Fortis Generation includes the operations of non-regulated generating assets in Canada, Belize and Upstate New York with a combined generating capacity of 103
megawatts (“MW”), 98 MW of which is hydroelectric generation.
In British Columbia the non-regulated generating asset is the 16-MW run-of-river Walden hydroelectric generating plant near Lillooet, which was acquired in May 2004 as part of the
assets of FortisBC. The plant sells its entire output to BC Hydro under a long-term contract.
In October 2010 Fortis entered into a partnership with Columbia Power Corporation and Columbia Basin Trust to construct a 335-MW hydroelectric generating facility
(the “Waneta Expansion”), at an estimated cost of approximately $900 million. The facility is sited near the Waneta Dam and powerhouse facilities on the Pend d’Oreille River,
south of Trail, British Columbia. Fortis owns a controlling 51 per cent interest in the Waneta Expansion and will operate and maintain the non-regulated investment when the
facility comes into service, which is expected in spring 2015. The Waneta Expansion will be included in the Canal Plant Agreement and will receive fixed energy and capacity
entitlements based upon long-term average water flows, thereby significantly reducing hydrologic risk associated with the project. The energy, approximately 630 gigawatt hours (“GWh”), (and
associated capacity required to deliver such energy) for the Waneta Expansion will be sold to BC Hydro under a long-term energy purchase agreement. The surplus capacity, equal to
234 MW on an average annual basis, is expected to be sold to FortisBC under a long-term capacity purchase agreement. For more details on the Waneta Expansion Project, visit www.columbiapower.org/wanetaexpansion.
In Ontario non-regulated operations include six small hydroelectric generating stations in eastern Ontario with a combined capacity of 8 MW and a 5-MW gas-powered cogeneration plant
in Cornwall. The electricity produced from these facilities is sold in Ontario under fixed-priced contracts
The hydroelectric generation operations in Belize are conducted under the Corporation’s indirect wholly owned subsidiary Belize Electric Company Limited (“BECOL”) under a franchise
agreement with the Government of Belize. BECOL owns and operates the 25-MW Mollejon, the 7-MW Chalillo and the 19-MW Vaca hydroelectric generating facilities
located on the Macal River, the largest such facilities in Belize, Central America. The run-of-river hydroelectric generating facility, which
is situated approximately five kilometres downstream from Mollejon, is the final phase of the three-phase hydroelectric development plan for the Macal River. BECOL sells its entire
output to Belize Electricity under 50-year power purchase agreements.
In Upstate New York the non-regulated generating assets are four hydroelectric generating stations located in Moose River, Philadelphia, Dolgeville and Diana. The plants have
a combined capacity of approximately 23 MW. The average annual 85 GWh of energy output of these modern facilities is sold at wholesale market rates.