Mr. Barry Perry reports

WATAYNIKANEYAP POWER PROJECT FUNDING ANNOUNCED - FORTIS UPDATES FIVE-YEAR CAPITAL INVESTMENT PLAN

Fortis Inc.'s Wataynikaneyap power project has reached a major milestone with the arrangement of a financing framework among Wataynikaneyap Power, the government of Canada and the government of Ontario. The project will connect 17 remote first nation communities in Northwestern Ontario to the main electricity grid through the construction of 1,800 kilometres of transmission lines. Fortis's subsidiary, FortisOntario, will be responsible for construction management and operation of the transmission line. The estimated project construction cost is $1.6-billion.

Wataynikaneyap Power is a licensed transmission company, regulated by the Ontario Energy Board (OEB), equally owned by first nation communities (51 per cent), in partnership with Fortis (49 per cent).

Today's announcement supports the corporation's growth strategy and will increase its five-year capital investment plan by approximately $600-million to $15.1-billion through 2022. Rate base will grow accordingly to reach approximately $33-billion by 2022, representing a 40-basis-point increase in the five-year compound annual growth rate to 5.4 per cent. The project will take approximately five years to complete and will contribute to Fortis's earnings and cash flow upon completion of each phase of the project.

"Utilities can play an important role in the social and economic development of first nations communities in our country," said Barry Perry, president and chief executive officer of Fortis. "Fortis is pleased to bring its expertise to the table in the construction and operation of 1,800 kilometres of transmission lines. Once complete, the lines will provide reliable electricity to the communities and help improve the lives of thousands of community members."

The announcement is the culmination of years of productive discussions among area chiefs to connect their communities to a reliable energy grid. FortisOntario was chosen as the partner through a competitive process in 2015.

"Fortis is proud to be part of the Wataynikaneyap power project," said Scott Hawkes, president and chief executive officer of FortisOntario. "Today's announcement is a milestone in what is Canada's largest first-nations-led infrastructure project to date."

Fortis utilities have completed many significant transmission projects throughout North America. Several of these projects have occurred in consultation with first nation communities, including the completion of an underwater transmission cable from Prince Edward Island to New Brunswick in 2017 by Maritime Electric, the corporation's utility on Prince Edward Island.

Wataynikaneyap Power will develop, own and operate approximately 1,800 kilometres of 230-kilovolt, 115-kilovolt and 44-kilovolt power lines in Northwestern Ontario in order to connect remote first nation communities to the provincial electricity grid. In addition to providing participating first nation communities ownership in the transmission line, the project provides socio-economic benefits, reduces environmental risk and lessens greenhouse gas emissions associated with diesel-fired generation currently used in remote locations.

"This project will redefine the relationships and the landscape of how business must be conducted with the first nations through creating a sustainable first nation equity position over all," said Margaret Kenequanash, chief executive officer of Wataynikaneyap Power. "This provides the foundation for the communities to participate meaningfully in the economic prosperity of this country. Now we need to get the line that brings light into the communities. These are exciting times!"

The initial phase of the project from Red Lake to Pikangikum is fully financed by the Canadian government and is expected to be complete by the end of 2018. The next two phases are subject to receipt of all necessary regulatory approvals, including the leave-to-construct approvals from the OEB, anticipated by early 2019. These phases are targeted to be completed by the end of 2020 and 2023, respectively.

The corporation's consolidated capital investment plan consists mostly of a diversified mix of highly executable, low-risk projects. Fortis is focused on executing the five-year capital expenditure program and securing further organic growth opportunities at its subsidiaries, which may be financed through debt raised at the utilities, cash from operations, common equity contributions from the dividend reinvestment plan and the recently announced at-the-market common equity program. Fortis expects the long-term sustainable growth in rate base to support continuing growth in earnings and dividends.

About Wataynikaneyap Power

Wataynikaneyap Power is a licensed transmission company, regulated by the Ontario Energy Board, equally owned by 22 first nations communities (51 per cent), in partnership with Fortis (49 per cent).

About Fortis Inc.

Fortis is a leader in the North American regulated electric and gas utility industry with 2017 revenue of $8.3-billion and total assets of approximately $48-billion. The corporation's 8,500 employees serve utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries.

We seek Safe Harbor.