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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 July, 2024

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 40F: Form 20-F o Form 40-F þ
 




INCORPORATION BY REFERENCE
The registrant's unaudited condensed consolidated interim financial statements as at and for the six months ended June 30, 2024, together with the notes thereto, furnished as Exhibit 99.2 to this report on Form 6-K, and the registrant's management discussion and analysis of financial condition and results of operations for the same periods furnished as Exhibit 99.3 to this report on Form 6-K, are incorporated by reference into the following Registration Statements of the Registrant, as amended or supplemented: Form S-8 (File No. 333-226663), Form S-8 (File No. 333-236213), Form F-3 (File No. 333-249039), Form F-3 (File No. 333-279253), Form F-10 (File No. 333-268493), Form S-8 (File No. 333-264838), Form S-8 (File No. 333-276111) and Form S-8 (File No. 333-276112).











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.
Fortis Inc.
(Registrant)

Date: July 31, 2024/s/ Jocelyn H. Perry
By: Jocelyn H. Perry
Title:Executive Vice President, Chief Financial Officer





Exhibit 99.1
fortislogo.jpg

St. John's, NL - July 31, 2024

FORTIS INC. RELEASES SECOND QUARTER 2024 RESULTS AND
2024 SUSTAINABILITY REPORT

This news release constitutes a "Designated News Release" incorporated by reference in the prospectus supplement
dated September 19, 2023 to Fortis' short form base shelf prospectus dated November 21, 2022.

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 second quarter results1 and 2024 Sustainability Report.

Highlights
•Second quarter net earnings of $331 million or $0.67 per common share, up from $294 million or $0.61 per common share in 2023
•Adjusted net earnings per common share2 of $0.67, up from $0.62 in the second quarter of 2023
•Capital expenditures2 of $2.3 billion in the first half of 2024; $4.8 billion annual capital plan on track
•Tranche 2.1 of MISO’s long range transmission plan continues to progress
•2024 Sustainability Report released highlighting the Corporation's progress on key sustainability initiatives

"Our regulated utility businesses continued to deliver on their financial and operational plans in the first half of 2024," said David Hutchens, President and Chief Executive Officer, Fortis. "We are executing our annual $4.8 billion capital plan, and remain confident in our $25 billion five-year capital plan. We also released our 2024 Sustainability Report today, highlighting progress on our key sustainability initiatives. This is an exciting time for our company as we pursue growth opportunities and deliver a cleaner energy future."

Net Earnings
The Corporation reported net earnings attributable to common equity shareholders ("Net Earnings") of $331 million for the second quarter of 2024, or $0.67 per common share, an increase of $37 million, or $0.06 per common share compared to the second quarter of 2023. The increase was driven by strong earnings in Arizona, reflecting new customer rates at Tucson Electric Power effective September 1, 2023 and higher retail electricity sales associated with warmer weather. Rate base growth across our utilities and the timing of recognition of new cost of capital parameters approved for FortisBC in 2023 also contributed to earnings growth. The increase was partially offset by lower earnings for Central Hudson and the Other Electric segment, largely reflecting higher operating costs.

On a year-to-date basis, Net Earnings were $790 million, or $1.60 per common share, an increase of $59 million, or $0.09 per common share compared to the same period in 2023. The increase was due to higher earnings in Arizona, rate base growth, and the new cost of capital parameters at FortisBC, as discussed above. Growth was partially offset by higher operating costs at Central Hudson, higher holding company costs, and the November 1, 2023 disposition of Aitken Creek. Although the disposition of Aitken Creek was unfavourable to the change in earnings for the first half of the year, the impact will be neutral for the annual period.

The change in earnings per share for both the second quarter and year-to-date periods also reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's dividend reinvestment plan.

Adjusted Net Earnings2
There were no adjustments to Net Earnings for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, adjustments to Net Earnings of $8 million and $10 million, respectively, were recognized associated with mark-to-market accounting of natural gas derivatives at Aitken Creek


____________________
1    Financial information is presented in Canadian dollars unless otherwise specified.
2    Non-U.S. GAAP Financial Measures - Fortis uses financial measures that do not have a standardized meaning under generally accepted accounting principles in the United States of America ("U.S. GAAP") and may not be comparable to similar measures presented by other entities. Fortis presents these non-U.S. GAAP measures because management and external stakeholders use them in evaluating the Corporation's financial performance and prospects. Refer to the Non-U.S. GAAP Reconciliation provided herein.
i



Capital Expenditures
Our $4.8 billion annual capital plan is on track with $2.3 billion invested during the first half of 2024.

In June 2024, the Midcontinent Independent System Operator, Inc. ("MISO") released a near-final map of the long-range transmission plan ("LRTP") projects that it has now identified as tranche 2.1, with transmission investments in the MISO Midwest subregion estimated in the range of US$23 billion to US$27 billion. MISO Board approval of the portfolio is expected in late 2024. While certain projects are expected in ITC's footprint, the potential capital investment at ITC for tranche 2.1 projects is unknown at this time.

Following the provincial environmental assessment certificate issued earlier this year, in June 2024, a federal environmental assessment certificate was issued for the Tilbury Marine Jetty project. The construction of the jetty supports further expansion of FortisBC's Tilbury liquefied natural gas ("LNG") facility, which is uniquely positioned to meet customer demand for LNG. The site is scalable, can accommodate additional storage and liquefaction equipment and is close to international shipping lanes.

During the second quarter of 2024, construction of the 1,800-kilometre Wataynikaneyap Power Transmission project was completed. The project is majority-owned by 24 First Nations, with Fortis having a 39% ownership interest. In addition to First Nations ownership in the transmission line, the project will continue to provide socio-economic benefits and reduce greenhouse gas ("GHG") emissions associated with diesel-fired generation previously used in these remote locations.

Regulatory Updates
In July 2024, the New York State Public Service Commission approved a one-year rate plan for Central Hudson with retroactive application to July 1, 2024, including an allowed rate of return on common equity ("ROE") of 9.5%, an increase from the previous allowed ROE of 9.0%.

In July 2024, a judge on the Iowa Supreme Court granted a stay of the injunction issued by the Iowa District Court with respect to the construction of the MISO LRTP tranche 1 projects in Iowa. With the stay of the injunction in place, ITC is permitted to advance construction of all Iowa tranche 1 projects originally awarded to the company in 2022. Certain complainants have requested that the judge's order be reviewed by a full quorum of the Iowa Supreme Court.

Regardless of any quorum review by the Iowa Supreme Court, approximately 70% of the Iowa tranche 1 projects are upgrades to ITC facilities along existing rights-of-way, which under MISO's tariff grants ITC the option to construct the upgrades. In addition, MISO is conducting a variance analysis for the tranche 1 LRTP projects in Iowa, and we believe the process should reaffirm the initial award of the projects.

Sustainability
The Corporation released its 2024 Sustainability Report today, which includes key sustainability performance indicators. The Corporation has reduced direct GHG emissions by 33% through 2023 compared to 2019 levels, marking significant progress towards its interim targets to reduce GHG emissions 50% by 2030 and 75% by 2035, as well as its 2050 net-zero direct GHG emissions target. Also in 2023, GHG intensity factors related to energy delivered to customers and electricity generated reached the lowest levels in the last five years.

The 2024 Sustainability Report can be accessed at http://www.fortisinc.com/sustainability/sustainability-reporting.

Outlook
Fortis continues to enhance shareholder value through the execution of its capital plan, the balance and strength of its diversified portfolio of regulated utility businesses, and growth opportunities within and proximate to its service territories. The Corporation's $25 billion five-year capital plan is expected to increase midyear rate base from $37.0 billion in 2023 to $49.4 billion by 2028, translating into a five-year CAGR of 6.3%.3

Beyond the five-year capital plan, additional opportunities to expand and extend growth include: continued electrification and load growth; climate adaptation and grid resiliency investments; 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 MISO LRTP; and renewable natural gas solutions and LNG infrastructure in British Columbia.

Fortis expects its long-term growth in rate base will drive earnings that support dividend growth guidance of 4-6% annually through 2028, and is premised on the assumptions and material factors listed under "Forward-Looking Information".
____________________
3    Calculated using a constant United States dollar-to-Canadian dollar exchange rate.
ii



Non-U.S. GAAP Reconciliation
Periods ended June 30QuarterYear-to-Date
($ millions, except earnings per share)2024 2023 Variance2024 2023 Variance
Adjusted Net Earnings
Net Earnings331 294 37 790 731 59 
Adjusting item:
Unrealized loss on mark-to-market of derivatives at Aitken Creek4
— 8 (8)— 10 (10)
Adjusted Net Earnings331 302 29 790 741 49 
Adjusted net earnings per share ($)
0.67 0.62 0.05 1.60 1.53 0.07 
Capital Expenditures
Additions to property, plant and equipment1,064 938 126 2,135 1,845 290 
Additions to intangible assets48 44 4 90 91 (1)
Adjusting item:
Wataynikaneyap Transmission Power Project5
14 43 (29)29 84 (55)
Capital Expenditures1,126 1,025 101 2,254 2,020 234 

About Fortis
Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of $12 billion and total assets of $69 billion as at June 30, 2024. The Corporation's 9,600 employees serve utility customers in five Canadian provinces, ten U.S. states and three Caribbean countries.

Forward-Looking Information
Fortis includes forward-looking information in this news 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: the expected impact of the disposition of Aitken Creek on earnings for the annual period; forecast capital expenditures for 2024 and 2024 through 2028; the nature, timing, benefits and expected costs of certain capital projects, including ITC's transmission projects associated with the MISO LRTP and FortisBC's Tilbury LNG Storage Expansion project; the expected timing, outcome and impact of legal and regulatory proceedings and decisions; the 2030 and 2035 GHG emissions reduction targets; the 2050 net-zero direct GHG emissions target; additional opportunities beyond the capital plan, including continued electrification and load growth, climate adaptation and grid resiliency investments, 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 MISO LRTP, and renewable natural gas solutions and LNG infrastructure in British Columbia; forecast rate base and rate base growth through 2028; and the expectation that long-term growth in rate base will drive earnings that support dividend growth guidance of 4-6% annually through 2028.

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: reasonable outcomes for legal and regulatory proceedings and the expectation of regulatory stability; the successful execution of the 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 beyond the capital plan; no significant variability in interest rates; no material changes in the assumed U.S. dollar to Canadian dollar exchange rate; 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 news 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.



____________________
4    Represents the mark-to-market accounting of natural gas derivatives at Aitken Creek, net of income tax recovery of $3 million and $4 million, for the three and six months ended June 30, 2023, respectively. The sale of Aitken Creek closed on November 1, 2023.
5    Represents Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power Project.

iii



Teleconference and Webcast to Discuss Second Quarter 2024 Results
A teleconference and webcast will be held on July 31, 2024 at 8:30 a.m. (Eastern) during which David Hutchens, President and Chief Executive Officer and Jocelyn Perry, Executive Vice President and Chief Financial Officer will discuss the Corporation's second quarter financial results.

Shareholders, analysts, members of the media and other interested parties are invited to listen to the teleconference via the live webcast on the Corporation's website, https://www.fortisinc.com/investor-relations/events-and-presentations.

Those members of the financial community in North America wishing to ask questions during the call are invited to participate toll free by calling 1.800.717.1738 while those outside of North America can participate by calling 1.289.514.5100. Please dial in 10 minutes prior to the start of the call. No passcode is required.

An archived audio webcast of the teleconference will be available on the Corporation's website two hours after the conclusion of the call until August 31, 2024. Please call 1.888.660.6264 or 1.289.819.1325 and enter passcode 93188#.

Additional Information
This news release should be read in conjunction with the Corporation's June 30, 2024 Interim Management Discussion and Analysis and Condensed Consolidated Financial Statements. This and additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.

For more information, please contact:

Investor EnquiriesMedia Enquiries
Ms. Stephanie AmaimoMs. Karen McCarthy
Vice President, Investor RelationsVice President, Communications & Government Relations
Fortis Inc.Fortis Inc.
248.946.3572709.737.5323
investorrelations@fortisinc.commedia@fortisinc.com
iv
Exhibit 99.2
Interim Financial Statements











FORTIS INC.

Condensed Consolidated Interim Financial Statements
For the three and six months ended June 30, 2024 and 2023
(Unaudited)
1
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Interim Financial Statements
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited)
FORTIS INC.
June 30,December 31,
As at (in millions of Canadian dollars)20242023
ASSETS
Current assets
Cash and cash equivalents$561 $625 
Accounts receivable and other current assets (Note 5)1,787 1,818 
Prepaid expenses193 150 
Inventories 596 566 
Regulatory assets (Note 6)780 866 
Total current assets3,917 4,025 
Other assets 1,364 1,298 
Regulatory assets (Note 6)3,762 3,518 
Property, plant and equipment, net45,636 43,385 
Intangible assets, net 1,555 1,510 
Goodwill 12,538 12,184 
Total assets$68,772 $65,920 
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings (Note 7)$68 $119 
Accounts payable and other current liabilities 2,376 2,972 
Regulatory liabilities (Note 6)607 577 
Current installments of long-term debt (Note 7)2,630 2,296 
Total current liabilities5,681 5,964 
Regulatory liabilities (Note 6)3,466 3,381 
Deferred income taxes 4,657 4,399 
Long-term debt (Note 7)28,671 27,235 
Finance leases338 339 
Other liabilities 1,302 1,270 
Total liabilities44,115 42,588 
Commitments and contingencies (Note 15)
Equity
Common shares (1)
15,346 15,108 
Preference shares1,623 1,623 
Additional paid-in capital8 9 
Accumulated other comprehensive income1,161 653 
Retained earnings4,611 4,112 
Shareholders' equity22,749 21,505 
Non-controlling interests 1,908 1,827 
Total equity24,657 23,332 
Total liabilities and equity$68,772 $65,920 
(1)    No par value. Unlimited authorized shares. 495.2 million and 490.6 million issued and outstanding as at June 30, 2024 and December 31, 2023, respectively.
See accompanying Notes to Condensed Consolidated Interim Financial Statements
2
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Interim Financial Statements
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (Unaudited)
FORTIS INC.
QuarterYear-to-Date
For the periods ended June 30 (in millions of Canadian dollars, except per share amounts)
2024 2023 2024 2023 
Revenue $2,670 $2,594 $5,788 $5,913 
Expenses
Energy supply costs713 787 1,722 2,099 
Operating expenses739 713 1,505 1,454 
Depreciation and amortization480 440 947 876 
Total expenses1,932 1,940 4,174 4,429 
Operating income738 654 1,614 1,484 
Other income, net (Note 11)65 64 138 133 
Finance charges 347 323 683 638 
Earnings before income tax expense456 395 1,069 979 
Income tax expense69 49 170 149 
Net earnings$387 $346 $899 $830 
Net earnings attributable to:
Non-controlling interests$38 $35 $73 $66 
Preference equity shareholders (Note 8)18 17 36 33 
Common equity shareholders331 294 790 731 
$387 $346 $899 $830 
Earnings per common share (Note 12)
Basic$0.67 $0.61 $1.60 $1.51 
Diluted$0.67 $0.61 $1.60 $1.51 
See accompanying Notes to Condensed Consolidated Interim Financial Statements

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
QuarterYear-to-Date
For the periods ended June 30 (in millions of Canadian dollars)
2024 2023 2024 2023 
Net earnings$387 $346 $899 $830 
Other comprehensive income (loss)
Unrealized foreign currency translation gains (losses) (1)
182 (339)564 (383)
Other (2)
(1)5 3 3 
181 (334)567 (380)
Comprehensive income$568 $12 $1,466 $450 
Comprehensive income attributable to:
Non-controlling interests$56 $(1)$132 $25 
Preference equity shareholders18 17 36 33 
Common equity shareholders494 (4)1,298 392 
$568 $12 $1,466 $450 
(1)Net of hedging activities and income tax recovery of $2 million and $8 million for the three and six months ended June 30, 2024, respectively (three and six months ended June 30, 2023 - income tax expense of $6 million)
(2)Net of income tax expense of $nil for the three and six months ended June 30, 2024 (three and six months ended June 30, 2023 - income tax expense of $2 million)
See accompanying Notes to Condensed Consolidated Interim Financial Statements
3
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Interim Financial Statements
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited)
FORTIS INC.
QuarterYear-to-Date
For the periods ended June 30 (in millions of Canadian dollars)
2024 2023 2024 2023 
Operating activities
Net earnings$387 $346 $899 $830 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation - property, plant and equipment421 381 830 759 
Amortization - intangible assets39 38 77 76 
Amortization - other20 21 40 41 
Deferred income tax expense21 24 51 55 
Equity component, allowance for funds used during construction (Note 11)
(32)(23)(62)(46)
Other22 43 22 49 
Change in long-term regulatory assets and liabilities(20)(103)(100)(82)
Change in working capital (Note 13)(44)217 (175)177 
Cash from operating activities814 944 1,582 1,859 
Investing activities
Additions to property, plant and equipment(1,064)(938)(2,135)(1,845)
Additions to intangible assets(48)(44)(90)(91)
Contributions in aid of construction24 20 51 71 
Other(59)(51)(112)(89)
Cash used in investing activities(1,147)(1,013)(2,286)(1,954)
Financing activities
Proceeds from long-term debt, net of issuance costs (Note 7)1,071 1,247 1,418 1,881 
Repayments of long-term debt and finance leases(692)(364)(696)(697)
Borrowings under committed credit facilities1,824 1,972 3,728 3,875 
Repayments under committed credit facilities (1,593)(2,201)(3,330)(3,938)
Net change in short-term borrowings(59)(273)(52)(165)
Issue of common shares, net of costs and dividends reinvested8 14 21 28 
Dividends

Common shares, net of dividends reinvested(184)(172)(363)(342)

Preference shares(18)(17)(36)(33)

Subsidiary dividends paid to non-controlling interests(24)(17)(54)(40)
Other(14)20 (13)28 
Cash from financing activities319 209 623 597 
Effect of exchange rate changes on cash and cash equivalents6 (7)17 (2)
Change in cash and cash equivalents(8)133 (64)500 
Change in cash associated with assets held for sale— (19)— (19)
Cash and cash equivalents, beginning of period569 576 625 209 
Cash and cash equivalents, end of period$561 $690 $561 $690 
Supplementary Cash Flow Information (Note 13)
See accompanying Notes to Condensed Consolidated Interim Financial Statements

4
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Interim Financial Statements
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited)
FORTIS INC.
For the three months ended June 30
(in millions of Canadian dollars, except share numbers)
Common Shares
(# millions)
Common SharesPreference Shares Additional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsNon-Controlling InterestsTotal Equity
As at March 31, 2024493.0 $15,232 $1,623 $8 $998 $4,279 $1,875 $24,015 
Net earnings— — — — — 349 38 387 
Other comprehensive income— — — — 163 — 18 181 
Common shares issued2.2 114 — — — — — 114 
Subsidiary dividends paid to non-controlling interests— — — — — — (24)(24)
Dividends on preference shares— — — — — (18)— (18)
Other— — — — — 1 1 2 
As at June 30, 2024495.2 $15,346 $1,623 $8 $1,161 $4,611 $1,908 $24,657 
As at March 31, 2023484.4 $14,773 $1,623 $8 $967 $3,896 $1,816 $23,083 
Net earnings— — — — — 311 35 346 
Other comprehensive loss— — — — (298)— (36)(334)
Common shares issued2.0 116 — (1)— — — 115 
Subsidiary dividends paid to non-controlling interests— — — — — — (17)(17)
Dividends on preference shares— — — — — (17)— (17)
Other— — — 1 — — — 1 
As at June 30, 2023486.4 $14,889 $1,623 $8 $669 $4,190 $1,798 $23,177 
See accompanying Notes to Condensed Consolidated Interim Financial Statements
5
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Interim Financial Statements
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited)
FORTIS INC.
For the six months ended June 30
(in millions of Canadian dollars, except share numbers)
Common Shares
(# millions)
Common SharesPreference SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Retained EarningsNon-Controlling InterestsTotal Equity
As at December 31, 2023
490.6 $15,108 $1,623 $9 $653 $4,112 $1,827 $23,332 
Net earnings— — — — — 826 73 899 
Other comprehensive income— — — — 508 — 59 567 
Common shares issued4.6 238 — — — — — 238 
Subsidiary dividends paid to non-controlling interests— — — — — — (54)(54)
Dividends declared on common shares ($0.59 per share)
— — — — — (291)— (291)
Dividends on preference shares— — — — — (36)— (36)
Other— — — (1)— — 3 2 
As at June 30, 2024495.2 $15,346 $1,623 $8 $1,161 $4,611 $1,908 $24,657 
As at December 31, 2022
482.2 $14,656 $1,623 $10 $1,008 $3,733 $1,812 $22,842 
Net earnings— — — — — 764 66 830 
Other comprehensive loss— — — — (339)— (41)(380)
Common shares issued4.2 233 — (1)— — — 232 
Subsidiary dividends paid to non-controlling interests— — — — — — (40)(40)
Dividends declared on common shares ($0.565 per share)
— — — — — (274)— (274)
Dividends on preference shares— — — — — (33)— (33)
Other— — — (1)— — 1 — 
As at June 30, 2023486.4 $14,889 $1,623 $8 $669 $4,190 $1,798 $23,177 
See accompanying Notes to Condensed Consolidated Interim Financial Statements
6
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
1. DESCRIPTION OF BUSINESS

Nature of Operations
Fortis Inc. ("Fortis" or the "Corporation") is a well-diversified North American regulated electric and gas utility holding company.

Earnings for interim periods may not be indicative of annual results due to: (i) the impact of seasonal weather conditions on customer demand; (ii) the impact of market conditions, particularly with respect to long-term wholesale sales at UNS Energy; (iii) changes in the U.S.-to-Canadian dollar exchange rate; and (iv) the timing and significance of regulatory decisions. Earnings of the gas utilities tend to be highest in the first and fourth quarters due to space-heating requirements. Earnings of the electric distribution utilities in the U.S. tend to be highest in the second and third quarters due to the use of air conditioning and other cooling equipment.

Entities within the reporting segments that follow operate with substantial autonomy.

Regulated Utilities
ITC: ITC Investment Holdings Inc., ITC Holdings Corp. and the electric transmission operations of its regulated operating subsidiaries, which include International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC and ITC Great Plains, LLC. Fortis owns 80.1% of ITC and an affiliate of GIC Private Limited owns a 19.9% minority interest.

UNS Energy: UNS Energy Corporation, which primarily includes Tucson Electric Power Company ("TEP"), UNS Electric, Inc. ("UNSE") and UNS Gas, Inc.

Central Hudson: CH Energy Group, Inc., which primarily includes Central Hudson Gas & Electric Corporation.

FortisBC Energy: FortisBC Energy Inc.

FortisAlberta: FortisAlberta Inc.

FortisBC Electric: FortisBC Inc.

Other Electric: Eastern Canadian and Caribbean utilities, as follows: Newfoundland Power Inc.; Maritime Electric Company, Limited; FortisOntario Inc.; a 39% equity investment in Wataynikaneyap Power Limited Partnership; an approximate 60% controlling interest in Caribbean Utilities Company, Ltd. ("Caribbean Utilities"); FortisTCI Limited and Turks and Caicos Utilities Limited (collectively "FortisTCI"); and a 33% equity investment in Belize Electricity Limited ("Belize Electricity").

Non-Regulated
Corporate and Other: Captures expenses and revenues not specifically related to any reportable segment and those business operations that are below the required threshold for segmented reporting. Consists of non-regulated holding company expenses, as well as non-regulated long-term contracted generation assets in Belize. Also includes results for the Aitken Creek natural gas storage facility ("Aitken Creek") until the November 1, 2023 date of disposition.


2. REGULATORY MATTERS

Regulation of the Corporation's utilities is generally consistent with that disclosed in Note 2 of the Corporation's annual audited consolidated financial statements ("2023 Annual Financial Statements"). A summary of significant outstanding regulatory matters follows.

ITC
MISO Base ROE: In 2022, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision vacating certain Federal Energy Regulatory Commission ("FERC") orders that had established the methodology for setting the base return on equity ("ROE") for transmission owners operating in the Midcontinent Independent System Operator, Inc. ("MISO") region, including ITC. This matter dates back to complaints filed at FERC in 2013 and 2015 challenging the MISO base ROE then in effect. The court has remanded the matter to FERC for further process, the timing and outcome of which remain unknown.

Transmission Incentives: In 2021, FERC issued a supplemental notice of proposed rulemaking ("NOPR") on transmission incentives modifying the proposal in the initial NOPR released by FERC in 2020. The supplemental NOPR proposes to eliminate the 50-basis point regional transmission organization ("RTO") ROE incentive adder for RTO members that have been members for longer than three years. The timing and outcome of this proceeding remain unknown.

Transmission Right of First Refusal ("ROFR"): In December 2023, the Iowa District Court ruled that the manner in which Iowa's ROFR statute was passed is unconstitutional. The statute granted incumbent electric transmission owners, including ITC, a ROFR to construct, own and maintain certain electric transmission assets in the state. The District Court did not make any determination on the merits of the ROFR itself, but did issue a permanent injunction preventing ITC and others from taking further action to construct the MISO long range transmission plan ("LRTP") tranche 1 Iowa projects in reliance on the ROFR. In July 2024, a judge on the Iowa Supreme Court granted a motion filed by ITC requesting a stay of the injunction issued by the District Court. With the stay of the injunction in place, ITC is permitted to advance construction of all Iowa tranche 1 projects originally awarded to the company in 2022. Certain complainants have requested that the judge's order be reviewed by a full quorum of the Iowa Supreme Court. Until there is more certainty around the resolution of these matters, we cannot predict the impact on the timing of capital expenditures related to the LRTP tranche 1 Iowa projects.
7
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
2. REGULATORY MATTERS (cont'd)

Central Hudson
2024 General Rate Application: In July 2024, the New York State Public Service Commission ("PSC") approved a one-year rate plan for Central Hudson with retroactive application to July 1, 2024, including an allowed ROE of 9.5%, an increase from the previous allowed ROE of 9.0%. The decision also concluded that there will be no change in the common equity component of capital structure of 48%.

Customer Information System ("CIS") Implementation: In June 2024, the PSC issued an order that concluded the investigation concerning Central Hudson's billing system implementation. The PSC also released the final report issued by an independent third-party which determined that the CIS is stable and the critical issues have been resolved. As part of the order, total costs of US$63 million were agreed to not be recovered from customers, of which the majority were recognized prior to 2024. The remaining costs to be recognized associated with the order, including Central Hudson's US$4 million contribution to a customer benefit fund recorded in the second quarter of 2024, are not expected to be material.

