Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 EARNINGS CONFERENCE CALL May 7, 2025
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION Fortis includes forward-looking information in this presentation within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looki
Slide 3: David Hutchens and Jocelyn Perry
David Hutchens Jocelyn Perry President and Chief Executive Officer, EVP and Chief Financial Officer, Fortis Inc. Fortis Inc. 3
Slide 4: Q1 2025 Business Update
Q1 2025 BUSINESS UPDATE Delivered Safe & Capital Expenditures Reliable Service of $1.4B in Q1 2025 Constructive Q1 2025 EPS $1.00 Regulatory Outcome $0.07 over Q1 2024 in British Columbia 4
Slide 5: Highly Executable Capital Plan Supports Low-Risk Annual Rate Base Growth of ~6.5%
HIGHLY EXECUTABLE CAPITAL PLAN SUPPORTS LOW-RISK ANNUAL RATE BASE GROWTH OF ~6.5% $1.4 Billion Capital Expenditures in Q1 2025 annual capital plan of $5.2B on track with major capital projects progressing $26 Billion 2025-2029 Capital Plan 23% major capital projects Virtually all regulated investmen
Slide 6: Opportunities to Expand and Extend Growth Beyond the Plan
OPPORTUNITIES TO EXPAND AND EXTEND GROWTH BEYOND THE PLAN • MISO LRTP Tranche 2.1 Retail Load Growth • • Tilbury LNG Expansion • Transmission Investments ~US$3.7-$4.2B for projects in Michigan Negotiations ongoing for Marine bunkering Regional transmission as minority and Minnesota where ROFRs are i
Slide 7: Dividend Guidance Supported by Long-Term Growth Strategy
DIVIDEND GUIDANCE SUPPORTED BY LONG-TERM GROWTH STRATEGY 51 Years of Consecutive Increases in Dividends Paid 4-6% Annual Dividend Growth Guidance through 2029 73 76 79 82 85 88 91 94 97 00 03 06 09 12 15 18 21 24 7
Slide 8: First Quarter Results
FIRST QUARTER RESULTS Earnings EPS $499M $1.00 $0.93 $459M Q1 2024 Q1 2025 Q1 2024 Q1 2025 8
Slide 9: Q1 2025 EPS Drivers
Q1 2025 EPS DRIVERS $0.03 ($0.01) $0.01 $0.01 $0.01 $1.00 $0.02 $0.93 Q1 2025 EPS $0.07 compared to Q1 2024 Q1 2024 U.S. U.S. Western Other Foreign Weighted Q1 2025 Basic EPS Electric & Transmission Canadian Electric Exchange (3) Average Basic EPS Gas (1) (ITC) Electric & Gas (2) Shares (1) Includes
Slide 10: Liquidity, Funding & Credit Ratings
LIQUIDITY, FUNDING & CREDIT RATINGS Q1 2025 Long-Term Balanced Approach Credit Ratings Debt Issuances To Funding Growth & Outlooks • Fortis Inc. ▪ $600M 7-year notes at 4.09% Cash From Net Debt(2) Baa3 A-(4) A (low) $26B Operations(1) 30% • UNS Energy 59% Stable Negative Stable ▪ US$300M 30-year not
Slide 11: Recent Regulatory Activity
RECENT REGULATORY ACTIVITY Central Hudson 2025-2027 Rate Framework TEP General Rate Application General Rate Application • In March 2025, the BCUC issued its • TEP expects to file its general rate • In August 2024, Central Hudson filed a decision on FortisBC’s 2025-2027 rate application this summer
Slide 12: Why Invest in Fortis?
