Newfoundland Power Receives Approval on Cost of Capital

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - June 15, 2012) - Today, the Newfoundland and Labrador Board of Commissioners of Public Utilities set Newfoundland Power Inc.'s 2012 regulated return on common equity at 8.80%.

There will not be any impact on customer electricity rates at this time. Newfoundland Power's 2013 regulated return on common equity is expected to be addressed in the Company's next General Rate Application scheduled to be filed in the fall of 2012.

All the common shares of Newfoundland Power Inc. are owned by Fortis Inc. Fortis Inc. is the largest investor-owned distribution utility in Canada, with total assets of more than $14 billion and fiscal 2011 revenue totalling approximately $3.7 billion. The Corporation serves more than 2,000,000 gas and electricity customers. Its regulated holdings include electric distribution utilities in five Canadian provinces and two Caribbean countries and a natural gas utility in British Columbia. Fortis owns and operates non-regulated generation assets across Canada and in Belize and Upper New York State. It also owns hotels and commercial office and retail space in Canada. Fortis shares are traded on the Toronto Stock Exchange under the symbol FTS.

With a customer base of over 248,000 customers, Newfoundland Power is committed to safety and dedicated to providing the highest level of customer service and reliability of electricity in the most cost-efficient manner possible. For more information on Newfoundland Power's programs, services and community partnerships, please visit www.newfoundlandpower.com.