FortisBC Energy and FortisBC Electric
2025-2027 Rate Framework: In April 2024, FortisBC filed an application with the British Columbia Utilities Commission requesting approval of a rate framework for the period 2025 through 2027. The rate framework builds upon the current multi-year rate plan and includes, amongst other items, a revised level of operation and maintenance expense per customer indexed for inflation less a fixed productivity adjustment factor, a similar approach to growth capital, a forecast approach to sustaining and other capital, continued collection of an innovation fund recognizing the need to accelerate investment in clean energy innovation, and the continued sharing with customers of variances from the allowed ROE. The rate framework also proposes the continuation of deferral mechanisms currently in place. The regulatory process will continue throughout 2024, with a decision expected in mid-2025.

FortisAlberta
Generic Cost of Capital ("GCOC") Decision: In October 2023, the Alberta Utilities Commission ("AUC") issued a decision on the 2024 GCOC proceeding. In November 2023, FortisAlberta sought permission to appeal the GCOC decision to the Court of Appeal of Alberta ("Court of Appeal") on the basis that the AUC erred in its decision to not adjust FortisAlberta's ROE and common equity component of capital structure to address incremental business risk associated with competition from Rural Electrification Associations ("REAs") located in FortisAlberta's service area, as well as heightened regulatory risk due to the non-recovery of costs attributable to REAs. In April 2024, the Court of Appeal granted FortisAlberta permission to appeal, which is expected to be complete in the first quarter of 2025.

Third PBR Term Decision: In October 2023, the AUC issued a decision establishing the parameters for the third performance-based rate ("PBR") setting term for the period of 2024 through 2028. In November 2023, FortisAlberta sought permission to appeal the decision to the Court of Appeal on the basis that the AUC erred in its decision to determine capital funding using 2018-2022 historical capital investments without consideration for funding of new capital programs included in the company's 2023 cost of service revenue requirement as approved by the AUC. The timing and outcome of a decision on the request for appeal is unknown.


3. ACCOUNTING POLICIES

These condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for rate-regulated entities and are in Canadian dollars unless otherwise indicated.

The Interim Financial Statements include the accounts of the Corporation and its subsidiaries and reflect the equity method of accounting for entities in which Fortis has significant influence, but not control, and proportionate consolidation for assets that are jointly owned with non-affiliated entities.

Intercompany transactions have been eliminated, except for transactions between non-regulated and regulated entities in accordance with U.S. GAAP for rate-regulated entities.

These Interim Financial Statements do not include all of the disclosures required in the annual financial statements and should be read in conjunction with the Corporation's 2023 Annual Financial Statements. In management's opinion, these Interim Financial Statements include all adjustments that are of a normal recurring nature, necessary for fair presentation.

The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates.

The accounting policies applied herein are consistent with those outlined in the Corporation's 2023 Annual Financial Statements.

8
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
3. ACCOUNTING POLICIES (cont'd)

Future Accounting Pronouncements
The Corporation considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. Any ASUs not included in these Interim Financial Statements were assessed and determined to be either not applicable to the Corporation or are not expected to have a material impact on the Interim Financial Statements.

Segment Reporting: ASU No. 2023-07, Improvements to Reportable Segment Disclosures, is effective for Fortis' December 31, 2024 annual financial statements and for interim periods beginning in 2025, on a retrospective basis. The ASU requires disclosure of incremental segment information, including significant segment expenses and other items that are included in segment profit or loss. Fortis is continuing to assess the impact on its disclosures.

Income Taxes: ASU No. 2023-09, Improvements to Income Tax Disclosures, is effective for Fortis on January 1, 2025 on a prospective basis, with retrospective application and early adoption permitted. The ASU requires additional disclosure of income tax information by jurisdiction to reflect an entity's exposure to potential changes in tax legislation, and associated risks and opportunities. Fortis does not expect the ASU to materially impact its disclosures.


4. SEGMENTED INFORMATION

Fortis segments its business based on regulatory jurisdiction and service territory, as well as the information used by its President and Chief Executive Officer in deciding how to allocate resources. Segment performance is evaluated principally on net earnings attributable to common equity shareholders.

Related-Party and Inter-Company Transactions
Related-party transactions are in the normal course of operations and are measured at the amount of consideration agreed to by the related parties. There were no material related-party transactions for the three and six months ended June 30, 2024 and 2023.

Fortis periodically provides short-term financing to subsidiaries to support capital expenditures and seasonal working capital requirements, the impacts of which are eliminated on consolidation. As at June 30, 2024 and December 31, 2023, there were no material inter-segment loans outstanding. Interest charged on inter-segment loans was not material for the three and six months ended June 30, 2024 and 2023.


9
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
4. SEGMENTED INFORMATION (cont'd)

RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Quarter ended June 30, 2024
Revenue556 710 303 336 204 120 433 2,662 8 —2,670 
Energy supply costs— 272 96 77 — 21 247 713 — —713 
Operating expenses129 189 167 101 50 34 62 732 7 —739 
Depreciation and amortization111 101 31 84 75 22 55 479 1 —480 
Operating income316 148 9 74 79 43 69 738 — —738 
Other income, net26 9 16 10 3 1 2 67 (2)—65 
Finance charges120 37 18 39 34 20 23 291 56 —347 
Income tax expense51 16 2 13 8 4 5 99 (30)—69 
Net earnings171 104 5 32 40 20 43 415 (28)—387 
Non-controlling interests32 — — 1 — — 5 38 — —38 
Preference share dividends— — — — — — — — 18 —18 
Net earnings attributable to common equity shareholders139 104 5 31 40 20 38 377 (46)—331 
Additions to property, plant and equipment and intangible assets309 209 98 221 135 33 106 1,111 1 —1,112 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Quarter ended June 30, 2023
Revenue519 661 317 362 181 116 420 2,576 18 —2,594 
Energy supply costs— 262 121 141 — 22 241 787 — —787 
Operating expenses125 204 144 91 44 31 56 695 18 —713 
Depreciation and amortization103 88 28 78 67 24 51 439 1 —440 
Operating income 291 107 24 52 70 39 72 655 (1)—654 
Other income, net19 12 13 9 3 1 5 62 2 —64 
Finance charges105 37 15 43 30 19 21 270 53 —323 
Income tax expense 49 12 5 (5)2 3 8 74 (25)—49 
Net earnings 156 70 17 23 41 18 48 373 (27)—346 
Non-controlling interests29 — — — — — 6 35 — —35 
Preference share dividends— — — — — — — — 17 —17 
Net earnings attributable to common equity shareholders127 70 17 23 41 18 42 338 (44)—294 
Additions to property, plant and equipment and intangible assets264 183 78 125 182 35 115 982 — —982 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 

10
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
4. SEGMENTED INFORMATION (cont'd)

RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Year-to-date June 30, 2024
Revenue1,106 1,465 678 897 401 266 960 5,773 15 —5,788 
Energy supply costs— 598 218 239 — 70 597 1,722 — —1,722 
Operating expenses265 395 338 196 97 67 125 1,483 22 —1,505 
Depreciation and amortization220 199 61 168 144 44 108 944 3 —947 
Operating income621 273 61 294 160 85 130 1,624 (10)—1,614 
Other income, net54 21 30 19 5 3 10 142 (4)—138 
Finance charges233 72 36 78 67 40 47 573 110 —683 
Income tax expense102 30 13 57 13 8 12 235 (65)—170 
Net earnings340 192 42 178 85 40 81 958 (59)—899 
Non-controlling interests63 — — 1 — — 9 73 — —73 
Preference share dividends— — — — — — — — 36 —36 
Net earnings attributable to common equity shareholders277 192 42 177 85 40 72 885 (95)—790 
Additions to property, plant and equipment and intangible assets666 423 187 423 263 60 201 2,223 2 —2,225 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Year-to-date June 30, 2023
Revenue1,038 1,401 759 1,117 360 255 927 5,857 56 —5,913 
Energy supply costs— 599 328 518 — 69 585 2,099 — —2,099 
Operating expenses260 394 306 189 86 61 116 1,412 42 —1,454 
Depreciation and amortization204 175 56 155 131 48 101 870 6 —876 
Operating income 574 233 69 255 143 77 125 1,476 8 —1,484 
Other income, net36 26 27 16 3 2 12 122 11 —133 
Finance charges204 73 33 84 60 39 42 535 103 —638 
Income tax expense 96 26 14 40 5 4 14 199 (50)—149 
Net earnings 310 160 49 147 81 36 81 864 (34)—830 
Non-controlling interests57 — — — — — 9 66 — —66 
Preference share dividends— — — — — — — — 33 —33 
Net earnings attributable to common equity shareholders253 160 49 147 81 36 72 798 (67)—731 
Additions to property, plant and equipment and intangible assets600 368 156 239 301 62 208 1,934 2 —1,936 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 

11
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
5. ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses balance, which is recorded in accounts receivable and other current assets, changed as follows.

QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Balance, beginning of period(69)(59)(68)(58)
Credit loss expense(8)(3)(16)(11)
Credit loss deferral(9)(2)(20)(3)
Write-offs, net of recoveries17 4 36 12 
Foreign exchange— — (1)— 
Balance, end of period(69)(60)(69)(60)

See Note 14 for disclosure on the Corporation's credit risk.


6. REGULATORY ASSETS AND LIABILITIES

Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2023 Annual Financial Statements. A summary follows.
As at
June 30,December 31,
($ millions)
2024 2023 
Regulatory assets
Deferred income taxes 2,141 2,058 
Deferred energy management costs 532 521 
Rate stabilization and related accounts 492 521 
Employee future benefits 257 254 
Derivatives182 197 
Deferred lease costs 139 137 
Deferred restoration costs134 115 
Manufactured gas plant site remediation deferral 78 81 
Generation early retirement costs72 64 
Other regulatory assets 515 436 
Total regulatory assets4,542 4,384 
Less: Current portion(780)(866)
Long-term regulatory assets3,762 3,518 
Regulatory liabilities
Future cost of removal1,631 1,547 
Deferred income taxes1,291 1,280 
Employee future benefits292 294 
Rate stabilization and related accounts291 292 
Renewable energy surcharge129 129 
Alberta Electric System Operator charges deferral115 121 
Energy efficiency liability88 78 
Other regulatory liabilities236 217 
Total regulatory liabilities4,073 3,958 
Less: Current portion(607)(577)
Long-term regulatory liabilities3,466 3,381 

12
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
7. LONG-TERM DEBT
As at
June 30,December 31,
($ millions)2024 2023 
Long-term debt29,474 28,131 
Credit facility borrowings 2,006 1,572 
Total long-term debt31,480 29,703 
Less: Deferred financing costs and debt discounts(179)(172)
Less: Current installments of long-term debt(2,630)(2,296)
28,671 27,235 

Significant Long-Term Debt IssuancesInterest
Year-to-date June 30, 2024MonthRateUse of
($ millions, except as noted)
Issued

(%)
MaturityAmountProceeds
ITC
Secured senior notesJanuary5.98 2034US85 
(1) (2) (3)
First mortgage bondsJanuary5.11 2029US75 
(1) (2) (3)
First mortgage bondsJanuary5.38 2034US75 
(1) (2) (3)
Unsecured senior notesMay5.65 2034US400 
(3) (4)
Central Hudson
Senior notesApril5.59 2031US25 
(1) (3)
Senior notesApril5.69 2034US35 
(1) (3)
FortisAlberta
Unsecured debenturesMay4.90 2054300 
(1) (2) (3) (4)
Caribbean Utilities
Unsecured senior notesMay6.17 2039US40 
(1) (2) (3) (5)
Unsecured senior notesMay6.37 2049US40 
(1) (2) (3) (5)
UNS Energy
Unsecured senior notesJune5.60 2036US30 
(1) (3)
(1)    Repay short-term and/or credit facility borrowings
(2)    Fund capital expenditures
(3)    General corporate purposes
(4)     Repay maturing long-term debt
(5)     Total of US$50 million expected to be used to fund or refinance a portfolio of new and/or existing qualifying green initiatives

In November 2022, Fortis filed a short-form base shelf prospectus with a 25-month life under which it may issue common or preference shares, subscription receipts, or debt securities in an aggregate principal amount of up to $2.0 billion. In September 2023, Fortis established an at-the-market equity program ("ATM Program") pursuant to the short-form base shelf prospectus, that allows the Corporation to issue up to $500 million of common shares from treasury to the public from time to time, at the Corporation's discretion, effective until December 22, 2024. As at June 30, 2024, $500 million remained available under the ATM Program and $1.5 billion remained available under the short-form base shelf prospectus.

As at
Credit facilitiesRegulatedCorporateJune 30,December 31,
($ millions)Utilitiesand Other2024 2023 
Total credit facilities4,234 2,260 6,494 6,176 
Credit facilities utilized:
Short-term borrowings (1)
(68)— (68)(119)
Long-term debt (including current portion) (2)
(1,192)(814)(2,006)(1,572)
Letters of credit outstanding(55)(21)(76)(101)
Credit facilities unutilized2,919 1,425 4,344 4,384 
(1)    The weighted average interest rate was 7.3% (December 31, 2023 - 6.9%).
(2)    The weighted average interest rate was 5.7% (December 31, 2023 - 6.2%). The current portion was $1,610 million (December 31, 2023 - $1,160 million).

Credit facilities are syndicated primarily with large banks in Canada and the U.S., with no one bank holding more than approximately 20% of the Corporation's total revolving credit facilities. Approximately $6.0 billion of the total credit facilities are committed with maturities ranging from 2024 through 2029.
13
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
7. LONG-TERM DEBT (cont'd)

See Note 14 in the 2023 Annual Financial Statements for a description of the credit facilities as at December 31, 2023.

In April 2024, FortisBC Energy increased its operating credit facility from $700 million to $900 million and extended the maturity to July 2028. In May 2024, FortisBC Electric increased its operating credit facility from $150 million to $200 million and extended the maturity to April 2028.

In May 2024, the Corporation extended the maturity on its unsecured US$500 million non-revolving term credit facility to May 2025. The facility is repayable at any time without penalty. In June 2024, the Corporation amended its $1.3 billion revolving term committed credit facility to extend the maturity to July 2029.


8. PREFERENCE SHARES

On March 1, 2024, the annual fixed dividend per share for the First Preference Shares, Series K was reset from $0.9823 to $1.3673 for the five-year period up to but excluding March 1, 2029.


9. EMPLOYEE FUTURE BENEFITS

Fortis and each subsidiary maintain one or a combination of defined benefit pension plans and defined contribution pension plans, as well as other post-employment benefit ("OPEB") plans, including health and dental coverage and life insurance benefits, for qualifying members. The net benefit cost is detailed below.
Defined Benefit
Pension Plans
OPEB Plans
($ millions)2024 2023 2024 2023 
Quarter ended June 30
Service costs19 16 6 6 
Interest costs40 40 8 7 
Expected return on plan assets(55)(50)(7)(5)
Amortization of actuarial gains— (3)(5)(5)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 2 1 1 
Net benefit cost3 4 3 3 
Year-to-date June 30
Service costs37 31 12 11 
Interest costs80 80 15 15 
Expected return on plan assets(110)(100)(13)(11)
Amortization of actuarial gains— (5)(9)(9)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 6 1 3 
Net benefit cost6 11 6 8 

Defined contribution pension plan expense for the three and six months ended June 30, 2024 was $14 million and $31 million, respectively (three and six months ended June 30, 2023 - $13 million and $29 million, respectively).


10. DISPOSITION

In November 2023, Fortis sold its Aitken Creek business to a subsidiary of Enbridge Inc. for approximately $470 million including working capital and closing adjustments.

For the three and six months ended June 30, 2023, Aitken Creek had net earnings of $3 million and $18 million, respectively.

14
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
11. OTHER INCOME, NET

QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Equity component, allowance for funds used during construction32 23 62 46 
Non-service component of net periodic benefit cost18 16 36 32 
Interest income (1)
16 18 32 34 
Equity income(1)2 4 7 
(Loss) gain on derivatives, net(1)3 (6)12 
Other1 2 10 2 
65 64 138 133 
(1)    Includes interest on short-term deposits, as well as interest on regulatory deferrals, including the PPFAC at TEP and UNSE


12. EARNINGS PER COMMON SHARE

Diluted earnings per share ("EPS") was calculated using the treasury stock method for stock options.

20242023
Net EarningsWeightedNet EarningsWeighted
to CommonAverageto CommonAverage
ShareholdersSharesEPSShareholdersSharesEPS
($ millions)(# millions)($)($ millions)(# millions)($)
Quarter ended June 30
Basic EPS331 494.0 0.67 294 485.4 0.61 
Potential dilutive effect of stock options— 0.2 — 0.3 
Diluted EPS331 494.2 0.67 294 485.7 0.61 
Year-to-date June 30
Basic EPS790 492.8 1.60 731 484.3 1.51 
Potential dilutive effect of stock options— 0.4 — 0.3 
Diluted EPS790 493.2 1.60 731 484.6 1.51 


13. SUPPLEMENTARY CASH FLOW INFORMATION

QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Change in working capital
Accounts receivable and other current assets128 208 63 489 
Prepaid expenses(27)(19)(29)(19)
Inventories(44)(29)(14)62 
Regulatory assets - current portion42 164 134 160 
Accounts payable and other current liabilities(160)(132)(347)(537)
Regulatory liabilities - current portion17 25 18 22 
(44)217 (175)177 
Non-cash investing and financing activities
Accrued capital expenditures469 366 469 366 
Common share dividends reinvested107 102 218 205 
Contributions in aid of construction9 10 9 10 

15
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Derivatives
The Corporation generally limits the use of derivatives to those that qualify as accounting, economic or cash flow hedges, or those that are approved for regulatory recovery.

Derivatives are recorded at fair value with certain exceptions including those derivatives that qualify for the normal purchase and normal sale exception. Fair values reflect estimates based on current market information about the derivatives as at the balance sheet dates. The estimates cannot be determined with precision as they involve uncertainties and matters of judgment and, therefore, may not be relevant in predicting the Corporation's future consolidated earnings or cash flow.

Energy Contracts Subject to Regulatory Deferral
UNS Energy holds electricity power purchase contracts, customer supply contracts and gas swap contracts to reduce its exposure to energy price risk. Fair values are measured primarily under the market approach using independent third-party information, where possible. When published prices are not available, adjustments are applied based on historical price curve relationships, transmission costs and line losses.

Central Hudson holds swap contracts for electricity and natural gas to minimize price volatility by fixing the effective purchase price. Fair values are measured using forward pricing provided by independent third-party information.

FortisBC Energy holds gas supply contracts to fix the effective purchase price of natural gas. Fair values reflect the present value of future cash flows based on published market prices and forward natural gas price curves.

Unrealized gains or losses associated with changes in the fair value of these energy contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates, as permitted by the regulators. As at June 30, 2024, unrealized losses of $182 million (December 31, 2023 - $197 million) were recognized as regulatory assets and unrealized gains of $42 million (December 31, 2023 - $37 million) were recognized as regulatory liabilities.

Energy Contracts Not Subject to Regulatory Deferral
UNS Energy holds wholesale trading contracts to fix power prices and realize potential margin, of which 10% of any realized gains is shared with customers through rate stabilization accounts. Fair values are measured using a market approach incorporating, where possible, independent third-party information.

Aitken Creek, which was sold on November 1, 2023, held gas swap contracts to manage its exposure to changes in natural gas prices, capture natural gas price spreads, and manage the financial risk posed by physical transactions. Fair values were measured using forward pricing from published market sources.

Unrealized gains or losses associated with changes in the fair value of these energy contracts are recognized in revenue. During the three and six months ended June 30, 2024, unrealized gains of $nil and $36 million were recognized in revenue, respectively (three and six months ended June 30, 2023 - unrealized losses of $8 million and unrealized gains of $6 million, respectively).

Total Return Swaps
The Corporation holds total return swaps to manage the cash flow risk associated with forecast future cash and/or share settlements of certain stock-based compensation obligations. The swaps have a combined notional amount of $134 million and terms of one to three years expiring at varying dates through January 2027. Fair value is measured using an income valuation approach based on forward pricing curves. Unrealized gains and losses associated with changes in fair value are recognized in other income, net. During the three and six months ended June 30, 2024, unrealized losses of $1 million and $4 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - unrealized losses of $1 million and unrealized gains of $5 million, respectively).

Foreign Exchange Contracts
The Corporation holds U.S. dollar denominated foreign exchange contracts to help mitigate exposure to foreign exchange rate volatility. The contracts expire at varying dates through March 2026 and have a combined notional amount of $440 million. Fair value was measured using independent third-party information. Unrealized gains and losses associated with changes in fair value are recognized in other income, net. During the three and six months ended June 30, 2024, unrealized losses of $2 million and $5 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - unrealized gains of $5 million and $7 million, respectively).

Interest Rate Locks
During the second quarter of 2024, ITC entered into and settled interest rate locks with a combined notional value of US$300 million. These contracts were used to manage interest rate risk associated with the issuance of US$400 million unsecured senior notes in May 2024. Realized losses of US$3 million were recognized in other comprehensive income, which will be reclassified to earnings as a component of interest expense over 5 years.


16
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont'd)

Cross-Currency Interest Rate Swaps
The Corporation holds cross-currency interest rate swaps, maturing in 2029, to effectively convert its $500 million, 4.43% unsecured senior notes to US$391 million, 4.34% debt. The Corporation has designated this notional U.S. debt as an effective hedge of its foreign net investments and unrealized gains and losses associated with exchange rate fluctuations on the notional U.S. debt are recognized in other comprehensive income, consistent with the translation adjustment related to the foreign net investments. Other changes in the fair value of the swaps are also recognized in other comprehensive income but are excluded from the assessment of hedge effectiveness. Fair value is measured using a discounted cash flow method based on secured overnight financing rates. During the three and six months ended June 30, 2024, unrealized losses of $2 million and $15 million, respectively were recorded in other comprehensive income (three and six months ended June 30, 2023 - unrealized gains of $9 million and $10 million, respectively).

Other Investments
UNS Energy holds investments in money market accounts, and ITC and Central Hudson hold investments in trust associated with supplemental retirement benefit plans for select employees, which include mutual funds and money market accounts. These investments are recorded at fair value based on quoted market prices in active markets. Gains and losses are recognized in other income, net. During the three and six months ended June 30, 2024, gains of $2 million and $6 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - gains of $1 million and $3 million, respectively).

Recurring Fair Value Measures

The following table presents assets and liabilities that are accounted for at fair value on a recurring basis.

($ millions)
Level 1 (1)
Level 2 (1)
Level 3 (1)
Total
As at June 30, 2024
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 57 — 57 
Energy contracts not subject to regulatory deferral (2)
— 40 — 40 
Other investments (4)
132 — — 132 
132 97 — 229 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (197)— (197)
Energy contracts not subject to regulatory deferral (5)
— (2)— (2)
Foreign exchange contracts, total return and cross-currency interest rate swaps (5)
— (24)— (24)
— (223)— (223)
As at December 31, 2023
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 49 — 49 
Energy contracts not subject to regulatory deferral (2)
— 6 — 6 
Foreign exchange contracts (2)
— 5 — 5 
Other investments (4)
145 — — 145 
145 60 — 205 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (209)— (209)
Energy contracts not subject to regulatory deferral (5)
— (3)— (3)
Total return and cross-currency interest rate swaps (5)
— (6)— (6)
— (218)— (218)
(1)Under the hierarchy, fair value is determined using: (i) level 1 - unadjusted quoted prices in active markets; (ii) level 2 - other pricing inputs directly or indirectly observable in the marketplace; and (iii) level 3 - unobservable inputs, used when observable inputs are not available. Classifications reflect the lowest level of input that is significant to the fair value measurement.
(2)Included in accounts receivable and other current assets or other assets
(3)Unrealized gains and losses arising from changes in fair value of these contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates as permitted by the regulators, with the exception of long-term wholesale trading contracts and certain gas swap contracts.
(4)Included in cash and cash equivalents and other assets
(5)Included in accounts payable and other current liabilities or other liabilities

Energy Contracts
The Corporation has elected gross presentation for its derivative contracts under master netting agreements and collateral positions, which apply only to its energy contracts. The following table presents the potential offset of counterparty netting.

17
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont'd)

Gross AmountCounterparty
Recognized inNetting ofCash Collateral
($ millions)Balance SheetEnergy ContractsPosted/(Received)Net Amount
As at June 30, 2024
Derivative assets97 (34)15 78 
Derivative liabilities(199)34 (10)(175)
As at December 31, 2023
Derivative assets55 (24)28 59 
Derivative liabilities(212)24 (1)(189)

Volume of Derivative Activity
As at June 30, 2024, the Corporation had various energy contracts that will settle on various dates through 2029. The volumes related to electricity and natural gas derivatives are outlined below.
As at
June 30,December 31,
2024 2023 
Energy contracts subject to regulatory deferral (1)
Electricity swap contracts (GWh)
831 628 
Electricity power purchase contracts (GWh)
492 588 
Gas swap contracts (PJ)
247 228 
Gas supply contracts (PJ)
113 134 
Energy contracts not subject to regulatory deferral (1)
Wholesale trading contracts (GWh)
4,092 1,310 
Gas swap contracts (PJ)
2 3 
(1)GWh means gigawatt hours and PJ means petajoules.

Credit Risk
For cash equivalents, accounts receivable and other current assets, and long-term other receivables, credit risk is generally limited to the carrying value on the consolidated balance sheets. The Corporation's subsidiaries generally have a large and diversified customer base, which minimizes the concentration of credit risk. Policies in place to minimize credit risk include requiring customer deposits, prepayments and/or credit checks for certain customers, performing disconnections and/or using third-party collection agencies for overdue accounts.

ITC has a concentration of credit risk as approximately 70% of its revenue is derived from three customers. The customers have investment-grade credit ratings and credit risk is further managed by MISO by requiring a letter of credit or cash deposit equal to the credit exposure, which is determined by a credit-scoring model and other factors.

FortisAlberta has a concentration of credit risk as distribution service billings are to a relatively small group of retailers. Credit risk is managed by obtaining from the retailers either a cash deposit, letter of credit, an investment-grade credit rating, or a financial guarantee from an entity with an investment-grade credit rating.