SUSTAINABLE GROWTH WHY INVEST IN FORTIS? Focused on Executing Strong Robust Transparent Rate Base Growth Transmission Funding Plan Investment Pipeline Cleaner 4-6% Annual Investment-Grade Energy Transition Dividend Growth Credit Ratings LOW-RISK Safe, Well-Run Utilities Regulatory & Constructive Str
Slide 13: Upcoming Events
UPCOMING EVENTS Expected Earnings Release Dates • Q2 2025 – August 1, 2025 • Q3 2025 – November 4, 2025 13
Slide 14: Q1 2025 Earnings Conference Call
Q1 2025 EARNINGS CONFERENCE CALL May 7, 2025
Slide 15: Non-U.S. GAAP Reconciliation
NON-U.S. GAAP RECONCILIATION ($MILLIONS) Q1 2025 Q1 2024 VARIANCE Capital Expenditures Additions to property, plant and equipment 1,483 1,071 412 Additions to intangible assets 60 42 18 Adjusting items: Eagle Mountain Pipeline Project(1) (123) - (123) Wataynikaneyap Transmission Power Project(2) - 1
Slide 16: First Quarter Results by Segment
FIRST QUARTER RESULTS BY SEGMENT First Quarter Earnings Variance Analysis by Business Unit ($MILLIONS, EXCEPT WEIGHTED AVERAGE SHARES Q1 2025 Q1 2024 VARIANCE AND EPS) Regulated – Independent Electric Transmission ITC 150 138 12 Regulated – U.S. Electric & Gas UNS Energy 81 88 (7) Central Hudson 65
Slide 17: 2025-2029 Capital Plan by Business Unit
2025-2029 CAPITAL PLAN BY BUSINESS UNIT Capital Plan 2025-2029 ($MILLIONS) 2025F 2026F 2027F 2028F 2029F TOTAL Regulated – Independent Electric Transmission ITC 1,403 1,488 1,523 1,600 1,573 7,587 Regulated – U.S. Electric & Gas UNS Energy 1,276 1,087 1,201 1,138 581 5,283 Central Hudson 462 480 440
Slide 18: Major Capital Projects
MAJOR CAPITAL PROJECTS 2025- Estimated Completion ($ Millions) 2024A 2029F Date Major Capital ITC MISO LRTP(1) 64 1,704 Various Projects 23% UNS IRP Related Generation(2) 1 1,620 Various UNS Roadrunner Reserve Battery Storage Project 1 286 51 2025 UNS Roadrunner Reserve Battery Storage Project 2 UNS
Slide 19: 2024-2029 Rate Base by Business Unit
2024-2029 RATE BASE BY BUSINESS UNIT Rate Base 5-YEAR CAGR to ($BILLIONS, EXCEPT FOR CAGR) 2024A 2025F 2026F 2027F 2028F 2029F 2029 Regulated – Independent Electric Transmission ITC(1) 12.5 12.8 13.9 14.8 15.7 16.5 6.8% Regulated – U.S. Electric & Gas (2) UNS Energy 7.6 7.7 8.3 8.8 9.8 10.7 6.7% Cen
Slide 20: Sensitivity Exposure & Hedging
SENSITIVITY EXPOSURE & HEDGING ROE & Equity Ratio Foreign Exchange ROE Equity • Assumed USD:CAD FX rate of 1.30 for 2025-2029 Capital Plan +/- 25 bps +/- 100 bps • ~65% of regulated earnings(1)/ 60% of capital plan in USD at ITC $0.035 $0.030 U.S. & Caribbean utilities UNS Energy $0.025 $0.015 • +/-
Slide 21: Ongoing Regulatory Proceedings
ONGOING REGULATORY PROCEEDINGS Transmission Incentives In 2021, FERC issued a supplemental NOPR proposing to eliminate the 50-bps RTO adder for transmission owners that have been RTO members for longer than three years; the timing and outcome of this proceeding remain unknown UNS Gas General Rate Ap
Slide 22: Sustainability Leadership
SUSTAINABILITY LEADERSHIP Climate and Innovation Community and Indigenous Relations • 2050 net-zero direct emissions goal with interim targets to reduce GHG emissions 50% • Building on our strong record of mutually beneficial partnerships with by 2030 and 75% by 2035; the Corporation's ability to ac
Slide 23: Q1 2025 Sales Trends
Q1 2025 SALES TRENDS CHANGE IN Q1 2025 vs. Q1 2024 RETAIL ENERGY SALES TRENDS SALES N/A • Peak load up 3% primarily due to colder weather (1) • Decrease primarily due to lower heating load associated with milder -2% temperatures • Increase primarily due to higher average consumption by residential a
Slide 24: Long-Term Debt Maturities & Preference Share Dividends
LONG-TERM DEBT MATURITIES & PREFERENCE SHARE DIVIDENDS Preference Share Rate Resets 10-Year Debt Maturities $2.5 2025 $2.0 $1.5 $1.0 billions Series H - $192M $0.5 June 1, 2025(2) $- Series I - $58M 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F June 1, 2025(3) (1) Non-Regulated Regulat
Slide 25: Strong Investment-Grade Credit Ratings
STRONG INVESTMENT-GRADE CREDIT RATINGS Company Fortis Inc. A-(1) Baa3 A (low) ITC Holdings Corp. A-(1) Baa2 n/a ITC Regulated Subsidiaries A+ A1 n/a TEP A- A3 n/a Central Hudson BBB+ Baa1 n/a FortisBC Energy n/a A3 A FortisBC Electric n/a Baa1 A (low) FortisAlberta A- Baa1 A (low) Newfoundland Power
Slide 26: Glossary
GLOSSARY ACC Arizona Corporation Commission ITC Investment Holdings Inc., an indirect 80.1%-owned subsidiary of Fortis, together with its subsidiaries, including International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC, AMI Advanced Metering Infrastructure ITC