UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of September, 2023
Commission File Number: 001-37915
Fortis Inc.
Fortis Place, Suite 1100
5 Springdale Street
St. John's, Newfoundland and Labrador
Canada, A1E 0E4
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover
of Form 20-F or Form 40-F: Form 20-F ☐ Form 40-F ☑
EXHIBITS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Fortis Inc.
(Registrant)
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Date: September 19, 2023 |
/s/ James R. Reid |
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By: |
James R. Reid |
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Title: |
Executive Vice President, Sustainability and Chief Legal Officer |
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Exhibit 99.1
St. John's, NL – September 19, 2023
FORTIS INC. ANNOUNCES NEW $25 BILLION FIVE YEAR CAPITAL OUTLOOK AND 4.4%
INCREASE IN FOURTH QUARTER DIVIDEND MARKING 50 YEARS OF DIVIDEND INCREASES
Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE:
FTS), a well-diversified leader in the North American regulated electric and gas utility industry, released its 2024-2028 outlook1.
Highlights
| • | 2024-2028 capital plan of $25.0 billion, representing 6.3% rate base growth; up $2.7 billion from 2023-2027
five-year plan |
| • | Growth largely driven by investments in transmission in the U.S. Midwest and resource transition plan
in Arizona |
| • | Fourth quarter common share dividend increasing by 4.4%, will mark 50 years of consecutive increases in
dividends paid |
| • | Annual dividend growth guidance of 4-6% extended to 2028 |
"Our Board of Directors declared a fourth quarter dividend representing
a 4.4% increase that will mark 50 years of consecutive increases in dividends paid," said David Hutchens, President and CEO, Fortis
Inc. "This makes Fortis one of only two companies listed on the Toronto Stock Exchange to reach this significant milestone."
"Our sustainable regulated growth strategy is focused on delivering
cleaner energy that remains affordable and reliable for our customers while supporting annual dividend growth of 4-6% through 2028,”
said Mr. Hutchens.
New Five-Year Capital Plan
Today the Corporation announced its new 2024-2028 capital plan of $25.0
billion, the largest in the Corporation’s history, and $2.7 billion higher than the previous five-year plan. The increase is
supported by the Inflation Reduction Act of 2022, and largely reflects regional transmission projects at ITC associated with tranche one
of the Midcontinent Independent System Operator long-range transmission plan, as well as investments in Arizona to support Tucson Electric
Power’s exit from coal. Investments supporting system adaptation and resiliency, customer growth and economic development are also
driving growth across our entire footprint.
The five-year capital plan is low risk and highly executable, with nearly
100% regulated investments and 18% relating to major capital projects. Approximately 27% of the five-year capital plan is allocated to
cleaner energy investments focused on connecting renewables to the grid, renewable and storage investments in Arizona and the Caribbean,
and cleaner fuel solutions in British Columbia. The Corporation's $25.0 billion five-year capital plan is expected to increase midyear
rate base from $36.8 billion in 2023 to $49.4 billion by 2028, translating into a five-year compound annual growth rate of 6.3%
on a constant foreign exchange basis. The plan maintains a focus on customer affordability, while ensuring reliable and resilient energy
delivery service as the Corporation transitions to a cleaner energy future.
The five-year capital plan is expected to be funded primarily by cash from
operations and regulated debt. Common equity proceeds are expected to be sourced from the Corporation's dividend reinvestment plan and
an at-the-market common equity program.
Beyond the five-year capital plan, additional opportunities to expand and
extend growth include: further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy,
including infrastructure investments associated with the Inflation Reduction Act of 2022 and the Midcontinent Independent System Operator,
Inc. long-range transmission plan; climate adaptation and grid resiliency investments; renewable gas solutions and liquefied natural gas
infrastructure in British Columbia; and the acceleration of cleaner energy infrastructure investments across our jurisdictions.
____________________
| 1 | All information referenced is presented in Canadian dollars unless otherwise specified. |
Dividends and Dividend Guidance
The Board of Directors of Fortis declared a common share dividend of $0.59
per share on the issued and outstanding fully paid common shares of the Corporation, representing an approximate 4.4% increase in the
quarterly dividend, payable on December 1, 2023 to the common Shareholders of Record at the close of business on November 17,
2023, marking 50 consecutive years of increased dividends.
