Fortis Inc. (FTS): Business Model Canvas [Jan-2025 Mise à jour]

Dans le paysage dynamique des infrastructures énergétiques, Fortis Inc. (FTS) émerge comme une centrale, tissant de manière transparente de la production d'électricité, de la distribution du gaz naturel et des solutions énergétiques durables. Cette toile complète du modèle commercial révèle une approche stratégique qui transcende les cadres de services publics traditionnels, positionnant l'entreprise en tant qu'acteur pivot de l'écosystème énergétique en évolution de l'Amérique du Nord. Des partenariats robustes avec les gouvernements provinciaux aux technologies des énergies renouvelables de pointe, Fortis démontre un plan complexe qui équilibre la fiabilité, l'innovation et la gérance environnementale - invitant les lecteurs pour explorer les mécanismes sophistiqués derrière l'une des entreprises énergétiques les plus adaptatives du continent.

Fortis Inc. (FTS) - Modèle commercial: partenariats clés

Partenariats électriques avec les gouvernements provinciaux

Fortis Inc. maintient des partenariats stratégiques avec les gouvernements provinciaux du Canada, notamment:

Province	Détails du partenariat	Valeur d'investissement
Colombie-Britannique	Contacteurs de transmission hydroélectrique de la Colombie-Britannique	412 millions de dollars d'investissement dans l'infrastructure
Alberta	Collaboration de distribution d'électricité	287 millions de dollars de développement de réseau
Ontario	Projets d'interconnexion de la grille	Programme d'infrastructures conjointes de 203 millions de dollars

Fournisseurs de technologies d'énergie renouvelable

Fortis collabore avec les principaux partenaires de technologies renouvelables:

• Vestas Wind Systems A / S - Technologie des éoliennes
• First Solar Inc. - Fabrication de panneaux solaires
• Siemens Gamesa Renewable Energy - Solutions éoliennes offshore

Fabricants d'équipements d'infrastructure de grille

Fabricant	Type d'équipement	Valeur d'achat annuelle
Abb Ltd.	Transformateurs de transmission	156 millions de dollars
Schneider Electric	Systèmes d'appareillage et de contrôle	98 millions de dollars
Électrique générale	Équipement de surveillance de la grille	87 millions de dollars

Collaborateurs du réseau de distribution du gaz naturel

Les partenariats clés du réseau de gaz naturel comprennent:

• ATCO Gas - Alberta Distribution Network
• Fortisbc Energy Inc. - British Columbia Gas Infrastructure
• Terre-Neuve Power - Eastern Canada Gas Distribution

Cabinets de conseil en environnement et en durabilité

Cabinet de conseil	Domaine de mise au point	Valeur d'engagement
Deloitte Canada	Stratégie de durabilité	Contrat de conseil annuel de 2,3 millions de dollars
WSP Global Inc.	Évaluation de l'impact environnemental	Engagement annuel de 1,7 million de dollars
Aecom	Planification de la réduction du carbone	1,5 million de dollars de services de conseil

Fortis Inc. (FTS) - Modèle d'entreprise: activités clés

Génération d'électricité et transmission électrique

Fortis Inc. exploite environ 9 300 MW de capacité de production d'électricité dans plusieurs juridictions. Le portefeuille de génération de la société comprend:

Type de génération	Capacité (MW)	Pourcentage
Hydro-électrique	4,700	50.5%
Gaz naturel	3,100	33.3%
Autres renouvelables	1,500	16.2%

Distribution et transport du gaz naturel

Fortis dessert environ 1,3 million de clients de gaz naturel dans plusieurs régions, avec un vaste réseau de distribution couvrant 64 000 kilomètres.

Développement du projet d'énergie renouvelable

Investissement actuel des énergies renouvelables: 2,4 milliards de dollars, avec des investissements prévus ciblant:

• Extension de l'énergie éolienne
• Projets de génération solaire
• Technologies de stockage d'énergie

Maintenance et mises à niveau des infrastructures

Investissement annuel sur les infrastructures: 3,8 milliards de dollars, en se concentrant sur:

Catégorie d'infrastructure	Montant d'investissement
Lignes de transmission	1,2 milliard de dollars
Installations de génération	1,5 milliard de dollars
Réseaux de distribution	1,1 milliard de dollars

Compliance réglementaire et gestion des risques

Budget de conformité: 125 millions de dollars par an, couvrant:

• Exigences réglementaires environnementales
• Protocoles de sécurité
• Normes de fiabilité de la grille