Central Hudson has seen an increase in accounts receivable since the suspension of collection efforts initially required in response to the COVID-19 pandemic. Central Hudson continues to proactively contact customers regarding past-due balances to advise them of financial assistance available through state programs, and collection efforts continue to expand. Under its regulatory framework, Central Hudson can defer uncollectible write-offs that exceed 10 basis points above the amounts collected in customer rates for future recovery.

UNS Energy, Central Hudson, FortisBC Energy, and the Corporation may be exposed to credit risk in the event of non-performance by counterparties to derivatives. Credit risk is managed by net settling payments, when possible, and dealing only with counterparties that have investment-grade credit ratings. At UNS Energy, Central Hudson and FortisBC Energy, certain contractual arrangements require counterparties to post collateral.

The value of derivatives in net liability positions under contracts with credit risk-related contingent features that, if triggered, could require the posting of a like amount of collateral was $111 million as at June 30, 2024 (December 31, 2023 - $117 million).


18
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Notes to Condensed Consolidated Interim Financial Statements (Unaudited)
For the three and six months ended June 30, 2024 and 2023
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont'd)

Hedge of Foreign Net Investments
The reporting currency of ITC, UNS Energy, Central Hudson, Caribbean Utilities, FortisTCI, Fortis Belize Limited and Belize Electricity is, or is pegged to, the U.S. dollar. The earnings and cash flow from, and net investments in, these entities are exposed to fluctuations in the U.S. dollar-to-Canadian dollar exchange rate. The Corporation has reduced this exposure through hedging.

As at June 30, 2024, US$2.6 billion (December 31, 2023 - US$2.6 billion) of corporately issued U.S. dollar-denominated long-term debt has been designated as an effective hedge of net investments, leaving approximately US$11.8 billion (December 31, 2023 - US$11.5 billion) unhedged. Exchange rate fluctuations associated with the net investment in foreign subsidiaries and the debt serving as the hedge are recognized in accumulated other comprehensive income.

Financial Instruments Not Carried at Fair Value
Excluding long-term debt, the consolidated carrying value of the Corporation's remaining financial instruments approximates fair value, reflecting their short-term maturity, normal trade credit terms and/or nature.

As at June 30, 2024, the carrying value of long-term debt, including current portion, was $31.5 billion (December 31, 2023 - $29.7 billion) compared to an estimated fair value of $28.9 billion (December 31, 2023 - $27.9 billion).


15. COMMITMENTS AND CONTINGENCIES

Commitments
There were no material changes in commitments from that disclosed in the Corporation's 2023 Annual Financial Statements.

Contingency
In April 2013, FortisBC Holdings Inc. and Fortis were named as defendants in an action in the British Columbia Supreme Court by the Coldwater Indian Band ("Band") regarding interests in a pipeline across reserve lands. The Band seeks cancellation of the right-of-way and damages for wrongful interference with the Band's use and enjoyment of reserve lands. In 2016, the Federal Court dismissed the Band's application for judicial review of the ministerial consent. In 2017, the Federal Court of Appeal set aside the minister's consent and returned the matter to the minister for redetermination. No amount has been accrued as the outcome cannot yet be reasonably determined.
19
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
Exhibit 99.3
Interim Management Discussion and Analysis

Contents
About Fortis1Cash Flow Requirements11
Performance at a Glance2Cash Flow Summary13
Business Unit Performance4Contractual Obligations14
ITC5Capital Structure and Credit Ratings14
UNS Energy5Capital Plan15
Central Hudson6Business Risks16
FortisBC Energy6Accounting Matters16
FortisAlberta7Financial Instruments16
FortisBC Electric7Long-Term Debt and Other16
Other Electric8Derivatives16
Corporate and Other8Summary of Quarterly Results17
Non-U.S. GAAP Financial Measures9Related-Party and Inter-Company Transactions18
Focus on Sustainability9Outlook18
Regulatory Matters10Forward-Looking Information18
Financial Position11Glossary19
Liquidity and Capital Resources11Condensed Consolidated Interim Financial Statements (Unaudited)F-1

Dated July 30, 2024

This Interim MD&A has been prepared in accordance with National Instrument 51-102 - Continuous Disclosure Obligations. It should be read in conjunction with the Interim Financial Statements, the 2023 Annual Financial Statements and the 2023 Annual MD&A and is subject to the cautionary statement and disclaimer provided under "Forward-Looking Information" on page 18. Further information about Fortis, including its Annual Information Form filed on SEDAR+, can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.

Financial information herein has been prepared in accordance with U.S. GAAP (except for indicated Non-U.S. GAAP Financial Measures) and, unless otherwise specified, is presented in Canadian dollars based, as applicable, on the following U.S. dollar-to-Canadian dollar exchange rates: (i) average of 1.37 and 1.34 for the quarters ended June 30, 2024 and 2023, respectively; (ii) average of 1.36 and 1.35 year-to-date June 30, 2024 and 2023, respectively; (iii) 1.37 and 1.32 as at June 30, 2024 and 2023, respectively; (iv) 1.32 as at December 31, 2023; and (v) 1.30 for all forecast periods. Certain terms used in this Interim MD&A are defined in the "Glossary" on page 19.


ABOUT FORTIS

Fortis (TSX/NYSE: FTS) is a well-diversified leader in the North American regulated electric and gas utility industry, with 2023 revenue of $12 billion and total assets of $69 billion as at June 30, 2024. The Corporation's 9,600 employees serve 3.5 million utility customers in five Canadian provinces, ten U.S. states and three Caribbean countries.

For additional information on the Corporation's operations, reportable segments and strategy, refer to the "About Fortis" section of the 2023 Annual MD&A and Note 1 to the Interim Financial Statements.


1
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
PERFORMANCE AT A GLANCE
Key Financial Metrics
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)
2024 2023 Variance2024 2023 Variance
Revenue2,670 2,594 76 5,788 5,913 (125)
Common Equity Earnings
Actual331 294 37 790 731 59 
Adjusted (1)
331 302 29 790 741 49 
Basic EPS ($)
Actual0.67 0.61 0.06 1.60 1.51 0.09 
Adjusted (1)
0.67 0.62 0.05 1.60 1.53 0.07 
Dividends paid per common share ($)
0.59 0.565 0.025 1.18 1.13 0.05 
Weighted average number of common shares outstanding (# millions)
494.0 485.4 8.6 492.8 484.3 8.5 
Operating Cash Flow814 944 (130)1,582 1,859 (277)
Capital Expenditures (1)
1,126 1,025 101 2,254 2,020 234 
(1)See "Non-U.S. GAAP Financial Measures" on page 9

Revenue
The increase in revenue for the quarter was due to: (i) new customer rates at TEP effective September 1, 2023; (ii) the timing of recognition of new cost of capital parameters approved for FortisBC in September 2023, retroactive to January 1, 2023; (iii) Rate Base growth; and (iv) a higher U.S.-to-Canadian dollar foreign exchange rate. The increase was partially offset by lower flow-through costs in customer rates.

The decrease in revenue for the year-to-date period was due to lower flow-through costs in customer rates, driven by lower commodity prices at FortisBC Energy and Central Hudson. The decrease was partially offset by: (i) new customer rates at TEP; (ii) the timing of recognition of new cost of capital parameters at FortisBC; (iii) Rate Base growth; and (iv) a higher foreign exchange rate, all discussed above for the quarter.

Earnings and EPS
Common Equity Earnings increased by $37 million in comparison to the second quarter of 2023. The increase was driven by strong earnings in Arizona, reflecting new customer rates at TEP effective September 1, 2023 and higher retail electricity sales associated with warmer weather. Rate Base growth across our utilities and the timing of recognition of new cost of capital parameters approved for FortisBC in 2023 also contributed to earnings growth. The increase was partially offset by lower earnings for Central Hudson and the Other Electric segment, largely reflecting higher operating costs.

Common Equity Earnings for the year-to-date period increased by $59 million in comparison to the same period in 2023. The increase was due to higher earnings in Arizona, Rate Base growth, and the new cost of capital parameters at FortisBC, as discussed above. Growth was partially offset by: (i) higher operating costs at Central Hudson; (ii) higher holding company costs, including finance charges and unrealized losses on derivative contracts; and (iii) the November 1, 2023 disposition of Aitken Creek. Although the disposition of Aitken Creek was unfavourable to the change in earnings for the first half of the year, the impact will be neutral for the annual period.

In addition to the above-noted items impacting earnings, the change in EPS for the quarter and year-to-date periods reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's DRIP.

There were no adjustments to Common Equity Earnings for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, adjustments to Common Equity Earnings of $8 million and $10 million, respectively, were recognized associated with mark-to-market accounting of natural gas derivatives at Aitken Creek. Refer to "Non-U.S. GAAP Financial Measures" on page 9. The changes in Adjusted Basic EPS for the quarter and year-to-date periods are illustrated in the following chart.


2
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
chart-c5eaeac497094574901a.jpg
(1)    Includes UNS Energy and Central Hudson. Reflects higher earnings at UNS Energy due to new customer rates at TEP effective September 1, 2023, and higher retail electricity sales due to warmer weather. Also reflects lower earnings at Central Hudson due to higher operating costs and a favourable regulatory adjustment recognized in the second quarter of 2023, partially offset by Rate Base growth
(2)    Reflects Rate Base growth partially offset by higher holding company finance costs
(3)    Includes FortisBC Energy, FortisAlberta and FortisBC Electric. Reflects higher earnings at FortisBC due to the timing of recognition of new cost of capital parameters approved in September 2023, retroactive to January 1, 2023. Also reflects lower earnings at FortisAlberta due to the timing of operating and income tax expenses
(4)    Reflects higher operating, depreciation and finance costs as well as lower income from equity-accounted investments, partially offset by Rate Base growth
(5)    Reflects the disposition of Aitken Creek in November 2023 and higher finance costs
(6)    Weighted average shares of 494.0 million in 2024 compared to 485.4 million in 2023

chart-a7a8d85d1bb34634affa.jpg
(1)    Includes FortisBC Energy, FortisAlberta and FortisBC Electric. Reflects higher earnings at FortisBC due to the timing of recognition of new cost of capital parameters approved in September 2023, retroactive to January 1, 2023. Also reflects higher earnings at FortisAlberta due to Rate Base growth, an increase in the allowed ROE and higher demand charges and customer additions
(2)    Includes UNS Energy and Central Hudson. Reflects higher earnings at UNS Energy due to new customer rates at TEP effective September 1, 2023, higher retail electricity sales due to warmer weather, and favourable margins on wholesale sales, partially offset by higher operating costs. Also reflects lower earnings at Central Hudson due to higher operating costs and a favourable regulatory adjustment recognized in the second quarter of 2023, partially offset by Rate Base growth
(3)    Reflects Rate Base growth and lower non-recoverable stock-based compensation costs, partially offset by higher holding company finance costs
(4)    Reflects the disposition of Aitken Creek in 2023, unrealized losses on derivative contracts and higher finance costs
(5)    Weighted average shares of 492.8 million in 2024 compared to 484.3 million in 2023


3
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Dividends and TSR
Fortis paid a dividend of $0.59 per common share in the second quarter of 2024, up 4.4% from $0.565 paid in the second quarter of 2023.

Fortis has increased its common share dividends paid for 50 consecutive years and is targeting annual dividend growth of approximately 4-6% through 2028. See "Outlook" on page 18.

Growth of dividends and the market price of the Corporation's common shares have together yielded the following TSRs.

TSR (1) (%)
1-Year5-Year10-Year20-Year
Fortis(2.8)4.4 9.1 10.7 
(1)Annualized TSR per Bloomberg as at June 30, 2024

Operating Cash Flow
The $130 million and $277 million decrease in Operating Cash Flow for the quarter and year-to-date periods was primarily due to FortisBC Energy, driven by the timing of flow-through costs in customer rates as well as changes in working capital. The decrease was also due to: (i) the disposition of Aitken Creek in November 2023, which contributed $20 million and $120 million of cash flow for the three and six months ended June 30, 2023, respectively, associated with changes in working capital balances; and (ii) the timing of transmission-related amounts in Alberta. The decrease was partially offset by: (i) higher cash earnings, reflecting Rate Base growth, as well as new customer rates and higher sales at TEP; and (ii) higher collection of flow-through costs in Arizona.

Capital Expenditures
Capital Expenditures were approximately $2.3 billion year-to-date June 2024, representing 48% of the Corporation's annual $4.8 billion Capital Plan. Capital Expenditures were $0.2 billion higher compared to the same period in 2023, largely related to the construction of the Eagle Mountain Woodfibre Gas Line project at FortisBC Energy.

Capital Expenditures and Capital Plan reflect Non-U.S. GAAP Financial Measures. Refer to "Non-U.S. GAAP Financial Measures" on page 9 and in the "Glossary" on page 19.


BUSINESS UNIT PERFORMANCE
Common Equity EarningsQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions)2024 2023 
FX (1)
Other2024 2023 
FX (1)
Other
Regulated Utilities
ITC139 127 2 10 277 253 2 22 
UNS Energy104 70 2 32 192 160 2 30 
Central Hudson5 17 — (12)42 49 — (7)
FortisBC Energy31 23 — 8 177 147 — 30 
FortisAlberta40 41 — (1)85 81 — 4 
FortisBC Electric20 18 — 2 40 36 — 4 
Other Electric (2)
38 42 — (4)72 72 — — 
377 338 4 35 885 798 4 83 
Non-Regulated
Corporate and Other (3)
(46)(44)(2)— (95)(67)(2)(26)
Common Equity Earnings331 294 2 35 790 731 2 57 
(1)    The reporting currency of ITC, UNS Energy, Central Hudson, Caribbean Utilities, FortisTCI and Fortis Belize is the U.S. dollar. The reporting currency of Belize Electricity is the Belizean dollar, which is pegged to the U.S. dollar at BZ$2.00=US$1.00. Certain corporate and non-regulated holding company transactions, included in the Corporate and Other segment, are denominated in U.S. dollars.
(2)    Consists of the utility operations in eastern Canada and the Caribbean: Newfoundland Power; Maritime Electric; FortisOntario; Wataynikaneyap Power; Caribbean Utilities; FortisTCI; and Belize Electricity
(3)    Consists of non-regulated holding company expenses, as well as long-term contracted generation assets in Belize. Also includes Aitken Creek up to the November 1, 2023 date of disposition

4
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
ITCQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions)2024 2023 FXOther2024 2023 FXOther
Revenue (1)
556 519 9 28 1,106 1,038 9 59 
Earnings (1)
139 127 2 10 277 253 2 22 
(1)Revenue represents 100% of ITC. Earnings represent the Corporation's 80.1% controlling ownership interest in ITC and reflect consolidated purchase price accounting adjustments
Revenue
The increase in revenue, net of foreign exchange, for the quarter and year-to-date periods was due primarily to Rate Base growth and higher flow-through costs in customer rates.

Earnings
The increase in earnings, net of foreign exchange, for the quarter and year-to-date periods was due to Rate Base growth, partially offset by higher holding company finance costs. Lower non-recoverable stock-based compensation costs also contributed to the year-to-date increase in earnings.

UNS EnergyQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions, except as indicated)2024 2023 FXOther2024 2023 FXOther
Retail electricity sales (GWh)
2,708 2,594 — 114 4,891 4,816 — 75 
Wholesale electricity sales (GWh) (1)
1,386 1,252 — 134 3,190 2,631 — 559 
Gas sales (PJ)
3 3 — — 10 11 — (1)
Revenue710 661 11 38 1,465 1,401 11 53 
Earnings104 70 2 32 192 160 2 30 
(1)    Primarily short-term wholesale sales

Sales
The increase in retail electricity sales for the quarter and year-to-date periods was due primarily to higher air conditioning load associated with warmer temperatures in the second quarter of 2024. The increase in retail electricity sales year to date was partially offset by lower heating load associated with milder temperatures in the first quarter of 2024.

The increase in wholesale electricity sales was driven by higher short-term wholesale sales, partially offset by lower long-term wholesale sales. Revenue from short-term wholesale sales, which relate to contracts that are less than one-year in duration, is primarily credited to customers through the PPFAC mechanism and, therefore, does not materially impact earnings.

Gas sales for the quarter and year-to date periods were relatively consistent with the comparable periods in 2023.

Revenue
The increase in revenue, net of foreign exchange, for the quarter and year-to-date periods was due primarily to: (i) new customer rates at TEP effective September 1, 2023; (ii) the recovery of overall higher fuel and non-fuel costs through the normal operation of regulatory mechanisms; and (iii) higher retail electricity sales, discussed above. The increase was partially offset by lower wholesale sales revenue, largely driven by unfavourable pricing on short-term wholesale sales.

Earnings
The increase in earnings, net of foreign exchange, for the quarter and year-to-date periods was due to: (i) higher retail revenue associated with new customer rates at TEP effective September 1, 2023, following the conclusion of the general rate application; and (ii) higher retail electricity sales, discussed above. The increase was partially offset by higher depreciation expense, due to new depreciation rates also approved as part of the rate application. The increase in earnings for the year-to-date period was also due to higher margins on wholesale sales, reflecting market conditions, partially offset by higher operating costs due to inflationary increases.

5
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Central HudsonQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions, except as indicated)2024 2023 FXOther2024 2023 FXOther
Electricity sales (GWh)
1,170 1,143 — 27 2,471 2,410 — 61 
Gas sales (PJ)
4 4 — — 13 13 — — 
Revenue303 317 5 (19)678 759 5 (86)
Earnings5 17 — (12)42 49 — (7)

Sales
The increase in electricity sales for the quarter and year-to-date periods was due primarily to higher average consumption by commercial customers.

Gas sales for the quarter and year-to-date periods were consistent with the comparable periods in 2023.

Changes in electricity and gas sales at Central Hudson are subject to regulatory revenue decoupling mechanisms and, therefore, do not materially impact revenue and earnings.

Revenue
The decrease in revenue, net of foreign exchange, for the quarter and year-to-date periods was due primarily to the flow through of lower energy supply costs driven by commodity prices, as well as a favourable regulatory adjustment recognized in the second quarter of 2023 that did not reoccur in 2024. The decrease was partially offset by an increase in gas and electricity delivery rates effective July 1, 2023.

Earnings
The decrease in earnings for the quarter and year-to-date periods was due primarily to higher operating costs, including Central Hudson's US$4 million contribution to a customer benefit fund recorded in June 2024 (see "Regulatory Matters" on page 10). The conclusion of Central Hudson's 2024 general rate application and related rebasing of customer rates, with retroactive application to July 1, 2024, is expected to provide cost recovery that is better aligned with ongoing operating costs going forward. The decrease in earnings was also due to the favourable regulatory adjustment recognized in the second quarter of 2023, discussed above, partially offset by Rate Base growth.

FortisBC Energy
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)2024 2023 Variance2024 2023 Variance
Gas sales (PJ)
43 41 2 121 120 1 
Revenue336 362 (26)897 1,117 (220)
Earnings31 23 8 177 147 30 

Sales
Gas sales for the quarter and year-to-date periods were largely consistent with the comparable periods in 2023.

Revenue
The decrease in revenue for the quarter and year-to-date periods was due primarily to a lower cost of natural gas recovered from customers. The decrease was partially offset by the timing of recognition of new cost of capital parameters approved by the BCUC in September 2023, retroactive to January 1, 2023. The BCUC decision resulted in an increase in the ROE and common equity component of capital structure from 8.75% and 38.5%, respectively, as reflected in the first half of 2023, to 9.65% and 45%, respectively. The normal operation of regulatory mechanisms also contributed to the decrease in revenue for the year-to-date period.

Earnings
The increase in earnings for the quarter and year-to-date periods was due primarily to the timing of recognition of new cost of capital parameters, as discussed above, partially offset by the timing of operating costs.

FortisBC Energy earns approximately the same margin regardless of whether a customer contracts for the purchase and delivery of natural gas or only for delivery. Due to regulatory deferral mechanisms, changes in consumption levels and commodity costs do not materially impact earnings.

6
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
FortisAlberta
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)2024 2023 Variance2024 2023 Variance
Electricity deliveries (GWh)
3,930 3,899 31 8,508 8,409 99 
Revenue204 181 23 401 360 41 
Earnings40 41 (1)85 81 4 

Deliveries
The increase in electricity deliveries for the quarter and year-to-date periods was due primarily to customer additions.

As approximately 85% of FortisAlberta's revenue is derived from fixed or largely fixed billing determinants, changes in quantities of energy delivered are not entirely correlated with changes in revenue. Revenue is a function of numerous variables, many of which are independent of actual energy deliveries. Significant variations in weather conditions, however, can impact revenue and earnings.

Revenue
The increase in revenue for the quarter and year-to-date periods was due to: (i) an increase in the allowed ROE from 8.50% to 9.28%, as approved by the AUC, effective January 1, 2024; (ii) Rate base growth, including changes associated with the third PBR term beginning January 1, 2024; and (iii) higher industrial and commercial demand charges, as well as customer additions.

Earnings
The decrease in earnings for the quarter was due to the timing of costs, including operating and income tax expenses.

The increase in earnings year to date was due primarily to the increase in allowed ROE, Rate Base growth, and higher demand charges and customer additions, as discussed above. The increase in earnings was partially offset by higher operating expenses due to inflationary increases, as well as the timing of operating and income tax expenses.

FortisBC Electric
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)2024 2023 Variance2024 2023 Variance
Electricity sales (GWh)
757 784 (27)1,733 1,755 (22)
Revenue120 116 4 266 255 11 
Earnings20 18 2 40 36 4 

Sales
The decrease in electricity sales for the quarter and year-to-date periods was due to lower average consumption by residential customers due to cooler weather during the second quarter, partially offset by higher average consumption by industrial customers.

Revenue
The increase in revenue for the quarter and year-to-date periods was due primarily to Rate Base growth and the timing of recognition of new cost of capital parameters approved by the BCUC in September 2023, retroactive to January 1, 2023. The BCUC decision resulted in an increase in the ROE and common equity component of capital structure from 9.15% and 40%, respectively, as reflected in the first half of 2023, to 9.65% and 41%, respectively. The increase in revenue was partially offset by lower electricity sales.

Earnings
The increase in earnings for the quarter and year-to-date periods was due to Rate Base growth, the timing of recognition of new cost of capital parameters, as discussed above, and the timing of operating costs.

Due to regulatory deferral mechanisms, changes in consumption levels do not materially impact earnings.

7
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Other ElectricQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions, except as indicated)2024 2023 FXOther2024 2023 FXOther
Electricity sales (GWh)
2,303 2,294 — 9 5,422 5,331 — 91 
Revenue433 420 2 11 960 927 2 31 
Earnings38 42 — (4)72 72 — — 

Sales
Electricity sales for the quarter were consistent with the second quarter of 2023.

The year-to-date increase in electricity sales was due primarily to higher average consumption by residential and commercial customers, as well as customer additions. Higher average consumption was largely due to the conversion of home heating systems from oil to electric in eastern Canada, and tourism-related activities in the Caribbean.

Revenue
The increase in revenue for the quarter and year-to-date periods was primarily due to Rate Base growth. The flow-through of higher energy supply costs also contributed to the increase in revenue for the quarter.

Earnings
The decrease in earnings for the quarter was due primarily to higher operating, depreciation and finance costs, particularly at Newfoundland Power for which a regulatory proceeding for cost recovery remains ongoing. Lower income from equity-accounted investments also contributed to the decrease in earnings, partially offset by Rate Base growth.

Earnings for the year-to-date period were consistent with the comparable period in 2023.

Corporate and OtherQuarterYear-to-Date
Periods ended June 30VarianceVariance
($ millions, except as indicated)2024 2023 FXVariance2024 2023 FXOther
Electricity sales (GWh) (1)
41 29 — 12 76 60 — 16 
Revenue (2)
8 18 — (10)15 56 — (41)
Net loss (3)
(46)(44)(2)— (95)(67)(2)(26)
(1)    Reflects electricity sales at Fortis Belize
(2)    Includes revenue for Fortis Belize as well as revenue for Aitken Creek up to the November 1, 2023 date of disposition
(3)    Includes non-regulated holding company expenses, earnings for Fortis Belize, as well as earnings for Aitken Creek up to the November 1, 2023 date of disposition

Sales
The increase in electricity sales for the quarter and year-to-date periods reflected higher hydroelectric production in Belize associated with rainfall levels.

Revenue
The decrease in revenue for the quarter and year-to-date periods reflected the disposition of Aitken Creek in November 2023.

Net Loss
The net loss in the quarter, net of foreign exchange, was consistent with the second quarter of 2023.

The disposition of Aitken Creek in November 2023 had a $8 million unfavourable impact on the net loss in the Corporate and Other segment for the year-to-date period. Although the disposition was unfavourable in comparison to the first half of 2023, the impact will be neutral for the annual period. Absent the disposition of Aitken Creek, the net loss, excluding foreign exchange, increased by approximately $18 million due to: (i) unrealized losses on derivative contracts as compared to unrealized gains recognized in the first half of 2023; and (ii) higher holding company finance costs. These impacts were partially offset by lower operating costs and higher hydroelectric production in Belize.



8
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
NON-U.S. GAAP FINANCIAL MEASURES

Adjusted Common Equity Earnings, Adjusted Basic EPS and Capital Expenditures are Non-U.S. GAAP Financial Measures and may not be comparable with similar measures used by other entities. They are presented because management and external stakeholders use them in evaluating the Corporation's financial performance and prospects.

Net earnings attributable to common equity shareholders (i.e., Common Equity Earnings) and basic EPS are the most directly comparable U.S. GAAP measures to Adjusted Common Equity Earnings and Adjusted Basic EPS, respectively. These adjusted measures reflect the removal of items that management excludes in its key decision-making processes and evaluation of operating results.

Capital Expenditures include additions to property, plant and equipment and additions to intangible assets, as shown on the condensed consolidated statements of cash flows. It also includes Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power Project, consistent with Fortis' evaluation of operating results and its role as project manager during the construction of this Major Capital Project.

