Fortis Inc. (FTS) 2026 Q1 法說會逐字稿

Thank you for standing by. This is Betsy, the conference operator. Welcome to the Fortis Inc. first-quarter 2026 results conference call. (Operator Instructions) and the conference is being recorded. (Operator Instructions)

感謝您耐心等候。我是會議接線員 Betsy。歡迎參加 Fortis Inc. 2026 年第一季業績電話會議。（接線員指示）本次會議將被錄音。（接線員指示）

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

現在我想將會議交給投資者關係副總裁 Stephanie Amaimo。Amaimo 女士，請開始。

Thanks, Betsy, and good morning, everyone. Welcome to Fortis's first-quarter 2026 results conference call. I'm joined by David Hutchens, President and CEO; Jocelyn Perry, Executive VP and CFO; other members of the senior management team; as well as CEOs from certain subsidiaries.

謝謝你，Betsy，各位早安。歡迎參加 Fortis 2026 年第一季業績電話會議。今天與我一同出席的有總裁兼執行長 David Hutchens；執行副總裁兼財務長 Jocelyn Perry；其他高階管理團隊成員；以及部分子公司的執行長。

Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slide show. Actual results can differ materially from the forecast projections included in the forward-looking information presented today.

在開始今天的電話會議之前，我想提醒各位，本次討論將包含前瞻性資訊，相關內容受隨附簡報中的警示性聲明所規範。實際結果可能與今日所呈現之前瞻性資訊中的預測大不相同。

Non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our first-quarter 2026 MD&A. Also, unless otherwise specified, all financial information referenced is in Canadian dollars.

我們事先準備的講稿中所提及的非 GAAP 財務衡量指標，已在 2026 年第一季 MD&A 中與相關的美國 GAAP 財務衡量指標進行調節。此外，除非另有說明，本文所提及的所有財務資訊均以加幣計價。

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

接下來，我將把電話會議交給 David。

Thank you and good morning, everyone. Before getting into the results, I'd like to take a moment to acknowledge Gary Smith, Executive Vice President of Operations and Technology, who is retiring at the end of this month. Gary has had an incredible 42-year career with Fortis, serving in leadership roles and Boards across our utilities. He has been integral to Fortis's growth and success, and we're incredibly grateful for his many contributions. We truly wish Gary all the best in retirement.

謝謝，各位早安。在進入業績之前，我想先花點時間致謝營運與科技執行副總裁 Gary Smith，他將於本月底退休。Gary 在 Fortis 擁有令人敬佩的 42 年職涯，曾在我們各公用事業公司擔任領導職務並於董事會服務。他對 Fortis 的成長與成功至關重要，我們非常感謝他所做出的諸多貢獻。我們衷心祝福 Gary 退休生活一切順利。

We are pleased with our start in 2026, building on the momentum from last year. During the first quarter, we delivered safe and reliable service while advancing our long-term growth strategy. We invested $1.4 billion of capital into our utility systems and reported earnings per share of $0.99. We also successfully concluded the UNS Gas rate case, reaching a constructive regulatory outcome for our customers and stakeholders. With 25% of our capital plan invested in the first quarter, we remain well positioned to execute our $5.6 billion of planned investments in 2026.

我們對 2026 年的良好開局感到滿意，並延續去年的動能。在第一季，我們在推進長期成長策略的同時，提供安全且可靠的服務。我們向公用事業系統投入 14 億美元資本，並公布每股盈餘為 0.99 美元。我們也成功結束 UNS Gas 的費率案件，為客戶與利害關係人取得具建設性的監管結果。在第一季已投入資本計畫的 25% 之下，我們仍具備良好條件執行 2026 年規劃的 56 億美元投資。

Major capital projects continue to progress. A significant milestone was achieved at the Big Cedar Industrial Center, where ITC completed the substation that will support 300 megawatts of load growth for the first data center. Transmission upgrade work for the Big Cedar load expansion project is also underway at this location to serve another 1,600 megawatts of new data center load expected to be completed by 2028.

主要資本專案持續推進。在 Big Cedar 工業中心達成一項重要里程碑：ITC 已完成變電站建置，將支援第一座資料中心 300 兆瓦的負載成長。同一地點的 Big Cedar 負載擴增專案之輸電升級工程亦已展開，以服務預計於 2028 年前完成的另一批 1,600 兆瓦新增資料中心負載。

At UNS, the ACC approved an amendment to the Springerville Generating Station’s certificate of environmental compatibility to allow the conversion from coal to natural gas generation. This approval advances TEP's plan to extend the operational life of the facility and supports long-term customer affordability and system reliability.

在 UNS，ACC 已核准修訂 Springerville 發電站的環境相容性證書，以允許由燃煤發電轉換為天然氣發電。此項核准推進 TEP 延長該設施營運年限的計畫，並支持長期的客戶可負擔性與系統可靠性。

As we have discussed in the past, our utilities continue to prioritize capital investments focused on operational need and customer bill impacts. At ITC, with a substantial data center load anticipated to come online in Iowa, ITC Midwest network transmission rates are expected to be reduced by approximately 20% by the end of the decade.

如同我們過去所討論的，我們的公用事業公司持續優先投入以營運需求與客戶帳單影響為重點的資本支出。在 ITC，隨著預期在愛荷華州將有大量資料中心負載上線，ITC Midwest 網路輸電費率預計在本十年末前降低約 20%。

At TEP, the coal to natural gas conversion at Springerville Generating Station will be approximately 10% of the capital cost of new gas generation. This is an economical solution benefiting our customers and the communities we serve. Also at TEP, the 300 megawatts of load growth for the data center associated with the approved energy supply agreement is expected to save a typical residential customer approximately USD13 per month once at full production, thanks to this additional revenue. Overall, affordability continues to be an integral part of how we plan, invest and operate across our group of companies to ensure cost-effective service for our customers.

