TSE:FTS Caribbean Utilities generates, transmits and distributes electricity to more than 19,500 customers on Grand Cayman, Cayman Islands. The Company  is considered one of the most reliable and efficient electric utilities in the Caribbean. The electricity system of Caribbean Utilities is comprised of 18 generating units and five major transformer substations.  The Company has an installed capacity of 115 MW and meets a peak load of 75.99 MW. Caribbean Utilities operates under a 25-year exclusive license renewable in 2011 with the Government of the Cayman Islands. The Company is entitled to earn  a 15 per cent rate of return on rate base under  the terms of the license.  The Class A Ordinary Shares and the 8% Cumulative Fixed-Term Class C, Series 2 Preference Shares of Caribbean Utilities are listed in US funds  on the Toronto Stock Exchange under the symbols CUP.U and CUP.PR.U, respectively. Fortis acquired a 20 per cent interest in Caribbean Utilities in March 2000. The investment  is a strong strategic fit with the operations of the Corporation’s utility companies. Fortis has a strong, successful relationship with management of Caribbean Utilities spanning more than a decade. By providing strategic input and advice in such areas as training, technology, operations and customer service, Fortis will provide additional value to Caribbean Utilities and its shareholders. This investment positions Fortis to further grow and strengthen its presence in the Caribbean region. Caribbean Utilities 23 FORTIS Inc. 2OO1 Annual Report To enhance service reliability, Caribbean Utilities completed its first-ever submarine cable laying operation in 2001.