Fortis Inc. (Fortis) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
The company serves 3.5 million utility customers in five Canadian provinces, ten U.S. states and three Caribbean countries. As of December 31, 2024, 69% of the company’s assets were located outside Canada and 62% of 2024 revenue was derived from foreign operations.
Fortis is principally an energy delivery company, with 93% of its assets related to transmission and dis...
Fortis Inc. (Fortis) operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries.
The company serves 3.5 million utility customers in five Canadian provinces, ten U.S. states and three Caribbean countries. As of December 31, 2024, 69% of the company’s assets were located outside Canada and 62% of 2024 revenue was derived from foreign operations.
Fortis is principally an energy delivery company, with 93% of its assets related to transmission and distribution.
The company regulated utility businesses are: ITC (ITC Holdings together with all of its subsidiaries) (electric transmission - Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin); UNS Energy Corporation (UNS Energy) (integrated electric and natural gas distribution - Arizona); Central Hudson Gas & Electric Corporation (Central Hudson) (electric transmission and distribution, and natural gas distribution - New York State); FortisBC Energy Inc. (FortisBC Energy) (natural gas transmission and distribution - British Columbia); FortisAlberta Inc. (FortisAlberta) (electric distribution - Alberta); FortisBC Electric (collectively, the operations of FortisBC Inc. and its parent company, FortisBC Pacific Holdings Inc.) (integrated electric - British Columbia); Newfoundland Power (integrated electric - Newfoundland and Labrador); Maritime Electric (integrated electric - Prince Edward Island); FortisOntario (integrated electric - Ontario); Caribbean Utilities (Caribbean Utilities Company, Ltd.) (integrated electric - Grand Cayman); and FortisTCI (collectively, FortisTCI Limited and Turks and Caicos Utilities Limited) (integrated electric - Turks and Caicos Islands). Fortis also holds equity investments in Wataynikaneyap Power (electric transmission - Ontario) and Belize Electricity (integrated electric - Belize).
The company’s non-regulated business is limited to Fortis Belize (three hydroelectric generation facilities - Belize).
Seasonality
As the company’s subsidiaries operate in various jurisdictions throughout North America, seasonality impacts each utility differently.
Regulated Utilities
ITC's business consists mainly of electric transmission operations. ITC's Regulated Operating Subsidiaries own and operate high-voltage electric transmission systems in Michigan's Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma and Wisconsin that transmit electricity from generating stations to local distribution facilities connected to ITC's transmission systems. The primary operating responsibilities of ITC's Regulated Operating Subsidiaries include maintaining, improving and expanding transmission systems to meet their customers’ ongoing needs, managing and scheduling maintenance and construction, maintaining appropriate system voltages and monitoring flows over transmission lines and other facilities to ensure physical limits are not exceeded. ITC owns and operates approximately 26,100 circuit km of transmission lines.
ITC's Regulated Operating Subsidiaries earn revenues from the use of their transmission systems by customers, including investor-owned utilities, municipalities, cooperatives, power marketers and alternative energy suppliers. As independent transmission companies, ITC's Regulated Operating Subsidiaries are subject to rate regulation by FERC. ITC's principal transmission service customers are DTE Electric Company (DTE), Consumers Energy Company(CMS) and Interstate Power and Light Company(IPL).
Market and Sales
ITC derives nearly all of its revenues from transmission, scheduling, control and dispatch services and other related services over ITC's Regulated Operating Subsidiaries' transmission systems to DTE, CMS, IPL and other entities, such as alternative energy suppliers, power marketers and other wholesale customers that provide electricity to end-use customers, as well as from transaction-based capacity reservations on ITC's transmission systems. MISO and SPP are responsible for billing and collecting the majority of transmission service revenues. As the billing agents for ITC's MISO Regulated Operating Subsidiaries and ITC Great Plains, MISO and SPP collect fees for the use of ITC's transmission systems, invoicing DTE, CMS, IPL and other customers on a monthly basis.