Fortis Inc. (FTS) - Modèle d'entreprise: Ressources clés

Installations de production d'électricité étendues

Fortis Inc. exploite 10 services publics électriques à travers le Canada, les États-Unis et les Caraïbes, avec une capacité de génération totale de 5 501 mégawatts en 2022. Le portefeuille de génération comprend:

Type de génération	Capacité (MW)	Pourcentage
Hydro-électrique	3,135	57%
Gaz naturel	1,941	35%
Autres renouvelables	425	8%

Réseaux de distribution de gaz naturel

Fortis possède une vaste infrastructure de distribution de gaz naturel dans plusieurs régions:

• Dessert environ 1,3 million de clients de gaz naturel
• Exploite plus de 64 000 kilomètres de pipelines de gaz naturel
• Réseaux de distribution de gaz naturel en Colombie-Britannique, en Alberta et en Arizona

Ingénierie qualifiée et main-d'œuvre technique

En 2022, Fortis Inc. a employé 9 300 employés au total À travers ses opérations de services publics, avec une expertise significative dans:

• Génie électrique
• Gestion des infrastructures utilitaires
• Technologies d'énergie renouvelable
• Modernisation de la grille

Capital financier substantiel

Ressources financières à partir de 2022:

Métrique financière	Montant
Actif total	57,4 milliards de dollars
Total des capitaux propres	21,1 milliards de dollars
Dépenses en capital	4,1 milliards de dollars

Technologies avancées de gestion de l'énergie

Les investissements technologiques comprennent:

• Infrastructure de grille intelligente
• Systèmes de mesure avancés
• Plates-formes d'intégration d'énergie renouvelable
• Solutions de stockage d'énergie

Fortis Inc. (FTS) - Modèle d'entreprise: propositions de valeur

Approvisionnement énergétique fiable et cohérent

Fortis Inc. dessert environ 3,4 millions de clients dans plusieurs régions au Canada, aux États-Unis et aux Caraïbes. En 2023, la société maintient une base totale de taux d'utilité de 34,4 milliards de dollars.

Région	Clientèle	Infrastructure énergétique
Canada	1,2 million	Transmission électrique: 67 000 kilomètres
États-Unis	1,1 million	Distribution du gaz naturel: 62 000 kilomètres
Caraïbes	1,1 million	Capacité de production d'électricité: 3 000 MW

Solutions d'énergie de plus en plus durables et vertes

Fortis Inc. s'est engagé à réduire les émissions de gaz à effet de serre de 75% d'ici 2035 par rapport aux niveaux de 2019.

• Investissements en énergie renouvelable: 5,4 milliards de dollars prévus jusqu'en 2028
• Portfolio actuel des énergies renouvelables: 2,4 GW de production renouvelable
• Cible pour l'électricité sans carbone: 90% d'ici 2035

Prix ​​de la compétition des services publics

Les taux d'électricité résidentiel moyens pour les territoires de Fortis varient de 0,10 $ à 0,15 $ par kilowatt-heure, ce qui est compétitif avec les moyennes du marché régional.

Territoire des services publics	Taux résidentiel moyen	Revenus annuels
BC Hydro (Colombie-Britannique)	0,12 $ / kWh	2,3 milliards de dollars
Arizona Service public	0,14 $ / kWh	1,8 milliard de dollars

Infrastructure énergétique complète

Fortis Inc. opère dans 5 provinces canadiennes, 9 États américains et 3 pays des Caraïbes avec un actif total de 58,5 milliards de dollars en 2023.

• Opérations totales des services publics: 10 entreprises de services publics réglementés
• Lignes de transmission électrique: plus de 70 000 kilomètres
• Réseaux de distribution du gaz naturel: couvrant 165 communautés

Engagement envers la gestion de l'environnement

La société a alloué 22 milliards de dollars aux investissements en capital axés sur la transition d'énergie propre entre 2023-2028.

Catégorie d'investissement environnemental	Dépenses prévues	Année cible
Infrastructure d'énergie renouvelable	5,4 milliards de dollars	2028
Modernisation de la grille	8,9 milliards de dollars	2028
Technologies de réduction du carbone	7,7 milliards de dollars	2028

Fortis Inc. (FTS) - Modèle d'entreprise: relations clients

Contrats de services de services publics à long terme

Fortis Inc. maintient environ 1,4 million de clients d'électricité et 1,1 million de clients de gaz naturel dans plusieurs régions. La durée moyenne du contrat varie entre 3 et 5 ans avec des options de taux fixe.

