Philip G. Hughes, President and Chief Executive Officer (left), and Barry V. Perry, Vice President, Finance and Chief Financial Officer, Newfoundland Power Inc. (right) Providing a high level of comfort and safe, reliable electricity at low cost is the basis of Newfoundland PowerGLYPH<213>s business. approximately $6 million. Through its subsidiaries, the Corporation now owns approximately 90 per cent of all distribution poles on the island portion of Newfoundland and Labrador. Despite the challenges posed in the first quarter of the year by a record breaking winter that brought with it more than 600 centimeters of snow, Newfoundland Power achieved its lowest operating cost per customer in a decade while reaching a record 90 per cent customer satisfaction rating. The Company made significant improvements in system reliability and implemented more value-added services for customers including a number of 24-hour electronic self-service options. Customer satisfaction has increased 27 per cent since 1996. Newfoundland Power successfully reduced the number and length of service interruptions by 20 per cent and 37 per cent, respectively, compared to 2000. Investments in electrical system upgrades, vegetation management and technology such as maintenance-free reclosers contributed to reliability improvements. By listening to customers and responding to their changing service expectations, the Company was able to implement a number of new, more convenient ways of doing business in 2001. Newfoundland Power launched an upgraded website featuring more on-line service options than ever before which enables customers to access data electronically 24 hours a day. From reviewing account history on-line and learning how to get the most Newfoundland Power operates an integrated generation, transmission and distribution system throughout the island portion of Newfoundland and Labrador. The Company serves approximately 220,000 customers, constituting 85 per cent of all electricity consumers on the Island and meets a peak demand of 1,001 MW.  Newfoundland Power has an installed generating capacity of 148 MW comprised of hydroelectric, diesel and gas turbine generation with the bulk, 95 MW, coming from hydroelectric facilities. The balance of energy required by the Company is purchased from Newfoundland and Labrador Hydro, a Crown corporation. In September, Newfoundland Power acquired 70,000 joint use distribution poles from Aliant Telecom in a $40 million transaction. The investment represents approxi- mately eight per cent growth in the Company’s rate base and will be completed over a five- year period, with 50 per cent of the transaction completed by year-end. An additional 32,000 non-joint use poles were purchased by a non- regulated subsidiary of Fortis Inc. for Operations Newfoundland Power FORTIS Inc. 2OO1 Annual Report 10