Fortis Inc. Announces New $26 Billion Five Year Capital Outlook and 4% Increase in Fourth Quarter Dividend
Fortis Inc. (TSX/NYSE: FTS) has announced its 2025-2029 outlook, featuring a $26 billion five-year capital plan, which is $1 billion higher than the previous plan. The company projects a 6.5% average annual rate base growth through 2029. Key highlights include:
1. Increased regulated growth driven by transmission investments at ITC and customer growth in Alberta.
2. ITC estimates at least US$3 billion in investments for MISO's LRTP Tranche 2.1, with the majority expected post-2029.
3. Fourth quarter common share dividend increasing by 4.2%, marking 51 years of consecutive dividend increases.
4. Annual dividend growth guidance of 4-6% extended to 2029.
The new capital plan is expected to increase midyear rate base from $38.8 billion in 2024 to $53.0 billion by 2029. Funding will primarily come from cash from operations and regulated debt.
Fortis Inc. (TSX/NYSE: FTS) ha annunciato le sue previsioni per il periodo 2025-2029, con un piano di capitale quinquennale di $26 miliardi, che è $1 miliardo più alto rispetto al piano precedente. L'azienda prevede una crescita media annuale del tasso di base del 6,5% fino al 2029. I punti salienti includono:
1. Crescita regolamentata aumentata grazie agli investimenti nelle trasmissioni presso ITC e alla crescita dei clienti in Alberta.
2. ITC stima almeno 3 miliardi di dollari USA in investimenti per il LRTP Tranche 2.1 di MISO, con la maggior parte prevista dopo il 2029.
3. Aumento del dividendo sulle azioni ordinarie del quarto trimestre del 4,2%, che segna 51 anni di aumenti consecutivi del dividendo.
4. Previsione di crescita annuale del dividendo di 4-6% estesa fino al 2029.
Il nuovo piano di capitale dovrebbe aumentare il tasso di base di metà anno da $38,8 miliardi nel 2024 a $53,0 miliardi entro il 2029. Il finanziamento proverrà principalmente dal flusso di cassa dalle operazioni e dal debito regolamentato.
Fortis Inc. (TSX/NYSE: FTS) ha anunciado su perspectiva para el período 2025-2029, presentando un plan de capital de $26 mil millones a cinco años, que es $1 mil millones más alto que el plan anterior. La compañía proyecta un crecimiento promedio anual de la base tarifaria del 6.5% hasta 2029. Los puntos destacados incluyen:
1. Crecimiento regulado incrementado impulsado por las inversiones en transmisión en ITC y el crecimiento de clientes en Alberta.
2. ITC estima al menos 3 mil millones de dólares estadounidenses en inversiones para la Tranche 2.1 del LRTP de MISO, con la mayoría esperada después de 2029.
3. Aumento del dividendo por acción ordinaria del cuarto trimestre del 4.2%, marcando 51 años de aumentos consecutivos del dividendo.
4. Guía de crecimiento anual del dividendo de 4-6% extendida hasta 2029.
Se espera que el nuevo plan de capital aumente la base tarifaria a mediados de año de $38.8 mil millones en 2024 a $53.0 mil millones para 2029. El financiamiento provendrá principalmente del flujo de caja de las operaciones y de la deuda regulada.
Fortis Inc. (TSX/NYSE: FTS)은 2025-2029 전망을 발표했습니다. 여기에는 260억 달러의 5개년 자본 계획이 포함되어 있으며, 이는 이전 계획보다 10억 달러 증가한 것입니다. 회사는 2029년까지 연평균 6.5%의 기본 요금 성장률을 예상하고 있습니다. 주요 내용은 다음과 같습니다:
1. ITC의 전송 투자와 알버타의 고객 증가로 인한 규제 성장 증가.
2. ITC는 MISO의 LRTP Tranche 2.1에 대해 최소 30억 달러의 투자를 추정하며, 대부분은 2029년 이후에 예상됩니다.
3. 4분기 보통주 배당금이 4.2% 증가하여 51년 연속 배당금 증가를 기록했습니다.
4. 2029년까지 연간 배당금 성장 가이던스가 4-6% 연장되었습니다.
새로운 자본 계획은 2024년 388억 달러의 중간 요금 기반을 2029년까지 530억 달러로 증가시킬 것으로 예상됩니다. 자금 조달은 주로 운영에서 발생하는 현금과 규제된 부채에서 이루어질 것입니다.
