ST. JOHN'S, - The Newfoundland and Labrador government will pay approximately $22 million to Fortis to compensate for the expropriation of the firm's stake in a hydroelectric dam.
The St. John's-based power and gas utility (TSX:FTS) was part owner of the Exploits River dam in central Newfoundland, which was taken over by the province in 2008.
A news release says Fortis will value the payment from the province at "approximately $22 million, after tax," in the first quarter.
The company says Fortis held a 51 per cent interest in the Exploits River Hydro Partnership through Fortis Properties Corp.
The payments are related to the expropriation of hydro dams and water and timber rights from Abitibi-Bowater.