Contracts
ITCTransmission
DTE operates an electric distribution system that is interconnected with ITCTransmission's transmission system.
METC
CMS operates an electric distribution system that interconnects with METC's transmission system. Michigan Electric Transmission Company (METC) is a party to a number of operating contracts with CMS that govern the operations and maintenance of its transmission system. These contracts include:
Amended and Restated Easement Agreement - Consumers Energy Company (CMS) provides METC with an easement to the land on which a majority of METC's transmission towers, poles, lines and other transmission facilities used to transmit electricity for CMS and others are located. METC pays CMS an annual rent for the easement and also pays for any rentals, property taxes and other fees related to the property covered by the agreement.
ITC Midwest LLC (ITC Midwest)
IPL operates an electric distribution system that interconnects with ITC Midwest's transmission system. ITC Midwest is a party to a number of operating contracts with IPL that govern the operations and maintenance of their respective systems.
UNS Energy Corporation (UNS Energy)
UNS Energy is a vertically integrated utility services holding company, headquartered in Tucson, Arizona. It engages through its subsidiaries in the regulated electric generation and energy delivery business, primarily in the State of Arizona, serving approximately 727,000 retail electricity and gas customers. UNS Energy primarily consists of three wholly owned regulated utilities: TEP, UNS Electric and UNS Gas.
Tucson Electric Power Company (TEP) is a vertically integrated regulated electric utility that generates, transmits and distributes electricity. TEP serves approximately 452,000 retail customers in a territory comprising approximately 2,991 square km in southeastern Arizona, including the greater Tucson metropolitan area. TEP also sells wholesale electricity to other entities in the western U.S.
UNS Electric, Inc. (UNS Electric) is a vertically integrated regulated electric utility that generates, transmits and distributes electricity to approximately 105,000 retail customers in southeastern Arizona.
Tucson Electric Power Company(TEP) and UNS Electric own generation resources with an aggregate capacity of 3,442 MW, including 318 MW of renewable resources. Several of the generating assets in which TEP and UNS Electric have an interest are jointly owned. As of December 31, 2024, approximately 26% of the generating capacity was fueled by coal.
TEP also owns transmission-related assets representing approximating 14% of UNS Energy's total assets.
UNS Gas, Inc. (UNS Gas) is a regulated gas distribution utility that serves approximately 170,000 retail customers in northern and southern Arizona.
Market and Sales
UNS Energy's electricity sales were 16,680 Gigawatt hour (GWh) in 2024.
Power Supply
TEP meets the electricity supply requirements of its retail and wholesale customers with its owned electrical generating capacity of 3,126 Megawatt (MW) and its transmission and distribution system consisting of approximately 16,000 circuit Kilometer (km) of line. In 2024, TEP met a peak demand of 2,764 MW, which includes firm sales to wholesale customers. TEP is a member of a regional reserve-sharing organization and has reliability and power sharing relationships with other utilities.
UNS Electric meets the electricity supply requirements of its retail customers with its owned electrical generating capacity of 316 MW and purchasing power on the wholesale market, and its transmission and distribution system consisting of approximately 7,000 circuit km of line. In 2024, UNS Electric met a peak demand of 527 MW.
Utility-Owned Renewable and Battery Resources
TEP owns 307 MW of renewable generation resources, has 3 MW of solar generation resources under development and two-200 MW battery storage projects under development at its BESS Facility with planned 2025 and 2026 in-service dates. UNS Electric owns 11 MW of solar generation capacity.
Renewable and Battery Storage Power Purchase Agreements
TEP has renewable PPAs of 256 MW from solar resources and 179 MW from wind resources. The solar PPAs contain options that allow TEP to purchase all or part of the related facilities at a future date. The Babacomari North, Wilmot II and the Winchester solar facilities are expected to be placed in service in 2025, 2026 and 2027, respectively, and are expected to add 340 MW to TEP's renewable capacity. UNS Electric has renewable PPAs of 83 MW from solar resources and 10 MW from wind resources. TEP has PPAs for battery storage of 40 MW located on renewable sites, with 180 MW of battery storage under development at Wilmot II and Winchester.
