Fortis Plans US$23.9 Billion Investment, With 62% Expected in U.S.

Fortis Inc. plans a C$32.2 billion (US$23.9 billion) five-year investment program, with 62% of spending expected in the United States, and projects 7.5% rate-base growth. The North American regulated electric and gas utility serves customers in five Canadian provinces, 10 U.S. states and the Cayman Islands.

Fortis announced the 2027-2031 plan Nov. 3. It is C$3.4 billion larger than the company’s previous C$28.8 billion plan for 2026-2030. Planned spending is C$6.3 billion in 2027, C$6.4 billion in 2028, C$6.8 billion in 2029, C$6.4 billion in 2030 and C$6.3 billion in 2031.

The company expects 62% of expenditures in the United States, 36% in Canada and 2% in the Cayman Islands. By category, transmission accounts for 47% of planned spending and distribution for 29%; renewable gas and liquefied natural gas make up 7%, generation 6% and other spending 11%.

Transmission projects tied to the Midcontinent Independent System Operator’s Long-Range Transmission Plan tranche 2.1 are among the main drivers of the larger budget. Fortis’ ITC subsidiary won a US$1 billion competitive project in Iowa in October 2026, with US$500 million included in the five-year plan.

Fortis projects its midyear rate base will increase from C$45.3 billion in 2026 to C$55.8 billion in 2029 and C$63.9 billion in 2031. Rate base is the value of utility assets on which regulators allow a company to earn a return. The projected 7.5% figure is a five-year compound annual growth rate calculated using a constant U.S.-dollar-to-Canadian-dollar exchange rate, compared with 7% in the previous plan.

Fortis expects to fund the program mainly with operating cash and regulated-utility debt. It expects the dividend reinvestment plan to support most common-equity needs and plans to re-establish its at-the-market equity program in early 2027.

“Today, we are introducing our new $32.2 billion five-year capital plan, the largest in Fortis history,” President and CEO David Hutchens said.

Fortis declared a C$0.665-per-share common dividend for the fourth quarter of 2026, a 4% increase. Its annual dividend-growth guidance of 4% to 6% now runs through 2031. The dividend is payable Dec. 1 to shareholders of record Nov. 17.