Power Supply
CUC relies upon diesel generation to produce electricity for Grand Cayman. The island has neither hydroelectric potential nor inherent thermal resources, and the Company must rely upon diesel fuel imported to Grand Cayman primarily from refineries in the Caribbean and the Gulf of Mexico. The fuel is shipped by pipeline from suppliers' tanker terminals to CUC's centralized generating plant located on the outskirts of George Town.

Generating Plant
CUC's power system is comprised of 18 generating units (16 diesel, one gas turbine and one steam turbine) with a combined capacity of 115 megaWatts. Generation expansion planning by the Company is based mainly on historical growth trends and planned major commercial developments. In addition, limits prescribed by CUC's Licence with the Cayman Islands Government dictate the minimum and maximum reserve generating capacity that the Company must maintain to ensure a reliable supply of electricity after allowance for breakdown and scheduled maintenance.

Transmission and Distribution (T&D) System
The Company's system is comprised of eight major transformer substations, approximately 226 miles of overhead high-voltage (69 kiloVolt and 13 kiloVolt) T&D lines and 14 miles of high-voltage submarine cable in Grand Cayman. The T&D lines and substations are designed for high winds and flooding that might result from a hurricane. The T&D assets have an original cost of $166.4 million and a net book value of $133.0 million as of April 30, 2005.

Properties
The Company's generating plant, two of its eight existing transformer substations, office building, hurricane centre, warehouse, fuel tanks and garage are all located on approximately 21.9 acres of land owned by the Company and located on North Sound Road, Grand Cayman. In addition, the Company owns five additional sites for transformer substations located on approximately 4.8 acres of land.