fortis inc

Contents1 One vision. One voice. One identity.

2 A 2010 snapshot

4 A message from the President

6 Real solutions for B.C.

16 Inspiring wiser energy habits

20 Rooted in B.C.

30 The future

32 Leadership Team

34 Board of Directors

Welcome to FortisBC.We’re ready to lead B.C. to the future of energy.

One vision. One voice. One identity.Together, the Fortis energy companies in British Columbia provide electricity,

natural gas, piped propane and alternative energy solutions. Delivering more

energy than any other utility in the province — approximately 21 per cent of the

total energy consumed in B.C. — the companies employ more than 2,000 people

and serve more than 1.1 million customers in 135 communities.

The back storyIn 2004, Fortis Inc., the largest investor-owned distribution utility in Canada,

acquired all the distribution, transmission and generation assets of the West

Kootenay Power and Light Company and renamed it FortisBC Inc. In 2007,

Fortis Inc. purchased Terasen Inc., which included the Terasen Gas group of

companies, from Houston-based Kinder Morgan Inc.

In July 2010, Terasen Inc. and FortisBC Inc. started sharing the same leadership

team. Then, on March 1, 2011, the Terasen group of companies began operating

under the FortisBC brand name. Today, the natural gas and electricity businesses

continue to operate as before, as separate legal entities, while sharing the

name FortisBC.

Combining the energy of two On the natural gas side, the business delivers natural gas, piped propane and

new energy solutions, such as geoexchange and district energy systems, to

approximately 940,000 customers in 125 B.C. communities. The electricity

business generates, transmits and distributes electricity to approximately 161,000

direct and indirect customers in the southern interior of B.C.

Both businesses are regulated utilities and indirect wholly owned subsidiaries of

Fortis Inc., which serves approximately 2,100,000 customers and has total assets

exceeding $12 billion. This successful Canadian-owned and operated parent

company provides the strong direction upon which FortisBC’s commitment to

customers is built.

Whether delivering natural gas, electricity or innovative energy solutions, we are

dedicated to fulfilling customers’ energy needs and helping the province meet

its environmental and energy goals for the future. We do so with one vision, one

voice and one identity — as FortisBC.

This Corporate Report looks back at the 2010

achievements, challenges and progress of the

Fortis energy companies in British Columbia.

1FortisBC 2010 Corporate Report

A 2010 snapshotFinancial highlights (in millions of dollars)

FortisBC Holdings Inc.1

(Natural gas and piped propane) 2010 2009�

Net earnings $130.3 $117.9

Gross revenues $1,555.0 $1,668.2

Operating expenses $228.9 $210.9

Capital programs before CIAC2 $253.3 $241.8

FortisBC Inc. (Electricity) 2010 2009�

Net earnings $41.8 $36.2

Gross revenues $256.9 $244.1

Operating expenses $37.9 $37.8

Capital programs before CIAC2 $150.23 $117.33

Performance

FortisBC Holdings Inc.

(Natural gas and piped propane) 2010 2009�

Peak day demand (TJ) 1,421 1,234

Gas volumes (TJ) 193,775 207,229

Customer satisfaction index 80% 80%

FortisBC Inc. (Electricity) 2010 2009�

Generating capacity (MW) 223 223

Peak demand each year (MW) 707 714

Energy sales (GWh)

(Unregulated) Walden 36 29

(Regulated) 3,046 3,157

Customer satisfaction index 88% 86%

1 Consolidated results of Terasen Inc., Terasen Gas Inc., Terasen Gas (Vancouver Island) Inc. and Terasen Gas (Whistler) Inc. As of March 1, 2011, the companies changed their names to FortisBC Holdings Inc., FortisBC Energy Inc., FortisBC Energy (Vancouver Island) Inc., and FortisBC Energy (Whistler) Inc. respectively.

2 Contribution in Aid of Construction (CIAC)

3 2010 capital expenditures of $150.2 million less Customer Contribution in Aid of Construction (“CIAC”) of $7.4 million to obtain $142.8 million net capital expenditures. 2009 capital expenditures of $117.3 million less CIAC of $7.1 million to obtain $110.2 million net capital expenditures. Walden is included in both 2010 and 2009 figures in the amount of $0.25 million and $0.1 million respectively.

600,000

700,000

650,000

800,000

750,000

900,000

850,000

1,000,000

950,000

2009 2010200820072006

FortisBC natural gas customers (includes piped propane customers)

2009 2010200820072006

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

FortisBC electricity customers

Direct Indirect

2 FortisBC 2010 Corporate Report

Area of operations

Natural gas service area*

Electricity service area

Combined service area

What’s in a name?Today “FortisBC” is the brand identity for several companies, including natural gas, electricity and

alternative energy businesses in British Columbia.

Before As of March 1, 2011

Terasen Inc. FortisBC Holdings Inc.

Terasen Gas Inc. FortisBC Energy Inc.

Terasen Gas (Vancouver Island) Inc. FortisBC Energy (Vancouver Island) Inc.

Terasen Gas (Whistler) Inc. FortisBC Energy (Whistler) Inc.

Terasen Energy Services Inc. FortisBC Alternative Energy Services Inc.

FortisBC Inc. FortisBC Inc.

Fortis Inc. Fortis Inc.

*Includes piped propane


A message from the PresidentBringing Fortis Inc.’s energy operations in B.C.

together under common leadership in 2010, and

now under one brand identity, FortisBC, has been

a significant undertaking. But it’s well worth it.

Combining our strengths and resources creates new

opportunities to better serve our customers and

provide integrated energy solutions for communities.

At our core, FortisBC delivers natural gas and

electricity, safely and reliably, to over 1.1 million

customers in 135 communities. Our commitment to

ensuring customers have the energy they need for

their homes and businesses, whether during peak

demand periods today or for increased requirements

in the future, has never been stronger.

With one vision, we raised our voice in local energy policy discussions with business and political leaders

amidst some of the most aggressive climate change legislation on the continent. We shared what we are doing

for British Columbians as an energy solutions leader with collective expertise and history.

In 2010, through thoughtful decision-making and customer focus, our earnings grew and our strong customer

satisfaction results were maintained. The announcement of two new customer contact centres in Prince

George and Burnaby, and the creation of approximately 300 future jobs, will help us maintain and improve

solid customer service in the years to come.

