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    Fortis Alberta Collective Agreement

    “The team has been an important partner for us in negotiating complex, visible and sensitive collective agreements.” In addition, as of March 31, 2013, Belize Electricity owed approximately $6 million to Belize Electric Company Limited (“BECOL”) for energy purchases, of which $4 million was long overdue. In accordance with long-standing agreements, GOB guarantees the payment of Belize Electricity`s commitments to BECOL. With the exception of commitments of $68 million (December 31, 2012 – $67 million) outstanding as at March 31, 2013, the Company did not have off-balance sheet agreements such as transactions, agreements or contractual arrangements with unconsolidated enterprises, structured financial entities, special purpose entities or variable rate companies, that are sufficiently likely to provide liquidity or the availability of or capital resource requirements. Lawson Lundell LLP`s Labour, Labour and Human Rights Group has experience in provincial and federal labour law, in key areas such as labour relations, collective bargaining, occupational health and safety, unlawful dismissals and workplace fairness. Robert Sider is the point of contact in Vancouver. The Company has accepted changes to the Accounting Coding (“ASC”) Topic 210, Balance Sheet – Disclosures About Offsetting Assets and Liabilities, as described in Accounting Standards Updates (“ASU”) #2011-11 and 2013-01. Those amendments improve the transparency of the impact or potential effects of netting arrangements on the financial situation of an undertaking by increasing the level of information required of undertakings for such arrangements. The amended information is intended to help users understand the significant quantitative differences between U.S. GAAP balance sheets and International Accounting Standards (IFRS). AsU No 2013-01 limits the scope of new clearing obligations previously issued in ASU No 2011-11 to certain derivative instruments, reverse pensions and retirements, as well as to loan and securities lending agreements that are either offset in the balance sheet or subject to enforceable master-netting or similar arrangement. The above changes were applied retroactively and did not have a material impact on the company`s consolidated financial statements for the three months ended March 31, 2013. Labour Relations: The collective agreement between employees in certain professions in the field of administration and assistance to FortisBC energy companies and the Canadian Employment Union, Local 378, expired on March 31, 2012.

    In March 2013, a new three-year collective agreement expired on March 31, 2015. In May 2012, ch Energy Group and Fortis entered into a proposed settlement agreement with counsel for the plaintiff shareholders regarding several complaints that have named Fortis and other defendants filed or transferred to the Supreme Court of the State of New York, in New York County, as part of Fortis` proposed acquisition of CH Energy Group. In the complaints, it was generally alleged that the directors of CH Energy Group breached their fiduciary duties related to the proposed acquisition and that CH Energy Group, Fortis, Fortis, Fortisus Inc. .


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