FortisAlberta Files Settlement on 2005 Rates

CALGARY, April 13 /CNW/ - Today, FortisAlberta filed an application with
the Alberta Energy and Utilities Board ("AEUB") to approve a Negotiated
Settlement Agreement ("Settlement") dealing with all aspects of the Company's
2005 Distribution Tariff Application. If the Settlement is approved, there
will be no need for a full-scale hearing process.
The parties to the Settlement are Industrial Power Consumers Association
of Alberta, Public Institutional Consumers of Alberta, Alberta Pacific Forest
Industries Ltd., Alberta Urban Municipalities Association, Alberta Association
of Municipal Districts and Counties, Central Alberta REA, Consumers Coalition
of Alberta, Alberta Federation of REAs, Office of the Utilities Consumer
Advocate, Lehigh Cement, Alexis Nakota Sioux First Nation, Montana First
Nation and Tsuu T'ina First Nation.
"This Settlement, if approved by the AEUB, will allow us more time to
improve corporate performance in the core areas of safety, customer service,
and reliability," explains Philip Hughes, President and Chief Executive
Officer, FortisAlberta.
The Settlement calls for a 2005 distribution revenue requirement of
$215.4 million which translates to a 2.1 per cent increase on base rates for
2005. In reaching this Settlement, FortisAlberta has agreed to a level of
operating expense of $101 million and capital expenditures of $134.3 million.
AEUB approval is expected by the end of the second quarter, provided there are
no material objections to the Application.

FortisAlberta is an electric distribution company serving approximately
407,000 customers. It is a wholly owned subsidiary of Fortis Inc., a
diversified, international electric utility holding company with assets
exceeding $3.8 billion and annual revenues of approximately $1.2 billion. The
Common Shares, Series C First Preference Shares, Series E First Preference
Shares of Fortis Inc. 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.

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