H. Stanley Marshall, President and Chief Executive Officer, Fortis Inc. (left) and Dr. Angus A. Bruneau, Chair of the Board, Fortis Inc. (right)  (“NB Power”) for equivalent service in New Brunswick. However, the new regulations permit Maritime Electric to partially recover increased operating costs. These regulations will significantly reduce Maritime Electric’s exposure to volatility in energy prices and will restore the Company’s rate of return to a level consistent with other well-run Canadian electric utilities. Maritime Electric will now be able to conduct necessary capital programs, particularly in the area of generation, that are important  to attract future investment to Prince Edward Island. Belize Electricity contributed $6.3 million to earnings of Fortis in 2001, 14.5 per cent higher than earnings of $5.5 million in the previous year. Energy sales increased 12 per cent year-over-year, driven mainly by growth in the commercial and industrial sectors as well as continuation of a Government Rural Electrification Program. In January, the Belize Public Utilities Commission extended Belize Electricity’s license to generate, transmit and supply electricity in Belize. The license, originally due to expire  in 2008, is now valid for a 15-year period effective  July 1, 2000 through June 30, 2015.  Approximately 2,600 customers of Belize Electricity were impacted by Hurricane Iris which struck southern Belize in October. The impact of the Category IV hurricane was severe but localized. Approximately  25 per cent of the Company’s distribution system within the region impacted by Hurricane Iris was damaged; however, no damage was sustained to Belize Electricity’s generation assets. Fortis donated approximately $40,000 to the Belize Red Cross to assist with the agency’s hurricane relief efforts. Other Fortis subsidiaries have had to deal with natural disasters on occasion and, at times like this, it is important to support customers and the communities served.  Fortis acquired a 95 per cent interest in BECOL in January 2001, thereby realizing a strategic objective to diversify geographically by expanding in Belize. BECOL owns and operates the Mollejon hydroelectric facility,  a 25-MW generating plant capable of delivering average annual energy of 80 gigawatt hours (“GWh”). It is the only commercial hydroelectric generating facility FORTIS Inc. 2OO1 Annual Report 3 (1) FortisUS Energy became a wholly owned subsidiary of Maritime Electric  on December 1, 2000. 100 200 300 400 500 600 Fortis Inc. Distribution of Investment $ millions $ Year 92 93 94 95 96 97 98 99 00 01 BECOL Caribbean Utilities FortisUS Energy  (1) Belize Electricity Canadian Niagara Power Non-Utility Maritime Electric Newfoundland Power