TMX group

Calgary, Dec. 8 /CNW/ - (TSX:FTS) - FortisAlberta Inc. filed today an
application with the Alberta Energy and Utilities Board (EUB) for approval of
interim rates effective Jan. 1, 2006 to recover from our customers the
transmission costs under the new rate structure that we must now pay to the
Alberta Electric System Operator (AESO). Transmission costs paid to the AESO
are subject to deferral account treatment by the EUB and, as a result, do not
impact FortisAlberta's earnings.
"FortisAlberta recognizes that the recovery of the revised transmission
costs through these interim rates will impact the majority of our customers,"
says Philip G. Hughes, President and Chief Executive Officer, FortisAlberta.
"We are committed to continue focusing on building capacity, improving
reliability and investing capital to upgrade the system to keep distribution
rates as low as possible for our customers."
These interim rates are required to align costs with the Transmission
Regulation, which shifts the majority of the costs to run the transmission
system from generators to load customers. The actual amount of the increase
will vary for individual customers depending on their rate classification and
the amount of electricity they consume. FortisAlberta's distribution revenue
will remain unaffected by the collection of these interim rates.
FortisAlberta anticipates filing a full 2006/07 Distribution Tariff
Application the week of December 12, 2005, and is proposing no distribution
rate increase in 2006 and a three per cent rate increase to customers on base
rates in 2007.

FortisAlberta is an electric distribution company with approximately
412,000 customers and more than 103,000 kilometres of power lines. It is a
wholly owned, indirect subsidiary of Fortis Inc. - a diversified,
international electric utility holding company with assets exceeding
$4.1 billion and annual revenues of over $1.2 billion. The Common Shares,
Series C First Preference Shares and 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.

FortisAlberta may include forward-looking statements in this release. By
their very nature, forward-looking statements are based on underlying
assumptions and are subject to inherent risks and uncertainties surrounding
future expectations generally. Such events include, but are not limited to,
general economic, market and business conditions, regulatory developments,
weather and competition. FortisAlberta cautions readers that should certain
events or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary significantly from those expected. For
additional information with respect to certain of these risks or factors,
reference should be made to FortisAlberta's continuous disclosure materials
filed from time to time with Canadian Securities Regulatory Authorities.
FortisAlberta disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
%SEDAR: 00021201E