Fortis Inc. (TSX/NYSE: FTS) a annoncé ses prévisions pour la période 2025-2029, avec un plan d'investissement de 26 milliards de dollars sur cinq ans, ce qui représente 1 milliard de dollars de plus que le plan précédent. La société prévoit une croissance annuelle moyenne de la base tarifaire de 6,5% jusqu'en 2029. Les points clés incluent :
1. Croissance réglementée accrue grâce aux investissements de transmission chez ITC et à la croissance des clients en Alberta.
2. ITC prévoit au moins 3 milliards de dollars américains en investissements pour la tranche 2.1 du LRTP de MISO, la majorité étant attendue après 2029.
3. Augmentation du dividende par action ordinaire du quatrième trimestre de 4,2%, marquant 51 années consécutives d'augmentation de dividendes.
4. Prévisions de croissance annuelle du dividende de 4-6% prolongées jusqu'en 2029.
Le nouveau plan d'investissement devrait faire passer la base tarifaire de mi-année de 38,8 milliards de dollars en 2024 à 53,0 milliards de dollars d'ici 2029. Le financement proviendra principalement des flux de trésorerie d'exploitation et de la dette réglementée.
Fortis Inc. (TSX/NYSE: FTS) hat seine Prognose für den Zeitraum 2025-2029 bekannt gegeben, die einen Kapitalplan von 26 Milliarden Dollar über fünf Jahre umfasst, der 1 Milliarde Dollar höher ist als der vorherige Plan. Das Unternehmen prognostiziert ein durchschnittliches jährliches Wachstum der Basisrate von 6,5% bis 2029. Zu den wichtigsten Highlights gehören:
1. Erhöhtes reguliertes Wachstum, das durch Übertragungsinvestitionen bei ITC und das Kundenwachstum in Alberta vorangetrieben wird.
2. ITC schätzt mindestens 3 Milliarden Dollar Investitionen für das LRTP Tranche 2.1 von MISO, wobei die Mehrheit nach 2029 erwartet wird.
3. Erhöhung der Dividende für Stammaktien im vierten Quartal um 4,2%, was 51 Jahre in Folge von Dividendensteigerungen markiert.
4. Prognose für jährliches Dividendenwachstum von 4-6% bis 2029 verlängert.
Der neue Kapitalplan soll die Basisrate zur Jahresmitte von 38,8 Milliarden Dollar im Jahr 2024 auf 53,0 Milliarden Dollar bis 2029 erhöhen. Die Finanzierungsquellen werden hauptsächlich aus dem operativen Cashflow und regulierten Schulden stammen.
- New $26 billion five-year capital plan, $1 billion higher than previous plan
- 6.5% average annual rate base growth projected through 2029
- 4.2% increase in fourth quarter common share dividend
- 51 consecutive years of dividend increases
- Annual dividend growth guidance of 4-6% extended to 2029
- Expected increase in midyear rate base from $38.8 billion in 2024 to $53.0 billion by 2029
- US$3 billion estimated investments for MISO's LRTP Tranche 2.1
- None.
This news release constitutes a "Designated News Release" incorporated by reference in the prospectus supplement dated September 19, 2023 to Fortis' short form base shelf prospectus dated November 21, 2022.
ST. JOHN'S, Newfoundland and Labrador, Sept. 26, 2024 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS), a well-diversified leader in the North American regulated electric and gas utility industry, released its 2025-2029 outlook1.
Highlights
- 2025-2029 capital plan of
$26 billion ,$1 billion higher than prior plan;6.5% average annual rate base growth through 2029 - Incremental regulated growth driven by transmission investments at ITC and customer growth in Alberta
- Beyond the plan ITC also estimates at least US
$3 billion in investments for MISO’s LRTP Tranche 2.1; majority expected post-2029 - Fourth quarter common share dividend increasing by
4.2% , will mark 51 years of consecutive increases in dividends paid - Annual dividend growth guidance of 4
-6% extended to 2029
"Today we are pleased to announce our
"Our regulated growth strategy remains committed to the delivery of reliable and affordable service for our customers and annual dividend growth of 4
New Five-Year Capital Plan
Today the Corporation announced its new 2025-2029 capital plan of
Approximately
The Corporation's five-year capital plan is expected to increase midyear rate base from
The five-year capital plan is expected to be funded primarily by cash from operations and regulated debt. Common equity proceeds are expected to be provided by the Corporation's dividend reinvestment plan, assuming current participation levels. The Corporation’s
