Fortis Inc. (NYSE: FRTSF)

Fortis Inc. is a diversified North American regulated electric and gas utility holding company. The corporation focuses on energy delivery with approximately 95% of its assets related to transmission and distribution operations. Fortis Inc. serves 3.5 million utility customers across five Canadian provinces, ten U. S. states, and the Caribbean. The business model emphasizes stable, predictable earnings and cash flows derived from regulated utility activities.

Fortis Inc. generates revenue primarily through the delivery of electricity and natural gas services to retail and wholesale customers. Revenue is derived from regulated rates approved by various federal, state, and provincial authorities, allowing for the recovery of prudently incurred costs and a reasonable return on rate base assets. The corporation earns income from the transmission, distribution, and in some cases generation of electricity and natural gas within its service territories. Additional revenue streams include wholesale electricity sales and gas distribution services provided by its subsidiaries.

Fortis Inc. operates through the following reportable segments: ITC, UNS Energy, Central Hudson, FortisBC Energy, FortisAlberta, FortisBC Electric, Newfoundland Power, Maritime Electric, FortisOntario, Caribbean Utilities, and Other Electric. The corporation also holds a 39% equity interest in Wataynikaneyap Power as part of its Other Electric segment.

• ITC owns and operates high-voltage electric transmission lines in Michigan's lower peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma, and Wisconsin. It functions as an independent transmission provider regulated by the Federal Energy Regulatory Commission.

• UNS Energy includes Tucson Electric Power Company, UNS Electric Inc., and UNS Gas Inc., providing integrated electric and natural gas distribution in southeastern Arizona, with generation, transmission, and distribution services to retail customers and wholesale electricity sales in the western United States.

• Central Hudson is a regulated electric and gas transmission and distribution utility serving portions of New York State's Mid-Hudson River Valley, owning gas-fired and hydroelectric generating capacity.

• FortisBC Energy is the largest regulated distributor of natural gas in British Columbia, providing transmission and distribution services and sourcing natural gas supplies primarily from northeastern British Columbia and Alberta.

• FortisAlberta is a regulated electricity distribution utility operating in southern and central Alberta, focusing on distribution without direct electricity sales.

• FortisBC Electric is an integrated regulated electric utility in the southern interior of British Columbia, owning hydroelectric generating facilities and providing services for third-party owned hydroelectric facilities.

• Newfoundland Power is an integrated regulated electric utility and the principal distributor of electricity on Newfoundland and Labrador with hydroelectric generating capacity.

• Maritime Electric is an integrated regulated electric utility and the principal distributor of electricity on Prince Edward Island with on-Island generating capacity.

• FortisOntario consists of three regulated electric utilities serving customers in Fort Erie, Cornwall, Gananoque, Port Colborne, and the District of Algoma in Ontario.

• Caribbean Utilities is an integrated regulated electric utility and the sole electricity distributor on Grand Cayman with diesel-powered generating capacity.

• Other Electric includes Newfoundland Power, Maritime Electric, FortisOntario, a 39% equity interest in Wataynikaneyap Power (an Ontario transmission line connecting remote First Nations to the Ontario power grid), and historical interests in FortisTCI and Belize Electricity, which were disposed of in 2025.

Fortis Inc. operates in a highly regulated utility industry where most of its subsidiaries function as the sole supplier of electricity and/or gas within their service territories, reducing direct competition. The corporation faces competition from alternative energy sources and on-site generation by customers, particularly in its transmission business where challenges to right of first refusal statutes may impact growth. Its regulated gas utilities compete with electricity for space and hot water heating, with natural gas competitiveness influenced by government energy policies, especially in British Columbia where most of its natural gas revenue is derived. The company's competitive advantages stem from its diversified portfolio, autonomous operating model allowing effective regulatory relationships, and focus on safe, reliable, and cost-effective service delivery.

Fortis Inc. serves 3.5 million utility customers comprising residential, commercial, and industrial users across its electric and gas service territories. Specific customer segments include homeowners, businesses, and institutions requiring electricity and natural gas for lighting, heating, cooling, and operational needs. The corporation does not disclose individual customer names in its reporting, focusing instead on broad customer classifications within its regulated franchises.