FortisBC receives decision with respect to its 2005 Revenue Requirements Application

LOWNA, BC, May 31 /CNW/ - (TSX:FTS) - Today, FortisBC received a
decision from the British Columbia Utilities Commission ("BCUC") with respect
to its 2005 Revenue Requirements Application, 2005-2024 System Development
Plan ("SDP") and 2005 Resource Plan. In the decision, the BCUC approved
FortisBC's 2005 capital plan and 2005 Resource Plan, and commended the Company
for its efforts in putting forth the SDP. For purposes of setting electricity
rates for 2005, the BCUC approved a common equity ratio for FortisBC of
40 percent and continuation of the existing 40 basis point equity risk
premium. The BCUC also approved FortisBC's forecast 2005 O&M expenses, subject
to certain adjustments. The Company is in the process of finalizing the impact
of the decision on electricity rates for 2005 for filing with, and final
approval by, the BCUC.
"FortisBC is pleased with the BCUC's decision which recognizes and
supports the Company's firm commitment to improve customer service, and
ensures that we have the resources required to deliver on this commitment",
explains John Walker, President and Chief Executive Officer, FortisBC. "This
decision is a key step towards implementing our plan to improve service to our
customers in southern and central British Columbia, which includes plans to
invest over $400,000,000 in capital projects over the next five years to
ensure system reliability, safety and sustainability."

FortisBC Inc. is an integrated utility operating in the southern interior
of British Columbia, serving approximately 98,000 customers directly and about
49,000 indirectly through municipal utilities that are wholesale customers.
The utility has four hydroelectric generating plants with a combined capacity
of 205 megawatts and up to 7,000 kilometers of transmission and distribution
power lines. FortisBC employs approximately 450 people in BC and is a wholly
owned subsidiary of Fortis Inc. - a diversified, international electric
utility holding company based in St. John's, Newfoundland, with assets
exceeding $4 billion and annual revenues of approximately $1.2 billion. The
Common Shares, Series C First Preference Shares and Series E First Preference
Shares of the Corporation 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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