Gas Purchases
TEP and UNS Gas directly manage their gas supply and transportation contracts. The price for gas varies based on market conditions, which include weather, supply balance, economic growth rates and other factors. TEP and UNS Gas hedge their gas supply prices by entering into fixed-price forward contracts, collars and financial swaps from time to time, up to three years in advance, with a view to hedging 70-90% of expected monthly energy volumes prior to the beginning of each month.
Central Hudson Gas & Electric Corporation (Central Hudson)
Central Hudson is a regulated electric and gas transmission and distribution utility serving approximately 315,000 electricity customers and 90,000 natural gas customers in portions of New York State's Mid-Hudson River Valley. Central Hudson serves a territory of approximately 6,700 square km. Electric service is available throughout the territory, and natural gas service is provided in and around the cities of Poughkeepsie, Beacon, Newburgh and Kingston, New York, and in certain outlying and intervening territories.
Central Hudson's electric transmission and distribution system consists of approximately 15,300 circuit km of line and met a peak demand of 1,103 MW in 2024.
Central Hudson's natural gas system consists of approximately 2,400 km of T&D pipelines and met a peak demand of 137 Terajoule (TJ) in 2024.
Market and Sales
Central Hudson's electricity sales were 5,060 GWh in 2024. Natural gas sales volumes were 25 Petajoule (PJ) in 2024.
Power Supply
Central Hudson relies on purchased capacity and energy from third-party providers, together with its own minimal generating capacity, to meet the demands of its full-service customers.
FortisBC Energy
FortisBC Energy (collectively, the operations of FortisBC Inc. and its parent company, FortisBC Pacific Holdings Inc.) is the largest distributor of natural gas in British Columbia, serving approximately 1,098,000 residential, commercial, industrial, and transportation customers. FortisBC Energy provides transmission and distribution services to customers and obtains natural gas and renewable gas supplies on behalf of most of its residential, commercial and industrial customers. Gas supplies are sourced primarily from northeastern British Columbia and, through FortisBC Energy's Southern Crossing Pipeline, from Alberta. FortisBC Energy owns and operates approximately 51,700 km of natural gas pipelines and met a peak demand of 1,705 TJ in 2024.
Market and Sales
FortisBC Energy's natural gas sales volumes were 220 PJ in 2024.
Gas Purchase Agreements
To ensure supply of adequate resources for reliable natural gas deliveries to its customers, FortisBC Energy purchases natural gas supply from counterparties, including producers, aggregators and marketers. FortisBC Energy contracts for approximately 184 PJ of baseload and seasonal supply, of which the majority is sourced in northeastern British Columbia and transported on Westcoast Energy Inc.'s T-South pipeline system. The remainder is sourced in Alberta and transported on TC Energy's pipeline transportation system. FortisBC Energy purchased approximately 2.7 PJs of RNG in 2024.
FortisBC Energy procures and delivers natural gas directly to core market customers. Transportation customers are responsible to procure and deliver their own natural gas to the FortisBC Energy system and FortisBC Energy then delivers the gas to the operating premises of these customers. FortisBC Energy contracts for transportation capacity on third-party pipelines, such as the T-South pipeline and the TC Energy pipeline, to transport gas supply from various market hubs to FortisBC Energy's system. These third-party pipelines are regulated by the Canada Energy Regulator. FortisBC Energy pays both fixed and variable charges for the use of transportation capacity on these pipelines, which are recovered through rates paid by FortisBC Energy's core market customers. FortisBC Energy contracts for firm transportation capacity to ensure it is able to meet its obligation to supply customers within its broad operating region under all reasonable demand scenarios.
