“Fortis delivered earnings of CAD245 million in 2008, which marks the ninth consecutive year the Corporation has delivered record earnings to our shareholders. Results were driven by a full year of earnings from Terasen and increased contributions from hydroelectric generation,” says Stan Marshall, president and chief executive officer, Fortis “In 2008, Fortis completed its largest ever capital program, with around CAD900 million being invested in energy infrastructure to enhance reliability of service to our customers and to meet their growing energy requirements,” he stated.

The company’s earnings for the fourth quarter were CAD76 million, or CAD0.48 per common share, compared to CAD79 million, or CAD0.51 per common share, for the same quarter in 2007. Fourth quarter results for 2007 were favourably impacted by one-time items totalling around CAD13 million related to the sale of surplus land at Terasen Gas Inc., the reduction of future income tax liability balances at Fortis Properties related to lower enacted corporate income tax rates and an interconnection agreement-related refund at FortisOntario.

Excluding these one-time items, earnings were CAD10 million higher quarter over quarter. The increase was driven by stronger performance and lower corporate taxes at FortisAlberta, lower corporate expenses, and CAD1 million of additional earnings from Caribbean Utilities related to a change in the utility’s fiscal year end. The increase was partially offset by the impact of a lower allowed rate of return on rate base assets (“ROA”) at Belize Electricity, effective July 1, 2008; an around CAD1 million loss of revenue at Fortis Turks and Caicos related to Hurricane Ike; and an around CAD2 million reduction in fourth quarter earnings at Newfoundland Power associated with a shift in the quarterly distribution of the utility’s annual purchased power expense. Newfoundland Power’s annual earnings were not impacted by the shift in the

quarterly distribution of annual purchased power expense.

Dividends paid per common share grew to CAD1.00 in 2008, up 22 per cent from 82 cents paid per common share in the previous year. Fortis increased its quarterly common share dividend 4 per cent to 26 cents from 25 cents, commencing with the first quarter dividend payable on March 1, 2009. The increase extends the Corporation’s record of annual common share dividend increases to 36 consecutive years, the longest record of any public corporation in Canada.

Fortis and its utilities raised almost CAD1.2 billion in equity and 30-year debt in 2008, including CAD230 million in preference equity and CAD300 million in common equity at Fortis Inc.; CAD250 million 5.80% debentures at Terasen Gas Inc.; CAD250 million 6.05% debentures at Terasen Gas (Vancouver Island) Inc.; CAD100 million 5.85% debentures at FortisAlberta; and CAD60 million 6.05% bonds at Maritime Electric.

In December, Fortis issued 11.7 million common shares, under a bought deal agreement with underwriters, for gross proceeds of aroundly CAD300 million. Net proceeds from the common equity offering were used to repay short-term debt incurred to retire CAD200 million of debt at Terasen Inc. (“Terasen”) that matured on December 1, 2008 and for general corporate purposes.

Earnings at Canadian Regulated Electric Utilities were CAD126 million compared to CAD125 million for 2007. Results for 2007 included a one-time after-tax gain of around CAD2 million related to the receipt of an interconnection agreement-related refund at FortisOntario; however, results for 2008 were reduced by that amount to reflect the regulatory-required repayment of the refund. Excluding these one-time items, earnings’ growth of CAD5 million year over year was driven by rate base growth and higher allowed ROEs at FortisAlberta, FortisBC and Newfoundland Power, partially offset by lower corporate tax recoveries at FortisAlberta.

Fortis is a Canada-based utility engaged in distribution of gas and electricity.