Segment de clientèle	Durée du contrat	Valeur du contrat annuel
Clients résidentiels	3-5 ans	850 $ - 1 200 $ par ménage
Clients commerciaux	5-7 ans	5 000 $ à 25 000 $ par contrat

Plateformes de service client numérique

Fortis Inc. a investi 12,3 millions de dollars dans les infrastructures numériques en 2023 pour améliorer les capacités de service à la clientèle en ligne.

• Téléchargements d'applications mobiles: 345 000
• Utilisateurs de gestion des comptes en ligne: 782 000
• Temps de résolution d'interaction numérique moyen: 12 minutes

Facturation transparente et suivi de la consommation

Suivi de consommation d'énergie en temps réel disponible via des plates-formes numériques avec une évaluation de la précision du client de 98,7%.

Fonction de facturation	Taux d'adoption des clients
Paiement de facture en ligne	87%
Suivi de la consommation	76%

Programmes d'engagement communautaire

Fortis Inc. a alloué 4,2 millions de dollars aux programmes de durabilité et d'efficacité énergétique communautaires en 2023.

• Ateliers communautaires: 127 événements
• Programme d'efficacité énergétique Participants: 56 000
• Initiatives de réduction du carbone: 3 principaux programmes régionaux

Communication régulière sur l'efficacité énergétique

Budget de communication annuel de 1,7 million de dollars dédié à la sensibilisation à l'efficacité énergétique.

Canal de communication	Atteindre	Taux d'engagement
Envoyez des newsletters	892 000 abonnés	42%
Campagnes de médias sociaux	215 000 abonnés	33%

Fortis Inc. (FTS) - Modèle d'entreprise: canaux

Portails de service à la clientèle en ligne

Fortis exploite des plateformes numériques desservant 2,5 millions de clients à travers la Colombie-Britannique et l'Alberta. Le portail en ligne traite environ 1,2 million de transactions numériques par an, avec une cote de satisfaction du client de 92%.

Canal numérique	Statistiques d'utilisation
Utilisateurs enregistrés du portail Web	1,4 million
Transactions en ligne annuelles	1,200,000
Téléchargements d'applications mobiles	675,000

Applications mobiles

L'application mobile Fortis prend en charge 675 000 utilisateurs actifs, permettant le suivi de la consommation d'énergie en temps réel et la gestion des factures.

Centres de service client physique

Fortis maintient 22 centres de services physiques à travers la Colombie-Britannique et l'Alberta, desservant environ 300 000 interactions client en personne par an.

Emplacement du centre de service	Interactions annuelles du client
Centres de la Colombie-Britannique	12
Centres de l'Alberta	10
Interactions annuelles totales	300,000

Communications de facturation directes

Fortis traite 2,3 millions de déclarations de facturation mensuelles, avec 68% livré électroniquement et 32% par courrier traditionnel.

Méthode de communication de facturation	Pourcentage
Facturation électronique	68%
Facturation de courrier papier	32%

Événements de sensibilisation et d'éducation communautaires

Fortis organise 120 événements d'engagement communautaire par an, atteignant environ 45 000 personnes dans des territoires de service.

• Ateliers de conservation de l'énergie
• Programmes éducatifs scolaires
• Séminaires de durabilité communautaire

Fortis Inc. (FTS) - Modèle d'entreprise: segments de clientèle

Consommateurs d'électricité résidentielle

Fortis Inc. dessert environ 1,3 million de clients d'électricité dans plusieurs régions au Canada et aux États-Unis.

Région	Nombre de clients résidentiels	Consommation annuelle moyenne (kWh)
Colombie-Britannique	495,000	8,760
Alberta	270,000	7,200
Arizona	535,000	12,240

Utilisateurs d'énergie commerciale et industrielle

Fortis dessert 54 000 clients commerciaux et industriels dans ses territoires de service.

• Le secteur commercial représente 22% des ventes d'énergie totales
• Le secteur industriel représente 18% de la consommation totale d'énergie
• Dépenses énergétiques annuelles moyennes: 325 000 $ par client commercial

Entités municipales et gouvernementales

Fortis fournit des services énergétiques à 620 clients municipaux et gouvernementaux.

Type de client	Nombre de clients	Consommation d'énergie annuelle (MWH)
Municipalités	385	1,250,000
Installations gouvernementales	235	750,000

Clients de l'énergie agricole

Fortis dessert 3 750 clients agricoles principalement en Colombie-Britannique et en Alberta.

