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Fortis is like the AT&T for electricity and natural gas, providing essential utility services across Canada, parts of the U.S., and the Caribbean.

Think of Fortis as the FedEx for energy delivery, owning and operating the vast networks of power lines and gas pipelines that bring electricity and natural gas to millions of customers.

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• Electricity Generation, Transmission, and Distribution: Fortis provides integrated electric utility services, including generation, transmission, and distribution of electricity to retail and wholesale customers across Canada, the United States, and the Caribbean.
• Natural Gas Distribution: The company distributes natural gas to residential, commercial, and industrial customers primarily in British Columbia, Canada.
• Contracted Hydroelectric Power Generation: Fortis owns and operates long-term contracted hydroelectric generating facilities, such as those in Belize.
• Natural Gas Storage: The company owns and operates natural gas storage facilities, including the Aitken Creek natural gas storage facility.
• Utility Operation, Maintenance, and Management Services: Fortis provides specialized operation, maintenance, and management services for various utility assets, particularly hydroelectric generating facilities.

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Fortis (FTS) primarily sells electricity and natural gas directly to end-users rather than other companies for resale. Based on the company description, its major customer categories are:

1. Residential Customers: Individuals and households consuming electricity and natural gas for personal use.
2. Commercial Customers: Businesses and establishments, such as retail stores, offices, and small enterprises, consuming utilities for their operations.
3. Industrial Customers: Large-scale manufacturing facilities, factories, and other industrial operations that require significant amounts of electricity and natural gas.

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David Hutchens, President and Chief Executive Officer

Mr. Hutchens was appointed President and Chief Executive Officer of Fortis Inc. in January 2021. His career in the energy sector spans over 25 years, having held a variety of positions at Fortis's electric and gas utilities in Arizona. He previously served as Chief Operating Officer of Fortis and also as Chief Executive Officer of UNS Energy Corporation, the parent company of Tucson Electric Power. Mr. Hutchens earned a Bachelor of Aerospace Engineering and a Master of Business Administration from the University of Arizona and is a former nuclear submarine officer in the U.S. Navy.

Jocelyn Perry, Executive Vice President, Chief Financial Officer

Ms. Perry is the Executive Vice President and Chief Financial Officer for Fortis Inc. She joined Fortis Inc. in 2002 as Director of Financial Reporting. Her career includes 13 years at Newfoundland Power, a subsidiary of Fortis Inc., where she served as Chief Financial Officer and President and Chief Executive Officer. Ms. Perry received an undergraduate degree from Memorial University of Newfoundland and is a Fellow of the Chartered Professional Accountants of Canada (FCPA).

Jim Reid, Executive Vice President, Sustainability and Chief Legal Officer

Mr. Reid holds the position of Executive Vice President, Sustainability and Chief Legal Officer at Fortis Inc.

Gary Smith, Executive Vice President, Operations and Technology

Mr. Smith is the Executive Vice President, Operations and Technology at Fortis Inc.

Stuart Lochray, Executive Vice President, Strategy and Business Development

Mr. Lochray serves as the Executive Vice President, Strategy and Business Development at Fortis Inc.

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1. Regulatory and Political Risk

As an electric and gas utility company operating across Canada, the United States, and the Caribbean countries, Fortis Inc. is highly susceptible to changes in regulatory frameworks, government policies, and rate-setting mechanisms in its various jurisdictions. Unfavorable regulatory decisions, delays in rate approvals, or new environmental regulations could impact the company's ability to recover costs, earn its allowed rate of return, and execute its planned capital expenditures, directly affecting its financial performance and growth prospects.

2. Climate Change and Extreme Weather Events

Fortis Inc. owns and operates extensive infrastructure, including approximately 90,200 circuit kilometers of distribution lines, 50,500 kilometers of natural gas pipelines, and numerous generating facilities (hydroelectric, solar, wind, gas-fired) across a diverse geographic footprint. This exposes the company to increasing physical risks associated with climate change, such as more frequent and severe weather events (e.g., storms, floods, wildfires, droughts impacting hydroelectric capacity). These events can cause significant damage to infrastructure, lead to service disruptions, increase operational and capital costs for repairs and resilience measures, and potentially result in regulatory penalties or liabilities.

