Prospectus excerpt:  This short form prospectus (the “Prospectus”) qualifies for distribution (the “Offering”) 8,000,000 Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shares, Series G (the “Series G First Preference Shares”) of Fortis Inc. (“Fortis” or the “Corporation”) which are being offered and sold pursuant to the provisions of an underwriting agreement (the “Underwriting Agreement”) dated May 8, 2008 between Fortis and Scotia Capital Inc. (“Scotia Capital”), CIBC World Markets Inc. (“CIBCWM”), BMO Nesbitt Burns Inc. (“BMO Nesbitt Burns”), National Bank Financial Inc. (“NB Financial”), RBC Dominion Securities Inc. (“RBCDS”), TD Securities Inc. (“TD Securities”), Desjardins Securities Inc. and Beacon Securities Limited (collectively, the “Underwriters”). The Series G First Preference Shares will be issued and sold by Fortis to the Underwriters at the price of $25.00 (the “Offering Price”) per Series G First Preference Share. The Offering Price was determined by negotiation between the Corporation and the Underwriters.

The holders of Series G First Preference Shares will be entitled to fixed cumulative preferential cash dividends, if, as and when declared by the board of directors of the Corporation (the “Board of Directors”) for the initial period commencing on the date of original issue and ending on and including August 31, 2013 (the “Initial Fixed Rate Period”) at a rate of $1.3125 per share per annum payable in equal quarterly instalments of $0.3281 per share on the first day of March, June, September and December of each year. Assuming an issue date of May 23, 2008, the first dividend will be payable on September 1, 2008 in the amount of $0.3622 per Series G First Preference Share.