Fortis Earns $49 Million in the Third Quarter

Market Wire, October, 2008

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                     Financial Highlights (Unaudited)
                        Periods Ended September 30
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                                  Quarter               Year-to-date
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($ millions, except
 earnings per common
 share and common shares
 outstanding)             2008   2007   Variance   2008   2007   Variance
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Revenue                    727    651         76  2,721  1,700      1,021
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Cash flow from operating
 activities                 17     59        (42)   449    221        228
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Net earnings applicable
 to common shares           49     31         18    169    114         55
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Basic earnings per
 common share ($)         0.31   0.20       0.11   1.08   0.86       0.22
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Diluted earnings per
 common share ($)         0.31   0.20       0.11   1.06   0.79       0.27
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Weighted average number
 of common shares
 outstanding (millions)  157.2  154.5        2.7  156.9  131.6       25.3
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                                  Segmented Net Earnings
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                                  Quarter               Year-to-date
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                          2008   2007   Variance   2008   2007   Variance
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Regulated Gas
 Utilities - Canadian
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  Terasen Gas
   Companies (1)             1     (4)         5     71     (3)        74
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Regulated Electric
 Utilities - Canadian
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  FortisAlberta             17     15          2     35     42         (7)
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  FortisBC (2)               8      6          2     27     24          3
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  Newfoundland Power         8      2          6     24     21          3
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  Other Canadian (3)         5      5          -     11     13         (2)
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                            38     28         10     97    100         (3)
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Regulated Electric
 Utilities
 - Caribbean (4)             7     10         (3)     9     22        (13)
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Non-Regulated - Fortis
 Generation (5)              9      5          4     22     17          5
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Non-Regulated - Fortis
 Properties (6)              9      8          1     19     16          3
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Corporate and Other (7)    (15)   (16)         1    (49)   (38)       (11)
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Net Earnings Applicable
 to Common Shares           49     31         18    169    114         55
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(1) Comprised of Terasen Gas Inc. ("TGI"), Terasen Gas (Vancouver Island)
    Inc. ("TGVI") and Terasen Gas (Whistler) Inc. ("TGWI").  Financial
    results are reported from May 17, 2007, the date of acquisition.
(2) Includes the regulated operations of FortisBC Inc. and operating,
    maintenance and management services related to the Waneta, Brilliant
    and Arrow Lakes hydroelectric generating plants and the distribution
    system owned by the City of Kelowna.  Excludes the non-regulated
    generation operations of FortisBC Inc.'s wholly owned partnership,
    Walden Power Partnership.
(3) Includes Maritime Electric and FortisOntario.  FortisOntario includes
    Canadian Niagara Power and Cornwall Electric.
(4) Includes Belize Electricity, in which Fortis holds an approximate 70
    per cent controlling interest; Caribbean Utilities on Grand Cayman,
    Cayman Islands, in which Fortis holds an approximate 57 per cent
    controlling interest; and wholly owned Fortis Turks and Caicos.
    Caribbean Utilities had an April 30 fiscal year end whereby, up to and
    including the third quarter of 2008, Caribbean Utilities' financial
    statements were consolidated in the financial statements of Fortis on a
    two-month lag basis.  Caribbean Utilities has changed its fiscal year
    end to December 31 which will result in the Corporation consolidating
    five months of financial results of Caribbean Utilities during the
    fourth quarter of 2008.  Going forward, this will eliminate the
    previous two-month lag in consolidating Caribbean Utilities' financial
    results.
(5) Includes the operations of non-regulated generation assets in Belize,
    Ontario, central Newfoundland, British Columbia and upper New York
    State, with a combined generating capacity of 195 MW, mainly
    hydroelectric.
(6) Includes 19 hotels with more than 3,500 rooms in eight Canadian
    provinces and approximately 2.8 million square feet of commercial real
    estate primarily in Atlantic Canada.
(7) Includes Fortis net corporate expenses and, from May 17, 2007, the net
    expenses of non-regulated Terasen Inc. ("Terasen") corporate-related
    activities and the financial results of Terasen's 30 per cent ownership
    interest in CustomerWorks Limited Partnership ("CWLP") and of Terasen's
    non-regulated wholly owned subsidiary Terasen Energy Services Inc.
    ("TES").
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