Key Highlights

  • The new five-year Capital plan totals CAD 32.2 billion, which is CAD 3.4 billion above the prior plan, and lifts expected rate base growth to 7.5% a year, up 50 basis points.
  • Third-quarter 2026 Earnings were CAD 474 million, or CAD 0.92 per common share, while year-to-date earnings were CAD 1.4 billion, or CAD 2.69 per share.
  • The board declared a fourth-quarter Dividend of CAD 0.665 per share, a 4% increase that marks 53 consecutive years of dividend increases.
  • Consolidated rate base is projected to rise from CAD 45 billion in 2026 to about CAD 56 billion in 2029 and CAD 64 billion in 2031.

A CAD 32.2 Billion Plan Led by Transmission and LNG

Fortis (NYSE:FTS) held its third-quarter 2026 call on November 3, 2026, alongside its new five-year capital outlook. Unless noted, figures are in Canadian dollars. Management said about 75% of the plan goes to transmission and distribution, and that it is entirely regulated. The increase is driven mainly by a CAD 1.7 billion rise at ITC, tied to MISO's Tranche 2.1 long-range transmission plan, and a CAD 1 billion rise at FortisBC for LNG work at Tilbury, including the Phase 1B liquefaction expansion and a new storage tank. The company expects to invest about CAD 6 billion in 2026, CAD 400 million more than planned, after CAD 4.2 billion year to date.

Quarterly Earnings, Arizona Rate Case and Data Center Demand

Reported third-quarter earnings were CAD 474 million. The 2025 comparison included a CAD 0.06 per share tax and closing cost on the Fortis TCI sale, and excluding that, adjusted EPS rose CAD 0.05. ITC added CAD 0.03 on rate base growth, and the U.S. electric and gas segment added CAD 0.02. In Arizona, an administrative law judge recommended an allowed Return on Equity of 9.65% for Tucson Electric Power, against 9.55% now, with a 55% equity share. The recommendation needs commission approval, which management expects later in November, with new rates proposed from December 1. An approved agreement covers about 300 MW of data center load starting to ramp in 2027, while ITC cites over 10,000 MW of proposed load across its territory.

Funding the Plan: Hybrids, Equity Issuance and Execution Risks

Funding comes mainly from Operating Cash Flow and regulated Utility debt. In the third quarter the company issued USD 1 billion of hybrids and about CAD 260 million of at-the-market equity, and it expects roughly CAD 250 million more at-the-market equity over the next 12 months, subject to markets. At-the-market issuance adds shares, which dilutes per-share earnings unless earnings grow with them. Management targets FFO to Debt above 12% on average. The Arizona order remains a recommendation, large projects face permitting and approvals, and the Tilbury Phase 2 final Investment decision is still pending. The transcript offers no peer comparison. Watch the commission vote and the 2027 equity funding pace.

Where Things Stand

The plan is large mainly because transmission and LNG projects are expanding, not because of one unusual quarter. Fortis (NYSE:FTS) is lifting capital spending by CAD 3.4 billion, targeting 7.5% annual rate base growth and extending its 4% to 6% dividend growth guidance through 2031. Regulated returns give visibility, but they depend on rate approvals, financing and execution. The key near-term events are the Arizona commission decision, expected later in November, and how much equity the company issues to fund growth.