Non-U.S. GAAP Reconciliation
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)2024 2023 Variance2024 2023 Variance
Adjusted Common Equity Earnings and Adjusted Basic EPS
Common Equity Earnings331 294 37 790 731 59 
Adjusting item:
Unrealized loss on mark-to-market of derivatives at Aitken Creek (1)
— 8 (8)— 10 (10)
Adjusted Common Equity Earnings331 302 29 790 741 49 
Adjusted Basic EPS ($)
0.67 0.62 0.05 1.60 1.53 0.07 
Capital Expenditures
Additions to property, plant and equipment1,064 938 126 2,135 1,845 290 
Additions to intangible assets48 44 4 90 91 (1)
Adjusting item:
Wataynikaneyap Transmission Power Project (2)
14 43 (29)29 84 (55)
Capital Expenditures1,126 1,025 101 2,254 2,020 234 
(1)    Represents the mark-to-market accounting of natural gas derivatives at Aitken Creek, net of income tax recovery of $3 million and $4 million for the three and six months ended June 30, 2023, respectively, included in the Corporate and Other segment. The sale of Aitken Creek closed on November 1, 2023
(2)    Represents Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power Project, included in the Other Electric segment


FOCUS ON SUSTAINABILITY

Fortis' focus on sustainability is outlined in its 2023 Annual MD&A and the Corporation continues to advance work on a range of sustainability initiatives. In July 2024, Fortis released its 2024 Sustainability Report which summarizes progress and includes key performance indicators for 2023. The Corporation has reduced direct GHG emissions by 33% through 2023 compared to 2019 levels, marking significant progress towards its interim targets to reduce GHG emissions 50% by 2030 and 75% by 2035, as well as its 2050 net-zero direct GHG emissions target. Also in 2023, GHG intensity factors related to energy delivered to customers and electricity generated reached the lowest levels in the last five years.

The Corporation released its 2024 Climate Report in March 2024, building on the 2022 TCFD and Climate Assessment and further detailing our understanding of climate-related impacts across the Fortis group of companies. The report provides climate scenario analysis using low and high emissions scenarios over three time horizons, outlines physical risks and opportunities for priority assets using nine climate hazards, and assesses transition risks and opportunities using a framework based on enterprise risk management principles. The report further details mitigation and resiliency activities across Fortis utilities, and provides enhanced disclosures on climate governance.

As we transition to a cleaner energy future, customer affordability, safety and reliability remain top priorities and are the cornerstones of our sustainability strategy. Fortis utilities continue to focus on controlling costs, identifying efficiencies and implementing innovative practices to maintain affordability.

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FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Sustainability and Climate-Related Disclosures
In March 2024, the CSSB issued the exposure drafts, CSDS S1, General Requirements for Disclosure of Sustainability-Related Financial Information, and CSDS S2, Climate-Related Disclosures, which outline proposed disclosure requirements requiring an entity to disclose information about its sustainability-related and climate-related risks and opportunities, including the disclosure of material Scope 1, 2 and 3 GHG emissions. The CSSB continues to deliberate the proposed standards, which must be adopted by the Canadian Securities Administrators to become mandatory for Canadian reporting issuers. The content and timing of the final disclosure requirements are unknown.

In March 2024, the SEC released Rule No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, which outlines climate-related disclosure requirements. The rule requires disclosure of the financial effects of severe weather events and other natural conditions, as well as other climate-related financial information, in the notes to the financial statements. In addition, the rule requires disclosure of risk management, governance and oversight activities, the impact of material climate-related risks on a company's strategy, business model and outlook, and details of material climate-related targets or goals. Disclosure of material Scope 1 and 2 GHG emissions is also required for certain filers. The SEC subsequently voluntarily stayed the rule pending completion of judicial review by the Court of Appeals for the Eighth Circuit. While such rules do not apply to Fortis, as a foreign private issuer filing in the U.S. using Form 40-F, management is reviewing the standard, in conjunction with the proposals in Canada, to assess the potential impact on the Corporation's disclosures.


REGULATORY MATTERS

ITC
MISO Base ROE: In 2022, the D.C. Circuit Court issued a decision vacating certain FERC orders that had established the methodology for setting the base ROE for transmission owners operating in the MISO region, including ITC. This matter dates back to complaints filed at FERC in 2013 and 2015 challenging the MISO base ROE then in effect. The court has remanded the matter to FERC for further process, the timing and outcome of which remain unknown.

Transmission Incentives: In 2021, FERC issued a supplemental NOPR on transmission incentives modifying the proposal in the initial NOPR released by FERC in 2020. The supplemental NOPR proposes to eliminate the 50-basis point RTO ROE incentive adder for RTO members that have been members for longer than three years. The timing and outcome of this proceeding remain unknown.

Although any potential impact to Fortis is uncertain, every 10-basis point change in ROE at ITC impacts Fortis' annual EPS by approximately $0.01.

Transmission ROFR: In December 2023, the Iowa District Court ruled that the manner in which Iowa's ROFR statute was passed is unconstitutional. The statute granted incumbent electric transmission owners, including ITC, a ROFR to construct, own and maintain certain electric transmission assets in the state. The District Court did not make any determination on the merits of the ROFR itself, but did issue a permanent injunction preventing ITC and others from taking further action to construct the MISO LRTP tranche 1 Iowa projects in reliance on the ROFR.

In July 2024, a judge on the Iowa Supreme Court granted a motion filed by ITC requesting a stay of the injunction issued by the District Court. With the stay of the injunction in place, ITC is permitted to advance construction of all Iowa tranche 1 projects originally awarded to the company. Certain complainants have requested that the judge's order be reviewed by a full quorum of the Iowa Supreme Court.

MISO's decision with respect to the assignment of the tranche 1 LRTP projects was finalized on July 25, 2022. MISO is the only entity charged with determining what projects are to be competitively bid pursuant to its tariff. Regardless of any quorum review by the Iowa Supreme Court, approximately 70% of the Iowa tranche 1 projects are upgrades to ITC facilities along existing rights-of-way, which under MISO's tariff grants ITC the option to construct the upgrades. In addition, MISO is conducting a variance analysis for the first tranche of MISO’s LRTP projects in Iowa, and we believe the process should reaffirm the initial award of the projects.

Approximately US$900 million of capital expenditures associated with the first tranche of MISO's LRTP in Iowa is reflected in the 2024-2028 Capital Plan. Until there is more certainty around the resolution of these matters, we cannot predict the impact on the timing of capital expenditures related to the LRTP tranche 1 Iowa projects.

Central Hudson
2024 General Rate Application: In July 2024, the PSC approved a one-year rate plan for Central Hudson with retroactive application to July 1, 2024, including an allowed ROE of 9.5%, an increase from the previous allowed ROE of 9.0%. The decision also concluded that there will be no change in the common equity component of capital structure of 48%.

CIS Implementation: In June 2024, the PSC issued an order that concluded the investigation concerning Central Hudson's billing system implementation. The PSC also released the final report issued by an independent third-party which determined that the CIS is stable and the critical issues have been resolved. As part of the order, total costs of US$63 million were agreed to not be recovered from customers, of which the majority were recognized prior to 2024. The remaining costs to be recognized associated with the order, including Central Hudson's US$4 million contribution to a customer benefit fund recorded in the second quarter of 2024, are not expected to be material.


10
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
FortisBC Energy and FortisBC Electric
2025-2027 Rate Framework: In April 2024, FortisBC filed an application with the BCUC requesting approval of a rate framework for the period 2025 through 2027. The rate framework builds upon the current multi-year rate plan and includes, amongst other items, a revised level of operation and maintenance expense per customer indexed for inflation less a fixed productivity adjustment factor, a similar approach to growth capital, a forecast approach to sustaining and other capital, continued collection of an innovation fund recognizing the need to accelerate investment in clean energy innovation, and the continued sharing with customers of variances from the allowed ROE. The rate framework also proposes the continuation of deferral mechanisms currently in place. The regulatory process will continue throughout 2024, with a decision expected in mid-2025.

FortisAlberta
GCOC Decision: In October 2023, the AUC issued a decision on the 2024 GCOC proceeding. In November 2023, FortisAlberta sought permission to appeal the GCOC decision to the Court of Appeal on the basis that the AUC erred in its decision to not adjust FortisAlberta's ROE and common equity component of capital structure to address incremental business risk associated with competition from REAs located in FortisAlberta's service area, as well as heightened regulatory risk due to the non-recovery of costs attributable to REAs. In April 2024, the Court of Appeal granted FortisAlberta permission to appeal, which is expected to be complete in the first quarter of 2025.

Third PBR Term Decision: In October 2023, the AUC issued a decision establishing the parameters for the third PBR term for the period of 2024 through 2028. In November 2023, FortisAlberta sought permission to appeal the decision to the Court of Appeal on the basis that the AUC erred in its decision to determine capital funding using 2018-2022 historical capital investments without consideration for funding of new capital programs included in the company's 2023 COS revenue requirement as approved by the AUC. The timing and outcome of a decision on the request for appeal is unknown.


FINANCIAL POSITION

Significant Changes between June 30, 2024 and December 31, 2023
Balance Sheet AccountIncrease (Decrease)
($ millions)FXOtherExplanation
Regulatory assets (current and long-term)46 112 Due to the normal operation of various regulatory mechanisms including: (i) an increase in deferred income taxes, and (ii) the deferral of incremental storm restoration costs at Central Hudson.
Property, plant and equipment, net926 1,325 Due to capital expenditures, partially offset by depreciation.
Accounts payable and other current liabilities45 (641)Due to the timing of the declaration of common share dividends, as well as lower amounts owing for energy supply costs at FortisBC Energy and transmission costs at FortisAlberta.
Deferred income taxes91 167 Due to higher temporary differences associated with ongoing capital investments.
Long-term debt (including current portion)633 1,137 Reflects debt issuances, partially offset by debt repayments, as well as higher borrowings under committed credit facilities, in support of the Corporation's Capital Plan.
Shareholders' equity511 733 
Due primarily to: (i) Common Equity Earnings for the six months ended June 30, 2024, less dividends declared on common shares; and (ii) the issuance of common shares, largely under the DRIP.


LIQUIDITY AND CAPITAL RESOURCES

Cash Flow Requirements
At the subsidiary level, it is expected that operating expenses and interest costs will be paid from Operating Cash Flow, with varying levels of residual cash flow available for capital expenditures and/or dividend payments to Fortis. Remaining capital expenditures are expected to be financed primarily from borrowings under credit facilities, long-term debt offerings and equity injections from Fortis. Borrowings under credit facilities may be required periodically to support seasonal working capital requirements.


11
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Cash required of Fortis to support subsidiary growth is generally derived from borrowings under the Corporation's credit facilities, the operation of the DRIP, as well as issuances of long-term debt, preference equity, and common shares including those issued through the ATM Program. The subsidiaries pay dividends to Fortis and receive equity injections from Fortis when required. Both Fortis and its subsidiaries initially borrow through their committed credit facilities and periodically replace these borrowings with long-term financing. Financing needs also arise to refinance maturing debt.

Credit facilities are syndicated primarily with large banks in Canada and the U.S., with no one bank holding more than approximately 20% of the Corporation's total revolving credit facilities. Approximately $6.0 billion of the total credit facilities are committed with maturities ranging from 2024 through 2029. Available credit facilities are summarized in the following table.

Credit Facilities
As atRegulated
Utilities		Corporate
and Other		June 30,
2024		December 31,
2023
($ millions)
Total credit facilities (1)
4,234 2,260 6,494 6,176 
Credit facilities utilized:
Short-term borrowings(68)— (68)(119)
Long-term debt (including current portion)(1,192)(814)(2,006)(1,572)
Letters of credit outstanding(55)(21)(76)(101)
Credit facilities unutilized2,919 1,425 4,344 4,384 
(1)    See Note 14 in the 2023 Annual Financial Statements for a description of the credit facilities as at December 31, 2023.

In April 2024, FortisBC Energy increased its operating credit facility from $700 million to $900 million and extended the maturity to July 2028. In May 2024, FortisBC Electric increased its operating credit facility from $150 million to $200 million and extended the maturity to April 2028.

In May 2024, the Corporation extended the maturity on its unsecured US$500 million non-revolving term credit facility to May 2025. The facility is repayable at any time without penalty. In June 2024, the Corporation amended its $1.3 billion revolving term committed credit facility to extend the maturity to July 2029.

The Corporation's ability to service debt and pay dividends is dependent on the financial results of, and the related cash payments from, its subsidiaries. Certain regulated subsidiaries are subject to restrictions that limit their ability to distribute cash to Fortis, including restrictions by certain regulators limiting annual dividends and restrictions by certain lenders limiting debt to total capitalization. There are also practical limitations on using the net assets of the regulated subsidiaries to pay dividends, based on management's intent to maintain the subsidiaries' regulator-approved capital structures. Fortis does not expect that maintaining such capital structures will impact its ability to pay dividends in the foreseeable future.

As at June 30, 2024, consolidated fixed-term debt maturities/repayments are expected to average $1,555 million annually over the next five years and approximately 74% of the Corporation's consolidated long-term debt, excluding credit facility borrowings, had maturities beyond five years.

In November 2022, Fortis filed a short-form base shelf prospectus with a 25-month life under which it may issue common or preference shares, subscription receipts, or debt securities in an aggregate principal amount of up to $2.0 billion. In September 2023, Fortis established an ATM Program pursuant to the short-form base shelf prospectus, that allows the Corporation to issue up to $500 million of common shares from treasury to the public from time to time, at the Corporation's discretion, effective until December 22, 2024. As at June 30, 2024, $500 million remained available under the ATM Program and $1.5 billion remained available under the short-form base shelf prospectus.

Fortis is well positioned with strong liquidity. This combination of available credit facilities and manageable annual debt maturities/repayments provides flexibility in the timing of access to capital markets. Given current credit ratings and capital structures, the Corporation and its subsidiaries currently expect to continue to have reasonable access to long-term capital.

Fortis and its subsidiaries were in compliance with debt covenants as at June 30, 2024 and are expected to remain compliant in 2024.

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FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Cash Flow Summary
Summary of Cash Flows
Periods ended June 30QuarterYear-to-Date
($ millions)2024 2023 Variance2024 2023 Variance
Cash and cash equivalents, beginning of period569 576 (7)625 209 416 
Cash from (used in):
Operating activities814 944 (130)1,582 1,859 (277)
Investing activities(1,147)(1,013)(134)(2,286)(1,954)(332)
Financing activities319 209 110 623 597 26 
Effect of exchange rate changes on cash and cash equivalents6 (7)13 17 (2)19 
Change in cash associated with assets held for sale— (19)19 — (19)19 
Cash and cash equivalents, end of period561 690 (129)561 690 (129)
Operating Activities
See "Performance at a Glance - Operating Cash Flow" on page 4.

Investing Activities
The increase in cash used in investing activities reflects higher capital expenditures. The Corporation's Capital Plan for 2024 is estimated to be $4.8 billion, an increase of approximately 10% from $4.3 billion in 2023. See "Capital Plan" on page 15.

Financing Activities
Cash flows related to financing activities will fluctuate largely as a result of changes in the subsidiaries' capital expenditures and the amount of Operating Cash Flow available to fund those capital expenditures, which together impact the amount of funding required from debt and common equity issuances. See "Cash Flow Requirements" on page 11.

Debt Financing
Significant Long-Term Debt Issuances
Year-to-date June 30, 2024MonthInterest RateUse of Proceeds

($ millions, except as noted)
Issued
(%)
MaturityAmount
ITC
Secured senior notesJanuary5.98 2034     US85 
(1) (2) (3)
First mortgage bondsJanuary5.11 2029     US75 
(1) (2) (3)
First mortgage bondsJanuary5.38 2034     US75 
(1) (2) (3)
Unsecured senior notesMay5.65 2034     US400 
(3) (4)
Central Hudson
Senior notesApril5.59 2031     US25 
(1) (3)
Senior notesApril5.69 2034     US35 
(1) (3)
FortisAlberta
Unsecured debenturesMay4.90 2054300 
(1) (2) (3) (4)
Caribbean Utilities
Unsecured senior notesMay6.17 2039     US40 
(1) (2) (3) (5)
Unsecured senior notesMay6.37 2049     US40 
(1) (2) (3) (5)
UNS Energy
Unsecured senior notesJune5.60 2036     US30 
(1) (3)
(1)    Repay short-term and/or credit facility borrowings
(2)    Fund capital expenditures
(3)    General corporate purposes
(4)     Repay maturing long-term debt
(5)     Total of US$50 million expected to be used to fund or refinance a portfolio of new and/or existing qualifying green initiatives

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FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Common Equity Financing
Common Equity Issuances and Dividends Paid
Periods ended June 30QuarterYear-to-Date
($ millions, except as indicated)2024 2023 Variance2024 2023 Variance
Common shares issued:
Cash (1)
8 14 (6)21 28 (7)
Non-cash (2)
106 102 4 217 205 12 
Total common shares issued114 116 (2)238 233 5 
Number of common shares issued (# millions)
2.2 2.0 0.2 4.6 4.2 0.4 
Common share dividends paid:
Cash(184)(172)(12)(363)(342)(21)
Non-cash (3)
(107)(102)(5)(218)(205)(13)
Total common share dividends paid(291)(274)(17)(581)(547)(34)
Dividends paid per common share ($)
0.59 0.565 0.025 1.181.13 0.05 
(1)    Includes common shares issued under stock option and employee share purchase plans
(2)    Common shares issued under the DRIP and stock option plan
(3)    Common share dividends reinvested under the DRIP

On February 8, 2024, Fortis declared a dividend of $0.59 per common share which was paid on June 1, 2024 and on July 30, 2024, Fortis declared a dividend of $0.59 per common share payable on September 1, 2024. The payment of dividends is at the discretion of the Board and depends on the Corporation's financial condition and other factors.

On March 1, 2024, the annual fixed dividend per share for the First Preference Shares, Series K was reset from $0.9823 to $1.3673 for the five-year period up to but excluding March 1, 2029.

Contractual Obligations
There were no material changes to the contractual obligations disclosed in the 2023 Annual MD&A, except issuances of long-term debt and credit facility utilization (see "Cash Flow Summary" on page 13).

Off-Balance Sheet Arrangements
There were no material changes to off-balance sheet arrangements from those disclosed in the 2023 Annual MD&A.

Capital Structure and Credit Ratings
Fortis requires ongoing access to capital and, therefore, targets a consolidated long-term capital structure that will enable it to maintain investment-grade credit ratings. The regulated utilities maintain their own capital structures in line with those reflected in customer rates.

Consolidated Capital StructureJune 30, 2024December 31, 2023
As at($ millions)(%)($ millions)(%)
Debt (1)
31,146 55.8 29,364 55.7 
Preference shares1,623 2.9 1,623 3.1 
Common shareholders' equity and non-controlling interests (2)
23,034 41.3 21,709 41.2 
55,803 100.0 52,696 100.0 
(1)    Includes long-term debt and finance leases, including current portion, and short-term borrowings, net of cash
(2)    Includes shareholders' equity, excluding preference shares, and non-controlling interests. Non-controlling interests represented 3.4% as at June 30, 2024 (December 31, 2023 - 3.5%)

Outstanding Share Data
As at July 30, 2024, the Corporation had issued and outstanding 495.2 million common shares and the following First Preference Shares: 5.0 million Series F; 9.2 million Series G; 7.7 million Series H; 2.3 million Series I; 8.0 million Series J; 10.0 million Series K; and 24.0 million Series M.

The common shares of the Corporation have voting rights. The Corporation's first preference shares do not have voting rights unless and until Fortis fails to pay eight quarterly dividends, whether or not consecutive or declared.

If all outstanding stock options were converted as at July 30, 2024, an additional 1.8 million common shares would be issued and outstanding.
14
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Credit Ratings
The Corporation's credit ratings shown below reflect its low business risk profile, diversity of operations, the stand-alone nature and financial separation of each regulated subsidiary, and the level of holding company debt.

As at June 30, 2024RatingTypeOutlook
S&PA-IssuerNegative
BBB+Unsecured debt
Morningstar DBRSA (low)IssuerStable
A (low)Unsecured debtStable
Moody'sBaa3IssuerStable
Baa3Unsecured debt

In February 2024, Moody's confirmed the Corporation's Baa3 issuer and senior unsecured debt credit ratings and stable outlook.

In February 2024, Fitch revised Central Hudson's senior unsecured debt rating from A- to BBB+ and changed the outlook from negative to stable. Fitch indicated the rating reflects its view of limited visibility associated with Central Hudson's 2024 general rate application, as well as the company's pressured credit metrics and elevated accounts receivable balance.

In May 2024, Morningstar DBRS confirmed the Corporation's A (low) issuer and senior unsecured debt credit ratings and stable outlook.

Capital Plan
Year-to-date Capital Expenditures of $2.3 billion are consistent with expectations and the Corporation's annual $4.8 billion Capital Plan is on track.

Capital Expenditures (1)
Year-to-date June 30, 2024Regulated Utilities
UNS EnergyCentral HudsonFortisBC EnergyFortis AlbertaFortisBC ElectricOther ElectricTotal Regulated UtilitiesNon-Regulated Corporate and Other
($ millions, except as indicated)ITC
Total (1)
Total666 423 187 423 263 60 230 2,252 2 2,254 
(1)    See "Non-U.S. GAAP Financial Measures" on page 9
Five-Year Capital Plan
The 2024-2028 Capital Plan is targeted at $25 billion, reflecting an average of $5 billion of Capital Expenditures annually. Fortis expects to invest approximately $7 billion in Cleaner Energy over the five-year period, largely related to connecting renewables to the grid, renewable and storage investments in Arizona and the Caribbean, and cleaner natural gas solutions in British Columbia. The Capital Plan is low risk and highly executable, with nearly 100% of planned expenditures to occur at the regulated utilities and approximately 20% of investments relating to Major Capital Projects. Geographically, 58% of planned expenditures are expected in the U.S., including 29% at ITC, with 38% in Canada and the remaining 4% in the Caribbean.

Planned Capital Expenditures are based on detailed forecasts of energy demand as well as labour and material costs, including inflation, supply chain availability, general economic conditions, foreign exchange rates and other factors. These could change and cause actual expenditures to differ from forecast.

Major Capital Projects Update
Wataynikaneyap Transmission Power Project
During the second quarter of 2024, construction of the 1,800-kilometre Wataynikaneyap Power Transmission project required to energize the First Nation communities was completed. The project is majority-owned by 24 First Nations, with Fortis having a 39% ownership interest.

Okanagan Capacity Upgrade Project
In July 2024, FortisBC Energy filed an update with the BCUC outlining mitigation solutions for capacity shortfalls in the Okanagan region due to expected gas load growth. As part of the update, a change in scope of the project was proposed, with a revised capital expenditure request of approximately $40 million. The regulatory process with respect to the revised Okanagan Capacity Upgrade project will continue throughout 2024.

Additional Investment Opportunities
ITC - MISO LRTP
In June 2024, MISO released a near-final map of the LRTP projects that it has now identified as tranche 2.1, with transmission investments in the MISO Midwest subregion estimated in the range of US$23 billion to US$27 billion. MISO Board approval of the portfolio is expected in the fourth quarter of 2024. The potential capital investment at ITC for tranche 2.1 projects is unknown at this time.
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FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
FortisBC Energy - LNG
During 2024, provincial and federal environmental assessment certificates were issued for the Tilbury Marine Jetty project. The construction of the jetty supports further expansion of FortisBC's Tilbury LNG facility, which is uniquely positioned to meet customer demand for LNG. The site is scalable, can accommodate additional storage and liquefaction equipment and is close to international shipping lanes. Once constructed, the jetty would utilize FortisBC Energy's assets at the Tilbury site, including the Tilbury Phase 1B Expansion Project yet to be constructed, to service marine bunkering.


BUSINESS RISKS

The Corporation's business risks remain substantially unchanged from those disclosed in its 2023 Annual MD&A. See "Regulatory Matters" on page 10 and "Outlook" on page 18 for applicable updates.


ACCOUNTING MATTERS

Accounting Policies
The Interim Financial Statements have been prepared following the same accounting policies and methods as those used to prepare the 2023 Annual Financial Statements.

Future Accounting Pronouncements
Segment Reporting: ASU No. 2023-07, Improvements to Reportable Segment Disclosures, is effective for Fortis' December 31, 2024 annual financial statements, and for interim periods beginning in 2025, on a retrospective basis. The ASU requires disclosure of incremental segment information, including significant segment expenses and other items that are included in segment profit or loss. Fortis is continuing to assess the impact on its
disclosures.

Income Taxes: ASU No. 2023-09, Improvements to Income Tax Disclosures, is effective for Fortis on January 1, 2025 on a prospective basis, with retrospective application and early adoption permitted. The ASU requires additional disclosure of income tax information by jurisdiction to reflect an entity's exposure to potential changes in tax legislation, and associated risks and opportunities. This ASU is not expected to materially impact Fortis' disclosures.

Income Tax
In June 2024, the Government of Canada enacted legislation with respect to interest deductibility limitations and global minimum tax, both of which are applicable to Fortis as of January 1, 2024. The Corporation does not expect these tax changes to have a material impact on its financial results, Operating Cash Flow or credit ratings.

Critical Accounting Estimates
The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates.

There were no material changes to the nature of the Corporation's critical accounting estimates or contingencies from those disclosed in the 2023 Annual MD&A.


FINANCIAL INSTRUMENTS

Long-Term Debt and Other
As at June 30, 2024, the carrying value of long-term debt, including the current portion, was $31.5 billion (December 31, 2023 - $29.7 billion) compared to an estimated fair value of $28.9 billion (December 31, 2023 - $27.9 billion).

The consolidated carrying value of the remaining financial instruments, other than derivatives, approximates fair value, reflecting their short-term maturity, normal trade credit terms and/or nature.

Derivatives
Derivatives are recorded at fair value with certain exceptions, including those derivatives that qualify for the normal purchase and normal sale exception.

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FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
There were no material changes with respect to the nature and purpose, methodologies for fair value determination, and portfolio of the Corporation's derivatives from those disclosed in the 2023 Annual MD&A, except for interest rate locks utilized at ITC as disclosed in Note 14 of the Interim Financial Statements.


SUMMARY OF QUARTERLY RESULTS
Common Equity
RevenueEarningsBasic EPSDiluted EPS
Quarter ended($ millions)($ millions)($)($)
June 30, 20242,670 331 0.67 0.67 
March 31, 20243,118 459 0.93 0.93 
December 31, 20232,885 381 0.78 0.78 
September 30, 20232,719 394 0.81 0.81 
June 30, 20232,594 294 0.61 0.61 
March 31, 20233,319 437 0.90 0.90 
December 31, 20223,168 370 0.77 0.77 
September 30, 20222,553 326 0.68 0.68 

Generally, within each calendar year, quarterly results fluctuate in accordance with seasonality. Given the diversified nature of the Corporation's subsidiaries, seasonality varies. Most of the annual earnings of the gas utilities are realized in the first and fourth quarters due to space-heating requirements. Earnings for the electric distribution utilities in the U.S. are generally highest in the second and third quarters due to the use of air conditioning and other cooling equipment.