• Consommation annuelle moyenne d'énergie: 85 000 kWh par client agricole
• Ventes totales d'énergie agricole: 318,75 millions de kWh par an
• L'irrigation et les opérations agricoles représentent les besoins énergétiques primaires

Clients à grande échelle d'énergie industrielle

Fortis fournit des services énergétiques à 215 clients industriels à grande échelle.

Secteur de l'industrie	Nombre de clients	Consommation d'énergie annuelle (MWH)
Exploitation minière	45	2,700,000
Fabrication	85	3,400,000
Pétrole et gaz	85	3,000,000

Fortis Inc. (FTS) - Modèle d'entreprise: Structure des coûts

Maintenance d'infrastructure de production d'électricité

Au cours de l'exercice 2022, Fortis Inc. a déclaré des frais de maintenance des infrastructures de 384,2 millions de dollars. La rupture des coûts de maintenance comprend:

Type d'infrastructure	Coût de maintenance
Systèmes de transmission électrique	156,7 millions de dollars
Répartition du gaz naturel	112,3 millions de dollars
Infrastructure d'énergie renouvelable	115,2 millions de dollars

Coûts d'approvisionnement en carburant

Fortis Inc. a dépensé 612,5 millions de dollars pour l'approvisionnement en carburant en 2022, avec l'allocation suivante:

• Aachat de gaz naturel: 342,8 millions de dollars
• Procurement de charbon: 189,7 millions de dollars
• Sources de carburant d'énergie renouvelable: 80 millions de dollars

Compensation et formation des employés

Les dépenses totales liées aux employés pour Fortis Inc. en 2022 étaient de 487,6 millions de dollars:

Catégorie de dépenses	Montant
Salaires de base	312,4 millions de dollars
Avantages et pension	105,2 millions de dollars
Formation et développement	70 millions de dollars

Frais de conformité réglementaire

Fortis Inc. alloué 214,3 millions de dollars pour la conformité réglementaire en 2022, notamment:

• Conformité environnementale: 87,6 millions de dollars
• Adhésion au règlement sur la sécurité: 63,5 millions de dollars
• Licence et permis: 63,2 millions de dollars

Mises à niveau de la technologie et des infrastructures

La technologie et l'investissement des infrastructures pour Fortis Inc. en 2022 ont totalisé 523,7 millions de dollars:

Catégorie de mise à niveau	Montant d'investissement
Technologie de grille intelligente	187,4 millions de dollars
Améliorations de la cybersécurité	112,6 millions de dollars
Infrastructure numérique	223,7 millions de dollars

Fortis Inc. (FTS) - Modèle d'entreprise: Strots de revenus

Frais de transmission d'électricité

Au cours de l'exercice 2023, Fortis Inc. a généré des revenus de transmission d'électricité de 2,88 milliards de dollars dans ses opérations de services publics réglementées dans plusieurs juridictions.

Juridiction	Revenus de transmission (USD)
Colombie-Britannique	987 millions de dollars
Alberta	642 millions de dollars
Arizona	536 millions de dollars
Autres régions	715 millions de dollars

Frais de distribution du gaz naturel

Les revenus de distribution du gaz naturel pour Fortis Inc. ont atteint 1,45 milliard de dollars en 2023, avec des segments de marché clés, notamment:

• Clients résidentiels: 612 millions de dollars
• Clients commerciaux: 458 millions de dollars
• Clients industriels: 380 millions de dollars

Investissements du projet d'énergie renouvelable

Les rendements des investissements en énergies renouvelables ont totalisé 325 millions de dollars en 2023, avec la rupture suivante:

Source renouvelable	Return d'investissement (USD)
Projets solaires	142 millions de dollars
Énergie éolienne	108 millions de dollars
Hydro-électrique	75 millions de dollars

Trading d'énergie et opérations du marché

Les revenus de négociation énergétique pour Fortis Inc. en 2023 étaient de 276 millions de dollars, avec des segments de marché primaires:

• Trading en gros de l'électricité: 186 millions de dollars
• Instruments financiers dérivés: 90 millions de dollars

Contrats et incitations énergétiques du gouvernement

Les revenus énergétiques liés au gouvernement en 2023 s'élevaient à 215 millions de dollars, notamment:

• Incitations aux énergies renouvelables: 95 millions de dollars
• Contrats de modernisation de la grille: 78 millions de dollars
• Remboursements du programme d'efficacité énergétique: 42 millions de dollars

Fortis Inc. (FTS) - Canvas Business Model: Value Propositions

You're looking at the core promises Fortis Inc. makes to its investors and customers, which are deeply rooted in the stability of its regulated assets. Honestly, for a utility, the value proposition is all about predictability and commitment.

