Fortis updates five-year outlook
Company to make capital investments of $14.5 billion from 2018-22
Fortis Inc. announced a new five-year capital investment plan and sizeable increase to it fourth-quarter common share dividend on Monday.
Between 2018 and 2022, the energy utility holding company will leverage $14.5 billion to focus on a mix of highly executable, low-risk projects.
It marks an increase of $1.5 billion over the 2016 plan and is projected to increase the consolidated rate base to approximately $32 billion in 2022.
The funds come from debt raised at the utilities, cash from operations and common equity from Fortis’ dividend reinvestment plan.
“The Corporation is focused on sustainable investment in its utilities. Our high-quality and diverse portfolio of utility businesses are driving lowrisk, visible growth,” president and CEO Barry Perry stated in a news release.
“We are focused on modernizing
our energy networks to handle the changes occurring in our industry while at the same time exceeding the expectations of our customers.
“Our development projects which are not included in the capital investment plan, and
our focus on pursuing additional opportunities in our service territories, would be additive to our five-year outlook providing potentially meaningful upside.”
As for the dividend, it marks 44 consecutive years of annual common share dividend payment
increases. The company attributes it to execution of the five-year plan, utility performance, service area growth and what it calls “the expectation of reasonable outcomes for regulatory proceedings.