FortisAlberta announces 2005 second quarter earnings

CALGARY, July 28 /CNW/ - (TSX:FTS) FortisAlberta today announced 2005
second quarter earnings, which were higher than the same quarter last year.
Earnings for the second quarter of 2005 were $9.8 million, compared to
$0.7 million for the same quarter last year.
"The higher earnings are primarily related to increased revenues due to
the resolution of tax matters related to prior periods and lower operating
costs resulting from resources being shifted to capital projects to satisfy
increased customer demand for new facilities," says Philip Hughes,
FortisAlberta's president and CEO. "This was partially offset by increased
depreciation and amortization costs."
"In 2005, we are focused on responding to customer growth in our service
territory while improving customer service and operating efficiencies," adds
Hughes.
Total revenue for the quarter was $70.1 million compared to $55.8 million
for the same period in 2004. This revenue increase is due to the resolution of
tax-related matters resulting from prior periods, the cumulative effects of
the 2.1 per cent rate increase approved by the Alberta Energy and Utilities
Board in Decision 2005-053 and load growth in residential and industrial
customer classes. This was partially offset by estimated amounts required for
the final settlement of billings related to previous years.

FortisAlberta is an electric distribution company with approximately
407,000 customers. It is a wholly owned subsidiary of Fortis Inc. - a
diversified, international electric utility holding company with assets of
approximately $4 billion and annual revenues of approximately $1.2 billion.
The Common Shares, Series C First Preference Shares and Series E First
Preference Shares are traded on the Toronto Stock Exchange under the symbols
FTS, FTS.PR.C and FTS.PR.E, respectively. Fortis Inc. information can be
accessed at www.fortisinc.com.

FortisAlberta may include forward-looking statements in this release. By
their very nature, forward-looking statements are based on underlying
assumptions and are subject to inherent risks and uncertainties surrounding
future expectations generally. Such events include, but are not limited to,
general economic, market and business conditions, regulatory developments,
weather and competition. FortisAlberta cautions readers that should certain
events or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those expected. For
additional information with respect to certain of these risks or factors,
reference should be made to FortisAlberta's continuous disclosure materials
filed from time to time with Canadian Securities Regulatory Authorities.
FortisAlberta disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.