2300 Badger Drive Waukesha, WI 53188-5951 Phone: (262) 896-2400 Fax: (262) 896-2313 September 29, 2011 Dear Valued Customer: As you are aware, costs for primary materials and services have increased significantly during the past year and continue to climb. Key inputs show upward cost pressures which translate into increased raw material costs such as Silver (125%), PPI for rubber and plastic products (32%) and Copper (42%). Plastic resin feedstock such as Benzene and Cumene are affected by oil volatility, strong demand, and shrinking supply. Volatility in world oil markets has contributed to year-over-year oil increases of 28% with projections for prices to push higher throughout 2011. The increase in oil prices impacts production and shipping costs. Due to the sustained increases in the cost of commodities and raw materials, CPS is announcing the following price increases to cover manufacturing cost of the following products: Distribution, Substation Arresters Cable Accessories Link and Current Limiting Fuses Distribution Cutout and Disconnecting Products Line Installation and Protective Equipment 3-5% 3-6% 3-7% 6-8% 3-5% Effective immediately, new quotations and/or blanket renewals will reflect the above pricing actions. Actual percentage changes on some material numbers may be greater than the % listed above due to actual cost impact. CPS retains the right to limit or reject additional order quantities based upon original award or historical ordering patterns. CPS continues to manage the inflationary impact to our material costs through aggressive sourcing, product redesigns and productivity initiatives. Simultaneously, we strive to provide innovative product solutions and services to enhance our offering and competitive position. Your CPS sales representative is available to discuss substitutions and alternative technologies which help reduce total owning cost. We appreciate your support in the current business environment, and look forward to continuing our relationship with you. Regards, Sincerely Jerome Yakel Director Strategic Marketing Lyle Hildebrand Director, Line Installation and Protective Equipment