3. Rising Interest Rates and Capital Costs

Utilities like Fortis Inc. are capital-intensive businesses that require substantial ongoing investment in infrastructure maintenance, upgrades, and expansion. The company likely relies on debt financing to fund a significant portion of these capital requirements. Consequently, increases in interest rates can lead to higher borrowing costs, which would reduce net income, increase financing expenses, and potentially impact the company's ability to fund necessary investments efficiently or at a favorable return.

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The clear emerging threat for Fortis (FTS) is the rapid advancement and increasing adoption of **distributed renewable energy sources and storage technologies** by individual customers and communities. As the cost of rooftop solar panels, on-site battery storage, and other localized generation solutions continues to fall, consumers gain the ability to generate and store their own electricity, significantly reducing their reliance on power supplied by traditional centralized utilities like Fortis. This shift transforms consumers into "prosumers" and threatens the established utility business model, which relies on volumetric electricity sales and centralized generation and transmission infrastructure. This trend could lead to declining demand for Fortis's generated and distributed electricity, potentially impacting revenue streams and the ability to fully recover the costs of maintaining extensive grid infrastructure.

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Fortis Inc. (FTS) operates in the electric and gas utility sectors across Canada, the United States, and the Caribbean. The addressable markets for its main products and services vary by region:

Canada

• Electricity Transmission and Distribution: The Canadian power transmission and distribution market generated approximately USD 20.26 billion in revenue in 2024 and is projected to reach USD 31.37 billion by 2030.
• Electricity Generation (Overall): Canada's total electricity generated was 618.3 million MWh in 2023. The total sales value of electricity to end-use consumers in Canada was $50.5 billion in 2023. The Canadian power market, in terms of installed base, is expected to grow from 158.83 gigawatts in 2025 to 171.08 gigawatts by 2030.
• Natural Gas Distribution: The natural gas distribution market in Canada was valued at $16.1 billion in 2024 and is projected to reach $17.1 billion in 2025. In 2022, domestic natural gas sales in Canada totaled 4.32 trillion cubic feet.
• Electricity (British Columbia): British Columbia generated 71.7 terawatt-hours (TWh) of electricity in 2021. BC Hydro is investing $36 billion through its 10-Year Capital Plan to expand and strengthen electrical infrastructure.
• Natural Gas (British Columbia): British Columbia consumed an average of 0.62 billion cubic feet per day of natural gas in 2023. The natural gas distribution industry in British Columbia has been growing at an average annual rate of 4.2% from 2020 to 2025.
• Electricity (Newfoundland and Labrador): Newfoundland and Labrador generated 41.9 TWh of electricity in 2021. The total generating capacity for the Island interconnected system was 1,958 MW. The Electric Power Transmission industry in Newfoundland is projected to be $2.2 billion in 2026.
• Electricity (Prince Edward Island): Prince Edward Island generated approximately 0.61 TWh of electricity in 2021. Electricity demand in the province is expected to grow by 32% between 2024 and 2033.
• Electricity (Ontario): Ontario generated 148.3 TWh of electricity in 2021 and 128.2 million MWh of electricity were delivered to customers in 2020. Annual electricity demand in Ontario is predicted to increase 75% by 2050 relative to 2024 levels, with peak demand reaching 36,740 MW in 2025. The utilities industry in Ontario contributed 1.7% (approximately $12.9 billion) to the provincial GDP in 2021.

United States

• Electricity (Arizona): Fortis distributes electricity to approximately 438,000 retail customers in southeastern Arizona and 100,000 retail customers in Arizona's Mohave and Santa Cruz counties, with an aggregate capacity of 3,485 MW. No specific market size in dollars for these regions was found.
• Wholesale Electricity (Western United States): Fortis sells wholesale electricity to other entities in the western United States. No specific market size in dollars was found for this wholesale market.

