Fortis Inc.
TSX : FTS

Fortis Inc.

August 31, 2015 16:29 ET

Fortis Inc. Reaches Terms of Settlement Regarding Belize Electricity Limited

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Aug. 31, 2015) - Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS) announced today that it has agreed to terms of a settlement (the "Settlement") with the Government of Belize (the "Government") regarding the Government's expropriation of the Corporation's approximate 70% interest in Belize Electricity Limited ("BEL") in June 2011.

The terms of the Settlement include a one-time US$35 million cash payment to Fortis from the Government and a reduction of the Corporation's common equity position in BEL to approximately 33%.

"We look forward to working with the Government and BEL to provide efficient and reliable utility operations in Belize," says Barry Perry, President and Chief Executive Officer, Fortis.

BEL is the primary distributor of electricity in Belize, Central America and is regulated by the Public Utilities Commission. The utility meets the country's peak demand of approximately 84 megawatts (MW) from multiple sources of energy, including electricity supply from the Corporation's indirect wholly owned subsidiary, Belize Electric Company Limited ("BECOL"). BECOL is comprised of three generating facilities - Chalillo, Mollejon and Vaca - with a combined generating capacity of 51 MW.

Completion and implementation of the Settlement is subject to legislative approval by the Government and other conditions precedent, which are expected to be completed in the coming weeks.

About Fortis

Fortis is a leader in the North American electric and gas utility business, with total assets of approximately $28 billion and fiscal 2014 revenue of $5.4 billion. Its regulated utilities serve more than 3 million customers across Canada and in the United States and the Caribbean.

For more information, visit www.fortisinc.com or www.sedar.com.

Fortis includes forward-looking statements in this media release within the meaning of applicable securities laws in Canada. The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future growth, results of operations, performance and business prospects and opportunities, and it may not be appropriate for other purposes. All forward-looking information is given pursuant to the safe harbor provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "expects", "could", "intends", "may" and similar expressions have been used to identify the forward-looking statements which, without limitation, include those statements related to the timing of completion of the Settlement including legislative approval, and satisfaction of conditions precedent. Forward-looking statements involve significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Such risk factors or assumptions include, but are not limited to, the ability to obtain approvals and to satisfy conditions to settlement, including governmental approvals. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Mr. Karl Smith
    Executive Vice President,
    Chief Financial Officer, Fortis
    709.737.2800