Business
FortisAlberta to invest $240 million in capital projects in 2007
FortisAlberta to invest $240 million in capital projects in 2007.
About this update from Fortis Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Nov. 28 /CNW/ - FortisAlberta's Board of Directors today\nannounced the approval of $240 million in capital projects for 2007, which is\nnet of customer contributions totaling $33 million. The current forecast for\n2006 is $217 million, net of customer contributions of $33 million.\n\"These higher levels of capital investments are required to meet the\nunprecedented growth driven by the Alberta economy,\" says Philip Hughes,\nPresident and CEO, FortisAlberta. \"The strategic investment of capital to\nsupport Alberta's customer growth requirements and a focus on electrical\nupgrades and enhancements across our service territory will position\nFortisAlberta to continue to provide high quality electrical service in a\nsafe, reliable cost effective manner.\"\nMore than half the Company's capital investments in 2007 will be directed\ntowards improving and expanding poles and wires facilities to meet customer\ndemand. These investments will strengthen the physical integrity of the\nexisting electrical system and be used to build additional facilities to\nimprove capacity and reliability.\nAs part of a negotiated settlement agreement between FortisAlberta and\nits customers dealing with the Company's 2006/07 Distribution Revenue\nRequirement and the 2007 Terms and Conditions of Service, the agreement\nincluded capital expenditures of $177 million, which was net of customer\ncontributions of $24 million. The increase in FortisAlberta's 2007 capital\nexpenditure program, which is subject to approval by the Alberta Energy and\nUtilities Board (EUB), is primarily due to higher electricity demands and\nsignificant customer growth in the residential, commercial and oil and gas\ncustomer classes as a result of a strong provincial economy.\nIn addition, on November 27, 2006, the EUB issued Order U2006-292, which\nestablishes the generic return on equity for FortisAlberta and other utilities\nunder the EUB's jurisdiction at 8.51% for 2007 versus 8.93% in 2006.\n\nFortisAlberta is an electric distribution company with approximately\n426,000 customers and more than 104,000 kilometres of power lines. It is a\nwholly owned indirect subsidiary of Fortis Inc. - a diversified, international\nelectric utility holding company with assets of approximately $5 billion and\nannual revenues of over $1.4 billion. The Common Shares, First Pr...