Highly reliable, low-risk energy delivery from a diversified utility portfolio.

Fortis Inc. anchors its value on being a diversified leader in the North American regulated electric and gas utility space. This structure means revenue streams are generally stable, backed by long-term contracts. As of September 30, 2025, the Corporation reported total assets of $75 billion. The portfolio is heavily weighted toward the low-risk transmission and distribution side, with 93% of assets falling into these categories. You're looking at service to 3.5 million utility customers across five Canadian provinces, ten U.S. states, and the Caribbean. The regulated growth is clear: the midyear rate base is projected to increase from $41.9 billion in 2025 to $57.9 billion by 2030, representing a 7.0% annual growth rate.

Here's a quick look at the scale and growth underpinning this stability:

Metric	Value / Period	Source Year/Period
Total Assets	$75 billion	Q3 2025
2025 Capital Expenditures Forecast	Approximately $5.6 billion	2025
2026-2030 Capital Plan Total	$28.8 billion	2026-2030
Rate Base Growth (Annualized)	7.0%	2025 to 2030

Predictable, long-term dividend growth, targeting 4-6% annually through 2030.

This is perhaps the most concrete promise Fortis Inc. makes. The company has an incredible track record, having increased its common share dividend for 51 consecutive years as of late 2024, and the guidance has been extended to support increases through 2030. Management explicitly supports an annual dividend growth guidance of 4% to 6% annually through 2030. The latest announced increase in the fourth quarter was 4.1%. At the time of reporting, the stock offered a dividend yield of about 3.5%. This commitment is directly funded by the execution of their long-term capital plan.

Commitment to a coal-free generation mix by 2032 for cleaner energy.

Fortis Inc. is defintely moving its generation mix toward cleaner sources. The primary utility driving this is Tucson Electric Power (TEP), which is committed to achieving a coal-free generation mix by 2032. TEP is actively converting 793 MW of coal-fired generation to natural gas generation, with this conversion expected to be complete by 2030. For context, renewable generation surpassed coal generation for the first time in 2024. Overall, Fortis has reduced its corporate-wide direct greenhouse gas (GHG) emissions by 34% from a 2019 base year.

The cleaner energy transition involves specific investments and progress metrics:

• GHG emissions reduction target: 50% by 2030 from 2019 levels.
• TEP developing a 200 MW energy storage system.
• TEP capability to store 800 MWh of energy in the new system.
• FortisBC's 2030 Renewable Natural Gas (RNG) supply target.

Grid resiliency and security investments to minimize service disruptions.

Minimizing service disruptions is built into the capital deployment strategy. The $28.8 billion capital plan for 2026-2030 explicitly includes 'grid resiliency and climate adaptation investments'. This focus is also seen in the prior 2025-2029 plan, which included resiliency investments at ITC Holdings Corp.. The 2025 capital expenditure forecast of approximately $5.6 billion is driven in part by higher transmission investments at ITC. Furthermore, investments in infrastructure reliability and resiliency upgrades are a key component of the overall capital allocation, which also includes investments in cleaner energy infrastructure across their service territories.

Fortis Inc. (FTS) - Canvas Business Model: Customer Relationships

You're looking at how Fortis Inc. (FTS) manages its relationships with its 3.5 million utility customers across 10 regulated utilities in Canada, the U.S., and the Caribbean as of late 2025. The core of this relationship is stability, locked in by regulatory agreements.

Long-term, stable relationships governed by regulatory frameworks.

The relationship is fundamentally defined by the regulatory environment, which provides a predictable structure for service and investment. For instance, the British Columbia Utilities Commission issued a decision on FortisBC's rate framework for 2025 through 2027, which includes a prescribed approach for operating expenses and capital investments, offering clarity for the next three-year period. Similarly, at Tucson Electric Power (TEP), a general rate application was filed in June 2025 seeking new rates effective in 2026, incorporating an annual rate adjustment mechanism. Central Hudson's joint proposal reflects a three-year rate plan with retroactive application to July 1, 2025, maintaining a 9.5% allowed Return on Equity (ROE) and a 48% common equity component of the capital structure. This regulatory stability underpins the long-term commitment to shareholders, evidenced by Fortis Inc.'s 51 consecutive years of dividend increases, with current guidance targeting 4-6% annual dividend growth through 2029. Reliability is a key metric here; Fortis achieved top quartile performance in 2024, delivering energy to customers 99.9% of the time.

