Weather is a key earnings driver in the water industry, and there is no question that the climate played a role in our improved results; in fact, increased water sales to existing customers added $6,887,000 to 2002 revenue. But our efforts to grow and to win fair regulatory treatment paid off too, as sales to new customers added $2,813,000 in revenue and rate increases added another $6,631,000. In 2002, we continued to execute our disciplined and  strategic growth plan. On the regulated side of the business, we added 8,600 customer connections. Nearly half of these new customers are served by our New Mexico subsidiary, which completed its acquisition of the Rio Grande Utility Corporation in 2002 and signed an agreement to purchase National Utilities Corporation, an acquisition we expect to complete in the third  quarter of 2003. Washington Water added 600 customers with its purchase  of the Agotaras and Cascade Highlands North water systems. In California, we expanded existing service areas, adding 3,900 connections in 2002. We also took steps last year to establish our presence in yet another state. In August, we signed an agreement to purchase for book value the Kaanapali Water Corporation, a premium system serving several large, high-end water users on the island of Maui in Hawaii. We expect to complete this first transaction in the Aloha State by mid-2003. On the non-regulated side of the business, we focused on improving the profitability of our contract operations, renegotiating agreements and improving efficiency to enhance results. Our water rights brokering busi- ness improved, and we leased additional antenna sites and sold several surplus properties. We also began providing billing services to the City of Stockton. Our progress for the year was quite remarkable, consider- ing the fact that we did not have any new General Rate Cases approved in California in 2002. However, we relentlessly pursued rate relief throughout the year, and secured authorization to recover $1.9 million in previously- incurred higher power costs, $2 million in step rate increases, and $2.7 million from General Rate Case decisions approved in 2001. Also, in Washington, our General Rate Case was approved, adding $800,000 to  2002 revenues. Although we did not receive the magnitude of rate relief  we feel we were entitled to in 2002, we did help bring about two significant developments in the regulatory arena. First, we joined our colleagues in the water utility industry to promote the passage of California Assembly Bill 2838, GROWTH IN REGULATED BUSINESS NON- REGULATED BUSINESS RATE RELIEF IN 2002 4