Fortis Inc.

With 99% of assets regulated and revenue tied to approved rate structures, Fortis has grown total revenue every fiscal year since 2020, including through the COVID downturn. The midyear rate base of $42.4B in 2025 underpins a $28.8B capital plan targeting $57.9B by 2030 and supports 4-6% annual dividend growth guidance.

Fortis operates across electric transmission (ITC, representing approximately 29% of planned capital), electric distribution, gas distribution, and generation across 16 regulatory jurisdictions, providing meaningful diversification within the regulated utility sector. All operations share the same regulatory-compact revenue model and broad capital cycle, limiting true end-market independence.

Approximately 58% of the 2026-2030 capital plan is deployed in the United States (including 29% at ITC), 38% in Canada, and 4% in the Caribbean, reflecting meaningful three-region diversification across five Canadian provinces and ten U.S. states. U.S. concentration exceeds a majority share, but the Canadian presence is substantive rather than token.

Regulated utility economics require proportional capital investment for each unit of earnings growth; Fortis deployed approximately $5.6B in capital in 2025 to deliver approximately 7% rate base growth. The asset-heavy model produces stable but unleveraged incremental returns, with no meaningful operating leverage beyond what is embedded in regulatory rate design.

Revenue derives from non-discretionary electricity and gas services under multi-year regulatory compacts covering all eight utility subsidiaries; services are mission-critical with no material transactional or spot-market component. UNS Energy, FortisBC Energy, ITC, and Central Hudson all operate under formula or general rate cases that reset allowed revenues on defined multi-year cycles.