HispanicBusiness

Favourable

--  The same factors discussed above for the quarter

Unfavourable

--  Lower average consumption by residential and industrial customers in    Ontario, primarily during the first quarter of 2012, reflecting more    moderate temperatures and weak economic conditions in the region                Factors Contributing to Quarterly and Annual                              Revenue Variances

Favourable

--  The overall 1.8% and 0.6% increase in electricity sales for the quarter    and year, respectively, for the reasons discussed above--  An increase in the basic component of customer rates at Maritime    Electric, effective March 1, 2012, associated with the higher flow    through and recovery of energy supply costs--  The accrual of cumulative return earned on FortisOntario's capital    investment in smart meters, of which approximately $0.5 million related    to prior years--  The flow through in customer electricity rates of higher energy supply    costs at FortisOntario--  Increased base customer electricity rates at FortisOntario             Factors Contributing to Quarterly Earnings Variance

Favourable

--  Lower effective income taxes at Maritime Electric, primarily due to    lower Part VI.1 taxes--  The accrual of cumulative return earned on FortisOntario's capital    investment in smart meters, of which approximately $0.5 million related    to prior years--  Increased operating expenses at Maritime Electric in the fourth quarter    of 2011 associated with retirement costs--  Lower operating expenses at FortisOntario in the fourth quarter of 2012,    largely due to the timing of certain expenses during 2012              Factors Contributing to Annual Earnings Variance

Favourable

--  Lower effective income taxes at Maritime Electric, primarily due to    lower Part VI.1 taxes--  The accrual of cumulative return earned on FortisOntario's capital    investment in smart meters, as discussed above for the quarter--  Higher earnings contribution by FortisOntario's operations in Cornwall,    due to an increase in base customer electricity rates--  Net cost savings at FortisOntario in 2012 associated with the exercising    of the Company's option to purchase all of the electricity distribution    assets previously leased under an operating lease agreement with the    City of Port Colborne

REGULATED ELECTRIC UTILITIES - CARIBBEAN (1)

----------------------------------------------------------------------------Financial Highlights (Unaudited)                                Quarter                  AnnualPeriods Ended December 31      2012   2011 Variance    2012   2011 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Average US:CDN Exchange Rate (2)                           0.99   1.02    (0.03)   1.00   0.99     0.01Electricity Sales (GWh)         181    174        7     728    918     (190)Revenue ($ millions)             71     71        -     273    305      (32)Earnings ($ millions)             3      4       (1)     19     20       (1)--------------------------------------------------------------------------------------------------------------------------------------------------------(1)  Includes Caribbean Utilities on Grand Cayman, Cayman Islands, in which     Fortis holds an approximate 60% controlling ownership interest; three     wholly owned utilities in the Turks and Caicos Islands, comprised of     FortisTCI Limited, Atlantic Equipment & Power (Turks and Caicos) Ltd.     and Turks and Caicos Utilities Limited, acquired in August 2012,     (collectively "Fortis Turks and Caicos"); and the financial results of     the Corporation's approximate 70% controlling ownership interest in     Belize Electricity up to June 20, 2011. On June 20, 2011, the     Government of Belize expropriated the Corporation's investment in     Belize Electricity. As a result of no longer controlling the operations     of the utility, Fortis discontinued the consolidation method of     accounting for Belize Electricity, effective June 20, 2011. For further     information, refer to the "Business Risk Management" section of the     MD&A for three and nine months ended September 30, 2012.(2)  The reporting currency of Caribbean Utilities and Fortis Turks and     Caicos is the US dollar. The reporting currency of Belize Electricity     was the Belizean dollar, which is pegged to the US dollar at     BZ$2.00=US$1.00.        Factors Contributing to Quarterly Electricity Sales Variance