TMX group

CALGARY, Feb. 2 /CNW/ - FortisAlberta Inc. today announced net earnings
for the twelve months ending Dec. 31, 2005, of $31.1 million compared to
$24.5 million for the same period last year. The higher earnings in 2005 were
primarily related to increased revenues, controlled operating expenses and
lower interest rate costs partially offset by increased depreciation costs and
income tax expenses.
"Our improved earnings are the result of improved productivity, improved
customer service and completing maintenance and capital work on schedule,"
says Philip Hughes, President and CEO, FortisAlberta Inc. "In 2005, we
invested approximately $131 million, net of customer contributions of
approximately $31 million, in our distribution infrastructure to support
strong customer growth in Alberta and improve the reliability of our
distribution system."
Net earnings for the fourth quarter of 2005 were $4.2 million compared to
$7.2 million for the same quarter in 2004. The lower earnings were due to
higher interest costs and the implementation of the negotiated settlement of
the Company's 2005 Distribution Tariff Application.
Total revenue for the quarter was $58.7 million compared to $58.3 million
for the same period in 2004. The increase in revenue was due to an increase in
energy deliveries to residential, commercial and oil and gas customers as a
result of a strong provincial economy. This was partially offset by warmer
weather in December. Total energy consumption and the number of customers have
increased in 2005 in comparison to 2004.
In December 2005, FortisAlberta filed its 2006/2007 distribution tariff
application with the Alberta Energy and Utilities Board requesting approval to
spend $360 million, net of customer contributions, on capital expenditures in
2006 and 2007 to meet customer growth and improve the reliability of the
distribution system. The 2006/2007 application, if approved, will result in no
distribution rate increase in 2006 and a three per cent rate increase to
customers on base rates in 2007.
For a copy of FortisAlberta Inc.'s financial statements, go to
www.fortisalberta.com and click on Investor Centre.

FortisAlberta is an electric distribution company with approximately
415,000 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, forwardlooking 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,
News Release 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.

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