Wed. Oct 4th, 2023
    Fortis Launches $25 Billion Capital Plan with Focus on Renewable Energy

    Fortis, a Canadian regulated electric and gas utility, has announced a new five-year capital plan worth 25 billion Canadian dollars ($18.54 billion). The plan includes a larger emphasis on renewable energy, along with other investments throughout its network in Canada and the U.S.

    Approximately 27% of the capital plan will be allocated to investments in cleaner energy. This will primarily involve connecting renewables to the grid. Fortis plans to invest in renewable energy and storage in Arizona and the Caribbean, as well as explore cleaner fuel solutions in British Columbia.

    The new investments are expected to result in a compounded annual growth rate of 6.3% on a constant foreign exchange basis over the life of the plan. This will bring their midyear rate base to C$49.4 billion in 2028, up from C$36.8 billion this year.

    One of the key factors supporting the capital plan increase is the Inflation Reduction Act of 2022 in the U.S. Fortis will also be investing in the state of Arizona to facilitate a transition away from coal-powered energy. The company intends to primarily fund the plan through cash from operations and regulated debt.

    In addition to the capital plan, the Fortis board has announced a 4.4% increase in its dividend. This milestone marks 50 consecutive years of dividend increases for the company. Fortis is one of only two companies listed on the Toronto Stock Exchange to achieve this impressive feat.

    With its new capital plan and focus on renewable energy, Fortis is positioning itself to continue its steady growth while also contributing to a greener and more sustainable future.


    – Adriano Marchese, [email protected] (source)