Prospectus excerpt:  This short form prospectus (the “Prospectus”) qualifies for distribution (the “Offering”) 10,000,000 Cumulative Redeemable Five-Year Fixed Rate Reset First Preference Shares, Series H (the “Series H 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 January 12, 2010 between Fortis and TD Securities Inc. (“TDSI”), Scotia Capital Inc. (“Scotia Capital”), RBC Dominion Securities Inc. (“RBCDS”), CIBCWorld Markets Inc. (“CIBCWM”), BMONesbitt Burns Inc. (“BMO Capital Markets”), National Bank Financial Inc. (“NB Financial”), HSBC Securities (Canada) Inc. (“HSBC Securities”), Beacon Securities Limited and Canaccord Financial Ltd. (collectively, the “Underwriters”). The Series H First Preference Shares will be issued and sold by Fortis to the Underwriters at the price of $25.00 (the “Offering Price”) per Series H First Preference Share. The Offering Price was determined by negotiation between the Corporation and the Underwriters.

The holders of Series H 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 to, but excluding, June 1, 2015 (the “Initial Fixed Rate Period”) at a rate of $1.0625 per share per annum payable in equal quarterly instalments of $0.2656 per share on the first day of March, June, September and December of each year. Assuming an issue date of January 26, 2010, the first dividend will be payable on June 1, 2010 in the amount of $0.3668 per Series H First Preference Share.