Fortis Inc.: 2Q Results In Line; AZ Large Load & Regulatory Strategy In Focus; Tilbury Approved

Research evidence excerpt

Fortis Inc.: 2Q Results In Line; AZ Large Load & Regulatory Strategy In Focus; Tilbury Approved

J P M O R G A N North America Equity Research

31 July 2026

Fortis Inc. Underweight

FTS.TO, FTS CN

2Q Results In Line; AZ Large Load & Regulatory Price (30 Jul 26):C$80.57

Strategy In Focus; Tilbury Approved

North American Utilities

• AZ large load negotiations approach the finish line; IRP filing timing Eli Jossen, CFA AC

shifts. FTS continues to advance large load growth in Arizona, with the initial (1-212) 622-4113

300 MW ESA progressing using existing capacity and no incremental capital eli.jossen@jpmchase.com

required. Negotiations for an additional 300 MW at the first TEP site and 500– Jeremy Tonet, CFA

700 MW at a second location approach resolution; we look for incremental call (1-212) 622-4915

color on execution timing and capital implications. The AZ IRP filing, jeremy.b.tonet@jpmorgan.com

previously targeted for August, may slip to October following an APS Aidan C Kelly

extension request, which should provide further visibility on generation (1-212) 622-4912

aidan.x.kelly@jpmchase.com

investment needs and the pace of large load contracting. UNS Energy targets

Diana Niles

a 7.2% rate base CAGR from $8.4bn in 2025 to $11.5bn by 2030, with the TEP (1-212) 622-3328

Transmission Project ($608mm, ISD 2029) and Springerville Natural Gas diana.niles@jpmorgan.com

Conversion ($238mm, ISD 2030) anchoring near-term spend. J.P. Morgan Securities LLC

• ACC primary alters Republican ticket; TEP timeline updated. The ALJ

extended the TEP rate case procedural schedule in June 2026, pushing the final

decision to November 17, 2026. ACC staff recommended a 9.75% ROE and

55% common equity component. Separately, the recent ACC primary featured

incumbent Commissioner Myers losing to Rep.