CALGARY, ALBERTA, Nov. 13, 2009 (Marketwire) -- FortisAlberta, a subsidiary of Fortis Inc., (TSX:FTS) announced today that it has received the Decision of the Alberta Utilities Commission (the "AUC") on the 2009 Generic Cost of Capital proceeding. The AUC set the 2009 and 2010 generic return on equity (ROE) at 9.0% for all Alberta utilities, which is an increase over the 8.61% ROE that the adjustment formula formerly in place would have provided for 2009.
For FortisAlberta, the deemed common equity level of rate base, to which the 9.0% ROE is to be applied, was set at 41%, an increase of 400 basis points over the previously established level of 37%. The increase in deemed common equity for FortisAlberta consists of a general increase of 200 basis points for all Alberta utilities and an additional increase of 200 basis points to reflect the effects of FortisAlberta having become a non-taxable utility for rate-setting purposes.
The AUC also ordered that the generic ROE for Alberta utilities, including FortisAlberta, be established on an interim basis for 2011 at 9.0%.
The Decision is available on the AUC's website at www.auc.ab.ca