Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | Fortis Inc. |
Entity Address, Address Line Three | Fortis Place |
Entity Address, Address Line Two | Suite 1100 |
Entity Address, Address Line One | 5 Springdale Street |
Entity Address, City or Town | St. John's |
Entity Address, State or Province | NL |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | A1E 0E4 |
Entity Central Index Key | 0001666175 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Interim
Condensed Consolidated Interim Balance Sheets (Unaudited) - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 338 | $ 131 | |
Accounts receivable and other current assets (Note 5) | 1,657 | 1,511 | |
Prepaid expenses | 96 | 116 | |
Inventories | 533 | 478 | |
Regulatory assets (Note 6) | 559 | 492 | |
Total current assets | 3,183 | 2,728 | |
Other assets | 1,076 | 955 | |
Regulatory assets (Note 6) | 3,277 | 3,097 | |
Property, plant and equipment, net | 39,113 | 37,816 | |
Intangible assets, net | 1,394 | 1,343 | |
Goodwill | 11,911 | 11,720 | |
Total assets | 59,954 | 57,659 | |
Current liabilities | |||
Short-term borrowings (Note 7) | 413 | 247 | |
Accounts payable and other current liabilities | 2,347 | 2,570 | |
Regulatory liabilities (Note 6) | 484 | 357 | |
Current installments of long-term debt (Note 7) | 1,743 | 1,628 | |
Total current liabilities | 4,987 | 4,802 | |
Regulatory liabilities (Note 6) | 3,048 | 2,865 | |
Deferred income taxes | 3,805 | 3,627 | |
Long-term debt (Note 7) | 24,557 | 23,707 | |
Finance leases | 333 | 333 | |
Other liabilities | 1,364 | 1,409 | |
Total liabilities | 38,094 | 36,743 | |
Commitments and contingencies (Note 13) | |||
Equity | |||
Common shares | [1] | 14,465 | 14,237 |
Preference shares | 1,623 | 1,623 | |
Additional paid-in capital | 8 | 10 | |
Accumulated other comprehensive income (loss) | 235 | (40) | |
Retained earnings | 3,837 | 3,458 | |
Shareholders' equity | 20,168 | 19,288 | |
Non-controlling interests | 1,692 | 1,628 | |
Total equity | 21,860 | 20,916 | |
Total liabilities and equity | $ 59,954 | $ 57,659 | |
[1]No par value. Unlimited authorized shares. 478.7 million and 474.8 million issued and outstanding as at June 30, 2022 and December 31, 2021, respectively. |
Condensed Consolidated Interi_2
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parenthetical) - shares shares in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 478.7 | 474.8 |
Common stock, shares outstanding (in shares) | 478.7 | 474.8 |
Condensed Consolidated Interi_3
Condensed Consolidated Interim Statements of Earnings (Unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,487 | $ 2,130 | $ 5,322 | $ 4,669 |
Expenses | ||||
Energy supply costs | 797 | 593 | 1,880 | 1,442 |
Operating expenses | 659 | 611 | 1,328 | 1,261 |
Depreciation and amortization | 417 | 369 | 824 | 741 |
Total expenses | 1,873 | 1,573 | 4,032 | 3,444 |
Operating income | 614 | 557 | 1,290 | 1,225 |
Other income, net (Note 9) | 35 | 42 | 77 | 92 |
Finance charges | 266 | 255 | 524 | 507 |
Earnings before income tax expense | 383 | 344 | 843 | 810 |
Income tax expense | 53 | 48 | 120 | 118 |
Net earnings | 330 | 296 | 723 | 692 |
Net earnings attributable to: | ||||
Non-controlling interests | 30 | 27 | 57 | 52 |
Preference equity shareholders | 16 | 16 | 32 | 32 |
Net earnings attributable to common equity shareholders | 284 | 253 | 634 | 608 |
Net earnings | $ 330 | $ 296 | $ 723 | $ 692 |
Earnings per common share (Note 10) | ||||
Basic (CAD per share) | $ 0.59 | $ 0.54 | $ 1.33 | $ 1.30 |
Diluted (CAD per share) | $ 0.59 | $ 0.54 | $ 1.33 | $ 1.30 |
Condensed Consolidated Interi_4
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net earnings | $ 330 | $ 296 | $ 723 | $ 692 | |
Other comprehensive income (loss) | |||||
Unrealized foreign currency translation gains (losses) | [1] | 448 | (188) | 287 | (377) |
Other | [2] | 4 | 2 | 24 | 4 |
Other comprehensive income (loss) | 452 | (186) | 311 | (373) | |
Comprehensive income | 782 | 110 | 1,034 | 319 | |
Comprehensive income attributable to: | |||||
Non-controlling interests | 79 | 7 | 93 | 12 | |
Preference equity shareholders | 16 | 16 | 32 | 32 | |
Common equity shareholders | 687 | 87 | 909 | 275 | |
Comprehensive income | $ 782 | $ 110 | $ 1,034 | $ 319 | |
[1]Net of hedging activities and income tax recovery of $4 million and $3 million for the three and six months ended June 30, 2022, respectively (three and six months ended June 30, 2021 - income tax expense of $2 million and $4 million, respectively).[2]Net of income tax expense of $2 million and $10 million for the three and six months ended June 30, 2022, respectively (three and six months ended June 30, 2021 - $1 million) |
Condensed Consolidated Interi_5
Condensed Consolidated Interim Statements of Comprehensive Income (Unaudited) (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized foreign currency translation, tax expense (recovery) | $ (4) | $ 2 | $ (3) | $ 4 |
Other, tax expense | $ 2 | $ 1 | $ 10 | $ 1 |
Condensed Consolidated Interi_6
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||||
Net earnings | $ 330 | $ 296 | $ 723 | $ 692 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation - property, plant and equipment | 366 | 322 | 722 | 646 |
Amortization - intangible assets | 36 | 34 | 71 | 68 |
Amortization - other | 15 | 13 | 31 | 27 |
Deferred income tax expense | 32 | 19 | 55 | 65 |
Equity component, allowance for funds used during construction (Note 9) | (18) | (17) | (35) | (39) |
Other | 38 | 33 | 68 | 67 |
Change in working capital (Note 11) | (40) | 40 | (63) | (47) |
Cash from operating activities | 759 | 740 | 1,572 | 1,479 |
Investing activities | ||||
Additions to property, plant and equipment | (827) | (751) | (1,693) | (1,515) |
Additions to intangible assets | (58) | (39) | (107) | (79) |
Contributions in aid of construction | 22 | 20 | 61 | 34 |
Other | (55) | (50) | (95) | (98) |
Cash used in investing activities | (918) | (820) | (1,834) | (1,658) |
Financing activities | ||||
Proceeds from long-term debt, net of issuance costs | 816 | 1,032 | 1,645 | 1,126 |
Repayments of long-term debt and finance leases | (609) | (116) | (836) | (122) |
Borrowings under committed credit facilities | 1,562 | 1,001 | 2,986 | 2,268 |
Repayments under committed credit facilities | (1,552) | (1,417) | (3,152) | (2,572) |
Net change in short-term borrowings | 82 | 38 | 158 | 144 |
Issue of common shares, net of costs and dividends reinvested | 18 | 9 | 40 | 44 |
Dividends | ||||
Common shares, net of dividends reinvested | (164) | (150) | (324) | (297) |
Preference shares | (16) | (16) | (32) | (32) |
Subsidiary dividends paid to non-controlling interests | (11) | (10) | (31) | (28) |
Other | (2) | (14) | 7 | (5) |
Cash from financing activities | 124 | 357 | 461 | 526 |
Effect of exchange rate changes on cash and cash equivalents | 8 | 5 | 8 | 3 |
Change in cash and cash equivalents | (27) | 282 | 207 | 350 |
Cash and cash equivalents, beginning of period | 365 | 317 | 131 | 249 |
Cash and cash equivalents, end of period | $ 338 | $ 599 | $ 338 | $ 599 |
Condensed Consolidated Interi_7
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) - CAD ($) shares in Millions, $ in Millions | Total | Common Shares | Preference Shares | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interests |
Balance, beginning of period (shares) at Dec. 31, 2020 | 466.8 | ||||||
Balance, beginning of period at Dec. 31, 2020 | $ 20,284 | $ 13,819 | $ 1,623 | $ 11 | $ 34 | $ 3,210 | $ 1,587 |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net earnings | 692 | 640 | 52 | ||||
Other comprehensive income (loss) | (373) | (333) | (40) | ||||
Common shares issued (shares) | 4.4 | ||||||
Common shares issued | 219 | $ 221 | (2) | ||||
Subsidiary dividends paid to non-controlling interests | (28) | (28) | |||||
Dividends declared on common shares | (237) | (237) | |||||
Dividends on preference shares | (32) | (32) | |||||
Other | (3) | (1) | (2) | ||||
Balance, end of period (shares) at Jun. 30, 2021 | 471.2 | ||||||
Balance, end of period at Jun. 30, 2021 | 20,522 | $ 14,040 | 1,623 | 8 | (299) | 3,581 | 1,569 |
Balance, beginning of period (shares) at Mar. 31, 2021 | 469.4 | ||||||
Balance, beginning of period at Mar. 31, 2021 | 20,346 | $ 13,944 | 1,623 | 10 | (133) | 3,328 | 1,574 |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net earnings | 296 | 269 | 27 | ||||
Other comprehensive income (loss) | (186) | (166) | (20) | ||||
Common shares issued (shares) | 1.8 | ||||||
Common shares issued | 96 | $ 96 | |||||
Subsidiary dividends paid to non-controlling interests | (10) | (10) | |||||
Dividends on preference shares | (16) | (16) | |||||
Other | (4) | (2) | (2) | ||||
Balance, end of period (shares) at Jun. 30, 2021 | 471.2 | ||||||
Balance, end of period at Jun. 30, 2021 | 20,522 | $ 14,040 | 1,623 | 8 | (299) | 3,581 | 1,569 |
Balance, beginning of period (shares) at Dec. 31, 2021 | 474.8 | ||||||
Balance, beginning of period at Dec. 31, 2021 | 20,916 | $ 14,237 | 1,623 | 10 | (40) | 3,458 | 1,628 |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net earnings | 723 | 666 | 57 | ||||
Other comprehensive income (loss) | 311 | 275 | 36 | ||||
Common shares issued (shares) | 3.9 | ||||||
Common shares issued | 226 | $ 228 | (2) | ||||
Subsidiary dividends paid to non-controlling interests | (31) | (31) | |||||
Dividends declared on common shares | (255) | (255) | |||||
Dividends on preference shares | (32) | (32) | |||||
Other | 2 | 2 | |||||
Balance, end of period (shares) at Jun. 30, 2022 | 478.7 | ||||||
Balance, end of period at Jun. 30, 2022 | 21,860 | $ 14,465 | 1,623 | 8 | 235 | 3,837 | 1,692 |
Balance, beginning of period (shares) at Mar. 31, 2022 | 476.9 | ||||||
Balance, beginning of period at Mar. 31, 2022 | 20,994 | $ 14,354 | 1,623 | 8 | (168) | 3,553 | 1,624 |
Increase (Decrease) in Equity [Roll Forward] | |||||||
Net earnings | 330 | 300 | 30 | ||||
Other comprehensive income (loss) | 452 | 403 | 49 | ||||
Common shares issued (shares) | 1.8 | ||||||
Common shares issued | 110 | $ 111 | (1) | ||||
Subsidiary dividends paid to non-controlling interests | (11) | (11) | |||||
Dividends on preference shares | (16) | (16) | |||||
Other | 1 | 1 | |||||
Balance, end of period (shares) at Jun. 30, 2022 | 478.7 | ||||||
Balance, end of period at Jun. 30, 2022 | $ 21,860 | $ 14,465 | $ 1,623 | $ 8 | $ 235 | $ 3,837 | $ 1,692 |
Condensed Consolidated Interi_8
Condensed Consolidated Interim Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared on common shares (CAD per share) | $ 0.535 | $ 0.505 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Nature of Operations Fortis Inc. ("Fortis" or the "Corporation") is a well-diversified North American regulated electric and gas utility holding company. Earnings for interim periods may not be indicative of annual results due to the impact of seasonal weather conditions on customer demand and market pricing, changes in foreign exchange rates and the timing and recognition of regulatory decisions. Earnings of the gas utilities tend to be highest in the first and fourth quarters due to space-heating requirements. Earnings of the electric distribution utilities in the U.S. tend to be highest in the second and third quarters due to the use of air conditioning and other cooling equipment. Entities within the reporting segments that follow operate with substantial autonomy. Regulated Utilities ITC: ITC Investment Holdings Inc., ITC Holdings Corp. and the electric transmission operations of its regulated operating subsidiaries, which include International Transmission Company, Michigan Electric Transmission Company, LLC, ITC Midwest LLC ("ITC Midwest") and ITC Great Plains, LLC. Fortis owns 80.1% of ITC and an affiliate of GIC Private Limited owns a 19.9% minority interest. UNS Energy: UNS Energy Corporation, which primarily includes Tucson Electric Power Company ("TEP"), UNS Electric, Inc. and UNS Gas, Inc. Central Hudson: CH Energy Group, Inc., which primarily includes Central Hudson Gas & Electric Corporation. FortisBC Energy: FortisBC Energy Inc. FortisAlberta: FortisAlberta Inc. FortisBC Electric: FortisBC Inc. Other Electric: Eastern Canadian and Caribbean utilities, as follows: Newfoundland Power Inc.; Maritime Electric Company, Limited; FortisOntario Inc.; a 39% equity investment in Wataynikaneyap Power Limited Partnership; an approximate 60% controlling interest in Caribbean Utilities Company, Ltd. ("Caribbean Utilities"); FortisTCI Limited and Turks and Caicos Utilities Limited (collectively "FortisTCI"); and a 33% equity investment in Belize Electricity Limited ("Belize Electricity"). Non-Regulated Energy Infrastructure: Long-term contracted generation assets in Belize and the Aitken Creek natural gas storage facility ("Aitken Creek") in British Columbia. Corporate and Other : Captures expenses and revenues not specifically related to any reportable segment and those business operations that are below the required threshold for segmented reporting, including net corporate expenses of Fortis and non-regulated holding company expenses. |
