Newfoundland Power Inc.

Newfoundland Power Inc.

December 23, 2010 14:27 ET

New Support Structure Agreement Between Newfoundland Power and Bell Aliant

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - Dec. 23, 2010) - Newfoundland Power Inc. and Bell Aliant have signed a new Support Structure Agreement where Bell Aliant will buy back 40% of all joint-use poles and related infrastructure at a price of approximately $46 million. This represents approximately 5% of Newfoundland Power's rate base.

In 2001, Newfoundland Power purchased Bell Aliant's (formerly Aliant Telecom Inc.) joint-use poles and related infrastructure under a 10-year agreement which expires December 31, 2010. Bell Aliant has rented space on these poles from Newfoundland Power since 2001 with the right to repurchase 40% of all joint-use poles at the end of the term. Bell Aliant has decided to exercise this option to buy back these poles from Newfoundland Power.

Newfoundland Power will continue to be responsible for the construction and maintenance of Bell Aliant's support structure requirements throughout 2011.

The proposed agreement is subject to approval by the Newfoundland and Labrador Board of Commissioners of Public Utilities and is expected to close in 2011.

With a customer base of over 242,000 customer accounts, Newfoundland Power is committed to safety and dedicated to providing the highest level of customer service and reliability in the most cost-efficient manner possible. All the common shares of Newfoundland Power are owned by Fortis Inc., the largest investor-owned distribution utility in Canada with total assets of $12.5 billion and fiscal 2009 revenues totalling $3.6 billion. Fortis Inc. serves approximately 2,100,000 gas and electricity customers. Its regulated holdings include electric distribution utilities in five Canadian provinces and three Caribbean countries and a natural gas utility in British Columbia. Fortis owns non-regulated generation assets across Canada and in Belize and Upper New York State. It also owns hotels and commercial real estate in Canada. Fortis shares are listed on the Toronto Stock Exchange and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com or www.sedar.com.

Newfoundland Power may include forward-looking statements in this release. Certain information herein is forward-looking and reflects management's current expectations regarding the Company's future financial and related performance. 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 the 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 Company's management. 

Certain material factors, estimates and assumptions, which are subject to inherent risks and uncertainties surrounding future expectations generally, have been applied in drawing the conclusions contained in the forward-looking statements. These are related to, but are not limited to, regulation; energy supply; competition; general economic conditions; health, safety and the environment; interest rates; insurance; weather; labour relations; licences and permits; capital resources and liquidity. Readers are cautioned to not place undue reliance on forward-looking statements because actual results could differ materially from the results discussed or implied in those statements. The Company undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise.

Contact Information

  • Newfoundland Power Inc.
    Jocelyn Perry
    Vice President, Finance and Chief Financial officer
    709-737-5819