Since 2007, more than $1 billion was invested in B.C. by the companies, bringing our asset base to $6.4 billion.

With $403.5 million of that in the past 12 months, 2010 was a standout year. Some of our key capital projects

included ongoing construction of the Okanagan Transmission Reinforcement project, construction of the

new Benvoulin substation in Kelowna, ongoing work for the Upgrade and Life Extension program at our

hydroelectric generation facilities, ongoing replacement of two natural gas pipeline crossings under the

Fraser River, and continued progress on the liquefied natural gas storage facility at Vancouver Island’s

Mt. Hayes. With a full range of energy resources, including electricity, natural gas and renewable energies

such as biomethane, geoexchange and district energy systems, we are truly leading the way.

At a grassroots level, our 21-year-old PowerSense program offers concrete ways to conserve electricity and

save money, and has done well to create awareness and educate our electricity customers. We continue to

John Walker is

President and CEO of

FortisBC Inc., FortisBC

Holdings Inc., and

FortisBC Energy Inc.

He’s worked with

the Fortis group of

companies since

1983, where he

began his career

with Newfoundland

Power Inc. He is a

member of several

boards including

FortisAlberta Inc.,

the Western Energy

Institute, the

Canadian Electricity

Association and

the Sauder Faculty

Advisory Board of

the University of

British Columbia.


pursue the aggressive goals of our natural gas

Energy Efficiency and Conservation initiative,

aiming to eliminate more than 775,000 tonnes of

greenhouse gas emissions and save a total of 15.5

million gigajoules of natural gas — enough to fuel

approximately 155,000 homes for one year.

At FortisBC, we’re proud of our contributions to the

economic and social well-being of the communities

where we live and work. We support a broad range

of non-profit organizations and initiatives — the

causes our employees are most passionate

about — through corporate and employee donations,

sponsorships and hands-on volunteer work.

We’re also proud of the relationships we have with

First Nations. With social, economic and cultural

interests top-of-mind, we’re working cooperatively

and effectively together on a number of initiatives.

And it’s with much commitment that we continue to build long-lasting relationships with our customers,

employees and the communities we serve.

I’m excited about the opportunities that lie ahead of us. Yet we wouldn’t have such a bright future without the

dedication of the more than 2,000 hard-working FortisBC employees.

I want to thank our Board of Directors for their insightful governance, in particular to those who stepped

down in June 2010: Walter Gray, William Daley, John McCallum and Randy Jespersen. Also, I’d like to

recognize Randy and his 14 years of inspiring leadership with Terasen. From expanding natural gas

infrastructure in the province, to integrating new energy solutions, Randy created a vision of the future and

left a remarkable legacy for us all.

As we strengthen our unique position as a leading energy provider, we will deliver the energy

British Columbians need today, and work on new solutions for tomorrow. Above all, we will continue our

unwavering focus on customer service. At FortisBC, we have seen the future — and we are ready.

John Walker,

President and CEO

FortisBC

“We will deliver

the energy

British Columbians

need today and work

on new solutions for

tomorrow. Above all,

we will continue our

unwavering focus on

customer service.”

John Walker


We’re rebuilding 11 of our 15 hydroelectric generating stations, including the Corra Linn station, to increase efficiency and improve overall reliability of our service in the Kootenays.


Real solutions for B.C. There is much work to be done to ensure

British Columbia meets its energy goals in

the coming decades. FortisBC is creating real

energy solutions for today and tomorrow.

As trusted energy experts, we deliver on-the-ground

results that benefit our customers, the communities we

serve and ultimately the province as a whole.

We offer a full range of integrated solutions — including

traditional energies such as electricity, natural gas

and piped propane — and alternative solutions like

biomethane, geoexchange and district energy systems.

We are unique in that we are the only Canadian

regulated utilities to do so.


The new Bentley electricity substation near Oliver is part of the Okanagan Reinforcement project.

Sound investmentIn 2010, the FortisBC companies made substantial progress on key electricity

and natural gas infrastructure projects. Such infrastructure will help serve the

evolving and ever-growing demand for energy.

A significant expansion British Columbia’s electricity industry is in the midst of considerable change.

In order to meet the future needs of our customers, major investments in

infrastructure are needed now.

In 2010, our parent company, Fortis Inc., signed a partnership agreement to

construct the Waneta Expansion Hydroelectric project, south of Trail. Fortis Inc.

owns 51 per cent, while Columbia Basin Trust and Columbia Power Corporation

own the remaining 49 per cent.

The estimated $900-million project will see the construction of a

335-megawatt (MW) powerhouse immediately downstream of the existing

Waneta Dam on the Pend d’Oreille River. Once completed, FortisBC will purchase

an average 234 MW of the generated capacity. Such an amount will mean

significant year-round, dependable capacity for FortisBC and long-term, reliable

electricity for customers.

Additionally, a 10-kilometre transmission line will be built alongside the existing

high voltage line from Waneta to FortisBC’s Selkirk substation. Excavated rock

will be quarried within seven kilometres of the site and will be available for

future highway and other infrastructure projects in the area.

A unique opportunity, the Waneta Expansion project will create large amounts

of clean hydroelectric energy without building a new dam, supporting a primary

goal of the B.C. government’s Energy Plan and Clean Energy Act — to make the

province energy self-sufficient.


Experienced and dedicated, FortisBC Journeyman Tradesman Mechanic, Ron Sherbinin (far left) and Powerline Technicians, Stephen Kingsfield and Darren Belanger, work in Oliver B.C.

Energizing upgradesIn the past decade, B.C.’s Okanagan has experienced major growth. FortisBC

has invested hundreds of millions of dollars upgrading infrastructure to meet

increased demands on our electrical system. The largest upgrade to date is the

Okanagan Transmission Reinforcement project.

An upgraded line between Vaseux Lake and Penticton was energized in

November 2010 to help meet customers’ electricity needs during winter.

Additionally, a 230-kilovolt line was completed along the same route and will be

energized this year.