Regulatory Developments
Regulatory Developments | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Developments | REGULATORY DEVELOPMENTS Regulation of the Corporation's utilities is generally consistent with that disclosed in Note 2 of the Corporation's annual audited consolidated financial statements ("2021 Annual Financial Statements"). A summary of significant regulatory developments year-to-date 2022 follows. ITC ITC Midwest Capital Structure Complaint: In May 2022, the Iowa Coalition for Affordable Transmission, including Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, filed a complaint with the Federal Energy Regulatory Commission ("FERC") under Section 206 of the Federal Power Act requesting that ITC Midwest's common equity component of capital structure be reduced from 60% to 53%. The complaint alleges that ITC Midwest does not meet FERC's three-part test for authorizing the use of the utility's actual capital structure for rate-making purposes. ITC Midwest filed a response to the complaint in June 2022. As at June 30, 2022, ITC Midwest has not recorded a regulatory liability related to the complaint. The timing and outcome of this proceeding is unknown. UNS Energy TEP General Rate Application: In June 2022, TEP filed a general rate application with the Arizona Corporation Commission requesting new rates effective September 1, 2023 using a December 31, 2021 test year. The application reflects an allowed rate of return on common equity ("ROE") of 10.25%, an equity component of capital structure of 54%, and rate base of US$3.6 billion. The application also includes a US$136 million net increase in non-fuel and fuel-related revenue, as well as proposals to eliminate certain adjustor mechanisms, and modify an existing adjustor to provide more timely recovery of clean energy investments. The timing and outcome of this proceeding is unknown. FERC Rate Case: In March 2022, FERC approved the settlement agreement for formula transmission rates at TEP, including an ROE of 9.79%. FortisBC Energy and FortisBC Electric Generic Cost of Capital ("GCOC") Proceeding: The British Columbia Utilities Commission ("BCUC") has initiated a proceeding including a review of the common equity component of capital structure and the allowed ROE. FortisBC filed evidence with the BCUC in the first quarter of 2022 and the proceeding remains ongoing. The timing and outcome of this proceeding, including the effective date of any change in the cost of capital in 2023, remain unknown. FortisAlberta 2023 GCOC Proceeding: In March 2022, the Alberta Utilities Commission ("AUC") issued a decision extending the existing allowed ROE of 8.5% using a 37% equity component of capital structure through 2023. 2023 Cost of Service ("COS") Application: FortisAlberta filed its 2023 COS application in 2021 and the proceeding remains ongoing. A decision from the AUC is expected in the third quarter of 2022 . |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES These condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared and presented in accordance with accounting principles generally accepted in the United States of America for rate-regulated entities and are in Canadian dollars unless otherwise indicated. The Interim Financial Statements include the accounts of the Corporation and its subsidiaries and reflect the equity method of accounting for entities in which Fortis has significant influence, but not control, and proportionate consolidation for assets that are jointly owned with non-affiliated entities. Intercompany transactions have been eliminated, except for transactions between non-regulated and regulated entities in accordance with U.S. GAAP for rate-regulated entities. These Interim Financial Statements do not include all of the disclosures required in the annual financial statements and should be read in conjunction with the Corporation's 2021 Annual Financial Statements. In management's opinion, these Interim Financial Statements include all adjustments that are of a normal recurring nature, necessary for fair presentation. The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates. The accounting policies applied herein are consistent with those outlined in the Corporation's 2021 Annual Financial Statements. Future Accounting Pronouncements The Corporation considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. Any ASUs not included in these Interim Financial Statements were assessed and determined to be either not applicable to the Corporation or are not expected to have a material impact on the Interim Financial Statements. |
Segmented Information
Segmented Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segmented Information | SEGMENTED INFORMATION Fortis segments its business based on regulatory jurisdiction and service territory, as well as the information used by its President and Chief Executive Officer in deciding how to allocate resources. Segment performance is evaluated principally on net earnings attributable to common equity shareholders. Related-Party and Inter-Company Transactions Related-party transactions are in the normal course of operations and are measured at the amount of consideration agreed to by the related parties. There were no material related-party transactions for the three and six months ended June 30, 2022 and 2021. The lease of gas storage capacity and gas sales from Aitken Creek to FortisBC Energy of $7 million and $20 million for the three and six months ended June 30, 2022, respectively (three and six months ended June 30, 2021 - $7 million and $15 million, respectively) are inter-company transactions between non-regulated and regulated entities, which were not eliminated on consolidation. As at June 30, 2022, accounts receivable included approximately $11 million due from Belize Electricity (December 31, 2021 - $22 million). Regulated Non-Regulated Energy Inter- UNS Central FortisBC Fortis FortisBC Other Sub Infra- Corporate segment ($ millions) ITC Energy Hudson Energy Alberta Electric Electric Total structure and Other eliminations Total Quarter ended June 30, 2022 Revenue 468 648 281 396 169 108 384 2,454 33 — — 2,487 Energy supply costs — 272 101 181 — 18 224 796 1 — — 797 Operating expenses 120 167 143 88 42 33 52 645 8 6 — 659 Depreciation and amortization 94 92 26 75 61 17 47 412 4 1 — 417 Operating income 254 117 11 52 66 40 61 601 20 (7) — 614 Other income, net 10 3 15 5 — 1 1 35 — — — 35 Finance charges 83 30 13 35 28 19 19 227 — 39 — 266 Income tax expense 41 13 3 5 3 3 6 74 1 (22) — 53 Net earnings 140 77 10 17 35 19 37 335 19 (24) — 330 Non-controlling interests 26 — — — — — 4 30 — — — 30 Preference share dividends — — — — — — — — — 16 — 16 Net earnings attributable to common equity shareholders 114 77 10 17 35 19 33 305 19 (40) — 284 Additions to property, plant and equipment and intangible assets 272 159 65 134 119 30 100 879 6 — — 885 As at June 30, 2022 Goodwill 7,900 1,779 581 913 228 235 248 11,884 27 — — 11,911 Total assets 21,993 11,796 4,587 8,272 5,328 2,565 4,487 59,028 776 300 (150) 59,954 Quarter ended June 30, 2021 Revenue 418 556 207 317 162 108 353 2,121 9 — — 2,130 Energy supply costs — 204 59 108 — 22 199 592 1 — — 593 Operating expenses 115 153 116 88 39 33 48 592 9 10 — 611 Depreciation and amortization 70 83 22 70 58 16 45 364 4 1 — 369 Operating income 233 116 10 51 65 37 61 573 (5) (11) — 557 Other income, net 12 11 8 3 — 2 1 37 1 4 — 42 Finance charges 78 31 11 37 27 18 18 220 — 35 — 255 Income tax expense 41 13 1 2 2 4 6 69 1 (22) — 48 Net earnings 126 83 6 15 36 17 38 321 (5) (20) — 296 Non-controlling interests 23 — — — — — 4 27 — — — 27 Preference share dividends — — — — — — — — — 16 — 16 Net earnings attributable to common equity shareholders 103 83 6 15 36 17 34 294 (5) (36) — 253 Additions to property, plant and equipment and intangible assets 244 185 72 99 82 30 75 787 3 — — 790 As at June 30, 2021 Goodwill 7,609 1,713 559 913 228 235 242 11,499 27 — — 11,526 Total assets 20,307 11,218 3,899 7,722 5,157 2,474 4,216 54,993 723 358 (179) 55,895 4. SEGMENTED INFORMATION (cont'd) Regulated Non-Regulated Energy Inter- UNS Central FortisBC Fortis FortisBC Other Sub Infra- Corporate segment ($ millions) ITC Energy Hudson Energy Alberta Electric Electric Total structure and Other eliminations Total Year-to-date June 30, 2022 Revenue 928 1,186 656 1,090 336 237 843 5,276 46 — — 5,322 Energy supply costs — 482 263 535 — 61 536 1,877 3 — — 1,880 Operating expenses 243 329 292 171 84 66 105 1,290 20 18 — 1,328 Depreciation and amortization 186 181 51 150 121 34 91 814 8 2 — 824 Operating income 499 194 50 234 131 76 111 1,295 15 (20) — 1,290 Other income, net 19 6 30 9 1 3 3 71 — 6 — 77 Finance charges 163 61 26 71 54 37 37 449 — 75 — 524 Income tax expense 82 19 12 36 7 5 11 172 2 (54) — 120 Net earnings 273 120 42 136 71 37 66 745 13 (35) — 723 Non-controlling interests 50 — — — — — 7 57 — — — 57 Preference share dividends — — — — — — — — — 32 — 32 Net earnings attributable to common equity shareholders 223 120 42 136 71 37 59 688 13 (67) — 634 Additions to property, plant and equipment and intangible assets 607 321 129 264 230 60 178 1,789 11 — — 1,800 As at June 30, 2022 Goodwill 7,900 1,779 581 913 228 235 248 11,884 27 — — 11,911 Total assets 21,993 11,796 4,587 8,272 5,328 2,565 4,487 59,028 776 300 (150) 59,954 Year-to-date June 30, 2021 Revenue 844 1,078 492 903 320 228 766 4,631 38 — — 4,669 Energy supply costs — 404 140 362 — 61 473 1,440 2 — — 1,442 Operating expenses 232 330 247 172 78 63 97 1,219 18 24 — 1,261 Depreciation and amortization 142 166 45 141 115 32 90 731 8 2 — 741 Operating income 470 178 60 228 127 72 106 1,241 10 (26) — 1,225 Other income, net 21 27 17 5 1 3 1 75 1 16 — 92 Finance charges 157 59 23 73 53 36 36 437 — 70 — 507 Income tax expense 82 18 9 34 4 6 11 164 2 (48) — 118 Net earnings 252 128 45 126 71 33 60 715 9 (32) — 692 Non-controlling interests 46 — — — — — 6 52 — — — 52 Preference share dividends — — — — — — — — — 32 — 32 Net earnings attributable to common equity shareholders 206 128 45 126 71 33 54 663 9 (64) — 608 Additions to property, plant and equipment and intangible assets 546 337 133 192 186 58 138 1,590 4 — — 1,594 As at June 30, 2021 Goodwill 7,609 1,713 559 913 228 235 242 11,499 27 — — 11,526 Total assets 20,307 11,218 3,899 7,722 5,157 2,474 4,216 54,993 723 358 (179) 55,895 |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES The allowance for credit losses balance, which is recorded in accounts receivable and other current assets, changed as follows. Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Balance, beginning of period (53) (64) (53) (64) Credit loss expense (5) (1) (10) (8) Write-offs, net of recoveries 6 3 11 8 Foreign exchange (1) — (1) 2 Balance, end of period (53) (62) (53) (62) See Note 12 for disclosure on the Corporation's credit risk. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Regulatory Assets and Liabilities | REGULATORY ASSETS AND LIABILITIES Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2021 Annual Financial Statements. A summary follows. As at June 30, December 31, ($ millions ) 2022 2021 Regulatory assets Deferred income taxes 1,847 1,806 Rate stabilization and related accounts 453 339 Deferred energy management costs 404 384 Employee future benefits 384 388 Deferred lease costs 130 127 Generation early retirement costs 94 48 Manufactured gas plant site remediation deferral 93 96 Deferred storm costs (1) 53 17 Derivatives 25 20 Other regulatory assets 353 364 Total regulatory assets 3,836 3,589 Less: Current portion (559) (492) Long-term regulatory assets 3,277 3,097 Regulatory liabilities Deferred income taxes 1,293 1,289 Future cost of removal 1,240 1,217 Derivatives 204 52 Employee future benefits 195 196 Rate stabilization and related accounts 189 116 Renewable energy surcharge 111 107 Energy efficiency liability 87 83 AESO charges deferral (2) 44 15 Other regulatory liabilities 169 147 Total regulatory liabilities 3,532 3,222 Less: Current portion (484) (357) Long-term regulatory liabilities 3,048 2,865 (1) Includes incremental costs incurred at Central Hudson associated with restoration activities due to significant storm events. Incremental costs incurred in excess of that collected in customer rates are recovered through Central Hudson's rate stabilization account. (2) Represents the difference in amounts collected and incurred for transmission-related items at FortisAlberta that are expected to be refunded in future customer rates. