Wataynikaneyap Power Project Funding Announced - Fortis Updates Five-Year Capital Investment Plan

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - March 22, 2018) - Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS)(NYSE:FTS) today announced the Wataynikaneyap Power project has reached a major milestone with the announcement of a funding framework among Wataynikaneyap Power, the Government of Canada and the Government of Ontario. The project will connect 17 remote First Nations communities in Northwestern Ontario to the main electricity grid through the construction of 1,800 kilometres ("km") of transmission lines. Fortis subsidiary, FortisOntario, will be responsible for construction management and operation of the transmission line. The estimated project construction cost is $1.6 billion.

Wataynikaneyap Power is a licensed transmission company, regulated by the Ontario Energy Board ("OEB"), equally owned by First Nations communities (51%), in partnership with Fortis (49%).

Today's announcement supports the Corporation's growth strategy and will increase its five-year capital investment plan by approximately $600 million to $15.1 billion through 2022. Rate base will grow accordingly to reach approximately $33 billion by 2022, representing a 40-basis point increase in the five-year compound annual growth rate to 5.4%. The project will take approximately five years to complete and will contribute to Fortis earnings and cash flow upon completion of each phase of the project.

"Utilities can play an important role in the social and economic development of First Nations communities in our country," said Barry Perry, President and Chief Executive Officer, Fortis Inc. "Fortis is pleased to bring its expertise to the table in the construction and operation of 1,800 km of transmission lines. Once complete, the lines will provide reliable electricity to the communities and help improve the lives of thousands of community members."

The announcement is the culmination of years of productive discussions among area Chiefs to connect their communities to a reliable energy grid. FortisOntario was chosen as the partner through a competitive process in 2015.

"Fortis is proud to be part of the Wataynikaneyap Power Project," said Scott Hawkes, President and Chief Executive Officer, FortisOntario. "Today's announcement is a milestone in what is Canada's largest First Nations-led infrastructure project to date."

Fortis utilities have completed many significant transmission projects throughout North America. Several of these projects have occurred in consultation with First Nations communities, including the completion of an underwater transmission cable from Prince Edward Island ("PEI") to New Brunswick in 2017 by Maritime Electric, the Corporation's utility on PEI.