Fortis Inc. Releases Environmental Report: Strong Results for a Cleaner Energy Future
ST. JOHN’S, NEWFOUNDLAND AND LABRADOR–(Marketwired – Jan. 8, 2018) -
Fortis Inc. (“Fortis” or the “Corporation”) (TSX:FTS)(NYSE:FTS) has released its latest Environmental Report, detailing its commitment to environment and sustainability. Among other initiatives, the report outlines the shift to lower carbon energy resources in its business in Arizona, and highlights the capital investment plan that supports renewable energy resources and the delivery of cleaner energy.
“Delivering cleaner energy is a key strategic initiative for Fortis as we strive to meet the expectations of our customers and shareholders,” said Barry Perry, President and Chief Executive Officer, Fortis. “As a result, we have elevated our focus on sustainability by recently announcing that Executive Vice President Nora Duke assumed responsibility for enterprise-wide sustainability and stewardship priorities. The Corporation has also increased its communication with investors on environment and sustainability matters, and produced a second Environmental Report in a 12-month period to accelerate and improve our environmental disclosure.”
Transmission and distribution represents 91% of Fortis assets. The remaining 9% includes generation assets – 6% is fossil fuel-based generation and 3% is renewable generation.
“Fortis is primarily a transmission and distribution company with limited fossil fuel-based generation. As a result, our impact on the environment is limited,” said Nora Duke, Executive Vice President, Sustainability and Chief Human Resource Officer, Fortis. “One of our priorities is facilitating more renewable energy onto the electricity grid while maintaining a safe, reliable system.”
Environmental Initiatives and Accomplishments
Significant effort is being deployed to reduce fossil fuel-based generation and move to cleaner or renewable energy. Some of the highlights from the Environmental Report include:
- Delivering cleaner energy is a strong focus in our $14.5 billion five-year capital investment plan.
- All of our operating utilities have comprehensive Environmental Management Systems in place, the majority of which are ISO 14001 compliant.
- Total Greenhouse Gases (“GHG”) emitted per million dollars of revenue has decreased by 10% during the last three years (2014-2016). This downward trend is expected to continue.
- Tucson Electric Power (“TEP”) anticipates a 36% (508 megawatt) reduction in coal-fired generation over the next five years through planned plant retirements.
- TEP has realized a 16% total CO2 emission reduction from its 2006 baseline year to 2017, and the goal is to have a 30% emissions reduction by 2030.
- In the last three years (2014-2016), the percentage of coal used from energy production at TEP has decreased by more than 17%. During the same period, the percentage of GHG emissions related to coal-owned generation decreased by 11%.
- Total gross solar energy generation by Fortis has increased from 33 gigawatt hours (“GWh”) in 2014 to 82 GWh in 2016.
- At Maritime Electric, our Prince Edward Island utility, approximately 23% of electricity delivered comes from local wind farms – a level unmatched in any other Canadian province.
- At ITC Holdings Corp., our Michigan-based utility, 6,424 megawatts of wind energy production capacity is currently connected to the utility’s systems in Iowa, Minnesota, Michigan, Kansas and Oklahoma, with an additional 1,986 megawatts planned.
- UniSource Energy Services in Arizona more than doubled its renewable generating capacity in July 2016 with a solar and wind expansion project near Willcox, Arizona.
- At the end of 2016, 6,645 homes, businesses and municipalities within our New York State utility’s service territory had installed grid-connected solar electric systems, representing nearly 61 megawatts of installed capacity.
- FortisBC was the first utility in North America to offer Renewable Natural Gas (“RNG”) to customers. The utility turns organic waste from sources such as landfill sites into biogas that is then upgraded and injected into the existing system. Consumption of RNG in 2016 avoided 8,117 tonnes of CO2 emissions, the equivalent of removing 1,715 cars from the road.
- FortisBC plans to supply Liquefied Natural Gas (“LNG”) to ship operators that choose to convert from higher emitting fuels. Converting just one ocean-going tanker, cruise ship, or container ship to run on LNG instead of heavy fuel oil will reduce GHG emissions by about 93,500 tonnes annually, equivalent to taking more than 19,800 vehicles off the road.
- FortisBC estimates that 260,000 megawatt hours of electricity and 2,760,000 gigajoules of natural gas have been saved by customers through efficiency programs in the 2016 calendar year alone.
- The Wataynikaneyap project we are pursuing in partnership with First Nation communities in remote northwestern Ontario would connect these communities to the grid for the first time, moving away from dependence on diesel power generation and allowing for a reduction in GHG emissions.
Fortis includes “forward-looking information” in this media release within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information”). Forward-looking information included in this transcript reflects the expectations of Fortis management regarding future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipates”, “believes”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “might”, “plans”, “projects”, “schedule”, “should”, “target”, “will”, “would” and the negative of these terms and other similar terminology or expressions have been used to identify forward-looking information, which includes, without limitation: expected reduction in coal-fired generation at TEP resulting from planned plant retirements over the next five years; the expectation that total GHG emitted per million dollars of revenue will continue to decrease; plans at FortisBC to supply LNG to ship operators that convert from higher emitting fuels and the Corporation’s consolidated capital spending for the five-year period from 2018 through 2022.
Forward-looking information involves significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Such risk factors or assumptions include, but are not limited to: uncertainty regarding the outcome of regulatory proceedings of the Corporation’s utilities and the expectation of regulatory stability; no material capital project and financing cost overrun related to any of the Corporation’s capital projects; sufficient human resources to deliver service and execute the capital program; and no significant changes in laws and regulations that may materially negatively affect the Corporation and its subsidiaries. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by Fortis with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information included in this media release is given as of the date of this media release and Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Fortis is a leader in the North American regulated electric and gas utility industry with total assets of approximately C$47 billion as of September 30, 2017. The Corporation’s more than 8,000 employees serve utility customers in five Canadian provinces, nine U.S. states and three Caribbean countries.
Ms. Stephanie Amaimo
Vice President, Investor Relations
Ms. Karen McCarthy
Director, Communications & Corporate Affairs