Fortis Ink Belize Electricity Deal

Fortis Inc. announced today that it has agreed to terms of a 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.