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Factor Contributing to Electricity Sales Variance
Favourable
-- Higher average consumption, due to colder temperatures on Prince Edward Island ("PEI") and in Ontario, as well as an increase in the number of customers using electricity for home heating on PEIFactor Contributing to Revenue Variance
Favourable
-- Higher electricity sales, driven by Maritime Electric, combined with an increase in the basic component of customer rates at the utility, effective March 1, 2013
Factors Contributing to Earnings Variance
Unfavourable
-- Higher energy supply costs at Maritime Electric, largely associated with energy supply costs being expensed in the first quarter of 2013 related to Point Lepreau, which returned to service in the fourth quarter of 2012
Favourable
-- Electricity sales growth at Maritime Electric
REGULATED ELECTRIC UTILITIES - CARIBBEAN (1)
----------------------------------------------------------------------------Financial Highlights (Unaudited) Quarter Ended March 31 2013 2012 Variance--------------------------------------------------------------------------------------------------------------------------------------------------------Average US:CDN Exchange Rate (2) 1.01 1.00 0.01----------------------------------------------------------------------------Electricity Sales (GWh) 170 166 4Revenue ($ millions) 66 63 3Earnings ($ millions) 3 3 ---------------------------------------------------------------------------------------------------------------------------------------------------------(1) Comprised of Caribbean Utilities on Grand Cayman, Cayman Islands, in which Fortis holds an approximate 60% controlling interest; three small wholly owned utilities in the Turks and Caicos Islands, comprised of FortisTCI Limited ("FortisTCI"), Atlantic Equipment & Power (Turks and Caicos) Ltd. ("Atlantic") and Turks and Caicos Utilities Limited ("TCU"), acquired in August 2012, (collectively "Fortis Turks and Caicos")(2) The reporting currency of Caribbean Utilities and Fortis Turks and Caicos is the US dollar.Factor Contributing to Electricity Sales Variance
Favourable
-- Increased electricity sales at Fortis Turks and Caicos due to electricity sales of 5 GWh at TCU, which was acquired in August 2012, partially offset by lower average consumption by commercial customers at FortisTCI, mainly due to higher fuel costs and resulting energy conservation by customers
Factors Contributing to Revenue Variance
Favourable
-- Increased electricity sales at Fortis Turks and Caicos-- An increase in electricity rates for FortisTCI's large hotel customers, effective April 1, 2012-- The flow through in customer electricity rates of higher energy supply costs at Caribbean Utilities, due to an increase in the cost of fuel
Factors Contributing to Earnings Variance
Favourable
-- Decreased operating expenses at Caribbean Utilities, mainly due to lower employee-related costs and maintenance costs
Unfavourable
-- Overall higher depreciation expense, due to continued investment in energy infrastructure
