TMX group

CALGARY, May 17 /CNW/ - FortisAlberta has filed today an application with
the Alberta Energy and Utilities Board ("AEUB") to approve a Negotiated
Settlement Agreement ("Settlement") dealing with the Company's 2006 and 2007
revenue requirement.
The Settlement allows for a distribution revenue requirement of $217
million in 2006 and $228 million in 2007, resulting in an approximately one
per cent reduction to base distribution rates over two years. In reaching this
Settlement, the Company has agreed, for rate-making purposes, to a level of
operating expense of approximately $114 million for each year and capital
expenditures, before customer contributions, of approximately $400 million
over the two years.
"This settlement, if approved by the AEUB, will allow us to focus on our
substantial capital program, while at the same time continuing to improve
customer service, productivity and the reliability of Alberta's electrical
system in 2006 and 2007," says Philip Hughes, President and Chief Executive
Officer, FortisAlberta Inc.
The parties to the Settlement are Alberta Association of Municipal
Districts and Counties, Alberta Federation of REAs, Alberta Sugar Beet
Growers, Potato Growers of Alberta, Alberta Urban Municipalities Association,
Alexis Nakota Sioux Nation, Canadian Federation of Independent Business, Care
Centre Group, Central Alberta Rural Electrification Association Ltd.,
Consumers Coalition of Alberta, Industrial Power Consumers Association of
Alberta, Garneau Inc., Lehigh Cement Ltd., Montana First Nation, Office of the
Utilities Consumer Advocate, and Public Institutional Consumers of Alberta.
If the Settlement is approved, there will not be a Phase I hearing
(revenue requirement) for FortisAlberta's 2006/07 Distribution Tariff
Application. However, FortisAlberta will participate in a Phase II hearing
beginning May 29, 2006, dealing with rate design and cost allocation to
determine the amount of revenue that should be recovered from each customer
rate class. AEUB approval of the Settlement is expected by the end of second
quarter, provided there are no material objections to the Application.
FortisAlberta is an electric distribution company with approximately
420,000 customers and more than 103,600 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.
%SEDAR: 00021201E