Construction on the new Bentley substation started last year, while three

additional substation upgrades are ongoing in the south Okanagan. In December

2010, the $18-million Benvoulin substation project was completed and energized

to meet growing demand in central Kelowna. The $13-million upgrade to the

Duck Lake substation, which serves BC Hydro customers, was also finished.

These types of incremental revenue sources help offset FortisBC’s electricity

customer rates.


Going to great lengths and depthsAs part of our ongoing commitment to the safe delivery of energy, we are

upgrading our natural gas pipeline crossing underneath the Fraser River between

Delta and Richmond. The work is designed to improve pipeline seismic stability,

address river erosion concerns and improve the reliability of energy delivery

for more than 220,000 customers in Richmond, North and West Vancouver, and

parts of Burnaby.

Reflecting our dedication to the environment, we chose a horizontal drilling

method — a method with the lowest environmental and property impact.

Kilometres of pipe:

2.7together will

reach as high as

Mt. Baker from

base to summit

Football fields:

2the new twin pipes

can be bent without

kinking across

their width

Number of cranes:

14needed to lift one

pipe off the ground

Total weight:

255tonnes of pipe

running beneath

the Fraser River

Kilograms of force:

41,000to move each pipe through the

Fraser riverbed, similar to 25 tow trucks

pulling together

The Crossing facts

No small undertaking, we lifted tonnes of steel pipe while adhering to strict safety standards.


We are customer-driven at FortisBC. Being

responsive to our customers, striving to improve our

service and building upon the relationships we’ve

already established — that’s what we consider real

customer service.

In 2010, we announced the establishment of two

new B.C.-based contact centres for our natural

gas customers — bringing approximately 300 new

jobs to B.C. Along with the economic benefits

to communities and employment for British

Columbians, the new centres will have the added

benefit of updated customer information and

billing systems. These systems will help expand

communication and service offerings to better meet

customer expectations.

As for the facilities themselves, we are renovating a

building in Prince George’s city centre for 100 new

employees, while another 200 will work in a leased

space in Burnaby. The contact centres will be fully

operational with our employees and natural gas

customers interacting on January 1, 2012.

Creating sustainable workplaces The new contact centres in Burnaby and

Prince George will follow LEED (Leadership in

Energy & Environmental Design) guidelines and

construction principles that use recycled and

recyclable materials, and existing elements such

as doors and walls to reduce landfill. Building

materials include locally grown wood such as

Douglas fir and beetle-killed pine.

The Prince George facility’s $4-million

restoration is inspired by the City’s storied

role in B.C.’s forest industry, and celebrates

the idea of growth and revitalization in the

downtown core.

FortisBC’s new contact and billing operations centre in Burnaby, B.C. Photo courtesy Stuart Olson Dominion Construction Ltd., Bob Matheson, photographer.

“We are thrilled to

welcome another

[FortisBC] facility

to our city and look

forward to the many

benefits their new

office will bring to the

community, including

job opportunities.”

Mayor of Burnaby

Derek Corrigan

It’s about real customer service


Flexible and future-friendlyWe develop and design district energy systems — flexible energy solutions that

will help British Columbia adapt and evolve for its future. Communities have the

most to gain as these systems can help meet their climate action commitments.

In 2010, the natural gas business and the City of Kelowna agreed in principle to

develop two unique district energy systems. The $22- and $16-million FortisBC-

owned and operated systems are planned to use waste heat and water from the

City’s wastewater plant, Sun-Rype Products Ltd. and Tolko Industries Ltd.

Before building the systems over the next decade, we will work with Kelowna to

negotiate definitive agreements. With successful conclusion of these agreements,

and engineering work, we’ll then seek approval from the B.C. Utilities

Commission. Together, the district energy systems could potentially save about

16,300 tonnes of CO2 per year — equivalent to removing approximately 3,500 cars

from the road annually — according to the City’s 2010 pre-feasibility study.

Driving down emissions, one fleet at a time With more than 11 million natural gas vehicles (NGVs) worldwide, natural gas is

a proven low carbon intensity fuel choice for transportation. Compared to diesel,

natural gas may reduce greenhouse gas (GHG) emissions by 20 to 30 per cent.

Given that approximately 40 per cent of emissions come from B.C.’s

transportation sector and the provincial government has mandated GHG

reductions, natural gas is a logical fuel choice, particularly for return-to-base

fleets like municipal, transit, refuse and heavy-hauling vehicles. Currently,

natural gas is also about 40 per cent less expensive than diesel, so costs per

kilometre are reduced.

In 2010, we collaborated with Westport Innovations Inc. and Vedder Transport

Ltd., with our incentive funding contribution towards Vedder’s purchase of fifty

liquefied natural gas (LNG) trucks. Powered by Westport engine technology, the

new trucks will be fuelled at a planned FortisBC LNG station in Abbotsford.

The relationships we’re forging today with the transportation industry will serve

us well in preserving beautiful B.C. for generations to come.

“Fifty trucks is a significant order for LNG

vehicles in Western Canada. It further

demonstrates that natural gas is rapidly

becoming a mainstream fuel solution for the

trucking industry in Canada.”

Clark Quintin, President of Westport’s

Heavy Duty division


Waste: a new frontierThese days, the world of energy is evolving, with new frontiers to explore. Biogas,

as a renewable energy source, is one of these new frontiers.

Biogas is produced from decomposing waste at farms, wastewater facilities and

landfills. Once collected, it can be upgraded to pipeline-quality biomethane

and distributed safely and efficiently as a renewable fuel. It can also help in the

reduction of emissions that come from waste decomposition.

In 2010, we established agreements for two biogas projects — the first of their

kind in Canada to produce pipeline-quality biomethane for distribution in an

existing utility network. The first project, in collaboration with the Columbia

Shuswap Regional District, will recover gas from Salmon Arm’s existing landfill.

In Abbotsford, we connected with Catalyst Power Inc. to collect biogas from

agricultural waste through on-farm anaerobic digestion. Upgraded biomethane,

or “renewable natural gas” as it’s often called, has been flowing through our

distribution systems since September 2010.

The company also received approval for a new biogas program for residential

customers — the first of its kind in North America. It’s estimated that in the first

full year of the program about 210,000 gigajoules of biomethane will be available

for purchase, which translates to an estimated greenhouse gas savings of about

11,000 tonnes.

