# Fortis Inc. > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/fi/companies/Fortis Inc.). ## Overview 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. ## Products & services • Regulated electricity transmission and distribution • Regulated natural gas transmission and distribution • Utility service to residential and commercial customers • Industrial and municipal utility service • Grid, reliability, and infrastructure investment programs - **Electric utility operations** (70%) — Regulated transmission and distribution of electricity across Fortis' utility franchises. - **Gas utility operations** (25%) — Regulated natural gas transmission and distribution and related utility services. - **Other utility and corporate activities** (5%) — Smaller non-core activities and corporate items not directly tied to utility delivery. - Regulated electricity transmission and distribution - Regulated natural gas transmission and distribution - Utility service to residential and commercial customers - Industrial and municipal utility service - Grid, reliability, and infrastructure investment programs ## 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. - **Residential customers** (primary) — Households that buy regulated electricity and gas service for everyday energy needs. - **Commercial customers** (primary) — Retail, office, service, and institutional users that rely on distribution networks for ongoing operations. - **Industrial customers** (secondary) — Larger-load users that require dependable power and gas infrastructure for production and process energy. - **Municipal and public-sector customers** (secondary) — Cities, utilities, and public institutions served through regulated local networks and infrastructure. - Residential customers using electricity and gas for daily consumption - Commercial customers needing reliable utility service and network access - Industrial users with larger load and infrastructure requirements - Municipal and public-sector customers served in regulated territories - Customers in rate-regulated franchises where service reliability matters ## 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. - **Canada** (51%) - **United States** (45%) - **Caribbean** (4%) — Reported as the Caribbean in company disclosures; Cayman Islands are explicitly served. - Operations span five Canadian provinces and ten U.S. states - Caribbean utility operations add a smaller international exposure - Revenue is tied to regulated local service territories - Jurisdictional regulation affects allowed returns and investment plans - Weather, resilience, and load growth vary by region ## 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. - **Regulated capital investment** (medium-term) — Utility earnings are driven by rate-base growth and approved infrastructure spending. - **Grid reliability and resiliency** (medium-term) — Utilities must maintain service quality and reduce outage risk while adapting to weather and climate exposure. - **Load growth support** (medium-term) — Rising energy demand can justify new infrastructure and expand the regulated asset base. - **Low-carbon and gas infrastructure opportunities** (long-term) — Diversified utility assets can capture adjacent infrastructure spend within regulated frameworks. - Invest in regulated transmission and distribution infrastructure - Support customer load growth across utility territories - Modernize grids to improve reliability and service quality - Pursue resiliency and climate adaptation investments - Develop renewable gas and LNG infrastructure in British Columbia ## 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 risk** [high] — Utility revenues and returns depend on decisions by provincial, state, and federal regulators. - **Weather and storm exposure** [high] — Electric and gas networks are vulnerable to hurricanes, ice storms, heat events, and other severe weather. - **Capital project execution risk** [medium] — Transmission, distribution, and resiliency projects can face delays, overruns, or permitting challenges. - **Load-growth and demand risk** [medium] — Investment plans depend on sustained growth in customer load and electrification demand. - Regulatory outcomes can affect allowed returns and cost recovery - Storms and extreme weather can disrupt service and increase repair needs - Load-growth assumptions can change infrastructure demand and timing - Large capital programs carry execution and permitting risk - Multi-jurisdiction operations create regulatory complexity ## Accounting Fortis' accounting is shaped by regulated utility estimates, including the treatment of asset recovery, regulatory decisions, and depreciation of long-lived infrastructure. The company also uses lease and capitalized software judgments, and it is evaluating future expense-disaggregation requirements that may change how operating cost components are presented. - **Regulatory accounting estimates** — Can change recognized earnings and balance-sheet recoverability judgments - **Expense disaggregation** — Improves operating-cost transparency without changing underlying cash flows - **Internal-use software capitalization** — May shift spending between expense and capitalized assets - Regulatory estimates affect asset recovery and revenue recognition - Depreciation and amortization reflect long-lived utility asset lives - Expense disaggregation may change cost transparency in statements - Internal-use software capitalization affects assets and expenses - Utility estimates and judgments can move reported results materially --- *Last updated: 2026-09-28T12:03:40.303948+00:00*