The Securities Commission has granted an exemption to certain filers, allowing them to prepare their financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP) instead of Canadian GAAP applicable to publicly accountable enterprises. This decision is based on the fact that these filers are subsidiaries of Fortis Inc., which is already permitted to file financial statements in U.S. GAAP as an SEC issuer. The exemption is contingent on the filers continuing to have rate-regulated activities and will expire on the earliest of January 1, 2027, the date they cease to have rate-regulated activities, or two years after the International Accounting Standards Board (IASB) publishes a mandatory standard for entities with rate-regulated activities. The decision is made under section 3.2 of National Instrument 52-107 Acceptable Accounting Principles and Auditing Standards, with the Ontario Securities Commission acting as the Principal Regulator. The exemption also revokes previous similar relief granted to the filers.
