BUSINESS
04/30/2013 04:33 EDT | Updated 06/30/2013 05:12 EDT

Fortis to add $22 million in first quarter from expropriation payment

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.