FortisAlberta files for rate changes

    CALGARY, June 1 /CNW/ - (TSX: FTS) FortisAlberta Inc. today filed its
2008 and 2009 Distribution Tariff Application with the Alberta Energy and
Utilities Board (EUB) for approval of annual operating and maintenance
expenses and approximately $590 million in capital expenditures, net of
customer contributions totaling $60 million. Capital expenditures are
comprised of additions to the electrical distribution system to meet growth
requirements and improve reliability.
    "FortisAlberta has kept distribution rates stable over the past three
years, despite substantial pressure on operating and capital costs resulting
from strong economic growth in the province," says Karl Smith, President and
CEO, FortisAlberta. "The company has focused on satisfying customer needs,
controlling costs, and improving operating performance while completing
extensive capital work."
    FortisAlberta is requesting an increase in distribution rates of 8.5 per
cent for 2008 and 9.0 per cent for 2009. For typical residential customers,
this means an increase of approximately $1.66 per month on the distribution
component of their electrical bill effective January 1, 2008.
    "FortisAlberta has worked diligently to minimize the impact of the
proposed rate increase on customers while balancing the need to maintain and
improve its distribution system to continue to provide safe, reliable and
cost-effective service for the benefit of all customers," adds Smith. "We
recognize any rate increase is significant to our customers and we are
committed to continuing to manage and control costs to keep electrical rates
as low as possible."
    FortisAlberta attributes these rate increases to significant customer
growth, which has required an expansion of the electrical system and has put
inflationary pressures on labour and materials costs. In addition, there are
other cost drivers behind the proposed rate increases including the
implementation of advanced metering technology across the service area,
capacity upgrades and projects to improve safety and reliability.
    More than 50 per cent of the company's electrical system investments in
2008 and 2009 are related to the construction of distribution facilities
required to serve new customers. These investments will also strengthen the
physical integrity of the existing electrical system and will be used to build
additional facilities to improve capacity and reliability. To view the
application, visit

    FortisAlberta is an electric distribution company with approximately
433,000 customers and more than 104,700 kilometres of power lines. It is a
wholly owned indirect subsidiary of Fortis Inc., - the largest investor-owned
distribution utility in Canada. Fortis Inc. serves almost 2,000,000 gas and
electric customers and has approximately $10 billion of assets. The Common
Shares; First Preference Shares, Series C; First Preference Shares, Series E;
and First Preference Shares, Series F of Fortis are traded on the Toronto
Stock Exchange under the symbols FTS, FTS.PR.C, FTS.PR.E and FTS.PR.F,
respectively. Additional information can be accessed at or

    %SEDAR: 00021201E

For further information:

For further information: Investor Inquiries: James Harbilas, C.A., Vice
President, Finance and Chief Financial Officer, FortisAlberta Inc., Tel: (403)
514-4554,,; Media Inquiries:
Jennifer MacGowan, Manager, Corporate Communications, FortisAlberta Inc., Tel:
(403) 514-4079,,

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