Fortis Inc. manages customer cost pressures by focusing on efficiency; controllable operating costs per customer increased by approximately 2.8% annually over the past five years, which is below inflation for that period.

Metric/Jurisdiction	Value/Detail	Period/Date
Total Utility Customers Served	3.5 million	As at Q3 2025
Total Regulated Utilities	10	Canada, U.S., and Caribbean
FortisBC Allowed ROE (Current Rate Plan)	9.5%	2025-2027 Framework
Dividend Growth Guidance (Annual)	4-6%	Through 2029
Consecutive Years of Dividend Increases	51	As of 2024/2025 reporting
Electricity Reliability (Top Quartile)	99.9% uptime	2024

Digital customer service platforms for billing and outage reporting.

Fortis' utilities are actively enhancing customer information systems and adopting digital technologies, including Artificial Intelligence (AI), to modernize customer engagement. This involves advancing new and modern approaches to how customers interact with the utility for routine tasks like billing and accessing support. While specific adoption rates for digital billing or outage reporting platforms aren't published, the strategic direction points toward increased self-service capabilities.

• Enhancing customer information systems.
• Adopting digital technologies, including AI.
• Advancing new approaches to customer engagement.

Proactive engagement on energy efficiency and demand-side management programs.

Proactive engagement focuses on helping customers manage consumption and supports broader climate goals. FortisBC, for example, made a record combined annual investment of around $172 million in 2024, split between gas programs at close to $159 million and electricity programs at almost $14 million. Over the five years spanning 2020 to 2024, FortisBC invested more than $630 million in these conservation and energy-efficiency programs.

The results from 2024 show tangible customer impact:

• Gas programs lowered annual use by more than 1.6 million gigajoules (GJ), equivalent to about 15,700 homes.
• Electricity programs lowered annual use by 34.1 GWh, enough to power over 2,700 homes.
• FortisBC gas programs reduced carbon dioxide equivalent (tCO2e) by close to one million tonnes in 2024.

Overall, Fortis has made consistent progress toward decarbonization, achieving a 34% reduction in scope 1 greenhouse gas (GHG) emissions through 2024 compared to 2019 levels. Still, energy delivered to customers is rising; electricity deliveries increased 9% and natural gas deliveries increased 6% over the last five years.

Direct negotiations with large, new customers like data center developers.

Significant future load growth is being managed through direct negotiation, driven by demand from data centers, manufacturing, and electrification. At TEP, an agreement was advanced to provide approximately 300 MW of power capacity to a data center, which is subject to Arizona Corporation Commission (ACC) approval. The initial phase of this data center project is expected to be operational as early as 2027. Furthermore, ITC is planning a transmission upgrade to serve up to 1,600 megawatts (MW) of new data center load at the Big Cedar Industrial Center in Iowa. ITC also sees potential for an additional 5 gigawatts of load growth from proposed data center and economic projects that are currently in preliminary stages. Negotiations are also ongoing at TEP for capacity to support another multi-phase data center development.

Fortis Inc. (FTS) - Canvas Business Model: Channels

You're looking at how Fortis Inc. gets its regulated energy services-electricity and natural gas-to the people and businesses that need them. It's a mix of physical infrastructure and modern digital touchpoints, all managed through its operating subsidiaries.

The primary channel is the physical network itself, which is the core of Fortis Inc.'s business. This involves the direct ownership and operation of extensive electric and gas transmission and distribution lines across its service territories.

Asset Type	Metric	Latest Reported Value	Context/Date
Electricity T&D Lines	Total Kilometres (All Utilities)	186,700 km	2024 Data
Gas T&D Lines	Total Kilometres (All Utilities)	185,300 km	2024 Data
Total Utility Customers	Electricity and Gas Customers Served	3.5 million	As at December 31, 2024
FortisBC Gas/Electric Lines	Gas Transmission and Distribution Lines	51,700 km	FortisBC Specific
FortisBC Electric Lines	Electricity Transmission and Distribution Power Lines	7,350 km	FortisBC Specific

Service delivery is executed through its local utility subsidiaries, each acting as the direct interface with customers in their specific regulated regions. These subsidiaries manage the day-to-day operations and regulatory compliance for their customer bases.

