Q3 2025 Fortis Inc Earnings Call

November 4, 2025

Signal, an operator by pressing Star then zero.

Betsy Operator: Should you need assistance during the conference call, you may signal an operator by pressing Star then zero. I would now like to turn the conference over to Stephanie Amaimo, Vice President, Investor Relations. Please go ahead.

Operator: Should you need assistance during the conference call, you may signal an operator by pressing Star then zero. I would now like to turn the conference over to Stephanie Amaimo, Vice President, Investor Relations. Please go ahead.

I would now like to turn the conference over to Stephanie Amo, Vice President Investor Relations. Please go ahead.

Thanks, Betsy and good morning, everyone welcome to afford us as third quarter 2025 results and new five year capital outlook Conference call I'm joined by David Hutchens, President and CEO, Jocelyn Perry Executive VP and CFO. Other members of the senior management team as well as Ceos from certain subsidiaries before we begin today's.

Amaya Operator: Thanks, Betsy. Good morning, everyone. Welcome to Fortis' Q3 2025 Results and New Five-Year Capital Outlook Conference Call. I'm joined by David Hutchens, President and CEO, Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries. Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow. Actual results can differ materially from the forecast projections included in the forward-looking information presented today. Non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our Q3 2025 MD&A. Also, unless otherwise specified, all financial information references in Canadian dollars. With that, I will turn the call over to David.

Stephanie Amaimo: Thanks, Betsy. Good morning, everyone. Welcome to Fortis' Q3 2025 Results and New Five-Year Capital Outlook Conference Call. I'm joined by David Hutchens, President and CEO, Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries. Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow. Actual results can differ materially from the forecast projections included in the forward-looking information presented today. Non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our Q3 2025 MD&A. Also, unless otherwise specified, all financial information references in Canadian dollars. With that, I will turn the call over to David.

Thank you for standing by. This is Betsy the conference operator.

Carl I wanted to remind you that the discussion will include forward looking information, which is subject to the cautionary statement contained in the supporting slide show.

David Hutchens: I like your optimism, Maurice, but there's a lot of wood to chop between here and there, right? So we have to get the agreements done with these counterparties. We obviously have to have the ability to build the infrastructure that's needed in the timeline that they want. So all those things are definitely possibilities, but still getting the generation sited, getting things in the queue, all of those pieces, and most importantly, getting these customers to sign up for all the protections that we want for us from a credit perspective, and for our customers from a rate perspective, and then going through the regulatory process. There's just a lot of steps between here and there, specifically around the data centers. And then also for the storage tank in BC, still have to go through the EA process there.

Welcome to the Fortis Inc, third quarter, 2025 earnings and new 5-year Capitol Outlook conference call.

Actual results can differ materially from the forecast projections included in the forward looking information presented today non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U S. GAAP financial measures in our third quarter 2025 M. DNA also unless otherwise specified all financial information references in Canadian.

As a reminder, all participants are in a listen-only mode. And the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

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With that I will turn the call over to David.

Thank you and good morning, everyone.

I would now like to turn the conference over to Stephanie ammo. Vice president investor relations. Please go ahead.

We are proud to announce another solid quarter marked by strong execution and momentum from our regulated growth strategy.

David Hutchens: Thank you and good morning, everyone. Today, we are proud to announce another solid quarter marked by strong execution and momentum from our regulated growth strategy. Operationally, we continue to deliver safe and reliable service to our customers, and through September, our utilities invested CAD 4.2 billion in our systems. For the full year, we expect to invest approximately CAD 5.6 billion. Financially, we delivered adjusted earnings per share for Q3 of 87 cents. In September, we completed the sale of FortisTCI. The sale strengthens our balance sheet and reduces our risk profile. More recently, we entered into an agreement to sell our investments in Belize, including the non-regulated hydro generation facilities to the government of Belize. I'm happy to announce that the transition closed last Friday and that Fortis is now comprised of 100% regulated assets.

Operationally, we continued to deliver safe and reliable service to our customers and through September our utilities invested $4 2 billion and our systems for the full year, we expect to invest approximately $5 6 billion.

David Hutchens: So we obviously are very excited and bullish on these projects as much as we can be, but as you know, we don't drop those things into our capital plan until we have signatures on the dotted line. And we'll keep you posted as those negotiations go and once we reach agreements with some of those third parties.

Thanks Betsy and good morning, everyone. Welcome to fortes', third quarter, 2025 results, and new 5-year, Capitol Outlook conference call. I'm joined by David Hutchins, president and CEO Jocelyn Perry, executive VP, and CFO other members of the senior management team as well as CEO from certain subsidiaries.

Financially, we delivered adjusted earnings per share for the third quarter of 87.

In September we completed the sale of Florida TCR.

Before we begin today's call, I want to remind you that the discussion will include forward-looking information which is subject to the cautionary statement. Contained in the supporting slideshow,

The sale strengthens our balance sheet and reduces our risk profile.

More recently, we entered into an agreement to sell our investments and believes including the nonregulated hydro generation facilities to the government of beliefs I am happy to announce that the transition closed last Friday and that Florida is now comprised of 100% regulated assets.

Maurice Choy: Understood. I think I should finish off with a question on the funding plan on slide 17, where there was a mention about the balance of equity funding to be satisfied from, among others, asset sales. Obviously, you've sold a number of things here, Turks and Caicos, as well as Fortis Belize and Belize Electricity, and also Aitken Creek Gas Storage in the past. So you're 100% regulated right now, as you mentioned. Thoughts on what else might be worth trimming, optimizing, or do you feel like this is no longer an avenue that's worth exploring?

Actual results can differ materially from the forecast, projections included in the forward-looking information. Presented, today non-gaap Financial measures reference in a prepared. Remarks are reconciled to the related US gaap Financial measures in our third quarter, 2025 mdna also, unless otherwise specified, all financial information references in Canadian dollars with that, I will turn the call over to David.

We recognize these were long held assets in the Florida as family and we wish our best to the teams in Turks and Caicos and believes as they continue to serve their customers and communities.

Thank you and good morning everyone.

David Hutchens: We recognize these were long-held assets in the Fortis family, and we wish our best to the teams in Turks and Caicos and Belize as they continue to serve their customers and communities. Today, we are pleased to unveil our 5-year capital plan and announce that our board of directors has declared a Q4 dividend increase of approximately 4%. Our new CAD 28.8 billion 5-year capital plan is up CAD 2.8 billion compared to the prior plan. This supports rate-based growth of 7% and annual dividend growth guidance of 4% to 6% through 2030. This new plan was developed with a strong emphasis on maintaining customer affordability. We prioritize capital investments that provide cost savings that flow through to our customers.

Today, we are proud to announce another solid quarter marked by strong execution and momentum from our regulated growth strategy.

And today, we are pleased to unveil our five year capital plan and announced that our board of directors has declared a fourth quarter dividend increase of approximately 4%.

Our customers and through September, our utilities invested 4.2 billion in our systems. For the full year, we expect to invest approximately 5.6 billion.

David Hutchens: Yeah. So we're focused mostly on executing that five-year capital plan and that laundry list of additional opportunities above and beyond the plan that we just went through. So there is no read-through from the transactions that we just completed. Our portfolio is a great portfolio, and we do have 100% of our assets being regulated now. So that's not, when you read that sentence, that was looking back, not forward. So that's how we look at funding. Our capital plan is clearly laid out by that funding plan on the slide. And I'd reiterate that. The DRIP is the only source. We don't have any discrete equity in there. So the DRIP's the only source of equity. We have the ATM and hot standby, but that's not needed in the current capital plan process.

Our new $28 8 billion five year capital plan is up $2 8 billion compared to the prior plan.

Financially, we delivered adjusted earnings per share for the third quarter of 87 cents.

This supports rate base growth of 7% and annual dividend growth guidance of 4% to 6% through 2030.

In September, we completed the sale of forest TCI.

The sales strengthens our balance sheet and reduces our risk profile.

This new plan was developed with a strong emphasis on maintaining customer affordability.

<unk> capital investments that provide cost savings that flowed through to our customers.

more recently, we entered into an agreement to sell our investments in beliefs, including the non-regulated hydrogen generation facilities to the government of biz

This includes the coal to natural gas conversion at the Springerville generating station in Arizona, which is more economical compared to the new energy resources included in the prior plan.

David Hutchens: This includes the coal to natural gas conversion at the Springerville Generating Station in Arizona, which is more economical compared to the new energy resources included in the prior plan. Our utilities are also continuing to manage operating costs by finding efficiencies through innovation and process improvements. As you can see on the slide, the growth in our five-year plan is largely driven by higher transmission investments. At ITC, the CAD 2 billion increase was primarily driven by new interconnections, including the Big Cedar Load Expansion Project, as well as the MISO Long-Range Transmission Plan and Baseline Reliability projects. At UNS, transmission and distribution investments increased CAD 1 billion, with FERC-regulated transmission making up CAD 700 million of the increase. This was largely attributed to a new transmission line at TEP.

I'm happy to announce that the transition closed last Friday and that for this is now comprised of 100% regulated assets.

Our utilities are also continuing to manage operating costs by finding efficiencies through innovation and process improvement.

We've recognized, these were long-held Assets in the Florida's family and we wish our best to the teams in Turks and cacos and Biz as they continue to serve their customers and communities.

As you can see on the slide the growth in our five year plan is largely driven driven by higher transmission investments at.

And today, we are pleased to unveil our 5-year, Capital plan, and announce that our board of directors has declared a fourth quarter dividend, increase of approximately 4%.

At ITC, the $2 billion increase was primarily driven by new interconnections, including the big Cedar load expansion project as well as the MISO long range transmission plan and baseline reliability projects.

Maurice Choy: That's great. Kyle, thank you very much.

David Hutchens: You're welcome.

Operator: The next question comes from Rob Hope with Scotiabank. Please go ahead.

Our new 28.8 billion. 5-year Capital plan is up 2.8 billion compared to the prior plan.

Maurice Choy: Morning, everyone, and good to see the update on the capital plan. Maybe to follow up on the US $1.5 to $2 billion in new generation in Arizona, can you maybe help us understand kind of the timing of when this capital could be secured, just understanding that a lot of these items have relatively long lead times and when they could be in service?

Unf's transmission and distribution investments increased $1 billion with FERC regulated transmission, making up $700 million of the increase this was largely attributed to a new transmission line at TEP.

This supports rate-based growth of 7% and annual dividend growth. Guidance of 4 to 6% through 2030.

This new plan was developed with a strong emphasis on maintaining customer affordability.

We prioritize Capital Investments, that provide cost savings that flow through to our customers.

Generation investments at <unk> were reduced by $900 million driven primarily by the planned conversion of the springerville generating station to natural gas, which I spoke to previously.

David Hutchens: Generation investments at UNS were reduced by $900 million, driven primarily by the planned conversion of the Springerville Generating Station to natural gas, which I spoke to previously. The remaining increase is driven by growth at our other regulated utilities and a higher assumed foreign exchange rate. The new plan is highly executable, with approximately 77% directed towards transmission and distribution investments and critical infrastructure that drives stable, predictable returns. The capital program is low risk and anchored in 100% regulated projects and includes only 11 major capital projects representing 21% of the plan. Consolidated rate base is expected to increase by $16 billion from approximately $42 billion in 2025 to $58 billion in 2030, supporting average annual rate base growth of 7%. This is up 50 basis points from the 6.5% in the prior plan.

David Hutchens: Yeah. So if you ask the customers who are asking for this, it's pretty much tomorrow is when they want it. But obviously, it takes time to build data centers. It takes time for us to get the siting and permitting. And of course, building additional generation, you're going to have to get in the queue for combustion turbines or combined cycles, whatever the resource portfolio requires. But it's also kind of not fully defined at this point where you can look at things that are available. As I mentioned in my prepared remarks, we expect this to be a mix of different energy resources, including battery storage, which can happen pretty quick. Renewables, of course, which can supply a good chunk of energy. And then you look at what the best capacity resource, whether that's a combustion turbine or a combined cycle, depending on the load features.

This includes the cold to natural gas conversion at the Springville Generating Station in Arizona which is more economical compared to the new energy, resources and included in the prior plan.

The remaining increase was driven by growth at our other regulated utilities and a higher assumed foreign exchange rates.

Our utilities are also continuing to manage operating costs by finding efficiencies through Innovation and process improvements.

The new plan is highly executable with approximately 77% directed towards transmission and distribution investments and critical infrastructure that drives stable predictable returns.

As you can see on the slide, the growth in our 5-year plan, is largely driven by driven by higher transmission Investments.

The capital program is low risk and anchored in 100% regulated projects and includes only 11 major capital projects, representing 21% of the plan.

At ITC. The 2 billion dollar increase was primarily driven by new interconnections including the Big Cedar load Expansion Project as well as the MSO long-range transmission plan and Baseline reliability projects.

Consolidated rate base is expected to increase by 16 billion from approximately $42 billion in 2000 $25 billion to $58 billion in 2030 supporting average annual rate base growth of 7%. This is up 50 basis points from the six 5% in the prior plan.

At ins transmission and distribution Investments increase 1 billion dollars with ferc regulated transmission, making up 700 million of the increase. This was largely attributed to a new transmission, line at tep.

David Hutchens: So I still think that when you look at longer term, like the current timeline that we have with the project in Arizona for the first 300MW, is there looking to be online in 2027 and ramping up over the next year or so after that. So I would expect other timelines to be similar to that. But when we look at our plan that goes all the way to 2030. Depending on availability of, say, combustion turbines, which would probably be the critical lead item on that. We still think that that's doable to get that done in that next five-year time period.

Now I will take a few minutes to dig a little deeper into our larger utility capital plans.

Generation Investments at ins were reduced by 900 million driven, primarily by the planned, conversion of the Springerville Generating Station to natural gas, which I spoke to previously.

David Hutchens: Now it'll take a few minutes to dig a little deeper into our larger utility capital plans. ITC's capital plan of $9.8 billion is the largest in the company's history and supports strong rate base growth of 8%, up 100 basis points compared to the prior plan. Key elements of ITC's plan includes investments for base infrastructure, MISO's Long-Range Transmission Plan, customer connections, and grid security. Significant opportunities above and beyond the base plan exist at ITC, including approximately $3.3 to 3.8 billion post-2030 for Tranche 2.1 projects assigned through Right of First Refusal. Work is also underway at ITC to evaluate projects within the Tranche 2.1 portfolio that are subject to the competitive bidding process. If any of these projects are awarded to ITC, it would be incremental to ITC's plan.

