St. John's, NL – June 24, 2014
Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS) announces the following Executive Vice President ("EVP") appointments:
Karl Smith, President and Chief Executive Officer ("CEO"), FortisAlberta, will become EVP, Chief Financial Officer ("CFO"), Fortis, effective June 30, 2014;
John Walker, President and CEO, FortisBC, will become EVP, Western Canadian Operations, Fortis, effective August 1, 2014; and
Earl Ludlow, President and CEO, Newfoundland Power, will become EVP, Eastern Canadian and Caribbean Operations, Fortis, effective August 1, 2014.
"Karl, John and Earl, through their extensive utility experience and considerable leadership responsibilities throughout the Fortis Group, have each made a significant contribution to the value that Fortis has achieved for our shareholders and the reputation that Fortis has built for delivering quality service to customers," says Stan Marshall, President and CEO, Fortis.
"These executive appointments are a continuation of our management succession plan and will strengthen the ability of Fortis to achieve its vision to be a leader in the North American utility industry," says Barry Perry, who, as previously announced, will become President, Fortis, effective June 30, 2014, and President and CEO, Fortis, effective December 31, 2014, upon the retirement of Mr. Marshall.
Mr. Smith, CA, (B.Comm) has a career with the Fortis Group that spans more than 25 years. Mr. Smith was appointed President and CEO, FortisAlberta in 2007. Prior to then, he served as President and CEO, Newfoundland Power from 2004 through 2007 and as CFO, Fortis from 1999 through 2003. Mr. Smith currently serves as a Director on the Boards of FortisAlberta and CH Energy Group. He also serves as a Director on the Boards of the Western Energy Institute and the Canadian Electricity Association ("CEA") and is past Chair of CEA. Mr. Smith serves as Chair of the Board of Governors of Mount Royal University and is Chair of the Board of Junior Achievement of Southern Alberta.
Mr. Smith, as EVP, CFO, will provide financial leadership to the organization and has responsibility for the Corporation's finance, financial reporting and planning, audit, investor relations, tax and regulatory compliance, and mergers and acquisitions functions.
Mr. Walker (B.Sc., MBA) has a career with the Fortis Group that spans more than 30 years. He was appointed President and CEO, FortisBC Electric in 2005 and in 2010 he also became President and CEO, FortisBC Gas. Prior to his leadership positions at FortisBC, he served as President and CEO, Fortis Properties from 1997 through 2005. Mr. Walker currently serves as a Director on the Boards of FortisAlberta and FortisBC. He is also Chair of the Board of the Western Energy Institute, Vice-Chair of the Canadian Gas Association and a Director on the Board of CEA.
Mr. Walker, as EVP, Western Canadian Operations, assumes responsibility for FortisBC, FortisAlberta and non-regulated energy-related operations, including the Waneta Expansion hydroelectric generating facility ("Waneta Expansion") in British Columbia. The regulated operations in western Canada meet the energy needs of more than 1.6 million customers and, over the next five years, have a planned consolidated $4.3 billion in capital expenditures. The $900 million, 335‑megawatt Waneta Expansion is the largest capital project currently underway by the Corporation. Fortis owns 51% of the Waneta Expansion and will operate and maintain the facility when it comes online, which is expected in spring 2015. Mr. Walker will continue to lead liquefied natural gas ("LNG") infrastructure expansion opportunities, including the recently approved $400 million Tilbury LNG expansion facility, located on the Fraser River, in Delta, British Columbia.
Mr. Ludlow, P.Eng., (B.Eng, MBA) has a career with the Fortis Group that spans more than 34 years. He was appointed President and CEO of Newfoundland Power in 2007. Prior to then, he served as President and CEO, Fortis Properties from 2005 through 2007, and as Senior Vice President ("VP"), FortisBC and VP, Operations, FortisAlberta from 2004 through 2005. Mr. Ludlow currently serves as a Director on the Boards of Newfoundland Power, Maritime Electric, FortisOntario and Caribbean Utilities. He also serves as a Director on the Board of CEA. Well known for his outstanding community work, Mr. Ludlow is Honorary Lieutenant Colonel of the Royal Newfoundland Regiment First Battalion and also serves as Chair of the Board of Governors, Commissionaires, Newfoundland and Labrador. He is past Chair of the Dr. H. Bliss Murphy Cancer Care Foundation.
Mr. Ludlow, as EVP, Eastern Canadian and Caribbean Operations, assumes responsibility for Newfoundland Power, Maritime Electric, FortisOntario, Fortis Turks and Caicos and Caribbean Utilities. He also assumes a role supporting the internal utility operations groups. Eastern Canadian and Caribbean regulated utilities collectively serve approximately 440,000 customers and, over the next five years, have a planned consolidated $1 billion in capital expenditures.
Corporate oversight responsibility for U.S. regulated utilities and Fortis Properties will remain with the President and CEO, Fortis. UNS Energy and Central Hudson collectively serve more than 1 million customers and, over the next five years, have a planned consolidated $2.3 billion in capital expenditures. Fortis expects to close the UNS Energy acquisition by the end of 2014. Fortis Properties owns and operates 23 hotels, comprised of more than 4,400 rooms, in eight Canadian provinces and owns and operates approximately 2.7 million square feet of commercial office and retail space, primarily in Atlantic Canada.
"The Fortis approach to operating standalone businesses, with separate management teams and Boards in each jurisdiction, will continue," says Perry.
The Board of Directors of FortisAlberta announced today that Phonse Delaney, EVP, Operations, Engineering and Information Technology, FortisAlberta, will succeed Karl Smith as President and CEO of FortisAlberta, effective June 30, 2014. FortisBC and Newfoundland Power are expected to make announcements in the near future regarding the upcoming appointments to the President and CEO position at their respective companies.
"Stan and I congratulate Karl, John, Earl and Phonse on their new roles with the organization, and we look forward to their continuing contribution to the success of Fortis," says Perry.
"This is a very exciting time for Fortis," continues Perry. "Our consolidated capital program is expected to exceed $8 billion for the five-year period through 2018. Contributions from our U.S. utility acquisitions and our capital program, including the completion of the Waneta Expansion in 2015 and the Tilbury LNG facility expansion in 2016, will support continuing growth in earnings per common share," he concludes.
Fortis is the largest investor-owned distribution utility in Canada, with total assets of approximately $18.6 billion and fiscal 2013 revenue exceeding $4 billion. Its regulated utilities account for approximately 90% of total assets and serve approximately 2.5 million customers across Canada and in New York State and the Caribbean. Fortis owns non-regulated hydroelectric generation assets in Canada, Belize and Upstate New York. The Corporation's non-utility investment is comprised of hotels and commercial real estate in Canada.
For more information, visit www.fortisinc.com or www.sedar.com.
Fortis includes forward-looking information in this material within the meaning of applicable securities laws in Canada ("forward-looking information"). The purpose of the forward-looking information is to provide management's expectations regarding the Corporation's future growth, results of operations, performance, business prospects and opportunities, and it may not be appropriate for other purposes. All forward-looking information is given pursuant to the safe harbour provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward‑looking information, although not all forward-looking information contains these identifying words. The forward-looking information reflects management's current beliefs and is based on assumptions developed using information currently available to the Corporation's management. Although Fortis believes that the forward‑looking statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect the Corporation, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities and to the heading "Business Risk Management" in the Corporation's annual and quarterly Management Discussion and Analysis. Except as required by law, the Corporation undertakes no obligation to revise or update any forward‑looking information as a result of new information, future events or otherwise after the date hereof.
For more information, please contact:
Ms. Donna HynesManager, Investor & Public RelationsFortis Inc.Telephone: 709.737.2800