• FortisBC serves nearly 1.3 million customers across 135 B.C. communities and 58 First Nations communities.
• TEP (Tucson Electric Power) is actively securing large load growth, including an agreement to provide ~300 MW to a data center.
• ITC Holdings Corp. operates under a Cost of Service model with an estimated 10.77-11.41% ROE on 60% equity.
• Fortis Inc. serves utility customers in five Canadian provinces, ten U.S. states and the Caribbean.

For customer interaction and service, Fortis Inc. relies on digital channels. You can expect to use online portals and mobile applications for account management, billing, and service requests, though specific 2025 user metrics aren't publically detailed in the latest reports. Still, the overall customer base accessing these systems is substantial.

Direct sales efforts are focused on securing and managing large commercial and industrial (C&I) load growth, which is a key driver for capital investment, especially at subsidiaries like TEP and ITC. This segment shows tangible growth through the utility portfolio.

Commercial and industrial (C&I) sales were up 6% across the portfolio of utilities during the third quarter of 2025. For instance, ITC has prospective data-center/customer connections totaling approximately 8 GW that could support future growth.

Finance: draft 13-week cash view by Friday.

Fortis Inc. (FTS) - Canvas Business Model: Customer Segments

You're looking at the core of Fortis Inc.'s regulated business: the sheer volume and diversity of the end-users relying on their energy delivery systems. As of late 2025, Fortis Inc. is a massive utility operator, backed by $75 billion in total assets as at September 30, 2025, and supported by 9,600 employees.

The primary customer base is geographically diverse, spanning regulated jurisdictions across North America. This diversity is a key risk mitigator for you as an analyst.

The segments served include:

• Residential customers across five Canadian provinces and ten U.S. states.
• Commercial and industrial customers requiring stable, high-capacity power.
• Large-scale, high-growth users like data centers and manufacturing facilities.

The total utility customer count is substantial, sitting at approximately 3.5 million utility customers served across the electric and gas networks.

Here's a quick look at the scale of operations feeding these segments:

Metric	Value as of Late 2025	Source Context Date
Total Utility Customers Served	3.5 million	Q3 2025 / Q2 2025
Geographic Jurisdictions (Provinces/States)	15 (5 Canadian Provinces + 10 U.S. States)	Q3 2025 / Q2 2025
Employees	9,600	Q3 2025

While the majority of the customer base is residential and general commercial, Fortis Inc. is actively positioning for high-growth industrial users. For instance, the utility ITC Holdings Corp. shows a specific concentration risk, where approximately 65% of its revenue is derived from just three customers who maintain investment-grade credit ratings. This concentration highlights a specific, high-capacity segment within the broader customer base. Also, future load growth is explicitly tied to opportunities in sectors like data centers and manufacturing.

The company's strategy focuses on serving these customers reliably, with Fortis achieving top quartile reliability performance in 2024, delivering energy 99.9% of the time.

Fortis Inc. (FTS) - Canvas Business Model: Cost Structure

You're looking at the major outflows for Fortis Inc. (FTS) as of late 2025; it's all about maintaining and growing that massive regulated asset base. The cost structure is heavily weighted toward long-term investment and the fixed costs of running the grid.

Capital Expenditures

The commitment to infrastructure is the single largest cost driver you'll see here. Fortis Inc. expected capital expenditures for the full year 2025 to land around $5.6 billion. This spending is what fuels the rate base growth you're tracking. Furthermore, the company unveiled a new, larger five-year capital plan spanning 2026 through 2030, totaling $28.8 billion, which is an increase of $2.8 billion over the prior plan. This investment focus is heavily weighted toward regulated assets, with transmission making up about 46% and distribution about 31% of that record investment.

Operating Costs

Operating costs cover the day-to-day running of the system-keeping the lights on and the gas flowing safely. This includes everything from the wages for your 9,600 employees across North America to the preventative maintenance schedules that keep regulatory risk low. For the quarter ending September 2025, Fortis Inc. reported Operating Expenses of CAD 2.07B. To give you a clearer picture of the components that feed into that total, here's a look at some of the reported figures from a recent period:

Expense Category	Reported Amount (CAD)	Period/Context
Operating Expenses	2.07B	Quarter ending September 2025
Energy Supply Costs	1.754B	A recent fiscal period
Depreciation and Amortization	1.027B	A recent fiscal period
Cost of Natural Gas (FortisBC)	220M	Quarter ended March 31, 2025 (Expense)

Honestly, keeping those labor and material costs in check while executing a huge capital plan is always the tightrope walk for utility management.

