HispanicBusiness

REGULATED GAS UTILITIES - CANADIAN

FORTISBC ENERGY COMPANIES (1)

----------------------------------------------------------------------------Financial Highlights (Unaudited)                               Quarter                   AnnualPeriods Ended December 31    2012   2011  Variance    2012   2011  Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Gas Volumes (petajoules)       60     63        (3)    199    203        (4)Revenue ($ millions)          422    476       (54)  1,426  1,566      (140)Earnings ($ millions)          49     51        (2)    138    137         1--------------------------------------------------------------------------------------------------------------------------------------------------------(1)  Includes FortisBC Energy Inc. ("FEI"), FortisBC Energy (Vancouver     Island) Inc. ("FEVI") and FortisBC Energy (Whistler) Inc. ("FEWI")                Factors Contributing to Quarterly and Annual                            Gas Volumes Variances

Unfavourable

--  Lower average gas consumption by residential and commercial customers,    driven by overall warmer temperatures

Favourable

--  Higher gas transportation volumes to industrial customers, due to    certain customers switching to natural gas from alternative sources of    fuel as a result of low natural gas prices

With the implementation of the Customer Care Enhancement Project on January 1, 2012, the FortisBC Energy companies changed their definition of a customer. As a result of this change, the FortisBC Energy companies reduced their combined customer count by approximately 18,000, as at January 1, 2012. As at December 31, 2012, the total number of customers served by the FortisBC Energy companies was approximately 945,000.

The FortisBC Energy companies earn approximately the same margin regardless of whether a customer contracts for the purchase and delivery of natural gas or only for the delivery of natural gas. As a result of the operation of regulator-approved deferral mechanisms, changes in consumption levels and the commodity cost of natural gas from those forecast to set residential and commercial customer gas rates do not materially affect earnings.

Seasonality has a material impact on the earnings of the FortisBC Energy companies as a major portion of the gas distributed is used for space heating. Most of the annual earnings of the FortisBC Energy companies are realized in the first and fourth quarters.

                Factors Contributing to Quarterly and Annual                              Revenue Variances

Unfavourable

--  Lower commodity cost of natural gas charged to customers--  Lower average gas consumption by residential and commercial customers--  Lower-than-expected customer additions in 2012

Favourable

--  A net increase in the delivery component of customer rates, effective    January 1, 2012, mainly due to ongoing investment in energy    infrastructure and forecasted certain higher expenses recoverable from    customers as reflected in the 2012/2013 revenue requirements decision    received in April 2012--  Higher gas transportation volumes to industrial customers            Factors Contributing to Quarterly Earnings Variance

Unfavourable

--  The timing of certain operating and maintenance expenses during 2012--  Lower capitalized AFUDC, due to lower assets under construction period    over period--  Lower-than-expected customer additions in 2012