Gas Storage and Peak Shaving Arrangements
FortisBC Energy Inc. (FortisBC Energy) incorporates peak shaving and gas storage facilities into its portfolio to: supplement contracted base load and seasonal gas supply in the winter months, while injecting excess base load supply to refill storage in the summer months; mitigate the risk of supply shortages during cooler weather and peak demand; manage the cost of gas during the winter months; and balance daily supply and demand on the distribution system during periods of peak use that occur during the winter months.
FortisBC Energy holds approximately 37 PJs of total storage capacity. FortisBC Energy owns Tilbury and Mount Hayes LNG peak shaving facilities, which provide on-system storage capacity and deliverability. FortisBC Energy also contracts for underground storage capacity and deliverability from parties in northeastern British Columbia, Alberta and the Pacific Northwest of the U.S. On a combined basis, FortisBC Energy's Tilbury and Mount Hayes facilities, the contracted storage facilities and other peaking arrangements can deliver up to 0.82 PJs per day of supply to FortisBC Energy on the coldest days of the heating season. The heating season typically occurs during the period from December to February.
Mitigation Activities
FortisBC Energy engages in off-system sales activities that allow for the recovery or mitigation of costs of any unutilized supply and/or pipeline and storage capacity that is available once customers' daily load requirements are met.
The British Columbia Utilities Commission (BCUC) has approved extensions of the program through October 31, 2025.
FortisAlberta
FortisAlberta is a regulated electricity distribution utility operating in Alberta. Its business is the ownership and operation of electric distribution facilities that distribute electricity, generated by other market participants, from high-voltage transmission substations to end-use customers. FortisAlberta is not involved in the generation, transmission or direct retail sale of electricity. FortisAlberta operates the electricity distribution system in a substantial portion of southern and central Alberta around and between the cities of Edmonton and Calgary, totalling approximately 91,100 circuit km of distribution lines. FortisAlberta's distribution network serves approximately 603,000 customers and met a peak demand of 2,867 MW in 2024.
Market and Sales
FortisAlberta's energy deliveries were 17,324 GWh in 2024 compared to 16,976 GWh in 2023.
Franchise Agreements
FortisAlberta customers located within a city, town, village or summer village boundary are served under franchise agreements between FortisAlberta and the respective customers' municipality of residence. FortisAlberta maintains standard franchise agreements with many municipalities throughout Alberta. FortisAlberta holds franchise agreements with 163 municipalities within its service area. The franchise agreements include 10-year terms with an option to renew for up to two subsequent five-year terms.
FortisBC Electric
FortisBC Electric is an integrated regulated electric utility that owns hydroelectric generating plants, high voltage transmission lines and a large network of distribution assets located in the southern interior of British Columbia. FortisBC Electric serves approximately 195,000 customers and met a peak demand of 818 Megawatt (MW) in 2024. FortisBC Electric's transmission and distribution assets include approximately 7,400 circuit km of transmission and distribution (T&D) lines.
FortisBC Electric is also responsible for operation, maintenance and management services at the 493-MW Waneta hydroelectric generating facility owned by BC Hydro and the 340-MW Waneta Expansion, the 149-MW Brilliant hydroelectric plant, the 120-MW Brilliant hydroelectric expansion plant and the 185-MW Arrow Lakes generating station, all ultimately owned by Columbia Basin Trust and Columbia Power Corporation.
Market and Sales
Electricity sales were 3,513 GWh in 2024.
Generation and Power Supply
FortisBC Electric meets the electricity supply requirements of its customers through a mix of its own generation and PPAs. FortisBC Electric owns four regulated hydroelectric generating plants on the Kootenay River with an aggregate capacity of 225 MW, which provide approximately 41% of its energy needs and 25% of its peak capacity needs. FortisBC Electric meets the balance of its requirements through a portfolio of long-term and short-term PPAs.
FortisBC Electric's four hydroelectric generating facilities are governed by the multiparty CPA that enables the five separate owners of nine major hydroelectric generating plants, with a combined capacity of approximately 1,900 MW and located in relatively close proximity to each other, to coordinate the operation and dispatch of their generating plants.
