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• Capital Expenditures: $3.6 billion invested through September; expected $5.2 billion for the year.

• Five-Year Capital Plan: $26 billion from 2025 to 2029, supporting 6.5% average annual rate base growth.

• Dividend Increase: 4% increase in the fourth quarter dividend, with 4% to 6% annual growth guidance extended to 2029.

• Reported and Adjusted EPS: $0.85 for Q3, $0.01 higher than last year; $2.45 year-to-date, $0.08 higher than last year.

• Debt Raised: Approximately $2.6 billion through September to fund capital program and repay borrowings.

• Series M Preference Share Rate: Reset to 5.5% annual dividend rate.

• ITC's MISO All-In ROE: 10.73% after FERC order lowering base ROE by 4 basis points.

• Refunds for ITC: Estimated USD26 million to be recognized in Q4.

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Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fortis Inc (NYSE:FTS) reported a solid third quarter with continued safe and reliable service delivery and successful execution of its regulated growth strategy.

• The company invested $3.6 billion in energy systems through September and expects capital expenditures of $5.2 billion for the year.

• Fortis Inc (NYSE:FTS) announced a new five-year capital plan of $26 billion, supporting an average annual rate base growth of 6.5% through 2029.

• The Board of Directors declared a 4.2% increase in the fourth quarter dividend, marking 51 years of consecutive dividend increases.

• Fortis Inc (NYSE:FTS) is making progress on new data center, mining, and manufacturing opportunities, particularly in Arizona, which could drive significant upside to its existing capital plan.

Negative Points

• The company faces higher finance costs, which have offset some of the gains from unrealized gains on derivatives.

• The Western Canadian Utilities segment saw a $0.04 EPS decrease for the quarter due to a retroactive adjustment related to a cost of capital decision.

• Fortis Inc (NYSE:FTS) is dealing with regulatory challenges, including a show cause order from the New York Public Service Commission related to a gas-related explosion.

• The MISO ROE was lowered by 4 basis points to 9.98%, impacting ITC's MISO all-in ROE and resulting in estimated refunds of approximately USD26 million.

• The company is navigating potential regulatory changes in Arizona, which could impact the timing and scope of new retail load increases and related investments.