Fortis Inc. · TSX:FTS
Fortis — Investor Presentation (July 2025)
45 slides from Fortis's investor presentation, Jul 31, 2025
Slide 1: Investor Presentation August 2025
INVESTOR PRESENTATION August 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: Fortis at a Glance
FORTIS AT A GLANCE TSX/NYSE: FTS 93% transmission and distribution assets 10 regulated utilities in Canada, U.S., and Caribbean 3.5 million electricity and gas customers 9,800 dedicated employees 99% Regulated utility assets $5.2 billion 2025F Capital expenditures $40.7 billion 2025F rate base ~10%
Slide 4: Our Vision & Strategy
OUR VISION & STRATEGY A Premium North American Utility Delivering a Cleaner Energy Future SUSTAINABLE GROWTH • Operational Excellence • Financial Strength • Diversified Regulated Portfolio • Local Business Model • Strong Governance 4
Slide 5: Our Common Ground
OUR COMMON GROUND Provision of Safe & Reliable Service Good Governance Priority #1 Fortis Ranked #1 out of 215 S&P/TSX companies in The Globe & Mail 2024 Board Games • Health and safety of our employees, customers and contractors • Utilities operate within the parameters of common policies and best
Slide 6: Delivering Safe & Reliable Service
DELIVERING SAFE & RELIABLE SERVICE All-Injury Average Electricity Customer Frequency Rate(1) Outage Duration (Hours) 1.70 1.58 4.3 4.2 3.8 3.3 2.3 1.9 2.0 2.0 1.9 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Fortis USA Bureau of Labor Statistics Fortis(2) Electricity Canada and U.S. Energy (202
Slide 7: Maintaining Customer Affordability
MAINTAINING CUSTOMER AFFORDABILITY Key Areas of Focus Controllable Operating • Preventative maintenance and the Costs per Customer introduction of innovative practices to reduce costs • Prioritization of capital investment based on operational needs and associated rate impact • Utilization of availa
Slide 8: Five-Year Plan Highlights
FIVE-YEAR PLAN HIGHLIGHTS Capital Rate Funding Dividend Expenditures Base Plan Growth $26B 6.5% >12% 4-6% 2025-2029 2024-2029 Average Cash Flow Annual Dividend Growth Capital Plan CAGR To Debt Metrics Guidance Extended to 2029 58% ~$14B ~59% ~4% Expected in Increase to $53B Funded by Cash From Q4 20
Slide 9: Highly Executable Capital Plan Supports Low-Risk Rate Base Growth
HIGHLY EXECUTABLE CAPITAL PLAN SUPPORTS LOW-RISK RATE BASE GROWTH $2.9 Billion YTD June Capital Expenditures(1) 2025 annual capital plan of $5.2B on track $26 Billion 2025-2029 Capital Plan(1) 23% major capital projects Virtually all regulated investments 6.5% 5-Year Rate Base CAGR(2) Rate base fore
Slide 10: Balanced Approach to Funding Growth
BALANCED APPROACH TO FUNDING GROWTH $26B Key Highlights Capital Plan • Funding plan largely consistent with 2025-2029 Equity prior year plan Corporation’s DRIP at current participation levels(1) 11% and employee share purchase plans • Equity funded through DRIP program 30% Net Debt • $500M ATM progr
Slide 11: Liquidity & Foreign Exchange
LIQUIDITY & FOREIGN EXCHANGE Long-Term Foreign Exchange & Debt Issuances Hedging • Fortis Inc. ▪ $600M 7-year notes at 4.09% • Capital plan reflects assumed USD:CAD FX • UNS Energy of 1.30 for 2025-2029 ▪ US$300M 30-year notes at 5.90% • Central Hudson • +/- $0.05 change in USD:CAD ▪ US$20M 10-year
Slide 12: Investment-Grade Credit Ratings
INVESTMENT-GRADE CREDIT RATINGS Moody’s CFO/Debt(1) Credit Ratings & Outlooks 12.1% 10.9% A-(2) A (low) BBB+ Baa3 2024 2025-2029F Avg. Negative Stable Stable Stable S&P FFO/Debt(1) Key Credit Strengths 12.2% Strong business risk profile Geographic and regulatory 11.6% diversity Effectively 100% regu
Slide 13: Key Opportunities to Expand & Extend Growth
KEY OPPORTUNITIES TO EXPAND & EXTEND GROWTH TEP’s Retail Load Growth Opportunity • This quarter, an agreement using existing and planned capacity was reached with a data center customer requiring power demand of ~300 MW ramping up in 2027 • The agreement is subject to ACC approval and other contract
Slide 14: Additional Opportunities to Expand & Extend Growth Beyond the Plan
ADDITIONAL OPPORTUNITIES TO EXPAND & EXTEND GROWTH BEYOND THE PLAN MISO LRTP Tranche 2.1 ~US$3.7-$4.2B For projects in Michigan and Minnesota where ROFRs are in effect and system upgrades in Iowa; majority of investments are expected post-2029 MISO LRTP Tranche 2.1 Competitively Bid Projects Any pro
