Fortis prepares to submit BEL compensation claim

Canada's Fortis (TSX: FTS) this quarter expects to submit a compensation claim to Belize's government over the expropriation of the company's stake in Belize Electricity ( BEL). In June, the government expropriated Fortis' approximate 70% stake in the utility. In its latest quarterly financials, Fortis said it has commissioned an independent valuation of its previous investment in BEL and commenced an action in the Belize supreme court to challenge the expropriation. The Canadian utility continues to own hydro generator Becol (51MW) in Belize, and reported the country's prime minister has stated the government has neither the intention nor the resources to expropriate Becol. Elsewhere in the Caribbean, Fortis holds a 59% stake in Caribbean Utilities on Grand Cayman, Cayman Islands, and wholly owns utility Fortis Turks and Caicos. "Electricity sales at Caribbean Utilities and Fortis Turks and Caicos continue to be impacted by a decline in customer energy consumption resulting from persistent challenging economic conditions in the region, high fuel prices and a declining population," according to Fortis' latest MD&A available here