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(“NB Power”) for equivalent service in New Brunswick. However, the new regulations permit Maritime Electric to partially recover increased operating costs. These regulations will significantly reduce Maritime Electric’s exposure to volatility in energy prices and will restore the Company’s rate of return to a level consistent with other well-run Canadian electric utilities. Maritime Electric will now be able to conduct necessary capital programs, particularly in the area of generation, that are important to attract future investment to Prince Edward Island. 

Belize Electricity contributed $6.3 million to earnings of Fortis in 2001, 14.5 per cent higher than earnings of $5.5 million in the previous year. Energy sales increased 12 per cent year-over-year, driven mainly by growth in the commercial and industrial sectors as well as continuation of a Government Rural Electrification Program. In January, the Belize Public Utilities Commission extended Belize 

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(1) FortisUS Energy became a wholly owned subsidiary of Maritime Electric on December 1, 2000. 

Electricity’s license to generate, transmit and supply electricity in Belize. The license, originally due to expire in 2008, is now valid for a 15-year period effective July 1, 2000 through June 30, 2015. 

Approximately 2,600 customers of Belize Electricity were impacted by Hurricane Iris which struck southern Belize in October. The impact of the Category IV hurricane was severe but localized. Approximately 25 per cent of the Company’s distribution system within the region impacted by Hurricane Iris was damaged; however, no damage was sustained to Belize Electricity’s generation assets. Fortis donated approximately $40,000 to the Belize Red Cross to assist with the agency’s hurricane relief efforts. Other Fortis subsidiaries have had to deal with natural disasters on occasion and, at times like this, it is important to support customers and the communities served. 

Fortis acquired a 95 per cent interest in BECOL in January 2001, thereby realizing a strategic objective to diversify geographically by expanding in Belize. BECOL owns and operates the Mollejon hydroelectric facility, a 25-MW generating plant capable of delivering average annual energy of 80 gigawatt hours (“GWh”). It is the only commercial hydroelectric generating facility 

