FortisAlberta Completes Offering

On October 25, 2004, FortisAlberta Inc., a wholly-owned subsidiary of Fortis Inc., completed a public offering of $200 million aggregate principal amount of 5.33 per cent series 04-1 senior unsecured debentures due October 31, 2014 and $200 million aggregate principal amount of 6.22 per cent series 04-2 senior unsecured debentures due October 31, 2034. The net proceeds of the offering were used principally to repay certain short-term indebtedness incurred by FortisAlberta Inc. in connection with its acquisition by Fortis Inc. on May 31, 2004.

FortisAlberta is a regulated electricity distribution utility that owns and operates approximately 60 per cent of the low-voltage electricity distribution system in Alberta and serves approximately 29 per cent of Alberta’s end-use customers.

The offering was made through a syndicate of underwriters led by Scotia Capital Inc. and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc. and TD Securities Inc.

FortisAlberta Inc. was represented in-house by Robert Fink, corporate counsel and corporate secretary, and by Davies Ward Phillips & Vineberg, with a team comprised of Arthur Shiff, Carol Pennycook, Sarbjit Basra, Jim Reid and Donna Aronson (corporate and securities) and John Zinn and Colin Campbell (tax).

The underwriters were represented by Stikeman Elliott, with a team comprised of Joel Binder, Karen Jackson, Greg Hogan, Wendy Yu and Jennifer Estrela (corporate and securities), Glenn Zacher (regulatory) and Lianne Miller (tax).