在 TEP，Springerville 發電站由燃煤轉天然氣的改造，其資本成本約為新建天然氣發電的 10%。這是一項具經濟效益的解決方案，將使我們的客戶與所服務的社區受益。同樣在 TEP，與已核准能源供應協議（ESA）相關之資料中心 300 兆瓦負載成長，預期在全面投產後，受惠於新增收入，典型住宅客戶每月可節省約 13 美元。整體而言，可負擔性仍是我們在集團各公司進行規劃、投資與營運時的核心要素，以確保為客戶提供具成本效益的服務。

Turning now to slide 7, with our 2026 and 5-year capital plan -- plans on track, we continue to expect average annual rate base growth of 7% through 2030. Above and beyond the plan, our teams continue to drive forward a strong slate of incremental growth opportunities. First, at ITC, the MISO LRTP portfolio of projects is advancing. For Tranche 2.1, ITC expects USD3.3 billion to USD3.8 billion of investment beyond 2030 for projects that have been awarded and are not subject to competitive bidding. For projects that are subject to a competitive process, ITC is actively evaluating opportunities and preparing bids as appropriate.

接著請看第 7 張投影片，關於我們 2026 年及 5 年資本計畫——計畫進度如期，我們仍預期至 2030 年的平均年度費率基礎（rate base）成長為 7%。除既定計畫之外，我們的團隊也持續推動一系列強勁的增量成長機會。首先，在 ITC，MISO LRTP 專案組合正持續推進。就 Tranche 2.1 而言，ITC 預期在 2030 年後，對已獲授予且不需競標的專案，將有 33 億至 38 億美元的額外投資。對於需經競爭程序的專案，ITC 正積極評估機會並視情況準備投標。

As it relates to competitively bid projects, ITC, alongside its Grid Acceleration Coalition partners, filed a joint complaint at FERC in April against the competitive bidding processes in MISO and SPP. The complaint urges the commission to either direct MISO and SPP to exempt transmission projects from the solicitation process when those projects facilitate new generation or large load interconnection or suspend the solicitation process entirely for the next five years. The complaint emphasizes that competition delays much needed infrastructure development, slowing down AI implementation through regulatory red tape and increasing costs to customers. While complaints at FERC are not subject to a fixed timeline, the coalition has asked the commission to issue a ruling by July 16th.

就競標專案而言，ITC 與其 Grid Acceleration Coalition 聯盟夥伴於 4 月向 FERC 共同提出申訴，針對 MISO 與 SPP 的競爭性招標流程。該申訴敦促委員會：要麼指示 MISO 與 SPP 在輸電專案促進新發電或大型負載併網時，將其排除於徵求提案流程之外；要麼在未來五年全面暫停徵求流程。申訴強調，競爭機制延宕了迫切需要的基礎建設發展，透過監管繁文縟節拖慢 AI 的導入，並提高客戶成本。雖然 FERC 的申訴案件不受固定時程限制，該聯盟已要求委員會於 7 月 16 日前作出裁決。

Shifting now to load growth opportunities in Arizona. In April, key contractual contingencies tied to the approved ESA for 300 megawatts advanced at TEP with credit support now in place. As you may recall, this initial phase will leverage existing and planned capacity with a ramp-up expected in 2027 and continuing through 2029.

接著談亞利桑那州的負載成長機會。在 4 月，與已核准之 300 兆瓦 ESA 相關的關鍵合約先決條件在 TEP 取得進展，目前信用支持已到位。如各位所記得，這一初始階段將運用既有及規劃中的容量，預計於 2027 年開始逐步爬升，並持續至 2029 年。

Beyond this ESA, negotiations continue for an incremental 300 megawatts of capacity to support a potential buildout of 600 megawatts at this site. TEP is also in active negotiations for additional capacity at a second site in the range of 500 to 700 megawatts. If agreements are finalized for these subsequent phases, we estimate new generation investment in the range of USD1.5 billion to USD2 billion would be required. Our track record of long-term sustainable growth reflects the strength of our regulated businesses and supports our commitment to deliver 4% to 6% annual dividend growth through 2030. Now, I will turn the call over to Jocelyn for an update on our first-quarter financial results.

除該 ESA 之外，我們仍在就額外 300 兆瓦容量進行協商，以支持該據點潛在擴建至 600 兆瓦。TEP 也正就第二個據點的額外容量進行積極協商，規模約為 500 至 700 兆瓦。若這些後續階段的協議得以定案，我們估計將需要約 15 億至 20 億美元的新發電投資。我們長期且可持續的成長紀錄，反映出受監管業務的實力，並支持我們承諾在 2030 年前實現每年 4% 至 6% 的股利成長。接下來，我將把電話會議交給 Jocelyn，請她更新我們第一季的財務業績。

Thank you, David, and good morning everyone. For the quarter, we reported net earnings of $501 million or $0.99 per common share. As shown on the slide, we have identified the EPS drivers for the quarter by segment. Our Western Canadian utilities contributed a $0.04 increase in EPS, largely driven by capital investments and timing of operating costs. At ITC, EPS increased by $0.02, largely due to continued capital investment and related rate base growth.

謝謝你，David，各位早安。本季我們公布淨利為5.01億美元，或每股普通股盈餘0.99美元。如投影片所示，我們已按事業部門辨識本季每股盈餘（EPS）的主要驅動因素。我們在加拿大西部的公用事業使EPS增加0.04美元，主要受資本投資以及營運成本入帳時點影響。在ITC方面，EPS增加0.02美元，主要由持續的資本投資及相關的費率基礎（rate base）成長所帶動。

For our U.S. electric and gas utilities, EPS decreased by $0.02. Lower earnings at UNS Energy were driven by wholesale market conditions, timing of planned generation maintenance costs, milder weather as well as regulatory lag for rate base not yet included in rates. Moderating this was higher earnings at Central Hudson due to a shift in quarterly revenue, timing of operating expenses as well as rate base growth. The Corporate and Other segment reflects higher finance costs and unrealized losses on foreign exchange contracts.

