Fortis (Canada) Launches $25 Billion Capital Plan with Renewables Focus
Fortis (Canada) announces a $25 billion capital plan with a strong focus on renewable energy, aiming for sustained growth and shareholder satisfaction.
Fortis (Canada) has recently announced a new five-year capital plan valued at 25 billion Canadian dollars ($18.54 billion). This comprehensive plan includes a heightened emphasis on renewable energy investments, as well as various other ventures throughout Canada and the United States.
The distinguished Canadian regulated electric and gas utility company has outlined a low-risk and highly-executable plan. Notably, approximately 27% of the allocated funds will be dedicated to cleaner energy investments, primarily focused on facilitating the integration of renewables into the existing grid infrastructure.
Moreover, Fortis plans to invest in renewable energy and storage projects in Arizona and the Caribbean, while simultaneously exploring cleaner fuel solutions in British Columbia.
These strategic investments are projected to deliver a compounded annual growth rate of 6.3% on a constant foreign exchange basis throughout the duration of the plan. Consequently, by 2028, the midyear rate base is anticipated to reach an impressive C$49.4 billion, up from C$36.8 billion this year.
The capital plan expansion is bolstered by the Inflation Reduction Act of 2022 in the United States. Furthermore, Fortis intends to utilize cash flow from its operations and regulated debt to primarily finance these initiatives. This prudent financial approach aligns with their commitment to prudent operations.
Additionally, the Fortis board has declared a dividend increase of 4.4%. Chief Executive David Hutchens proudly notes that this marks 50 consecutive years of dividend increases. Remarkably, Fortis stands as one of only two companies listed on the Toronto Stock Exchange to accomplish this remarkable milestone.
Overall, Fortis (Canada) is embarking on an ambitious capital plan that not only reflects its commitment to renewable energy but also demonstrates its dedication to sustained growth and shareholder satisfaction.