Key Highlights

  • A five-year plan now stands at CAD 32.2 billion, CAD 3.4 billion more than before, and pushes projected rate base growth up 50 basis points to 7.5% annually.
  • Q3 2026 Earnings reached CAD 474 million, equal to CAD 0.92 per common share, and the year-to-date total came to CAD 1.4 billion, or CAD 2.69 a share.
  • The board approved a CAD 0.665 quarterly payout for the fourth quarter, a 4% lift that continues a run of 53 straight years of higher dividends.
  • Projected consolidated rate base rises from CAD 45 billion this year to roughly CAD 56 billion by 2029 and CAD 64 billion by 2031.

A CAD 32.2 Billion Blueprint Anchored by Transmission and LNG

Fortis (NYSE:FTS) hosted its third-quarter 2026 call on November 3, 2026, presenting a new five-year Capital outlook. Unless stated otherwise, amounts are in Canadian dollars. Management noted that about 75% of the plan flows to transmission and distribution and that the entire program is regulated. The largest increases are a CAD 1.7 billion uplift at ITC linked to MISO's Tranche 2.1 long-range transmission portfolio and a CAD 1 billion rise at FortisBC for LNG work at Tilbury, covering Phase 1B liquefaction expansion and a new storage tank. Investment in 2026 should reach about CAD 6 billion, CAD 400 million above plan, following CAD 4.2 billion spent so far this year.

Quarterly Earnings, the Arizona Rate Case and Data Center Demand

Reported third-quarter earnings were CAD 474 million. The year-ago period carried a CAD 0.06 per share tax and closing expense tied to the Fortis TCI sale, and adjusting for that, adjusted EPS grew CAD 0.05. ITC contributed CAD 0.03 from rate base growth, and the U.S. electric and gas unit added CAD 0.02. In Arizona, an administrative law judge proposed a 9.65% allowed Return on Equity for Tucson Electric Power, versus 9.55% today, with a 55% equity ratio. That proposal still needs commission sign-off, which management expects in late November, with new rates proposed from December 1. An approved agreement covers about 300 MW of data center load ramping from 2027, while ITC points to more than 10,000 MW of proposed load across its service area.

Hybrid Debt, Equity Issuance and the Risks to Execution

Funding relies mainly on Operating Cash Flow and regulated Utility debt. During the third quarter the company placed USD 1 billion of hybrid securities and roughly CAD 260 million of at-the-market equity, and it anticipates about CAD 250 million more over the coming 12 months, depending on market conditions. Issuing shares through the market adds to the share count, diluting per-share earnings unless profit grows alongside. Management aims for FFO to Debt above 12% on average. The Arizona outcome is still only a recommendation, large projects face permitting and approvals, and the Tilbury Phase 2 final investment decision remains open. No peer comparison appears in the transcript. Watch the commission vote and the pace of 2027 equity funding.

Where Things Stand

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