至於我們在美國的電力與天然氣公用事業，EPS下降0.02美元。UNS Energy獲利較低，主要受批發市場狀況、計畫性發電機組維修成本的時點、較溫和的天氣，以及尚未納入費率的費率基礎所造成的監管落後（regulatory lag）影響。部分抵銷因素為Central Hudson獲利較高，原因包括季度營收的移轉、營運費用時點，以及費率基礎成長。「公司及其他」部門反映較高的融資成本，以及外匯合約的未實現損失。

While not shown on the slide, earnings at our Other Electric segment were largely offset by the disposition of FortisTCI in 2025. In total, the dispositions had a $0.02 dilutive impact on the first-quarter results, and we expect a $0.05 dilutive impact for the full year. Continuing on, foreign exchange had an unfavorable $0.03 impact for the quarter and higher weighted average shares issued under our dividend reinvestment plan impacted EPS by $0.01. On the financing activities for the quarter, our utilities issued $800 million of long-term debt. Additionally, in April, ITC Holdings issued USD900 million of unsecured notes with proceeds expected to repay maturing debt and short-term borrowings.

雖然投影片未顯示，我們「其他電力」部門的獲利，主要被2025年處分FortisTCI所抵銷。整體而言，這些處分對第一季結果造成每股0.02美元的稀釋影響，我們預期全年將有每股0.05美元的稀釋影響。另外，外匯在本季帶來每股0.03美元的不利影響；而透過股利再投資計畫發行的加權平均股數增加，對EPS造成每股0.01美元的影響。就本季融資活動而言，我們的公用事業發行了8億美元的長期債務。此外，4月ITC Holdings發行9億美元無擔保票據，所得款項預計用於償還到期債務及短期借款。

Our capital plan is expected to be funded largely from cash from operations, utility debt and our dividend reinvestment plan. Our $500 million ATM program has not been utilized to date and remains available for funding flexibility as required. On the rating agency front, Morningstar DBRS recently confirmed our A (low) issuer and unsecured debt credit ratings and stable outlook. Overall, our liquidity position and our funding plan support our strong investment-grade credit ratings. Several regulatory filings advanced in Arizona during the quarter.

我們的資本計畫預期主要由營運現金流、公用事業舉債以及股利再投資計畫提供資金。我們5億美元的ATM（隨市發行）計畫迄今尚未動用，仍可在需要時提供資金彈性。在信評機構方面，Morningstar DBRS近期確認我們發行人及無擔保債務信用評等為A（低），展望穩定。整體而言，我們的流動性部位與資金計畫支撐我們強勁的投資級信用評等。本季亞利桑那州有多項監管申報取得進展。

In February, the ACC issued an order in the UNS Gas general rate application, authorizing an allowed ROE of 9.61% and a 56% equity ratio. The order also approved a formula, subject to a range of plus or minus 50 basis points around the allowed ROE and inclusive of post-test year adjustments. The first rate adjustment under the formula is expected to occur in April 2027. New rates went into effect on March 1st. With respect to TEP's general rate application, the ACC staff filed testimony during the quarter, recommending a 9.75% ROE and a 55% equity ratio. Staff also filed rate design testimony recommending a formula rate framework that closely mirrors the recently approved approach for UNS Gas. Hearings commenced last month and based on the procedural schedule, we continue to expect an order in the fall.

2月，ACC就UNS Gas的一般費率申請發布命令，核准允許的股東權益報酬率（ROE）為9.61%，股權比率為56%。該命令亦核准一項公式，允許ROE在核准值上下各50個基點的範圍內調整，並納入測試年度後（post-test year）調整。依該公式進行的首次費率調整預計將於2027年4月發生。新費率已於3月1日生效。就TEP的一般費率申請而言，ACC工作人員於本季提交證詞，建議ROE為9.75%，股權比率為55%。工作人員亦提交費率設計證詞，建議採用與近期核准的UNS Gas作法高度相似的公式費率架構。聽證於上月開始，依程序時程，我們仍預期將於秋季收到命令。

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

以上是我的發言。我現在把電話交回給David。

Thank you, Jocelyn. To wrap up, we are off to a solid start in 2026 with first-quarter results aligned with our expectations. Our utilities are executing their capital plans focused on reliability and customer affordability. Looking ahead, we will continue to drive meaningful shareholder value through execution of our 5-year capital plan and delivery of our 4% to 6% annual dividend growth guidance through 2030. That concludes my remarks.

謝謝你，Jocelyn。總結來說，2026年我們有一個穩健的開局，第一季結果符合我們的預期。我們的公用事業正執行其資本計畫，重點在於可靠性與客戶可負擔性。展望未來，我們將持續透過執行五年期資本計畫，並在2030年前達成每年4%至6%的股利成長指引，以創造具意義的股東價值。以上是我的發言。

I will now turn the call back over to Stephanie.

我現在把電話交回給Stephanie。

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

謝謝你，David。簡報到此結束。接下來，我們想開放電話會議，回答投資界的提問。

(Operator Instructions) Maurice Choy, RBC Capital Markets.

（接線員指示）Maurice Choy，RBC Capital Markets。

Thank you and good morning everyone. If I could just start, in your prepared remarks, you mentioned that affordability has been an integral part of how you plan, invest and operate across your companies. And you've also shared how TEP and ITC Midwest customers will benefit from your data center initiatives. So with that, given the heightened nimbyism, how would you characterize how data center sentiment among your local stakeholders have evolved since the Q4 call?

謝謝，各位早安。我先從一點開始，在你們事先準備的發言中，你提到可負擔性一直是你們在各家公司進行規劃、投資與營運方式中的核心部分。你們也分享了TEP與ITC Midwest的客戶將如何從你們的資料中心計畫中受益。因此，在「鄰避效應」（NIMBYism）升溫的情況下，你會如何形容自第四季電話會議以來，當地利害關係人對資料中心的觀感如何演變？

Yes. Thanks, Maurice, and thanks for that question. It's obviously a big topic and if folks understand how you can do data center development correctly, if you make sure that you have the protections in place for the--the rest of the retail customers, then you definitely can have a positive impact from an affordability standpoint. It's just, you know, in essence, fairly straightforward math when you add some assets that someone else is going to pay for and then you actually have some kilowatt hours that they use that spread the rest of the fixed costs among a larger pie, then it definitely does help.

