Fortis Lays Out Five-Year C$26 Billion Capital Plan, Growth Outlook

By Adriano Marchese

Fortis announced its five-year, 26 billion Canadian dollar ($19.28 billion) capital allocation plan, which will include investments in energy transition and infrastructure modernization.

The St. John's, Newfoundland and Labrador-based utility company said Thursday that the new capital plan, which will run between 2025 and 2029, is C$1 billion higher than the prior plan.

Fortis said the plan is low-risk and highly executable, with nearly all investments being regulated and 23% relating to major capital projects.

In particular, the growth is underpinned by projects associated with the Midcontinent Independent System Operator long-range transmission plan, investments at ITC Holdings, its U.S.-based electric transmission company, and growth in its Alberta market.

Of the C$26 billion, about half of the budget aims to strengthen company infrastructure through modernization investments. It also said that C$6.7 billion is earmarked to support energy transition investments which focus on interconnecting renewables to the grid as well as investments in storage and new natural gas initiatives.

The balance will go toward growing its customer base, cybersecurity and other investments, it said.

The capital plan is expected to increase the midyear rate base from C$38.8 billion in 2024 to C$53 billion by the fifth year, which represents 6.5% growth on a constant foreign exchange basis, and is expected to be funded primarily by cash from operations and debt.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 26, 2024 06:55 ET (10:55 GMT)

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