“The landfill biogas project was the result of

a creative agreement that will extract both

energy and revenue from our locally produced

waste. The conversion will cut down local air

pollution and help B.C. reduce its contribution to

global emissions.”

George Abbott, MLA, Shuswap


Making the gradeIn B.C.’s K-12 education system, there are 60 school districts and over 1,800

facilities. One way each school district can make a significant contribution

towards their carbon-neutral goals is to improve the energy efficiency of

their buildings.

In fact, according to the B.C. Ministry of Education’s October 2010 Green Schools

report, the largest source of school district greenhouse gas emissions comes from

school mechanical systems.

One energy solution, geoexchange, is helping to make the grade. Capturing

heat from the earth, water or waste heat sources, geoexchange systems

transfer heat to where it’s needed most, and work in both new construction

and retrofit projects.

Last year, we signed a deal with School District 23 Central Okanagan to retrofit

and operate a $650,000 geoexchange system at Helen Gorman Elementary School

in West Kelowna.

“We are excited about this innovative and sustainable energy project and look

forward to making significant progress in reducing our carbon footprint,” said

Hugh Gloster, Central Okanagan School District Superintendent. “With Helen

Gorman Elementary School as an example, we hope many other schools will be

encouraged to follow our lead to become as energy efficient as possible.”

At the heartFor us at FortisBC, safety is at the heart of everything we do. Committed to the

safety of our employees, our customers and the general public, we work with

regulators, industry peers, first responders and other partners to promote safety

practices and performance.

The Cooperative Safety Program, for example, is a partnership of 12 utilities,

municipalities and organizations that share a commitment to public and

workplace safety across the southern interior of B.C. Spearheaded by FortisBC

since 2005, the goal is to improve public awareness of potential electrical and

natural gas hazards.

As a Regional Energy Solutions Manager, Brent

Hunt helps shape the future of energy. He offers

innovative solutions that help communities and

organizations cut energy costs and emissions.

“At Helen Gorman Elementary in West Kelowna,

students will learn about the energy their school

will save with the new geoexchange heating

system that we helped put in place.”

Brent


In 2010, we continued to work closely with organizations such as the BC Oil and

Gas Commission, WorkSafeBC, BC Fire Services, the BC Safety Authority and

BC Common Ground Alliance, as well as BC One Call.

High-angle safetyHanging in a safety harness above the Kootenay River, or wedging into a

manhole on a public street is not as uncommon as might be expected. In fact,

some FortisBC electricity employees train specifically for these scenarios.

The company’s electricity business has a number of sites that include confined

spaces and high, overhead areas where employees use preventive safety practices

and regulated fall protection. However, if someone were to fall or get into a tight

position, FortisBC’s industrial high-angle rescue team would come to the rescue.

The team has been in place since the late 1990s and specializes in overhead and

confined space rescue.

Teaching safety in classrooms Because safety applies to everyone, we’re proud of a number of safety-oriented

initiatives for kids. In our natural gas safety program for children, 31 employees

volunteered to be guest speakers in schools located within our service areas.

Between September and December 2010, more than 3,700 children in 29 schools

learned about natural gas and how to conserve it, as well as important safety

information. Employees also visited fire departments and community fairs to

educate children, emergency personnel and the general public on electrical

and natural gas safety. From community centres and worksites to our kids’

classrooms, safety is at the heart of everything we do.

Chad Shkuratoff, Journeyman Tradesman Plumber (electricity), is one member of our high-angle rescue team.

Public Safety Manager Michelle Petrusevich

is passionate about safety — especially when it

comes to safety awareness and education for

children in the communities we serve.

“The real magic happens when we visit

elementary schools and there’s a connection

with the kids. What they learn benefits them,

their families and the community as a whole.”

Michelle


FortisBC 2010 Corporate Report16

Inspiring wiser energy habitsInspiring a culture of energy efficiency and

conservation isn’t just a pipe dream, it’s real.

At FortisBC, we help customers think about the energy

they use and how they use it. We want to inspire

people to use energy wisely. Doing so can make a

difference in energy bills for a household, a business,

a community and ultimately, the environment.

It may seem unusual for an energy company to

encourage customers to use less of its product. But our

energy efficiency and conservation efforts do just that.

It’s all part of how we’re helping to shape the future of

energy in British Columbia.


Homes of learningMany of us have grown up in a world that takes energy and natural resources

for granted. We’ve used as much as we want, when we want and how we want.

Energy efficiency and conservation education is key to changing this — not only

for customers and various industries, but also for the future of energy in B.C.

Taking a leading role, FortisBC worked with the Canadian Home Builders

Association Central Okanagan to sponsor a Home for Learning in Kelowna. In

seeking to educate builders, developers, realtors and others in the industry, the

home was designed as a model of efficiency. As a result of the energy efficient

natural gas and electric appliances, energy saving measures, and combination

solar and natural gas heating technologies, the home consumes about 50 per cent

less energy than the national average for buildings of its size.

Built by students from Okanagan College, in conjunction with Distinctive

Developments, the Home for Learning provided students with valuable hands-on

training and credit toward their education. The home was eventually sold, with

partial proceeds going to Okanagan College bursaries and scholarships.

With increased awareness and education in mind, FortisBC hosted a virtual

home in Whistler at the annual Union of British Columbia Municipalities (UBCM)

convention. The home spanned 900-square feet in the heart of Village Square

and included life-sized rooms filled with energy efficiency features, including

ENERGY STAR® appliances, natural gas heating and hot water — even a natural

gas vehicle in the garage. All the while, employees shared our vision for a

sound energy future with UBCM delegates, Whistler residents and visitors to

the resort area.

Scoring with energy conservation Our Energy Efficiency and Conservation group teamed up with hockey fans

around the province as proud supporters of BC Hockey League games.

Calling on fans to become “energy champions” they promoted audience

participation through interactive activities that encouraged natural

gas conservation.

In 2010, we hosted a virtual home with life-sized rooms in the heart of Whistler’s Village Square. All part of our showcase for the annual UBCM convention, our tent featured energy saving technologies and appliances. It attracted delegates, visitors and residents alike.


One of the most cost effective ways to meet our

customers’ future needs is to help them use energy

as efficiently as possible — to achieve more with less.