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT As at June 30, December 31, ($ millions) 2022 2021 Long-term debt 25,300 24,177 Credit facility borrowings 1,155 1,305 Total long-term debt 26,455 25,482 Less: Deferred financing costs and debt discounts (155) (147) Less: Current installments of long-term debt (1,743) (1,628) 24,557 23,707 Long-Term Debt Issuances Interest Year-to-Date June 30, 2022 Month Rate Use of ($ millions, except as noted) Issued (%) Maturity Amount Proceeds ITC Secured first mortgage bonds January 2.93 2052 US 150 (1) (2) (3) (4) Secured senior notes May 3.05 2052 US 75 (1) (3) (4) UNS Energy Unsecured senior notes February 3.25 2032 US 325 (4) (5) Central Hudson Unsecured senior notes January 2.37 2027 US 50 (4) (5) Unsecured senior notes January 2.59 2029 US 60 (4) (5) FortisBC Electric Unsecured debentures March 4.16 2052 100 (1) Newfoundland Power First mortgage sinking fund bonds April 4.20 2052 75 (1) (4) (5) FortisAlberta Senior unsecured debentures May 4.62 2052 125 (1) Fortis Unsecured senior notes May 4.43 (6) 2029 500 (4) (7) (1) Repay credit facility borrowings (2) US$20 million to fund or refinance a portfolio of eligible green projects (3) Fund capital expenditures (4) General corporate purposes (5) Repay maturing long-term debt (6) The Corporation entered into cross-currency interest rate swaps to effectively convert the debt into US$391 million with an interest rate of 4.34% (Note 12) (7) Fund the June 2022 redemption of the Corporations $500 million, 2.85% senior unsecured notes due December 2023 In December 2020, Fortis filed a short-form base shelf prospectus with a 25-month life under which it may issue common or preference shares, subscription receipts or debt securities in an aggregate principal amount of up to $2.0 billion. As at June 30, 2022, $1.0 billion remained available under the short-form base shelf prospectus . As at Credit facilities Regulated Corporate June 30, December 31, ($ millions) Utilities and Other 2022 2021 Total credit facilities 3,568 2,021 5,589 4,846 Credit facilities utilized: Short-term borrowings (1) (413) — (413) (247) Long-term debt (including current portion) (2) (624) (531) (1,155) (1,305) Letters of credit outstanding (67) (72) (139) (115) Credit facilities unutilized 2,464 1,418 3,882 3,179 (1) The weighted average interest rate was 1.9% (December 31, 2021 - 0.6%). (2) The weighted average interest rate was 2.4% (December 31, 2021 - 0.9%). The current portion was $835 million (December 31, 2021 - $888 million). Credit facilities are syndicated primarily with large banks in Canada and the U.S., with no one bank holding more than approximately 20% of the Corporation's total revolving credit facilities. Approximately $5.4 billion of the total credit facilities are committed with maturities ranging from 2023 through 2027. See Note 14 in the 2021 Annual Financial Statements for a description of the credit facilities as at December 31, 2021. In April 2022, Central Hudson increased its total credit facilities available from US$200 million to US$250 million. In May 2022, the Corporation amended its unsecured $1.3 billion revolving term committed credit facility agreement to extend the maturity to July 2027, and to establish a sustainability-linked loan structure based on the Corporation’s achievement of targets for diversity on the Board of Directors and Scope 1 greenhouse gas emissions for 2022 through 2025. Maximum potential annual margin pricing adjustments are +/- 5 basis points and +/- 1 basis point for drawn and undrawn funds, respectively. Also in May 2022, the Corporation entered into an unsecured US$500 million non-revolving term cr edit facility. The facility has an initial one-year term and is repayable at any time without penalty. |
Employee Future Benefits
Employee Future Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Employee Future Benefits | EMPLOYEE FUTURE BENEFITS Fortis and each subsidiary maintain one or a combination of defined benefit pension plans and defined contribution pension plans, as well as other post-employment benefit ("OPEB") plans, including health and dental coverage and life insurance benefits, for qualifying members. The net benefit cost is detailed below. Defined Benefit Pension Plans OPEB Plans ($ millions) 2022 2021 2022 2021 Quarter ended June 30 Service costs 26 27 8 9 Interest costs 28 24 6 4 Expected return on plan assets (48) (43) (5) (4) Amortization of actuarial losses (gains) 1 9 (3) — Amortization of past service credits/plan amendments (1) (1) (1) — Regulatory adjustments (3) (1) 1 — Net benefit cost 3 15 6 9 Year-to-date June 30 Service costs 52 55 17 18 Interest costs 56 49 11 9 Expected return on plan assets (97) (88) (11) (9) Amortization of actuarial losses (gains) 2 18 (5) (1) Amortization of past service credits/plan amendments (1) (1) (1) — Regulatory adjustments (5) (1) 2 1 Net benefit cost 7 32 13 18 Defined contribution pension plan expense for the three and six months ended June 30, 2022 was $12 million and $26 million, respectively (three and six months ended June 30, 2021 - $10 million and $23 million, respectively). |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | OTHER INCOME, NET Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Non-service component of net periodic benefit cost 25 12 49 23 Equity component, allowance for funds used during construction 18 17 35 39 (Loss) gain on derivatives, net (2) 4 2 13 (Loss) gain on retirement investments (1) (9) 4 (17) 6 Other 3 5 8 11 35 42 77 92 (1) Includes investments that support supplemental retirement benefits at ITC, UNS Energy and Central Hudson. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Diluted earnings per share ("EPS") was calculated using the treasury stock method for stock options. 2022 2021 Net Earnings Weighted Net Earnings Weighted to Common Average to Common Average Shareholders Shares EPS Shareholders Shares EPS ($ millions) (# millions) ($) ($ millions) (# millions) ($) Quarter ended June 30 Basic EPS 284 477.8 0.59 253 470.2 0.54 Potential dilutive effect of stock options — 0.5 — 0.4 Diluted EPS 284 478.3 0.59 253 470.6 0.54 Year-to-date June 30 Basic EPS 634 476.8 1.33 608 469.0 1.30 Potential dilutive effect of stock options — 0.5 — 0.4 Diluted EPS 634 477.3 1.33 608 469.4 1.30 |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Cash Flow Information | SUPPLEMENTARY CASH FLOW INFORMATION Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Change in working capital Accounts receivable and other current assets 49 91 (46) 42 Prepaid expenses 17 26 22 23 Inventories (114) (25) (45) — Regulatory assets - current portion (31) — (43) (69) Accounts payable and other current liabilities 9 (41) 17 (11) Regulatory liabilities - current portion 30 (11) 32 (32) (40) 40 (63) (47) Non-cash investing and financing activities Accrued capital expenditures 380 327 380 327 Common share dividends reinvested 92 87 186 176 Contributions in aid of construction 12 13 12 13 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Risk Management | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Risk Management | FAIR VALUE OF FINANCIAL INSTRUMENTS AND RISK MANAGEMENT Derivatives The Corporation generally limits the use of derivatives to those that qualify as accounting, economic or cash flow hedges, or those that are approved for regulatory recovery. Derivatives are recorded at fair value with certain exceptions including those derivatives that qualify for the normal purchase and normal sale exception. Fair values reflect estimates based on current market information about the derivatives as at the balance sheet dates. The estimates cannot be determined with precision as they involve uncertainties and matters of judgment and, therefore, may not be relevant in predicting the Corporation's future consolidated earnings or cash flow. Cash flow associated with the settlement of all derivatives is included in operating activities on the condensed consolidated interim statements of cash flows. Energy Contracts Subject to Regulatory Deferral UNS Energy holds electricity power purchase contracts, customer supply contracts and gas swap contracts to reduce its exposure to energy price risk. Fair values are measured primarily under the market approach using independent third-party information, where possible. When published prices are not available, adjustments are applied based on historical price curve relationships, transmission costs and line losses. Central Hudson holds swap contracts for electricity and natural gas to minimize price volatility by fixing the effective purchase price. Fair values are measured using forward pricing provided by independent third-party information. FortisBC Energy holds gas supply contracts to fix the effective purchase price of natural gas. Fair values reflect the present value of future cash flows based on published market prices and forward natural gas curves. Unrealized gains or losses associated with changes in the fair value of these energy contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates, as permitted by the regulators. As at June 30, 2022, unrealized losses of $25 million (December 31, 2021 - $20 million) were recognized as regulatory assets and unrealized gains of $204 million (December 31, 2021 - $52 million) were recognized as regulatory liabilities. E nergy Contracts Not Subject to Regulatory Deferral UNS Energy holds wholesale trading contracts to fix power prices and realize potential margin, of which 10% of any realized gains is shared with customers through rate stabilization accounts. Fair values are measured using a market approach incorporating, where possible, independent third-party information. Aitken Creek holds gas swap contracts to manage its exposure to changes in natural gas prices, capture natural gas price spreads, and manage the financial risk posed by physical transactions. Fair values are measured using forward pricing from published market sources. Unrealized gains or losses associated with changes in the fair value of these energy contracts are recognized in revenue . For the three and six months ended June 30, 2022, unrealized gains of $19 million and $2 million, respectively were recognized in revenue (three and six months ended June 30, 2021 - unrealized losses of $8 million and $13 million, respectively). Total Return Swaps The Corporation holds total return swaps to manage the cash flow risk associated with forecast future cash settlements of certain stock-based compensation obligations. The swaps have a combined notional amount of $114 million and terms of one Foreign Exchange Contracts The Corporation holds U.S. dollar denominated foreign exchange contracts to help mitigate exposure to foreign exchange rate volatility. The contracts expire at varying dates through August 2023 and have a combined notional amount of $275 million. Fair value was measured using independent third-party information. Unrealized gains and losses associated with changes in fair value are recognized in other income, net. During the three and six months ended June 30, 2022, unrealized losses recognized in other income, net were $2 million (three and six months ended June 30, 2021 - unrealized losses of $4 million and $2 million, respectively). Interest Rate Swaps ITC has entered into interest rate swaps with a total notional value of US$450 million to manage the interest rate risk associated with the refinancing of long-term debt due in November 2022. The swaps have 5-year terms, include mandatory early termination provisions, and will be terminated no later than the effective