TSE:FTS Program designed to ensure all energy sales are appropriately measured and billed to customers. Amortization expense was $7.8 million in 2001 compared to $6.8 million in 2000. The increase in amortization expense is a result of the Company’s ongoing capital initiatives which are required to keep pace with the significant growth in energy demand.  Regulation: Belize Electricity is regulated by a Public Utilities Commission (“PUC”) under the terms of an amendment to the 1992 Electricity Act and the Public Utilities Commission Act of 1999.  The PUC has approved by-laws that govern the setting of electricity rates and establish minimum quality of service standards. The quality of service standards will be monitored and formalized over a transition period from January 1, 2000 through June 30, 2005 and will become effective July 1, 2005.  Effective January 1, 2000, the Company and the PUC established a Cost of Power Rate Stabilization Account (“CPRSA”) designed to normalize changes in the price of electricity due to fluctuating fuel costs. The CPRSA will stabilize electricity rates for consumers while providing the Company with a mechanism which permits the recovery of its cost of electricity over time. At  December 31, 2001, the balance in this account  was $9.2 million owing from customers. The Company’s license to generate, transmit, distribute and supply electricity in Belize expires in 2015. Under the terms of the license, the Company has the right of first refusal on any subsequent license grant. If the license is not renewed for any reason, Belize Electricity will be entitled to receive, upon the transfer of its electric utility assets to a new operator, the greater of market value or 120 per cent of the net book value of these assets.  Outlook: Belize Electricity anticipates growth of electricity demand to remain high at approximately 8.0 per cent for 2002 due to economic growth and the Expenses: Operating expenses in 2001, excluding purchased power, were $14.8 million, a $1.5 million increase over 2000. The increase was largely due to higher pension and benefit costs. Revenue: Revenue for 2001 was $40.6 million compared to $36.9 million in 2000. The annual increase in revenue resulted from higher prices on energy sales into the United States for the first half of the year.  Energy Sales: Canadian Niagara Power sells all of its entitlement from its Rankine Generating Station. Energy sales were 631 GWh in 2001 compared to 638 GWh in 2000. Actual sales will vary slightly from year to year due to estimated line losses. Earnings : Earnings for 2001 were $11.1 million, a decrease of $1.3 million over earnings in 2000. Excluding  a $2.1 million gain on the sale of land in 2000 and a one- time gain associated with an income tax reassessment in 2001, earnings increased by $0.4 million or 3.9 per cent. Fortis owns a 50 per cent interest in Canadian Niagara Power with the remaining interest owned by National Grid USA. The Corporation’s 50 per cent interest is reported on a proportionate consolidation basis. The results reported below represent Canadian Niagara Power’s total operations.  The Company’s long-term strategy is to mitigate the impact of fuel price increases by diversifying its sources of energy supply. The Company has signed a Memorandum of Intent with Belize Sugar Industries to purchase excess energy produced by a proposed bagasse-fueled generation facility by the sugar company. The GDP of Belize is forecast to grow by approximately 4.5 per cent in 2002. This growth will be driven by increased activity in the construction, tourism and shrimp farming industries. Company’s continuing drive to increase industrial use and connect self-generators.  Canadian Niagara Power  FORTIS Inc. 2OO1 Annual Report 34