Financing Costs

Since Fortis Inc. is funding its growth primarily through regulated returns and debt, financing costs are a critical component. The new 2026-2030 capital plan is structured to be funded with approximately 30% coming from net debt. You saw higher holding company finance costs noted as an offset to earnings in Q2 2025. For the quarter ending September 2025, the reported Interest Expense on Debt was CAD 370M. This interest expense is directly tied to the regulated debt that underpins a significant portion of their asset base.

Purchased Power and Fuel

This category covers the direct costs associated with the energy Fortis Inc. procures or generates to meet customer demand, though management often separates some of these costs when measuring core operating efficiency. For instance, FortisBC, which generates power from hydroelectric facilities, also purchases a portion of its requirements through contracts and the wholesale market. As a concrete example of fuel cost, FortisBC reported Cost of natural gas expenses of $220 million for the quarter ended March 31, 2025. You should keep an eye on how the transition away from coal-fired generation at TEP, aiming for a coal-free mix by 2032, might shift these fuel procurement costs going forward.

Fortis Inc. (FTS) - Canvas Business Model: Revenue Streams

You're looking at how Fortis Inc. actually brings in the money, which, for a utility giant like this, is pretty straightforward but deeply regulated. The core of the business is collecting money from customers for delivering electricity and natural gas across North America and the Caribbean.

The primary engine for revenue is the regulated utility rates and tariffs approved by various commissions. This isn't a free market; regulators set what Fortis Inc. can charge. For instance, in British Columbia, the BCUC approved a rate framework for FortisBC covering 2025 through 2027, which includes a prescribed approach for operating expenses and capital investments. To be fair, this stability is what investors like about utilities. Also, in the US, Tucson Electric Power (TEP) filed a general rate application in June 2025 requesting new rates effective September 1, 2026, which included a net increase in retail revenue of about US$172 million.

Next up is the Return on Equity (ROE) earned on the growing regulated asset base. This is how Fortis Inc. makes money on its investments in pipes and wires. The asset base itself is expanding nicely; the five-year capital plan projects the midyear rate base growing from $41.9 billion in 2025 to $57.9 billion by 2030, representing a 7.0% annual growth rate. The return they get on that base is set by regulators. For example, for the period covered in the Q2 2025 results, the allowed ROE for FortisBC was 9.65 percent, based on a deemed equity component of 41 percent of the capital structure. You should note that in 2024, a reduction in the MISO base ROE unfavorably impacted earnings, showing that even the allowed return can be a point of contention.

We also need to talk about the Allowance for Funds Used During Construction (AFUDC) from major projects. This is essentially interest income Fortis Inc. gets on the money it spends building new assets before those assets are officially put into service and start earning a regulated return on rate base. It helps fund construction without taking on immediate external debt interest costs. For FortisBC specifically, their 2025 projected capital expenditures were about $187 million, and that figure was inclusive of AFUDC. That's a concrete example of how AFUDC flows through the capital program.

Here's a quick look at the top-line revenue and the growth driver metrics we just discussed. It really grounds the discussion, you know?

Metric	Value	Period/Context
Total Revenue	$12 billion	2024 Annual Figure
Projected Rate Base (2030)	$57.9 billion	End of 2030 Projection
Rate Base CAGR (2025-2030)	7.0%	Annual Growth Rate
Allowed ROE Example	9.65 percent	FortisBC Allowed ROE (Q2 2025 basis)
2024 Capital Expenditures	$5.2 billion	Total Company Spend

The Total revenue for 2024 was approximately $12 billion. That's the big number that all these regulated returns and construction accruals feed into. The company is focused on extending its track record, targeting annual dividend growth of 4-6% through 2029, which is directly supported by this predictable, rate-regulated revenue stream.

The revenue sources are pretty clear, and they rely heavily on regulatory approvals:

• Regulated tariffs for electric and gas service delivery.
• Allowed return on the growing regulated asset base.
• AFUDC earned on ongoing capital projects.
• Revenue growth driven by rate base expansion.

If onboarding takes 14+ days, churn risk rises-similarly, if regulatory lag is too long, the ROE realization gets delayed, which is a defintely near-term risk for the business.

Finance: draft 13-week cash view by Friday.