<unk> capital plan of $9 8 billion as our largest in the company's history and support strong rate base growth of 8% up 100 basis points compared to the prior plan.

The remaining increases driven by growth at our other regulated utilities and a higher assumed foreign exchange rate.

Key elements of Itc's plan includes investments or base infrastructure MISO is long range transmission plan customer connections and grid security.

The new plan is highly executable with approximately 77% directed towards transmission and and, and distribution Investments and critical infrastructure that drives stable predictable returns

Significant opportunities above and beyond the base plan exists that ITC, including approximately three three to $3 eight U S billion U S dollars post 2030 for tranche two one projects assigned to rights of first refusal.

The capital program is low risk and anchored in 100% regulated projects and includes only 11 major capital projects representing 21% of the plan.

Maurice Choy: All right. Great. And then maybe take a look at ITC. So you mentioned that there's 8GW of potential growth associated with data centers, and you have big cedar in hand. Can you maybe add a little bit of color on how many opportunities you're looking at for that 8GW, as well as, could we see some sanctioning in the next 12 months?

Work is also underway at ITC to evaluate projects within the tranche two one portfolio that are subject to the competitive bidding process.

Any of these projects are awarded to ITC would be incremental to Itc's plan.

Consolidated rate, bases expected to increase by 16 billion from approximately 42 billion in 2025 to 58 billion. In 2030 supporting average annual rate based growth of 7%. This is a 50 basis points from the 6.5% in the prior plan.

Other avenues of growth at ITC include customer connections associated with associated with over 8000 megawatts of load growth for proposed Datacenters economic development projects in various stages of development across their footprint. This is up 3000 megawatts just since last quarter.

David Hutchens: Other avenues of growth at ITC include customer connections associated with over 8,000 megawatts of load growth for proposed data centers and economic development projects in various stages of development across their footprint. This is up 3,000 megawatts just since last quarter. ITC may also realize future opportunities associated with the ongoing MISO LRTP process. All in all, it's a very exciting time at ITC with a significant transmission build-out. Let's now turn to UNS Energy. Their capital plan of 5.6 billion supports average annual rate base growth of approximately 7%. As a vertically integrated utility, investments are spread across the value chain. Notably, a third of the capital plan is concentrated in transmission, with the balance consisting of generation and distribution investments.

Now, it'll take a few minutes to dig a little deeper into our larger utility Capital plans.

David Hutchens: Yeah. I'll turn that over to Linda to give some details, but I will remind folks on the call that our three largest customers are DTE, CMS, and Alliance. So I'm sure you've seen some of the conversations in those earnings calls as it relates to some of this development as well. So Linda, I'll turn it over to you.

Itc's Capital plan of 9.8 billion is the largest in the company's history and support strong rate, based growth of 8% up. 100 basis points compared to the prior plan.

<unk> may also realize future opportunities associated with the ongoing MISO <unk> process.

All in all it's a very exciting time at ITC with significant transmission buildout.

T elements of itc's plan, includes Investments for base infrastructure, mso's long-range transmission Plan, customer connections and grid security.

Stephanie Amaimo: Great. Thank you, Dave, and thanks for the question, Rob. Yes, certainly the 8GW that certainly we are. We have sort of insight into in terms of those conversations with customers. Ongoing planning studies to accommodate them. Certainly, we remain hopeful. I would say there's a lot of activity. We're working closely, as Dave mentioned, with our customers. I mean, we're really not in a position to really say or identify just sort of from a timeline perspective. I think what we can say is that we continue to see that queue of those prospective data center or other economic development projects continue to grow. So we remain hopeful and optimistic that we will continue to see further announcements. But really, at this point in time, it's premature for us to speculate on which projects, where, or exactly when.

Let's now turn to you on our synergy their capital plan of $5 6 billion supports average annual rate base growth of approximately 7%.

As a vertically integrated utility investments are spread across the value chain, notably a third of the capital plan is concentrated in transmission with the balance consisting of generation and distribution investments.

Significant opportunities above and beyond the base plan existed ITC including approximately 3.3 to 3.8 us billion US Dollars. Post 2030 for tranche 2.1 projects assigned through rights of first refusal.

<unk> generation includes the coal to natural gas conversion of 800 megawatts at the Springerville generating station, which is aligned with Tep's exit from coal by 2032 as well as the Black Mountain generation project at <unk> Electric.

Work is also underway at ITC to evaluate projects within the Tron. 2.1, portfolio that are subject to the competitive bidding process. If any of these projects are awarded to ITC, would be incremental to itc's plan.

David Hutchens: Regulated generation includes the coal to natural gas conversion of 800MW at the Springerville Generating Station, which is aligned with TEP's exit from coal by 2032, as well as the Black Mountain Generation Project at UNS Electric. While there's no new generation reflected in the plan associated with data centers or other large load growth, a new era of demand is approaching with a significant interconnection queue. As we discussed last quarter, TEP reached an energy supply agreement to serve a demand of approximately 300 MW that starts to ramp up in 2027 and will use existing and planned capacity. The agreement awaits ACC approval as well as other contractual contingencies. Negotiations are actively ongoing for an incremental 300 MW of capacity to support a full build-out of 600 MW at this initial site.

Well there is no new generation reflected in the plan associated with data centers or other large load growth a new era of demand is approaching with a significant interconnection queue as.

Other avenues of growth at ITC include customer, connections associated with associated with over 8,000, megawatts of load growth for proposed data centers, and economic development projects in various stages of development of their footprint. This is up 3,000 megawatts just since last quarter.

As we discussed last quarter <unk> reached an energy supply agreement to serve the demand of approximately 300 megawatts that starts to ramp up in 2027 and will use existing and planned capacity.

ITC may also realize future opportunities associated with the ongoing miso LRT. LRT process

A very exciting time at ITC with a significant transmission buildup.

Stephanie Amaimo: But I would say the queue continues to get larger, and we remain optimistic.

The agreement awaits ACC approval as well as other contractual contingencies.

Let's now turn to UNS energy. Their Capital plan of 5.6 billion supports average annual rate based growth of approximately 7%.

Maurice Choy: Thank you. Appreciate it.

Negotiations are actively ongoing for an incremental 300 megawatts of capacity to support a full build out of 600 megawatts. At this initial site TEP is also in active negotiations for additional capacity. The second site in the range of 500 to 700 megawatts.

Operator: The next question comes from Ben Pham with BMO. Please go ahead.

As a vertically integrated utility Investments are spread across the value chain. Notably a third of the capital plan is concentrated in transmission with the balance consisting of generation and distribution Investments.

Maurice Choy: Hi. Thanks for morning. Could you update us on your thoughts with respect to an EPS CAGR initiation, if any?

David Hutchens: TEP is also in active negotiations for additional capacity at a second site in the range of 500 to 700 MW. If agreements are finalized for these subsequent phases, we estimate new generation in the range of approximately $1.5 to 2 billion through 2030 would be required, as well as new transmission. We expect the supply will include a mix of renewable energy, natural gas generation, and energy storage. All agreements will be structured to maintain reliability and provide financial protections for our customers and the company. Other opportunities beyond the plan include new energy resource investments required at TEP and UNS Electric as part of their next integrated resource plans expected to be filed in 2026. In British Columbia, our natural gas infrastructure is in focus.

If agreements are finalized for these subsequent phases, we estimate new generation in the range of approximately one $5 billion to $2 billion through 2030 would be required as well as new transmission.

David Hutchens: Yeah. We still continue whether or not we want to take that next step and give earnings guidance, but we have been pretty happy with all the details that we, and we hope our investors and analysts are happy with the details that we give on rate base growth and seeing how clear our capital plan and funding plan tie together. We give the dividend guidance as well. And we always evaluated, I think probably the last time I've had conversations with y'all, kind of the one thing that we're waiting for because there is a lot of variability in earnings in Arizona is to see the outcome of the Tucson Electric Power rate case. Formula rates will provide a much steadier earnings outlook for us, which would allow us to give a little bit more visibility and detail for y'all.

Regulated generation includes the cold and natural gas conversion of 800 megawatts at the Springerville Generating Station, which is aligned with teepees exit from coal by 2032, as well as the Black Mountain generation project at UNS Electric.

We expect the supply will include a mix of renewable energy natural gas generation and energy storage.

Well, there is no new generation reflected in the plan associated with data centers or other. Large load growth. A new era of demand is approaching with a significant interconnection queue.

All agreements will be structured to maintain reliability and provide financial protections for our customers and the company.

Other opportunities beyond the plan include new energy resource investments required of TEP and <unk> electric as part of their next integrated resource plans expected to be filed in 2026.

As we discussed last quarter, TP reached an energy Supply agreement, to serve a demand of approximately 300 megawatts, that starts to ramp up in 2027 and will use existing and planned capacity.

The agreement awaits ACC approval as well as other contractual contingencies

In British Columbia, our natural gas infrastructure is in focus Florida species capital plan of $4 9 billion supports projects that ensure system reliability and integrity as well as major capital projects for LNG and advanced metering infrastructure.

David Hutchens: FortisBC's capital plan of CAD 4.9 billion supports projects that ensure system reliability and integrity, as well as major capital projects for LNG and advanced metering infrastructure. Beyond the base plan, we have several opportunities. Just last week, the BCUC approved the Tilbury LNG storage expansion project. Given our capital plan assumes a smaller storage tank, we now have potential upside of approximately CAD 300 million. This project is contingent on an environmental assessment, which we anticipate next year. Other opportunities include LNG expansion at Tilbury for marine bunkering, as well as customer and load growth in the Okanagan electric service territory. Some of these opportunities have the potential to fall within the plan period. This is a dynamic and promising time to be an energy delivery utility in North America.

Negotiations are actively ongoing for an incremental, 300, megawatts of capacity, to support a full buildout of 600. Megawatts, at this initial site. Tep is also an active negotiations for additional capacity to Second Sight in the range of 500 to 700 megawatts.

David Hutchens: Whether or not we—I'm not saying that if we get formula rates, we're going to give earnings guidance, but that's one thing that's keeping us from giving it now.

Beyond the base plan, we have several opportunities just last week. The <unk> approved the Tilbury LNG storage expansion project, given our capital plan assumes a smaller storage tank. We now have potential upside of approximately $300 million. This project is contingent on an environmental assessment, which we anticipate next year.

Maurice Choy: Okay. Understood. And then maybe next on the asset sale side of things. Maybe not to talk specifically on Caribbean valuations, but could you share the trends you've seen with buyer appetite for those assets? And it seems like you're willing to more do deals which neutral to maybe slightly dilutive, perhaps. And just how do you think about CUC and the overall Fortis portfolio next today?

If Agreements are finalized for these subsequent phases, we estimate New Generation in the range of approximately 1.5 to 2 billion. US dollars through 2030 would be required as well as new transmission.

We expect the supply will include a mix of renewable energy, natural, gas, generation, and energy storage.

Other opportunities include LNG expansion at Tilbury for Marine Bunkering, as well as customer and load growth in the OCA Noggin Electric service territory. Some of these opportunities have the potential to fall within the plan period.

All agreements will be structured to maintain reliability and provide Financial protections for our customers and the company.

This is a dynamic and promising time to be an energy delivery utility in North America as we execute our base five year capital plan, we're concurrently focused on unlocking growth opportunities above and beyond the plan across all our jurisdictions.

Other opportunities beyond the plan include new energy, resource Investments, required to TP and UNS electric. As part of their next integrated resource plans expected to be filed in 2026.

David Hutchens: Yeah. I'd say the interest, like in any market, waxes and wanes. I mean, we've seen that over many years as folks had approached us about the Caribbean assets, etc. But there's no kind of consistency necessarily there. And of course, the buyer universe changes almost on a year-to-year basis. But again, just as far as TCI goes, this isn't a read-through that we're exiting the Caribbean. Those are two distinct and discrete transactions that we did, and doesn't mean we're looking to do anything else.

David Hutchens: As we execute our base 5-year capital plan, we are concurrently focused on unlocking growth opportunities above and beyond the plan across all our jurisdictions. Turning now to our favorite slide. Today, we announced the declaration by our board of directors of a Q4 dividend of CAD 0.64, representing a 4.1% increase. This brings us to 52 consecutive years of increases in dividends paid, a track record that speaks for itself. With our strong dividend history and regulated growth strategy, we are extending our 4% to 6% annual dividend growth guidance through 2030. Now, I will turn the call over to Jocelyn for an update on our Q3 financial results.

Turning now to our favorite slide.

We announced the declaration by our board of directors of a fourth quarter dividend of 64.

In British Columbia, our natural gas infrastructure is in Focus Florida species. Capital plan of 4.9 billion supports projects that ensure system, reliability and integrity as well as major capital projects for LNG and advanced metering infrastructure.

Representing a $4 one.

Percent increase.

Beyond the base plan. We have several opportunities just last week, the bcuc approved the Tilbury LNG storage Expansion Project.

This brings us to 52 consecutive years of increases in dividends paid a track record that speaks for itself.

Given our Capital plan assumes a smaller storage tank. We now have potential upside of approximately 300 million

With our strong dividend history and regulated growth strategy, we are extending our 4% to 6% annual dividend growth guidance through 2030.

This project is contingent on an environmental assessment, which we anticipate next year.

Now I will turn the call over to Jocelyn for an update on our third quarter financial results.

Maurice Choy: Understood. Thank you.

David Hutchens: Yep.

Thank you David and good morning, everyone for the quarter reported earnings were $409 million or <unk> 81 per common share and on a year to date basis reported earnings were $1 3 billion or $2 57 per common share as you can see on this slide reported earnings include income.

Operator: The next question comes from Mark Jarvi with CIBC. Please go ahead.

Other opportunities include LNG expansion at Tilbury for marine bunkering as well as customer and load growth in Okanagan electric service territory. Some of these opportunities have the potential to fall within the plan period.

