TSE:FTS Newfoundland Power Segmented Results of Operations FORTIS Inc. 2OO1 Annual Report 30 (1) Results of Maritime Electric include operations of FortisUS Energy.  (2) Represents inter-company sales, primarily 2001 energy sales from BECOL to Belize Electricity. sales was attributable to the first year of inclusion of  energy sales of BECOL and increased energy sales at Newfoundland Power and Maritime Electric offset by reduced energy sales at Canadian Niagara Power.  Revenue: Annual revenue increased 8.3 per cent to $628.3 million in 2001. The growth in revenue was mainly due to the acquisition of income producing properties by Fortis Properties as well as increased energy sales at most utilities.  The operational results of the Corporation are outlined below, segmented by company. Energy Sales: Energy sales were 4,667 GWh in 2001, a 2.5 per cent increase over energy sales of 4,555 GWh in 2000.  Residential energy sales increased 2.5 per cent, or 68 GWh, due mainly to growth in average use. Commercial energy  sales increased 2.4 per cent, or 44 GWh, over 2000 levels  Earnings : Earnings for 2001 were $28.9 million, an increase of $2.4 million over earnings of $26.5 million in 2000. Operating efficiencies, increased pole rental revenue, higher energy sales and a tax refund from Canada Customs and Revenue Agency (“CCRA”) contributed to the increase in 2001 earnings. due mainly to growth in the service sector of the economy and the continued development of the oil industry in the province.  Revenue: Revenue for 2001 was $359.3 million, an increase of 3.1 per cent over 2000 revenue. Growth in revenue was attributed to higher energy sales, increased pole rental revenue associated with the purchase of approximately 70,000 joint-use poles from Aliant Telecom and $1.7 million in interest received as part of an income tax refund. Expenses: Newfoundland Power purchases approximately 90 per cent of its energy requirements from Newfoundland and Labrador Hydro (“Newfoundland Hydro”). Purchased power expense in 2001 was $202.4 million, a $3.2 million or 1.6 per cent increase over 2000. This increase was primarily the result of higher energy sales. Other operating expenses in 2001 were $52.9 million, comparable to 2000. The Company maintained its operating cost per customer at $237 in 2001, its lowest level in a decade and down 24 per cent from 1992.  Revenue and Earnings Contributions Revenue Earnings ($ millions) 2001 2000 2001 2000 Newfoundland Power 359.3 348.4 28.9 26.5 Maritime Electric  (1) 97.5 94.5 6.1 (0.2) BECOL 16.1 - 6.7 - Belize Electricity 72.4 63.6 6.3 5.5 Canadian Niagara Power 20.3 18.4 5.3 5.1 Caribbean Utilities 4.2 3.1 4.2 3.1 Fortis Properties 73.9 52.1 6.1 3.0 Corporate 0.9 0.2 (13.8) (11.5) Inter-segment Eliminations  (2) (16.3) (0.1) - - Recurring Earnings 49.8 31.5 Fortis Trust-Discontinued Operations 0.2 0.5 Gain on Sale of Fortis Trust 0.5 - Interest on Income Tax Reassessment-CNP 0.3 - Gain on Sale of Centennial Building 2.6 - Future Income Tax Adjustment - 2.6 Gain on Certain Trademark Rights - 1.2 Gain on Sale of Surplus Land - 1.0 Total 628.3 580.2 53.4 36.8