. Dover 19901. Tel 302-744-4101 jack.markell@state.de.us The Honorable Peter Schwartzkopf, Majority Leader, House of Representatives PO Box 1401, Dover, De 19903 Tel 302-744-4351. peter.schwartzkopf@state.de.us The Honorable Senator Gary Simpson, Minority Leader, PO Box 140, Dover, De 19903 Tel 302-735-8200 gary.simpson@state.de.us Write Tidewater President, Gerrard Esposito, about your concern @ Tidewater Utilities, Inc. 1100 S. Little Creek Rd, Dover, De 19901. Voice your opposition to any rate increase at any time. Ask for an annual report. Consider buying a share of common stock to voice and vote your concerns at the annual meeting. Ask if there are any charges from Tidewater to install your own well or Geo-thermal system. Tel 1-800-523-7224 or 302-734-7500. jesposito@tuiwter.com Write the PSC (all commissioners), and Chair before they issue the final order to ask that they deny the rate increase. They serve at the governors pleasure, the Senates confirmation and with staggered terms. The Hon. PSC Chair Arnetta McRae, Attorney at Law 861 Silver Lake Blvd. Dover, De 19904 PSC Tel 1-800-282-8574 or 302-736-7500. The other Honorable commissioners can be reached the same as the Chair. jason.smith@state.de.us 1. Jaymes B. Lester, Mgr Richland Farms 2. Joann Conway, VP & Sec Conway Assoc., Inc, Realtor 3. Dallas Winslow, Attorney At Law 4. Jeffrey Clark, Attorney At Law Public Advocate, Arthur Padmore: http://publicadvocate.delaware.gov/ 820 N. French St Wilmington De 19801 - Tel 302-577-5080 Together, we can influence the outcome of the new Tidewater rate case, and get permanent legislation enacted to restrain these double digit rate increases for all utilities in Delaware. Please consider signing the petition at the Dave Marshall Tennis and Fitness facility, front desk, during Clubhouse hours. For questions call Dean Costas - Tel 302-645-6781 or email dmcmin1@aol.com or Bob Steinback - Tel 302-645-1616 or email rsteinback@verizon.net