Jocelyn Perry: Thank you, David. Good morning, everyone. For the quarter, reported earnings were CAD 409 million or CAD 0.81 per common share. On a year-to-date basis, reported earnings were CAD 1.3 billion or CAD 2.57 per common share. As you can see on this slide, reported earnings include income taxes and closing costs of approximately CAD 0.06 per share associated with the disposition of FortisTCI. Excluding this impact, adjusted EPS for the quarter was CAD 0.87 per common share, up CAD 0.02 compared to Q3 of last year. Year-to-date September, adjusted EPS was CAD 2.63, up CAD 0.18 per common share compared to the same period last year. Adjusted EPS growth to date in 2025 reflects strong performance across all our regulated utilities.

Maurice Choy: Yeah. Good morning, everyone. Just wanted to come back to sort of friction points on potentially higher spend. As far as I can tell, it doesn't seem like customer affordability is one or balance sheet. So really, is it just equipment availability and permitting, Dave?

<unk> and closing costs of approximately six cents per share associated with the disposition afford us GCI.

This is a dynamic and promising time to be an energy delivery utility in North America. As we execute our base 5-year Capital plan, we are currently focused on unlocking growth opportunities above, and beyond the plan, across all our jurisdictions.

David Hutchens: Yeah. So I'm glad you brought up affordability because when you think about these new large load customers, that actually can, and well, it should be, if you design it rightly, you would get the new customer, the large data center, to pay for the growth that is needed in your infrastructure. It's kind of growth pays for growth argument. So we definitely want to structure them that way so that in the end, we have a positive impact on customer affordability. They either get improved reliability and don't pay any extra, or you end up with the great reliability that we always provide and actually seeing some downward rate impact because of all the energy and infrastructure that those larger customers are now paying part of, basically paying a bigger part of the pie.

Turning now to our favorite slide.

Excluding this impact adjusted EPS for the quarter was <unk> 87 per common share up <unk> <unk> compared to the third quarter of last year and year to date September adjusted EPS was $2 63.

Today we announced the Declaration by our board of directors of a fourth quarter, dividend of 64 cents representing a 4.1% increase.

This brings us to 52 consecutive years of increases in dividends paid a track record that speaks for itself.

Up 18 per common share compared to the same period last year adjust.

Adjusted EPS growth to date in 2025 reflects strong performance across all our regulated utilities.

With our strong dividend history and regulated. Growth strategy, we are extending our 4 to 6% annual dividend growth guidance through 2030.

Now, I will turn the call over to Jocelyn for an update. On our third quarter Financial results,

On Slide 14, you will see the adjusted EPS drivers for the quarter by segment, our U S electric and gas utilities delivered a <unk> <unk> increase in EPS higher earnings Unf's reflected an increase in transmission revenue and higher <unk> associated with the ongoing major capital projects as we discussed.

Jocelyn Perry: On slide 14, you will see the adjusted EPS drivers for the quarter by segment. Our US electric and gas utilities delivered a $0.03 increase in EPS. Higher earnings at UNS reflected an increase in transmission revenue and higher AFUDC associated with ongoing major capital projects. As we discussed last quarter, earnings at UNS are tempered by regulatory lag, driven largely by over $700 million of rate base not reflected in rates. The increase in earnings at Central Hudson was due to rate base growth, as well as a change in the recognition of a regulatory deferral for uncollectible accounts effective 1 July 2025. Growth was moderated by a contribution to a customer benefit fund associated with the joint settlement agreement, which concluded an ongoing enforcement proceeding.

Last quarter earnings at <unk> are tempered by regulatory lag driven largely by over $700 million of rate base not reflected in rates.

David Hutchens: So now that is a very difficult conversation, not necessarily to say but for folks to hear and understand that because there's a lot of mixed messages out there that are telling people in different markets that data centers can drive your costs up. Well, when you have the control over the full value chain like you do in a vertically integrated utility, you can make sure that doesn't happen, and your regulators will make sure that doesn't happen. So that's the tack that we're taking in Arizona.

Thank you, David and good morning everyone. For the quarter reported earnings were 409 million or 81 cents per common share and on a, year-to-date basis, reported earnings were 1.3 billion or 2.57 cents per common. Share, as you can see on this slide reported earnings, including income taxes, and closing costs for approximately 6 cents per share associated, with the disposition of forest TCI,

The increase in earnings at Central Hudson was due to rate base growth as well as a change in the recognition of a regulatory deferral for uncollectible accounts effective July one 2025.

Growth was moderated by a contribution to a customer benefit fund associated with the joint settlement agreement, which concluded in ongoing enforcement proceeding.

Together these regulatory items impacted adjusted EPS by <unk> <unk>.

David Hutchens: And so when it comes down to it, I mean, there's always additional things like making sure that the community is supportive, that if you have whether it's water-cooled or air-cooled, that you understand what that means from a resource perspective, which is one of the reasons that in Arizona they're all shifting to air-cooled air cooling for the data centers instead of water cooling to kind of take that out of the argument. So it is all of those things, permitting, siting. They're great for economic development and jobs in the area, tax base. I mean, it's a great story to tell, but sometimes it's a bit of a hard story to make sure everybody hears it all.

Excluding this impact adjusted EPS for the quarter was 87, cents, per common, share up 2 cents compared to the third quarter of last year and year to date September. Adjusted EPS was $2.63 up, 18 cents, per common share compared to the same period last year. Adjusted EPS growth to date in 2025, reflects strong performance, across all our regulated utilities.

Jocelyn Perry: Together, these regulatory items impacted adjusted EPS by 1 cent. Moving to ITC, continued capital investments and related rate-based growth increased EPS by 2 cents. The increase was partially offset by higher stock-based compensation and holding company finance costs. For our Western Canadian utilities, EPS increased 1 cent, largely driven by rate-based growth, including earnings associated with FortisBC Energy's investment in the Eagle Mountain Pipeline Project. The expiration of a PBR efficiency mechanism and a lower allowed ROE effective 1 January 2025 at FortisAlberta tempered earnings for this segment. While not shown on the slide, at our other electric segment, EPS was largely consistent with Q3 2024. Rate-based growth was offset by the 2 September disposition of FortisTCI. For the full year, we expect the sale of FortisTCI to have a 2-cent impact on adjusted EPS.

Moving to ITC continued capital investments and related rate base growth increased EPS by <unk> <unk>. The increase was partially offset by higher stock based compensation and holding company finance costs.

The adjusted EPS drivers for the quarter by segment, our US Electric and Gas, Utilities delivered. A 3 Cent increase in eps

For our Western Canadian utilities, EPS increased <unk>, <unk>, largely driven by rate base growth, including earnings associated with Fortis BC Energy's investment in the Eagle Mountain pipeline project.

Higher earnings at ins reflected, an increase in transmission revenue and higher.

The exploration of a PBR efficiency mechanism and a lower allowed our effective January one 2025 at Fortis, Alberta tempered earnings for this segment.

As we discussed last quarter, earnings at ins are tampered by regulatory lag driven, largely by over 700 million, US dollars of rate base, not reflected in rates.

And while not shown on this slide at our other electric segment EPS was largely consistent with the third quarter of 2024.

The increase in earnings at Central Hudson was due to rate-based growth as well as a change. In the recognition of a regulatory deferral, for uncollectible accounts, effect of July, 1st 2025,

Maurice Choy: You brought up the shift to air cooling. Just on that 300MW initial site, is that all moved ahead? Is there anything else that needs approval for that 300MW? And then, in terms of other municipal support or other approvals, what's required then to get to the sort of investment decision on the next 300MW of data center load?

Base growth was offset by the September 2nd disposition afford as TCR.

growth was moderated by a contribution to a customer benefit fund associated with The Joint settlement agreement, which concluded an ongoing enforcement proceeding

For the full year, we expect the sale of Fortis GCI to have a <unk> impact on adjusted EPS.

Together these regulatory items impacted adjusted EPS by 1 set.

A higher U S dollar to Canadian exchange rate also contributed a one cent EPS increase for the quarter.

David Hutchens: Yeah. I'm going to turn that over to Susan. We do have the, as I mentioned, the energy supply agreement has been filed with the Corporation Commission, which is the first thing we have to get through. But I'll turn it to Susan to talk about any of the other pieces that might need to happen.

Jocelyn Perry: A higher US dollar to Canadian exchange rate also contributed a 1 cent EPS increase for the quarter. For the corporate and other segment, the 3 cent decrease reflects higher holding company finance costs, unrealized losses on foreign exchange contracts, and lower unrealized gains on total return swaps. As David mentioned, we sold our assets in Belize in October and do not expect the transaction to have a material impact to adjusted earnings going forward. Finally, higher weighted average shares impacted EPS by 2 cents, driven by shares issued under our dividend reinvestment plan.

For the corporate and other segment. The <unk> decrease reflects higher holding company finance costs unrealized losses on foreign exchange contracts and lower unrealized gains on total return swaps.

Moving to ITC, continue Capital Investments and related rate base. Growth increased EPS by 2 cents. The increase was partially offset by higher stock, based compensation, and holding company Finance costs.

David Hutchens: All right. Good morning. Thanks, Mark, for the question. So yeah, as Dave mentioned, on our side, the biggest approval that we need is that Corporation Commission approval, which we expect to get by the end of this year. But on the data center side, I think the main approval that they need is a permit to dig a well, which is a state permit. This is on county land. The state would actually approve the water. And that's water just for regular building use like kitchens and bathrooms kinds of things. So that's for the first 300MW. I would say anything beyond that, we're still negotiating contracts. And so not really sure what the types of approvals we would need, but certainly anything beyond this first contract, we would need to build something new in terms of an energy generation resource.

And as David mentioned, we sold our assets and believes in October and do not expect the transaction to have a material impact to adjusted earnings going forward.

For a Western Canadian utilities EPS increased 1 set, largely driven by rate-based growth, including earnings associated with 4 to BC energies investment in the Eagle Mountain pipeline project.

And finally higher weighted average shares impacted EPS by <unk> <unk> driven by shares issued under our dividend reinvestment plan.

The expiration of a PBR efficiency mechanism and a lower allowed Roe effect of January 1st 2025, at Fortis Alberta temperate earnings for this segment.

While most of the factors discussed for the quarter are the same for the year to date period. The increase in earnings for the nine month period also reflects growth at central Hudson due to the re basing of costs and a higher allowed ROE effective July one 2024, as well as the timing of operating costs in 2025.

Jocelyn Perry: While most of the factors discussed for the quarter are the same for the year-to-date period, the increase in earnings for the nine-month period also reflects growth at Central Hudson due to the rebasing of costs and a higher allowed ROE effective 1 July 2024, as well as the timing of operating costs in 2025. Earnings year-to-date also reflect lower margins on wholesale sales at UNS Energy and the timing of operating costs at FortisAlberta. Through September, we raised over CAD 2 billion of debt, including an inaugural corporate hybrid issuance of CAD 750 million at 5.1%. Proceeds from both the hybrid issuance and the sale of FortisTCI during the quarter were used to repay our corporate credit facilities, including the non-revolving term loan, providing funding flexibility as we focused on executing our capital program.

And walnut shown on the slide at our other electric segment EPS was largely consistent with the third quarter of 2024 rate. Based growth was offset by the September 2nd disposition of Ford's TCI.

Earnings year to date also reflect lower margins on wholesale sales at <unk> energy and the timing of operating cost at Fortis, Alberta.

For the full year, we expect the sale of Fordyce TCI to have a 2 cent impact on adjusted, EPS a higher US dollar to Canadian exchange rate. Also contributed a 1 cent EPS increase for the quarter.

Through September we raised over $2 billion of debt, including an inaugural corporate hybrid issuance of $750 million at five 1%.

David Hutchens: So that's going to be a more extended period of time. As Dave talked about earlier, it all depends on the resource mix. Certainly some of the generation resources can be built a lot more quickly than others.

For the corporate and other segments. The 3 Cent decrease reflects higher holding company, Finance costs. I'm realized losses on Foreign Exchange contracts and lower unrealized gains on total return swaps.

Proceeds from both the hybrid issuance and the sale of <unk> during the quarter were used to repay our corporate credit facilities, including the non revolving term loan providing funding flexibility as we focused on executing our capital program.

And as David mentioned, we sold our Assets in bise in October and do not expect the transaction to have a material impact to adjusted earnings going forward.

Maurice Choy: So the customer would like to push the timelines, but you need to do your own sort of analysis on generation mix to come back to them with a solution. Is that right?

And finally higher weighted average shares impacted EPS by 2 cents, driven by shares issued under a dividend reinvestment plan.

As I just mentioned with the recent hybrid issuance and asset dispositions the growth in our capital plan is expected to be funded largely from cash from operations utility debt and our dividend reinvestment plan, our $500 million ATM program has not been utilized to date and remains available for funding flexibility.

David Hutchens: I would say we need to do the analysis on the overall grid impact and make sure that we have all the infrastructure in place to serve the new customers as well as our existing customers as reliably and affordably as possible. I think in terms of what we would build, the customer will have a huge influence on that, right? So if the customer wants to go primarily renewable, that would be their decision and based on what they're willing to pay in terms of resource mix. So we're willing to build whatever they need, whatever they prefer, as long as the customer is willing to pay for that incremental cost of maybe increasing the amount of renewable resources.

Jocelyn Perry: As I just mentioned, with the recent hybrid issuance and asset dispositions, the growth in our capital plan is expected to be funded largely from cash from operations, utility debt, and our dividend reinvestment plan. Our CAD 500 million ATM program has not been utilized to date and remains available for funding flexibility as required. Overall, our funding plan remains largely consistent with the previous plan and supports average cash flow to debt metrics of over 12% through the period, with ample cushion in the latter part of the plan. This balanced approach to funding supports both our growth objectives and strong credit profile. Turning now to recent regulatory activity with one item of note.

While most of the factors discussed for the quarter are the same for the year to date period. The increase in earnings for the 9-month period also reflects growth at Central Hudson due to the rebasing of costs and a higher allowed. Roe effective July 1st 2024, as well as the timing of operating costs in 2025,

City as required.

Overall, our funding plan remains largely consistent with the previous plan and supports average cash flow to debt metrics up over 12% through the period with ample cushion in the latter part of the plan.

earnings year to date also reflect lower margins on wholesale sales at UNF energy and the timing of operating costs at Fortis Alberta

This balanced approach to funding supports both our growth objectives and strong credit profile.

