Fortis Inc.
Fortis Inc. is a North American regulated electric and gas utility holding company with operations in Canada, the United States, and the Caribbean. Through its utility subsidiaries, it owns and operates transmission and distribution networks that deliver electricity and natural gas to residential, commercial, and industrial customers.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRegulated transmission and distribution of electricity across Fortis' utility franchises.
Regulated natural gas transmission and distribution and related utility services.
Smaller non-core activities and corporate items not directly tied to utility delivery.
Customers
Fortis serves utility customers across regulated service territories, with end users including households, businesses, and industrial operators. Its revenues are largely driven by customer demand within rate-regulated territories rather than discretionary purchasing behavior. Public utilities, municipalities, and large commercial and industrial users depend on Fortis' networks for dependable electric and gas service.
Households that buy regulated electricity and gas service for everyday energy needs.
Retail, office, service, and institutional users that rely on distribution networks for ongoing operations.
Larger-load users that require dependable power and gas infrastructure for production and process energy.
Cities, utilities, and public institutions served through regulated local networks and infrastructure.
Strategy
Fortis focuses on regulated capital investment in transmission, distribution, and system reliability across its utility franchises. Its strategic direction centers on supporting customer load growth, modernizing grids, and expanding infrastructure that can be recovered through regulatory frameworks.
Utility earnings are driven by rate-base growth and approved infrastructure spending.
Utilities must maintain service quality and reduce outage risk while adapting to weather and climate exposure.
Rising energy demand can justify new infrastructure and expand the regulated asset base.
Diversified utility assets can capture adjacent infrastructure spend within regulated frameworks.
Geography
Fortis operates across five Canadian provinces, ten U.S. states, and the Caribbean, with utility assets embedded in local regulated service territories. Geography matters because earnings depend on each jurisdiction's regulatory framework, allowed returns, and capital investment opportunities. The company's footprint also exposes it to weather, storm hardening, and regional load-growth trends across North American markets.
Risks
Fortis is exposed to regulatory, weather, and capital-allocation risk because most of its earnings depend on rate cases, approved returns, and execution of large utility projects. It also faces typical utility risks such as storm damage, load uncertainty, changing power demand, and evolving environmental and safety requirements across multiple jurisdictions.
- Regulatory approval riskImpact: HighLikelihood: High
Utility revenues and returns depend on decisions by provincial, state, and federal regulators.
Exposure - Weather and storm exposureImpact: HighLikelihood: High
Electric and gas networks are vulnerable to hurricanes, ice storms, heat events, and other severe weather.
Exposure: Service territories across North America and the Caribbean
- Capital project execution riskImpact: MediumLikelihood: Medium
Transmission, distribution, and resiliency projects can face delays, overruns, or permitting challenges.
Exposure: Grid modernization and infrastructure investment programs
- Load-growth and demand riskImpact: MediumLikelihood: Medium
Investment plans depend on sustained growth in customer load and electrification demand.
Exposure: Utility planning and future rate-base growth
Accounting
Judgemental itemsManagement must estimate outcomes tied to regulatory decisions that affect assets, liabilities, revenues, and contingencies.
Impact: Can change recognized earnings and balance-sheet recoverability judgments
ASU 2024-03 will require more detailed disclosure of energy supply costs, operating expenses, and depreciation.
Impact: Improves operating-cost transparency without changing underlying cash flows
ASU 2025-06 changes when software development costs are capitalized and how they are disclosed.
Impact: May shift spending between expense and capitalized assets
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Last updated: 28/09/2026