This news release constitutes a "Designated News Release" incorporated by reference in the prospectus supplement dated September 19, 2023 to Fortis' short form base shelf prospectus dated November 21, 2022. ST. JOHN'S, Newfoundland and Labrador, May 01, 2024 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (NYSE:FTS), a well-diversified leader in the North American regulated electric and gas utility industry, released its first quarter results.1 Highlights First quarter net earnings of $459 million or $0.93 per common share, up from $437 million or $0.90 per common share in 2023 Adjusted net earnings per common share2 of $0.93, up from $0.91 in the first quarter of 2023 Capital expenditures2 of $1.1 billion in the first quarter; $4.8 billion annual capital plan on track 2024 Climate Report released in March 2024 "We extended our solid growth momentum through the first quarter of 2024, underpinned by the strength of our diversified transmission and distribution business," said David Hutchens, President and Chief Executive Officer, Fortis. "With initiatives like the 2024 Climate Report, we continue to focus on delivering a cleaner energy future while providing reliable and affordable energy." Net EarningsThe Corporation reported net earnings attributable to common equity shareholders ("Net Earnings") of $459 million for the first quarter, or $0.93 per common share, compared to $437 million, or $0.90 per common share for the first quarter of 2023. Growth in earnings was due to the timing of recognition of new cost of capital parameters approved for the FortisBC utilities in September 2023, retroactive to January 1, 2023, as well as rate base growth across our utilities. The increase was partially offset by higher holding company costs and the November 1, 2023 disposition of Aitken Creek. Although the disposition of Aitken Creek was unfavourable to the change in earnings for the first quarter, the impact will be neutral for the annual period. In addition, the change in earnings per share reflected an increase in the weighted average number of common shares outstanding, largely associated with the Corporation's dividend reinvestment plan. Adjusted Net Earnings2There were no adjustments to Net Earnings in the first quarter of 2024. In the first quarter of 2023, there was a $2 million adjustment to Net Earnings, or $0.01 per common share, associated with mark-to-market accounting of natural gas derivatives at Aitken Creek. Capital Expenditures Our $4.8 billion annual capital plan is on track with $1.1 billion invested in the first quarter. In March 2024, the Midcontinent Independent System Operator, Inc. ("MISO") released a draft portfolio including a preliminary map of tranche two long-range transmission plan ("LRTP") projects, with transmission investments in the MISO Midwest subregion estimated in the range of US$17 billion to US$23 billion. MISO Board approval of the final portfolio is expected in the second half of 2024. In March 2024, an environmental assessment certificate was issued by the Province of British Columbia for the Tilbury Marine Jetty project. The construction of the jetty supports further expansion of the Tilbury liquefied natural gas ("LNG") facility, which is uniquely positioned to meet customer demand for natural gas. The site is scalable and can accommodate additional storage and liquefaction equipment and is close to international shipping lanes. Once constructed, the jetty would utilize FortisBC Energy's assets at the Tilbury site to service marine bunkering. A federal environmental assessment certificate remains outstanding.____________________ 1 Financial information is presented in Canadian dollars unless otherwise specified.2 Non-U.S. GAAP Financial Measures - Fortis uses financial measures that do not have a standardized meaning under generally accepted accounting principles in the United States of America ("U.S. GAAP") and may not be comparable to similar measures presented by other entities. Fortis presents these non-U.S. GAAP measures because management and external stakeholders use them in evaluating the Corporation's financial performance and prospects. Refer to the Non-U.S. GAAP Reconciliation provided herein.Regulatory UpdatesIn March 2024, the Iowa District Court issued an order denying all motions for reconsideration with respect to its decision on the Iowa right of first refusal ("ROFR") statute, including ITC's motion seeking reconsideration of the scope of the related injunction. In April 2024, ITC appealed the District Court's order to the Iowa Supreme Court. MISO's decision with respect to the assignment of the tranche one LRTP projects was finalized in July 2022, and we believe it is unlikely that MISO will change this designation. Further, under the MISO tariff, approximately 70% of the Iowa tranche one projects are upgrades to ITC facilities along existing rights-of-way, which under MISO's tariff grants ITC the option to construct the upgrades regardless of the outcome of the appeal to the Iowa Supreme Court. Until there is more certainty around the resolution of these matters, we cannot predict the impact on the timing of capital expenditures related to the LRTP tranche one Iowa projects. In April 2024, the FortisBC utilities filed an application requesting approval of a rate framework for 2025 through 2027. The rate framework builds upon the current multi-year rate plan and includes a prescribed approach for operating expenses and capital investment, an innovation fund for cleaner energy, and continued earnings sharing mechanisms. The regulatory process will continue throughout 2024. SustainabilityThe Corporation released its 2024 Climate Report in March 2024. The report provides climate scenario analysis using low and ...