We have helped customers manage their energy

use, reduce energy costs and lower greenhouse

gas emissions. How did we do it? Through various

energy efficiency initiatives, rebates and incentive

programs for businesses and residential customers.

Our natural gas Energy Efficiency and Conservation

initiative is designed to eliminate more than

775,000 tonnes of greenhouse gas emissions and

save a total of 15.5 million gigajoules of natural gas.

That’s sufficient fuel for approximately 155,000

homes for one year. Celebrating more than 20

years, FortisBC’s PowerSense program has helped

customers conserve more than 380 million kilowatt

hours of electricity since 1989 — enough to power

nearly 30,000 homes each year.

Everyday savings for everyday chores FortisBC’s PowerSense team launched a popular

laundry campaign in partnership with our natural

gas side. The campaign encouraged electricity

customers and employees to practice energy-

efficient laundry habits and offered free clotheslines

and rebates on ENERGY STAR® washer and dryers.

More than 10,000 clotheslines were distributed to

households throughout FortisBC’s electricity service

area, building on the same campaign that was

piloted in 2009.

Together, PowerSense and our Energy Efficiency

and Conservation group launched a program

specifically designed for low-income customers.

Qualified households received energy saving kits

that included compact fluorescent lights, water-

flow aerators, weatherstripping and window

insulation. PowerSense also worked with five First

Nations communities to provide these kits, as

well as training staff to install the various energy

saving devices.

Every day we provide energy solutions to more

than one million homes and businesses across

B.C. And with each solution we strive to inspire

energy-wise habits.

Helping customers get more with less

FortisBC customer Sirena Bird and her son dry their laundry the natural way — with the help of a clothesline from PowerSense. Her family won a new ENERGY STAR washer/dryer as part of our laundry campaign photo contest.


Rooted in B.C. It takes just one person to make a difference

for the environment, our communities and our

customers. Yet it takes the commitment of

many — those with vision and passion — to make

sustainable improvements in the quality of life

where we live and work.

FortisBC is committed to our province in the most

fundamental of ways. As B.C.-based companies

delivering energy to British Columbians, our history

can be traced back more than 100 years.

Dynamic, innovative and growing, our success

contributes to B.C.’s energy, environment and economic

prosperity. In essence, we are rooted in B.C.

Nelson, B.C.


Our natural gas and electric infrastructure serves

B.C. communities, big and small. Traversing

mountains and rivers, crossing agricultural land

reserves and First Nations’ traditional territories,

our systems criss-cross the province. This is why

we think creatively, work co-operatively and are

results-oriented in our environmental efforts.

Before beginning new infrastructure projects, we

conduct comprehensive environmental reviews

and consult with the public, stakeholders and First

Nations. All capital projects include customized

environmental management plans. Still, it’s not so

much the plans and practices we’re proud of, but the

commitment and strength of our actions.

All creatures great and smallIn 2010, FortisBC completed the electric

transmission line component of the Okanagan

Transmission Reinforcement project. We developed

the project’s environmental management plan

in consultation with Nature Trust, Environment

Canada and the Osoyoos and Penticton Indian

Bands, to set the course of action for FortisBC and

our contractors through all stages of the project.

Our plan took into account the unique needs of the

local ecosystem. When we learned that California

bighorn sheep historically birth near our right-of-

way, we took the right steps to protect them. With

expert advice, we first identified their lambing

regions, and then created a 500-metre buffer zone

between the construction and each birth site. Once

birthing season began, we stopped construction

activities altogether, including helicopter flight.

As good corporate citizens, our business

is founded upon the importance of

balancing our economic objectives with our

environmental responsibilities.

Respect, protect and preserve

Buffer zone in metres:

500protecting a

California bighorn

sheep lambing area

In 2010, we donated used utility poles to the Creston Valley Wildlife Management Society to build a bat house. Looking up are Richard Dalon and Marc-André Beaucher from the Society and James Komar, Powerline Technician, from FortisBC.


Historically, our company has taken serious steps

to reduce our greenhouse gas emissions and

has consistently met or exceeded the accepted

environmental regulations and standards of the

time. In 2000 for example, FortisBC Energy Inc.

committed to a six per cent reduction of its 1990

level greenhouse gas benchmark — a level that’s

been sustained for over a decade.

Our green senseFortisBC recognizes that sound environmental

practices make good business sense. Yet our

environmental commitment extends beyond

business. You could say it’s in our roots — and those

community-based, environmental organizations

that are important to employees. From hands-on

volunteer efforts, to corporate fiscal support, we

understand the value of ‘green sense.’ In 2010, some

of the organizations we helped included: Pacific

Parklands Foundation, Osoyoos Desert Society,

Creston Valley Wildlife Management, Naramata’s

Community Garden and Pacific Streamkeeper

groups throughout B.C.

Protecting the nature of things From cleaning shorelines and repairing bridges, to

powering down and helping fish along the way, we

applaud the efforts of our employees as they help to

protect the nature of things in B.C.

In partnership with Friends of the South Slopes,

a not-for-profit Kelowna group dedicated to

sustainable park trails, FortisBC volunteers

rebuilt three deteriorated bridge decks.

Electricity employees also powered down for

Earth Hour — challenging customers to do the

same — while natural gas employees spent Earth

Day marking storm drains with bright yellow fish-

shaped markers, to help protect local waterways.

We support and celebrate our employees’ efforts

to help the environment. Leaving fish and wildlife

habitats safe and sound is an important part of the

way we do business, every day.

Serious steps, real reductions

Chelsea Knowles, Accounts Payable Support

Clerk, started volunteering at age 10 and since

joining us in 2008, has participated in the Great

Canadian Shoreline Cleanup. This year she

helped haul 75 kilograms of trash from Quibble

Creek in Surrey’s Bear Creek Park.

“I played here as a kid, so I wanted to help make

it cleaner for the next generation.”

Chelsea

Kilograms of trash:

75removed from just

one of the shorelines

our employees

cleaned up


Children in Cranbrook have a newly renovated

place to play, thanks to the efforts of our employees,

members of the Cranbrook Early Childhood

Development Committee and City of Cranbrook

staff, who joined forces to refurbish the Tot Park at

the local RecPlex.

