Fortis Inc. Provides New Five-year Capital Outlook, Extends Dividend Guidance and Announces Target to Reduce Carbon Emissions - Seite 2

Corporate-Wide Carbon Emissions Reduction Target Established

Today the Corporation is building on its low emissions profile by establishing an aggressive corporate-wide target to reduce carbon emissions by 75% by 2035 from a 2019 base year. Fortis expects to achieve the target through delivering on Tucson Electric Power's goal to reduce carbon emissions by exiting coal generation and adding approximately 2,400 megawatts of wind and solar power systems and 1,400 megawatts of energy storage systems. Clean energy initiatives across the Corporation's other utilities will also contribute to achieving this goal.

"Today we are committing to a sustainable future with our new emissions reduction target which will provide our customers and communities with cleaner energy," said Perry. "By 2035, virtually all of the Corporation’s business will be comprised of energy delivery and renewable, carbon-free generation."

Executing on this carbon emissions reduction target as well as key industry trends including asset resiliency, grid modernization and the delivery of cleaner energy are expected to enhance our organic growth strategy and drive incremental investments beyond the five-year capital plan giving the Corporation confidence in its long-term growth profile.

Dividends and Dividend Guidance

The Board declared a common share dividend of $0.505 per share on the issued and outstanding fully paid common shares of the Corporation, representing a 5.8% increase in the quarterly dividend, payable on December 1, 2020 to the common Shareholders of Record at the close of business on November 18, 2020. In addition, the Corporation has extended its targeted average annual dividend per common share growth of approximately 6% to 2025 based on a 2020 annualized dividend of $1.91. Effective December 1, 2020, the 2% discount offered on common share issuances under the dividend reinvestment plan will be reinstated.

The continuation of dividend growth guidance is premised on several assumptions, including the continued good performance of our utilities, growth in our service territories, the expectation of reasonable outcomes for regulatory proceedings, no material impacts of the COVID-19 pandemic and the successful execution of the Corporation's five-year capital investment plan.

The Board has declared the following dividends:

1. $0.3063 per share on the First Preference Shares, Series "F" of the Corporation, payable on December 1, 2020 to the Shareholders of Record at the close of business on November 18, 2020;