Through September, we raised over $2 billion of debt, including an inaugural corporate hybrid issuance of $750 million at 5.1%.

Turning now to recent regulatory activity with one item of note in August The New York State Public Service Commission approved central Hudson's three year rate plan with retroactive application to July one 2025, including the continuation of an allowed ROE of nine 5%.

Maurice Choy: Understood. And then Jocelyn, a question for you. Just in terms of the funding plan for the next five years, does it contemplate further hybrid issuances? And if yes, can you kind of outline roughly the quantum?

Jocelyn Perry: In August, the New York State Public Service Commission approved Central Hudson's three-year rate plan with retroactive application to 1 July 2025, including the continuation of an allowed ROE of 9.5% and a common equity ratio of 48%. That concludes my remarks. I'll now turn the call back to David.

Proceeds from both the hybrid issuance and the sale of Fortis TCI during the quarter were used to repay our corporate credit facilities including the non-revolving term loan providing funding flexibility. As we focused on executing our Capital program.

Operator: Yeah. Thanks, Mark. Yeah. No, we don't have any further hybrid included, but we do have capacity. So with that growth that we're talking about here today that is not in the plan, should it come in the plan, then it's possible that we will explore the hybrid market when we look at that growth. And we may also look at it regardless, depending on the market and how the hybrids are pricing relative to other instruments. So yeah, definitely an area that we're exploring.

And a common equity ratio of 48%.

That concludes my remarks, I'll now turn the call back to David.

As I just mentioned with the recent, hybrid issuance and asset dispositions, the growth in our Capital plan is expected to be funded, largely from cash from operations, utility debt, and our dividend reinvestment plan.

Thank you Jocelyn.

Our core we are a utility built on strong fundamentals and a clear disciplined regulated growth strategy with a long capex runway supported by FERC regulated transmission and retail load growth opportunities in Arizona.

David Hutchens: Thank you, Jocelyn. At our core, we are a utility built on strong fundamentals and a clear, disciplined, regulated growth strategy with a long CapEx runway supported by FERC-regulated transmission and retail load growth opportunities in Arizona. For our customers, we remain committed to prioritizing safety, reliability, affordability, and the delivery of cleaner energy. For our shareholders, we offer a compelling low-risk return profile reinforced by our capital investment plan and dividend growth guidance through 2030. That concludes my remarks. I will now turn the call back over to Stephanie.

Our $500 million ATM program has not been utilized to date and remains available for funding flexibility as required.

For our customers, we remain committed to prioritizing safety reliability affordability and the delivery of cleaner energy.

Maurice Choy: Okay. Thanks, everyone.

Overall, our funding plan remains largely consistent with the previous plan and supports, average cash flow to debt metrics of over. 12%, through the period with ample cushion, in the latter part of the plan.

Operator: The next question comes from John Mold with TD Cowen. Please go ahead.

For our shareholders, we offer a compelling low risk return profile reinforced by our capital investment plan and dividend growth guidance through 2030.

This balanced approach to funding supports. Both our growth objectives and strong credit profiles.

John Mold: Hi. Good morning, everybody. I'd like to take another stab on the large load front in a couple of places, maybe just starting with ITC. I'm not asking for a view on in-service dates, but I'm just wondering if you can provide a little more detail on how the timing of the connection requests are paced, and the 3GW of growth that you've seen since last quarter, in particular, the pacing of at least what customers are looking for.

That concludes my remarks, so I will now turn the call back over to Stephanie.

Thank you David This concludes the presentation at this time, we'd like to open the call to address questions from the investment community.

Betsy Operator: Thank you, David. This concludes the presentation. At this time, we'd like to open the call to address questions from the investment community. We will now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question today comes from Maurice Choy with RBC Capital Markets. Please go ahead.

Stephanie Amaimo: Thank you, David. This concludes the presentation. At this time, we'd like to open the call to address questions from the investment community. We will now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question today comes from Maurice Choy with RBC Capital Markets. Please go ahead.

We will now begin the question and answer session.

To join the question queue you May Press Star then one on your telephone keypad.

Turning now to recent regulatory activity with 1 item of note in August the New York State Public Service Commission approved, Central Hudson's 3-year rate plan with retroactive application to July 1st 2025, including the continuation of an allowed Roe of 9.5% and a common equity ratio of 48%.

Here were tone acknowledging your request.

That concludes my remarks on now. Turn the call back to David.

Thank you, Jocelyn.

If you are using a speakerphone please pick up your handset before pressing any Keith.

Maurice Choy: So, are you asking how soon they come in before they need it, or just?

To withdraw your question. Please press Star then two.

David Hutchens: Yeah. How soon they're seeking?

We will pause for a moment of callers join the queue.

John Mold: Yeah. How soon they're seeking to get connected? Just if I was trying to map out the timing of all those requests, is there a particular time period to which it's weighted?

At our core, we are a utility built on strong fundamentals and a clear. Disciplined regulated growth strategy with a long capex, Runway supported by furth regulated transmission and Retail load growth opportunities in Arizona.

The first question today comes from Maurice Choy with RBC capital markets. Please go ahead.

We remain committed to prioritizing safety reliability affordability and the delivery of cleaner energy.

Thank you and good morning, everyone. Just first question is on the timing and likelihood of some of the opportunities over and above the baseline, but within this five year period plan specifically.

David Hutchens: Yeah. I don't have any visibility to that. Linda, do you have a view on kind of the detailed queue, I guess, CODs that they're looking for?

Maurice Choy: Thank you, and good morning, everyone. Just the first question is on the timing and likelihood of some of the opportunities over and above the base plan, but within this 5-year period plan. Specifically, you mentioned earlier that there is about $1.5 to 2 billion US of incremental generation opportunities at TEP that is maybe required through 2030, and also another $300 million for the LNG Tilbury storage expansion upside. If my math is right, that's about $2.5 to 3 billion of incremental investments or another 100 basis points addition to your rate base CAGR. Any reason why you think that these two items may not come through in the coming months, such that we probably could potentially put this as part of our base estimates?

For our shareholders, we offer a compelling low-risk return profile reinforced by our capital investment plan and dividend growth guidance through 20130.

That concludes my remarks. I will now turn the call back over to Stephanie.

Specifically you mentioned earlier that there is about one and half to $2 billion U S incremental generation opportunities at TEP.

Jocelyn Perry: Look, I mean, I think I would be sort of generalizing, but I think back to Dave, I think an earlier comment you made is that, look, they all want to be connected as soon as possible. Certainly, there's practical realities just in terms of where they are looking to locate their facilities. Are they co-located with existing transmission infrastructure? If not, what is the infrastructure that's necessary, the MISO approval process to get that infrastructure through the MISO queue? So it's a difficult question. I guess I would generalize and say for the majority, I would say, of the conversations that we are involved with with prospective customers, I would say that many of their requests, as well as what is reasonably doable, we're looking at the outer years of that existing five-year plan.

presentation at this time, we'd like to open the call to address questions from the

That may be required to between 30 and also another $300 million for the LNG Tilbury storage expansion upside if my math is right. That's about two and a half to $3 billion of incremental investments or another 100 basis points addition to your rate base CAGR.

we will now begin the question and answer session.

To join the question queue. You may press star then 1 on your telephone keypad,

You will hear a tone acknowledging your request.

If you are using a speaker-phone, please pick up your handset before pressing any keys.

To withdraw your question. Please. Press star. Then 2

Any reason why you think that these two items you may not come through in the coming months such that we should we probably could potentially put this as part of our base estimates.

We will pause for a moment as callers join the queue.

Okay.

Like your optimism Maurice but theres a lot of wood to chop between here and there right. So we have to get the agreements done with these counterparties.

The first question today comes from Maurice Choy. With RBC Capital markets, please go ahead.

David Hutchens: I like your optimism, Maurice, but there's a lot of wood to chop between here and there, right? We have to get the agreements done with these counterparties. We obviously have to have the ability to build the infrastructure that's needed in the timeline that they want. All those things are definitely possibilities. But still, getting the generation sited, getting things in the queue, all of those pieces and most importantly, getting these customers to sign up for all the protections that we want for us from a credit perspective and for our customers from a rate perspective, and then going through the regulatory process. There's just a lot of steps between here and there, specifically around the data centers.

We obviously have to have the ability to to build the infrastructure that's needed in the timeline that they want.

So all those things are definitely possibilities, but still.

Jocelyn Perry: Obviously, there's different ramp perspectives around those because some of them want to move more aggressively, faster. Some of them are willing to be able to take what they can get as quickly as possible. So I think it's a really difficult question to give any specificity on, but I would say at least for the existing conversations that we are engaged with, I would say the majority of those requests are looking at the latter part of our existing five-year plan, so out into the 2028, 2029, 2030 timeframe. So hopefully that provides some context.

Getting the generation cider to getting things in the queue all of those pieces are and most importantly, getting.

These customers to sign up for all the protections that we want for us from a credit perspective and for our customers from a rate perspective, and then going through the regulatory process Theres just a lot of steps between here and there specifically around the data centers and then also in the for the storage tank NBC still have to go through that.

Thank you, and good morning everyone. Um, just first question is on the timing and likelihood of some of the opportunities over and above the base plan, but within this 5-year period plan, uh, specifically you mentioned earlier that there is about 1 and a half to 2 billion dollars US of incremental generation opportunities at TP, uh, that this may be required through 2030 and also another

David Hutchens: Then also, you know, for the storage tank in BC, still have to go through the EA process there. We, you know, we obviously are very excited and bullish and after these projects as much as we can be. As, as you know, we don't drop those things into our capital plan until we, you know, have signatures on the dotted line. We'll keep you posted as those negotiations go and once we reach agreements with some of those third parties.

Process. There. So we obviously are very excited and bullish and after these projects is as much as we can be but as you know we we don't drop those things into our capital plan until we have signatures on the dotted line and we'll keep you posted as those negotiations go and when once.

300 million, uh, dollars, uh, for the LNG. Tilbury storage expansion upside. If my math is right, that's about 2 and a half to 3 billion dollars of incremental Investments or another. 100 basis points, addition to your rate based tagger. Uh, any reason why you think that these 2 items may not come through in the coming months, such that we should, we probably could potentially put this as part of our base estimates.

John Mold: Yes. That's very helpful, caller. Thank you. And then just on Arizona and the new IRPs that you're planning to file in 2026. By what time would you need on the large load side to have something more definitive in place so that that's reflected in the broader IRP and also allows you to potentially demonstrate the rate benefits that could potentially come from that in the various IRP portfolios? Just wondering what the timing looks like there.

As we reach agreements with some of those third parties.

Understood if I could.

Finish off with a question on the funding plan on slide 17.

Maurice Choy: Understood. If I could finish off with the question on the funding plan on slide 17, where there was a mention about the balance of equity funding to be satisfied from, among others, asset sales. Obviously, you've sold a number of things here, Turks and Caicos, as well as Fortis Belize and Belize Electricity, and also Aitken Creek Gas Storage in the past. You're 100% regulated right now, as you mentioned. Thoughts on what else might be worth trimming, optimizing, or do you feel like this is no longer an avenue that's worth exploring?

Where there was some mention about the balance of equity funding to be satisfied from among others asset sales.

Obviously you've sold.

A number of things sure Turks and Caicos is wellness Fortis believes and believes electricity and also it can creek gas storage in the past so.

David Hutchens: Yeah. So the IRP is going through its process. They've had a couple of workshops and will continue more through 2026 with a target of filing those integrated resource plans, I think, in August of next year. But there will be a bunch of different resource portfolios based on different load growth scenarios with and without data centers. And I think even if we file an integrated resource plan and it doesn't include something that we need later, we just update that, right? I mean, it's just that's basically putting a stake in the ground for sort of the bread and butter resources that we need to serve our load growth.

100% regulated right now as you mentioned thoughts on what else.

It might be worth trimming optimizing or do you feel like this is no longer an avenue that's worth exploring.

Yes, so we're focused mostly on executing our five year capital plan and that laundry list of additional opportunities above and beyond the plan that we just went through.

David Hutchens: We're focused mostly on executing that five-year capital plan and that laundry list of additional opportunities above and beyond the plan that we just went through. That there is no, you know, no read-through from the transactions that we just completed. You know, our portfolio is a great portfolio and, you know, we do have, you know, 100% of our assets being regulated now. That's not when you read that sentence, that was looking back, not forward. That's how we look at funding. Our capital plan is clearly laid out by that funding plan on the slide. And I'd reiterate that the, you know, the DRIP is the only source.

Uh, I I like your optimism Maurice. Um, but there's a lot of wood to chop between here and there, right? So we have to get uh, the agreements done with these counterparties. Um, we obviously have to have the ability to, to build the infrastructure that's needed in the timeline that they want. Um, so all those things are definitely possibilities. Um, but still um, getting the generation cited, getting things in the queue. All of those pieces are and and, and most importantly, getting uh, these customers to sign up for all the protections that we want for us from a credit perspective. And for our customers from a rate perspective and then going through the regulatory process there, there's just a lot of steps between, uh, here and there specifically around the data centers. Uh, and then also, you know, in the, for the storage tank and, and BC, uh, still have to go through the EA process there. So we, you know, we obviously, are are very, uh, excited and, and bullish and after these projects is as much as we can be. But as as you know, we

So there is no.

No read through from the transactions that we just completed.

Our portfolio is a great portfolio and we do have a 100% of our assets being regulated now.

We don't drop those things into our Capital plan, until we, you know, have signatures on the dotted line and we'll we'll keep you posted as those uh, negotiations go. And and once, uh, we reach agreements with some of those third parties.

So there is that's not when you when you read that.

David Hutchens: But any of these additional investments that we would see and need and require for additional data center growth, I kind of think of it as almost like its own little mini IRP and rate case that would have its own revenue requirement that would be served by or that would be met by these customers. So it's a bit of a different model. You wouldn't necessarily need to put them all together. And it's not like we file this thing in August and say, "Okay, we got to close up shop.

And so that was looking back not forward.

That's how we look at funding our capital plan is clearly laid out by that funding funding plan on the slide in and I'd reiterate that the.