是的。謝謝你，Maurice，也謝謝這個問題。這顯然是一個很大的議題；如果大家理解如何正確地推動資料中心開發，並確保對其他零售客戶有足夠的保護措施，那麼從可負擔性的角度確實可以帶來正面影響。本質上就是相當直觀的數學：當你新增一些由他人買單的資產，並且他們使用的用電度數（kilowatt hours）能把其餘固定成本分攤到更大的基數上，確實就會有所幫助。

It is really hard, I'm not going to lie. It's hard to get folks to understand that messaging, but you have to—you have to prove it, and that's hopefully what we're going to be doing here as we go forward as we add this contract that TEP has in place for that first data center and with no additional resources needed to supply it, they're paying for the transmission interconnection. And so now it's really just the, you know, just the end result of them using a lot of kilowatt hours and paying for a lot of the system that the rest of the customers would have.

老實說，這真的很難。要讓大家理解這樣的訊息並不容易，但你必須——你必須證明它；而這正是我們希望在未來推進的事情：隨著TEP針對第一座資料中心已簽訂合約，而且供應它不需要額外資源，他們也會支付輸電併網（transmission interconnection）費用。因此，接下來其實就是最終結果：他們使用大量用電度數，並為系統中很大一部分成本買單，而這些成本原本會由其他客戶承擔。

So it's an--its an ongoing conversation and ongoing you know information flow that we have to have out there. But if you are doing it right, you should be making that loud and clear.

所以這是一場持續的對話，也是一個持續的資訊傳遞過程，我們必須不斷對外溝通。但如果你做得正確，就應該把這點清楚而大聲地說明。

Understood and if I could finish with a question on ITC. Recognizing that the Grid Acceleration Coalition complaint was only filed a few weeks ago, I wonder if you had any early feedback from FERC about whether they're moved by your arguments and how you think this will all play out in the coming months towards your mid-July deadline request?

了解。最後我想問一個關於ITC的問題。考量到「電網加速聯盟」（Grid Acceleration Coalition）的申訴是在幾週前才提出的，我想請教你是否已從FERC收到任何初步回饋，例如他們是否被你們的論點所說服，以及你認為在接下來幾個月、朝你們要求的7月中旬期限之前，整體會如何發展？

Yes let me turn that directly over to Krista Tanner, CEO of ITC, and she's the one who's been at the front of this. Krista?

好的，我把這個問題直接交給ITC的執行長Krista Tanner，她一直站在這件事的最前線。Krista？

Yes, good morning and thank you for the question. So obviously, we haven't talked to the FERC since we filed because that would be an ex parte, but we had several meetings beforehand, and we continue to have meetings with other key stakeholders. And I think it's fair to say that everyone understands that there's a problem here. Now what they will do, whether they will take our options or come up with their own, I think, remains to be seen, but when you have data centers wanting to connect in 24 months or less, and that's precisely how long the competitive solicitation process takes, that's just an untenable situation. And we provided a lot of good data about we will not win the AI race in this country if we don't move faster. So, I think those arguments are compelling. I think everyone understands them. So, we are optimistic that something will be done, but obviously, we'll have to wait to see the final order before we see what that solution is.

是的，早安，謝謝你的提問。很明顯地，自從我們提交申訴後，我們就沒有再與 FERC 進行溝通，因為那會構成單方面接觸（ex parte），但在提交之前我們開過幾次會議，而且我們也持續與其他關鍵利害關係人會面。我認為可以公平地說，大家都理解這裡確實存在問題。至於他們會怎麼做、是採納我們提出的選項還是提出他們自己的方案，我想仍有待觀察；但當資料中心希望在 24 個月或更短時間內完成併網，而競爭性招標流程恰好就需要這麼久時，這種情況根本無法持續。我們也提供了許多有力數據，說明如果我們不加快腳步，這個國家就無法在 AI 競賽中勝出。所以，我認為這些論點很有說服力。我想大家都理解這些論點。因此，我們對會採取行動抱持樂觀，但顯然在看到最終命令之前，我們還得等待，才能知道解決方案會是什麼。

Thanks Krista. If I could have a quick follow-up. Have you seen a counter complaint being filed with FERC on this?

謝謝你，Krista。如果我可以快速追問一下。你們有看到有人就此向 FERC 提出反向申訴（counter complaint）嗎？

Haven't seen a countercomplaint. The only thing that proponents of so-called competition have submitted are studies that cherry-pick a handful of projects that were competitive that came in, but nothing, I think, really compelling. Again, if you look at the data and the testimony that we filed with our complaint, I think it's really clear that so-called competition has not lowered costs for customers. In fact, it's increased costs in some cases and the costs associated with delay is far greater than any savings you might see.

沒有看到反向申訴。所謂支持「競爭」的人所提交的，只有一些研究，刻意挑選少數幾個採競爭方式的專案，宣稱結果不錯，但我認為沒有任何真正有說服力的內容。再說一次，如果你看我們在申訴中提交的數據與證詞，我認為很清楚，所謂的競爭並沒有為客戶降低成本。事實上，在某些情況下反而提高了成本，而且延遲所帶來的成本遠遠大於你可能看到的任何節省。

So really, all that so-called competition has accomplished is delay. And I mean, there's just—there’s just no evidence to contradict that. Furthermore, we've had a real-world situation where someone won a bid in Wisconsin and then three of those substations had to go to variance analysis because they couldn't be completed in time for a data center. So yes, of course, there’s, you know, there are other arguments out there. I would not characterize them as compelling, and they have not filed anything.

所以，所謂的競爭真正達成的只有延遲。而且我的意思是——完全沒有任何證據可以反駁這一點。此外，我們也有一個真實案例：有人在威斯康辛贏得標案，但其中三座變電站因為無法在資料中心所需時程內完工，不得不進行差異分析（variance analysis）。所以是的，當然，外面確實有其他論點。但我不會把它們形容為有說服力，而且他們也沒有提交任何文件。

That's good to know. Thanks for that and my congratulations to Gary on his retirement and all the best.