The updated playground allows children with

disabilities — be they physical, developmental or

sensory — to play side-by-side with their able-bodied

peers, fostering acceptance and awareness.

Another project was Lilli House, a Courtenay

transition home for women and children seeking

a safe place from abuse. With paintbrushes and

shovels in hand, volunteers did light renovations

and landscaping for the comfort of residents.

“We are so grateful for the contribution of funding

and volunteer labour,” said Heather Ney, Executive

Director of the Comox Valley Transition Society.

“These resources have enabled us to address some of

the major maintenance and replacement projects

needed at Lilli House. This is a huge gift to the

women and children we serve.”

These efforts were all part of our natural gas side’s

third annual Community Giving Day in which

employees volunteered their time for three projects

of their choice. Each project also received a $30,000

corporate donation.

Other ways of supporting non-profit organizations

are through the companies’ donation matching

and top-up opportunities available to all

employees throughout the year. Yearly fundraising

campaigns benefit the United Way and Warm

Hearts, a charitable foundation created and

managed by employees of our natural gas business.

A history of giving We’re proud of our history of service to B.C. communities. We see giving back as an important part

of our efforts to create a sustainable energy future — by fostering the health and well-being of the

communities where we live and work.

Elated volunteers help renovate a Cranbrook playground.

The tools to give backJimmy Yip, Data

Integrity Manager,

believes in teamwork.

If he’s not pedalling

the Big Bike for the

Heart and Stroke

Foundation, the avid

hockey player can

be found building

a Canstruction®

sculpture with

co-workers to benefit

local food banks.

“When we work

together, have fun

and do that little

extra to help out, we

can make it better

for many others

in our community.”

Jimmy


Last spring, Bryan Dixon, a FortisBC Journeyman Tradesman Mechanic, faced

a welcomed problem as a volunteer coach with the Trail Girls Senior Softball

League. Because so many wanted to play, a second team was formed — a team that

needed more equipment. But how to pay for it?

Bryan, who coaches his two daughters, applied for funding through FortisBC’s

employee donations program, which supports the active involvement of

employees as coaches, instructors and other leadership roles.

The much-needed funding helped purchase new helmets, uniforms and back-

catching equipment that’s essential for playing safely.

A home run for community investment

All smiles, members of the Trail Girls Senior Softball League are happy about new equipment.

Bryan Dixon, Journeyman Tradesman Mechanic,

is a volunteer coach for his daughters’ softball

teams. With corporate funding from our

employee donations program, Bryan was able to

outfit a second team of avid players. Thankful

for the funding, Bryan said it was in sync with

his experience working with FortisBC.

“FortisBC treats employees well, and values time

with family. If I want to accomplish something

with my teams, they support me in doing that.”

Bryan


British Columbia proudly hosted the world at the

Vancouver 2010 Olympic and Paralympic Winter

Games. And we provided one of its iconic symbols,

the cauldron, which remains in Vancouver as a

lasting legacy for generations to come.

The 10-metre-high steel and glass cauldron burned

bright during the Games, and was relit on other

occasions including a celebration honouring Jack

Poole, Founding Chairman, VANOC Board of

Directors, and events remembering Canadian troops

and veterans on Remembrance Day.

Not only did we help contribute a legacy for the

Games, but we brought spirit — the spirit of FortisBC

employees who volunteered in many capacities

at the Games. From proud torchbearers to those

protecting the flame and tending ice.

Gary Bradbury, a System Operations Technician

(natural gas), supervised a crew of 22 off-ice officials

at 15 Olympic hockey games. Off-ice officials

included timekeepers, scorekeepers, computer

operators and spotters, whose job was to make sure

fans always knew the right score and stats. Gary also

volunteered during the sledge hockey events. When

he wasn’t at Canada Hockey Place, he was part of a

larger team that ensured natural gas flowed safely

at other Olympic sites, including the cauldron.

At FortisBC, we’re always ready to be a good

neighbour in communities throughout

British Columbia.

Gary Bradbury,

System Operations

Technician and

volunteer, pauses

before one of 15

Olympic hockey

games he helped

supervise at Canada

Hockey Place.

The steel and glass iconic cauldron burned brightly during the Games, fuelled by natural gas. Photo by Matthew Mills.

Leadership and legacies


The FortisBC companies employ more than

2,000 British Columbians, a number that will

grow to 2,300 by 2012 with the completion

of our two new B.C.-based contact centres in

Prince George and Burnaby.

Part of our strategy to attract, retain and motivate

employees is through skill-building, continuous

learning and leadership development. In 2010, we

hosted the Technology Open House and Career Fair

for students, guests and employees alike. With the

B.C. Institute of Technology and the Association

of Applied Science Technologists and Technicians

on hand, employees shared their natural gas

knowledge and experiences with those wanting to

learn more about technology careers.

Opening industry doors When a new industry emerges where does the

workforce come from? One unique training

program provided an answer.

The Residential Energy and Efficiency Works

training program, or REnEW, supports the growing

energy efficiency and retrofit industry by creating a

much-needed pool of skilled workers. Developed and

launched in 2010, the program ran concurrently in

Kelowna and Vancouver, teaching people who faced

barriers to employment the fundamentals of energy

efficient technologies and retrofitting.

Selected from at-risk applicants by the John Howard

Society and Vancouver ACCESS BladeRunners,

graduates gained skills and knowledge about draft-

proofing, insulation upgrades and other energy

conservation techniques, including related topics

like construction site work safety.

“These individuals pursued the program because

they wanted to improve their job prospects as

well as their lives,” said Shelley Cook, Executive

Director of the John Howard Society for Central and

South Okanagan. “The change we’ve seen in this

first group has been truly inspirational — they’re

determined to succeed and they now have the tools

to get them to where they want to go in their career.”

Funded by the FortisBC companies, and BC Hydro,

REnEW aims to build on the success of these first

sessions and expand to other B.C. communities

where energy efficiency programs already exist.

The City of Kelowna acknowledged the innovative

program with a Community Spirit Award.

Exceptional people: creative solutions

A REnEW graduate puts new skills to work.

