Fortis : J.P. Morgan Energy, Power & Renewables Conference 2022

INVESTOR PRESENTATION

June 2022

FORWARD-LOOKING INFORMATION

Fortis includes forward-looking information in this presentation within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking information"). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would, and the negative of these terms, and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: GHG emissions reduction targets and projected asset mix; forecast capital expenditures for 2022-2026, including cleaner energy investments; forecast rate base and rate base growth through 2026; the nature, timing, benefits and costs of certain capital projects and additional opportunities beyond the capital plan, including the MISO long-range transmission plan and the Lake Erie Connector Project; targeted average annual dividend growth through 2025; the expected timing, outcome and impacts of regulatory proceedings; expected funding sources for the capital plan and expected capital structure; potential impacts of changes in commodity prices and supply chains; and scheduled debt maturities.

Forward looking information involves significant risks, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: no material impact from volatility in energy prices, the global supply chain or rising inflation; reasonable regulatory decisions and the expectation of regulatory stability; the successful execution of the capital plan; no material capital project or financing cost overrun; no material changes in the assumed U.S. dollar to Canadian dollar exchange rate; sufficient human resources to deliver service and execute the capital plan; no significant variability in interest rates; and the Board exercising its discretion to declare dividends, taking into account the business performance and financial condition of the Corporation. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward- looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this presentation. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Unless otherwise specified, all financial information is in Canadian dollars and rate base refers to midyear rate base.

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A PREMIUM ENERGY DELIVERY BUSINESS

93% Transmission & Distribution Assets

HIGH QUALITY PORTFOLIO

10 Regulated Utility Businesses

3.4M Electric & Gas Customers

9,100 Employees

99% Regulated Utility Assets

~$28B Market Capitalization(1)

~12% Average Annual 20-Year Total Shareholder Return(1)

$31.1B 2021 Rate Base

(1) As of June 17, 2022.

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BUILDING ON OUR COMMITMENT TO A CLEAN ENERGY FUTURE WITH A 2050

PATHWAY TO NET-ZERO

2019

Achieved 20% GHG Emissions Reduction Since 2019

2021

50% GHG Emissions Reduction

NET-ZERO TARGET

20302032 Coal-FreeGeneration Mix

2035

75% GHG Emissions Reduction Target by 2035

Compared to 2019 Levels

ADDING CLEAN GENERATION

3,400 MW Planned Additions of Wind, Solar and Storage from 2022-2035

PLANNED COAL RETIREMENTS
2022	2027	2031	2032
-170 MW	-387 MW	-110 MW	-406 MW
San Juan	Springerville	Four Corners	Springerville
	Unit #1		Unit #2

Net-Zero Target

(Scope 1)

2050

Actual GHG Emissions Reduction

Forecast GHG Emissions Reduction

Illustrative Emissions Reduction

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TEP GENERAL RATE APPLICATION - OVERVIEW

Application supports TEP's clean energy transition and continued delivery of safe and reliable service

			2017 Rate Case	2020 Rate Case	2022 Rate Case
			Application	Settlement	Application	Decision	Application
Test Year	June 30, 2015	December 31, 2018	December 31, 2021
New Rates Effective		January 2017	February 2017	May 2020	January 2021	September 2023
Rate Base		US$2B	US$2B	US$2.7B	US$2.7B		US$3.6B(1)
Non-Fuel Rate Increase		US$110M	US$82M	US$115M	US$58M		US$159M
Equity/Debt		50%/50%	50%/50%	53%/47%	53%/47%		54%/46%
ROE(2)			10.35%	9.75%	10.35%	9.15%		10.25%
Adjustor Mechanisms:
•	Purchased Power & Fuel Adjustment Charge (PPFAC)			✓		✓			✓
•	Lost Fixed Cost Recovery Mechanism (LFCR)			✓		✓			✓
•	Demand Side Management (DSM)			✓		✓	DSM		Base rates
•	Renewable Energy Standard (REST)			✓		✓	REST		Base rates
•	Environmental Cost Adjustor (ECA)(3)			✓		✓	Repurposed to RTM
•	Tax Expense Adjustor Mechanism (TEAM)					✓			✓
•	Transmission Cost Adjustment Mechanism (TCA)					✓			✓
•	Resource Transition Mechanism (RTM)(3)							NEW

1. Includes US$0.2B in post-test year adjustments.
2. Excludes fair value increment.
3. The RTM seeks to recover new clean energy investments, subject to annual cap of total revenues and replace the current ECA .

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