了解，這很有幫助。謝謝你的說明，也恭喜 Gary 退休，祝一切順利。

Robert Hope, Scotiabank.

Robert Hope，豐業銀行（Scotiabank）。

Good morning everyone. So, it would seem like you've been making some regulatory and contractual progress at TEP regarding the initial 300 megawatts. You know, this would include the USD40 million termination fee. Can you speak to what the next steps are for this project to get across the line and what milestones we should be watching?

各位早安。看起來你們在 TEP 針對最初的 300 兆瓦，已在監管與合約方面取得一些進展。其中包括 4,000 萬美元的終止費。你能談談這個專案接下來要完成落地（get across the line）的下一步是什麼，以及我們應該關注哪些里程碑嗎？

Yes. I'll turn that over to Susan Gray, CEO of UNS, so that she only says the things that are public.

好的。我把這題交給 UNS 的執行長 Susan Gray，讓她只談公開資訊。

Yes. Thanks, Dave, and thanks for the question, Rob. We just hit some really major milestones in terms of having that USD40 million letter of credit established and payments for the construction agreement to build out the substation and the transmission interconnection. So, the site has been prepared and they're starting to build at this point. So, Phase 1 is off and running.

好的。謝謝你，Dave，也謝謝你的提問，Rob。我們剛達成幾個非常重要的里程碑，包括已設立 4,000 萬美元的信用狀（letter of credit），以及就建設協議（construction agreement）支付款項，用於擴建變電站與輸電併網。因此，場址已完成整地，他們目前已開始施工。所以第一階段已經啟動並在推進中。

The next steps are really around expanding the capability at that first site up to a possible 600 megawatts. So, the first 300 is underway, now--now looking at doubling that capacity. And then the second site that's in Marana, just north of Tucson, we're also negotiating an agreement, a service agreement for that site. And so, then it's about, you know -- once we have all of the terms established, we will have to build new generation to serve those additional agreements and I think the terms of the contracts will help us -- help guide us in terms of what we need to build and when, so those are really the next steps, but really pleased to see that Phase 1 is underway and moving forward.

接下來的步驟主要是把第一個場址的能力擴增到最高可能 600 兆瓦。所以，第一個 300 兆瓦正在進行中，現在——現在在評估把容量加倍。另外，第二個場址在 Marana，位於圖森（Tucson）北方，我們也正在就該場址協商一份協議、也就是服務協議（service agreement）。因此，接下來就是——你知道——一旦所有條款都確立，我們就必須建置新的發電資源來服務這些新增協議；我認為合約條款將有助於我們——引導我們判斷需要建什麼、以及何時需要建置。所以這些就是下一步。不過我們很高興看到第一階段已經啟動並持續向前推進。

Alright. I appreciate that. And then my follow-up question relates to Phase 2. So, when you're thinking about planning for incremental generation requirements to serve the next phase of load there, you know how are you incorporating increasing delivery timelines for electrical equipment such as generators? You know, could you potentially look to lock these up a little bit earlier if you are able to get line of sight to an agreement or we'll call it, backstopping from the counterparty?

好的。謝謝你的說明。我的追問與第二階段有關。當你們在規劃為下一階段負載提供服務所需的增量發電需求時，你們如何把像發電機等電力設備交期拉長的情況納入考量？如果你們能對協議——或稱對手方的支持（backstopping）——有更清楚的可視性，是否可能更早把這些設備先鎖定下來？

Yes. I think we would really need to have certainty from the customer that they're going to move forward and have those customer protections in place. In order to -- and I think that's the incentive to get the agreement locked up here so that we can start moving forward with procurement and potentially partnering with a builder to start actually getting those sites going.

是的。我認為我們確實需要客戶給出確定性，確認他們會繼續推進，並把那些客戶保護條款（customer protections）落實到位。為了——而且我認為這也是促使我們把協議在此時敲定的誘因，如此我們才能開始推進採購，並可能與承包商合作，真正讓那些場址開始動工。

Alright, thank you, and Gary, all the best! That’s all.

好的，謝謝你，也祝 Gary 一切順利！我就到這裡。

Mark Jarvi, CIBC.

Mark Jarvi，加拿大帝國商業銀行（CIBC）。

Good morning everyone. Last quarter, you guys said that you thought maybe FERC would start to tie up some loose ends. We saw the decision on--on transmission operators in New England. Are you expecting more to come? Is there any expectation that they'll address the adders this year?

各位早安。上個季度你們提到，你們認為 FERC 可能會開始把一些懸而未決的事項收尾。我們也看到他們對新英格蘭輸電營運商的決定。你們預期還會有更多進展嗎？是否預期他們今年會處理那些加成（adders）？

Yeah, thanks, Mark. We haven't seen any indication. We're hopeful that, that stale docket finally kind of gets pushed aside and if they do want to address incentive adders that they do it in, you know, the fulsome approach that they started that way back when in 2020, which was looking at all the different incentive adders that you could add based on not just the RTO adder, that was in a bucket of several adders, including additions for using new technology, reducing costs, increasing reliability. So, if they do set that aside and want to address it, we hope that they would start with a fresh view of those incentives and what's needed on a going-forward basis.

是的，謝謝你，Mark。我們沒有看到任何跡象。我們希望那個久未更新的案卷（stale docket）最終能被擱置；如果他們確實想處理激勵性加成（incentive adders），我們也希望他們能以更全面的方式來做——就像他們早在 2020 年啟動時那樣——也就是檢視所有不同類型、可加入的激勵性加成，而不只是 RTO 加成；RTO 加成只是多個加成中的一項，還包括採用新技術、降低成本、提升可靠性等加成。所以，如果他們把那個案子擱置、並想要處理這個議題，我們希望他們能以全新的角度來看這些激勵措施，以及未來持續推進所需要的內容。

Okay. And then in the last week, there's been some media reports about a potential executive order around some things like dynamic line rating, reconducting for transmission from the White House. Is that something you guys feel like will come through? And what could that mean for ITC, if anything?