Generally, from one calendar year to the next, quarterly results reflect: (i) continued organic growth driven by the Corporation's Capital Plan; (ii) any significant temperature fluctuations from seasonal norms; (iii) the impact of market conditions, particularly with respect to long-term wholesale sales at UNS Energy; (iv) the timing and significance of any regulatory decisions; (v) changes in the U.S.-to-Canadian dollar exchange rate; (vi) for revenue, the flow through in customer rates of commodity costs; and (vii) for EPS, increases in the weighted average number of common shares outstanding.

June 2024/June 2023
See "Performance at a Glance" on page 2.

March 2024/March 2023
Common Equity Earnings increased by $22 million and basic EPS increased by $0.03 in comparison to the first quarter of 2023. The increase was due to the timing of recognition of new cost of capital parameters approved for FortisBC in 2023 and Rate Base growth across our utilities. The increase was partially offset by higher holding company costs, including finance charges and unrealized losses on derivative contracts, and the November 1, 2023 disposition of Aitken Creek. In addition, the change in EPS reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's DRIP.

December 2023/December 2022
Common Equity Earnings increased by $11 million and basic EPS increased by $0.01 in comparison to the fourth quarter of 2022. The increase was driven by: (i) Rate Base growth; (ii) higher retail revenue in Arizona, due to new customer rates at TEP; and (iii) the new cost of capital parameters approved for FortisBC effective January 1, 2023. The increase was partially offset by lower earnings at Aitken Creek, due to the November 1, 2023 disposition, as well as the recognition of mark-to-market accounting gains on natural gas derivatives and margins on gas sold in the fourth quarter of 2022. The change in basic EPS also reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's DRIP.

September 2023/September 2022
Common Equity Earnings increased by $68 million and basic EPS increased by $0.13 in comparison to the third quarter of 2022. The increase was primarily due to the new cost of capital parameters approved for FortisBC in September 2023, which resulted in $38 million of earnings in the quarter, including $26 million associated with the retroactive impact to January 1, 2023. The increase in earnings was also driven by higher retail revenue in Arizona, due to warmer weather and new customer rates at TEP effective September 1, 2023, as well as Rate Base growth across our utilities. A higher U.S.-to-Canadian dollar exchange rate and higher earnings at Aitken Creek, reflecting market conditions, also favourably impacted earnings. Earnings were tempered by: (i) lower long-term wholesale and transmission revenue, as well as higher operating costs and income tax expense at UNS Energy; (ii) higher corporate finance costs; and (iii) higher operating expenses at Central Hudson and FortisAlberta, as expected, due to the timing of costs in the first half of the year. The change in basic EPS also reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's DRIP.

17
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
RELATED-PARTY AND INTER-COMPANY TRANSACTIONS

Related-party transactions are in the normal course of operations and are measured at the amount of consideration agreed to by the related parties. There were no material related-party transactions for the three and six months ended June 30, 2024 and 2023.

Fortis periodically provides short-term financing to subsidiaries to support capital expenditures and seasonal working capital requirements, the impacts of which are eliminated on consolidation. As at June 30, 2024 and December 31, 2023, there were no material inter-segment loans outstanding. Interest charged on inter-segment loans was not material for the three and six months ended June 30, 2024 and 2023.


OUTLOOK

Fortis continues to enhance shareholder value through the execution of its Capital Plan, the balance and strength of its diversified portfolio of regulated utility businesses, and growth opportunities within and proximate to its service territories. The Corporation's $25 billion five-year Capital Plan is expected to increase midyear Rate Base from $37.0 billion in 2023 to $49.4 billion by 2028, translating into a five-year CAGR of 6.3%.

Beyond the five-year Capital Plan, additional opportunities to expand and extend growth include: continued electrification and load growth; climate adaptation and grid resiliency investments; further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy, including infrastructure investments associated with the IRA and the MISO LRTP; and RNG solutions and LNG infrastructure in British Columbia.

Fortis expects its long-term growth in Rate Base will drive earnings that support dividend growth guidance of 4-6% annually through 2028, and is premised on the assumptions and material factors listed under "Forward-Looking Information".


FORWARD-LOOKING INFORMATION

Fortis includes forward-looking information in the MD&A 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, 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: the expected impact of the disposition of Aitken Creek on earnings for the annual period; targeted annual dividend growth through 2028; the 2030 and 2035 direct GHG emissions reduction targets; the 2050 net-zero direct GHG emissions target; the expected timing, outcome and impact of legal and regulatory proceedings and decisions; the expected funding sources for operating expenses, interest costs and capital expenditures; the expectation that maintaining the capital structures of the regulated operating subsidiaries will not have an impact on the Corporation's ability to pay dividends in the foreseeable future; the expected consolidated fixed-term debt maturities and repayments over the next five years; the expectation that the Corporation and its subsidiaries will continue to have access to long-term capital and will remain compliant with debt covenants in 2024; forecast capital expenditures for 2024 and 2024 through 2028, including Cleaner Energy Investments; the nature, timing, benefits and expected costs of certain capital projects including ITC's transmission projects associated with the MISO LRTP, as well as FortisBC's Tilbury LNG Storage Expansion and Tilbury 1B projects, and additional opportunities beyond the Capital Plan, including continued electrification and load growth, climate adaptation and grid resiliency investments, further expansion of the electric transmission grid in the U.S. to facilitate the interconnection of cleaner energy, including infrastructure investments associated with the IRA and the MISO LRTP, and RNG solutions and LNG infrastructure in British Columbia; the potential impact on the Corporation's disclosures of future accounting pronouncements; the expectation that changes to Canadian tax legislation with respect to interest deductibility limitations and global minimum tax will not have a material impact on financial results, Operating Cash Flow or credit ratings; forecast Rate Base and Rate Base growth through 2028; and the expectation that long-term growth in Rate Base will drive earnings that support dividend growth guidance of 4-6% annually through 2028.

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: reasonable outcomes for legal and regulatory proceedings and the expectation of regulatory stability; the successful execution of the Capital Plan; no material capital project or financing cost overrun; sufficient human resources to deliver service and execute the Capital Plan; the realization of additional opportunities beyond the Capital Plan; no significant variability in interest rates; the Board exercising its discretion to declare dividends, taking into account the financial performance and condition of the Corporation; no significant operational disruptions or environmental liability or upset; the continued ability to maintain the performance of the electricity and gas systems; no severe and prolonged economic downturn; sufficient liquidity and capital resources; the ability to hedge exposures to fluctuations in foreign exchange rates, natural gas prices and electricity prices; the continued availability of natural gas, fuel, coal and electricity supply; continuation of power supply and capacity purchase contracts; no significant changes in government energy plans, environmental laws and regulations that could have a material negative impact; maintenance of adequate insurance coverage; the ability to obtain and maintain licences and permits; retention of existing service areas; no significant changes in tax laws and the continued tax deferred treatment of earnings from the Corporation's foreign operations; continued maintenance of information technology infrastructure and no material breach of cybersecurity; continued favourable relations with Indigenous Peoples; and favourable labour relations.

Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from those discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. Risk factors which could cause results or events to differ from current expectations are detailed under the heading "Business Risks" in the 2023 Annual MD&A and in other continuous disclosure materials filed from time to time with Canadian securities regulatory authorities and the Securities and Exchange Commission. Key risk factors for 2024 include, but are not limited to: uncertainty regarding changes in utility regulation, including the outcome of regulatory proceedings at the Corporation's utilities; the physical risks associated with the provision of electric and gas service, which are exacerbated by the impacts of climate change; risks related to environmental laws and regulations; risks associated with capital projects and the impact on the Corporation's continued growth; risks associated with cybersecurity and information and operations technology; the impact of weather variability and seasonality on heating and cooling loads, gas distribution volumes and hydroelectric generation; risks associated with commodity price volatility and supply of purchased power; and risks related to general economic conditions, including inflation, interest rate and foreign exchange risks.

All forward-looking information herein is given as of July 30, 2024. 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.

18
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
GLOSSARY

2023 Annual Financial Statements: the Corporation's audited consolidated financial statements and notes thereto for the year ended December 31, 2023

2023 Annual MD&A: the Corporation's management discussion and analysis for the year ended December 31, 2023

Adjusted Basic EPS: Adjusted Common Equity Earnings divided by the basic weighted average number of common shares outstanding

Adjusted Common Equity Earnings: net earnings attributable to common equity shareholders adjusted as shown under "Non-U.S. GAAP Financial Measures" on page 9

Aitken Creek: Aitken Creek Gas Storage ULC, a 93.8%-owned subsidiary of FortisBC Holdings Inc., sold on November 1, 2023

ASU: accounting standards update

ATM Program: at-the-market equity program

AUC: Alberta Utilities Commission

BCUC: British Columbia Utilities Commission

Belize Electricity: Belize Electricity Limited, in which Fortis indirectly holds a 33% equity interest

Board: Board of Directors of the Corporation

CAGR(s): compound annual growth rate of a particular item. CAGR = (EV/BV)(1/n)-1, where: (i) EV is the ending value of the item; (ii) BV is the beginning value of the item; and (iii) n is the number of periods. Calculated on a constant U.S. dollar-to-Canadian dollar exchange rate

Capital Expenditures: cash outlay for additions to property, plant and equipment and intangible assets as shown in the Interim Financial Statements, as well as Fortis' 39% share of capital spending for the Wataynikaneyap Transmission Power project. See "Non-U.S. GAAP Financial Measures" on page 9

Capital Plan: forecast Capital Expenditures. Represents a non-U.S. GAAP financial measure calculated in the same manner as Capital Expenditures

Caribbean Utilities: Caribbean Utilities Company, Ltd., an indirect approximately 60%-owned (as at December 31, 2023) subsidiary of Fortis, together with its subsidiary

Central Hudson: CH Energy Group Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries, including Central Hudson Gas & Electric Corporation

CIS: customer information system

Cleaner Energy Investments: capital expenditures that support reductions in air emissions, water usage and/or increases customer energy efficiency

Common Equity Earnings: net earnings attributable to common equity shareholders

Corporation: Fortis Inc.

COS: cost of service

Court of Appeal: Court of Appeal of Alberta


CSDS: Canadian Sustainability Disclosure Standard

CSSB: Canadian Sustainability Standards Board

D.C. Circuit Court: U.S. Court of Appeals for the District of Columbia Circuit

DRIP: dividend reinvestment plan

EPS: earnings per common share

FERC: Federal Energy Regulatory Commission

Fitch: Fitch Ratings Inc.

Fortis: Fortis Inc.

FortisAlberta: FortisAlberta Inc., an indirect wholly owned subsidiary of Fortis

FortisBC: FortisBC Energy and FortisBC Electric

FortisBC Electric: FortisBC Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries

FortisBC Energy: FortisBC Energy Inc., an indirect wholly owned subsidiary of Fortis, together with its subsidiaries

FortisOntario: FortisOntario Inc., a direct wholly owned subsidiary of Fortis, together with its subsidiaries

FortisTCI: FortisTCI Limited, an indirect wholly owned subsidiary of Fortis, together with its subsidiary

Fortis Belize: Fortis Belize Limited, an indirect wholly owned subsidiary of Fortis

FX: foreign exchange associated with the translation of U.S. dollar-denominated amounts. Foreign exchange is calculated by applying the change in the U.S. dollar-to-Canadian dollar FX rates to the prior period U.S. dollar balance

GCOC: generic cost of capital

GHG: greenhouse gas

GWh: gigawatt hour(s)

Interim Financial Statements: the Corporation's unaudited condensed consolidated interim financial statements and notes thereto for the three and six months ended June 30, 2024

Interim MD&A: the Corporation's management discussion and analysis for the three and six months ended June 30, 2024

IRA: Inflation Reduction Act of 2022

ITC: ITC Investment Holdings Inc., an indirect 80.1%-owned subsidiary of Fortis, together with its subsidiaries, including International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC, and ITC Great Plains, LLC

LNG: liquefied natural gas

LRTP: long-range transmission plan

19
FORTIS INC.JUNE 30, 2024 QUARTER REPORT


Interim Management Discussion and Analysis
Major Capital Projects: projects, other than ongoing maintenance projects, individually costing $200 million or more in the forecast/planning period

Maritime Electric: Maritime Electric Company, Limited, an indirect wholly owned subsidiary of Fortis

MISO: Midcontinent Independent System Operator, Inc.

Moody's: Moody's Investor Services, Inc.

Morningstar DBRS: DBRS Limited

Newfoundland Power: Newfoundland Power Inc., a direct wholly owned subsidiary of Fortis

Non-U.S. GAAP Financial Measures: financial measures that do not have a standardized meaning prescribed by U.S. GAAP

NOPR: notice of proposed rulemaking

NYSE: New York Stock Exchange

Operating Cash Flow: cash from operating activities

PBR: performance-based rate setting

PJ: petajoule(s)

PPFAC: Purchased Power and Fuel Adjustment Clause

PSC: New York State Public Service Commission

Rate Base: the stated value of property on which a regulated utility is permitted to earn a specified return in accordance with its regulatory construct

REA: Rural Electrification Association

RNG: renewable natural gas

ROE: rate of return on common equity

ROFR: right of first refusal

RTO: regional transmission organization

S&P: Standard & Poor's Financial Services LLC

SEC: U.S. Securities and Exchange Commission

SEDAR+: Canadian System for Electronic Document Analysis and Retrieval

TCFD: Task Force for Climate-Related Financial Disclosures

TEP: Tucson Electric Power Company, a direct wholly owned subsidiary of UNS Energy

TSR: total shareholder return, which is a measure of the return to common equity shareholders in the form of share price appreciation and dividends (assuming reinvestment) over a specified time period in relation to the share price at the beginning of the period

TSX: Toronto Stock Exchange

UNS Energy: UNS Energy Corporation, an indirect wholly owned subsidiary of Fortis, together with its subsidiaries, including TEP, UNS Electric, Inc. and UNS Gas, Inc.

U.S.: United States of America

U.S. GAAP: accounting principles generally accepted in the U.S.

Wataynikaneyap Power: Wataynikaneyap Power Limited Partnership, in which Fortis indirectly holds a 39% equity interest
20
FORTIS INC.JUNE 30, 2024 QUARTER REPORT
v3.24.2
Cover Page
 6 Months Ended
Jun. 30, 2024
Cover [Abstract]  
Document Type 6-K
Entity Registrant Name Fortis Inc.
Entity Address, Address Line Three Fortis Place
Entity Address, Address Line Two Suite 1100
Entity Address, Address Line One 5 Springdale Street
Entity Address, City or Town St. John's
Entity Address, State or Province NL
Entity Address, Country CA
Entity Address, Postal Zip Code A1E 0E4
Entity Central Index Key 0001666175
Current Fiscal Year End Date --12-31
Document Period End Date Jun. 30, 2024
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q2
Amendment Flag false
v3.24.2
Condensed Consolidated Interim Balance Sheets (Unaudited) - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 561 $ 625
Accounts receivable and other current assets (Note 5) 1,787 1,818
Prepaid expenses 193 150
Inventories 596 566
Regulatory assets (Note 6) 780 866
Total current assets 3,917 4,025
Other assets 1,364 1,298
Regulatory assets (Note 6) 3,762 3,518
Property, plant and equipment, net 45,636 43,385
Intangible assets, net 1,555 1,510
Goodwill 12,538 12,184
Total assets 68,772 65,920
Current liabilities    
Short-term borrowings (Note 7) 68 119
Accounts payable and other current liabilities 2,376 2,972
Regulatory liabilities (Note 6) 607 577
Current installments of long-term debt (Note 7) 2,630 2,296
Total current liabilities 5,681 5,964
Regulatory liabilities (Note 6) 3,466 3,381
Deferred income taxes 4,657 4,399
Long-term debt (Note 7) 28,671 27,235
Finance leases 338 339
Other liabilities 1,302 1,270
Total liabilities 44,115 42,588
Commitments and contingencies (Note 15)
Equity    
Common shares [1] 15,346 15,108
Preference shares 1,623 1,623
Additional paid-in capital 8 9
Accumulated other comprehensive income 1,161 653
Retained earnings 4,611 4,112
Shareholders' equity 22,749 21,505
Non-controlling interests 1,908 1,827
Total equity 24,657 23,332
Total liabilities and equity $ 68,772 $ 65,920
[1] No par value. Unlimited authorized shares. 495.2 million and 490.6 million issued and outstanding as at June 30, 2024 and December 31, 2023, respectively.
v3.24.2
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parenthetical) - shares
shares in Millions
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Common stock, shares issued (in shares) 495.2 490.6
Common stock, shares outstanding (in shares) 495.2 490.6
v3.24.2
Condensed Consolidated Interim Statements of Earnings (Unaudited) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Revenue $ 2,670 $ 2,594 $ 5,788 $ 5,913
Expenses        
Energy supply costs 713 787 1,722 2,099
Operating expenses 739 713 1,505 1,454
Depreciation and amortization 480 440 947 876
Total expenses 1,932 1,940 4,174 4,429
Operating income 738 654 1,614 1,484
Other income, net (Note 11) 65 64 138 133
Finance charges 347 323 683 638
Earnings before income tax expense 456 395 1,069 979
Income tax expense 69 49 170 149
Net earnings 387 346 899 830
Net earnings attributable to:        
Non-controlling interests 38 35 73 66
Preference equity shareholders (Note 8) 18 17 36 33
Net earnings attributable to common equity shareholders 331 294 790 731
Net earnings $ 387 $ 346 $ 899 $ 830
Earnings per common share (Note 12)        
Basic (CAD per share) $ 0.67 $ 0.61 $ 1.60 $ 1.51
Diluted (CAD per share) $ 0.67 $ 0.61 $ 1.60 $ 1.51
v3.24.2
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net earnings $ 387 $ 346 $ 899 $ 830
Other comprehensive income (loss)        
Unrealized foreign currency translation gains (losses) [1] 182 (339) 564 (383)
Other [2] (1) 5 3 3
Other comprehensive income (loss) 181 (334) 567 (380)
Comprehensive income 568 12 1,466 450
Comprehensive income attributable to:        
Non-controlling interests 56 (1) 132 25
Preference equity shareholders 18 17 36 33
Common equity shareholders 494 (4) 1,298 392
Comprehensive income $ 568 $ 12 $ 1,466 $ 450
[1] Net of hedging activities and income tax recovery of $2 million and $8 million for the three and six months ended June 30, 2024, respectively (three and six months ended June 30, 2023 - income tax expense of $6 million)
[2] Net of income tax expense of $nil for the three and six months ended June 30, 2024 (three and six months ended June 30, 2023 - income tax expense of $2 million)
v3.24.2
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) (Parenthetical) - CAD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Unrealized foreign currency translation, tax expense (recovery) $ (2,000,000) $ 6,000,000 $ (8,000,000) $ 6,000,000
Other, tax expense $ 0 $ 2,000,000 $ 0 $ 2,000,000
v3.24.2
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Operating activities        
Net earnings $ 387 $ 346 $ 899 $ 830
Adjustments to reconcile net earnings to net cash provided by operating activities:        
Depreciation - property, plant and equipment 421 381 830 759
Amortization - intangible assets 39 38 77 76
Amortization - other 20 21 40 41
Deferred income tax expense 21 24 51 55
Equity component, allowance for funds used during construction (Note 11) (32) (23) (62) (46)
Other 22 43 22 49
Change in long-term regulatory assets and liabilities (20) (103) (100) (82)
Change in working capital (Note 13) (44) 217 (175) 177
Cash from operating activities 814 944 1,582 1,859
Investing activities        
Additions to property, plant and equipment (1,064) (938) (2,135) (1,845)
Additions to intangible assets (48) (44) (90) (91)
Contributions in aid of construction 24 20 51 71
Other (59) (51) (112) (89)
Cash used in investing activities (1,147) (1,013) (2,286) (1,954)
Financing activities        
Proceeds from long-term debt, net of issuance costs (Note 7) 1,071 1,247 1,418 1,881
Repayments of long-term debt and finance leases (692) (364) (696) (697)
Borrowings under committed credit facilities 1,824 1,972 3,728 3,875
Repayments under committed credit facilities (1,593) (2,201) (3,330) (3,938)
Net change in short-term borrowings (59) (273) (52) (165)
Issue of common shares, net of costs and dividends reinvested 8 14 21 28
Dividends        
Common shares, net of dividends reinvested (184) (172) (363) (342)
Preference shares (18) (17) (36) (33)
Subsidiary dividends paid to non-controlling interests (24) (17) (54) (40)
Other (14) 20 (13) 28
Cash from financing activities 319 209 623 597
Effect of exchange rate changes on cash and cash equivalents 6 (7) 17 (2)
Change in cash and cash equivalents (8) 133 (64) 500
Change in cash associated with assets held for sale 0 (19) 0 (19)
Cash and cash equivalents, beginning of period 569 576 625 209
Cash and cash equivalents, end of period $ 561 $ 690 $ 561 $ 690
v3.24.2
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) - CAD ($)
shares in Millions, $ in Millions
Total
Common Shares
Preference Shares
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Non-Controlling Interests
Balance, beginning of period (shares) at Dec. 31, 2022   482.2          
Balance, beginning of period at Dec. 31, 2022 $ 22,842 $ 14,656 $ 1,623 $ 10 $ 1,008 $ 3,733 $ 1,812
Increase (Decrease) in Equity [Roll Forward]              
Net earnings 830         764 66
Other comprehensive income (loss) (380)       (339)   (41)
Common shares issued (shares)   4.2          
Common shares issued 232 $ 233   (1)      
Subsidiary dividends paid to non-controlling interests (40)           (40)
Dividends declared on common shares (274)         (274)  
Dividends on preference shares (33)         (33)  
Other 0     (1)     1
Balance, end of period (shares) at Jun. 30, 2023   486.4          
Balance, end of period at Jun. 30, 2023 23,177 $ 14,889 1,623 8 669 4,190 1,798
Balance, beginning of period (shares) at Mar. 31, 2023   484.4          
Balance, beginning of period at Mar. 31, 2023 23,083 $ 14,773 1,623 8 967 3,896 1,816
Increase (Decrease) in Equity [Roll Forward]              
Net earnings 346         311 35
Other comprehensive income (loss) (334)       (298)   (36)
Common shares issued (shares)   2.0          
Common shares issued 115 $ 116   (1)      
Subsidiary dividends paid to non-controlling interests (17)           (17)
Dividends on preference shares (17)         (17)  
Other 1     1      
Balance, end of period (shares) at Jun. 30, 2023   486.4          
Balance, end of period at Jun. 30, 2023 23,177 $ 14,889 1,623 8 669 4,190 1,798
Balance, beginning of period (shares) at Dec. 31, 2023   490.6          
Balance, beginning of period at Dec. 31, 2023 23,332 $ 15,108 1,623 9 653 4,112 1,827
Increase (Decrease) in Equity [Roll Forward]              
Net earnings 899         826 73
Other comprehensive income (loss) 567       508   59
Common shares issued (shares)   4.6          
Common shares issued 238 $ 238          
Subsidiary dividends paid to non-controlling interests (54)           (54)
Dividends declared on common shares (291)         (291)  
Dividends on preference shares (36)         (36)  
Other 2     (1)     3
Balance, end of period (shares) at Jun. 30, 2024   495.2          
Balance, end of period at Jun. 30, 2024 24,657 $ 15,346 1,623 8 1,161 4,611 1,908
Balance, beginning of period (shares) at Mar. 31, 2024   493.0          
Balance, beginning of period at Mar. 31, 2024 24,015 $ 15,232 1,623 8 998 4,279 1,875
Increase (Decrease) in Equity [Roll Forward]              
Net earnings 387         349 38
Other comprehensive income (loss) 181       163   18
Common shares issued (shares)   2.2          
Common shares issued 114 $ 114          
Subsidiary dividends paid to non-controlling interests (24)           (24)
Dividends on preference shares (18)         (18)  
Other 2         1 1
Balance, end of period (shares) at Jun. 30, 2024   495.2          
Balance, end of period at Jun. 30, 2024 $ 24,657 $ 15,346 $ 1,623 $ 8 $ 1,161 $ 4,611 $ 1,908
v3.24.2
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]    
Dividends declared on common shares (CAD per share) $ 0.59 $ 0.565
v3.24.2
Description of Business
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business DESCRIPTION OF BUSINESS
Nature of Operations
Fortis Inc. ("Fortis" or the "Corporation") is a well-diversified North American regulated electric and gas utility holding company.

Earnings for interim periods may not be indicative of annual results due to: (i) the impact of seasonal weather conditions on customer demand; (ii) the impact of market conditions, particularly with respect to long-term wholesale sales at UNS Energy; (iii) changes in the U.S.-to-Canadian dollar exchange rate; and (iv) the timing and significance of regulatory decisions. Earnings of the gas utilities tend to be highest in the first and fourth quarters due to space-heating requirements. Earnings of the electric distribution utilities in the U.S. tend to be highest in the second and third quarters due to the use of air conditioning and other cooling equipment.

Entities within the reporting segments that follow operate with substantial autonomy.

Regulated Utilities
ITC: ITC Investment Holdings Inc., ITC Holdings Corp. and the electric transmission operations of its regulated operating subsidiaries, which include International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC and ITC Great Plains, LLC. Fortis owns 80.1% of ITC and an affiliate of GIC Private Limited owns a 19.9% minority interest.

UNS Energy: UNS Energy Corporation, which primarily includes Tucson Electric Power Company ("TEP"), UNS Electric, Inc. ("UNSE") and UNS Gas, Inc.

Central Hudson: CH Energy Group, Inc., which primarily includes Central Hudson Gas & Electric Corporation.

FortisBC Energy: FortisBC Energy Inc.

FortisAlberta: FortisAlberta Inc.

FortisBC Electric: FortisBC Inc.

Other Electric: Eastern Canadian and Caribbean utilities, as follows: Newfoundland Power Inc.; Maritime Electric Company, Limited; FortisOntario Inc.; a 39% equity investment in Wataynikaneyap Power Limited Partnership; an approximate 60% controlling interest in Caribbean Utilities Company, Ltd. ("Caribbean Utilities"); FortisTCI Limited and Turks and Caicos Utilities Limited (collectively "FortisTCI"); and a 33% equity investment in Belize Electricity Limited ("Belize Electricity").