The drip is the only source, we don't have any discrete equity in there. So the drips the only source of equity we have the ATM in hot standby, but.

David Hutchens: We don't have any discrete equity in there, so the DRIP's the only source of equity. We have the ATM and hot standby, but that's not needed in the current, you know, capital plan process.

<unk> not needed in the current.

Capital plan.

Process.

Understood. I think we should finish off with the question on the funding plan on slide 17, where there was a mention about the balance of equity funding to be satisfied from, among others, asset sales. Obviously, you've sold a number of things here: Turks and Caicos, as well as Forest Police and Police Electricity, and also Acre Creek Gas Storage in the past. So, you're 100% regulated right now, as you mentioned. Do you have any thoughts on what else might be worth trimming or optimizing? Or do you feel like this is no longer an avenue that's worth exploring?

That's great color. Thank you very much.

David Hutchens: Any more data centers that come in and ask us for energy, we can't figure this out." I mean, this is basically what we've been doing for the past couple of years while we've had the 2023 integrated resource plan in effect, is we still have these conversations, look at how we can meet the load, and then adjust accordingly.

Youre welcome.

Maurice Choy: That's great, Colin. Thank you very much.

The next question comes from Rob Hope with Scotiabank. Please go ahead.

David Hutchens: You're welcome.

Betsy Operator: The next question comes from Robert Hope with Scotiabank. Please go ahead.

Operator: The next question comes from Robert Hope with Scotiabank. Please go ahead.

Good morning, everyone and good to see the update on the capital plan.

Robert Hope: Morning, everyone. Good to see the update on the capital plan. Maybe to follow up on the $1.5 to 2 billion in new generation in Arizona, can you maybe help us understand kind of the timing of when this capital could be secured, just understanding that a lot of these items have relatively long lead times, and when they could be in service?

Maybe to follow up on the U S. One $5 billion to $2 billion in new generation in Arizona can.

John Mold: Okay. Those are all my questions. Thanks very much for all that, Color.

Can you maybe help us understand kind of the timing of when this capital could be secured just others understanding that a lot of these items have relatively long lead times.

Operator: The next question comes from Patrick Kenny with National Bank Financial. Please go ahead.

And when they can be in service.

Patrick Kenny: Thank you. Good morning, everyone. Just looking at the rate base CAGRs by utility and seeing Alberta and BC continuing to lag the 7% portfolio average. You touched on some upside in the Okanagan, but I'm just wondering if there might be any other macro or political tailwinds that you're watching out for that might help these two utilities close the gap relative to the group average growth profile, say, over the next three to five years?

Yes. So if you ask the customers are asking for this is pretty much tomorrow when they want it but obviously it takes time to build data centers. It takes time for us to get the deciding and permitting and of course building additional generation youre going to have to get in the queue for combustion turbines.

Yeah, so we're we're focused mostly on executing that 5 year, Capital plan and that laundry list of additional opportunities above and beyond the plan that we just went through. Um, so that there is no, um, you know, know, read through from the transactions that we just uh completed. Um, you know, our our portfolio is is a great portfolio and you know, we do have, you know, 100% of our uh assets being regulated now. Um so there's that's not when you when you read that um that sentence that was looking back not forward. So that's how we look at funding. Our Capital plan is clearly laid out uh by that funding funding plan on on the slide and

David Hutchens: If you ask the customers who are asking for this, it's pretty much tomorrow is when they want it. Obviously it takes time to build data centers. It takes time for us to get the siting and permitting, and of course, building additional generation. You're gonna have to get in the queue for combustion turbines or combined cycles with whatever the resource portfolio requires. It's also, you know, kind of not fully defined at this point where you can look at things that are available. Like, as I mentioned in my prepared remarks, we expect this to be a mix of different energy resources, including battery storage, which can happen pretty quick. You know, renewables of course, which can supply a good chunk of energy.

Reiterate that the um, you know, the drip is the only source we don't have any discrete equity in there. So the drip seal on the source of equity, we have the ATM and hot standby, but um, that's not needed in that in the current, um, you know, Capital plan, uh, process.

And buying cycles with whatever the resource portfolio requires but it's also kind of not fully defined at this point, where you can look at things that are available as I mentioned in my prepared remarks, we expect this to be a mix of different energy resources, including battery storage, which can happen pretty quick.

You're welcome.

David Hutchens: Oh, yeah, for sure. So the Okanagan one is actually a smaller part of the BC utility portfolio, but I think has some good substantial growth opportunities there. So I know we don't usually talk too much about the electric business in BC because the gas business is so big, but that does definitely have some additional opportunities there. And then on the LNG front, I mean, this is all about not just the extra upsized, I'll call it, storage tank that just got approved by the BCUC. That's one piece of additional investment, but also the additional LNG liquefaction capacity that we could put there for increased bunkering, mostly for increased bunkering at that Tilbury site. And there are some political tailwinds. I know there's been a lot of conversations about some major projects across Canada related to trying to get the economy jump-started.

The next question comes from, Rob, hope with Scotia Bank, please go ahead.

<unk>.

Renewables of course, which can supply a good chunk of energy and then you look at what the best capacity resource whether thats, a combustion turbine more combined cycle, depending on the load features so that.

David Hutchens: Then you look at, you know, what the best capacity resource, whether that's a combustion turbine, or a combined cycle, depending on the load features. That, I still think that when you look at longer term, like the current timeline that we have with the project in Arizona for the first 300 MW, is they're looking to be online in 2027 and ramping up over the next year or so after that. I would expect other timelines to be similar to that.

Update on the capital plan, uh, maybe to follow up on the us, 1.5 to 2 billion dollars in New Generation in Arizona. Uh, can you maybe help us understand? Kind of the timing of when this Capital could be secured, just understanding that. A lot of these items have relatively long lead times. Uh, and when they could be in service,

I still think that when you look at longer term like the current timeline that we have with the project in Arizona.

For the first 300 megawatts as they're looking to be online in 2007 and ramping up over the next year or so after that.

So I would expect other timelines to to be similar to that but.

When we look at our plan that goes all the way to 2030.

David Hutchens: When we look at our plan that goes all the way to 2030, you know, depending on availability of, say, combustion turbines, which would probably be the critical lead item on that, we still think that that's doable to get that done in that next 5-year time period.

Depending on availability of say combustion turbines, which would probably be the the critical lead.

Pete item on that.

We still think that that's due.

David Hutchens: I think maybe some more of those details might come out later today when the budget is released. But there is some good emphasis on LNG investments in BC. We hope some of that bleeds down and has some good impact on looking at additional LNG investments for bunkering for BC. So there are some investments there. And I should note, I'll come to BC's defense here a little bit as well. These things are cyclical, right? So the load growth, when you complete a bunch of big projects and then do a new five-year plan, it might not look as robust as the last one, but believe me, there's a lot of stuff in there. They've executed well on the past and look to add to that on a going forward basis.

Doable to get that done and that and that next five year time period.

Alright, great.

And then maybe taking a look at ICSC. So you mentioned that theres eight gigawatts of potential of growth associated with data centers and you have big Cedar in hand can you maybe add a little bit of color on how many opportunities you are looking at for that eight gigs as well as could we see some sanctioning in the next 12 months.

Robert Hope: All right, great. Then maybe taking a look at ITC. You mentioned that there's 8GW of potential load growth associated with data centers, and you have Big Cedar in hand. Can you maybe add a little bit of color on, you know, how many opportunities you're looking at for that 8 gigs as well as, you know, could we see some sanctioning in the next 12 months?

Yeah, so, um, if you ask the customers who are asking for this, it's pretty much tomorrow is when they want it. But uh, obviously it takes time to to build data centers. It takes time for us to get the, the sighting and permitting and of course, uh, building additional Generation. Um, you're going to have to get in the Q4. Um, combustion turbines or combined Cycles would would whatever the the resource portfolio requires. Um, but it's also, you know, kind of not fully defined at this point where you can look at things that are available. Like, as I mentioned in my, uh, prepared remarks. We expect this to be a mix of different energy resources, including battery storage, which can, which can happen pretty quick. Um, you know, Renewables of course, which, uh, can supply a good chunk of energy and then you look at, uh, you know, what the best capacity resource whether that's a, a combustion turbine, um, or a combined cycle, depending on the, the, the load features. So that I, I, I still think that, when you look at longer term, like the, the current timeline that

Yeah, I'll I'll turn that over to Linda to give some some details but.

David Hutchens: Yeah. I'll turn that over to Linda to give some details, but I will remind, you know, folks on the call that, you know, our three largest customers are DTE, CMS, and Alliance. I'm sure you've seen some of the conversations in those earnings calls as it relates to some of this development as well. Linda, I'll turn it over to you.

I will remind folks on the call that our three largest customers are DTE CMS and alliance. So I'm sure you've you've seen some of the conversations in those earning calls is as it relates to some of this development as well so Linda I'll turn it over to you.

Patrick Kenny: Okay. That's great. Thanks for that, David. And then maybe for Jocelyn, just back on the funding plan. Looking at that five-year average cash flow-to-debt ratio of 12.4%. Is that 40 basis points above S&P's threshold anyway? Is that where you'd like to see it on a sustained basis, or would you still like to see a little bit more cushion built over time? I guess maybe a different way to look at it. How much dry powder might you have based on your debt metrics to flex the capital program or to handle any further weakness in the Canadian dollar?

Great. Thank you, Dave and thanks for the question Rob.

Certainly the eight gigawatts that certainly we are.

[Company Representative] (Fortis Inc.): Great. Thank you, Dave, and thanks for the question, Rob. Yes, certainly, the 8 gigawatts that certainly we are, you know, we have sort of insight into in terms of those conversations with customers, you know, ongoing planning studies to accommodate them. You know, certainly we remain hopeful. I would say there's a lot of activity. You know, we're working closely, as Dave mentioned, with our customers. I mean, we're really not in a position to, you know, really say or identify, you know, just sort of from a timeline perspective. You know, I think what we can say is that we continue to see that, you know, queue of those prospective, you know, data center or other economic development projects continue to grow.

Linda Blair: Great. Thank you, Dave, and thanks for the question, Rob. Yes, certainly, the 8 gigawatts that certainly we are, you know, we have sort of insight into in terms of those conversations with customers, you know, ongoing planning studies to accommodate them. You know, certainly we remain hopeful. I would say there's a lot of activity. You know, we're working closely, as Dave mentioned, with our customers. I mean, we're really not in a position to, you know, really say or identify, you know, just sort of from a timeline perspective. You know, I think what we can say is that we continue to see that, you know, queue of those prospective, you know, data center or other economic development projects continue to grow.

With the project in Arizona, for the, for, for the first 300 megawatts. As they're looking to be online in 27 and ramping up over the next year or so after that. Um, so I, I would expect other timelines to, to be similar to that. But um, when we look at our plan that goes all the way to 2030, um, you know, depending on availability of say combustion turbines, which would probably be the, the, the critical lead, uh, lead item on on that. Um, we still think that that's

We have sort of.

Site into in terms of those conversations with customers.

doable to get that done. And that, uh, in that next 5 year time, period.

Ongoing planning studies to accommodate them.

Certainly we remain hopeful I would say there is a lot of activity and we're working closely as Dave mentioned with our with our customers.

Really not in a position to really say or identify just sort of from a timeline perspective.

All right, great. Uh, and then maybe take a look at ITC. So you mentioned that there's 8 gigawatts of potential of growth associated with data centers. Uh, and you have Big Cedar in hand. Can you maybe add a little bit of color on? You know, how many opportunities you're looking at for that 8? Gigs as well as you know, could we see some sanctioning in the next 12 months?

What we can say is that we continue to see that that Q of those perspective.

Data center or other economic development projects continue to grow.

Operator: Yeah. Thanks, Patrick. Yeah, you're right. The average for the S&P metric over the five years is 12.4, but as you get to the latter part of the plan, we're actually pushing more like 100 basis points. You've probably heard me say before that that's sort of where we have been targeting our cushion. It gives us a lot of dry powder to have the flexibility to finance the projects that are not in our capital plan that we're talking here today. So yeah, so this is a plan that sets us up nicely to actually get to that adequate, ample cushion in the latter part of the plan. I'll actually say 100 basis points is actually a lot of cushion. So I feel comfortable really having like 75 to 100 basis points above the threshold of 12%. And we're getting there.

So we remain hopeful and optimistic that we will continue to see further announcements.

[Company Representative] (Fortis Inc.): We remain hopeful and optimistic that, you know, we will continue to see further announcements. Really at this point in time, it's premature for us to speculate on which projects, where or exactly when. I would say the queue continues to, you know, get larger and we remain optimistic.

Linda Blair: We remain hopeful and optimistic that, you know, we will continue to see further announcements. Really at this point in time, it's premature for us to speculate on which projects, where or exactly when. I would say the queue continues to, you know, get larger and we remain optimistic.

But really at this point in time, it's premature for us to speculate on which projects, we're or exactly when but I would say that Q continues to get larger and we remain optimistic.

Yeah, I'll I'll I'll turn that over to Linda to give some some details but I I I will remind you know folks on the call that you know our 3 largest customers are DTE CMS and Alliance. So I'm sure you've you've seen some of the conversations in those earning calls as, as it relates to some of this development as well. So, uh, Linda, I'll turn it over to you.

Thank you I appreciate it.

David Hutchens: Thank you. Appreciate it.

The next question comes from Ben Pham with BMO. Please go ahead.

Betsy Operator: The next question comes from Ben Pham with BMO. Please go ahead.

Operator: The next question comes from Ben Pham with BMO. Please go ahead.

Hi, Thanks, good morning.

Could you update us on your thoughts with respect to.

Ben Pham: Hi. Thanks. Good morning. Could you update us on your thoughts with respect to an EPS target initiation, if any?

Benjamin Pham: Hi. Thanks. Good morning. Could you update us on your thoughts with respect to an EPS target initiation, if any?

And EPS.

CAGR.

Operator: So this plan has actually improved over the prior year plan, which is a good thing. And in large part, it came from the fact that we've done some asset dispositions, and we've continued our DRIP. So yep, the cushion is certainly met on average of 12.4, but we do get to the, I'm going to call it the ideal cushion by the latter part of the plan.

Initiation if any.

Yes, we still continue whether or not we want to.

