TMX group

CALGARY, June 29 /CNW/ - (TSX:FTS) - FortisAlberta Inc. today announced
it has received approval from the Alberta Energy and Utilities Board (AEUB)
for its 2006/07 Revenue Requirement. The decision approves a negotiated
settlement agreement between FortisAlberta and its customers dealing with the
Company's 2006/07 Distribution Revenue Requirement and the 2007 Terms and
Conditions of Service.
The Agreement sets the Distribution Revenue Requirement, net of
miscellaneous revenue, at $217 million and $228 million in 2006 and 2007
respectively, which translates to a 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.
"The AEUB's decision gives us certainty for the next two years and
through a streamlined regulatory process allows us to focus on executing our
substantial capital program, while continuing to improve customer service,
productivity and the reliability of the electrical system," explains Philip
Hughes, President and Chief Executive Officer, FortisAlberta Inc.
The parties to the settlement agreement include: 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.

FortisAlberta is an electric distribution company with approximately
420,000 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, 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.

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