MW Coast Mountain Power Corp

Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS) announced today that the
Corporation, in partnership with Columbia Power Corporation and Columbia Basin
Trust ("CPC/CBT"), intends to construct a 335-megawatt ("MW") hydroelectric
generating facility (the "Waneta Expansion"), at an estimated cost of
approximately $900 million. The facility is sited near the Waneta Dam and
powerhouse facilities on the Pend d'Oreille River, south of Trail, British
Columbia. CPC/CBT are both 100% owned corporations of the Government of British
Columbia. Subject to negotiation and completion of definitive agreements, Fortis
will own 51% of the Waneta Expansion and will operate and maintain the
non-regulated investment when the facility comes into service, which is expected
in spring 2015. Federal and provincial environmental assessment approvals are in
place for the project.


The Waneta Expansion will become part of the Canal Plant Agreement and will
receive fixed energy and capacity entitlements based upon long-term average
water flows, thereby significantly reducing hydrologic risk associated with the
project. 


The energy, approximately 630 gigawatt hours, (and associated capacity required
to deliver such energy) for the Waneta Expansion will be sold to BC Hydro under
a long-term energy purchase agreement at prices comparable to those for projects
recently accepted by BC Hydro under its 2008 Clean Power Call. The surplus
capacity, equal to 234 MW on an average annual basis, will, subject to approval
of the British Columbia Utilities Commission (the "BCUC"), be sold to FortisBC
Inc. under a long-term capacity purchase agreement at a price within the range
of alternatives outlined in FortisBC's Resource Plan filed with the BCUC in May
2009.


"Fortis is excited about this opportunity to grow our non-regulated
hydroelectric generation business in British Columbia, where we have
well-established regulated utility operations at FortisBC and Terasen Gas," says
Stan Marshall, President and Chief Executive Officer, Fortis Inc. "Fortis,
through our operating and predecessor companies, has 125 years of expertise in
the hydroelectric generation business. FortisBC and CPC/CBT have a lengthy,
successful working relationship resulting from the many years that FortisBC has
managed CPC/CBT's hydroelectric assets in the Columbia Basin." 


"The Waneta Expansion will substantially resolve capacity shortfall issues for
FortisBC and will enable FortisBC to serve its customers with long-term,
reliable electricity from a renewable resource," Marshall explains. "The
hydroelectric generating capacity in British Columbia owned and/or managed by
Fortis, including the Waneta Expansion, will exceed 1,500 megawatts." 


"The Corporation's investment in the Waneta Expansion will increase consolidated
capital expenditures of Fortis by almost 10 per cent to about $5.5 billion over
the next five years," says Marshall. 


The Waneta Expansion is expected to generate slightly better financial returns
than regulated investments, commensurate with the higher risk associated with a
non-regulated project.


Each partner will be responsible to fund its share of the construction of the
project. Fortis expects to initially finance its share of costs through existing
committed credit facilities, which will be permanently financed through a
combination of equity and debt.


"British Columbia and the Pacific Northwest region provide good potential to
pursue additional hydroelectric generation assets that complement the utility
operations of Fortis in western Canada and deliver value to our customers and
shareholders," concludes Marshall. 


Key aspects of the partnership are outlined in the Notice of Intent ("NOI")
available for viewing online through BC Bid at www.bcbid.gov.bc.ca. The
publication of the NOI is a requirement of the Government of British Columbia.


Fortis Inc. is the largest investor-owned distribution utility in Canada, with
total assets exceeding $12 billion and fiscal 2009 revenues totalling $3.6
billion. The Corporation 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 and operates non-regulated generation assets
across Canada and in Belize and Upper New York State. It also owns hotels and
commercial real estate across Canada. 


FortisBC Inc., an indirect wholly owned subsidiary of Fortis Inc., is an
integrated regulated electric utility based in Kelowna, British Columbia,
serving approximately 160,000 customers directly and indirectly through
wholesale utilities in the southern interior of B.C. FortisBC owns and operates
four regulated hydroelectric generating plants with an aggregate capacity of 223
MW that provide approximately 45% of FortisBC's energy and 30% of its capacity
needs. FortisBC's remaining electricity supply is acquired through long-term
power purchase contracts and short-term market purchases. FortisBC also operates
and maintains, pursuant to management service agreements, the 493-MW Waneta
hydroelectric generation facility owned by Teck Cominco Metals Ltd., and the
149-MW Brilliant Hydroelectric Plant, 120-MW Brilliant Expansion Plant and
185-MW Arrow Lakes Hydroelectric Plant, each owned by CPC/CBT.


Fortis Inc. 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.


Fortis includes forward-looking information in this media release within the
meaning of applicable securities laws in Canada ("forward-looking information").
The purpose of the forward-looking information is to provide management's
expectations regarding the Corporation's future growth, results of operations,
performance, business prospects and opportunities, and it may not be appropriate
for other purposes. All forward-looking information is given pursuant to the
"safe harbour" provisions of applicable Canadian securities legislation. 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
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 assumptions developed using
information currently available to the Corporation's management. Although Fortis
believes that these statements are based on information and assumptions which
are current, reasonable and complete, these statements are necessarily subject
to a variety of risks and uncertainties, including that the involvement of
Fortis in the Waneta Expansion on the terms discussed herein is subject to
negotiation and completion of definitive agreements, the risk of project
construction and cost overruns and increased financing costs due to
higher-than-anticipated interest rates. For additional information on risk
factors that have the potential to affect the Corporation, reference should be
made to the Corporation's continuous disclosure materials filed from time to
time with Canadian securities regulatory authorities and to the heading
"Business Risk Management" in the MD&A for the three and six months ended June
30, 2010 and for the year ended December 31, 2009. Except as required by law,
the Corporation undertakes no obligation to revise or update any forward-looking
information as a result of new information, future events or otherwise after the
date hereof.

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