1. | | $0.3063 per share on the First Preference Shares, Series "F" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
2. | | $0.3826875 per share on the First Preference Shares, Series "G" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
3. | | $0.11469 per share on the First Preference Shares, Series "H" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
4. | | $0.406571 per share on the First Preference Shares, Series "I" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
5. | | $0.2969 per share on the First Preference Shares, Series "J" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
6. | | $0.2455625 per share on the First Preference Shares, Series "K" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; |
7. | | $0.2445625 per share on the First Preference Shares, Series "M" of the Corporation,
payable on December 1, 2023 to the Shareholders of Record at the close of business on November 17, 2023; and |
8. | | $0.59 per share on the Common Shares of the Corporation, payable on December 1, 2023 to the
Shareholders of Record at the close of business on November 17, 2023. |
The Corporation has designated the common share dividend and preference
share dividends as eligible dividends for federal and provincial dividend tax credit purposes. All amounts are given in Canadian dollars
unless otherwise indicated.
Fortis expects its long-term growth in rate base will drive earnings that
support annual dividend growth. The Corporation’s annual dividend growth guidance of 4-6% has been extended one year through 2028
and is premised on the assumptions listed under "Forward-Looking Information".
About Fortis
Fortis is a well-diversified leader in the North American regulated electric
and gas utility industry with 2022 revenue of $11.0 billion and total assets of $64 billion as at June 30, 2023. The Corporation's
9,200 employees serve utility customers in five Canadian provinces, 10 U.S. states and three Caribbean countries.
Fortis shares are listed on the TSX and NYSE and trade under the symbol
FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.
Forward-Looking Information
Fortis includes forward-looking information in this media release within
the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations
of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible,
words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should,
target, will, would and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking
information, which includes, without limitation: forecast capital expenditures for 2024-2028, including cleaner energy investments; forecast
rate base and rate base growth through 2028; targeted annual dividend growth through 2028; the expectation that the funding plan will
support investment-grade credit ratings and will provide flexibility as the Corporation pursues incremental growth opportunities; the
impact of the Inflation Reduction Act on the capital plan; the nature, timing and benefits of certain capital projects, including ITC
LRTP Tranche 1 and further interconnection investments, generation investments in Arizona to support the TEP's Integrated Resource Plan,
climate adaptation and grid resiliency investments, and customer growth and economic development; the expectation to exit coal by 2032;
the expected sources of funding for the capital plan; the expectation that long-term growth in rate base will drive earnings, support
dividend growth and reduce the dividend payout ratio over time to be in line with historical levels; and the expectation that the dividend
growth guidance will provide flexibility to fund more capital with internally generated funds.
Forward-looking information involves significant risks, uncertainties
and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking
information, including, without limitation: no material impact from volatility in energy prices, global supply chain constraints and persistent
inflation; reasonable outcomes for regulatory proceedings and the expectation of regulatory stability; the successful execution of the
five-year capital plan; no material capital project and financing cost overrun; sufficient human resources to deliver service and execute
the capital plan; the realization of additional opportunities; no material changes in the assumed U.S. dollar to Canadian dollar exchange
rate; no significant variability in interest rates; and the Board exercising its discretion to declare dividends, taking into account
the business performance and financial condition of the Corporation. Fortis cautions readers that a number of factors could cause actual
results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. For
additional information with respect to certain risk factors, reference should be made to the continuous disclosure materials filed from
time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking
information herein is given as of the date of this media release. Fortis disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, future events or otherwise.
Investor Day Webcast to Discuss New Five-Year Outlook
A webcast will be held today, September 19, 2023, with a formal presentation
scheduled from 10:00 a.m. to 12:00 p.m. NDT (8:30 a.m. to 10:30 a.m. EDT). David Hutchens, President and Chief Executive Officer
and Jocelyn Perry, Executive Vice President and Chief Financial Officer and executives from certain subsidiaries will provide an
update on operations, recent developments and the strategic outlook for 2024 to 2028.
Shareholders, analysts, members of the media and other interested parties are invited to participate
in the webcast. A live and archived webcast of the event will be available on the Corporation's website at www.fortisinc.com.
For more information, please contact:
Investor Enquiries: |
Media Enquiries: |
Ms. Stephanie Amaimo |
Ms. Karen McCarthy |
Vice President, Investor Relations |
Vice President, Communications & Government Relations |
Fortis Inc. |
Fortis Inc. |
248.946.3572 |
709.737.5323 |
investorrelations@fortisinc.com
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media@fortisinc.com
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