More than:

2,000employees are

meeting the energy

challenges of today

and rethinking the

solutions of tomorrow


Actions speakAs leaders in developing mutually beneficial relationships, FortisBC is proud

to work with B.C.’s First Nations and Aboriginal communities. Some of our

infrastructure is located on or tied to First Nations and Aboriginal land. We

work in partnership and consultation with First Nations — in a manner that

respects and helps protect the social, economic and cultural interests of

their communities.

A true leaderShe has a well-established history of working closely with First Nations and

Aboriginal communities to create new career and business opportunities. Yet

Lee Beran, Recruiting Manager (natural gas), was still surprised to hear her

colleagues had nominated her for the Board of Directors of the Industry Council

for Aboriginal Business — a post she assumed officially in late 2010.

“Lee took the initiative to learn about and meet the leadership in the

Aboriginal training and education sector, and she is widely accepted in the

Aboriginal community,” explained Bruce Falstead, Aboriginal Relations

Manager (natural gas).

“Thanks to efforts like Lee’s, when our company speaks to employment matters,

we are seen as credible — not just in British Columbia but across Canada.”

In 2010, we continued to develop innovative partnership opportunities with First

Nations. For instance, our Mt. Hayes natural gas storage project on Vancouver

Island provided both jobs and economic benefits to the Stz’uminus (Chemainus)

First Nations.

“The natural gas project on Hayes Mountain has been a boon to the Stz’uminus,

who were lead contractors for such aspects as roads and forest clearing, and the

Nation will be looking to further ties with the company,” said Chief John Elliot,

Stz’uminus First Nation.

Lee Beran, Recruiting Manager, serves on the

Board of Directors for the Industry Council for

Aboriginal Business.

“I feel lucky to have the opportunity to promote

industry leadership in Aboriginal corporate

relations. For me, it’s all about building strong

relationships that support continued growth

and success.”

Lee


“Terasen Gas [now FortisBC] has been a long-time supporter of the

Aboriginal Tourism Association of B.C., especially during our showcase at

the 2010 Winter Games and we’re delighted that our partnership with them

continues to grow.”

Keith Henry, Chief Executive Officer, AtBC

Our approach to building relationships with First

Nations and Aboriginal communities includes

recognizing and respecting the uniqueness and

diversity of their cultural heritage.

In February 2010, a collaboration between FortisBC’s

natural gas business, the Pan Pacific Hotel in

Vancouver and the Aboriginal Tourism Association

of BC (AtBC) created a stunning 16-day showcase of

Aboriginal art, culture and performances, free to

residents and visitors during the 2010 Olympic and

Paralympic Winter Games.

“Our relationship with AtBC began in a quiet way

with an emphasis on building goodwill and a better

understanding of each other,” said Doug Stout, Vice

President, Energy Solutions and External Relations.

“It has definitely evolved over time to reflect our

social and environmental sustainability values, and

those of the Fortis family.”

As part of our natural gas side’s Community Giving

Day, more than 100 employee volunteers and

families built an elders’ shelter and landscape art at

Stanley Park’s Klahowya Village in September. The

shelter is now available year-round and is part of the

showcase of Aboriginal arts and culture that draws

visitors from around the world.

FortisBC is committed to preserving and building

upon the steadfast alliances we’ve created

with First Nations and Aboriginal communities

in B.C.

Steadfast alliances

A 16-day showcase of Aboriginal art and culture delighted residents and visitors just before the 2010 Olympic and Paralympic Games in Vancouver. Here, Nisga’a Ts’amiks drummers participate in a welcoming ceremony at the Pan Pacific Hotel.


These young Naramata Elementary School students are excited about their new community garden. We supported the Naramata Cooperative Garden Society’s project through our community investment program.


The future Coming together under one leadership was

about combining our strengths and resources.

It made good sense for our customers.

Looking ahead in 2011 and beyond...

We’re readY:

- to help the province become energy self-sufficient

- to expand our core natural gas and electricity business

- to develop new and innovative sources of energy

- to continue our unwavering commitment to

customers and communities

As we develop and implement our integrated energy

solutions we will help empower B.C. to meet its

environmental and energy goals in the years to come.

With experience, innovation and dedication, we are

bringing our vision to life and leading the future of

energy in British Columbia.


Leadership Team

Left to right: Douglas Stout, Tom Loski, Scott Thomson, Doyle Sam, Cynthia Des Brisay, John Walker, Michele Leeners, Robert Samels, David Bennett, Michael Mulcahy, Don Debienne, Roger Dall’Antonia, Dwain Bell.


dwain Bell Vice President, Operations (Natural Gas), FortisBC.

Dwain became Vice President, Distribution, in 2005. He has more

than 37 years of experience in the natural gas business throughout

B.C. and Alberta, including senior roles with FortisBC and

its predecessor.

david Bennett Vice President & General Counsel, FortisBC.

David practiced law in Vancouver until 2001 and then moved to

London, England. He returned to B.C. in 2003 and was in private

practice until joining FortisBC Inc. in 2004.

roger dall’antonia Vice President, Finance & CFO (Natural Gas),

FortisBC. Roger rejoined the company in 2007, bringing 15 years of

corporate finance and treasury experience. He has considerable

experience in senior financial roles, primarily in the energy

industry, including positions with Terasen, Westcoast Energy and

Versacold Income Fund.

don debienne Vice President, Resource Planning (Electricity), FortisBC.

Don has over 30 years of operational experience in the electrical

utility industry, the last 20 of which have been with FortisBC

and its predecessor companies. His prior experience includes 11

years with SaskPower in various operational, technical and senior

managerial roles.

Cynthia des Brisay Vice President, Energy Supply & Resource

Development, FortisBC. Cynthia has been with the company since

1999. She has more than 28 years of experience in the energy

industry, including oil, gas and independent power generation

development in Canada and New Zealand.

Michele Leeners Vice President, Finance & CFO (Electricity), FortisBC.

Michele is a chartered accountant with over 21 years of experience

in finance, treasury and accounting. Prior to joining FortisBC, she

held management roles for the Canadian division of a U.S. oil and

gas company.

Tom Loski Vice President, Customer Service, FortisBC. Tom has over 29

years of experience with FortisBC Energy Inc. and its predecessor.

Prior to his current role, Tom was responsible for the development

and implementation of corporate regulatory strategy as the Chief

Regulatory Officer for Terasen Gas and FortisBC Inc.

