Bishop's Falls Hydroelectric Plant Inauguration

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR - July 29, 2003 -- Central Newfoundland Energy (CNE), a non-regulated subsidiary of Fortis Inc. (TSX: FTS), and Abitibi-Consolidated Inc. (TSE: A, NYSE: ABY) officially inaugurated the redevelopment of the Bishop's Falls hydroelectric plant on Monday, July 28, 2003. The Partnership was established between CNE and Abitibi-Consolidated in September 2001 to redevelop Abitibi-Consolidated's hydroelectric plant at Bishop's Falls and to construct a new plant at Grand Falls-Windsor, NL.

"The redevelopment ensures a continuing source of stable, renewable energy to the paper mill in Grand Falls-Windsor and will also provide supply to meet some of the growing energy demand in Newfoundland," says Philip Hughes, Chair of the Exploits River Hydro Partnership. "This project was completed in less than 12 months, which is a tremendous testament to the cooperation amongst all of the parties involved. The majority of the work was carried out by contractors from the province and approximately 40 individuals were employed during peak construction."

Gordon Oldford, Vice President, Newsprint International Operations, Abitibi-Consolidated Inc. adds, "The Bishop's Falls Hydroelectric Plant has been an important part of the paper mill operations in Central Newfoundland for nearly a century. This redevelopment will enable us to maximize the full potential of the river."

Abitibi-Consolidated will continue to use its historical generation at the newsprint mill in Grand Falls-Windsor while the additional energy produced as a result of the equipment upgrades will be sold to Newfoundland and Labrador Hydro under a long-term power purchase agreement.

Prior to redevelopment, the Bishop's Falls plant operated at a generating frequency of 50 Hertz (Hz) instead of the North American standard of 60 Hz. The project to modernize and improve the efficiency of the plant consisted of the replacement of six turbines, refurbishment of generators and switchgear, construction of new substations, modernization of plant controls and numerous repairs and enhancements to the powerhouse structure.