Fortis Inc. Provides New Five-year Capital Outlook, Extends Dividend Guidance and Announces Target to Reduce Carbon Emissions

Highlights

• Five-year capital investment plan of $19.6 billion, up $800 million from the prior year's plan
• Fourth quarter 2020 common share dividend of $0.505, representing a 5.8% increase
• Average annual dividend growth guidance of 6% extended to 2025
• New 75% carbon emissions reduction target by 2035 compared to 2019

ST. JOHN'S, Newfoundland and Labrador, Sept. 23, 2020 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) today announced its new five-year capital investment plan of $19.6 billion for the period 2021 to 2025, up $800 million from the prior year's plan. Consolidated rate base is projected to increase from $30.2 billion in 2020 to $36.4 billion in 2023 and $40.3 billion in 2025, translating into three and five-year compound annual growth rates of 6.5% and 6.0%, respectively.

"With nearly $20 billion of capital planned over the next five years, our customers will continue to benefit from the safe, reliable and affordable service we provide," said Barry Perry, President and CEO, Fortis. "The new five-year plan supports our investment-grade credit ratings and dividend growth, providing stability for our shareholders."

The five-year capital plan includes investments of $5.1 billion at ITC for electric transmission infrastructure to expand system capacity, improve reliability through system upgrades and provide customers access to more cost-effective renewable energy. At FortisBC we expect to invest $4.4 billion in natural gas and electric infrastructure including investments to improve gas line safety and integrity, new natural gas storage to improve resiliency and infrastructure to serve customer-owned LNG export facilities. At UNS Energy in Arizona, we expect to invest $3.8 billion in transmission, distribution and generation infrastructure to support a cleaner energy future. The capital investment plan is expected to be primarily funded with cash from operations, debt raised at the utilities and common equity from the Corporation's dividend reinvestment plan.

The Corporation continues to monitor current impacts of the COVID-19 pandemic. Our utilities are keeping the health and safety of our employees and customers at the forefront while we deliver essential electricity and natural gas to homes and businesses across North America. Major capital projects are progressing as planned and remain on track. Our $4.3 billion capital expenditure plan for 2020 remains on target and is expected to grow rate base this year by approximately 8%.