Non-Regulated
Corporate and Other: Captures expenses and revenues not specifically related to any reportable segment and those business operations that are below the required threshold for segmented reporting. Consists of non-regulated holding company expenses, as well as non-regulated long-term contracted generation assets in Belize. Also includes results for the Aitken Creek natural gas storage facility ("Aitken Creek") until the November 1, 2023 date of disposition.
v3.24.2
Regulatory Matters
 6 Months Ended
Jun. 30, 2024
Regulated Operations [Abstract]  
Regulatory Matters REGULATORY MATTERS
Regulation of the Corporation's utilities is generally consistent with that disclosed in Note 2 of the Corporation's annual audited consolidated financial statements ("2023 Annual Financial Statements"). A summary of significant outstanding regulatory matters follows.

ITC
MISO Base ROE: In 2022, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision vacating certain Federal Energy Regulatory Commission ("FERC") orders that had established the methodology for setting the base return on equity ("ROE") for transmission owners operating in the Midcontinent Independent System Operator, Inc. ("MISO") region, including ITC. This matter dates back to complaints filed at FERC in 2013 and 2015 challenging the MISO base ROE then in effect. The court has remanded the matter to FERC for further process, the timing and outcome of which remain unknown.

Transmission Incentives: In 2021, FERC issued a supplemental notice of proposed rulemaking ("NOPR") on transmission incentives modifying the proposal in the initial NOPR released by FERC in 2020. The supplemental NOPR proposes to eliminate the 50-basis point regional transmission organization ("RTO") ROE incentive adder for RTO members that have been members for longer than three years. The timing and outcome of this proceeding remain unknown.

Transmission Right of First Refusal ("ROFR"): In December 2023, the Iowa District Court ruled that the manner in which Iowa's ROFR statute was passed is unconstitutional. The statute granted incumbent electric transmission owners, including ITC, a ROFR to construct, own and maintain certain electric transmission assets in the state. The District Court did not make any determination on the merits of the ROFR itself, but did issue a permanent injunction preventing ITC and others from taking further action to construct the MISO long range transmission plan ("LRTP") tranche 1 Iowa projects in reliance on the ROFR. In July 2024, a judge on the Iowa Supreme Court granted a motion filed by ITC requesting a stay of the injunction issued by the District Court. With the stay of the injunction in place, ITC is permitted to advance construction of all Iowa tranche 1 projects originally awarded to the company in 2022. Certain complainants have requested that the judge's order be reviewed by a full quorum of the Iowa Supreme Court. Until there is more certainty around the resolution of these matters, we cannot predict the impact on the timing of capital expenditures related to the LRTP tranche 1 Iowa projects.
Central Hudson
2024 General Rate Application: In July 2024, the New York State Public Service Commission ("PSC") approved a one-year rate plan for Central Hudson with retroactive application to July 1, 2024, including an allowed ROE of 9.5%, an increase from the previous allowed ROE of 9.0%. The decision also concluded that there will be no change in the common equity component of capital structure of 48%.

Customer Information System ("CIS") Implementation: In June 2024, the PSC issued an order that concluded the investigation concerning Central Hudson's billing system implementation. The PSC also released the final report issued by an independent third-party which determined that the CIS is stable and the critical issues have been resolved. As part of the order, total costs of US$63 million were agreed to not be recovered from customers, of which the majority were recognized prior to 2024. The remaining costs to be recognized associated with the order, including Central Hudson's US$4 million contribution to a customer benefit fund recorded in the second quarter of 2024, are not expected to be material.

FortisBC Energy and FortisBC Electric
2025-2027 Rate Framework: In April 2024, FortisBC filed an application with the British Columbia Utilities Commission requesting approval of a rate framework for the period 2025 through 2027. The rate framework builds upon the current multi-year rate plan and includes, amongst other items, a revised level of operation and maintenance expense per customer indexed for inflation less a fixed productivity adjustment factor, a similar approach to growth capital, a forecast approach to sustaining and other capital, continued collection of an innovation fund recognizing the need to accelerate investment in clean energy innovation, and the continued sharing with customers of variances from the allowed ROE. The rate framework also proposes the continuation of deferral mechanisms currently in place. The regulatory process will continue throughout 2024, with a decision expected in mid-2025.

FortisAlberta
Generic Cost of Capital ("GCOC") Decision: In October 2023, the Alberta Utilities Commission ("AUC") issued a decision on the 2024 GCOC proceeding. In November 2023, FortisAlberta sought permission to appeal the GCOC decision to the Court of Appeal of Alberta ("Court of Appeal") on the basis that the AUC erred in its decision to not adjust FortisAlberta's ROE and common equity component of capital structure to address incremental business risk associated with competition from Rural Electrification Associations ("REAs") located in FortisAlberta's service area, as well as heightened regulatory risk due to the non-recovery of costs attributable to REAs. In April 2024, the Court of Appeal granted FortisAlberta permission to appeal, which is expected to be complete in the first quarter of 2025.

Third PBR Term Decision: In October 2023, the AUC issued a decision establishing the parameters for the third performance-based rate ("PBR") setting term for the period of 2024 through 2028. In November 2023, FortisAlberta sought permission to appeal the decision to the Court of Appeal on the basis that the AUC erred in its decision to determine capital funding using 2018-2022 historical capital investments without consideration for funding of new capital programs included in the company's 2023 cost of service revenue requirement as approved by the AUC. The timing and outcome of a decision on the request for appeal is unknown.
v3.24.2
Accounting Policies
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Accounting Policies ACCOUNTING POLICIES
These condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for rate-regulated entities and are in Canadian dollars unless otherwise indicated.

The Interim Financial Statements include the accounts of the Corporation and its subsidiaries and reflect the equity method of accounting for entities in which Fortis has significant influence, but not control, and proportionate consolidation for assets that are jointly owned with non-affiliated entities.

Intercompany transactions have been eliminated, except for transactions between non-regulated and regulated entities in accordance with U.S. GAAP for rate-regulated entities.

These Interim Financial Statements do not include all of the disclosures required in the annual financial statements and should be read in conjunction with the Corporation's 2023 Annual Financial Statements. In management's opinion, these Interim Financial Statements include all adjustments that are of a normal recurring nature, necessary for fair presentation.

The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates.

The accounting policies applied herein are consistent with those outlined in the Corporation's 2023 Annual Financial Statements.
Future Accounting Pronouncements
The Corporation considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. Any ASUs not included in these Interim Financial Statements were assessed and determined to be either not applicable to the Corporation or are not expected to have a material impact on the Interim Financial Statements.

Segment Reporting: ASU No. 2023-07, Improvements to Reportable Segment Disclosures, is effective for Fortis' December 31, 2024 annual financial statements and for interim periods beginning in 2025, on a retrospective basis. The ASU requires disclosure of incremental segment information, including significant segment expenses and other items that are included in segment profit or loss. Fortis is continuing to assess the impact on its disclosures.

Income Taxes: ASU No. 2023-09, Improvements to Income Tax Disclosures, is effective for Fortis on January 1, 2025 on a prospective basis, with retrospective application and early adoption permitted. The ASU requires additional disclosure of income tax information by jurisdiction to reflect an entity's exposure to potential changes in tax legislation, and associated risks and opportunities. Fortis does not expect the ASU to materially impact its disclosures.
v3.24.2
Segmented Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segmented Information SEGMENTED INFORMATION
Fortis segments its business based on regulatory jurisdiction and service territory, as well as the information used by its President and Chief Executive Officer in deciding how to allocate resources. Segment performance is evaluated principally on net earnings attributable to common equity shareholders.

Related-Party and Inter-Company Transactions
Related-party transactions are in the normal course of operations and are measured at the amount of consideration agreed to by the related parties. There were no material related-party transactions for the three and six months ended June 30, 2024 and 2023.

Fortis periodically provides short-term financing to subsidiaries to support capital expenditures and seasonal working capital requirements, the impacts of which are eliminated on consolidation. As at June 30, 2024 and December 31, 2023, there were no material inter-segment loans outstanding. Interest charged on inter-segment loans was not material for the three and six months ended June 30, 2024 and 2023.
RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Quarter ended June 30, 2024
Revenue556 710 303 336 204 120 433 2,662 8 —2,670 
Energy supply costs— 272 96 77 — 21 247 713 — —713 
Operating expenses129 189 167 101 50 34 62 732 7 —739 
Depreciation and amortization111 101 31 84 75 22 55 479 1 —480 
Operating income316 148 9 74 79 43 69 738 — —738 
Other income, net26 9 16 10 3 1 2 67 (2)—65 
Finance charges120 37 18 39 34 20 23 291 56 —347 
Income tax expense51 16 2 13 8 4 5 99 (30)—69 
Net earnings171 104 5 32 40 20 43 415 (28)—387 
Non-controlling interests32 — — 1 — — 5 38 — —38 
Preference share dividends— — — — — — — — 18 —18 
Net earnings attributable to common equity shareholders139 104 5 31 40 20 38 377 (46)—331 
Additions to property, plant and equipment and intangible assets309 209 98 221 135 33 106 1,111 1 —1,112 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Quarter ended June 30, 2023
Revenue519 661 317 362 181 116 420 2,576 18 —2,594 
Energy supply costs— 262 121 141 — 22 241 787 — —787 
Operating expenses125 204 144 91 44 31 56 695 18 —713 
Depreciation and amortization103 88 28 78 67 24 51 439 1 —440 
Operating income 291 107 24 52 70 39 72 655 (1)—654 
Other income, net19 12 13 9 3 1 5 62 2 —64 
Finance charges105 37 15 43 30 19 21 270 53 —323 
Income tax expense 49 12 5 (5)2 3 8 74 (25)—49 
Net earnings 156 70 17 23 41 18 48 373 (27)—346 
Non-controlling interests29 — — — — — 6 35 — —35 
Preference share dividends— — — — — — — — 17 —17 
Net earnings attributable to common equity shareholders127 70 17 23 41 18 42 338 (44)—294 
Additions to property, plant and equipment and intangible assets264 183 78 125 182 35 115 982 — —982 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 
RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Year-to-date June 30, 2024
Revenue1,106 1,465 678 897 401 266 960 5,773 15 —5,788 
Energy supply costs— 598 218 239 — 70 597 1,722 — —1,722 
Operating expenses265 395 338 196 97 67 125 1,483 22 —1,505 
Depreciation and amortization220 199 61 168 144 44 108 944 3 —947 
Operating income621 273 61 294 160 85 130 1,624 (10)—1,614 
Other income, net54 21 30 19 5 3 10 142 (4)—138 
Finance charges233 72 36 78 67 40 47 573 110 —683 
Income tax expense102 30 13 57 13 8 12 235 (65)—170 
Net earnings340 192 42 178 85 40 81 958 (59)—899 
Non-controlling interests63 — — 1 — — 9 73 — —73 
Preference share dividends— — — — — — — — 36 —36 
Net earnings attributable to common equity shareholders277 192 42 177 85 40 72 885 (95)—790 
Additions to property, plant and equipment and intangible assets666 423 187 423 263 60 201 2,223 2 —2,225 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Year-to-date June 30, 2023
Revenue1,038 1,401 759 1,117 360 255 927 5,857 56 —5,913 
Energy supply costs— 599 328 518 — 69 585 2,099 — —2,099 
Operating expenses260 394 306 189 86 61 116 1,412 42 —1,454 
Depreciation and amortization204 175 56 155 131 48 101 870 6 —876 
Operating income 574 233 69 255 143 77 125 1,476 8 —1,484 
Other income, net36 26 27 16 3 2 12 122 11 —133 
Finance charges204 73 33 84 60 39 42 535 103 —638 
Income tax expense 96 26 14 40 5 4 14 199 (50)—149 
Net earnings 310 160 49 147 81 36 81 864 (34)—830 
Non-controlling interests57 — — — — — 9 66 — —66 
Preference share dividends— — — — — — — — 33 —33 
Net earnings attributable to common equity shareholders253 160 49 147 81 36 72 798 (67)—731 
Additions to property, plant and equipment and intangible assets600 368 156 239 301 62 208 1,934 2 —1,936 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 
v3.24.2
Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Allowance for Credit Losses ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses balance, which is recorded in accounts receivable and other current assets, changed as follows.

QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Balance, beginning of period(69)(59)(68)(58)
Credit loss expense(8)(3)(16)(11)
Credit loss deferral(9)(2)(20)(3)
Write-offs, net of recoveries17 4 36 12 
Foreign exchange— — (1)— 
Balance, end of period(69)(60)(69)(60)

See Note 14 for disclosure on the Corporation's credit risk.
v3.24.2
Regulatory Assets and Liabilities
 6 Months Ended
Jun. 30, 2024
Regulated Operations [Abstract]  
Regulatory Assets and Liabilities REGULATORY ASSETS AND LIABILITIES
Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2023 Annual Financial Statements. A summary follows.
As at
June 30,December 31,
($ millions)
2024 2023 
Regulatory assets
Deferred income taxes 2,141 2,058 
Deferred energy management costs 532 521 
Rate stabilization and related accounts 492 521 
Employee future benefits 257 254 
Derivatives182 197 
Deferred lease costs 139 137 
Deferred restoration costs134 115 
Manufactured gas plant site remediation deferral 78 81 
Generation early retirement costs72 64 
Other regulatory assets 515 436 
Total regulatory assets4,542 4,384 
Less: Current portion(780)(866)
Long-term regulatory assets3,762 3,518 
Regulatory liabilities
Future cost of removal1,631 1,547 
Deferred income taxes1,291 1,280 
Employee future benefits292 294 
Rate stabilization and related accounts291 292 
Renewable energy surcharge129 129 
Alberta Electric System Operator charges deferral115 121 
Energy efficiency liability88 78 
Other regulatory liabilities236 217 
Total regulatory liabilities4,073 3,958 
Less: Current portion(607)(577)
Long-term regulatory liabilities3,466 3,381 
v3.24.2
Long-Term Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Long-Term Debt LONG-TERM DEBT
As at
June 30,December 31,
($ millions)2024 2023 
Long-term debt29,474 28,131 
Credit facility borrowings 2,006 1,572 
Total long-term debt31,480 29,703 
Less: Deferred financing costs and debt discounts(179)(172)
Less: Current installments of long-term debt(2,630)(2,296)
28,671 27,235 

Significant Long-Term Debt IssuancesInterest
Year-to-date June 30, 2024MonthRateUse of
($ millions, except as noted)
Issued

(%)
MaturityAmountProceeds
ITC
Secured senior notesJanuary5.98 2034US85 
(1) (2) (3)
First mortgage bondsJanuary5.11 2029US75 
(1) (2) (3)
First mortgage bondsJanuary5.38 2034US75 
(1) (2) (3)
Unsecured senior notesMay5.65 2034US400 
(3) (4)
Central Hudson
Senior notesApril5.59 2031US25 
(1) (3)
Senior notesApril5.69 2034US35 
(1) (3)
FortisAlberta
Unsecured debenturesMay4.90 2054300 
(1) (2) (3) (4)
Caribbean Utilities
Unsecured senior notesMay6.17 2039US40 
(1) (2) (3) (5)
Unsecured senior notesMay6.37 2049US40 
(1) (2) (3) (5)
UNS Energy
Unsecured senior notesJune5.60 2036US30 
(1) (3)
(1)    Repay short-term and/or credit facility borrowings
(2)    Fund capital expenditures
(3)    General corporate purposes
(4)     Repay maturing long-term debt
(5)     Total of US$50 million expected to be used to fund or refinance a portfolio of new and/or existing qualifying green initiatives

In November 2022, Fortis filed a short-form base shelf prospectus with a 25-month life under which it may issue common or preference shares, subscription receipts, or debt securities in an aggregate principal amount of up to $2.0 billion. In September 2023, Fortis established an at-the-market equity program ("ATM Program") pursuant to the short-form base shelf prospectus, that allows the Corporation to issue up to $500 million of common shares from treasury to the public from time to time, at the Corporation's discretion, effective until December 22, 2024. As at June 30, 2024, $500 million remained available under the ATM Program and $1.5 billion remained available under the short-form base shelf prospectus.

As at
Credit facilitiesRegulatedCorporateJune 30,December 31,
($ millions)Utilitiesand Other2024 2023 
Total credit facilities4,234 2,260 6,494 6,176 
Credit facilities utilized:
Short-term borrowings (1)
(68)— (68)(119)
Long-term debt (including current portion) (2)
(1,192)(814)(2,006)(1,572)
Letters of credit outstanding(55)(21)(76)(101)
Credit facilities unutilized2,919 1,425 4,344 4,384 
(1)    The weighted average interest rate was 7.3% (December 31, 2023 - 6.9%).
(2)    The weighted average interest rate was 5.7% (December 31, 2023 - 6.2%). The current portion was $1,610 million (December 31, 2023 - $1,160 million).

Credit facilities are syndicated primarily with large banks in Canada and the U.S., with no one bank holding more than approximately 20% of the Corporation's total revolving credit facilities. Approximately $6.0 billion of the total credit facilities are committed with maturities ranging from 2024 through 2029.
See Note 14 in the 2023 Annual Financial Statements for a description of the credit facilities as at December 31, 2023.

In April 2024, FortisBC Energy increased its operating credit facility from $700 million to $900 million and extended the maturity to July 2028. In May 2024, FortisBC Electric increased its operating credit facility from $150 million to $200 million and extended the maturity to April 2028.
In May 2024, the Corporation extended the maturity on its unsecured US$500 million non-revolving term credit facility to May 2025. The facility is repayable at any time without penalty. In June 2024, the Corporation amended its $1.3 billion revolving term committed credit facility to extend the maturity to July 2029.
v3.24.2
Preference Shares
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Preference Shares PREFERENCE SHARES
On March 1, 2024, the annual fixed dividend per share for the First Preference Shares, Series K was reset from $0.9823 to $1.3673 for the five-year period up to but excluding March 1, 2029.
v3.24.2
Employee Future Benefits
 6 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Employee Future Benefits EMPLOYEE FUTURE BENEFITS
Fortis and each subsidiary maintain one or a combination of defined benefit pension plans and defined contribution pension plans, as well as other post-employment benefit ("OPEB") plans, including health and dental coverage and life insurance benefits, for qualifying members. The net benefit cost is detailed below.
Defined Benefit
Pension Plans
OPEB Plans
($ millions)2024 2023 2024 2023 
Quarter ended June 30
Service costs19 16 6 6 
Interest costs40 40 8 7 
Expected return on plan assets(55)(50)(7)(5)
Amortization of actuarial gains— (3)(5)(5)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 2 1 1 
Net benefit cost3 4 3 3 
Year-to-date June 30
Service costs37 31 12 11 
Interest costs80 80 15 15 
Expected return on plan assets(110)(100)(13)(11)
Amortization of actuarial gains— (5)(9)(9)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 6 1 3 
Net benefit cost6 11 6 8 

Defined contribution pension plan expense for the three and six months ended June 30, 2024 was $14 million and $31 million, respectively (three and six months ended June 30, 2023 - $13 million and $29 million, respectively).
v3.24.2
Disposition
 6 Months Ended
Jun. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Disposition DISPOSITION
In November 2023, Fortis sold its Aitken Creek business to a subsidiary of Enbridge Inc. for approximately $470 million including working capital and closing adjustments.

For the three and six months ended June 30, 2023, Aitken Creek had net earnings of $3 million and $18 million, respectively.
v3.24.2
Other Income, Net
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Other Income, Net OTHER INCOME, NET
QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Equity component, allowance for funds used during construction32 23 62 46 
Non-service component of net periodic benefit cost18 16 36 32 
Interest income (1)
16 18 32 34 
Equity income(1)2 4 7 
(Loss) gain on derivatives, net(1)3 (6)12 
Other1 2 10 2 
65 64 138 133 
(1)    Includes interest on short-term deposits, as well as interest on regulatory deferrals, including the PPFAC at TEP and UNSE
v3.24.2
Earnings Per Common Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Common Share EARNINGS PER COMMON SHARE
Diluted earnings per share ("EPS") was calculated using the treasury stock method for stock options.

20242023
Net EarningsWeightedNet EarningsWeighted
to CommonAverageto CommonAverage
ShareholdersSharesEPSShareholdersSharesEPS
($ millions)(# millions)($)($ millions)(# millions)($)
Quarter ended June 30
Basic EPS331 494.0 0.67 294 485.4 0.61 
Potential dilutive effect of stock options— 0.2 — 0.3 
Diluted EPS331 494.2 0.67 294 485.7 0.61 
Year-to-date June 30
Basic EPS790 492.8 1.60 731 484.3 1.51 
Potential dilutive effect of stock options— 0.4 — 0.3 
Diluted EPS790 493.2 1.60 731 484.6 1.51 
v3.24.2
Supplementary Cash Flow Information
 6 Months Ended
Jun. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
Supplementary Cash Flow Information SUPPLEMENTARY CASH FLOW INFORMATION
QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Change in working capital
Accounts receivable and other current assets128 208 63 489 
Prepaid expenses(27)(19)(29)(19)
Inventories(44)(29)(14)62 
Regulatory assets - current portion42 164 134 160 
Accounts payable and other current liabilities(160)(132)(347)(537)
Regulatory liabilities - current portion17 25 18 22 
(44)217 (175)177 
Non-cash investing and financing activities
Accrued capital expenditures469 366 469 366 
Common share dividends reinvested107 102 218 205 
Contributions in aid of construction9 10 9 10 
v3.24.2
Fair Value of Financial Instruments and Risk Management
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments and Risk Management FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
Derivatives
The Corporation generally limits the use of derivatives to those that qualify as accounting, economic or cash flow hedges, or those that are approved for regulatory recovery.

Derivatives are recorded at fair value with certain exceptions including those derivatives that qualify for the normal purchase and normal sale exception. Fair values reflect estimates based on current market information about the derivatives as at the balance sheet dates. The estimates cannot be determined with precision as they involve uncertainties and matters of judgment and, therefore, may not be relevant in predicting the Corporation's future consolidated earnings or cash flow.

Energy Contracts Subject to Regulatory Deferral
UNS Energy holds electricity power purchase contracts, customer supply contracts and gas swap contracts to reduce its exposure to energy price risk. Fair values are measured primarily under the market approach using independent third-party information, where possible. When published prices are not available, adjustments are applied based on historical price curve relationships, transmission costs and line losses.

Central Hudson holds swap contracts for electricity and natural gas to minimize price volatility by fixing the effective purchase price. Fair values are measured using forward pricing provided by independent third-party information.

FortisBC Energy holds gas supply contracts to fix the effective purchase price of natural gas. Fair values reflect the present value of future cash flows based on published market prices and forward natural gas price curves.

Unrealized gains or losses associated with changes in the fair value of these energy contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates, as permitted by the regulators. As at June 30, 2024, unrealized losses of $182 million (December 31, 2023 - $197 million) were recognized as regulatory assets and unrealized gains of $42 million (December 31, 2023 - $37 million) were recognized as regulatory liabilities.

Energy Contracts Not Subject to Regulatory Deferral
UNS Energy holds wholesale trading contracts to fix power prices and realize potential margin, of which 10% of any realized gains is shared with customers through rate stabilization accounts. Fair values are measured using a market approach incorporating, where possible, independent third-party information.

Aitken Creek, which was sold on November 1, 2023, held gas swap contracts to manage its exposure to changes in natural gas prices, capture natural gas price spreads, and manage the financial risk posed by physical transactions. Fair values were measured using forward pricing from published market sources.

Unrealized gains or losses associated with changes in the fair value of these energy contracts are recognized in revenue. During the three and six months ended June 30, 2024, unrealized gains of $nil and $36 million were recognized in revenue, respectively (three and six months ended June 30, 2023 - unrealized losses of $8 million and unrealized gains of $6 million, respectively).

Total Return Swaps
The Corporation holds total return swaps to manage the cash flow risk associated with forecast future cash and/or share settlements of certain stock-based compensation obligations. The swaps have a combined notional amount of $134 million and terms of one to three years expiring at varying dates through January 2027. Fair value is measured using an income valuation approach based on forward pricing curves. Unrealized gains and losses associated with changes in fair value are recognized in other income, net. During the three and six months ended June 30, 2024, unrealized losses of $1 million and $4 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - unrealized losses of $1 million and unrealized gains of $5 million, respectively).

Foreign Exchange Contracts
The Corporation holds U.S. dollar denominated foreign exchange contracts to help mitigate exposure to foreign exchange rate volatility. The contracts expire at varying dates through March 2026 and have a combined notional amount of $440 million. Fair value was measured using independent third-party information. Unrealized gains and losses associated with changes in fair value are recognized in other income, net. During the three and six months ended June 30, 2024, unrealized losses of $2 million and $5 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - unrealized gains of $5 million and $7 million, respectively).

Interest Rate Locks
During the second quarter of 2024, ITC entered into and settled interest rate locks with a combined notional value of US$300 million. These contracts were used to manage interest rate risk associated with the issuance of US$400 million unsecured senior notes in May 2024. Realized losses of US$3 million were recognized in other comprehensive income, which will be reclassified to earnings as a component of interest expense over 5 years.
Cross-Currency Interest Rate Swaps
The Corporation holds cross-currency interest rate swaps, maturing in 2029, to effectively convert its $500 million, 4.43% unsecured senior notes to US$391 million, 4.34% debt. The Corporation has designated this notional U.S. debt as an effective hedge of its foreign net investments and unrealized gains and losses associated with exchange rate fluctuations on the notional U.S. debt are recognized in other comprehensive income, consistent with the translation adjustment related to the foreign net investments. Other changes in the fair value of the swaps are also recognized in other comprehensive income but are excluded from the assessment of hedge effectiveness. Fair value is measured using a discounted cash flow method based on secured overnight financing rates. During the three and six months ended June 30, 2024, unrealized losses of $2 million and $15 million, respectively were recorded in other comprehensive income (three and six months ended June 30, 2023 - unrealized gains of $9 million and $10 million, respectively).

Other Investments
UNS Energy holds investments in money market accounts, and ITC and Central Hudson hold investments in trust associated with supplemental retirement benefit plans for select employees, which include mutual funds and money market accounts. These investments are recorded at fair value based on quoted market prices in active markets. Gains and losses are recognized in other income, net. During the three and six months ended June 30, 2024, gains of $2 million and $6 million, respectively were recognized in other income, net (three and six months ended June 30, 2023 - gains of $1 million and $3 million, respectively).

Recurring Fair Value Measures

The following table presents assets and liabilities that are accounted for at fair value on a recurring basis.

