Fortis Inc. (FTS) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 2, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning, everyone. Thank you for standing by. My name is Michelle, and I will be your conference operator today. Welcome to the Fortis Q2 2023 Earnings Conference Call and Webcast. During this call, all participants will be in a listen-only mode. Following the presentation, there will be a question-and-answer session. [Operator Instructions]

At this time, I would like to turn the conference over to Stephanie Amaimo. Please go ahead, Stephanie.

Stephanie Amaimo

Thanks, Michelle, and good morning, everyone, and welcome to Fortis' second quarter 2023 results 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 slide show. Actual results can differ materially from the forecast projections included in the forward-looking information presented today.

All non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our second quarter 2023 MD&A. Also, unless otherwise specified, all financial information referenced is in Canadian dollars.

With that, I will turn the call over to David.

David Hutchens

Thank you, and good morning, everyone. Fortis continues to build on its strong momentum from the first quarter. Operationally, our utilities delivered safe and reliable service in the second quarter even with the extreme weather events in Western Canada. Notably, we replaced almost 1,000 poles and structures in Alberta damaged by wildfires. Fortunately, customer impacts were minimal given successful mitigation efforts and a strong response in restoration by the team. Our regulated rate base growth has supported EPS through the first-half of 2023 as we have invested capital of approximately CAD 2 billion. Our investments continue to focus on modernizing the grid, enhancing system reliability, and delivering cleaner energy.

During the quarter, we continued to advance our sustainability priorities and regulatory proceedings, which we will speak to in more detail shortly. And lastly, the sale of Aitken Creek is on track to close in the second-half of 2023, subject to approval from the British Columbia Utilities Commission.

Today, we released our 2023 Sustainability Update Report, which includes our key ESG performance indicators for 2022. The report highlights our 29% reduction in Scope 1 greenhouse gas emissions, since 2019. This marks significant progress towards Fortis' greenhouse gas reduction targets of 50% by 2030, 75% by 2035, and net zero by 2050. For the first time, the report includes limited assurance by a third party on certain key performance indicators, including Scope 1 and 2 greenhouse gas emissions data. The report also highlights Fortis' advancement in diversity, equity, and inclusion.