date of November 15, 2022. Fair value was measured using a discounted cash flow method based on LIBOR or SOFR rates, as applicable. Unrealized gains and losses associated with the changes in fair value are recognized in other comprehensive income, and will be reclassified to earnings as a component of finance charges over the life of the debt. Unrealized gains of $13 million and $39 million, respectively were recorded for the three and six months ended June 30, 2022 (three and six months ended June 30, 2021 - $nil). Cross-Currency Interest Rate Swaps In May 2022, the Corporation entered into cross-currency interest rate swaps with a 7-year term to effectively convert its $500 million, 4.43% unsecured senior notes to US$391 million, 4.34% debt (Note 7). The Corporation designated this notional U.S. debt as an effective hedge of its foreign net investments and unrealized gains and losses associated with exchange rate fluctuations on the notional U.S. debt are recognized in other comprehensive income, consistent with the translation adjustment related to the net investments. Other changes in the fair value of the swaps are also recognized in other comprehensive income but are excluded from the assessment of hedge effectiveness. Fair value is measured using a discounted cash flow method based on SOFR rates. Unrealized losses of $12 million were recorded in other comprehensive income for the three and six months ended June 30, 2022. Other Investments UNS Energy holds investments in money market accounts, and ITC and Central Hudson hold investments in trust associated with supplemental retirement benefit plans for select employees, which include mutual funds and money market accounts. These investments are recorded at fair value based on quoted market prices in active markets. Gains and losses are recognized in other income, net. During the three and six months ended June 30, 2022 losses on these funds of $4 million and $9 million, respectively, were recognized in other income, net (three and six months ended June 30, 2021 - gains of $2 million and $2 million, respectively). Recurring Fair Value Measures The following table presents assets and liabilities that are accounted for at fair value on a recurring basis. ($ millions) Level 1 (1) Level 2 (1) Level 3 (1) Total As at June 30, 2022 Assets Energy contracts subject to regulatory deferral (2) (3) — 214 — 214 Energy contracts not subject to regulatory deferral (2) — 28 — 28 Foreign exchange contracts, total return, and interest rate swaps (2) — 54 — 54 Other investments (4) 271 — — 271 271 296 — 567 Liabilities Energy contracts subject to regulatory deferral (3) (5) (1) (35) — (36) Energy contracts not subject to regulatory deferral (5) — (16) — (16) Cross-currency interest rate swaps (5) — (12) — (12) (1) (63) — (64) As at December 31, 2021 Assets Energy contracts subject to regulatory deferral (2) (3) — 78 — 78 Energy contracts not subject to regulatory deferral (2) — 16 — 16 Foreign exchange contracts, total return, and interest rate swaps (2) 23 2 — 25 Other investments (4) 137 — — 137 160 96 — 256 Liabilities Energy contracts subject to regulatory deferral (3) (5) — (46) — (46) Energy contracts not subject to regulatory deferral (5) — (3) — (3) — (49) — (49) (1) Under the hierarchy, fair value is determined using: (i) level 1 - unadjusted quoted prices in active markets; (ii) level 2 - other pricing inputs directly or indirectly observable in the marketplace; and (iii) level 3 - unobservable inputs, used when observable inputs are not available. Classifications reflect the lowest level of input that is significant to the fair value measurement. (2) Included in accounts receivable and other current assets or other assets (3) Unrealized gains and losses arising from changes in fair value of these contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates as permitted by the regulators, with the exception of long-term wholesale trading contracts and certain gas swap contracts. (4) Included in cash and cash equivalents and other assets (5) Included in accounts payable and other current liabilities or other liabilities Energy Contracts The Corporation has elected gross presentation for its derivative contracts under master netting agreements and collateral positions, which apply only to its energy contracts. The following table presents the potential offset of counterparty netting. Gross Amount Counterparty Recognized in Netting of Cash Collateral ($ millions) Balance Sheet Energy Contracts Received/Posted Net Amount As at June 30, 2022 Derivative assets 242 29 62 151 Derivative liabilities (52) (29) — (23) As at December 31, 2021 Derivative assets 94 25 7 62 Derivative liabilities (49) (25) — (24) Volume of Derivative Activity As at June 30, 2022, the Corporation had various energy contracts that will settle on various dates through 2029. The volumes related to electricity and natural gas derivatives are outlined below. As at June 30, December 31, 2022 2021 Energy contracts subject to regulatory deferral (1) Electricity swap contracts (GWh) 446 509 Electricity power purchase contracts (GWh) 79 731 Gas swap contracts (PJ) 143 151 Gas supply contract premiums (PJ) 138 144 Energy contracts not subject to regulatory deferral (1) Wholesale trading contracts (GWh) 4,536 1,886 Gas swap contracts (PJ) 14 29 (1) GWh means gigawatt hours and PJ means petajoules. Credit Risk For cash equivalents, accounts receivable and other current assets, and long-term other receivables, credit risk is generally limited to the carrying value on the consolidated balance sheets. The Corporation's subsidiaries generally have a large and diversified customer base, which minimizes the concentration of credit risk. Policies in place to minimize credit risk include requiring customer deposits, prepayments and/or credit checks for certain customers, performing disconnections and/or using third-party collection agencies for overdue accounts. ITC has a concentration of credit risk as approximately 70% of its revenue is derived from three customers. The customers have investment-grade credit ratings and credit risk is further managed by the Midcontinent Independent System Operator, Inc. by requiring a letter of credit or cash deposit equal to the credit exposure, which is determined by a credit-scoring model and other factors. FortisAlberta has a concentration of credit risk as distribution service billings are to a relatively small group of retailers. Credit risk is managed by obtaining from the retailers either a cash deposit, letter of credit, an investment-grade credit rating, or a financial guarantee from an entity with an investment-grade credit rating. UNS Energy, Central Hudson, FortisBC Energy, Aitken Creek and the Corporation may be exposed to credit risk in the event of non-performance by counterparties to derivatives. Credit risk is managed by net settling payments, when possible, and dealing only with counterparties that have investment-grade credit ratings. At UNS Energy and Central Hudson, certain contractual arrangements require counterparties to post collateral. The value of derivatives in net liability positions under contracts with credit risk-related contingent features that, if triggered, could require the posting of a like amount of collateral was $64 million as at June 30, 2022 (December 31, 2021 - $59 million). Hedge of Foreign Net Investments The reporting currency of ITC, UNS Energy, Central Hudson, Caribbean Utilities, FortisTCI, Fortis Belize Limited (formerly Belize Electric Company Limited), and Belize Electricity is, or is pegged to, the U.S. dollar. The earnings and cash flow from, and net investments in, these entities are exposed to fluctuations in the U.S. dollar-to-Canadian dollar exchange rate. The Corporation has limited this exposure through hedging. As at June 30, 2022, US$2.7 billion (December 31, 2021 - US$2.2 billion) of corporately issued U.S. dollar-denominated long-term debt has been designated as an effective hedge of net investments, leaving approximately US$10.6 billion (December 31, 2021 - US$10.8 billion) unhedged. Exchange rate fluctuations associated with the hedged net investment in foreign subsidiaries and the debt serving as the hedge are recognized in accumulated other comprehensive income. Financial Instruments Not Carried at Fair Value Excluding long-term debt, the consolidated carrying value of the Corporation's remaining financial instruments approximates fair value, reflecting their short-term maturity, normal trade credit terms and/or nature. As at June 30, 2022, the carrying value of long-term debt, including current portion, was $26.5 billion (December 31, 2021 - $25.5 billion) compared to an estimated fair value of $24.9 billion (December 31, 2021 - $28.8 billion). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments There were no material changes in commitments from that disclosed in the Corporation's 2021 Annual Financial Statements except that in 2022, FortisBC Energy signed new long-term biomethane purchase agreements to acquire renewable natural gas. The 20-year agreements allow FortisBC Energy to purchase a maximum annual volume of 9.3 PJs of renewable natural gas and has increased gas purchase obligations from those disclosed as at December 31, 2021 as follows. As at June 30, 2022 ($ millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 Thereafter Gas purchase obligations 2,725 6 34 74 126 151 2,334 Contingencies In April 2013, FortisBC Holdings Inc. ("FHI") and Fortis were named as defendants in an action in the British Columbia Supreme Court by the Coldwater Indian Band ("Band") regarding interests in a pipeline right-of-way on reserve lands. The pipeline was transferred by FHI (then Terasen Inc.) to Kinder Morgan Inc. in 2007. The Band seeks cancellation of the right-of-way and damages for wrongful interference with the Band's use and enjoyment of reserve lands. In 2016, the Federal Court dismissed the Band's application for judicial review of the ministerial consent. In 2017, the Federal Court of Appeal set aside the minister's consent and returned the matter to the minister for redetermination. No amount has been accrued in the Interim Financial Statements as the outcome cannot yet be reasonably determined. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | These condensed consolidated interim financial statements ("Interim Financial Statements") have been prepared and presented in accordance with accounting principles generally accepted in the United States of America for rate-regulated entities and are in Canadian dollars unless otherwise indicated. |
Consolidation | The Interim Financial Statements include the accounts of the Corporation and its subsidiaries and reflect the equity method of accounting for entities in which Fortis has significant influence, but not control, and proportionate consolidation for assets that are jointly owned with non-affiliated entities. Intercompany transactions have been eliminated, except for transactions between non-regulated and regulated entities in accordance with U.S. GAAP for rate-regulated entities. |
Use of Accounting Estimates | The preparation of the Interim Financial Statements required management to make estimates and judgments, including those related to regulatory decisions, that affect the reported amounts of, and disclosures related to, assets, liabilities, revenues, expenses, gains, losses and contingencies. Actual results could differ materially from estimates. |
Future Accounting Pronouncements | The Corporation considers the applicability and impact of all Accounting Standards Updates ("ASUs") issued by the Financial Accounting Standards Board. Any ASUs not included in these Interim Financial Statements were assessed and determined to be either not applicable to the Corporation or are not expected to have a material impact on the Interim Financial Statements. |
Segmented Information (Tables)
