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Fortis Inc. Reports Fourth Quarter & Annual 2024 Results
FTSFortis(FTS) Newsfilter·2025-02-14 11:00

Core Insights - Fortis Inc. reported strong financial performance for 2024, with net earnings of 1.6billion,or1.6 billion, or 3.24 per common share, reflecting a growth from 1.5billion,or1.5 billion, or 3.10 per common share in 2023 [4][6][8] - The company executed a 5.2billioncapitalprogramandisfocusedona5.2 billion capital program and is focused on a 26 billion five-year capital plan aimed at supporting annual dividend growth guidance of 4-6% through 2029 [3][10][16] Financial Performance - Net earnings for the fourth quarter of 2024 were 396million,or396 million, or 0.79 per common share, compared to 381million,or381 million, or 0.78 per common share in the same period of 2023, driven by rate base growth and new customer rates [5][8] - Adjusted net earnings for 2024 were 1.6billion,or1.6 billion, or 3.28 per common share, representing a 6% increase from 3.09in2023[6][8]−Capitalexpendituresfor2024totaled3.09 in 2023 [6][8] - Capital expenditures for 2024 totaled 5.2 billion, contributing to a 6% annual rate base growth, increasing the midyear rate base to 39billion[9][10]CapitalExpendituresandProjects−Thefive−yearcapitalplanof39 billion [9][10] Capital Expenditures and Projects - The five-year capital plan of 26 billion is 1billionhigherthanthepreviousplan,drivenbyMISOlong−rangetransmissionplanprojectsandcustomergrowthinvestments[10][11]−SignificantprojectsincludetheEagleMountainPipeline,transmissionreliabilityprojectsatITC,andthecompletionoftheWataynikaneyapTransmissionPowerproject,whichconnects17FirstNationscommunitiestotheOntariopowergrid[9][10]RegulatoryUpdates−InOctober2024,FERCrevisedthebaseROEforMISOtransmissionowners,impactingFortiswithanafter−taxearningseffectofapproximately1 billion higher than the previous plan, driven by MISO long-range transmission plan projects and customer growth investments [10][11] - Significant projects include the Eagle Mountain Pipeline, transmission reliability projects at ITC, and the completion of the Wataynikaneyap Transmission Power project, which connects 17 First Nations communities to the Ontario power grid [9][10] Regulatory Updates - In October 2024, FERC revised the base ROE for MISO transmission owners, impacting Fortis with an after-tax earnings effect of approximately 22 million [13] - The Arizona Corporation Commission approved a formula rate plan expected to improve rate stability for customers, with UNS Gas proposing an annual rate adjustment mechanism [14] Environmental Commitment - Fortis has reduced its corporate-wide direct greenhouse gas emissions by 34% from a 2019 base year, with targets to further reduce emissions by 50% by 2030 and 75% by 2035 [18]