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Investor Centre
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Fortis Inc.
Suite 1201, Fortis Building
P.O. Box 8837
139 Water Street
St. John’s, NL A1B 3T2
T: 709.737.2800
F: 709.737.5307
W: www.fortisinc.com
E: investorrelations@fortisinc.com
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Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, ON
M5J 2Y1
T: 514.982.7555
T: 866.586.7638
F: 416.263.9394
F: 888.453.0330
W: www.computershare.com/fortisinc
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Ernst & Young LLP
Chartered Accountants
7th Floor, Fortis Building
139 Water Street
St. John’s, NL
A1C 1B2
T: 709.726.2840
F: 709.726.0345
W: www.ey.com/can
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Fortis Inc. (“Fortis” or the “Corporation”) includes forward-looking
information in this material within the meaning of applicable securities laws
in Canada (“forward-looking information”). The purpose of the forward-looking
information is to provide management’s expectations regarding the Corporation’s
future growth, results of operations, performance, business prospects and
opportunities, and it may not be appropriate for other purposes. All
forward-looking information is given pursuant to the “safe harbour” provisions
of applicable Canadian securities legislation. The words “anticipates”,
“believes”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “intends”,
“may”, “might”, “plans”, “projects”, “schedule”, “should”, “will”, “would” and
similar expressions are often intended to identify forward-looking information,
although not all forward-looking information contains these identifying words.
The forward-looking information reflects management’s current beliefs and is
based on information currently available to the Corporation’s management. The
forward-looking information in this material includes, but is not limited to,
statements regarding: the expected increase in average annual energy production
from the Macal River in Belize by the Vaca hydroelectric generating facility;
the expected timing of regulatory decisions; negligible electricity sales
growth is expected at the Corporation’s regulated utilities in the Caribbean
for 2010; organic revenue growth at Fortis Properties’ Hospitality Division is
expected to continue to be challenged in 2010; consolidated forecasted gross
capital expenditures for 2010 and in total over the five-year period from 2010
through 2014; the nature, timing and amount of certain capital projects and
their expected costs and time to complete; the expected impacts on Fortis of
the economic downturn; the expectation of no significant decrease in annual
consolidated operating cash flows in 2010 as a result of any continuation of
the economic downturn; the expectation that the subsidiaries will be able to
source the cash required to fund their 2010 capital expenditure programs; the
expectation that the Corporation and its utilities will continue to have
reasonable access to capital in the near to medium terms; expected consolidated
long-term debt maturities and repayments in 2010 and on average annually over
the next five years; no material increase in consolidated interest expense
and/or fees associated with renewed and extended credit facilities is expected
in 2010; no material adverse credit rating actions are expected in the near
term; the expected impact of a change in the US dollar-to-Canadian dollar
foreign exchange rate on basic earnings per common share in 2010; the estimated
impact a decrease in revenue at Fortis Properties’ Hospitality Division would
have on basic earnings per common share; the expectation that counterparties to
the Terasen Gas companies’ gas derivative contracts will continue to meet their
obligations; and the expectation of an increase in consolidated defined benefit
net pension cost for 2010. The forecasts and projections that make up the
forward-looking information are based on assumptions which include, but are not
limited to: the receipt of applicable regulatory approvals and requested rate
orders; no significant operational disruptions or environmental liability due
to a catastrophic event or environmental upset caused by severe weather, other
acts of nature or other major event; the continued ability to maintain the gas
and electricity systems to ensure their continued performance; no significant
decline in capital spending in 2010; no severe and prolonged downturn in
economic conditions; sufficient liquidity and capital resources; the
continuation of regulator-approved mechanisms to flow through the commodity
cost of natural gas and energy supply costs in customer rates; the continued
ability to hedge exposures to fluctuations in interest rates, foreign exchange
rates and natural gas commodity prices; no significant variability in interest
rates; no significant counterparty defaults; the continued competitiveness of
natural gas pricing when compared with electricity and other alternative
sources of energy; the continued availability of natural gas supply; the
continued ability to fund defined benefit pension plans; the absence of
significant changes in government energy plans and environmental laws that may
materially affect the operations and cash flows of the Corporation and its
subsidiaries; maintenance of adequate insurance coverage; the ability to obtain
and maintain licences and permits; retention of existing service areas; no
material decrease in market energy sales prices; maintenance of information
technology infrastructure; favourable relations with First Nations; favourable
labour relations; and sufficient human resources to deliver service and execute
the capital program. The forward-looking information is subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from historical results or results anticipated by the
forward-looking information. Factors which could cause results or events to
differ from current expectations include, but are not limited to: regulatory
risk; operating and maintenance risks; economic conditions; capital resources
and liquidity risk; weather and seasonality; commodity price risk; derivative
financial instruments and hedging; interest rate risk; counterparty risk;
competitiveness of natural gas; natural gas supply; defined benefit pension
plan performance and funding requirements; risks related to the development of
the Terasen Gas (Vancouver Island) Inc. franchise; the Government of British
Columbia’s Energy Plan; environmental risks; insurance coverage risk; loss of
licences and permits; loss of service area; market energy sales prices; changes
in the current assumptions and expectations associated with the transition to
International Financial Reporting Standards; changes in tax legislation;
information technology infrastructure; an ultimate resolution of the
expropriation of the assets of the Exploits River Hydro Partnership that
differs from what is currently expected by management; an unexpected outcome of
legal proceedings currently against the Corporation; relations with First
Nations; labour relations; and human resources. For additional information with
respect to the Corporation’s risk factors, reference should be made to the
Corporation’s continuous disclosure materials filed from time to time with
Canadian securities regulatory authorities and to the heading “Business Risk
Management” in the Corporation’s annual and quarterly Management Discussion and
Analysis and the "Risk Factors" section of the Annual Information Form. All
forward-looking information in this material is qualified in its entirety by
the above cautionary statements and, except as required by law, the Corporation
undertakes no obligation to revise or update any forward-looking information as
a result of new information, future events or otherwise after the date hereof.
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