Segmented Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Information by Reportable Segment | Regulated Non-Regulated Energy Inter- UNS Central FortisBC Fortis FortisBC Other Sub Infra- Corporate segment ($ millions) ITC Energy Hudson Energy Alberta Electric Electric Total structure and Other eliminations Total Quarter ended June 30, 2022 Revenue 468 648 281 396 169 108 384 2,454 33 — — 2,487 Energy supply costs — 272 101 181 — 18 224 796 1 — — 797 Operating expenses 120 167 143 88 42 33 52 645 8 6 — 659 Depreciation and amortization 94 92 26 75 61 17 47 412 4 1 — 417 Operating income 254 117 11 52 66 40 61 601 20 (7) — 614 Other income, net 10 3 15 5 — 1 1 35 — — — 35 Finance charges 83 30 13 35 28 19 19 227 — 39 — 266 Income tax expense 41 13 3 5 3 3 6 74 1 (22) — 53 Net earnings 140 77 10 17 35 19 37 335 19 (24) — 330 Non-controlling interests 26 — — — — — 4 30 — — — 30 Preference share dividends — — — — — — — — — 16 — 16 Net earnings attributable to common equity shareholders 114 77 10 17 35 19 33 305 19 (40) — 284 Additions to property, plant and equipment and intangible assets 272 159 65 134 119 30 100 879 6 — — 885 As at June 30, 2022 Goodwill 7,900 1,779 581 913 228 235 248 11,884 27 — — 11,911 Total assets 21,993 11,796 4,587 8,272 5,328 2,565 4,487 59,028 776 300 (150) 59,954 Quarter ended June 30, 2021 Revenue 418 556 207 317 162 108 353 2,121 9 — — 2,130 Energy supply costs — 204 59 108 — 22 199 592 1 — — 593 Operating expenses 115 153 116 88 39 33 48 592 9 10 — 611 Depreciation and amortization 70 83 22 70 58 16 45 364 4 1 — 369 Operating income 233 116 10 51 65 37 61 573 (5) (11) — 557 Other income, net 12 11 8 3 — 2 1 37 1 4 — 42 Finance charges 78 31 11 37 27 18 18 220 — 35 — 255 Income tax expense 41 13 1 2 2 4 6 69 1 (22) — 48 Net earnings 126 83 6 15 36 17 38 321 (5) (20) — 296 Non-controlling interests 23 — — — — — 4 27 — — — 27 Preference share dividends — — — — — — — — — 16 — 16 Net earnings attributable to common equity shareholders 103 83 6 15 36 17 34 294 (5) (36) — 253 Additions to property, plant and equipment and intangible assets 244 185 72 99 82 30 75 787 3 — — 790 As at June 30, 2021 Goodwill 7,609 1,713 559 913 228 235 242 11,499 27 — — 11,526 Total assets 20,307 11,218 3,899 7,722 5,157 2,474 4,216 54,993 723 358 (179) 55,895 4. SEGMENTED INFORMATION (cont'd) Regulated Non-Regulated Energy Inter- UNS Central FortisBC Fortis FortisBC Other Sub Infra- Corporate segment ($ millions) ITC Energy Hudson Energy Alberta Electric Electric Total structure and Other eliminations Total Year-to-date June 30, 2022 Revenue 928 1,186 656 1,090 336 237 843 5,276 46 — — 5,322 Energy supply costs — 482 263 535 — 61 536 1,877 3 — — 1,880 Operating expenses 243 329 292 171 84 66 105 1,290 20 18 — 1,328 Depreciation and amortization 186 181 51 150 121 34 91 814 8 2 — 824 Operating income 499 194 50 234 131 76 111 1,295 15 (20) — 1,290 Other income, net 19 6 30 9 1 3 3 71 — 6 — 77 Finance charges 163 61 26 71 54 37 37 449 — 75 — 524 Income tax expense 82 19 12 36 7 5 11 172 2 (54) — 120 Net earnings 273 120 42 136 71 37 66 745 13 (35) — 723 Non-controlling interests 50 — — — — — 7 57 — — — 57 Preference share dividends — — — — — — — — — 32 — 32 Net earnings attributable to common equity shareholders 223 120 42 136 71 37 59 688 13 (67) — 634 Additions to property, plant and equipment and intangible assets 607 321 129 264 230 60 178 1,789 11 — — 1,800 As at June 30, 2022 Goodwill 7,900 1,779 581 913 228 235 248 11,884 27 — — 11,911 Total assets 21,993 11,796 4,587 8,272 5,328 2,565 4,487 59,028 776 300 (150) 59,954 Year-to-date June 30, 2021 Revenue 844 1,078 492 903 320 228 766 4,631 38 — — 4,669 Energy supply costs — 404 140 362 — 61 473 1,440 2 — — 1,442 Operating expenses 232 330 247 172 78 63 97 1,219 18 24 — 1,261 Depreciation and amortization 142 166 45 141 115 32 90 731 8 2 — 741 Operating income 470 178 60 228 127 72 106 1,241 10 (26) — 1,225 Other income, net 21 27 17 5 1 3 1 75 1 16 — 92 Finance charges 157 59 23 73 53 36 36 437 — 70 — 507 Income tax expense 82 18 9 34 4 6 11 164 2 (48) — 118 Net earnings 252 128 45 126 71 33 60 715 9 (32) — 692 Non-controlling interests 46 — — — — — 6 52 — — — 52 Preference share dividends — — — — — — — — — 32 — 32 Net earnings attributable to common equity shareholders 206 128 45 126 71 33 54 663 9 (64) — 608 Additions to property, plant and equipment and intangible assets 546 337 133 192 186 58 138 1,590 4 — — 1,594 As at June 30, 2021 Goodwill 7,609 1,713 559 913 228 235 242 11,499 27 — — 11,526 Total assets 20,307 11,218 3,899 7,722 5,157 2,474 4,216 54,993 723 358 (179) 55,895 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses | The allowance for credit losses balance, which is recorded in accounts receivable and other current assets, changed as follows. Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Balance, beginning of period (53) (64) (53) (64) Credit loss expense (5) (1) (10) (8) Write-offs, net of recoveries 6 3 11 8 Foreign exchange (1) — (1) 2 Balance, end of period (53) (62) (53) (62) |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Regulated Operations [Abstract] | |
Schedule of Regulatory Assets | Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2021 Annual Financial Statements. A summary follows. As at June 30, December 31, ($ millions ) 2022 2021 Regulatory assets Deferred income taxes 1,847 1,806 Rate stabilization and related accounts 453 339 Deferred energy management costs 404 384 Employee future benefits 384 388 Deferred lease costs 130 127 Generation early retirement costs 94 48 Manufactured gas plant site remediation deferral 93 96 Deferred storm costs (1) 53 17 Derivatives 25 20 Other regulatory assets 353 364 Total regulatory assets 3,836 3,589 Less: Current portion (559) (492) Long-term regulatory assets 3,277 3,097 Regulatory liabilities Deferred income taxes 1,293 1,289 Future cost of removal 1,240 1,217 Derivatives 204 52 Employee future benefits 195 196 Rate stabilization and related accounts 189 116 Renewable energy surcharge 111 107 Energy efficiency liability 87 83 AESO charges deferral (2) 44 15 Other regulatory liabilities 169 147 Total regulatory liabilities 3,532 3,222 Less: Current portion (484) (357) Long-term regulatory liabilities 3,048 2,865 (1) Includes incremental costs incurred at Central Hudson associated with restoration activities due to significant storm events. Incremental costs incurred in excess of that collected in customer rates are recovered through Central Hudson's rate stabilization account. (2) Represents the difference in amounts collected and incurred for transmission-related items at FortisAlberta that are expected to be refunded in future customer rates. |
Schedule of Regulatory Liabilities | Detailed information about the Corporation's regulatory assets and liabilities is provided in Note 8 to the 2021 Annual Financial Statements. A summary follows. As at June 30, December 31, ($ millions ) 2022 2021 Regulatory assets Deferred income taxes 1,847 1,806 Rate stabilization and related accounts 453 339 Deferred energy management costs 404 384 Employee future benefits 384 388 Deferred lease costs 130 127 Generation early retirement costs 94 48 Manufactured gas plant site remediation deferral 93 96 Deferred storm costs (1) 53 17 Derivatives 25 20 Other regulatory assets 353 364 Total regulatory assets 3,836 3,589 Less: Current portion (559) (492) Long-term regulatory assets 3,277 3,097 Regulatory liabilities Deferred income taxes 1,293 1,289 Future cost of removal 1,240 1,217 Derivatives 204 52 Employee future benefits 195 196 Rate stabilization and related accounts 189 116 Renewable energy surcharge 111 107 Energy efficiency liability 87 83 AESO charges deferral (2) 44 15 Other regulatory liabilities 169 147 Total regulatory liabilities 3,532 3,222 Less: Current portion (484) (357) Long-term regulatory liabilities 3,048 2,865 (1) Includes incremental costs incurred at Central Hudson associated with restoration activities due to significant storm events. Incremental costs incurred in excess of that collected in customer rates are recovered through Central Hudson's rate stabilization account. (2) Represents the difference in amounts collected and incurred for transmission-related items at FortisAlberta that are expected to be refunded in future customer rates. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As at June 30, December 31, ($ millions) 2022 2021 Long-term debt 25,300 24,177 Credit facility borrowings 1,155 1,305 Total long-term debt 26,455 25,482 Less: Deferred financing costs and debt discounts (155) (147) Less: Current installments of long-term debt (1,743) (1,628) 24,557 23,707 Long-Term Debt Issuances Interest Year-to-Date June 30, 2022 Month Rate Use of ($ millions, except as noted) Issued (%) Maturity Amount Proceeds ITC Secured first mortgage bonds January 2.93 2052 US 150 (1) (2) (3) (4) Secured senior notes May 3.05 2052 US 75 (1) (3) (4) UNS Energy Unsecured senior notes February 3.25 2032 US 325 (4) (5) Central Hudson Unsecured senior notes January 2.37 2027 US 50 (4) (5) Unsecured senior notes January 2.59 2029 US 60 (4) (5) FortisBC Electric Unsecured debentures March 4.16 2052 100 (1) Newfoundland Power First mortgage sinking fund bonds April 4.20 2052 75 (1) (4) (5) FortisAlberta Senior unsecured debentures May 4.62 2052 125 (1) Fortis Unsecured senior notes May 4.43 (6) 2029 500 (4) (7) (1) Repay credit facility borrowings (2) US$20 million to fund or refinance a portfolio of eligible green projects (3) Fund capital expenditures (4) General corporate purposes (5) Repay maturing long-term debt (6) The Corporation entered into cross-currency interest rate swaps to effectively convert the debt into US$391 million with an interest rate of 4.34% (Note 12) (7) Fund the June 2022 redemption of the Corporations $500 million, 2.85% senior unsecured notes due December 2023 |
Schedule of Credit Facilities | As at Credit facilities Regulated Corporate June 30, December 31, ($ millions) Utilities and Other 2022 2021 Total credit facilities 3,568 2,021 5,589 4,846 Credit facilities utilized: Short-term borrowings (1) (413) — (413) (247) Long-term debt (including current portion) (2) (624) (531) (1,155) (1,305) Letters of credit outstanding (67) (72) (139) (115) Credit facilities unutilized 2,464 1,418 3,882 3,179 (1) The weighted average interest rate was 1.9% (December 31, 2021 - 0.6%). |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The net benefit cost is detailed below. Defined Benefit Pension Plans OPEB Plans ($ millions) 2022 2021 2022 2021 Quarter ended June 30 Service costs 26 27 8 9 Interest costs 28 24 6 4 Expected return on plan assets (48) (43) (5) (4) Amortization of actuarial losses (gains) 1 9 (3) — Amortization of past service credits/plan amendments (1) (1) (1) — Regulatory adjustments (3) (1) 1 — Net benefit cost 3 15 6 9 Year-to-date June 30 Service costs 52 55 17 18 Interest costs 56 49 11 9 Expected return on plan assets (97) (88) (11) (9) Amortization of actuarial losses (gains) 2 18 (5) (1) Amortization of past service credits/plan amendments (1) (1) (1) — Regulatory adjustments (5) (1) 2 1 Net benefit cost 7 32 13 18 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Non-service component of net periodic benefit cost 25 12 49 23 Equity component, allowance for funds used during construction 18 17 35 39 (Loss) gain on derivatives, net (2) 4 2 13 (Loss) gain on retirement investments (1) (9) 4 (17) 6 Other 3 5 8 11 35 42 77 92 (1) Includes investments that support supplemental retirement benefits at ITC, UNS Energy and Central Hudson. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Net Earnings to Common Shareholders | Diluted earnings per share ("EPS") was calculated using the treasury stock method for stock options. 