了解。另外，過去一週有一些媒體報導提到，白宮可能會就動態線路額定（dynamic line rating）、輸電線路更換導線（reconductoring）等事項發布潛在的行政命令。你們覺得這會成真嗎？如果有的話，對 ITC 可能意味著什麼（如果有的話）？

I can't say it, that's the first I heard of that. So, Krista, is this something that you've heard? So, you know, obviously, the things like dynamic line rating and other conductor -- reconductoring for higher capacity is something that we always look at from an affordability perspective, but I had no idea there was an executive order chatter on it. Krista?

我無法評論，這是我第一次聽到這件事。所以，Krista，這是你有聽說過的嗎？所以，你知道，很明顯，像動態線路額定值（dynamic line rating）以及其他導線——為提高容量而進行的更換導線（reconductoring）——這些都是我們一向會從可負擔性角度來評估的事項，但我完全不知道有關於此的行政命令傳聞。Krista？

Yeah, I think there was just something that came out yesterday, Dave, so you're not behind. And yeah, there's always discussion about the proper use and are we using dynamic line ratings and other technology enough? I think, you know, for ITC, we use it, we have used it when appropriate and when we don't -- when it's not appropriate, we don't.

是的，我想昨天才剛有一些消息出來，Dave，所以你並沒有落後。而且，是的，大家一直都在討論如何正確使用，以及我們是否充分運用動態線路額定值和其他技術。我想，你知道，對 ITC 而言，我們在適當時會使用；不適當時——我們就不會用。

So I think we're hopeful through the conversations we've had that it wouldn't be an across-the-board mandate or to use it when it doesn't make sense. I think if there is an executive order issue that it would just be for FERC to look at it and consider it, which frankly, they do when utilities do anyway. So, I don't see this as significantly moving the needle rather than just advancing the conversation that's already happening.

所以我想，基於我們已進行的對話，我們希望不會變成一刀切的強制要求，或在不合理的情況下也必須使用。我想如果真的有行政命令相關議題，可能只是要求 FERC 去檢視並加以考量；坦白說，公用事業在做的時候，他們本來就會考量這些。因此，我不認為這會對局勢造成顯著改變，更多只是推進一個本來就正在進行的討論。

Understood. And just last question for me, just some other media reports about, you know, BC LNG, you know Woodfibre expansion, can you remind us again where the pipe is sized right now, if there's the potential to do incremental investments there in BC?

了解。我最後一個問題：有一些其他媒體報導提到，例如卑詩省 LNG、Woodfibre 擴建。你能再提醒我們，目前那段管線的設計尺寸是多大？在卑詩省那邊是否有可能做一些增量投資？

Roger, do you want to take that one?

Roger，你要回答這題嗎？

Yes. Thanks, Dave. There is an opportunity to expand pipe. It would require a de--debottlenecking further upstream from the current expansion of our pipeline. We haven't entered into discussions yet with Woodfibre, but it's something that we will be looking at, I'm sure, in the near future here.

好的。謝謝，Dave。確實有擴大管線的機會。但這需要在我們目前管線擴建段的更上游進一步進行去瓶頸（debottlenecking）。我們尚未與 Woodfibre 展開討論，但我相信這是我們在不久的將來會評估的事項。

Ok, thanks everyone

好的，謝謝各位。

Benjamin Pham, BMO.

Benjamin Pham，BMO。

Good morning, I want to stay at BC. You mentioned the environmental assessment update on the Tilbury storage site. Was that in response to the Middle East situation that's occurring? And maybe just add incremental context on future expansion if that potentially could be accelerated?

早安，我想繼續談卑詩省。你提到 Tilbury 儲存場址的環境評估更新。那是因應目前正在發生的中東局勢嗎？另外，能否補充一些未來擴建的增量背景：若有可能，是否會加速？

Yes. So far, everything that we have been doing has been based on projects that we've had in the queue for quite a while. So, nothing that's incremental or increased due to the Middle East. Obviously, there's a lot of attention on LNG. It's having quite the moment now and that's probably the genesis of that prior question on looking at whether or not you can increase capacity at Woodfibre for additional LNG. But that EA was just the, there's a couple of different EAs going on, one is related to the Tilbury tank, the larger size one that we got approved last year. And the other is for any ultimate additional LNG liquefaction capacity that we can put at the Tilbury site, which is we refer to as Tilbury 2 in that EA process. So, nothing that is directly, I'll say, impacted or pushed by the current situation.

是的。到目前為止，我們所做的一切都是基於已在排程中、排隊很久的專案。所以，沒有任何因中東情勢而新增或增加的內容。當然，市場對 LNG 的關注度很高。它現在正處於熱潮之中，這大概也是前一個問題的起因：是否能在 Woodfibre 增加容量以供更多 LNG。但那個環評（EA）只是——目前有幾個不同的環評在進行，其中一個與 Tilbury 儲槽有關，也就是我們去年獲批的較大尺寸儲槽。另一個則是針對我們最終可在 Tilbury 場址增設的任何額外 LNG 液化產能；在該環評流程中，我們稱之為 Tilbury 2。所以，沒有任何是直接受到、我會說，被目前情勢影響或推動的。

Okay. Got it. And maybe switch to the stats that you – or your expectation, the customer impacts from the data center volume integration and particularly the pronounced impacts you're seeing in the U.S. Midwest throughout the decade. Is that something you think is more applicable to the Fortis, especially magnitude, or is that -- do you think that's more of a broader industry trend that you're anticipating? And maybe just related to that, is there any expectation that this is more of a lot more room for rate base acceleration?