Take that next step and give earnings guidance, but we have been pretty.

David Hutchens: Yeah, we still continue whether or not we wanna, you know, take that next step and give earnings guidance. We have been pretty happy with all the details that we, and we hope our investors and analysts are happy with the details that we give on rate-based growth and seeing how clear our capital plan and funding plan tie together. We give the dividend guidance as well. You know, we always evaluate it. I think probably the last time I've had conversations with you all, the one thing that we're waiting for because there is a lot of variability in earnings in Arizona to see the outcome of the Tucson Electric Power rate case.

Happy with all the details that we hope our investors and analysts are happy with the details that we give on rate base growth and seeing.

Now I'll clear our capital plan and funding plan tied.

Tie together.

Patrick Kenny: Okay. That's perfect. Thanks, all.

Could you give the dividend guidance as well.

Great. Thank you Dave, and thanks for the question Rob. Uh, yes, certainly, uh, the 8 gigawatts. That certainly we are, um, you know, we have sort of, um, insight into in terms of those conversations with customers, uh, you know, ongoing planning studies, uh, to accommodate them. You know, certainly we remain hopeful. Um, I would say there's a lot of activity, you know, we're working closely as Dave mentioned with our, with our customers. I mean, we're really not in a position to, you know, really say or identify, you know, just sort of, from a timeline perspective. Um, you know, I think what we can say is that we continue to see that, uh, that, you know, cue of those perspective, um, you know, data center or other Economic Development projects continue to grow. Um, so we remain hopeful and optimistic that, um, you know, we will continue to see further announcements. Uh, but really, at this point in time it's premature for us to, uh, speculate on which projects where or exactly when. But uh, I would say the Q can

We're always evaluated I think probably the last time I've had conversations with you all.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Amaimo for any closing remarks.

Continues to, you know, get larger, and we remain optimistic.

The one thing that we're waiting for because there is a lot of variability in earnings in Arizona to see the outcome of the Tucson Electric power rate case formula rates will provide a much steadier.

Thank you, appreciate it.

David Hutchens: Thank you, Betsy. We have nothing further at this time. Thank you, everyone, for participating in our Q3 results, a new five-year capital outlook conference call. Please contact IR should you need anything further, and have a great day.

The next question comes from Ben fam. With BM. Oh, please go ahead.

Hi, thanks for the morning. Um,

Earnings outlook.

David Hutchens: Formula rates will provide a much steadier earnings outlook for us, which would allow us to give a little bit more visibility and detail for y'all. Whether or not we, I'm not saying that if we get formula rates, we're gonna give earnings guidance, but that's one thing that's keeping us from giving it now.

Outlook for us, which would allow us to give.

A little bit more visibility.

Visibility in detail for you, all whether or not I'm, not saying that if we get formula rates, we're going to have earnings guidance, but that's one thing that's keeping us from giving it now.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Could you up update us on your thoughts? Uh, respect to uh, an EPS uh tagger.

Initiation, as if any.

Okay understood.

And then maybe next on the.

Ben Pham: Okay. Understood. Maybe next on the asset sale side of things, maybe not to talk specifically on Caribbean valuations, but can you share just the trends you've seen with buyer appetite for those assets? It seems like you're willing to more do deals which neutral to maybe slightly dilutive perhaps. Just how do you think about CUC in the overall Fortis portfolio mix today?

Benjamin Pham: Okay. Understood. Maybe next on the asset sale side of things, maybe not to talk specifically on Caribbean valuations, but can you share just the trends you've seen with buyer appetite for those assets? It seems like you're willing to more do deals which neutral to maybe slightly dilutive perhaps. Just how do you think about CUC in the overall Fortis portfolio mix today?

Asset sale side of things.

Maybe not to talk specifically on Caribbean evaluations, but could you share the trends you've seen buyer appetite for those assets it.

It seems like you are you willing to do deals, which neutral maybe slightly dilutive.

Perhaps.

And just how do you think we will see you see in the overall.

Third is portfolio mix today.

Yeah, I'd say the interest like in any market waxes and wanes I mean, we've seen that over many years as folks had approached us about <unk>.

David Hutchens: Yeah. I'd say the, you know, the interest, like in any market waxes and wanes. I mean, we've seen that over many years as folks had approached us about, you know, the Caribbean assets, et cetera. It's there's no like, you know, kind of consistency necessarily there. Of course, the buyer universe changes, you know, almost on a year-to-year basis. Again, just as far as CUC goes, this isn't, you know, a read-through that we're, you know, exiting the Caribbean. This those are two distinct and discrete transactions that we did and doesn't mean we're looking to do anything else.

Caribbean assets et cetera.

But there's no like kind of consistency necessarily there and of course, the buyer universe changes.

Case, uh, formula rates will provide a much steadier, um, earnings, um, outlook for us, which would allow us to give a little bit more, um, visibility, uh, and detail, uh, for for y'all. Uh, whether or not we, I'm not saying that, if we get formula rates, we're going to give earnings guidance, but that's 1 thing that's keeping us from giving it now,

On a year to year basis.

So, but again just as far as <unk> goes this isn't.

Okay. Understood. Um, and then maybe next on the

A read through that we're exiting the Caribbean.

Asset sale side of things. Um,

Those are two distinct and discrete transactions that we did and it doesn't mean, we're looking to do anything else.

Okay understood. Thank you.

Yep.

The next question comes from Mark Jarvi with CIBC. Please go ahead.

Ben Pham: I understand. Thank you.

Benjamin Pham: I understand. Thank you.

David Hutchens: Yep.

then maybe not to talk specifically on on Caribbean valuations, but, but could you, could you share the the trends you've, you've seen with buyer appetite for those assets? And it, it seems like you're you're willing to more do deals with new children, maybe slightly dilutive

Betsy Operator: The next question comes from Mark Jarvi with CIBC. Please go ahead.

Operator: The next question comes from Mark Jarvi with CIBC. Please go ahead.

Yes, good morning, I, just wanted to come back to sort of like friction points on potentially higher spend.

And and just how do you think about cuc in the overall?

For this portfolio next today.

Mark Jarvi: Good morning, everyone. Just wanted to come back to sort of like friction points on potentially higher spend. As far as I can tell, it doesn't seem like customer affordability is one or balance sheet. Really, is it just equipment availability and permitting, Dave?

As far as I can tell it doesn't seem like customer affordability is one our balance sheet. So it really is it just equipment availability and permitting.

Yes, I'm glad you brought up affordability because when you when you think about these.

David Hutchens: Yeah. I'm glad you brought up affordability because when you think about these new large load customers, that actually it can and well, it should be if you design it rightly, or correctly, you would get the new customer, the large data center, to pay for the growth that is needed in your infrastructure. It kind of growth pays for growth argument. We definitely wanna structure them that way so that in the end, we have a positive impact on customer affordability.

These new large load customers that actually is the key.

And while it should be if you if you design. It rightly if you if you are correctly.

You would.

Get the new customers the large data center to pay for.

The growth that is needed in your infrastructure.

Yeah, I'd say the, you know, the interest, like in any Market waxes and wanes, I mean, we've seen that over many years is folks. Had approached us about, you know, the Caribbean assets, Etc. Um, but it it's there's no, like, you know, kind of consistency necessarily there and, of course, the buyer Universe, uh, changes, uh, you know, almost on a year-to-year basis. Um, so, but, but again, just as, as far as cuc goes that this isn't, um, you know, a read through that, we're, you know, exiting the Caribbean. This, this, this is

Growth pace for growth argument, so we definitely want to structure them that way so that in the end we have a positive impact on customer affordability they either get.

Uh those are 2 uh distinct and discrete transactions that we did and um doesn't mean we're looking to do anything else.

I understand. Thank you.

Improved reliability and don't pay any extra or or you end up with.

David Hutchens: They either get improved reliability and don't pay any extra, or you end up with, you know, the great reliability that we always provide and actually seeing some downward rate impact because of all the energy and infrastructure that those larger customers are now basically paying a bigger part of the pie. Now that is a very difficult conversation, not necessarily to say, but for folks to hear and understand that because there's a lot of mixed messages out there that are telling people in different markets that data centers can, you know, drive your costs up.

Great reliability that we always provide and actually seeing some downward rate impact because of all the energy and infrastructure that those larger customers are now paying part of basically paying a bigger part of the pie. So.

The next question comes from Mark jarvey with CIBC please. Go ahead.

Yeah, good morning everyone. Just wanted to come back to sort of like friction points on potentially higher spend. Um, as far as I can tell, it doesn't seem like customer affordability is 1 or balance sheet, so it really is it just equipment, availability and permitting Dave,

Now that is that is a very difficult.

Conversation not necessarily to say, but together, but for folks to hear and understand that because theres a lot of mixed messages out there that are telling people in different markets that.

Data centers can drive your cost up well and when you have the control over the full value chain like Youre doing a vertically integrated utility you can make sure that doesn't happen and your regulators will make sure that doesn't happen. So that's that's the tack that were taken in Arizona and so when it comes down to it I mean, there is always additional things like.

David Hutchens: Well, when you have the control over the full value chain like you do in a vertically integrated utility, you can make sure that doesn't happen, and your regulators will make sure that doesn't happen. That's, that's the tact that we're taking in Arizona. When it comes down to it, I mean, there's always additional things like making sure that the community is supportive, that if you have, you know, whether it's water-cooled or air-cooled, that you understand what that means from a resource perspective, which is one of the reasons that in Arizona, they're all shifting to air-cooled air cooling for the data centers instead of water cooling to kind of take that out of the argument. It is all of those things, permitting, siting.

Making sure that your that the community is supportive.

That you if you have.

Whether it's water cooled or air cool that you that you understand what that means for from a resource perspective, which is one of the reasons that in Arizona, there are shifting to air cooled.

Air cooling for the data centers instead of water cooling to to kind of take that out of the argument. So it is that is all of those things permitting, citing they're great for economic development and jobs in the area of tax base.

Yeah, so um, I'm glad you brought up affordability because when you when you think about these new large load, uh, customers that actually is it can and well it should be if you if you design it. Rightly, if you, if you are correctly. Um, you would uh, get the new customer, the large data center, uh, to pay for, uh, the growth of that is needed in your infrastructure. This is the kind of growth pace for growth argument, so we definitely want to structure them that way. So that in the end, we have a positive impact on customer affordability. They either get um, improved reliability and don't pay any extra or, or you end up with, you know, the, the great reliability that we always, uh, provide and actually seeing some downward, uh, rate impact because of all the energy and infrastructure that those larger customers are now, uh, paying part of basically paying a bigger part of the the pie. So, um,

David Hutchens: They're great for, you know, economic development, jobs in the area, and tax base. I mean, it's a great story to tell. Sometimes it's a bit of a hard story to make sure everybody hears it all.

Great story to tell but sometimes it's a bit of a hard story to make sure everybody hears it all.

And you brought up the shift to air cooling just on that 300 megawatts. Initial site is that all moved ahead is there anything else I need approval for that 300 megawatts and then.

Mark Jarvi: You brought up the shift to air cooling. Just on that 300 megawatts in the initial site, is that all moved ahead? Is there anything else that needs approval for that 300 megawatts? Then in terms of other municipal support or other approvals, what's required then to get to the sort of investment decision on the next 300 megawatts of data center load?

Terms of other municipal support or other approvals and what's required then to get to the sort of investment decision on the next 300 megawatts of data center load.

Yes, I'm going to turn that over to Susan we do have the as I mentioned the energy supply agreement has been filed with the Corporation Commission, which is the first thing we have to get through but.

David Hutchens: Yeah, I'm gonna turn that over to Susan. We do have the as I mentioned, the energy supply agreement has been filed with the Corporation Commission, which is the first thing we have to get through. I'll turn it to Susan to talk about any of the other pieces that might need to happen.

I'll turn it to Susan to talk about any of the other pieces that might.

Now, now that is, that is a very difficult, um, conversation, not necessarily to say but to, but for folks that hear and understand that, because there's a lot of mixed messages out there that are telling uh, people in different markets that um, data centers, can you know, drive your your costs up. Well, and when you have the control over the full value chain, like you do in a vertically integrated utility, you can make sure that doesn't happen and your Regulators will make sure that doesn't happen. So that's, uh, that's the tact that we're taking, uh, in Arizona. And so, when it comes down to it, I mean, there's always additional things like making sure that you're that the community is supportive, um, that you, if you have, um, you know, whether its water cooled or air cooled that you, that you understand what that means for from a resource perspective, which is 1 of the reasons that in Arizona. They're all shifting into, uh, air cooled. Um,

Need to happen.

Great. Good morning, Thanks, Marc for the question so as Dave mentioned on our side. The biggest approval that we need is that Corporation Commission approval, which we.

[Company Representative] (Fortis Inc.): All right. Good morning. Thanks, Mark, for the question. Yeah, as Dave mentioned on our side, the biggest approval that we need is that Corporation Commission approval, which we expect to get by the end of this year. On the data center side, I think the main approval that they need is a permit to dig a well, which is a state permit. This is on county land, and the state would actually approve the water. And that's water just for regular building use, like kitchens and bathrooms kinds of things. That's for the first 300 megawatts.

Susan Gray: All right. Good morning. Thanks, Mark, for the question. Yeah, as Dave mentioned on our side, the biggest approval that we need is that Corporation Commission approval, which we expect to get by the end of this year. On the data center side, I think the main approval that they need is a permit to dig a well, which is a state permit. This is on county land, and the state would actually approve the water. And that's water just for regular building use, like kitchens and bathrooms kinds of things. That's for the first 300 megawatts.

We expect to get by the end of this year.

Right on the on the data center side, I think I mean.

I mean approval that they need is a permit to dig a well which is a state permit.

Air cooling for the data centers, instead of water cooling, to to kind of take that out of the argument. So it is that is all of those things permitting, sighting. They're great for, you know, Economic Development, uh, and jobs in the area tax base. I mean, that it's a it's a great story to tell. Um, but sometimes it's it's a bit of a hard story to make sure, everybody hears it all.

This is on county land.

And in.

And the state would actually accrue to water and Thats water just for regular building use like kitchens and bathrooms kinds of things. So that's for the first 300 megawatts I would say anything beyond that we're still negotiating contracts and so on.

