Newfoundland Power files capital budget for 2004

St. John’s, NFLD July 25, 2003 -- Newfoundland Power Inc. (TSX:FTS) today filed its 2004 Capital Budget with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB).

“The Company has asked the PUB to approve a $53.9 million capital budget for 2004,” says Philip G. Hughes, President and Chief Executive Officer, Newfoundland Power Inc. “Our capital investments are driven by our commitment to meet customers’ expectations for reliable, low-cost electrical service. To that end, our goal is to balance customer needs, reliability, safety, productivity and environmental requirements with prudent capital expenditures. In 2004, the Company will focus on the replacement of deteriorated or inefficient plant and equipment, and make investments to improve our operating efficiency and reliability.”

The 2004 Capital Budget takes into consideration the Company’s obligation to meet the demands of new customer and energy sales growth, replace deteriorated equipment, improve operating performance and enhance productivity through investments in technology. The Company will continue its efforts to refurbish a number of transmission and distribution lines, substations and hydroelectric generating plants while focusing on improving reliability for customers served by radial systems in rural areas.

“We believe that success is measured by our ability to meet our customers’ expectations, and meeting those expectations is only attainable through continuous investment,” added Hughes. “Investments that are focused on maintaining a sound electrical system and reducing operating costs enable the Company to improve reliability and maintain the lowest electrical rates in Atlantic Canada for our customers.”

The Company is submitting its capital budget at this time to gain regulatory approval early and begin detailed construction planning sooner. This will allow the Company to begin capital work in 2004 without delay should weather conditions permit. As in previous years, these efforts will enable Newfoundland Power to better allocate resources, increase productivity and keep costs for customers as low as reasonably possible.

With a customer base of approximately 220,000 accounts, Newfoundland Power is dedicated to providing the highest level of customer service and reliability of electrical supply in the most cost-efficient manner possible.

Newfoundland Power