Michael Mulcahy Executive Vice President, Customer & Corporate

Services, FortisBC. Michael began his career with the Fortis group of

companies with Maritime Electric in 1993. Prior to joining FortisBC,

Michael was Vice President of Customer and Corporate Services for

Newfoundland Power.

doyle Sam Vice President, Engineering & Operations (Electricity),

FortisBC. Doyle has worked in the electrical utility industry since

1989 and for FortisBC and its predecessors since 2003. He has

operated in a variety of engineering, planning, operations and

senior management roles throughout his career.

robert Samels Vice President, Business Planning, FortisBC. Bob has

worked with FortisBC and its predecessor companies since

1991. He spent 12 years in public practice with KPMG and

PricewaterhouseCoopers prior to holding various senior roles at

FortisBC Energy Inc.

douglas Stout Vice President, Energy Solutions & External Relations,

FortisBC. Doug joined the company in 2001 as Vice President, Gas

Supply and Transmission. He has held senior roles with Belkorp

Industries Inc. and Husky Energy Inc. and has served as Director for

Sultran Ltd., Pacific Coast Terminals and Hillsborough Resources.

He is a Director for the Northwest Gas Association.

Scott Thomson Executive Vice President, Finance, Regulatory & Energy

Supply, & CFO, FortisBC. Scott joined the company in 1999 following

13 years in accounting and management consulting roles with Ernst

& Young. His last role was as Vice President, Regulatory Affairs &

CFO for Terasen.

John Walker President & CEO, FortisBC. John is President and CEO of

FortisBC Inc., FortisBC Holdings Inc., and FortisBC Energy Inc. and

serves on the Board of Directors of FortisAlberta Inc. He has worked

with the Fortis group of companies since 1983, where he began his

career with Newfoundland Power Inc. He also serves on the Boards

of Directors of the Canadian Electricity Association, Western

Energy Institute and Sauder Faculty Advisory Board, University of

British Columbia.


H. Stanley Marshall

Mr. Marshall is the President and CEO of Fortis Inc., serving in this role since 1995. He serves on the boards

of several Fortis companies, is a Director of Toromont Industries Ltd. and is Chair of the FortisBC Inc.,

FortisBC Holdings Inc. and FortisBC Energy Inc. Boards.

Harold G. Calla

Mr. Calla is Chair of the First Nations Financial Management Board. He is a member of the Squamish Nation

and has served two terms on its Council. He is on the Boards of Directors of Canada Mortgage and Housing

Corporation and Nicola Valley Institute of Technology, and is a past Director of Partnerships BC.

Beth d. Campbell

Ms. Campbell currently holds the title of Governor, and is immediate Past Chair for Best Western

International Inc. She serves as a Director on the Board and as Vice Chair of the Member Marketing Advisory

Committee for Best Western International Inc. She is the past Vice Chair of Tourism British Columbia and is

Owner of the Best Western Inn at Penticton.

Brenda eaton

Ms. Eaton is the Chair of BC Housing and is on the Board of Directors of Transelec, Powertech and several

not-for-profit organizations. She has previously served as Deputy Minister to the Premier and prior to that as

Deputy Minister in Finance and Treasury Board, Energy Mines and Petroleum Resources and Social Services.

Ida J. Goodreau

Ms. Goodreau is Adjunct Professor, Sauder School of Business, and Director, Strategy Centre for Healthcare

Management, University of British Columbia. Previously, she was President and CEO of LifeLabs Medical

Laboratory Services, and President and CEO of the Vancouver Coastal Health Authority. She is on the Board of

Directors of Fortis Inc. and is a member of the Boards of the Vancouver Foundation, Genome B.C., Streetohome

Foundation and Canada West Foundation.

roger M. Mayer

Mr. Mayer was elected to the Regional District of the Okanagan Similkameen in 1987. He served as Chair

of the Regional District of Okanagan Similkameen from 1996 to 2001 and as Chair of the Regional Hospital

District from 1996 to 2000 and again from 2002 to 2004. He presently serves as the Chair of the Okanagan

Panel of the Provincial Government’s Agricultural Land Commission.

Board of Directors


Harry McWatters

Mr. McWatters is the President of Vintage Consulting Group Inc. and is the founding Chairman of the

B.C. Wine Institute, a Director of the B.C. Progress Board, and founding Chairman of the B.C. Hospitality

Foundation. He has served on the Board of Directors of FortisBC Inc. since 2005, served as Chairman from

2006 to 2010, and has served on the Fortis Inc. Board since 2007.

Barry V. Perry

Mr. Perry is the Vice President, Finance and Chief Financial Officer of Fortis Inc. Prior to his current role at

Fortis, he held the position of Vice President, Finance and Chief Financial Officer of Newfoundland Power Inc.

He serves on the boards of several Fortis companies.

Linda S. Petch

Ms. Petch is Principal of Linda S. Petch Governance Services, which provides governance and accountability

framework services to boards. She is also a member of the Board of Governors of RBC Mutual Funds and RBC

Private Pools, and the Board of Directors of the Provincial Health Services Authority.

david r. Podmore

Mr. Podmore is the Chairman and CEO of Concert Properties Ltd., a national real estate enterprise he

co-founded in 1989. He is the Chair of the B.C. Pavilion Corporation and the Chair of the British Columbia

Institute of Technology Foundation. He is also a Director of LifeLabs Inc.

Karl W. Smith

Mr. Smith joined the Board January 1, 2011. He is President and Chief Executive Office of FortisAlberta

Inc., a position he has held since 2007. Prior to this role, he was President and Chief Executive Officer of

Newfoundland Power Inc. He also serves on the Board of Directors of Belize Electricity Limited and Caribbean

Utilities Company Ltd.

John C. Walker

Mr. Walker is President and CEO of FortisBC Inc., Fortis BC Holdings Inc., and FortisBC Energy Inc. and serves

on the Board of Directors of FortisAlberta Inc. He has worked with the Fortis group of companies since 1983,

where he began his career with Newfoundland Power Inc. He also serves on the Boards of Directors of the

Canadian Electricity Association, Western Energy Institute and Sauder Faculty Advisory Board, University of

British Columbia.


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