($ millions)
Level 1 (1)
Level 2 (1)
Level 3 (1)
Total
As at June 30, 2024
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 57 — 57 
Energy contracts not subject to regulatory deferral (2)
— 40 — 40 
Other investments (4)
132 — — 132 
132 97 — 229 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (197)— (197)
Energy contracts not subject to regulatory deferral (5)
— (2)— (2)
Foreign exchange contracts, total return and cross-currency interest rate swaps (5)
— (24)— (24)
— (223)— (223)
As at December 31, 2023
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 49 — 49 
Energy contracts not subject to regulatory deferral (2)
— 6 — 6 
Foreign exchange contracts (2)
— 5 — 5 
Other investments (4)
145 — — 145 
145 60 — 205 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (209)— (209)
Energy contracts not subject to regulatory deferral (5)
— (3)— (3)
Total return and cross-currency interest rate swaps (5)
— (6)— (6)
— (218)— (218)
(1)Under the hierarchy, fair value is determined using: (i) level 1 - unadjusted quoted prices in active markets; (ii) level 2 - other pricing inputs directly or indirectly observable in the marketplace; and (iii) level 3 - unobservable inputs, used when observable inputs are not available. Classifications reflect the lowest level of input that is significant to the fair value measurement.
(2)Included in accounts receivable and other current assets or other assets
(3)Unrealized gains and losses arising from changes in fair value of these contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates as permitted by the regulators, with the exception of long-term wholesale trading contracts and certain gas swap contracts.
(4)Included in cash and cash equivalents and other assets
(5)Included in accounts payable and other current liabilities or other liabilities

Energy Contracts
The Corporation has elected gross presentation for its derivative contracts under master netting agreements and collateral positions, which apply only to its energy contracts. The following table presents the potential offset of counterparty netting.
Gross AmountCounterparty
Recognized inNetting ofCash Collateral
($ millions)Balance SheetEnergy ContractsPosted/(Received)Net Amount
As at June 30, 2024
Derivative assets97 (34)15 78 
Derivative liabilities(199)34 (10)(175)
As at December 31, 2023
Derivative assets55 (24)28 59 
Derivative liabilities(212)24 (1)(189)

Volume of Derivative Activity
As at June 30, 2024, the Corporation had various energy contracts that will settle on various dates through 2029. The volumes related to electricity and natural gas derivatives are outlined below.
As at
June 30,December 31,
2024 2023 
Energy contracts subject to regulatory deferral (1)
Electricity swap contracts (GWh)
831 628 
Electricity power purchase contracts (GWh)
492 588 
Gas swap contracts (PJ)
247 228 
Gas supply contracts (PJ)
113 134 
Energy contracts not subject to regulatory deferral (1)
Wholesale trading contracts (GWh)
4,092 1,310 
Gas swap contracts (PJ)
2 3 
(1)GWh means gigawatt hours and PJ means petajoules.

Credit Risk
For cash equivalents, accounts receivable and other current assets, and long-term other receivables, credit risk is generally limited to the carrying value on the consolidated balance sheets. The Corporation's subsidiaries generally have a large and diversified customer base, which minimizes the concentration of credit risk. Policies in place to minimize credit risk include requiring customer deposits, prepayments and/or credit checks for certain customers, performing disconnections and/or using third-party collection agencies for overdue accounts.

ITC has a concentration of credit risk as approximately 70% of its revenue is derived from three customers. The customers have investment-grade credit ratings and credit risk is further managed by MISO by requiring a letter of credit or cash deposit equal to the credit exposure, which is determined by a credit-scoring model and other factors.

FortisAlberta has a concentration of credit risk as distribution service billings are to a relatively small group of retailers. Credit risk is managed by obtaining from the retailers either a cash deposit, letter of credit, an investment-grade credit rating, or a financial guarantee from an entity with an investment-grade credit rating.

Central Hudson has seen an increase in accounts receivable since the suspension of collection efforts initially required in response to the COVID-19 pandemic. Central Hudson continues to proactively contact customers regarding past-due balances to advise them of financial assistance available through state programs, and collection efforts continue to expand. Under its regulatory framework, Central Hudson can defer uncollectible write-offs that exceed 10 basis points above the amounts collected in customer rates for future recovery.

UNS Energy, Central Hudson, FortisBC Energy, and the Corporation may be exposed to credit risk in the event of non-performance by counterparties to derivatives. Credit risk is managed by net settling payments, when possible, and dealing only with counterparties that have investment-grade credit ratings. At UNS Energy, Central Hudson and FortisBC Energy, certain contractual arrangements require counterparties to post collateral.

The value of derivatives in net liability positions under contracts with credit risk-related contingent features that, if triggered, could require the posting of a like amount of collateral was $111 million as at June 30, 2024 (December 31, 2023 - $117 million).
Hedge of Foreign Net Investments
The reporting currency of ITC, UNS Energy, Central Hudson, Caribbean Utilities, FortisTCI, Fortis Belize Limited and Belize Electricity is, or is pegged to, the U.S. dollar. The earnings and cash flow from, and net investments in, these entities are exposed to fluctuations in the U.S. dollar-to-Canadian dollar exchange rate. The Corporation has reduced this exposure through hedging.

As at June 30, 2024, US$2.6 billion (December 31, 2023 - US$2.6 billion) of corporately issued U.S. dollar-denominated long-term debt has been designated as an effective hedge of net investments, leaving approximately US$11.8 billion (December 31, 2023 - US$11.5 billion) unhedged. Exchange rate fluctuations associated with the net investment in foreign subsidiaries and the debt serving as the hedge are recognized in accumulated other comprehensive income.

Financial Instruments Not Carried at Fair Value
Excluding long-term debt, the consolidated carrying value of the Corporation's remaining financial instruments approximates fair value, reflecting their short-term maturity, normal trade credit terms and/or nature.

As at June 30, 2024, the carrying value of long-term debt, including current portion, was $31.5 billion (December 31, 2023 - $29.7 billion) compared to an estimated fair value of $28.9 billion (December 31, 2023 - $27.9 billion).
v3.24.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
Commitments
There were no material changes in commitments from that disclosed in the Corporation's 2023 Annual Financial Statements.

Contingency
In April 2013, FortisBC Holdings Inc. and Fortis were named as defendants in an action in the British Columbia Supreme Court by the Coldwater Indian Band ("Band") regarding interests in a pipeline across reserve lands. The Band seeks cancellation of the right-of-way and damages for wrongful interference with the Band's use and enjoyment of reserve lands. In 2016, the Federal Court dismissed the Band's application for judicial review of the ministerial consent. In 2017, the Federal Court of Appeal set aside the minister's consent and returned the matter to the minister for redetermination. No amount has been accrued as the outcome cannot yet be reasonably determined.
v3.24.2
Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Accounting
These condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for rate-regulated entities and are in Canadian dollars unless otherwise indicated.
Consolidation
The Interim Financial Statements include the accounts of the Corporation and its subsidiaries and reflect the equity method of accounting for entities in which Fortis has significant influence, but not control, and proportionate consolidation for assets that are jointly owned with non-affiliated entities.

Intercompany transactions have been eliminated, except for transactions between non-regulated and regulated entities in accordance with U.S. GAAP for rate-regulated entities.

These Interim Financial Statements do not include all of the disclosures required in the annual financial statements and should be read in conjunction with the Corporation's 2023 Annual Financial Statements. In management's opinion, these Interim Financial Statements include all adjustments that are of a normal recurring nature, necessary for fair presentation.
Use of Accounting Estimates The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates.
Future Accounting Pronouncements
The Corporation considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. Any ASUs not included in these Interim Financial Statements were assessed and determined to be either not applicable to the Corporation or are not expected to have a material impact on the Interim Financial Statements.

Segment Reporting: ASU No. 2023-07, Improvements to Reportable Segment Disclosures, is effective for Fortis' December 31, 2024 annual financial statements and for interim periods beginning in 2025, on a retrospective basis. The ASU requires disclosure of incremental segment information, including significant segment expenses and other items that are included in segment profit or loss. Fortis is continuing to assess the impact on its disclosures.

Income Taxes: ASU No. 2023-09, Improvements to Income Tax Disclosures, is effective for Fortis on January 1, 2025 on a prospective basis, with retrospective application and early adoption permitted. The ASU requires additional disclosure of income tax information by jurisdiction to reflect an entity's exposure to potential changes in tax legislation, and associated risks and opportunities. Fortis does not expect the ASU to materially impact its disclosures.
v3.24.2
Segmented Information (Tables)
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Schedule of Information by Reportable Segment
RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Quarter ended June 30, 2024
Revenue556 710 303 336 204 120 433 2,662 8 —2,670 
Energy supply costs— 272 96 77 — 21 247 713 — —713 
Operating expenses129 189 167 101 50 34 62 732 7 —739 
Depreciation and amortization111 101 31 84 75 22 55 479 1 —480 
Operating income316 148 9 74 79 43 69 738 — —738 
Other income, net26 9 16 10 3 1 2 67 (2)—65 
Finance charges120 37 18 39 34 20 23 291 56 —347 
Income tax expense51 16 2 13 8 4 5 99 (30)—69 
Net earnings171 104 5 32 40 20 43 415 (28)—387 
Non-controlling interests32 — — 1 — — 5 38 — —38 
Preference share dividends— — — — — — — — 18 —18 
Net earnings attributable to common equity shareholders139 104 5 31 40 20 38 377 (46)—331 
Additions to property, plant and equipment and intangible assets309 209 98 221 135 33 106 1,111 1 —1,112 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Quarter ended June 30, 2023
Revenue519 661 317 362 181 116 420 2,576 18 —2,594 
Energy supply costs— 262 121 141 — 22 241 787 — —787 
Operating expenses125 204 144 91 44 31 56 695 18 —713 
Depreciation and amortization103 88 28 78 67 24 51 439 1 —440 
Operating income 291 107 24 52 70 39 72 655 (1)—654 
Other income, net19 12 13 9 3 1 5 62 2 —64 
Finance charges105 37 15 43 30 19 21 270 53 —323 
Income tax expense 49 12 5 (5)2 3 8 74 (25)—49 
Net earnings 156 70 17 23 41 18 48 373 (27)—346 
Non-controlling interests29 — — — — — 6 35 — —35 
Preference share dividends— — — — — — — — 17 —17 
Net earnings attributable to common equity shareholders127 70 17 23 41 18 42 338 (44)—294 
Additions to property, plant and equipment and intangible assets264 183 78 125 182 35 115 982 — —982 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 
RegulatedNon-Regulated
Inter-
UNSCentralFortisBCFortisFortisBCOtherSubCorporatesegment
($ millions)ITCEnergyHudsonEnergyAlbertaElectricElectricTotaland OthereliminationsTotal
Year-to-date June 30, 2024
Revenue1,106 1,465 678 897 401 266 960 5,773 15 —5,788 
Energy supply costs— 598 218 239 — 70 597 1,722 — —1,722 
Operating expenses265 395 338 196 97 67 125 1,483 22 —1,505 
Depreciation and amortization220 199 61 168 144 44 108 944 3 —947 
Operating income621 273 61 294 160 85 130 1,624 (10)—1,614 
Other income, net54 21 30 19 5 3 10 142 (4)—138 
Finance charges233 72 36 78 67 40 47 573 110 —683 
Income tax expense102 30 13 57 13 8 12 235 (65)—170 
Net earnings340 192 42 178 85 40 81 958 (59)—899 
Non-controlling interests63 — — 1 — — 9 73 — —73 
Preference share dividends— — — — — — — — 36 —36 
Net earnings attributable to common equity shareholders277 192 42 177 85 40 72 885 (95)—790 
Additions to property, plant and equipment and intangible assets666 423 187 423 263 60 201 2,223 2 —2,225 
As at June 30, 2024
Goodwill8,395 1,890 617 913 228 235 260 12,538 — —12,538 
Total assets25,437 13,454 5,637 9,612 6,120 2,744 5,388 68,392 422 (42)68,772 
Year-to-date June 30, 2023
Revenue1,038 1,401 759 1,117 360 255 927 5,857 56 —5,913 
Energy supply costs— 599 328 518 — 69 585 2,099 — —2,099 
Operating expenses260 394 306 189 86 61 116 1,412 42 —1,454 
Depreciation and amortization204 175 56 155 131 48 101 870 6 —876 
Operating income 574 233 69 255 143 77 125 1,476 8 —1,484 
Other income, net36 26 27 16 3 2 12 122 11 —133 
Finance charges204 73 33 84 60 39 42 535 103 —638 
Income tax expense 96 26 14 40 5 4 14 199 (50)—149 
Net earnings 310 160 49 147 81 36 81 864 (34)—830 
Non-controlling interests57 — — — — — 9 66 — —66 
Preference share dividends— — — — — — — — 33 —33 
Net earnings attributable to common equity shareholders253 160 49 147 81 36 72 798 (67)—731 
Additions to property, plant and equipment and intangible assets600 368 156 239 301 62 208 1,934 2 —1,936 
As at June 30, 2023
Goodwill8,127 1,829 597 913 228 235 254 12,183 — —12,183 
Total assets23,838 12,303 5,105 8,587 5,718 2,625 4,993 63,169 941 (29)64,081 
v3.24.2
Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of Allowance for Credit Losses
The allowance for credit losses balance, which is recorded in accounts receivable and other current assets, changed as follows.

QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Balance, beginning of period(69)(59)(68)(58)
Credit loss expense(8)(3)(16)(11)
Credit loss deferral(9)(2)(20)(3)
Write-offs, net of recoveries17 4 36 12 
Foreign exchange— — (1)— 
Balance, end of period(69)(60)(69)(60)
v3.24.2
Regulatory Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Regulated Operations [Abstract]  
Schedule of Regulatory Assets
Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2023 Annual Financial Statements. A summary follows.
As at
June 30,December 31,
($ millions)
2024 2023 
Regulatory assets
Deferred income taxes 2,141 2,058 
Deferred energy management costs 532 521 
Rate stabilization and related accounts 492 521 
Employee future benefits 257 254 
Derivatives182 197 
Deferred lease costs 139 137 
Deferred restoration costs134 115 
Manufactured gas plant site remediation deferral 78 81 
Generation early retirement costs72 64 
Other regulatory assets 515 436 
Total regulatory assets4,542 4,384 
Less: Current portion(780)(866)
Long-term regulatory assets3,762 3,518 
Regulatory liabilities
Future cost of removal1,631 1,547 
Deferred income taxes1,291 1,280 
Employee future benefits292 294 
Rate stabilization and related accounts291 292 
Renewable energy surcharge129 129 
Alberta Electric System Operator charges deferral115 121 
Energy efficiency liability88 78 
Other regulatory liabilities236 217 
Total regulatory liabilities4,073 3,958 
Less: Current portion(607)(577)
Long-term regulatory liabilities3,466 3,381 
Schedule of Regulatory Liabilities
Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2023 Annual Financial Statements. A summary follows.
As at
June 30,December 31,
($ millions)
2024 2023 
Regulatory assets
Deferred income taxes 2,141 2,058 
Deferred energy management costs 532 521 
Rate stabilization and related accounts 492 521 
Employee future benefits 257 254 
Derivatives182 197 
Deferred lease costs 139 137 
Deferred restoration costs134 115 
Manufactured gas plant site remediation deferral 78 81 
Generation early retirement costs72 64 
Other regulatory assets 515 436 
Total regulatory assets4,542 4,384 
Less: Current portion(780)(866)
Long-term regulatory assets3,762 3,518 
Regulatory liabilities
Future cost of removal1,631 1,547 
Deferred income taxes1,291 1,280 
Employee future benefits292 294 
Rate stabilization and related accounts291 292 
Renewable energy surcharge129 129 
Alberta Electric System Operator charges deferral115 121 
Energy efficiency liability88 78 
Other regulatory liabilities236 217 
Total regulatory liabilities4,073 3,958 
Less: Current portion(607)(577)
Long-term regulatory liabilities3,466 3,381 
v3.24.2
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
As at
June 30,December 31,
($ millions)2024 2023 
Long-term debt29,474 28,131 
Credit facility borrowings 2,006 1,572 
Total long-term debt31,480 29,703 
Less: Deferred financing costs and debt discounts(179)(172)
Less: Current installments of long-term debt(2,630)(2,296)
28,671 27,235 

Significant Long-Term Debt IssuancesInterest
Year-to-date June 30, 2024MonthRateUse of
($ millions, except as noted)
Issued

(%)
MaturityAmountProceeds
ITC
Secured senior notesJanuary5.98 2034US85 
(1) (2) (3)
First mortgage bondsJanuary5.11 2029US75 
(1) (2) (3)
First mortgage bondsJanuary5.38 2034US75 
(1) (2) (3)
Unsecured senior notesMay5.65 2034US400 
(3) (4)
Central Hudson
Senior notesApril5.59 2031US25 
(1) (3)
Senior notesApril5.69 2034US35 
(1) (3)
FortisAlberta
Unsecured debenturesMay4.90 2054300 
(1) (2) (3) (4)
Caribbean Utilities
Unsecured senior notesMay6.17 2039US40 
(1) (2) (3) (5)
Unsecured senior notesMay6.37 2049US40 
(1) (2) (3) (5)
UNS Energy
Unsecured senior notesJune5.60 2036US30 
(1) (3)
(1)    Repay short-term and/or credit facility borrowings
(2)    Fund capital expenditures
(3)    General corporate purposes
(4)     Repay maturing long-term debt
(5)     Total of US$50 million expected to be used to fund or refinance a portfolio of new and/or existing qualifying green initiatives
Schedule of Credit Facilities
As at
Credit facilitiesRegulatedCorporateJune 30,December 31,
($ millions)Utilitiesand Other2024 2023 
Total credit facilities4,234 2,260 6,494 6,176 
Credit facilities utilized:
Short-term borrowings (1)
(68)— (68)(119)
Long-term debt (including current portion) (2)
(1,192)(814)(2,006)(1,572)
Letters of credit outstanding(55)(21)(76)(101)
Credit facilities unutilized2,919 1,425 4,344 4,384 
(1)    The weighted average interest rate was 7.3% (December 31, 2023 - 6.9%).
(2)    The weighted average interest rate was 5.7% (December 31, 2023 - 6.2%). The current portion was $1,610 million (December 31, 2023 - $1,160 million).
v3.24.2
Employee Future Benefits (Tables)
 6 Months Ended
Jun. 30, 2024
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs The net benefit cost is detailed below.
Defined Benefit
Pension Plans
OPEB Plans
($ millions)2024 2023 2024 2023 
Quarter ended June 30
Service costs19 16 6 6 
Interest costs40 40 8 7 
Expected return on plan assets(55)(50)(7)(5)
Amortization of actuarial gains— (3)(5)(5)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 2 1 1 
Net benefit cost3 4 3 3 
Year-to-date June 30
Service costs37 31 12 11 
Interest costs80 80 15 15 
Expected return on plan assets(110)(100)(13)(11)
Amortization of actuarial gains— (5)(9)(9)
Amortization of past service credits/plan amendments(1)(1)— (1)
Regulatory adjustments— 6 1 3 
Net benefit cost6 11 6 8 
v3.24.2
Other Income, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Schedule of Other Income, Net
QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Equity component, allowance for funds used during construction32 23 62 46 
Non-service component of net periodic benefit cost18 16 36 32 
Interest income (1)
16 18 32 34 
Equity income(1)2 4 7 
(Loss) gain on derivatives, net(1)3 (6)12 
Other1 2 10 2 
65 64 138 133 
(1)    Includes interest on short-term deposits, as well as interest on regulatory deferrals, including the PPFAC at TEP and UNSE
v3.24.2
Earnings Per Common Share (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Net Earnings to Common Shareholders
Diluted earnings per share ("EPS") was calculated using the treasury stock method for stock options.

20242023
Net EarningsWeightedNet EarningsWeighted
to CommonAverageto CommonAverage
ShareholdersSharesEPSShareholdersSharesEPS
($ millions)(# millions)($)($ millions)(# millions)($)
Quarter ended June 30
Basic EPS331 494.0 0.67 294 485.4 0.61 
Potential dilutive effect of stock options— 0.2 — 0.3 
Diluted EPS331 494.2 0.67 294 485.7 0.61 
Year-to-date June 30
Basic EPS790 492.8 1.60 731 484.3 1.51 
Potential dilutive effect of stock options— 0.4 — 0.3 
Diluted EPS790 493.2 1.60 731 484.6 1.51 
v3.24.2
Supplementary Cash Flow Information (Tables)
 6 Months Ended
Jun. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
Schedule of Supplementary Cash Flow Information
QuarterYear-to-Date
($ millions)2024 2023 2024 2023 
Periods ended June 30
Change in working capital
Accounts receivable and other current assets128 208 63 489 
Prepaid expenses(27)(19)(29)(19)
Inventories(44)(29)(14)62 
Regulatory assets - current portion42 164 134 160 
Accounts payable and other current liabilities(160)(132)(347)(537)
Regulatory liabilities - current portion17 25 18 22 
(44)217 (175)177 
Non-cash investing and financing activities
Accrued capital expenditures469 366 469 366 
Common share dividends reinvested107 102 218 205 
Contributions in aid of construction9 10 9 10 
v3.24.2
Fair Value of Financial Instruments and Risk Management (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Hierarchy
The following table presents assets and liabilities that are accounted for at fair value on a recurring basis.