Caribbean Countries

• Electricity (Belize): Belize produced roughly 217,000 kilowatt-hours (0.217 TWh) of electricity as of 2022. The country's hydroelectric capacity is 54 MW. Hydropower accounts for approximately 50% of Belize's electricity generation. Belize Electricity Limited served over 100,000 consumers and supplied a peak demand of 96 megawatts as of 2019. Clean energy investment in Latin America and the Caribbean, which includes Belize, reached USD 70 billion in 2025.
• Electricity (Grand Cayman, Cayman Islands): Fortis provides integrated electric utility service to approximately 32,000 customers. No specific market size in dollars or total MWh was found for Grand Cayman. Electricity generation in Latin America and the Caribbean reached 165 TWh in March 2025.
• Electricity (Turks and Caicos): The Turks and Caicos Islands generated and consumed 235,000 MWh of electricity as of 2016. The total installed conventional capacity was 92 MW.

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Fortis Inc. (FTS) is expected to drive future revenue growth over the next 2-3 years through several key initiatives, primarily centered around its substantial capital expenditure program and the resultant expansion of its regulated asset base.

1. Significant Capital Expenditure Program and Rate Base Growth: Fortis has unveiled a robust five-year capital plan totaling C$28.8 billion for 2026-2030, a C$2.8 billion increase over its previous plan. This substantial investment is projected to increase the company's midyear rate base from approximately C$42.4 billion in 2025 to C$57.9 billion by 2030, translating into an expected 7% compound annual growth rate (CAGR) on a constant foreign exchange basis. The majority of these investments are directed towards regulated utility assets, which provide predictable returns.
2. Infrastructure Modernization and Energy Transition Investments: A considerable portion of the capital plan, approximately C$6.7 billion, is dedicated to supporting energy transition initiatives. These investments focus on enhancing grid modernization, decarbonization projects, connecting renewables to the grid, and developing renewable and storage solutions across its service territories, including Arizona and the Caribbean, as well as cleaner fuel solutions in British Columbia. These strategic expenditures aim to upgrade and expand essential utility infrastructure, aligning with evolving energy demands and regulatory mandates.
3. Customer Growth: Fortis anticipates revenue growth stemming from increasing customer numbers. For instance, distribution investments at FortisAlberta are partly driven by customer growth. The company serves approximately 3.5 million electric and natural gas customers, and continued expansion in its service territories contributes to a growing revenue base.
4. Higher Transmission Investments: Specific emphasis is placed on higher transmission investments, particularly evident in ITC's capital plan, which stands at C$9.8 billion. These investments are crucial for bolstering and expanding the electricity transmission networks, supporting an 8% rate base growth for ITC and contributing significantly to overall company revenue growth.

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Share Repurchases

• Fortis's last 12-month buyback yield was 0.0% as of December 31, 2025, indicating no significant share repurchases.

Share Issuance

• Approximately 11% of the $28.8 billion capital plan for 2026-2030 is expected to be funded by equity, primarily through the company's existing Dividend Reinvestment Plan (DRIP) and share purchase plans.
• A hybrid issuance, at 5.1%, was utilized to support corporate funding in the third quarter of 2025.

Outbound Investments

• Fortis completed the disposition of FortisTCI in September 2025 and its Belize assets in October 2025, with the proceeds used to strengthen the balance sheet and pay down credit facilities.

Capital Expenditures

• Fortis unveiled a $28.8 billion five-year capital plan for 2026-2030, representing an increase of $2.8 billion over the previous five-year outlook. This plan is projected to achieve a 7% compound annual growth rate in the rate base through 2030.
• Actual capital expenditures totaled $5.6 billion in 2025. Capital expenditures for 2024 were $5.012 billion, with an average of $3.926 billion from 2020 to 2024.
• The capital plan is primarily focused on low-risk transmission expansion (46%), distribution (31%), reliability work at ITC, and additional transmission and distribution investments at UNS Energy to support load growth and integrate future generation.