2022 2021 Net Earnings Weighted Net Earnings Weighted to Common Average to Common Average Shareholders Shares EPS Shareholders Shares EPS ($ millions) (# millions) ($) ($ millions) (# millions) ($) Quarter ended June 30 Basic EPS 284 477.8 0.59 253 470.2 0.54 Potential dilutive effect of stock options — 0.5 — 0.4 Diluted EPS 284 478.3 0.59 253 470.6 0.54 Year-to-date June 30 Basic EPS 634 476.8 1.33 608 469.0 1.30 Potential dilutive effect of stock options — 0.5 — 0.4 Diluted EPS 634 477.3 1.33 608 469.4 1.30 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplementary Cash Flow Information | Quarter Year-to-Date ($ millions) 2022 2021 2022 2021 Periods ended June 30 Change in working capital Accounts receivable and other current assets 49 91 (46) 42 Prepaid expenses 17 26 22 23 Inventories (114) (25) (45) — Regulatory assets - current portion (31) — (43) (69) Accounts payable and other current liabilities 9 (41) 17 (11) Regulatory liabilities - current portion 30 (11) 32 (32) (40) 40 (63) (47) Non-cash investing and financing activities Accrued capital expenditures 380 327 380 327 Common share dividends reinvested 92 87 186 176 Contributions in aid of construction 12 13 12 13 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Risk Management (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy | The following table presents assets and liabilities that are accounted for at fair value on a recurring basis. ($ millions) Level 1 (1) Level 2 (1) Level 3 (1) Total As at June 30, 2022 Assets Energy contracts subject to regulatory deferral (2) (3) — 214 — 214 Energy contracts not subject to regulatory deferral (2) — 28 — 28 Foreign exchange contracts, total return, and interest rate swaps (2) — 54 — 54 Other investments (4) 271 — — 271 271 296 — 567 Liabilities Energy contracts subject to regulatory deferral (3) (5) (1) (35) — (36) Energy contracts not subject to regulatory deferral (5) — (16) — (16) Cross-currency interest rate swaps (5) — (12) — (12) (1) (63) — (64) As at December 31, 2021 Assets Energy contracts subject to regulatory deferral (2) (3) — 78 — 78 Energy contracts not subject to regulatory deferral (2) — 16 — 16 Foreign exchange contracts, total return, and interest rate swaps (2) 23 2 — 25 Other investments (4) 137 — — 137 160 96 — 256 Liabilities Energy contracts subject to regulatory deferral (3) (5) — (46) — (46) Energy contracts not subject to regulatory deferral (5) — (3) — (3) — (49) — (49) (1) Under the hierarchy, fair value is determined using: (i) level 1 - unadjusted quoted prices in active markets; (ii) level 2 - other pricing inputs directly or indirectly observable in the marketplace; and (iii) level 3 - unobservable inputs, used when observable inputs are not available. Classifications reflect the lowest level of input that is significant to the fair value measurement. (2) Included in accounts receivable and other current assets or other assets (3) Unrealized gains and losses arising from changes in fair value of these contracts are deferred as a regulatory asset or liability for recovery from, or refund to, customers in future rates as permitted by the regulators, with the exception of long-term wholesale trading contracts and certain gas swap contracts. (4) Included in cash and cash equivalents and other assets (5) Included in accounts payable and other current liabilities or other liabilities |
Derivative Asset Contracts Under Master Netting Agreements and Collateral Positions | The Corporation has elected gross presentation for its derivative contracts under master netting agreements and collateral positions, which apply only to its energy contracts. The following table presents the potential offset of counterparty netting. Gross Amount Counterparty Recognized in Netting of Cash Collateral ($ millions) Balance Sheet Energy Contracts Received/Posted Net Amount As at June 30, 2022 Derivative assets 242 29 62 151 Derivative liabilities (52) (29) — (23) As at December 31, 2021 Derivative assets 94 25 7 62 Derivative liabilities (49) (25) — (24) |
Derivative Liability Contracts Under Master Netting Agreements and Collateral Positions | The Corporation has elected gross presentation for its derivative contracts under master netting agreements and collateral positions, which apply only to its energy contracts. The following table presents the potential offset of counterparty netting. Gross Amount Counterparty Recognized in Netting of Cash Collateral ($ millions) Balance Sheet Energy Contracts Received/Posted Net Amount As at June 30, 2022 Derivative assets 242 29 62 151 Derivative liabilities (52) (29) — (23) As at December 31, 2021 Derivative assets 94 25 7 62 Derivative liabilities (49) (25) — (24) |
Schedule of Volume of Derivative Activity | As at June 30, 2022, the Corporation had various energy contracts that will settle on various dates through 2029. The volumes related to electricity and natural gas derivatives are outlined below. As at June 30, December 31, 2022 2021 Energy contracts subject to regulatory deferral (1) Electricity swap contracts (GWh) 446 509 Electricity power purchase contracts (GWh) 79 731 Gas swap contracts (PJ) 143 151 Gas supply contract premiums (PJ) 138 144 Energy contracts not subject to regulatory deferral (1) Wholesale trading contracts (GWh) 4,536 1,886 Gas swap contracts (PJ) 14 29 (1) GWh means gigawatt hours and PJ means petajoules. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Consolidated Commitments in the Next Five Years and Periods Thereafter | The 20-year agreements allow FortisBC Energy to purchase a maximum annual volume of 9.3 PJs of renewable natural gas and has increased gas purchase obligations from those disclosed as at December 31, 2021 as follows. As at June 30, 2022 ($ millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 Thereafter Gas purchase obligations 2,725 6 34 74 126 151 2,334 |
Description of Business - Regul
Description of Business - Regulated Utilities (Details) | Jun. 30, 2022 |
Wataynikaneyap Power Limited Partnership | |
Public Utilities, General Disclosures [Line Items] | |
Equity investment ownership (percent) | 39% |
Belize Electricity | |
Public Utilities, General Disclosures [Line Items] | |
Equity investment ownership (percent) | 33% |
ITC | |
Public Utilities, General Disclosures [Line Items] | |
Controlling ownership interest (percent) | 80.10% |
Noncontrolling ownership (percent) | 19.90% |
Caribbean Utilities | |
Public Utilities, General Disclosures [Line Items] | |
Controlling ownership interest (percent) | 60% |
Regulatory Developments (Detail
Regulatory Developments (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Jun. 30, 2022 | May 31, 2022 | Mar. 31, 2022 | |
ITC Midwest | FERC | ITC Midwest Capital Structure Complaint | |||
Public Utilities, General Disclosures [Line Items] | |||
Equity component of capital structure (percent) | 60% | ||
Complaint, proposed reduction of equity component of capital structure | 53% | ||
TEP | FERC | FERC Rate Case | |||
Public Utilities, General Disclosures [Line Items] | |||
Approved ROE | 9.79% | ||
TEP | Arizona Corporation Commission | TEP General Rate Application | |||
Public Utilities, General Disclosures [Line Items] | |||
Requested equity component of capital structure | 54% | ||
Requested ROE | 10.25% | ||
Requested increase in rate base | $ 3,600 | ||
Requested increase in revenue | $ 136 | ||
FortisAlberta | AUC | 2023 GCOC Proceeding | |||
Public Utilities, General Disclosures [Line Items] | |||
Equity component of capital structure (percent) | 37% | ||
Approved ROE | 8.50% |
Segmented Information - Related
Segmented Information - Related-party and Inter-company Transactions (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Related party transactions | $ 0 | $ 0 | $ 0 | $ 0 | |
Inter-segment loans | 129 | 129 | $ 126 | ||
Equity Method Investee | Belize Electricity | |||||
Related Party Transaction [Line Items] | |||||
Due from related party | 11 | 11 | $ 22 | ||
Aitken Creek | |||||
Related Party Transaction [Line Items] | |||||
Inter-company revenue recognized | $ 7 | $ 7 | $ 20 | $ 15 |
Segmented Information - Informa
Segmented Information - Information by Reportable Segment (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 2,487 | $ 2,130 | $ 5,322 | $ 4,669 | |
Energy supply costs | 797 | 593 | 1,880 | 1,442 | |
Operating expenses | 659 | 611 | 1,328 | 1,261 | |
Depreciation and amortization | 417 | 369 | 824 | 741 | |
Operating income | 614 | 557 | 1,290 | 1,225 | |
Other income, net | 35 | 42 | 77 | 92 | |
Finance charges | 266 | 255 | 524 | 507 | |
Income tax expense | 53 | 48 | 120 | 118 | |
Net earnings | 330 | 296 | 723 | 692 | |
Non-controlling interests | 30 | 27 | 57 | 52 | |
Preference share dividends | 16 | 16 | 32 | 32 | |
Net earnings attributable to common equity shareholders | 284 | 253 | 634 | 608 | |
Additions to property, plant and equipment and intangible assets | 885 | 790 | 1,800 | 1,594 | |
Goodwill | 11,911 | 11,526 | 11,911 | 11,526 | $ 11,720 |
Total assets | 59,954 | 55,895 | 59,954 | 55,895 | $ 57,659 |
Inter-segment eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Energy supply costs | 0 | 0 | 0 | 0 | |
Operating expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Other income, net | 0 | 0 | 0 | 0 | |
Finance charges | 0 | 0 | 0 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net earnings | 0 | 0 | 0 | 0 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 0 | 0 | 0 | 0 | |
Additions to property, plant and equipment and intangible assets | 0 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total assets | (150) | (179) | (150) | (179) | |
Regulated | Operating segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,454 | 2,121 | 5,276 | 4,631 | |
Energy supply costs | 796 | 592 | 1,877 | 1,440 | |
Operating expenses | 645 | 592 | 1,290 | 1,219 | |
Depreciation and amortization | 412 | 364 | 814 | 731 | |
Operating income | 601 | 573 | 1,295 | 1,241 | |
Other income, net | 35 | 37 | 71 | 75 | |
Finance charges | 227 | 220 | 449 | 437 | |
Income tax expense | 74 | 69 | 172 | 164 | |
Net earnings | 335 | 321 | 745 | 715 | |
Non-controlling interests | 30 | 27 | 57 | 52 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 305 | 294 | 688 | 663 | |
Additions to property, plant and equipment and intangible assets | 879 | 787 | 1,789 | 1,590 | |
Goodwill | 11,884 | 11,499 | 11,884 | 11,499 | |
Total assets | 59,028 | 54,993 | 59,028 | 54,993 | |
Regulated | Operating segments | ITC | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 468 | 418 | 928 | 844 | |
Energy supply costs | 0 | 0 | 0 | 0 | |
Operating expenses | 120 | 115 | 243 | 232 | |
Depreciation and amortization | 94 | 70 | 186 | 142 | |
Operating income | 254 | 233 | 499 | 470 | |
Other income, net | 10 | 12 | 19 | 21 | |
Finance charges | 83 | 78 | 163 | 157 | |
Income tax expense | 41 | 41 | 82 | 82 | |
Net earnings | 140 | 126 | 273 | 252 | |
Non-controlling interests | 26 | 23 | 50 | 46 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 114 | 103 | 223 | 206 | |
Additions to property, plant and equipment and intangible assets | 272 | 244 | 607 | 546 | |
Goodwill | 7,900 | 7,609 | 7,900 | 7,609 | |
Total assets | 21,993 | 20,307 | 21,993 | 20,307 | |
Regulated | Operating segments | UNS Energy | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 648 | 556 | 1,186 | 1,078 | |
Energy supply costs | 272 | 204 | 482 | 404 | |
Operating expenses | 167 | 153 | 329 | 330 | |
Depreciation and amortization | 92 | 83 | 181 | 166 | |
Operating income | 117 | 116 | 194 | 178 | |
Other income, net | 3 | 11 | 6 | 27 | |
Finance charges | 30 | 31 | 61 | 59 | |
Income tax expense | 13 | 13 | 19 | 18 | |
Net earnings | 77 | 83 | 120 | 128 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 77 | 83 | 120 | 128 | |
Additions to property, plant and equipment and intangible assets | 159 | 185 | 321 | 337 | |
Goodwill | 1,779 | 1,713 | 1,779 | 1,713 | |
Total assets | 11,796 | 11,218 | 11,796 | 11,218 | |
Regulated | Operating segments | Central Hudson | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 281 | 207 | 656 | 492 | |
Energy supply costs | 101 | 59 | 263 | 140 | |
Operating expenses | 143 | 116 | 292 | 247 | |
Depreciation and amortization | 26 | 22 | 51 | 45 | |
Operating income | 11 | 10 | 50 | 60 | |
Other income, net | 15 | 8 | 30 | 17 | |
Finance charges | 13 | 11 | 26 | 23 | |
Income tax expense | 3 | 1 | 12 | 9 | |
Net earnings | 10 | 6 | 42 | 45 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 10 | 6 | 42 | 45 | |
Additions to property, plant and equipment and intangible assets | 65 | 72 | 129 | 133 | |
Goodwill | 581 | 559 | 581 | 559 | |
Total assets | 4,587 | 3,899 | 4,587 | 3,899 | |
Regulated | Operating segments | FortisBC Energy | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 396 | 317 | 1,090 | 903 | |
Energy supply costs | 181 | 108 | 535 | 362 | |
Operating expenses | 88 | 88 | 171 | 172 | |
Depreciation and amortization | 75 | 70 | 150 | 141 | |
Operating income | 52 | 51 | 234 | 228 | |
Other income, net | 5 | 3 | 9 | 5 | |
Finance charges | 35 | 37 | 71 | 73 | |
Income tax expense | 5 | 2 | 36 | 34 | |
Net earnings | 17 | 15 | 136 | 126 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 17 | 15 | 136 | 126 | |
Additions to property, plant and equipment and intangible assets | 134 | 99 | 264 | 192 | |
Goodwill | 913 | 913 | 913 | 913 | |
Total assets | 8,272 | 7,722 | 8,272 | 7,722 | |
Regulated | Operating segments | FortisAlberta | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 169 | 162 | 336 | 320 | |
