Canadian Niagara Power operates the Rankine Generating Station at Niagara Falls, Ontario. 400 200 600 800 1000 Canadian Niagara Power Energy Sales GWh GWh Year 92 93 94 95 96 97 98 99 00 01 Other Fort Erie ——< oc - op | | potential model for future growth. A 33 per cent transfer tax that applies against all sale proceeds must be paid by a selling municipality.  Investing significantly in its customer billing, retail settlement, wholesale settlement and financial systems during 2001, the Company was one of only 22 utilities to certify to the OEB that it met all the requirements for opening of the Ontario electricity market to competition anticipated May 1, 2002. Canadian Niagara Power is assisting with the implementation of its integrated market-ready customer service and financial system at two other Ontario utilities: Bluewater Power and Westario Power. In December, the OEB approved the Company’s distribution rates and cost of power rates. After market opening, the electricity that Canadian Niagara Power supplies to its Fort Erie customers will come from the open market rather than from the Rankine Generating Station. The Company will sell all its generation to the wholesale markets. The OEB has also approved Canadian Niagara Power’s transmission revenue requirement which will come into effect on market opening and which will provide a 9.88 per cent return on transmission rate base. A significant capital investment in system improvements throughout the year contributed to increased quality and reliability of the transmission and distribution services. A new distribution station was  FORTIS Inc. 2OO1 Annual Report 21