FortisAlberta files 2008/09 settlement agreement with EUB



    CALGARY, Nov. 2 /CNW/ - FortisAlberta Inc. announced today that it has
filed a Negotiated Settlement Agreement (the Settlement) with the Alberta
Energy and Utilities Board (EUB) regarding the Company's 2008 and 2009 revenue
requirement.
    The Settlement, if approved by the EUB, establishes a distribution
revenue requirement of $256.2 million in 2008 and $280.8 million in 2009,
resulting in revised distribution rate increases of 6.8 per cent and 7.3 per
cent for 2008 and 2009 respectively. In 2008, this results in an increase of
$1.30 per month for residential customers on the distribution component of
their bill.
    "Although we are operating in a market characterized by strong economic
growth, we have succeeded in keeping distribution rates relatively flat over
the last three years," says Karl Smith, President and CEO, FortisAlberta Inc.
"The proposed rate increases are primarily related to record levels of
customer-driven capital expenditures in the last two years and continuing high
levels are expected in 2008 and 2009."
    Capital expenditures for 2008 and 2009, before customer contributions,
will total approximately $600 million. Nearly half this amount is driven by
the construction of facilities required to serve new customers, and to
complete line moves and urgent repairs. Other capital expenditures include the
full deployment of advanced metering technology, which will help to control
costs, improve metering accuracy and enhance overall customer satisfaction.
    The parties to the Settlement are: Alberta Sugar Beet Growers and Potato
Growers of Alberta, Montana First Nation and Montana Rural Electrification
Association Ltd., Consumers Coalition of Alberta, Industrial Power Consumers
Association of Alberta, Office of the Utilities Consumer Advocate, Public
Institutional Consumers of Alberta and the Pipeline Power Group and
Associates. The 2008/2009 NSA is supported by the representatives of all
segments of FortisAlberta's customer base including residential, farm,
commercial and industrial customer classes.
    If the Settlement is approved, there will be no need for a further
hearing on revenue requirements for FortisAlberta's 2008/09 Distribution
Tariff Application.

    As an owner and operator of more than 60 per cent of Alberta's total
electric distribution network, FortisAlberta's focus is the safe and reliable
delivery of electricity to our 443,000 customers in 175 growing communities
across Alberta. FortisAlberta is a wholly owned indirect subsidiary of Fortis
Inc., the largest investor-owned distribution utility in Canada, serving
almost 2,000,000 gas and electric customers with assets approaching
$10 billion. Its regulated holdings include a natural gas utility in British
Columbia and electric utilities in five Canadian provinces and three Caribbean
countries. Fortis Inc. owns non-regulated hydroelectric generation assets
across Canada and in Belize and upper New York State. It also owns hotels and
commercial real estate in Canada. Fortis Inc. shares are listed on the Toronto
Stock Exchange and trade under the symbol FTS. Additional information can be
accessed at www.fortisinc.com or www.sedar.com.

    %SEDAR: 00021201E




For further information:

For further information: Investor Inquiries - Dan Pigeon, Vice
President, Finance and Chief Financial Officer, FortisAlberta Inc., Tel: (403)
514-4438, www.fortisalberta.com, investors@fortisalberta.com; Media Inquiries
- Jennifer MacGowan, Manager, Corporate Communications, FortisAlberta Inc.,
Tel: (403) 514-4079, www.fortisalberta.com, investors@fortisalberta.com

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FORTISALBERTA

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