Mr. David Hutchens reports

FORTIS INC. ANNOUNCES NEW $25 BILLION FIVE YEAR CAPITAL OUTLOOK AND 4.4% INCREASE IN FOURTH QUARTER DIVIDEND MARKING 50 YEARS OF DIVIDEND INCREASES

Fortis Inc. has released its outlook for 2024 to 2028.

Highlights:

• 2024-to-2028 capital plan of $25-billion, representing 6.3-per-cent rate base growth; up $2.7-billion from 2023-to-2027 five-year plan;
• Growth largely driven by investments in transmission in the U.S. Midwest and resource transition plan in Arizona;
• Fourth quarter common share dividend increasing by 4.4 per cent; will mark 50 years of consecutive increases in dividends paid;
• Annual dividend growth guidance of 4 per cent to 6 per cent extended to 2028.

"Our board of directors declared a fourth quarter dividend representing a 4.4-per-cent increase that will mark 50 years of consecutive increases in dividends paid," said David Hutchens, president and chief executive officer of Fortis. "This makes Fortis one of only two companies listed on the Toronto Stock Exchange to reach this significant milestone."

"Our sustainable regulated growth strategy is focused on delivering cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4 per cent to 6 per cent through 2028," said Mr. Hutchens.

New five-year capital plan

The corporation has announced its new 2024-to-2028 capital plan of $25-billion, the largest in the corporation's history and $2.7-billion higher than the previous five-year plan. The increase is supported by the Inflation Reduction Act of 2022 and largely reflects regional transmission projects at ITC associated with tranche 1 of the Midcontinent Independent System Operator Inc. long-range transmission plan as well as investments in Arizona to support Tucson Electric Power's exit from coal. Investments supporting system adaptation and resiliency, customer growth, and economic development are also driving growth across Fortis's entire footprint.

The five-year capital plan is low risk and highly executable, with nearly 100 per cent of regulated investments and 18 per cent relating to major capital projects. Approximately 27 per cent of the five-year capital plan is allocated to cleaner energy investments focused on connecting renewables to the grid, renewable and storage investments in Arizona and the Caribbean, and cleaner fuel solutions in British Columbia. The corporation's $25-billion five-year capital plan is expected to increase midyear rate base from $36.8-billion in 2023 to $49.4-billion by 2028, translating into a five-year compound annual growth rate of 6.3 per cent on a constant foreign exchange basis. The plan maintains a focus on customer affordability while ensuring reliable and resilient energy delivery service as the corporation transitions to a cleaner energy future.

The five-year capital plan is expected to be financed primarily by cash from operations and regulated debt. Common equity proceeds are expected to be sourced from the corporation's dividend reinvestment plan and an at-the-market common equity program.

Beyond the five-year capital plan, additional opportunities to expand and extend growth include: further expansion of the electric transmission grid in the United States to facilitate the interconnection of cleaner energy, including infrastructure investments associated with the Inflation Reduction Act of 2022 and the Midcontinent Independent System Operator long-range transmission plan; climate adaptation and grid resiliency investments; renewable gas solutions and liquefied natural gas infrastructure in British Columbia; and the acceleration of cleaner energy infrastructure investments across Fortis's jurisdictions.

Dividends and dividend guidance

The board of directors of Fortis declared a common share dividend of 59 cents per share on the issued and outstanding fully paid common shares of the corporation, representing an approximately 4.4-per-cent increase in the quarterly dividend, payable on Dec. 1, 2023, to the common shareholders of record at the close of business on Nov. 17, 2023, marking 50 consecutive years of increased dividends.

The company has declared the dividends as follows:

• 30.63 cents per share on the first preference shares, Series F, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 38.26875 cents per share on the first preference shares, Series G, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 11.469 cents per share on the first preference shares, Series H, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 40.6571 cents per share on the first preference shares, Series I, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 29.69 cents per share on the first preference shares, Series J, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 24.55625 cents per share on the first preference shares, Series K, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 24.45625 cents per share on the first preference shares, Series M, of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023;
• 59 cents per share on the common shares of the corporation, payable on Dec. 1, 2023, to the shareholders of record at the close of business on Nov. 17, 2023.

The corporation has designated the common share dividend and preference share dividends as eligible dividends for federal and provincial dividend tax credit purposes.

Fortis expects its long-term growth in rate base will drive earnings that support annual dividend growth. The corporation's annual dividend growth guidance of 4 per cent to 6 per cent has been extended one year through 2028.

About Fortis Inc.

Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2022 revenue of $11-billion and total assets of $64-billion as at June 30, 2023. The corporation's 9,200 employees serve utility customers in five Canadian provinces, 10 U.S. states and three Caribbean countries.

Fortis shares are listed on the Toronto Stock Exchange and the New York Stock Exchange and trade under the symbol FTS.

We seek Safe Harbor.