Mr. Joseph Sukhnandan reports

FORTIS GENERATION SIMILKAMEEN LP PROVIDES UPDATE ON SIMILKAMEEN RIVER WATER STORAGE AND HYDROELECTRIC GENERATING FACILITY

Fortis Generation Similkameen LP, which is indirectly wholly owned by Fortis Inc., will not move forward with the proposed Similkameen River water management and hydroelectric project at this time.

The company made the decision based on the results of its most recent project feasibility studies.

"We believe that building a water storage hydroelectric facility on the Similkameen River would create many benefits for the area," said project manager Joseph Sukhnandan. "However, based on the results of our latest engineering and economic studies, we determined the project is not financially viable at this time."

The proposed 165-metre (541-foot) concrete facility was expected to have usable water storage and deliver between 45 to 65 megawatts of electrical capacity along with the associated water management benefits.

Various groups have investigated the feasibility of a water storage and hydroelectric facility in the area since the 1990s.

Fortis Generation Similkameen may re-evaluate the viability of the project in the future based on customer demand and market conditions.