TMX group

CALGARY, April 12 /CNW/ - (TSX:FTS) - FortisAlberta Inc. announced today
2006 first quarter results reporting net earnings of $9.4 million compared to
2005 first quarter net earnings of $7.8 million.
The $1.6 million increase in net earnings in the first quarter of 2006
was primarily related to increased revenues combined with decreased income tax
expense, partially offset by increased operating, interest and depreciation
costs.
"We were able to improve our performance in the first quarter of 2006 by
achieving productivity gains, as well as improvements in the areas of safety,
reliability and customer service," says Philip Hughes, President and CEO,
FortisAlberta.
Total revenue for the quarter was $61.8 million compared to $58.6 million
for the same period in 2005. Revenue increased by $3.2 million primarily due
to the increase in distribution revenue as a result of the 2005 rate increase
of 2.1 per cent that was not reflected in the first quarter 2005 results as it
was approved and recorded in the second quarter of 2005. Also contributing to
the increase were higher energy deliveries and customer growth in the
residential, commercial and oil and gas customer classes as a result of a
strong provincial economy. Finally, there was an increase in franchise fee
revenues due to an increase in transmission rates in 2006.
FortisAlberta incurred $40 million, net of customer contributions, in
capital expenditures in the first quarter of 2006 compared to $22.8 million,
net of customer contributions, in the first quarter of 2005. These
expenditures were required to meet customer demand for new facilities within
the Company's service territory. The robust Alberta economy has lead to an
increase in residential housing starts, investments in commercial activities
and increased investment in facilities to serve the oil and gas sector.
"We continue to experience high growth rates within our service territory
as evidenced by our capital expenditure program completed during the quarter
as the provincial economy drives demand for new electrical infrastructure.
Despite this high growth rate and the inflationary pressures of the economy,
we have been able to limit our requested rate increases to zero per cent and
three per cent for 2006 and 2007 respectively," says Hughes.
For a full copy of FortisAlberta's financial statements and management
discussion & analysis, please visit www.fortisalberta.com and click on the
Investor Centre.
On April 6, 2006, FortisAlberta announced that it had entered into an
agreement with a syndicate of underwriters, pursuant to which the underwriters
have agreed to purchase and resell $100 million of senior unsecured debentures
of the Company. The Company filed a final short-form prospectus today in
connection with this offering.
"We are very pleased with the market interest and participation in this
bond offering, as some new financial institutions have been added to
FortisAlberta's lender base," says Hughes. "The competitive interest rate of
5.40 per cent will benefit customers for the entire 30-year term of the debt."
FortisAlberta plans to use the net proceeds of this offering to repay
certain indebtedness under its credit facility, which was incurred to fund
operating and capital expenditures. The bond offering is subject to customary
securities regulatory approvals and is expected to close on or about April 21,
2006.

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 $4.3 billion and annual
revenues of more than $1.4 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,
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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