Fortis Inc. (NYSE: FTS)

Fortis Inc. is a diversified North American regulated electric and gas utility holding company, with a focus on energy delivery. The company operates primarily in the utility sector, providing transmission and distribution services. Fortis Inc. serves 3.5 million utility customers across five Canadian provinces, ten U.S. states, and three Caribbean countries. The company's operations are characterized by low-risk, stable, and predictable earnings and cash flows, with regulated utilities accounting for virtually all of its assets.

Fortis Inc. generates revenue through its regulated utility businesses, which include electric transmission, electric and natural gas distribution, and integrated electric services. The company's primary products and services encompass the transmission and distribution of electricity and natural gas, as well as the generation of electricity through various means. Fortis Inc. serves a broad customer base, including residential, commercial, and industrial customers, as well as other utilities and wholesale customers.

• ITC: ITC Investment Holdings Inc. and its subsidiaries operate high-voltage transmission lines in Michigan's lower peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas, Oklahoma, and Wisconsin. The segment includes International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC, and ITC Great Plains, LLC. Fortis owns 80.1% of ITC, with the remaining 19.9% held by an affiliate of GIC Private Limited.

• UNS Energy: UNS Energy Corporation, primarily comprising Tucson Electric Power Company, UNS Electric, Inc., and UNS Gas, Inc., operates in Arizona. TEP and UNS Electric are vertically integrated regulated electric utilities that generate, transmit, and distribute electricity. UNS Gas is a regulated gas distribution utility serving retail customers in northern and southern Arizona.

• Central Hudson: CH Energy Group, Inc., primarily including Central Hudson Gas & Electric Corporation, serves portions of New York State's Mid-Hudson River Valley. The segment provides electric and gas transmission and distribution services and owns gas-fired and hydroelectric generating capacity.

• FortisBC Energy: FortisBC Energy Inc. is the largest regulated distributor of natural gas in British Columbia, providing transmission and distribution services. The segment sources natural gas supplies primarily from northeastern British Columbia and Alberta on behalf of most customers.

• FortisAlberta: FortisAlberta Inc. is a regulated electricity distribution utility operating in a substantial portion of southern and central Alberta. The segment is not involved in the direct sale of electricity.

• FortisBC Electric: FortisBC Inc. is an integrated regulated electric utility operating in the southern interior of British Columbia. The segment owns four hydroelectric generating facilities with a combined capacity of 225 MW and provides operating, maintenance, and management services relating to five hydroelectric generating facilities owned by third parties.

• Other Electric: This segment includes Eastern Canadian and Caribbean utilities such as Newfoundland Power, Maritime Electric, FortisOntario, Wataynikaneyap Power, Caribbean Utilities, FortisTCI, and Belize Electricity. These utilities provide integrated electric services and have varying generating capacities and customer bases.

• Non-Regulated Corporate and Other: This segment captures expenses and revenues not specifically related to any reportable segment and includes non-regulated holding company expenses, as well as non-regulated long-term contracted generation assets in Belize. The generation assets include three hydroelectric generating facilities with a combined generating capacity of 51 MW, held through Fortis Belize Limited.

Fortis Inc. holds a strong position within the utility industry, operating as the sole supplier of electricity and/or gas within many of its service territories. The company's competitive advantages include its diversified portfolio of regulated utility businesses, a unique operating model with autonomous business units, and a focus on providing safe, reliable, and cost-effective service to customers. Fortis Inc. also benefits from its commitment to delivering a cleaner energy future, which aligns with evolving energy policies and customer preferences.

The company's customer base is diverse, encompassing residential, commercial, and industrial customers, as well as other utilities and wholesale customers. Fortis Inc. serves customers in various jurisdictions, including Canada, the United States, and the Caribbean, with a significant portion of its revenue derived from foreign operations. The company's broad customer base and geographic diversification contribute to its stable and predictable earnings and cash flows.