好的。了解。另外想切換到你提到的統計數據——或你的預期：資料中心用量併網對客戶的影響，尤其是你看到在未來十年美國中西部的影響相當明顯。你認為這對 Fortis 更適用（特別是影響幅度）嗎？還是——你認為這是你所預期的更廣泛產業趨勢？以及與此相關，是否預期這會帶來更多的資產基礎（rate base）加速成長空間？

Yes, it is a broader sector, I'll say it's broader depending on how you're doing it. If you're making sure that the data centers are paying for the incremental or marginal generation that's being installed and I'll say, infrastructure in general, that's being installed to supply them and you're recovering that from that data center with all of, of course, the appropriate credit enhancements, et cetera. And then you are also getting a bit of contribution back to paying for the rest of the infrastructure that's needed to support that. You don't just pop it on the grid and not need to have the ancillary services and all the rest of the support that you get from the overall grid.

是的，這是更廣泛的產業現象——我會說，是否「更廣泛」也取決於你怎麼做。如果你確保資料中心為新增或邊際的發電資源買單，並且我會說，為了供應它們而建置的一般基礎設施也由其負擔，且你透過資料中心回收這些成本，同時配套所有適當的信用增強等措施。然後你也能獲得一些回饋，用來分攤支持其所需的其餘基礎設施成本。你不可能只是把它接上電網，卻不需要輔助服務以及整體電網所提供的其他支援。

Then it will have a positive impact for customers. You know, obviously, ITC is the transmission rate, you're putting a ton of kWh on that system and you're basically doing a few interconnections to get there. So, it's got some really good economics as that percentage decrease reflects. And then in Arizona, same thing. If you're not building even on the next phases, we would make sure that whatever those next phases are that those data centers are paying for that marginal cost of energy and then some so that there is a positive customer contribution.

那麼它就會對客戶帶來正面影響。你知道，顯然 ITC 是輸電費率，你把大量的 kWh 放到那個系統上，而你基本上只需要做少數幾個併網點就能達成。因此，它的經濟性非常好，正如那個百分比下降所反映的。而在亞利桑那州也是同樣道理。即使你還沒建到下一階段，我們也會確保無論那些下一階段是什麼，資料中心都要支付那部分邊際能源成本，並且還要多一些，讓客戶能有正向的貢獻。

So it is -- if you're doing it right, especially if you're in a region where you're controlling those portions of the cost, whether it's ITC as a transmission-only company or a vertically integrated utility, we have the ability to see quite clearly how that will benefit customers.

所以——如果你做得對，特別是在你能掌控那些成本構成的區域，不論是像 ITC 這樣的純輸電公司，或是垂直整合型公用事業，我們都能非常清楚地看到這將如何讓客戶受益。

And do you think this is maybe a kW to rate base conversion similar to that recent historical trend of OpEx to rate base?

你認為這可能是一種從 kW 到資產基礎（rate base）的轉換，類似於近期歷史上從 OpEx 轉到資產基礎的趨勢嗎？

Yes. So there's -- yes, it's all going -- you always have to look at things on a bill basis on what our customers pay. So, it does -- anything that puts downward pressure on bills is a good thing. And that's really what we're focused on, not necessarily saying, well, downward pressures allow for additional incremental investments. We're only making the investments that we need to, to provide value to our customers. So the more offsets we have for those needed investments that don't necessarily pay for themselves. We have a lot of, you know, CapEx or OpEx kinds of conversations, steel for fuel, whatever you want to call it, where you are replacing some of the operating costs with capital and still maintaining or even decreasing customers' bills in that sense. But there are things around resiliency and other investments that we have to make that would normally just increase costs so it is good to have this other side of the ledger helping to keep customers' rates balanced.

是的。所以——是的，這一切都會回到你必須以帳單為基礎來看，也就是我們客戶實際支付的金額。因此，任何能對帳單形成下行壓力的因素都是好事。而這正是我們關注的重點，不一定是說，下行壓力就允許額外的增量投資。我們只會做我們必須做的投資，以便為客戶創造價值。所以，我們越能用其他方式抵銷那些必要但不一定能自我回收的投資，就越好。我們有很多關於資本支出（CapEx）或營運支出（OpEx）的討論，例如以鋼材替代燃料（steel for fuel）之類的概念——也就是用資本支出取代部分營運成本，同時仍能維持，甚至降低客戶帳單。但在韌性（resiliency）等方面，還有一些我們必須做的投資，通常會推升成本；因此，能有這一端的帳目來幫助維持客戶費率的平衡，是件好事。

Ok understood, thank you, very useful.

好的，了解，謝謝你，非常有幫助。

(Operator Instructions) John Mould, TD Cowen.

(接線員指示) John Mould，TD Cowen。

Hi there, good morning everybody. Maybe just starting with the Tucson Electric rate case and, you know, appreciating it's a live rate case. Just wondering if you could provide some initial thoughts on how the parameters in the rate ask have been received and any points of debate so far that may have varied versus what you saw in the UNS Gas rate case process that concluded in February and I'm thinking both about the formulaic rate ask and just also the broader points of the rate case.

大家早安，您好。或許先從 Tucson Electric 的費率案件開始談起，也理解這是一個仍在進行中的費率案件。想請問您是否能提供一些初步看法：這次費率申請中的各項參數目前的接受度如何，以及到目前為止有哪些爭點，可能與二月結案的 UNS Gas 費率案件流程中所見有所不同？我想同時涵蓋公式化費率申請，以及費率案件更廣泛的議題。

Yes, John, it's an obviously an ongoing rate case. The testimony started a couple of weeks ago, meaning the in-person testimony, of course, most of this is actually done trade and paper testimony, which frankly hasn't -- we haven't seen anything come up in the hearings that would surprise us from a perspective of not already seeing or hearing the conversation or arguments in the written testimony. So, we were really pleased with the UNS Gas outcome. We were the first utility in Arizona. The UNS Gas was to get that formula rate.

是的，John，這顯然是一個仍在進行中的費率案件。證詞在幾週前開始，也就是現場作證；當然，多數其實是透過書面與文件證詞進行。坦白說，在聽證會上我們沒有看到任何會讓我們意外的內容，因為相關的討論或論點在書面證詞中我們大多已經看過或聽過。所以，我們對 UNS Gas 的結果非常滿意。我們是亞利桑那州第一家公用事業公司。UNS Gas 是取得該公式費率的案例。

We see that we're basically having those same types of conversations in the TEP rate case. So I think it bodes well from that perspective, but it's still you know, in the middle of the process, so we'll kind of couch it at that.

