TMX group

CALGARY, July 19 /CNW/ - (TSX:FTS) - FortisAlberta Inc. today released
its 2006 second quarter results announcing increased earnings, lower operating
costs and increased capital investment. Earnings for the second quarter were
$11.3 million, an increase of $1.6 million over the same quarter last year.
The higher earnings in the second quarter of 2006 were impacted by
decreased operating and income tax expenses, partially offset by decreased
revenues due to a rate decrease combined with increased interest and
depreciation costs. "We continue to make significant progress in improving
earnings by focusing on operating efficiencies and productivity initiatives to
keep operating costs low and ultimately reduce costs for our customers," says
Philip Hughes, President and CEO, FortisAlberta Inc.
Total revenue for the quarter was $58.6 million compared to $70.1 million
for the same period in 2005. In 2005, revenue was $10.8 million higher due to
the resolution of tax-related matters relating to a prior period. 2006 second
quarter revenue was impacted by a 1.9 per cent reduction in customer rates as
part of FortisAlberta's 2006/2007 negotiated settlement, which resulted in a
revenue decrease of $2.1 million. This decrease was partially offset by higher
energy deliveries and load growth in residential and industrial customer
classes as a result of a strong provincial economy.
To support the growing demand for electricity in Alberta and to respond
to customers' needs, the Company has increased capital investment to its
distribution network to $180 million in 2006, net of customer contributions,
from $131 million in 2005, net of customer contributions.
"FortisAlberta has increased capital expenditures in the second quarter
to $48.1 million, net of customer contributions, compared to $28.7 million,
net of customer contributions, in the same quarter last year," adds Hughes.
"Meeting customer growth requirements is a major challenge for the Company as
we continue to improve the reliability and efficiency of the electrical
system." FortisAlberta's investment in the system includes improvements such
as the commissioning of the 25,000 volt distribution lines from the new
Bassano substation increasing Alberta's electric system capacity by an
additional 25 megawatts. This capital project will meet increased customer
demand for electricity and improve reliability to residential, farm and oil
and gas customers in the Bassano area.
The Company's focus on the highest standards of employee and public
safety has helped us maintain our safety record. FortisAlberta launched a
public safety advertising campaign in its service territory to increase
awareness about electrical hazards. We also invested in educating youth
through communicating our safety messages in schools to grade five children
across our service territory. As part of FortisAlberta's "Empowering
Communities" community investment program, the Company renewed its commitment
to STARS (Shock Trauma Air Rescue Society) for the operation of the Human
Patient Simulator Program. The program provides specialized critical care
skills training to emergency care providers in many of the communities where
FortisAlberta has customers.
For a full copy of FortisAlberta's financial statements and management
discussion & analysis, please visit www.fortisalberta.com and click on the
Investor Centre.

FortisAlberta is an electric distribution company with approximately
421,000 customers and more than 104,000 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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