And you you brought up the shift to air cooling, just on that, 300 megawatts, the, the initial site is that all moved ahead? Is there, is there anything else that needs approval for that? 300 megawatts. And then in terms of other Municipal support or other approvals, what's required, then to get to the sort of investment decision on the next 3 or megawatts of data center load.

[Company Representative] (Fortis Inc.): I would say anything beyond that, we're still negotiating contracts, you know, not really sure what the types of approvals we would need, but certainly, anything beyond this first contract, we would need to build something new in terms of a generation resource. That's gonna, you know, be a more extended period of time. As Dave talked about earlier, you know, it all depends on the, on the resource mix, certainly some of the generation resources can be built a lot more quickly than others.

Susan Gray: I would say anything beyond that, we're still negotiating contracts, you know, not really sure what the types of approvals we would need, but certainly, anything beyond this first contract, we would need to build something new in terms of a generation resource. That's gonna, you know, be a more extended period of time. As Dave talked about earlier, you know, it all depends on the, on the resource mix, certainly some of the generation resources can be built a lot more quickly than others.

Not really sure what day.

Types of approvals will be with me, but certainly anything beyond this first contract we would need to build something new in terms of in genera.

Generation resource so that's going to be more extended period of time as Dave talked about earlier.

Yeah, I'm going to turn that over to to Susan. We do have the as I mentioned, the energy Supply agreement has been filed with the corporation commission, which is the first thing we have to get um through. Um but I'll I'll turn it to Susan to talk about any of the other pieces that might uh uh need to happen.

All depends on the on the resource mix and.

Certainly some of the generation resources can be built a lot more quickly than others.

The the biggest approval that we need is that Corporation Commission approval, which we expect to get by the end of this year. Um,

but on the, on the data center side, I think the main um,

So the customer would like to push the timelines, but you need to do your own sort of analysis on generation mix to come back to them with a solution.

Mark Jarvi: The customer would like to push the timelines, but you need to do your own sort of analysis on generation mix to come back to them with a solution. Is that right?

The main approval that they need is a permit to dig a well, which is a state permit. Um, this is on County Land.

Alright.

I would say we need to do the analysis on the overall grid impact and make sure that we have all the infrastructure in place to serve.

[Company Representative] (Fortis Inc.): I would say we need to do the analysis on the overall grid impact and make sure that we have all the infrastructure in place to serve the new customers as well as our existing customers as reliably and affordably as possible. I think in terms of what we would build, the customer will have a huge influence on that, right? If a customer wants to go, you know, primarily renewable, that would be their decision and based on what they're willing to pay in terms of resource mix. You know, we're willing to build whatever they need, whatever they prefer, as long as the customer is willing to pay for that incremental cost of, you know, maybe increasing the amount of renewable resources.

Susan Gray: I would say we need to do the analysis on the overall grid impact and make sure that we have all the infrastructure in place to serve the new customers as well as our existing customers as reliably and affordably as possible. I think in terms of what we would build, the customer will have a huge influence on that, right? If a customer wants to go, you know, primarily renewable, that would be their decision and based on what they're willing to pay in terms of resource mix. You know, we're willing to build whatever they need, whatever they prefer, as long as the customer is willing to pay for that incremental cost of, you know, maybe increasing the amount of renewable resources.

New customers as well as our existing customers as reliably and affordably as possible.

I think in terms of what we would build the customer will have a huge influence on that right. So if a customer wants to go.

And um, and the state would actually approve the water. Um and that's water just for regular building, use like kitchens and bathrooms kinds of things. So, that's for the first 300 megawatts. I would say anything beyond that, we're still negotiating contracts. And so, um,

you know, not really sure what the

Primarily renewable that would be their decision and based on what they are willing to pay in terms of.

Resource mix.

We're willing to build whatever they need wherever they prefer as long as the customers willing to pay for that incremental cost of them.

types of approvals we would need. But certainly, um, anything beyond this first contract, we would need to build something new in terms of an generation resource.

Maybe increasing the amount of renewable resources.

so that's going to, you know, be a more extended period of time as Dave talked about earlier, you know, it all depends on the, on the resource mix and um,

Understood and then Jonathan a question for you just in terms of the funding plan for next five years does it contemplate further hybrid issuances and if yes can you kind of outlined roughly at the quantum.

Certainly some of the generation resources can be built a lot more quickly than others.

Mark Jarvi: Understood. Then, Jocelyn, a question for you, just in terms of the funding plan for the next five years, does it contemplate further hybrid issuances? If yes, can you kind of outline roughly the quantum?

Yeah. Thanks, Mark Yeah, no. We don't have any further hybrid included but we do have capacity so with that growth that we're talking about here today that is not in the plan should it come in the plan then it's possible that we will explore the hybrid market. When we look at that growth and we may and we may all.

So so the customer would like to push the timelines, but you need to do your own sort of analysis on generation, mix to come back to them with a solution.

Jocelyn Perry: Yeah. Thanks, Mark. Yeah, no, we don't have any further hybrid included, but we do have capacity. With that growth that we're talking about here today, that is not in the plan. Should it come in the plan, it's possible that we will explore the hybrid market when we look at that growth. We may also look at it regardless, depending on the market and how the hybrids are pricing relative to other instruments. Yeah, definitely an area that we're exploring.

So look at it.

Regardless, depending on the market and how the hybrids are pricing relative to other <unk>.

Instrument, so yes definitely an area that we're exploring.

Okay. Thanks very much.

The next question comes from John Mould with TD Cowen. Please go ahead.

Mark Jarvi: Okay. Thanks, everyone.

Betsy Operator: The next question comes from John Mould with TD Cowen. Please go ahead.

Operator: The next question comes from John Mould with TD Cowen. Please go ahead.

Is that right? I would say, I would say, we need to do the analysis on the overall grid impact and make sure that we have all the infrastructure in place to serve the new customers, as well as our existing customers as reliably and affordably as possible. Um, I I think in terms of what we would build the customer will have a huge influence on that, right? So if a customer wants to go, you know, primarily renewable, that would be their decision and and based on what they're willing to pay, uh, in terms of um, resource mix. So, you know, we're willing to build whatever, they need whatever they um, prefer. As long as the customers willing to pay for that incremental cost of um, you know,

Hi, good morning, everybody.

I'd like to take another stab on the large load front and a couple of places maybe just starting with the ITC and I'm not asking for a view on in service dates, but I'm. Just wondering if you could provide a little more detail on how the timing of the connection requests a paced and three gigawatts of growth that you've seen since.

Maybe in increasing the amount of renewable resources.

John Mould: Hi. Good morning, everybody. I'd like to take another stab on the large load front in a couple of places, maybe just starting with ITC. I'm not asking for a view on in-service dates, but I'm just wondering if you can provide a little more detail on how the timing of the connection requests are paced. You know, this 3 GW of growth that you've seen since last quarter, you know, in particular, the pacing of at least what customers are looking for.

Understood and then Jaws on a question for you just in terms of the funding plan for the next 5 years, does it contemplate further hybrid issuances and if you ask, can you kind of outline, roughly the quantum.

Since last quarter in particular, the pacing of at least what customers are looking for.

So are you asking like.

How soon they come in before they need it or.

David Hutchens: Are you asking like, how soon they come in before they need it? Or, just...

Yes, it does.

Pumping.

How soon they are seeking to get.

John Mould: Yeah. Just how soon they're seeking. Yeah, how soon they're seeking to get, you know, get connected. Like, just if I was trying to map out the timing of all those requests, is there a particular time period to which it's weighted?

If I was trying to map out the timing of all those requests is there a particular time period to which.

Yeah. Uh, thanks Mark. Yeah, no. We don't have any further hybrid included, but we do have capacity. So with that growth, that we're talking about here today, that is not in the plan. Should it come in the plan? Then it's possible that we will explore the, uh, hybrid Market. Uh, when we look at that growth and we met, and we may also look at it, uh, regardless, depending on the market and how the hybrids are pricing relative to other uh, instruments. So yeah, definitely an area that we're exploring.

Okay. Thanks everyone.

Weighted.

Yes.

I don't have any visibility to that Linda do you have a view on kind of the detailed Q.

The next question comes from John mold. With TD Cowen. Please go ahead.

David Hutchens: Yeah. I don't have any visibility to that. Linda, do you have a view on kind of the detailed queue, I guess, CODs that they're looking for?

I guess.

Cod's that theyre looking for.

Yeah look I mean, I think I would be sort of generalizing, but I think back to Dave I think an earlier comment you made is that once they all want to be connected as soon as possible. Certainly there is practical reality is just in terms of where they are looking to locate their facilities.

[Company Representative] (Fortis Inc.): Look, I mean, I think I would be sort of generalizing, but I think back to Dave, I think an earlier comment you made is that, look, they all want to be connected as soon as possible. Certainly, there's practical realities just in terms of, you know, where they are looking to locate their facilities. You know, are they co-located with existing transmission infrastructure? If not, what is the infrastructure that's necessary? You know, the MISO approval process to get that infrastructure through the MISO queue. You know, it's a difficult question.

Linda Blair: Look, I mean, I think I would be sort of generalizing, but I think back to Dave, I think an earlier comment you made is that, look, they all want to be connected as soon as possible. Certainly, there's practical realities just in terms of, you know, where they are looking to locate their facilities. You know, are they co-located with existing transmission infrastructure? If not, what is the infrastructure that's necessary? You know, the MISO approval process to get that infrastructure through the MISO queue. You know, it's a difficult question.

Are they co located with existing transmission infrastructure.

Hi, uh, good morning everybody. I'd, I'd like to take another stab on the, the large load, uh, front in a couple places, maybe just starting with uh, ITC. And I'm not asking for a view on on inservice dates, but I'm just wondering if you can provide a little more detail on how the timing of the connection requests are paced. And you know, this 3 gigawatts of growth that you've seen since since last quarter, you know, in particular, the the pacing of, of at least what customers are looking for.

If not what is the infrastructure that's necessary.

The MISO approval process to get that infrastructure through the MISO queue.

So are you are you asking like um how how how soon they come in before they need it or um just how you're speaking?

So it's a difficult question I guess I would generalize and say.

For the majority I would say of the conversations that we are involved with.

[Company Representative] (Fortis Inc.): I guess I would generalize and say, you know, for the majority, I would say, of the conversations that we are involved with, you know, with prospective customers, I would say that many of their, you know, requests as well as what is, you know, reasonably doable, we're looking at the outer years of that existing 5-year plan. Obviously, there's different ramp, you know, perspectives around those because some of them, you know, want to move more aggressively faster. You know, some of them, you know, are willing to, you know, be able to take what they can get as quickly as possible. I think it's a really difficult question to, you know, give any specificity on.

Linda Blair: I guess I would generalize and say, you know, for the majority, I would say, of the conversations that we are involved with, you know, with prospective customers, I would say that many of their, you know, requests as well as what is, you know, reasonably doable, we're looking at the outer years of that existing 5-year plan. Obviously, there's different ramp, you know, perspectives around those because some of them, you know, want to move more aggressively faster. You know, some of them, you know, are willing to, you know, be able to take what they can get as quickly as possible. I think it's a really difficult question to, you know, give any specificity on.

Yeah, how soon they're seeking to get you know, get connected. Like just if I was trying to map out the timing of all those requests is there a particular time period to which its weighted

With prospective customers I would say that many of their requests as well as what is reasonably doable.

Yeah, let let me I I I don't have the any visibility to that. Linda do you have a a view on on kind of the detailed queue? Um, I guess uh,

CDs that they're looking for.

We're looking at the outer years of that existing five year plan.

Obviously, there's different ramp.

Perspectives around those because some of them want to move more aggressively faster.

Some of them are are willing to be able to take what they can get.

As quickly as possible. So I think it's a really difficult question to give any specificity on but I would say.

At least for the existing conversations that we are engaged with I would say the majority of those requests are looking at the latter part of our existing five year plan so out into the 2008 2930 timeframe.

[Company Representative] (Fortis Inc.): I would say, you know, at least for the existing conversations that we are engaged with, I would say the majority of those requests are looking at the latter part of our existing five-year plan. Out into the 2028, 2029, 2030 timeframe. Hopefully that provides the context.

Linda Blair: I would say, you know, at least for the existing conversations that we are engaged with, I would say the majority of those requests are looking at the latter part of our existing five-year plan. Out into the 2028, 2029, 2030 timeframe. Hopefully that provides the context.

So hopefully that just.

On the Capex.

Yes, that's very helpful color. Thank you and then just on Arizona.

Jocelyn Perry: Yes, that's very helpful color. Thank you. Just on Arizona and the new IRPs that you're planning to file in 2026, you know, by what time would you need on the large load side to have something more definitive, you know, in place so that, you know, that's reflected in the broader IRP and also, you know, allows you to potentially demonstrate the rate benefits that could potentially, you know, come from that in the various IRP portfolios? Just wondering what the timing looks like there.

John Mould: Yes, that's very helpful color. Thank you. Just on Arizona and the new IRPs that you're planning to file in 2026, you know, by what time would you need on the large load side to have something more definitive, you know, in place so that, you know, that's reflected in the broader IRP and also, you know, allows you to potentially demonstrate the rate benefits that could potentially, you know, come from that in the various IRP portfolios? Just wondering what the timing looks like there.

And the new ERP.

Are you planning to file in 2026.

By what time would you need on the large load side to have something more definitive.

In place so that that's reflected in the broader RFP and also allows you to potentially.

Demonstrate the rate benefits that could potentially come from that in the various therapy portfolios just wondering what the timing looks like there.

Yes, so the IRB is going through its process they've had a couple of workshops and will continue.

David Hutchens: Yeah. The IRP is going through its process. They've had a couple workshops, and we'll continue more for through 2026 with a target of filing those integrated resource plans, I think, in August of next year. There will be a bunch of different resource portfolios based on, you know, different load growth scenarios with and without data centers. I think even if we file a integrated resource plan and it doesn't include something that we need later, we just update that, right? I mean, it's just, you know, that's basically putting a stake in the ground for sort of the bread and butter resources that we need to serve our load growth.

More for through 2026 with a target of filing those integrated resource plans I think in August of next year.

But there will be a bunch of different resource portfolios based on.

