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Tucson Electric Power Company (TEP) Rate Case Progresses; Reaches Settlement Agreement on Revenue Requirement

T.FTS

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Aug. 16, 2016) - Tucson Electric Power Company ("TEP"), a subsidiary of Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS), today reached a settlement agreement with several parties regarding TEP's revenue requirement in its rate case proceeding pending before the Arizona Corporation Commission ("ACC"). The agreement is available on the ACC's website at azcc.gov. TEP also filed Form 8K with the United States Securities and Exchange Commission respecting the settlement agreement; a copy can be found at sec.gov or at uns.com.

An ACC Administrative Law Judge will issue a recommended opinion and order following the conclusion of planned hearings. That recommendation is then subject to review and approval by the ACC before new rates can become effective.

About Fortis

Fortis is a leader in the North American electric and gas utility business, with total assets of approximately CAD$29 billion and fiscal 2015 revenue of CAD$6.7 billion. The Corporation's asset mix is approximately 94% regulated (69% electric, 25% gas), with the remaining 6% comprised of non-regulated energy infrastructure. The Corporation's regulated utilities serve more than 3 million customers across Canada, the United States and the Caribbean.

Fortis shares are listed on the TSX and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedar.com, or www.sec.gov.

About Tucson Electric Power

Tucson Electric Power provides safe, reliable electric service to approximately 417,000 customers in Southern Arizona. For more information, visit tep.com. TEP and its parent company, UNS Energy, are subsidiaries of Fortis Inc. To learn more, visit www.fortisinc.com.

Investor Enquiries:
Ms. Janet Craig
Vice President, Investor Relations
Fortis Inc.
709.737.2863

Media Enquiries:
Ms. Karen McCarthy
Director, Communications and Corporate Affairs
Fortis Inc.
709.737.5323



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