Brilliant Power Corporation, Brilliant Expansion Power Corporation, Teck Metals Ltd., Waneta Expansion Power Corporation and FortisBC Electric are collectively defined in the CPA as the entitlement parties. The CPA enables BC Hydro and the entitlement parties to generate more power from their respective generating plants than they could if they operated independently through coordinated use of water flows, subject to the 1961 Columbia River Treaty between Canada and the U.S., and coordinated operation of storage reservoirs and generating plants. Under the CPA, BC Hydro takes into its system all power actually generated by the plants listed in the table above. In exchange for permitting BC Hydro to determine the output of these facilities, each of the entitlement parties is contractually entitled to a fixed annual entitlement of capacity and energy from BC Hydro, which is based on 50-year historical water flows and the plants' generating capabilities. The entitlement parties receive their defined entitlements irrespective of actual water flows to the entitlement parties' generating plants. BC Hydro enjoys the benefits of the additional power generated through coordinated operation and optimal use of water flows.
FortisBC Electric's remaining electricity supply is acquired primarily through long-term PPAs with a number of counterparties, including the Brilliant PPA, the BC Hydro PPA and the Waneta Expansion Capacity Agreement. Additionally, FortisBC Electric purchases capacity and energy from the market to meet its peak energy requirements and optimize its overall power supply portfolio.
Other Electric
Other Electric consists of utilities in eastern Canada and the Caribbean as follows Newfoundland Power Inc. (Newfoundland Power); Maritime Electric Company, Limited (Maritime Electric); FortisOntario Inc. (FortisOntario); a 39 % equity investment in Wataynikaneyap Power Limited Partnership (Wataynikaneyap Power); an approximate 60 % controlling interest in Caribbean Utilities Company, Ltd. (Caribbean Utilities); FortisTCI Limited and Turks and Caicos Utilities Limited (collectively, FortisTCI); and a 33 % equity investment in Belize Electricity Limited (Belize Electricity).
Newfoundland Power is an integrated regulated electric utility and the principal distributor of electricity on the island portion of Newfoundland and Labrador. Maritime Electric is an integrated regulated electric utility and the principal distributor of electricity on PEI. FortisOntario provides integrated electric utility service through its three regulated operating utilities primarily in Fort Erie, Port Colborne, Cornwall, Gananoque, and the District of Algoma in Ontario.
Wataynikaneyap Power is a transmission company majority-owned by 24 First Nations communities (51%), in partnership with FortisOntario (39%) and Algonquin Power & Utilities Corp. (10%). The 1,800 KM Wataynikaneyap Power transmission line was completed in the second quarter of 2024 and will connect 17 remote First Nations communities to the Ontario power grid.
Caribbean Utilities is an integrated regulated electric utility and the sole provider of electricity on Grand Cayman, Cayman Islands. FortisTCI is an integrated regulated electric utility on the Turks and Caicos Islands. Belize Electricity is an integrated electric utility and the principal distributor of electricity in Belize.
Both Wataynikaneyap Power and Belize Electricity are excluded from the following discussion as Fortis holds minority interests in these entities.
Market and Sales
Electricity sales attributable to Other Electric were 9,879 GWh in 2024.
Power Supply
Newfoundland Power
Approximately 93% of Newfoundland Power's energy requirements are purchased from Newfoundland and Labrador Hydro Corporation (NL Hydro) with the remaining 7% generated by Newfoundland Power. The principal terms of the supply arrangements with NL Hydro are regulated by the PUB on a basis similar to that upon which Newfoundland Power's service to its customers is regulated.
NL Hydro charges Newfoundland Power for purchased power and includes charges for both demand and energy purchased. The demand charge is based on the peak billing demand for the most recent winter season. The existing energy charge is a two-block charge with a higher second block charge set to reflect NL Hydro's marginal cost of generating electricity.
On January 16, 2025, the PUB approved the Corporation and NL Hydro's applications to establish a new wholesale rate effective January 1, 2025.