我們看到在 TEP 的費率案件中，基本上也在進行同樣類型的對話。因此，從這個角度來看，我認為這是個好兆頭，但目前仍在流程中，所以我們就先保留在這個程度的說法。

Okay. No, that's fair. And then maybe just stepping back, you know one of the broader opportunities above and beyond the existing capital plans. I'd be curious to know just which are you the most optimistic about in terms of -- turning some of those more aspirational opportunities into firm, secured investment and what are some of the near-term opportunities or items that extend beyond your current capital planning horizon right now?

好的。不，這很合理。那麼或許退一步來看，除了既有資本計畫之外，還有一些更廣泛的機會。我想了解的是：就把一些較具願景性的機會轉化為確定、已取得保障的投資而言，您最樂觀的是哪些？以及目前有哪些短期機會或事項，是超出你們現行資本規劃視野的？

Yes, we've got a really good slide in our deck that kind of breaks this conversation up into the two different time frames. One is, you know, what's possible in the -- kind of in the current five-year capital plan and then what's possible post five-year capital plan. And, you know, obviously, we're generally like most folks, focused on getting those near-term opportunities while still working to get those longer-term opportunities that fill in the growth opportunities later on.

是的，我們在簡報中有一張很好的投影片，把這個討論大致分成兩個不同的時間範圍。一個是，在目前五年資本計畫內有哪些可能性；另一個是五年資本計畫之後有哪些可能性。而且，顯然我們和多數公司一樣，一方面專注於把握近期機會，同時也持續推進較長期的機會，以便在未來補足成長動能。

But we have a lot of that just in things that are already happening like the rest of the, you know, Tranche 1, Tranche 2.1 and wherever MTEP-26 goes, there's a lot of transmission opportunities that are longer term but really, the short-term ones are, you know, some additional data center connections that could happen in, and manufacturers -- general interconnections, generation and load in ITC's footprint.

不過，我們有很多機會其實已經在發生，例如其餘的 Tranche 1、Tranche 2.1，以及 MTEP-26 最終走向如何；其中有許多是較長期的輸電機會。但短期方面，則包括一些可能發生的額外資料中心接入，以及製造業——在 ITC 服務範圍內的一般互聯，包括發電與負載的互聯。

And then, of course, the data center developments that we have in Arizona, those can be -- well, they'd love them to be even shorter term, at least from a data center perspective and as quick as possible, but, you know, timing and availability of the equipment, et cetera, can delay that a little bit. So we are looking at those opportunities and we still have a huge additional one that we really aren't talking about yet because we're in the process of developing the integrated resource plans in Arizona, but that's going to spit out some longer-term investment opportunities for us as well. So, a very target-rich environment as it were.

另外，當然還有我們在亞利桑那州的資料中心開發案；就資料中心的角度而言，他們希望能更短期、越快越好，但時程與設備可得性等因素，可能會讓進度稍微延後。因此我們正在評估這些機會；同時我們還有一個很大的額外機會，目前還不便多談，因為我們正在亞利桑那州制定整合資源規劃（IRP），而那將為我們帶來一些更長期的投資機會。所以可以說是一個目標非常多的環境。

Ok, I’ll leave it there, Thanks for answering my question.

好的，我就先到這裡。謝謝你回答我的問題。

Patrick Kenny, National Bank.

Patrick Kenny，National Bank。

Good morning. Just a quick question on FortisAlberta with, you know I guess, the number of proponents here looking for data center projects and I know I've seen FortisAlberta partner up with a couple of projects. Just wondering if you could walk us through some of those partnerships and, you know, help us distill the overall upside potential if and when the Phase 2 allocation does take off in the province.

早安。關於 FortisAlberta 我有個簡短問題：目前似乎有不少提案方在尋求資料中心專案，我也看到 FortisAlberta 與其中幾個專案建立了合作夥伴關係。想請您帶我們了解一下這些合作內容，並協助我們釐清：如果以及當該省的第二階段（Phase 2）配額真正啟動時，整體上行潛力大概會是什麼樣子？

Yeah, thanks, Patrick. I'm going to kick that over to Janine Sullivan, CEO of FortisAlberta.

好的，謝謝你，Patrick。我把這題交給 FortisAlberta 的執行長 Janine Sullivan。

Good morning, Patrick, and thanks for the question. There certainly is a lot of data center activity, certainly a lot of discussion first happening in the province. And with the ISO having introduced its 1,200-megawatt cap, it certainly is leading to discussions at the distribution level as to how we can interconnect some of the smaller loads that they want more imminently interconnected. So, lots of conversations going on between ourselves, the transmission facility owner and operator and the AESO right now as to how we can facilitate the more timely interconnection of some of this data center opportunity for the province sooner than later.

早安，Patrick，謝謝你的提問。資料中心的活動確實非常多，省內也確實先有很多討論在進行。而且 ISO 推出 1,200 兆瓦的上限後，確實促使配電層級開始討論：我們如何能讓他們希望更快接入的一些較小負載，能更即時地完成互聯。因此，目前我們、輸電設施所有者與營運者，以及 AESO 之間正在進行許多對話，討論如何促成讓本省這些資料中心機會能更及時地互聯，越早越好。

Ok that’s great thank you.

好的，太好了，謝謝。

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

我們的問答環節到此結束。我想把電話交回給 Amaimo 女士，請她做任何結語。

Thank you, Betsy. We have nothing further at this time. Thank you, everyone, for participating in our first quarter conference call. Please contact Investor Relations should you need anything further and have a great day.

謝謝你，Betsy。我們目前沒有其他補充。感謝各位參與我們第一季電話會議。如需任何進一步資訊，請聯絡投資人關係部門，祝各位有美好的一天。

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

今天的電話會議到此結束。您可以掛斷電話線。感謝您的參與，祝您有愉快的一天。