Business
FortisAlberta plans to invest $360 million in capital projects in 2006 and 2007
FortisAlberta plans to invest $360 million in capital projects in 2006 and 2007.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Dec. 12 /CNW/ - (TSX:FTS) - FortisAlberta Inc. filed today its\n2006/07 Distribution Tariff Application with the Alberta Energy and Utilities\nBoard (EUB) for approval of annual operating and maintenance expenses and \n$360 million in capital projects, net of customer contributions totaling \n$26.6 million, to continue to upgrade and enhance Alberta's electrical system\nin 2006 and 2007.\n\"This application reflects our prudent approach of adopting the lowest\ncost solution to operate the business while keeping pace with the growing\nexpectations of our customers,\" says Philip G. Hughes, President and Chief\nExecutive Officer. \"These capital investments position us well to provide high\nquality electrical service in a safe, reliable and cost effective manner.\"\nOnce approved, the filing will result in no distribution rate increase in\n2006 and a three per cent rate increase to customers on base rates in 2007.\nFortisAlberta attributes these low rate increases to improving operating\npractices, reliability and capital investments undertaken for the benefit of\nour customers.\n\"We are operating in a province characterized by strong economic growth,\"\nadds Hughes. \"To support this growth and respond to customer needs, we will\ncontinue to focus on increasing capacity and improving reliability on our\nsystem to minimize the impact on distribution rates for our customers.\"\nIn 2005, FortisAlberta will invest approximately $131 million in capital\nprojects, net of customer contributions of approximately $29 million, to build\nnew facilities to service new customers and improve reliability on the system.\nMore than three-quarters of the company's capital investments in 2006 and\n2007 will be directed towards improving and expanding poles and wires\nfacilities. These investments will strengthen the physical integrity of the\nexisting electrical system and be used to build additional facilities to\nimprove capacity and reliability.\n\nFortisAlberta is an electric distribution company with approximately\n412,000 customers and more than 103,000 kilometres of power lines. It is a\nwholly owned indirect subsidiary of Fortis Inc. - a diversified, international\nelectric utility holding company with assets exceeding $4.1 billion and annual\nrevenues of over $1.2 billion. The Common Shares, Series C First Preference\nS...