Slide 15: Long Capex Runway
LONG CAPEX RUNWAY Responding to stakeholder expectations and capitalizing on opportunities to expand & extend growth Connect more renewable Replace aging assets to generation to the grid maintain reliability Build more renewable Invest in technology to ensure C02 generation and provide security and
Slide 16: Recent Regulatory Activity
RECENT REGULATORY ACTIVITY TEP General Rate Application Overview • In June 2025, TEP filed its general rate application with the ACC seeking new rates effective September 1, 2026 using a December 31, 2024 test year and post-test year adjustments through June 30, 2025 • The application includes a req
Slide 17: Three-Year Look Back
THREE-YEAR LOOK BACK Adjusted EPS & Rate Base Adjusted Dividend Payout Ratio 41.5 $37.0B $39.0B 3.5 $3.28 115.0% 36.5 $34.1B 3.3 $3.09 $31.1B 3.1 105.0% 31.5 2.9 $2.78 26.5 2.7 $2.59 95.0% 21.5 2.5 85.0% 2.3 79.2% 16.5 78.1% 73.9% 2.1 75.0% 11.5 72.7% 1.9 65.0% 6.5 1.7 1.5 1.5 55.0% 2021 2022 2023 2
Slide 18: Total Shareholder Returns
TOTAL SHAREHOLDER RETURNS Cumulative 20-Year Total Shareholder Return Average Annual 588% Total Shareholder Returns 369% 1-Year 21.9% 349% 5-Year 8.6% 10-Year 10.2% 2005 2010 2015 2020 2025 20-Year 10.1% Fortis S&P/TSX Composite Index S&P/TSX Capped Utilities Index Note: Cumulative and average a
Slide 19: 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 19
Slide 20: 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 21: Appendix
APPENDIX FORTIS...
Slide 22: Table of Contents
TABLE OF CONTENTS ITC Holdings Corp. 23-24 UNS Energy 25-27 Central Hudson 28-29 FortisBC 30-31 FortisAlberta 32-33 Other Electric Utilities 34-35 2025-2029 Capital Plan by Business Unit 36 Major Capital Projects 37 2024-2029 Rate Base by Business Unit 38 Sensitivity Exposure & Hedging 39 Ongoing Re
Slide 23: ITC Overview
ITC OVERVIEW FERC REGULATED ELECTRIC TRANSMISSION UTILITY 26,100 km $12.8 billion Lines of transmission 2025F rate base Assets in 8 U.S. States 22,683 MW Michigan and Iowa key states Peak demand ~800 Fortis owns 80.1% dedicated employees Interest in ITC FERC Rate Regulated 10.73-11.41% Allowed ROE C
Slide 24: ITC Capital Investment Overview
ITC CAPITAL INVESTMENT OVERVIEW $4.0B Infrastructure Investments Grid Security Rebuild, reliability, resiliency, system efficiencies, increased capacity, circuit overloads, pocket load growth MISO LRTP $1.7B MISO Long-Range Transmission Plan Includes portion of investments for Tranche 1 & 2.1 $7.6B
Slide 25: UNS Energy Overview
UNS ENERGY OVERVIEW VERTICALLY INTEGRATED ELECTRIC AND GAS UTILITY 23,300 km $7.7 billion of electric T&D lines 2025F rate base 5,100 km 3,442 MW of natural gas T&D lines Generating Capacity 727,000 ACC & FERC Regulated electric and gas customers Cost of service/historical test year & FERC formula t
Slide 26: UNS Energy Capital Investment Overview
UNS ENERGY CAPITAL INVESTMENT OVERVIEW Generation Maintenance $2.0B Energy Resources(2) Expected energy storage, renewables and other IT, General & investments associated with exit from coal Other Energy Resources $1.3B Distribution Infrastructure Grid resiliency and modernization $5.3B $1.1B Transm
Slide 27: Springerville Coal-Fired Generating Units to Be Converted to Natural Gas
SPRINGERVILLE COAL-FIRED GENERATING UNITS TO BE CONVERTED TO NATURAL GAS Overview Committed to a Coal-Free Generation Mix by 2032 • TEP announced that it plans to convert 793 MW of coal-fired generation at the Springerville Generating Station to natural gas generation with similar capacity by 2030 •
Slide 28: Central Hudson Overview
CENTRAL HUDSON OVERVIEW ELECTRIC AND GAS T&D UTILITY 15,300 km ~1,200 of electric T&D lines dedicated employees 2,400 km $3.4 billion of natural gas T&D lines 2025F rate base New York Public Service 315,000 electric customers Commission Regulated Cost of service on future test year 90,000 9.5% 48% n
Slide 29: Central Hudson Capital Investment Overview
CENTRAL HUDSON CAPITAL INVESTMENT OVERVIEW Transmission Infrastructure $1.35B Distribution Infrastructure Distribution automation and modernization $2.3B Distribution Infrastructure $600M IT, General & Other Building the workforce of the future Capital Plan(1) 2025-2029 $350M Transmission Infrastruc
