FortisAlberta Inc.
TSX : FTS

FortisAlberta Inc.

April 06, 2006 10:02 ET

FortisAlberta Inc. Announces $100 Million Debenture Offering

CALGARY, ALBERTA--(CCNMatthews - April 6, 2006) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF US SECURITIES LAW.

FortisAlberta Inc. (TSX:FTS) announced today that it has entered into an agreement with a syndicate co-led by Scotia Capital Inc. and TD Securities Inc. to purchase from FortisAlberta and resell $100 million of senior unsecured debentures (the "Debentures"). The syndicate also includes BMO Nesbitt Burns Inc., CIBC World Markets Inc., and RBC Dominion Securities Inc.

The Company will file a preliminary short form prospectus with securities regulatory authorities in all Canadian provinces in connection with the sale of the Debentures. The offering is subject to customary securities regulatory approvals and closing conditions and is expected to close on or about April 21, 2006.

FortisAlberta plans to use the net proceeds of the offering to repay certain existing indebtedness under its credit facilities, which was incurred primarily to fund capital expenditures. Any proceeds remaining thereafter will be used for capital expenditures and other corporate purposes.

The Debentures have been rated A (low) (stable trend) by Dominion Bond Rating Service Limited and Baa1 (stable) by Moody's Investors Service. The Debentures will bear interest at an interest rate of 5.40% per annum payable semi-annually in arrears on April 21 and October 21 in each year and will mature on April 21, 2036. The Debentures are unsecured obligations of the Company.

The Debentures have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States to any person absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Debentures in the United States, nor shall there be any offer, solicitation, or sale of the Debentures in any state in which such offer, solicitation, or sale would be unlawful.

FortisAlberta Inc. is the owner and operator of a regulated electricity distribution business in the Province of Alberta and was incorporated under the Business Corporations Act (Alberta) on January 1, 2000. The Corporation is an indirect, wholly owned subsidiary of Fortis Inc., a diversified, international electricity utility holding company having investments in distribution, transmission and generation utilities as well as real estate and hotel operations. Fortis Inc. has assets of approximately $4.3 billion and annual revenues of approximately $1.4 billion. The Common Shares, Series C First Preference Shares and Series E First Preference Shares of Fortis Inc. are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C and FTS.PR.E, respectively. Fortis Inc. information can be accessed at www.fortisinc.com.

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