Energy supply costs | 0 | 0 | 0 | 0 | |
Operating expenses | 42 | 39 | 84 | 78 | |
Depreciation and amortization | 61 | 58 | 121 | 115 | |
Operating income | 66 | 65 | 131 | 127 | |
Other income, net | 0 | 0 | 1 | 1 | |
Finance charges | 28 | 27 | 54 | 53 | |
Income tax expense | 3 | 2 | 7 | 4 | |
Net earnings | 35 | 36 | 71 | 71 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 35 | 36 | 71 | 71 | |
Additions to property, plant and equipment and intangible assets | 119 | 82 | 230 | 186 | |
Goodwill | 228 | 228 | 228 | 228 | |
Total assets | 5,328 | 5,157 | 5,328 | 5,157 | |
Regulated | Operating segments | FortisBC Electric | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 108 | 108 | 237 | 228 | |
Energy supply costs | 18 | 22 | 61 | 61 | |
Operating expenses | 33 | 33 | 66 | 63 | |
Depreciation and amortization | 17 | 16 | 34 | 32 | |
Operating income | 40 | 37 | 76 | 72 | |
Other income, net | 1 | 2 | 3 | 3 | |
Finance charges | 19 | 18 | 37 | 36 | |
Income tax expense | 3 | 4 | 5 | 6 | |
Net earnings | 19 | 17 | 37 | 33 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 19 | 17 | 37 | 33 | |
Additions to property, plant and equipment and intangible assets | 30 | 30 | 60 | 58 | |
Goodwill | 235 | 235 | 235 | 235 | |
Total assets | 2,565 | 2,474 | 2,565 | 2,474 | |
Regulated | Operating segments | Other Electric | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 384 | 353 | 843 | 766 | |
Energy supply costs | 224 | 199 | 536 | 473 | |
Operating expenses | 52 | 48 | 105 | 97 | |
Depreciation and amortization | 47 | 45 | 91 | 90 | |
Operating income | 61 | 61 | 111 | 106 | |
Other income, net | 1 | 1 | 3 | 1 | |
Finance charges | 19 | 18 | 37 | 36 | |
Income tax expense | 6 | 6 | 11 | 11 | |
Net earnings | 37 | 38 | 66 | 60 | |
Non-controlling interests | 4 | 4 | 7 | 6 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 33 | 34 | 59 | 54 | |
Additions to property, plant and equipment and intangible assets | 100 | 75 | 178 | 138 | |
Goodwill | 248 | 242 | 248 | 242 | |
Total assets | 4,487 | 4,216 | 4,487 | 4,216 | |
Non-Regulated | Operating segments | Energy Infrastructure | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 33 | 9 | 46 | 38 | |
Energy supply costs | 1 | 1 | 3 | 2 | |
Operating expenses | 8 | 9 | 20 | 18 | |
Depreciation and amortization | 4 | 4 | 8 | 8 | |
Operating income | 20 | (5) | 15 | 10 | |
Other income, net | 0 | 1 | 0 | 1 | |
Finance charges | 0 | 0 | 0 | 0 | |
Income tax expense | 1 | 1 | 2 | 2 | |
Net earnings | 19 | (5) | 13 | 9 | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 0 | 0 | 0 | 0 | |
Net earnings attributable to common equity shareholders | 19 | (5) | 13 | 9 | |
Additions to property, plant and equipment and intangible assets | 6 | 3 | 11 | 4 | |
Goodwill | 27 | 27 | 27 | 27 | |
Total assets | 776 | 723 | 776 | 723 | |
Non-Regulated | Operating segments | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 0 | 0 | 0 | 0 | |
Energy supply costs | 0 | 0 | 0 | 0 | |
Operating expenses | 6 | 10 | 18 | 24 | |
Depreciation and amortization | 1 | 1 | 2 | 2 | |
Operating income | (7) | (11) | (20) | (26) | |
Other income, net | 0 | 4 | 6 | 16 | |
Finance charges | 39 | 35 | 75 | 70 | |
Income tax expense | (22) | (22) | (54) | (48) | |
Net earnings | (24) | (20) | (35) | (32) | |
Non-controlling interests | 0 | 0 | 0 | 0 | |
Preference share dividends | 16 | 16 | 32 | 32 | |
Net earnings attributable to common equity shareholders | (40) | (36) | (67) | (64) | |
Additions to property, plant and equipment and intangible assets | 0 | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | 0 | |
Total assets | $ 300 | $ 358 | $ 300 | $ 358 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Credit Losses [Roll Forward] | ||||
Beginning of period | $ (53) | $ (64) | $ (53) | $ (64) |
Credit loss expense | (5) | (1) | (10) | (8) |
Write-offs, net of recoveries | 6 | 3 | 11 | 8 |
Foreign exchange | (1) | 0 | (1) | 2 |
End of period | $ (53) | $ (62) | $ (53) | $ (62) |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities - Schedule of Regulatory Assets and Liabilities (Details) - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Regulatory Assets [Line Items] | ||
Total regulatory assets | $ 3,836 | $ 3,589 |
Less: Current portion | (559) | (492) |
Long-term regulatory assets | 3,277 | 3,097 |
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 3,532 | 3,222 |
Less: Current portion | (484) | (357) |
Long-term regulatory liabilities | 3,048 | 2,865 |
Deferred income taxes | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 1,293 | 1,289 |
Future cost of removal | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 1,240 | 1,217 |
Derivatives | Energy contracts subject to regulatory deferral | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 204 | 52 |
Employee future benefits | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 195 | 196 |
Rate stabilization and related accounts | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 189 | 116 |
Renewable energy surcharge | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 111 | 107 |
Energy efficiency liability | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 87 | 83 |
AESO charges deferral | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 44 | 15 |
Other | ||
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 169 | 147 |
Deferred income taxes | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 1,847 | 1,806 |
Rate stabilization and related accounts | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 453 | 339 |
Deferred energy management costs | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 404 | 384 |
Employee future benefits | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 384 | 388 |
Deferred lease costs | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 130 | 127 |
Generation early retirement costs | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 94 | 48 |
Manufactured gas plant site remediation deferral | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 93 | 96 |
Deferred storm costs | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 53 | 17 |
Derivatives | Energy contracts subject to regulatory deferral | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | 25 | 20 |
Regulatory Liabilities [Line Items] | ||
Total regulatory liabilities | 204 | 52 |
Other | ||
Regulatory Assets [Line Items] | ||
Total regulatory assets | $ 353 | $ 364 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt, excluding credit facility borrowings | $ 25,300 | $ 24,177 |
Long-term debt | 26,455 | 25,482 |
Less: Deferred financing costs and debt discounts | (155) | (147) |
Less: Current installments of long-term debt | (1,743) | (1,628) |
Long-term debt less current portion and deferred financing costs and debt discounts | 24,557 | 23,707 |
Credit facility | ||
Debt Instrument [Line Items] | ||
Less: Current installments of long-term debt | (835) | (888) |
Credit facility | Long-term credit facility borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,155 | $ 1,305 |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt Issuances (Details) $ in Millions, $ in Millions | 1 Months Ended | ||||||
Jun. 30, 2022 CAD ($) | May 31, 2022 USD ($) | May 31, 2022 CAD ($) | Apr. 30, 2022 CAD ($) | Mar. 31, 2022 CAD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | |
Cross-currency interest rate swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount | $ 391 | ||||||
ITC | Secured | Secured first mortgage bonds, 2052 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.93% | ||||||
Debt instrument, face amount | $ 150 | ||||||
ITC | Secured | Secured senior notes, 2052 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.05% | 3.05% | |||||
Debt instrument, face amount | $ 75 | ||||||
ITC | Secured | Secured first mortgage bonds, 2052 maturity, green project potfolio | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 20 | ||||||
UNS Energy | Unsecured | Unsecured senior notes, 2032 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.25% | ||||||
Debt instrument, face amount | $ 325 | ||||||
Central Hudson | Unsecured | Unsecured senior notes, 2027 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.37% | ||||||
Debt instrument, face amount | $ 50 | ||||||
Central Hudson | Unsecured | Unsecured senior notes, 2029 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.59% | ||||||
Debt instrument, face amount | $ 60 | ||||||
FortisBC Electric | Unsecured | Unsecured debentures, 2052 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.16% | ||||||
Debt instrument, face amount | $ 100 | ||||||
Newfoundland Power | Secured | First mortgage sinking fund bonds, 2052 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.20% | ||||||
Debt instrument, face amount | $ 75 | ||||||
FortisAlberta | Unsecured | Senior unsecured debentures, 2052 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.62% | 4.62% | |||||
Debt instrument, face amount | $ 125 | ||||||
Fortis | Cross-currency interest rate swap | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount | $ 391 | ||||||
Derivative interest rate | 4.34% | 4.34% | |||||
Fortis | Unsecured | Unsecured senior notes, 2029 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.43% | 4.43% | |||||
Debt instrument, face amount | $ 500 | ||||||
Fortis | Unsecured | Unsecured senior notes, 2023 maturity | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.85% | ||||||
Repayment of debt | $ 500 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | |||||
May 31, 2022 CAD ($) | Dec. 31, 2020 CAD ($) | Jun. 30, 2022 CAD ($) | May 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Debt Instrument [Line Items] | |||||||
Short-form base shelf prospectus, life | 25 months | ||||||
Short-form base shelf prospectus, principal amount, up to | $ 2,000 | ||||||
Short-form base shelf prospectus, remaining amount available | $ 1,000 | ||||||
Maximum borrowing capacity | $ 5,589 | $ 4,846 | |||||
Central Hudson | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 250 | $ 200 | |||||
No one bank | Bank concentration risk | Credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Concentration risk percentage | 20% | ||||||
Committed facilities with maturities ranging from 2023 through 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 5,400 | ||||||
Unsecured revolving committed credit facility, 2027 maturity | Corporate | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,300 | ||||||
Maximum potential annual margin pricing adjustments, funds drawn | 0.0005 | 0.0005 | |||||
Maximum potential annual margin pricing adjustments, funds undrawn | 0.0001 | 0.0001 | |||||
Unsecured non-revolving term credit facility | Corporate | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500 | ||||||
Debt instrument, term | 1 year |
Long-Term Debt - Schedule of Cr
Long-Term Debt - Schedule of Credit Facilities (Details) - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Total credit facilities | $ 5,589 | $ 4,846 |
Credit facilities utilized: | ||
Short-term borrowings | (413) | (247) |
Long-term debt (including current portion) | (26,455) | (25,482) |
Letters of credit outstanding | (139) | (115) |
Credit facilities unutilized | 3,882 | 3,179 |
Current installments of long-term debt | $ 1,743 | $ 1,628 |
Credit facility | ||
Credit facilities utilized: | ||
Long-term debt (including current portion), weighted average interest rate (percent) | 2.40% | 0.90% |
Current installments of long-term debt | $ 835 | $ 888 |
Credit facility | ||
Credit facilities utilized: | ||
Short-term borrowings | $ (413) | $ (247) |
Short-term borrowings, weighted average interest rate (percent) | 1.90% | 0.60% |
Credit facility | ||
Credit facilities utilized: | ||
Long-term debt (including current portion) | $ (1,155) | $ (1,305) |
Regulated Utilities | ||
Line of Credit Facility [Line Items] | ||
Total credit facilities | 3,568 | |
Credit facilities utilized: | ||
Letters of credit outstanding | (67) | |
Credit facilities unutilized | 2,464 | |
Regulated Utilities | Credit facility | ||
Credit facilities utilized: | ||
Short-term borrowings | (413) | |
Regulated Utilities | Credit facility | ||
Credit facilities utilized: | ||
Long-term debt (including current portion) | (624) | |
Corporate and Other | ||
Line of Credit Facility [Line Items] | ||
Total credit facilities | 2,021 | |
