HispanicBusiness

Favourable

--  Electricity sales of 6 GWh for the quarter and 8 GWh year to date at    Turks and Caicos Utilities Limited ("TCU"), which was acquired in August    2012--  Higher tourism activity in the Turks and Caicos Islands--  Growth in the number of customers, excluding the impact of customers    acquired with TCU          Factors Contributing to Annual Electricity Sales Variance

Unfavourable

--  The expropriation of Belize Electricity and the resulting discontinuance    of the consolidation method of accounting for the utility, effective    June 20, 2011. Excluding Belize Electricity, electricity sales increased    0.6% year over year.--  Higher rainfall and cooler temperatures experienced on Grand Cayman,    which decreased air conditioning load, combined with continued weak    economic conditions in the region

Favourable

--  The same factors discussed above for the quarter             Factors Contributing to Quarterly Revenue Variance

Unfavourable

--  Approximately $2 million of unfavourable foreign exchange associated    with the translation of US dollar-denominated revenue, due to the    weakening of the US dollar relative to the Canadian dollar quarter over    quarter--  The discontinuance of government subsidization of FortisTCI Limited's    ("FortisTCI's") South Caicos operations, effective April 1, 2012, in    accordance with a rate decision received in February 2012

Favourable

--  Increased electricity sales at FortisTCI--  The flow through in customer electricity rates of higher energy supply    costs at Caribbean Utilities, due to an increase in the cost of fuel    period over period, which increased revenue period over period--  An increase in electricity rates for FortisTCI's large hotel customers,    effective April 1, 2012, in accordance with a rate decision received in    February 2012--  An increase in base electricity rates at Caribbean Utilities, effective    June 1, 2012               Factors Contributing to Annual Revenue Variance

Unfavourable

--  The expropriation of Belize Electricity and the resulting discontinuance    of the consolidation method of accounting for the utility, effective    June 20, 2011, which decreased revenue by approximately $45 million year    over year--  The discontinuance of government subsidization of FortisTCI's South    Caicos operations, effective April 1, 2012, in accordance with a rate    decision received in February 2012--  Decreased electricity sales at Caribbean Utilities

Favourable

--  The same factors discussed above for the quarter--  Approximately $3 million of favourable foreign exchange associated with    the translation of US dollar-denominated revenue, due to the    strengthening of the US dollar relative to the Canadian dollar year over    year             Factors Contributing to Quarterly Earnings Variance

Unfavourable

--  Excluding foreign exchange impacts, higher depreciation expense, largely    at Caribbean Utilities, mainly due to investment in utility capital    assets

Favourable

--  Increased electricity sales at FortisTCI              Factors Contributing to Annual Earnings Variance

Unfavourable

--  Excluding foreign exchange impacts, overall higher depreciation expense,    and higher finance charges at FortisTCI, largely due to debt incurred to    finance the acquisition of TCU--  Decreased electricity sales at Caribbean Utilities