Mr. Stan Marshall reports

FORTIS INC. ACQUISITION OF UNS ENERGY CORPORATION APPROVED BY SHAREHOLDERS

The Fortis Inc. acquisition of UNS Energy Corp., announced in December, 2013, has been approved by UNS Energy shareholders, with approximately 97 per cent of shares cast voted in favour of the acquisition. At a special meeting of shareholders held in Tucson, Ariz., earlier today, UNS Energy shareholders approved the adoption of the merger agreement under which Fortis will acquire UNS Energy for $60.25 (U.S.) per common share in cash, for an aggregate purchase price of approximately $4.3-billion (U.S.), including the assumption of approximately $1.8-billion (U.S.) of debt on closing.

UNS Energy is a vertically integrated utility services holding company, headquartered in Tucson, Ariz., engaged through three subsidiaries in the regulated electric generation and energy delivery business, primarily in the state of Arizona, serving approximately 656,000 electricity and gas customers.

The closing of the acquisition of UNS Energy, which is expected to occur by the end of 2014, is subject to receipt of certain regulatory and government approvals, including approval by the Arizona Corporation Commission (ACC) and the U.S. Federal Energy Regulatory Commission. On Jan. 24, 2014, Fortis and UNS Energy filed a joint application with the ACC seeking approval of the acquisition. On Jan. 28, 2014, the ACC administrative law judge (ALJ) assigned to this matter issued a procedural order adopting the schedule to be followed, including the commencement of an ALJ hearing on June 16, 2014.

"The UNS Energy acquisition is expected to contribute to earnings-per-share growth in 2015 and future years. It is also expected to add $1.5-billion (U.S.) to our capital program between 2015 and 2018," said Stan Marshall, president and chief executive officer of Fortis. "We look forward to UNS Energy becoming part of the Fortis family," he concluded.

We seek Safe Harbor.