_________________________
1 All information referenced is presented in Canadian dollars unless otherwise specified.
MISO Long Range Transmission Plan
In August 2024, MISO concluded its variance analysis, reaffirming the original allocation of projects, including the allocations to ITC. As a result, work on all ITC Tranche 1 projects in Iowa has resumed. The variance analysis was conducted by MISO as a result of the inability to construct LRTP Tranche 1 projects in Iowa due to ongoing legal proceedings. Total Tranche 1 investments of US
Based on the final portfolio provided by MISO as of September 24, 2024 and subject to MISO Board approval anticipated in late 2024, ITC also estimates at least US
Opportunities to Expand and Extend Growth
Beyond the five-year capital plan, opportunities to expand and extend growth include: further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy, transmission investments associated with the MISO LRTP Tranches 1, 2.1 and 2.2 as well as regional transmission in New York; climate adaptation and grid resiliency investments; renewable gas solutions and liquefied natural gas infrastructure in British Columbia; and the acceleration of cleaner energy infrastructure and load growth investments across our jurisdictions.
Dividends and Dividend Guidance
The Board of Directors of Fortis Inc. has declared the following dividends payable on December 1, 2024 to the Shareholders of Record of the following Shares of the Corporation at the close of business on November 18, 2024:
$0.30 63 per share on the First Preference Shares, Series "F";
$0.38 26875 per share on the First Preference Shares, Series "G";
$0.11 469 per share on the First Preference Shares, Series "H";
$0.36 5184 per share on the First Preference Shares, Series "I";
$0.29 69 per share on the First Preference Shares, Series "J";
$0.34 18125 per share on the First Preference Shares, Series "K";
$0.24 45625 per share on the First Preference Shares, Series "M"; and,
$0.61 5 per share on the Common Shares.
The Corporation has designated the common share dividend and preference share dividends as eligible dividends for federal and provincial dividend tax credit purposes. All amounts are given in Canadian dollars unless otherwise indicated.
The common share dividend declared of
About Fortis
Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of
Fortis shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.
Forward-Looking Information
Fortis includes forward-looking information in this media release within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would, and the negative of these terms, and other similar terminology or expressions, have been used to identify the forward-looking information, which includes, without limitation: forecast capital expenditures for 2025-2029, including energy transition investments; forecast rate base and rate base growth for 2024 through 2029; annual dividend growth guidance through 2029; the expected sources of funding for the capital plan, including sources of common equity proceeds; and the nature, timing, benefits and expected costs of certain capital projects, including ITC's transmission projects associated with MISO LRTP Tranches 1 & 2.1 and resiliency and distribution investments in Alberta, and additional opportunities beyond the capital plan, including transmission investments associated with the MISO LRTP, Tranches 1, 2.1 and 2.2., regional transmission in New York, climate adaptation and grid resiliency investments, renewable gas solutions and liquefied natural gas infrastructure investments in British Columbia, and the acceleration of cleaner energy infrastructure and load growth investments.
Forward-looking information involves significant risks, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: reasonable outcomes for legal and regulatory proceedings and the expectation of regulatory stability; the successful execution of the capital plan; no material capital project and financing cost overrun; sufficient human resources to deliver service and execute the capital plan; the realization of additional opportunities beyond the capital plan; no significant variability in interest rates; no material changes in the assumed U.S. dollar to Canadian dollar exchange rate; assumed continuation of current participation levels in the Corporation's dividend reinvestment plan; and the Board exercising its discretion to declare dividends, taking into account the business performance and financial condition of the Corporation. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. For additional information with respect to certain risk factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this news release. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/54d9621c-5b45-4f92-abb8-b397951e189d
For more information, please contact:
| Investor Enquiries: | Media Enquiries: |
| Ms. Stephanie Amaimo | Ms. Karen McCarthy |
| Vice President, Investor Relations | Vice President, Communications & Government Relations |
| Fortis Inc. | Fortis Inc. |
| 248.946.3572 | 709.737.5323 |
| investorrelations@fortisinc.com | media@fortisinc.com |
FAQ
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