Mr. Karl Smith reports

FORTIS INC. ANNOUNCES INCREASE IN BOUGHT DEAL FINANCING TO$600,000,000

Due to strong investor demand, Fortis Inc. has agreed to increase the total size of its previously announced bought-deal offering of cumulative redeemable fixed-rate reset first preference shares, Series M, from $300-million to $600-million. The offering is being made pursuant to an agreement with a syndicate of underwriters led by Scotiabank and RBC Capital Markets, which have agreed to purchase 24 million Series M first preference shares at a price of $25 per share.

The offering will result in gross proceeds to the corporation of $600-million. There will be no overallotment option on the offering. All other terms of the offering are as set forth in the press release relating to the offering issued by Fortis earlier on Sept. 3, 2014.

The net proceeds of the offering will be used to repay a portion of the amounts borrowed by Fortis under its acquisition credit facility in connection with the acquisition of UNS Energy Corp. completed on Aug. 15, 2014.

We seek Safe Harbor.