Slide 30: FortisBC Overview
FORTISBC OVERVIEW GAS LDC AND INTEGRATED ELECTRIC UTILITY 51,700 km ~2,700 of natural gas T&D lines dedicated employees 7,400 km $8.1 billion of electric T&D lines 2025F rate base 1.1 million BCUC Regulated natural gas customers Cost of service with incentive mechanisms 195,000 9.65% Gas 45% electri
Slide 31: FortisBC Capital Investment Overview
FORTISBC CAPITAL INVESTMENT OVERVIEW Renewable Gases $2.7B Reliability & Integrity Investments AMI Project Ongoing capital and includes customer growth and general plant investments $1.2B LNG Projects $4.8B Reliability LNG Tilbury 1B Tilbury LNG Storage Expansion Capital Plan & Integrity Investments
Slide 32: FortisAlberta Overview
FORTISALBERTA OVERVIEW ELECTRIC DISTRIBUTION UTILITY 91,100 km $4.7 billion distribution lines 2025F rate base ~85% 603,000 of revenue derived from customers fixed-billing determinants 2,867 MW AUC Regulated Peak demand Performance-based rate-setting (PBR) 8.97% 37% ~1,300 Allowed Equity dedicated e
Slide 33: FortisAlberta Capital Investment Overview
FORTISALBERTA CAPITAL INVESTMENT OVERVIEW IT, General & Other $2.7B Distribution Infrastructure Safety and reliability of distribution assets, meter upgrades, pole management program, modernization Distribution Infrastructure $3.4B $700M IT, General & Other Capital Plan 2025-2029 33
Slide 34: Other Electric Overview
OTHER ELECTRIC OVERVIEW ELECTRIC T&D UTILITIES 23,500 km Five of electric T&D lines regulated electric utilities(1) 491,000 Equity investments customers Wataynikaneyap Partnership & Belize Electricity ~1,550 Three dedicated employees North American countries $4.0 billion 8.84% 45.3% 2025F rate base
Slide 35: Other Electric Capital Investment Overview
OTHER ELECTRIC CAPITAL INVESTMENT OVERVIEW IT, General & Other $1.1B Distribution Infrastructure Transmission $700M Generation Diversification $2.5B Infrastructure Capital Plan(1) Distribution $400M Transmission Infrastructure Infrastructure 2025-2029 $300M IT, General & Other Generation Diversifica
Slide 36: 2025-2029 Capital Plan by Business Unit
2025-2029 CAPITAL PLAN BY BUSINESS UNIT Capital Plan 2025-2029 ($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 37: 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 38: 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 39: 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 40: 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 are unknown TEP General Rate Applicati
Slide 41: Sustainability Leadership
SUSTAINABILITY LEADERSHIP Climate and Innovation Community and Indigenous Relations • Over the last five years, Fortis has achieved consistent progress to decarbonize our • Building on our strong record of mutually beneficial partnerships with energy mix and deliver cleaner energy to customers: Indi
Slide 42: Q2 2025 Sales Trends
Q2 2025 SALES TRENDS CHANGE IN Q2 2025 vs. Q2 2024 RETAIL ENERGY SALES TRENDS SALES N/A • Peak load down 1% primarily due to cooler weather in Michigan (1) • Decrease primarily due to lower average use associated with milder -2% temperatures; absent weather impacts, retail sales flat and C&I sales d
Slide 43: Long-Term Debt Maturities
LONG-TERM DEBT MATURITIES 10-Year Debt Maturities $2.5 $2.0 $1.5 billions $1.0 $0.5 $- 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 2033F 2034F Non-Regulated (1) Regulated Note: U.S. dollar-denominated debt translated at June 30, 2025 USD:CAD closing foreign exchange rate of 1.36. (1) Includes no
Slide 44: Strong Investment-Grade Credit Ratings
STRONG INVESTMENT-GRADE CREDIT RATINGS Company Fortis Inc. A-(1) A (low) BBB+ Baa3 ITC Holdings Corp. A-(1) n/a n/a Baa2 ITC Regulated Subsidiaries A+ n/a n/a A1 TEP A- n/a n/a A3 Central Hudson BBB+ n/a BBB Baa1 FortisBC Energy n/a A n/a A3 FortisBC Electric n/a A (low) n/a Baa1 FortisAlberta A- A
Slide 45: Glossary
GLOSSARY ACC Arizona Corporation Commission GWh Gigawatt hours H2 Second half of the year AMI Advanced Metering Infrastructure IRP Integrated Resource Plan ATM At-the-market equity program IT Information technology AUC Alberta Utilities Commission ITC Investment Holdings Inc., an indirect 80.1%-owne