Mr. Michael Allison reports

FORTISBC SELECTS CONTRACTOR FOR $400 MILLION TILBURY LIQUEFIED NATURAL GAS (LNG) FACILITY EXPANSION PROJECT

Fortis Inc.'s FortisBC Energy Inc. has selected Bechtel Canada Co. as the contractor for its Tilbury LNG (liquefied natural gas) facility expansion project in Delta, B.C.

The selection of Bechtel took place after a competitive procurement process. Bechtel brings global experience in the development of LNG facilities to the project. Project construction is expected to employ 150 skilled workers over two years and provide an estimated $4-million per year in taxes to various levels of government over time.

To meet increased market demand for liquefied natural gas, FortisBC is currently undertaking a $400-million expansion of its Tilbury LNG facility, in operation since 1971, which will add approximately 1.1 million gigajoules of LNG storage, as well as approximately 34,000 gigajoules of liquefaction capacity, per day.

As the operator of the only two LNG facilities on the West Coast (the Mt. Hayes facility near Ladysmith since 2011 and the Tilbury Island LNG facility in Delta since 1971), this expansion will better equip FortisBC to meet the growing LNG demands of British Columbia's transportation sector, remote communities, industrial customers and the marketplace.

Project construction is scheduled to begin in September, 2014, and is estimated to be completed in 2016.

We seek Safe Harbor.