($ millions)
Level 1 (1)
Level 2 (1)
Level 3 (1)
Total
As at June 30, 2024
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 57 — 57 
Energy contracts not subject to regulatory deferral (2)
— 40 — 40 
Other investments (4)
132 — — 132 
132 97 — 229 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (197)— (197)
Energy contracts not subject to regulatory deferral (5)
— (2)— (2)
Foreign exchange contracts, total return and cross-currency interest rate swaps (5)
— (24)— (24)
— (223)— (223)
As at December 31, 2023
Assets
Energy contracts subject to regulatory deferral (2) (3)
— 49 — 49 
Energy contracts not subject to regulatory deferral (2)
— 6 — 6 
Foreign exchange contracts (2)
— 5 — 5 
Other investments (4)
145 — — 145 
145 60 — 205 
Liabilities
Energy contracts subject to regulatory deferral (3) (5)
— (209)— (209)
Energy contracts not subject to regulatory deferral (5)
— (3)— (3)
Total return and cross-currency interest rate swaps (5)
— (6)— (6)
— (218)— (218)
(1)Under the hierarchy, fair value is determined using: (i) level 1 - unadjusted quoted prices in active markets; (ii) level 2 - other pricing inputs directly or indirectly observable in the marketplace; and (iii) level 3 - unobservable inputs, used when observable inputs are not available. Classifications reflect the lowest level of input that is significant to the fair value measurement.
(2)Included in accounts receivable and other current assets or other assets
(3)Unrealized gains and losses arising from changes in fair value of these contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates as permitted by the regulators, with the exception of long-term wholesale trading contracts and certain gas swap contracts.
(4)Included in cash and cash equivalents and other assets
(5)Included in accounts payable and other current liabilities or other liabilities
Derivative Asset Contracts Under Master Netting Agreements and Collateral Positions The following table presents the potential offset of counterparty netting.
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont'd)
Gross AmountCounterparty
Recognized inNetting ofCash Collateral
($ millions)Balance SheetEnergy ContractsPosted/(Received)Net Amount
As at June 30, 2024
Derivative assets97 (34)15 78 
Derivative liabilities(199)34 (10)(175)
As at December 31, 2023
Derivative assets55 (24)28 59 
Derivative liabilities(212)24 (1)(189)
Derivative Liability Contracts Under Master Netting Agreements and Collateral Positions The following table presents the potential offset of counterparty netting.
14. FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (cont'd)
Gross AmountCounterparty
Recognized inNetting ofCash Collateral
($ millions)Balance SheetEnergy ContractsPosted/(Received)Net Amount
As at June 30, 2024
Derivative assets97 (34)15 78 
Derivative liabilities(199)34 (10)(175)
As at December 31, 2023
Derivative assets55 (24)28 59 
Derivative liabilities(212)24 (1)(189)
Schedule of Volume of Derivative Activity
As at June 30, 2024, the Corporation had various energy contracts that will settle on various dates through 2029. The volumes related to electricity and natural gas derivatives are outlined below.
As at
June 30,December 31,
2024 2023 
Energy contracts subject to regulatory deferral (1)
Electricity swap contracts (GWh)
831 628 
Electricity power purchase contracts (GWh)
492 588 
Gas swap contracts (PJ)
247 228 
Gas supply contracts (PJ)
113 134 
Energy contracts not subject to regulatory deferral (1)
Wholesale trading contracts (GWh)
4,092 1,310 
Gas swap contracts (PJ)
2 3 
(1)GWh means gigawatt hours and PJ means petajoules.
v3.24.2
Description of Business - Regulated Utilities (Details)
Jun. 30, 2024
Wataynikaneyap Power Limited Partnership  
Public Utilities, General Disclosures [Line Items]  
Equity investment ownership (percent) 39.00%
Belize Electricity  
Public Utilities, General Disclosures [Line Items]  
Equity investment ownership (percent) 33.00%
ITC  
Public Utilities, General Disclosures [Line Items]  
Controlling ownership interest (percent) 80.10%
Noncontrolling ownership (percent) 19.90%
Caribbean Utilities  
Public Utilities, General Disclosures [Line Items]  
Controlling ownership interest (percent) 60.00%
v3.24.2
Regulatory Matters (Details) - Central Hudson - PSC - USD ($)
$ in Millions
 1 Months Ended 6 Months Ended
Jul. 31, 2024
Jun. 30, 2024
General Rate Application    
Public Utilities, General Disclosures [Line Items]    
Approved ROE   9.00%
Equity component of capital structure   48.00%
General Rate Application | Subsequent Event    
Public Utilities, General Disclosures [Line Items]    
Approved rate, period 1 year  
Approved ROE 9.50%  
Equity component of capital structure 48.00%  
CIS Implementation    
Public Utilities, General Disclosures [Line Items]    
Amount of disallowed costs   $ 63
Remaining costs   $ 4
v3.24.2
Segmented Information - Narrative (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Segment Reporting [Abstract]          
Related party transactions $ 0 $ 0 $ 0 $ 0  
Inter-segment loans $ 0   $ 0   $ 0
v3.24.2
Segmented Information - Information by Reportable Segment (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Segment Reporting Information [Line Items]          
Revenue $ 2,670 $ 2,594 $ 5,788 $ 5,913  
Energy supply costs 713 787 1,722 2,099  
Operating expenses 739 713 1,505 1,454  
Depreciation and amortization 480 440 947 876  
Operating income 738 654 1,614 1,484  
Other income, net 65 64 138 133  
Finance charges 347 323 683 638  
Income tax expense 69 49 170 149  
Net earnings 387 346 899 830  
Non-controlling interests 38 35 73 66  
Preference equity shareholders 18 17 36 33  
Net earnings attributable to common equity shareholders 331 294 790 731  
Additions to property, plant and equipment and intangible assets 1,112 982 2,225 1,936  
Goodwill 12,538 12,183 12,538 12,183 $ 12,184
Total assets 68,772 64,081 68,772 64,081 $ 65,920
Inter-segment eliminations          
Segment Reporting Information [Line Items]          
Revenue 0 0 0 0  
Energy supply costs 0 0 0 0  
Operating expenses 0 0 0 0  
Depreciation and amortization 0 0 0 0  
Operating income 0 0 0 0  
Other income, net 0 0 0 0  
Finance charges 0 0 0 0  
Income tax expense 0 0 0 0  
Net earnings 0 0 0 0  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 0 0 0 0  
Additions to property, plant and equipment and intangible assets 0 0 0 0  
Goodwill 0 0 0 0  
Total assets (42) (29) (42) (29)  
Regulated | Operating segments          
Segment Reporting Information [Line Items]          
Revenue 2,662 2,576 5,773 5,857  
Energy supply costs 713 787 1,722 2,099  
Operating expenses 732 695 1,483 1,412  
Depreciation and amortization 479 439 944 870  
Operating income 738 655 1,624 1,476  
Other income, net 67 62 142 122  
Finance charges 291 270 573 535  
Income tax expense 99 74 235 199  
Net earnings 415 373 958 864  
Non-controlling interests 38 35 73 66  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 377 338 885 798  
Additions to property, plant and equipment and intangible assets 1,111 982 2,223 1,934  
Goodwill 12,538 12,183 12,538 12,183  
Total assets 68,392 63,169 68,392 63,169  
Regulated | Operating segments | ITC          
Segment Reporting Information [Line Items]          
Revenue 556 519 1,106 1,038  
Energy supply costs 0 0 0 0  
Operating expenses 129 125 265 260  
Depreciation and amortization 111 103 220 204  
Operating income 316 291 621 574  
Other income, net 26 19 54 36  
Finance charges 120 105 233 204  
Income tax expense 51 49 102 96  
Net earnings 171 156 340 310  
Non-controlling interests 32 29 63 57  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 139 127 277 253  
Additions to property, plant and equipment and intangible assets 309 264 666 600  
Goodwill 8,395 8,127 8,395 8,127  
Total assets 25,437 23,838 25,437 23,838  
Regulated | Operating segments | UNS Energy          
Segment Reporting Information [Line Items]          
Revenue 710 661 1,465 1,401  
Energy supply costs 272 262 598 599  
Operating expenses 189 204 395 394  
Depreciation and amortization 101 88 199 175  
Operating income 148 107 273 233  
Other income, net 9 12 21 26  
Finance charges 37 37 72 73  
Income tax expense 16 12 30 26  
Net earnings 104 70 192 160  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 104 70 192 160  
Additions to property, plant and equipment and intangible assets 209 183 423 368  
Goodwill 1,890 1,829 1,890 1,829  
Total assets 13,454 12,303 13,454 12,303  
Regulated | Operating segments | Central Hudson          
Segment Reporting Information [Line Items]          
Revenue 303 317 678 759  
Energy supply costs 96 121 218 328  
Operating expenses 167 144 338 306  
Depreciation and amortization 31 28 61 56  
Operating income 9 24 61 69  
Other income, net 16 13 30 27  
Finance charges 18 15 36 33  
Income tax expense 2 5 13 14  
Net earnings 5 17 42 49  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 5 17 42 49  
Additions to property, plant and equipment and intangible assets 98 78 187 156  
Goodwill 617 597 617 597  
Total assets 5,637 5,105 5,637 5,105  
Regulated | Operating segments | FortisBC Energy          
Segment Reporting Information [Line Items]          
Revenue 336 362 897 1,117  
Energy supply costs 77 141 239 518  
Operating expenses 101 91 196 189  
Depreciation and amortization 84 78 168 155  
Operating income 74 52 294 255  
Other income, net 10 9 19 16  
Finance charges 39 43 78 84  
Income tax expense 13 (5) 57 40  
Net earnings 32 23 178 147  
Non-controlling interests 1 0 1 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 31 23 177 147  
Additions to property, plant and equipment and intangible assets 221 125 423 239  
Goodwill 913 913 913 913  
Total assets 9,612 8,587 9,612 8,587  
Regulated | Operating segments | FortisAlberta          
Segment Reporting Information [Line Items]          
Revenue 204 181 401 360  
Energy supply costs 0 0 0 0  
Operating expenses 50 44 97 86  
Depreciation and amortization 75 67 144 131  
Operating income 79 70 160 143  
Other income, net 3 3 5 3  
Finance charges 34 30 67 60  
Income tax expense 8 2 13 5  
Net earnings 40 41 85 81  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 40 41 85 81  
Additions to property, plant and equipment and intangible assets 135 182 263 301  
Goodwill 228 228 228 228  
Total assets 6,120 5,718 6,120 5,718  
Regulated | Operating segments | FortisBC Electric          
Segment Reporting Information [Line Items]          
Revenue 120 116 266 255  
Energy supply costs 21 22 70 69  
Operating expenses 34 31 67 61  
Depreciation and amortization 22 24 44 48  
Operating income 43 39 85 77  
Other income, net 1 1 3 2  
Finance charges 20 19 40 39  
Income tax expense 4 3 8 4  
Net earnings 20 18 40 36  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 20 18 40 36  
Additions to property, plant and equipment and intangible assets 33 35 60 62  
Goodwill 235 235 235 235  
Total assets 2,744 2,625 2,744 2,625  
Regulated | Operating segments | Other Electric          
Segment Reporting Information [Line Items]          
Revenue 433 420 960 927  
Energy supply costs 247 241 597 585  
Operating expenses 62 56 125 116  
Depreciation and amortization 55 51 108 101  
Operating income 69 72 130 125  
Other income, net 2 5 10 12  
Finance charges 23 21 47 42  
Income tax expense 5 8 12 14  
Net earnings 43 48 81 81  
Non-controlling interests 5 6 9 9  
Preference equity shareholders 0 0 0 0  
Net earnings attributable to common equity shareholders 38 42 72 72  
Additions to property, plant and equipment and intangible assets 106 115 201 208  
Goodwill 260 254 260 254  
Total assets 5,388 4,993 5,388 4,993  
Non-Regulated | Operating segments | Corporate and Other          
Segment Reporting Information [Line Items]          
Revenue 8 18 15 56  
Energy supply costs 0 0 0 0  
Operating expenses 7 18 22 42  
Depreciation and amortization 1 1 3 6  
Operating income 0 (1) (10) 8  
Other income, net (2) 2 (4) 11  
Finance charges 56 53 110 103  
Income tax expense (30) (25) (65) (50)  
Net earnings (28) (27) (59) (34)  
Non-controlling interests 0 0 0 0  
Preference equity shareholders 18 17 36 33  
Net earnings attributable to common equity shareholders (46) (44) (95) (67)  
Additions to property, plant and equipment and intangible assets 1 0 2 2  
Goodwill 0 0 0 0  
Total assets $ 422 $ 941 $ 422 $ 941  
v3.24.2
Allowance for Credit Losses (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Allowance for Credit Losses [Roll Forward]        
Beginning of period $ (69) $ (59) $ (68) $ (58)
Credit loss expense (8) (3) (16) (11)
Credit loss deferral (9) (2) (20) (3)
Write-offs, net of recoveries 17 4 36 12
Foreign exchange 0 0 (1) 0
End of period $ (69) $ (60) $ (69) $ (60)
v3.24.2
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Regulatory Assets [Line Items]    
Total regulatory assets $ 4,542 $ 4,384
Less: Current portion (780) (866)
Long-term regulatory assets 3,762 3,518
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 4,073 3,958
Less: Current portion (607) (577)
Long-term regulatory liabilities 3,466 3,381
Future cost of removal    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 1,631 1,547
Deferred income taxes    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 1,291 1,280
Employee future benefits    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 292 294
Rate stabilization and related accounts    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 291 292
Renewable energy surcharge    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 129 129
Alberta Electric System Operator charges deferral    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 115 121
Energy efficiency liability    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 88 78
Other    
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 236 217
Deferred income taxes    
Regulatory Assets [Line Items]    
Total regulatory assets 2,141 2,058
Deferred energy management costs    
Regulatory Assets [Line Items]    
Total regulatory assets 532 521
Rate stabilization and related accounts    
Regulatory Assets [Line Items]    
Total regulatory assets 492 521
Employee future benefits    
Regulatory Assets [Line Items]    
Total regulatory assets 257 254
Derivatives | Energy contracts subject to regulatory deferral    
Regulatory Assets [Line Items]    
Total regulatory assets 182 197
Regulatory Liabilities [Line Items]    
Total regulatory liabilities 42 37
Deferred lease costs    
Regulatory Assets [Line Items]    
Total regulatory assets 139 137
Deferred restoration costs    
Regulatory Assets [Line Items]    
Total regulatory assets 134 115
Manufactured gas plant site remediation deferral    
Regulatory Assets [Line Items]    
Total regulatory assets 78 81
Generation early retirement costs    
Regulatory Assets [Line Items]    
Total regulatory assets 72 64
Other    
Regulatory Assets [Line Items]    
Total regulatory assets $ 515 $ 436
v3.24.2
Long-Term Debt - Schedule of Long-Term Debt (Details) - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Long-term debt, excluding credit facility borrowings $ 29,474 $ 28,131
Long-term debt 31,480 29,703
Less: Deferred financing costs and debt discounts (179) (172)
Less: Current installments of long-term debt (2,630) (2,296)
Long-term debt (Note 7) 28,671 27,235
Credit facility    
Debt Instrument [Line Items]    
Less: Current installments of long-term debt (1,610) (1,160)
Credit facility | Long-term credit facility borrowings    
Debt Instrument [Line Items]    
Long-term debt $ 2,006 $ 1,572
v3.24.2
Long-Term Debt - Long-term Debt Issuances (Details)
$ in Millions, $ in Millions
 1 Months Ended
May 31, 2024
USD ($)
Jun. 30, 2024
USD ($)
May 31, 2024
CAD ($)
Apr. 30, 2024
USD ($)
Jan. 31, 2024
USD ($)
ITC | Secured | Secured senior notes, 2034 maturity          
Debt Instrument [Line Items]          
Interest rate         5.98%
Debt instrument, face amount         $ 85
ITC | Secured | First mortgage bonds, 2029 maturity          
Debt Instrument [Line Items]          
Interest rate         5.11%
Debt instrument, face amount         $ 75
ITC | Secured | First mortgage bonds, 2034 maturity          
Debt Instrument [Line Items]          
Interest rate         5.38%
Debt instrument, face amount         $ 75
ITC | Unsecured | Unsecured senior notes, 2034 maturity          
Debt Instrument [Line Items]          
Interest rate 5.65%   5.65%    
Debt instrument, face amount $ 400 $ 400      
Central Hudson | Secured | Senior notes, 2031 maturity          
Debt Instrument [Line Items]          
Interest rate       5.59%  
Debt instrument, face amount       $ 25  
Central Hudson | Secured | Senior notes, 2034 maturity          
Debt Instrument [Line Items]          
Interest rate       5.69%  
Debt instrument, face amount       $ 35  
FortisAlberta | Unsecured | Unsecured debentures, 2054 maturity          
Debt Instrument [Line Items]          
Interest rate 4.90%   4.90%    
Debt instrument, face amount     $ 300    
Caribbean Utilities | Unsecured          
Debt Instrument [Line Items]          
Proceeds from debt, allocated to green initiatives $ 50        
Caribbean Utilities | Unsecured | Unsecured senior notes, 2039 maturity          
Debt Instrument [Line Items]          
Interest rate 6.17%   6.17%    
Debt instrument, face amount $ 40        
Caribbean Utilities | Unsecured | Unsecured senior notes, 2049 maturity          
Debt Instrument [Line Items]          
Interest rate 6.37%   6.37%    
Debt instrument, face amount $ 40        
UNS Energy | Unsecured | Unsecured senior notes, 2036 maturity          
Debt Instrument [Line Items]          
Interest rate   5.60%      
Debt instrument, face amount   $ 30      
v3.24.2
Long-Term Debt - Narrative (Details)
$ in Millions, $ in Millions
 1 Months Ended 6 Months Ended
Nov. 30, 2022
CAD ($)
Jun. 30, 2024
CAD ($)
May 31, 2024
CAD ($)
May 31, 2024
USD ($)
Apr. 30, 2024
CAD ($)
Mar. 31, 2024
CAD ($)
Dec. 31, 2023
CAD ($)
Sep. 30, 2023
CAD ($)
Debt Instrument [Line Items]                
Short-form base shelf prospectus, life 25 months              
Short-form base shelf prospectus, principal amount, up to $ 2,000              
ATM Program, principal amount, maximum               $ 500
ATM Program, remaining amount available   $ 500            
Short-form base shelf prospectus, remaining amount available   1,500            
Maximum borrowing capacity   6,494         $ 6,176  
Unsecured committed revolving credit facilities | FortisBC Energy                
Debt Instrument [Line Items]                
Maximum borrowing capacity         $ 900 $ 700    
Unsecured committed revolving credit facilities | FortisBC Electric Inc.                
Debt Instrument [Line Items]                
Maximum borrowing capacity     $ 200   $ 150      
Unsecured committed revolving credit facilities | Corporate and other                
Debt Instrument [Line Items]                
Maximum borrowing capacity   $ 1,300            
Unsecured non-revolving facility | Corporate and other                
Debt Instrument [Line Items]                
Maximum borrowing capacity       $ 500        
No one bank | Bank concentration risk | Credit facility                
Debt Instrument [Line Items]                
Concentration risk percentage   20.00%            
Committed facilities with maturities ranging from 2024 through 2028                
Debt Instrument [Line Items]                
Maximum borrowing capacity   $ 6,000            
v3.24.2
Long-Term Debt - Schedule of Credit Facilities (Details) - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]    
Total credit facilities $ 6,494 $ 6,176
Credit facilities utilized:    
Short-term borrowings (68) (119)
Long-term debt (including current portion) (31,480) (29,703)
Letters of credit outstanding (76) (101)
Credit facilities unutilized 4,344 4,384
Current installments of long-term debt $ 2,630 $ 2,296
Credit facility    
Credit facilities utilized:    
Long-term debt (including current portion), weighted average interest rate (percent) 5.70% 6.20%
Current installments of long-term debt $ 1,610 $ 1,160
Credit facility    
Credit facilities utilized:    
Short-term borrowings $ (68) $ (119)
Short-term borrowings, weighted average interest rate (percent) 7.30% 6.90%
Credit facility    
Credit facilities utilized:    
Long-term debt (including current portion) $ (2,006) $ (1,572)
Regulated Utilities    
Line of Credit Facility [Line Items]    
Total credit facilities 4,234  
Credit facilities utilized:    
Letters of credit outstanding (55)  
Credit facilities unutilized 2,919  
Regulated Utilities | Credit facility    
Credit facilities utilized:    
Short-term borrowings (68)  
Regulated Utilities | Credit facility    
Credit facilities utilized:    
Long-term debt (including current portion) (1,192)  
Corporate and Other    
Line of Credit Facility [Line Items]    
Total credit facilities 2,260  
Credit facilities utilized:    
Letters of credit outstanding (21)  
Credit facilities unutilized 1,425  
Corporate and Other | Credit facility    
Credit facilities utilized:    
Short-term borrowings 0  
Corporate and Other | Credit facility    
Credit facilities utilized:    
Long-term debt (including current portion) $ (814)  
v3.24.2
Preference Shares (Details) - Series K Preferred Stock - $ / shares
Mar. 01, 2024
Feb. 29, 2024
Conversion of Stock [Line Items]    
Annual dividend (CAD per share) $ 1.3673 $ 0.9823
Preferred shares rate dividend term 5 years  
v3.24.2
Employee Future Benefits - Schedule of Net Benefit Costs (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Defined Benefit Pension Plans        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Service costs $ 19 $ 16 $ 37 $ 31
Interest costs 40 40 80 80
Expected return on plan assets (55) (50) (110) (100)
Amortization of actuarial gains 0 (3) 0 (5)
Amortization of past service credits/plan amendments (1) (1) (1) (1)
Regulatory adjustments 0 2 0 6
Net benefit cost 3 4 6 11
OPEB Plans        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]        
Service costs 6 6 12 11
Interest costs 8 7 15 15
Expected return on plan assets (7) (5) (13) (11)
Amortization of actuarial gains (5) (5) (9) (9)
Amortization of past service credits/plan amendments 0 (1) 0 (1)
Regulatory adjustments 1 1 1 3
Net benefit cost $ 3 $ 3 $ 6 $ 8
v3.24.2
Employee Future Benefits - Narrative (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Retirement Benefits [Abstract]        
Defined contribution plan cost recognized $ 14 $ 13 $ 31 $ 29
v3.24.2
Disposition (Details) - Disposal group, held-for-sale, not discontinued operations - Aitken creek disposal - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2023
Nov. 30, 2023
Schedule of Equity Method Investments [Line Items]      
Proceeds on disposition     $ 470
Earnings before tax, excluding the gain on disposition $ 3 $ 18  
v3.24.2
Other Income, Net (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Other Income and Expenses [Abstract]        
Equity component, allowance for funds used during construction $ 32 $ 23 $ 62 $ 46
Non-service component of net periodic benefit cost 18 16 36 32
Interest income 16 18 32 34
Equity income (1) 2 4 7
(Loss) gain on derivatives, net (1) 3 (6) 12
Other 1 2 10 2
Other income, net $ 65 $ 64 $ 138 $ 133
v3.24.2
Earnings Per Common Share - Schedule of Earnings Per Share (EPS) (Details) - CAD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Net Earnings to Common Shareholders        
Basic EPS $ 331 $ 294 $ 790 $ 731
Potential dilutive effect of stock options 0 0 0 0
Diluted EPS $ 331 $ 294 $ 790 $ 731
Weighted Average Shares        
Basic EPS (shares) 494.0 485.4 492.8 484.3
Potential dilutive effect of stock options (shares) 0.2 0.3 0.4 0.3
Diluted EPS (shares) 494.2 485.7 493.2 484.6
EPS        
Basic (CAD per share) $ 0.67 $ 0.61 $ 1.60 $ 1.51
Diluted (CAD per share) $ 0.67 $ 0.61 $ 1.60 $ 1.51
v3.24.2
Supplementary Cash Flow Information (Details) - CAD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Change in working capital        
Accounts receivable and other current assets $ 128 $ 208 $ 63 $ 489
Prepaid expenses (27) (19) (29) (19)
Inventories (44) (29) (14) 62
Regulatory assets - current portion 42 164 134 160
Accounts payable and other current liabilities (160) (132) (347) (537)
Regulatory liabilities - current portion 17 25 18 22
Changes in working capital (44) 217 (175) 177
Non-cash investing and financing activities        
Accrued capital expenditures 469 366 469 366
Common share dividends reinvested 107 102 218 205
Contributions in aid of construction $ 9 $ 10 $ 9 $ 10
v3.24.2
Fair Value of Financial Instruments and Risk Management - Derivative Narrative (Details)
$ in Millions, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
CAD ($)
Jun. 30, 2024
USD ($)
Jun. 30, 2023
CAD ($)
Jun. 30, 2024
CAD ($)
Jun. 30, 2023
CAD ($)
Jun. 30, 2024
USD ($)
May 31, 2024
USD ($)
Dec. 31, 2023
CAD ($)
Dec. 31, 2023
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Unrealized losses recognized in regulatory assets $ 4,542     $ 4,542       $ 4,384  
Unrealized gains recognized as regulatory liabilities 4,073     4,073       3,958  
Unrealized gains (losses) on investments 2   $ 1 $ 6 $ 3        
UNS Energy                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Realized gains, portion shared with customers (percent)       10.00%          
Corporate | Unsecured senior notes, 2029 maturity | Unsecured                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Debt instrument, face amount               $ 500  
Interest rate               4.43% 4.43%
ITC | Unsecured senior notes, 2034 maturity | Unsecured                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Debt instrument, face amount           $ 400 $ 400    
Interest rate             5.65%    
Energy contracts                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Unrealized gains (losses) on energy contracts 0   (8) $ 36 6        
Total return swaps | Corporate                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Notional amount 134     134          
Unrealized gains (losses) on derivatives (1)   (1) $ (4) 5        
Total return swaps | Corporate | Minimum                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Derivative terms       1 year          
Total return swaps | Corporate | Maximum                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Derivative terms       3 years          
Foreign exchange contracts | Corporate                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Notional amount 440     $ 440          
Unrealized gains (losses) on derivatives $ (2)   5 (5) 7        
Interest rate lock | ITC                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Notional amount           $ 300      
Realized loss recognized in other comprehensive income   $ 3              
Gain on derivative, reclassification adjustment period 5 years 5 years              
Cross-currency interest rate swap | Corporate                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Notional amount                 $ 391
Unrealized gains (losses) on derivatives $ (2)   $ 9 (15) $ 10        
Derivative interest rate               4.34% 4.34%
Derivative instruments | Energy contracts subject to regulatory deferral                  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]                  
Unrealized losses recognized in regulatory assets 182     182       $ 197  
Unrealized gains recognized as regulatory liabilities $ 42     $ 42       $ 37  
v3.24.2
Fair Value of Financial Instruments and Risk Management - Fair Value Hierarchy (Details) - Recurring - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Assets    
Other investments $ 132 $ 145
Total Assets 229 205
Liabilities    
Total Liabilities (223) (218)
Energy contracts subject to regulatory deferral    
Assets    
Derivative asset 57 49
Liabilities    
Derivative liability (197) (209)
Energy contracts not subject to regulatory deferral    
Assets    
Derivative asset 40 6
Liabilities    
Derivative liability (2) (3)
Foreign exchange contracts, total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability (24)  
Foreign exchange contracts    
Assets    
Derivative asset   5
Total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability   (6)
Level 1    
Assets    
Other investments 132 145
Total Assets 132 145
Liabilities    
Total Liabilities 0 0
Level 1 | Energy contracts subject to regulatory deferral    
Assets    
Derivative asset 0 0
Liabilities    
Derivative liability 0 0
Level 1 | Energy contracts not subject to regulatory deferral    
Assets    
Derivative asset 0 0
Liabilities    
Derivative liability 0 0
Level 1 | Foreign exchange contracts, total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability 0  
Level 1 | Foreign exchange contracts    
Assets    
Derivative asset   0
Level 1 | Total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability   0
Level 2    
Assets    
Other investments 0 0
Total Assets 97 60
Liabilities    
Total Liabilities (223) (218)
Level 2 | Energy contracts subject to regulatory deferral    
Assets    
Derivative asset 57 49
Liabilities    
Derivative liability (197) (209)
Level 2 | Energy contracts not subject to regulatory deferral    
Assets    
Derivative asset 40 6
Liabilities    
Derivative liability (2) (3)
Level 2 | Foreign exchange contracts, total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability (24)  
Level 2 | Foreign exchange contracts    
Assets    
Derivative asset   5
Level 2 | Total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability   (6)
Level 3    
Assets    
Other investments 0 0
Total Assets 0 0
Liabilities    
Total Liabilities 0 0
Level 3 | Energy contracts subject to regulatory deferral    
Assets    
Derivative asset 0 0
Liabilities    
Derivative liability 0 0
Level 3 | Energy contracts not subject to regulatory deferral    
Assets    
Derivative asset 0 0
Liabilities    
Derivative liability 0 0
Level 3 | Foreign exchange contracts, total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability $ 0  
Level 3 | Foreign exchange contracts    
Assets    
Derivative asset   0
Level 3 | Total return and cross-currency interest rate swaps    
Liabilities    
Derivative liability   $ 0
v3.24.2
Fair Value of Financial Instruments and Risk Management - Derivative Contracts Under Master Netting Agreements and Collateral Positions (Details) (Details) - Energy contracts - CAD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Derivative assets    
Gross Amount Recognized in Balance Sheet $ 97 $ 55
Counterparty Netting of Energy Contracts (34) (24)
Cash Collateral Received/Posted 15 28
Net Amount 78 59
Derivative liabilities    
Gross Amount Recognized in Balance Sheet (199) (212)
Counterparty Netting of Energy Contracts 34 24
Cash Collateral Received/Posted (10) (1)
Net Amount $ (175) $ (189)
v3.24.2
Fair Value of Financial Instruments and Risk Management - Volume of Derivative Activity (Details)
GJ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2024
GJ
GWh
Dec. 31, 2023
GWh
GJ
Electricity swap contracts, Energy contracts subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GWh 831 628
Electricity power purchase contracts, Energy contracts subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GWh 492 588
Gas swap contracts, Energy contracts subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GJ 247 228
Gas supply contract, Energy contracts subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GJ 113 134
Wholesale trading contracts, Energy contracts not subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GWh 4,092 1,310
Gas swap contracts, Energy Contracts not subject to regulatory deferral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Volume (gwh / gj) | GJ 2 3
v3.24.2
Fair Value of Financial Instruments and Risk Management - Credit Risk Narrative (Details) - CAD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]    
Uncollectible write-off deferral, exceed customer rate collected threshold 0.0010  
Value of derivative instruments in net liability positions $ 111 $ 117
Revenue | Three customers | Customer concentration risk | ITC    
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]    
Concentration risk percentage 70.00%  
v3.24.2
Fair Value of Financial Instruments and Risk Management - Foreign Exchange Hedge Narrative (Details) - Foreign net investments - USD ($)
$ in Billions
Jun. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unhedged foreign net investments $ 11.8 $ 11.5
Designated as hedging instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Long-term debt designated as an effective hedge $ 2.6 $ 2.6
v3.24.2
Fair Value of Financial Instruments and Risk Management - Financial Instruments Not Carried At Fair Value Narrative (Details) - CAD ($)
$ in Billions
Jun. 30, 2024
Dec. 31, 2023
Carrying value    
Debt Instrument [Line Items]    
Long-term debt, including current portion $ 31.5 $ 29.7
Estimated fair value    
Debt Instrument [Line Items]    
Long-term debt, including current portion $ 28.9 $ 27.9
v3.24.2
Commitments and Contingencies (Details)
Jun. 30, 2024
CAD ($)
FortisBC Holdings and Fortis | Claim related to pipeline rights  
Site Contingency [Line Items]  
Contingency accrual $ 0
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