Energy from the Muskrat Falls project supplies a significant portion of NL Hydro's electricity requirements and, in turn, Newfoundland Power's electricity requirements. All units of NL Hydro's Muskrat Falls generating facility have been released for service. In October 2022, NL Hydro filed an updated study with the PUB recommending, among other things, that its 490 MW Holyrood Thermal Generating Station remain operational until 2030 as backup generation in the event of an extended outage to the Labrador Island Link. The Government of Newfoundland and Labrador announced the finalization of its rate mitigation plan in respect of the Muskrat Falls project in May 2024. The plan came into effect on July 1, 2024 and limits annual domestic customer rate increases associated with the Muskrat Falls project and NL Hydro’s operations to 2.25% until 2030. The impact of the Muskrat Falls project on customer rates beyond 2030 remains uncertain.
Maritime Electric
Maritime Electric is interconnected to the Province of New Brunswick via four provincially owned submarine cables with a total capacity of 560 MW. The company purchases its energy requirements through energy purchase agreements with NB Power, a New Brunswick Crown corporation, and from renewable energy facilities owned by the PEI Energy Corporation. Company-owned on-island generation facilities totalling 90 MW are used primarily for peaking, submarine-cable loading issues and emergency purposes.
Maritime Electric has the following contracts with NB Power an energy supply agreement covering the period March 1, 2019, to December 31, 2026; a transmission capacity contract allowing Maritime Electric to reserve 30 MW of capacity to PEI expiring November 2032; and an entitlement agreement for approximately 4.55% of the output from NB Power's Point Lepreau Nuclear Generating Station for the life of the unit. Maritime Electric also has several renewable energy contracts with the PEI Energy Corporation for the purchase of energy for remaining periods ranging from one to 1 5 years.
FortisOntario
The power requirements of FortisOntario's service territories are met through various sources. Canadian Niagara Power purchases all its power requirements for Fort Erie and Port Colborne from the IESO, purchases approximately 79% of energy requirements for the Gananoque region from Hydro One Networks Inc. and purchases the remaining 21% from five hydroelectric generating plants owned by EO Generation LP. Algoma Power purchases its energy requirements primarily from the IESO.
Cornwall Electric purchases substantially all of its power requirements from Hydro-Québec Energy Marketing under a contract that expires in December 2030 and which provides a minimum of 537 GWh of energy per year and up to 145 MW of capacity at any one time.
Caribbean Utilities
Caribbean Utilities relies upon in-house diesel-powered generation to produce electricity for its customers. Caribbean Utilities is party to primary and secondary fuel supply contracts with two different suppliers from whom it is committed to purchasing 60% and 40%, respectively, of its diesel fuel requirements for its diesel-powered generating plant. In October 2024, Caribbean Utilities executed new fuel supply contracts with these two suppliers, each with a term of 36 months.
FortisTCI
FortisTCI relies upon in-house diesel-powered generation to produce electricity for its customers. FortisTCI's generating capacity increased in 2024 due to the commissioning of: a new 9.4 MW Wartsila engine; and a 1.2 MW ground mounted solar photovoltaic system on the island of North Caicos. FortisTCI's BESS Micrgrid project is scheduled for completion in 2025. FortisTCI has installed 2.7 MW of rooftop solar in partnership with customers under its Utility Owned Renewable Energy Program.
FortisTCI continues to engage with the Government of the Turks and Caicos Islands on regulatory reform to enable further development of renewable energy resources.
FortisTCI has contracted with a major supplier for all its diesel fuel requirements for electricity generation. The current contract expires in August 2025 and negotiations are ongoing for a one-year renewal.
Non-Regulated
Corporate and Other
The generation assets include three hydroelectric generating facilities with a combined generating capacity of 51 MW, held through Fortis Belize, the output of which is sold to Belize Electricity under 50-year PPAs expiring in 2055 and 2060.
Market and Sales
Energy sales were 215 GWh in 2024.
History
Fortis Inc. was founded in 1885. The company was incorporated in 1977.