Credit facilities utilized: | ||
Letters of credit outstanding | (72) | |
Credit facilities unutilized | 1,418 | |
Corporate and Other | Credit facility | ||
Credit facilities utilized: | ||
Short-term borrowings | 0 | |
Corporate and Other | Credit facility | ||
Credit facilities utilized: | ||
Long-term debt (including current portion) | $ (531) |
Employee Future Benefits - Sche
Employee Future Benefits - Schedule of Net Benefit Costs (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service costs | $ 26 | $ 27 | $ 52 | $ 55 |
Interest costs | 28 | 24 | 56 | 49 |
Expected return on plan assets | (48) | (43) | (97) | (88) |
Amortization of actuarial losses (gains) | 1 | 9 | 2 | 18 |
Amortization of past service credits/plan amendments | (1) | (1) | (1) | (1) |
Regulatory adjustments | (3) | (1) | (5) | (1) |
Net benefit cost | 3 | 15 | 7 | 32 |
OPEB Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service costs | 8 | 9 | 17 | 18 |
Interest costs | 6 | 4 | 11 | 9 |
Expected return on plan assets | (5) | (4) | (11) | (9) |
Amortization of actuarial losses (gains) | (3) | 0 | (5) | (1) |
Amortization of past service credits/plan amendments | (1) | 0 | (1) | 0 |
Regulatory adjustments | 1 | 0 | 2 | 1 |
Net benefit cost | $ 6 | $ 9 | $ 13 | $ 18 |
Employee Future Benefits - Narr
Employee Future Benefits - Narrative (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan cost recognized | $ 12 | $ 10 | $ 26 | $ 23 |
Other Income, Net (Details)
Other Income, Net (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Non-service component of net periodic benefit cost | $ 25 | $ 12 | $ 49 | $ 23 |
Equity component, allowance for funds used during construction | 18 | 17 | 35 | 39 |
(Loss) gain on derivatives, net | (2) | 4 | 2 | 13 |
(Loss) gain on retirement investments | (9) | 4 | (17) | 6 |
Other | 3 | 5 | 8 | 11 |
Other income, net | $ 35 | $ 42 | $ 77 | $ 92 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Share (EPS) (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net Earnings to Common Shareholders | ||||
Basic EPS | $ 284 | $ 253 | $ 634 | $ 608 |
Potential dilutive effect of stock options | 0 | 0 | 0 | 0 |
Diluted EPS | $ 284 | $ 253 | $ 634 | $ 608 |
Weighted Average Shares | ||||
Basic EPS (shares) | 477.8 | 470.2 | 476.8 | 469 |
Potential dilutive effect of stock options (shares) | 0.5 | 0.4 | 0.5 | 0.4 |
Diluted EPS (shares) | 478.3 | 470.6 | 477.3 | 469.4 |
EPS | ||||
Basic (CAD per share) | $ 0.59 | $ 0.54 | $ 1.33 | $ 1.30 |
Diluted (CAD per share) | $ 0.59 | $ 0.54 | $ 1.33 | $ 1.30 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information (Details) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Change in working capital | ||||
Accounts receivable and other current assets | $ 49 | $ 91 | $ (46) | $ 42 |
Prepaid expenses | 17 | 26 | 22 | 23 |
Inventories | (114) | (25) | (45) | 0 |
Regulatory assets - current portion | (31) | 0 | (43) | (69) |
Accounts payable and other current liabilities | 9 | (41) | 17 | (11) |
Regulatory liabilities - current portion | 30 | (11) | 32 | (32) |
Changes in working capital | (40) | 40 | (63) | (47) |
Non-cash investing and financing activities | ||||
Accrued capital expenditures | 380 | 327 | 380 | 327 |
Common share dividends reinvested | 92 | 87 | 186 | 176 |
Contributions in aid of construction | $ 12 | $ 13 | $ 12 | $ 13 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Risk Management - Derivative Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 31, 2022 CAD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 CAD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 CAD ($) | Jun. 30, 2022 USD ($) | May 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Unrealized losses recognized in regulatory assets | $ 3,836,000,000 | $ 3,836,000,000 | $ 3,589,000,000 | |||||
Unrealized gains recognized as regulatory liabilities | 3,532,000,000 | 3,532,000,000 | 3,222,000,000 | |||||
Other investments | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Unrealized gains (losses) on investments | (4,000,000) | $ 2,000,000 | $ (9,000,000) | $ 2,000,000 | ||||
UNS Energy | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Realized gains, portion shared with customers (percent) | 10% | |||||||
Corporate | Unsecured senior notes, 2029 maturity | Unsecured | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Interest rate | 4.43% | 4.43% | ||||||
Energy contracts | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Unrealized gains (losses) on energy contracts | 19,000,000 | (8,000,000) | $ 2,000,000 | (13,000,000) | ||||
Total return swaps | Corporate | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional amount | 114,000,000 | 114,000,000 | ||||||
Unrealized gains (losses) on derivatives | (2,000,000) | 1,000,000 | $ (8,000,000) | 3,000,000 | ||||
Total return swaps | Corporate | Minimum | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative terms | 1 year | |||||||
Total return swaps | Corporate | Maximum | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Derivative terms | 3 years | |||||||
Foreign exchange contracts | Corporate | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional amount | 275,000,000 | $ 275,000,000 | ||||||
Unrealized gains (losses) on derivatives | (2,000,000) | (4,000,000) | $ (2,000,000) | (2,000,000) | ||||
Interest rate swap | ITC | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional amount | $ 450 | |||||||
Derivative terms | 5 years | |||||||
Unrealized gains (losses) on derivatives | 13,000,000 | $ 0 | $ 39,000,000 | $ 0 | ||||
Cross-currency interest rate swap | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional amount | $ 391 | |||||||
Cross-currency interest rate swap | Corporate | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notional amount | $ 391 | |||||||
Derivative terms | 7 years | |||||||
Unrealized gains (losses) on derivatives | (12,000,000) | (12,000,000) | ||||||
Derivative interest rate | 4.34% | 4.34% | ||||||
Derivative instruments | Energy contracts subject to regulatory deferral | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Unrealized losses recognized in regulatory assets | 25,000,000 | 25,000,000 | 20,000,000 | |||||
Unrealized gains recognized as regulatory liabilities | $ 204,000,000 | $ 204,000,000 | $ 52,000,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Risk Management - Fair Value Hierarchy (Details) - Recurring - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Other investments | $ 271 | $ 137 |
Total Assets | 567 | 256 |
Liabilities | ||
Total Liabilities | (64) | (49) |
Energy contracts subject to regulatory deferral | ||
Assets | ||
Derivative asset | 214 | 78 |
Liabilities | ||
Derivative liability | (36) | (46) |
Energy contracts not subject to regulatory deferral | ||
Assets | ||
Derivative asset | 28 | 16 |
Liabilities | ||
Derivative liability | (16) | (3) |
Foreign exchange contracts, total return, and interest rate swaps | ||
Assets | ||
Derivative asset | 54 | 25 |
Cross-currency interest rate swap | ||
Liabilities | ||
Derivative liability | (12) | |
Level 1 | ||
Assets | ||
Other investments | 271 | 137 |
Total Assets | 271 | 160 |
Liabilities | ||
Total Liabilities | (1) | 0 |
Level 1 | Energy contracts subject to regulatory deferral | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Derivative liability | (1) | 0 |
Level 1 | Energy contracts not subject to regulatory deferral | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | 0 |
Level 1 | Foreign exchange contracts, total return, and interest rate swaps | ||
Assets | ||
Derivative asset | 0 | 23 |
Level 1 | Cross-currency interest rate swap | ||
Liabilities | ||
Derivative liability | 0 | |
Level 2 | ||
Assets | ||
Other investments | 0 | 0 |
Total Assets | 296 | 96 |
Liabilities | ||
Total Liabilities | (63) | (49) |
Level 2 | Energy contracts subject to regulatory deferral | ||
Assets | ||
Derivative asset | 214 | 78 |
Liabilities | ||
Derivative liability | (35) | (46) |
Level 2 | Energy contracts not subject to regulatory deferral | ||
Assets | ||
Derivative asset | 28 | 16 |
Liabilities | ||
Derivative liability | (16) | (3) |
Level 2 | Foreign exchange contracts, total return, and interest rate swaps | ||
Assets | ||
Derivative asset | 54 | 2 |
Level 2 | Cross-currency interest rate swap | ||
Liabilities | ||
Derivative liability | (12) | |
Level 3 | ||
Assets | ||
Other investments | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Total Liabilities | 0 | 0 |
Level 3 | Energy contracts subject to regulatory deferral | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | 0 |
Level 3 | Energy contracts not subject to regulatory deferral | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Derivative liability | 0 | 0 |
Level 3 | Foreign exchange contracts, total return, and interest rate swaps | ||
Assets | ||
Derivative asset | 0 | $ 0 |
Level 3 | Cross-currency interest rate swap | ||
Liabilities | ||
Derivative liability | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Risk Management - Derivative Contracts Under Master Netting Agreements and Collateral Positions (Details) (Details) - Energy contracts - CAD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative assets | ||
Gross Amount Recognized in Balance Sheet | $ 242 | $ 94 |
Counterparty Netting of Energy Contracts | 29 | 25 |
Cash Collateral Received/Posted | 62 | 7 |
Net Amount | 151 | 62 |
Derivative liabilities | ||
Gross Amount Recognized in Balance Sheet | (52) | (49) |
Counterparty Netting of Energy Contracts | (29) | (25) |
Cash Collateral Received/Posted | 0 | 0 |
Net Amount | $ (23) | $ (24) |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Risk Management - Volume of Derivative Activity (Details) GJ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 GWh GJ | Dec. 31, 2021 GJ GWh | |
Electricity swap contracts, Energy contracts subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GWh | 446 | 509 |
Electricity power purchase contracts, Energy contracts subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GWh | 79 | 731 |
Gas swap contracts, Energy contracts subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GJ | 143 | 151 |
Gas supply contract premiums, Energy contracts subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GJ | 138 | 144 |
Wholesale trading contracts, Energy contracts not subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GWh | 4,536 | 1,886 |
Gas swap contracts, Energy Contracts not subject to regulatory deferral | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Volume (gwh / gj) | GJ | 14 | 29 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Risk Management - Credit Risk Narrative (Details) - CAD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Value of derivative instruments in net liability positions | $ 64 | $ 59 |
Revenue | Three customers | Customer concentration risk | ITC | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration risk percentage | 70% |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments and Risk Management - Foreign Exchange Hedge Narrative (Details) - Foreign net investments - USD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Unhedged foreign net investments | $ 10.6 | $ 10.8 |
Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Long-term debt designated as an effective hedge | $ 2.7 | $ 2.2 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments and Risk Management - Financial Instruments Not Carried At Fair Value Narrative (Details) - CAD ($) $ in Billions | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying value | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 26.5 | $ 25.5 |
Estimated fair value | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 24.9 | $ 28.8 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) GJ in Millions | 6 Months Ended |
Jun. 30, 2022 CAD ($) GJ | |
FortisBC Energy | Gas purchase obligations | |
Site Contingency [Line Items] | |
Purchase commitment term | 20 years |
Maximum annual volume (in GJ) | GJ | 9.3 |
FortisBC Holdings and Fortis | Claim related to pipeline rights | |
Site Contingency [Line Items] | |
Contingency accrual | $ | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Fiscal Year Maturity (Details) - Gas purchase obligations - FortisBC Energy $ in Millions | Jun. 30, 2022 CAD ($) |
Purchase obligations: | |
Total | $ 2,725 |
Year 1 | 6 |
Year 2 | 34 |
Year 3 | 74 |
Year 4 | 126 |
Year 5 | 151 |
Thereafter | $ 2,334 |