Existing 5-year plan. Um, obviously there's different ramp um, you know, perspectives around those because some of them, you know, want to move more aggressively faster, you know, some of them, you know, are you know, are willing to, you know, be able to take what they can get um, as quickly as possible. So I I think it's a really difficult question to, you know, give any specificity on. But I would say, you know, at least for the existing uh, conversations that we are engaged with. I would say the majority of those requests are looking at the latter part of our existing 5 year plan. So out into the 28, 2930 time frame.

Different load growth scenarios with and without data centers and I think even if we file.

so hopefully that that

<unk> integrated resource plan and it doesn't include something that we need later, we just we just update that right I mean, it's it's just.

That's basically putting a stake in the ground for sort of the bread and butter resources that we need to serve our load growth, but any of these.

Additional investments that would that we would see in need and require for.

David Hutchens: Any of these, additional investments that we would see and need and require for, additional data center growth, I kind of think of it as almost like its own little mini IRP and rate, and rate pace, that would have its own revenue requirement that would be served by or that would be met by these customers. It's a bit of a different model. You wouldn't necessarily need to put them all together. You know, it's not like we file this thing in August and say, Okay, we gotta close up shop.

Additional data center growth I kind of think of it as almost like its own little mini IRB and rate and rate base.

Yes, that's very helpful color. Uh, thank you. And then just on Arizona and the the new RP uh, irps that you're planning to file in 2026, you know, by what time would you need on the large load side to have something more definitive, you know, in place. So that, you know, that's reflected in the broader p. And also, you know, allows you to potentially demonstrate the rate benefits that that could potentially, you know, come from that in the various IP portfolios, just wondering what what the timing looks like there.

That would have its own revenue requirement that would be served by or there would be met by these customers. So it's a bit of a different model you wouldn't necessarily need to.

Put them all together and it's not like we filed this thing in August and say, Okay. We got to close up shop anymore, Datacenters that come in and ask us for energy. We can figure. This out I mean this is basically what we've been doing for the past couple of years, while we've had the 2023 integrated resource plan in effect as we still have these conversations look at how we can meet the load.

David Hutchens: Any more data centers that come in and ask us for energy, we can't figure this out. I mean, this is basically what we've been doing for the past, you know, couple of years while we've had the 2023 integrated resource plan in effect, is we still have these conversations, look at how we can meet the load, and then adjust accordingly.

And then adjust accordingly.

Okay.

Those are all my questions. Thanks, very much for all that color.

Jocelyn Perry: Okay. Those were all my questions. Thanks very much for all that color.

John Mould: Okay. Those were all my questions. Thanks very much for all that color.

But.

The next question comes from Patrick Kenny with National Bank Capital markets. Please go ahead.

David Hutchens: Bye.

Betsy Operator: The next question comes from Patrick Kenny with National Bank Financial. Please go ahead.

Operator: The next question comes from Patrick Kenny with National Bank Financial. Please go ahead.

Thank you good morning, everyone.

Looking at the rate base CAGR by utility.

Patrick Kenny: Thank you. Good morning, everyone. Just looking at the rate base CAGRs by utility and, you know, seeing Alberta and BC continuing to lag the 7% portfolio average. You touched on some upside in the Okanagan. I'm just wondering if there might be any other macro or, you know, political tailwinds that you're watching out for that, you know, might help these two utilities close the gap relative to the group average growth profile, say, over the next 3 to 5 years.

Seeing Alberta, and BC continuing to.

The leg the 7% portfolio average.

Yeah, so the the IRP is going through its process. They've had a couple workshops and we'll continue, uh, more for uh, through 20126 with a, with a target of filing, those integrated resource plans, I think in August of of next year, um, but there, there will be a bunch of different, um, resource portfolios, based on um you know, different load growth scenarios with and without data centers and I and I think you even if we file a integrated resource plan and it doesn't include something that we need later. We just we just update that, right? I mean it's it's just uh, you know, that's basically putting a stake in the ground for sort of the bread and butter uh resources that we need to serve our load growth. But any of these um additional Investments that would that we would see and need and require for um additional data center growth. I kind of think of it as almost like a its own little mini IRP and and rate and rate Pace um that would have its own Revenue. Requirement, that would be sir.

You touched on some upside in the oaken hogging, but I'm just wondering if there might be any other macro or political tailwind that you're watching out for that.

Might help these two utilities closed the gap relative.

Relative to the group average growth profile say over the next three to five years.

Oh, yeah for sure. So the oaken argon one is actually it's a smaller part of the BC utility portfolio, but I think has some some good substantial growth opportunities. There. So I know, we don't usually talk too much about the electric business NBC because of the gas business is so big but that does definitely have some additional.

David Hutchens: Oh, yeah, for sure. The Okanagan one is actually it's a smaller part of the BC utility portfolio, but I think has some good substantial growth opportunities there. I know we don't usually talk too much about the electric business in BC because the gas business is so big, but that does definitely have some additional opportunities there. On the LNG front, I mean, this is all about not just the extra upsized, I'll call it, storage tank that just got approved by the BCUC. That's one piece of additional investment. Also the additional LNG liquefaction capacity that we could put there for increased bunkering. Mostly for increased bunkering at that Tilbury site. There are some political tailwinds.

By or that would be met by these customers. So, it's a bit of a different model, you wouldn't necessarily need to put them all together. And, you know, it's not like we file this thing in August and say, okay, we got to close up shop, any more data centers that come in and ask us for energy, we can't figure this out. I mean, this is basically what we've been doing for the past. You know, couple of years while we've had the, the 2023 integrated resource plan and in effect, is we still have these conversations? Look at how we can meet the load and then adjust accordingly.

Okay. Um those are all my questions. Thanks very much for all that color.

Opportunities there and then on.

The LNG front I mean this is all about not just the the extra.

Kenny with National Bank Capital markets, please go ahead.

Thank you. Good morning everyone. Um,

Up sized I'll call. It storage tank that just got approved by the <unk> UC. That's that's that's one piece of additional investment, but also the additional LNG liquefaction capacity that we could put therefore.

You know seeing Alberta and BC continuing to to leg the 7% portfolio average. Um,

Increased.

Bunkering, most mostly for increase the increase bunkering at Tilbury site and there are some political tailwind as I know.

You touched on some upside in the Okanagan, but I'm just wondering if there might be any other macro or, you know, political Tailwind that you're watching out for that. Um,

You know, might help these 2 Utilities, close the gap.

There's been a lot of conversations about.

David Hutchens: I know, there's been a lot of conversations about the, you know, some major projects across Canada, related to, you know, trying to get the economy jump-started. I think maybe some of the more of those details might come out later today when the budget is released. There is some good emphasis on LNG investments in BC. We hope some of that, you know, bleeds down and has some good impact on looking at additional LNG investments for bunkering for BC. There are some investments there. I should note, I'll come to BC's defense here a little bit as well. You know, these things are cyclical, right?

Some major projects in.

Relative to the the group average growth profile, say over the next 3 to 5 years.

Across Canada related to.

Trying to get the economy Jumpstart I think maybe some of the more of those details might come out later today when the budget is released.

There is some good emphasis on LNG investments in NBC, we hope some of that bleed.

Bleeds down and has some some good impact on looking at additional LNG investments for Bunkering for for BC. So there are some investments there.

And I should note.

I'll come to BCS defense here, a little bit as well these things are cyclical right. So.

The load growth when you when you complete a bunch of big projects and then do a new five year plan it might not look as robust as the last one but believe me theres a lot of stuff in there David.

David Hutchens: The load growth when you complete a bunch of big projects and then do a new 5-year plan, it might not look as robust as the last one, but believe me, there's a lot of stuff in there. They've executed well on the past and look to, you know, add to that on a going-forward basis.

Oh yeah, for for sure. So the Okanagan 1 is is is actually it's a smaller part of the BC, utility portfolio, but I think has some some good substantial growth opportunities there. So well, I know we don't usually talk too much about the electric business in BC because of gas business is so big, but that does definitely have some additional uh, opportunities there. And then on, on the uh, LNG front, I mean this is all about not, not just the the, the extra, uh, upsized. I'll call it, uh, storage tank. That just got approved by the bcuc. That's, that's some that's 1 piece of additional investment but also the additional, uh, LNG liquefaction capacity that we could put there for, um, increase.

<unk> executed well on the past and look to add to that on a going forward basis.

Okay, that's great thanks for that David.

And then maybe for Jocelyn just just back on the funding plan.

Patrick Kenny: Okay. That's great. Thanks for that, David. Maybe for Jocelyn, just back on the funding plan. Looking at that five-year average cash flow to debt ratio of 12.4%, is that 40 basis points above S&P's threshold anyway? Is that where you'd like to see it on a sustained basis, or would you still like to see a little bit more cushion built over time? I guess maybe a different way to look at it, like how much dry powder might you have based on your debt metrics, to flex the capital program or to handle any further weakness in the Canadian dollar?

With me at that five year average cash flow to debt ratio of til.

12, 4% is that 40 basis points above S&P thresholds anyway is that where you'd like to see it on a sustained basis or would you still like to see a little bit more cushion built over time.

I guess, maybe a different way to look at it like how much dry powder.

Might you have based on your debt metrics to flex the capital program or <unk>.

To handle any further weakness in the Canadian dollar.

Yes.

Yeah. Thanks, Patrick Yes, Youre right the average for the S&P metric over the five years is 24, but as you get to the latter part of the plan, we're actually pushing more like 100 basis points and you've probably heard me say before that.

Jocelyn Perry: Thanks, Patrick. You're right. The average for the S&P metric over the 5 years is 12.4, but as you get to the latter part of the plan, we're actually pushing more like 100 basis points. You've probably heard me say before that, you know, that's sort of where we have been targeting our cushion. It gives us a lot of dry powder to have the flexibility to finance the projects that are not in our capital plan that we're talking here today. Yeah. This is a plan that sets us up nicely to actually get to that adequate ample cushion in the latter part of the plan.

Um, and and I should note, I'll I'll come to BC's defense here a little bit as well. You know, these things are cyclical, right? So, um, the, the load growth when you, when you complete a bunch of big projects and, uh, and then do a new 5-year plan. It might not look as robust as the last 1, but believe me, there's, there's a lot of stuff in there. Um, they've executed well, uh, on the past and uh, look to, you know, add to that on on the going forward basis.

Sort of where we have been targeting a cushion gives us a lot of dry powder to to have the flexibility to finance them.

The projects that are not in our capital plan that we're talking here today. So yes. So this is a plan that sets us up nicely to actually get to that adequate ample cushion in the latter part of the plan.

Okay, that's great. Thanks for that, David uh and then maybe for jobs and just just back on the funding plan. Um, looking at that 5 year, average cash flow to debt ratio of, uh,

12.4. Um, is that 40 basis points?

Ill actually say 100 basis points is actually a lot of cushion. So I feel comfortable really happened like 75 to 100 bps above the threshold of 12%.

Jocelyn Perry: I'll actually say 100 basis points is actually a lot of cushion, so I feel comfortable really having like 75 to 100 BPS above the threshold of 12%. We're getting there. It's this plan has actually improved over the prior year plan, which is a good thing. In large part, it came from the fact that we've done some asset dispositions and we've continued our DRIP. Yeah, the cushion is certainly met on average of 12.4, but we do get to the, I'm gonna call the ideal cushion by the latter part of the plan.

Above S&P threshold. Anyway, is that where you'd like to see it on a sustained basis? Or would you still like to see a little bit more cushion built over time?

We're getting there and so it's this plan has actually improved over the prior year plan, which is a good thing and in large part of that came from the fact that we've done some asset dispositions and we've continued our drip so.

I guess maybe a different way to look at it. Like how much dry powder? Um, might you have based on your debt metrics, uh, to flex the capital program or to handle any further weakness in the Canadian dollar.

Yes, the cushion is.

Certainly met an average of $12 four but we do we do get to the I'm going to call. The ideal Cushing by the latter part of the plan.

Okay, that's perfect. Thanks al.

Ben Pham: Okay. That's perfect. Thanks all.

Benjamin Pham: Okay. That's perfect. Thanks all.

Yeah, thanks Patrick. Yeah, you're right. The average for the S&P metric over the 5 years is 124. But as you get to the latter part of the plan, we're actually pushing more like a 100 basis points and you've probably heard me say before that, you know, that's sort of where we have been targeting our cushion. It gives us a lot of dry powder to to have the flexibility to

This concludes our question and answer session I would like to turn the conference back over to Mr. <unk> for any closing remarks.

Betsy Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Miss Amaya for any closing remarks.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Miss Amaya for any closing remarks.

Thank you Betsy we have nothing further at this time. Thank you everyone for participating in our third quarter results, our new five year capital outlook Conference call. Please contact IR should you need anything further and have a great day.

To finance um the projects that are not in our Capital plan that we're talking here today. So yeah. So this is a plan that sets us up nicely to actually get to that uh adequate ample cushion in the latter part of the plan.

Amaya Operator: Thank you, Betsy. We have nothing further at this time. Thank you everyone for participating in our Q3 results, a new five-year capital outlook conference call. Please contact IR should you need anything further, and have a great day.

Stephanie Amaimo: Thank you, Betsy. We have nothing further at this time. Thank you everyone for participating in our Q3 results, a new five-year capital outlook conference call. Please contact IR should you need anything further, and have a great day.

Yeah.

This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Betsy Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

I I'll actually say 100 basis points is actually a lot of cushion, so I feel comfortable, uh, really having like 75 to 100 bits above, the threshold of 12%, uh, and we're getting there. And so it's, uh, this plan is actually improved over the prior year plan, which is a good thing. And in large part, it came from the fact that we've done some asset dispositions and, uh, We've continued our drip. So yep. I the cushion is um, uh, certainly met on average of 12.4. But we do, we do get to the, I'm going to call the ideal cushion, by the latter part of the plan.

Okay, that's perfect. Thanks all

This concludes our question and answer session. I would like to turn the conference back over to miss Amayo for any closing remarks.

Thank you, Betsy. We have nothing further at this time. Thank you, everyone for participating. In our third quarter results, a new 5-year, Capitol Outlook conference call. Please contact IR. Should you need anything further and have a great day?

This brings to a close today's conference call, you may disconnect your lines.

Thank you for participating and have a pleasant day.

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