Regulation (Tables)

12 Months Ended

Dec. 31, 2023


Nature of Regulation		Allowed Common Equity (%)		Allowed ROE (1) (%)
Regulated Utility	Regulatory Authority			2023		2022	Significant Features
ITC	Federal Energy Regulatory Commission ("FERC")	60.0		10.77	(2)	10.77	Cost-based formula rates, with annual true-up mechanism (3) Incentive adders


TEP	Arizona Corporation Commission ("ACC")	54.3		9.55	(4)	9.15	COS regulation Historical test year
	FERC	(5)		9.79		9.79	Formula transmission rates
UNS Electric	ACC	52.8		9.50	(6)	9.50
UNS Gas	ACC	50.8		9.75		9.75

Central Hudson	New York State Public Service Commission ("PSC")	48.0	(7)	9.00		9.00	COS regulation Future test year


FortisBC Energy	British Columbia Utilities Commission ("BCUC")	45.0		9.65	(8)	8.75	COS regulation with formula components and incentives (8)

FortisBC Electric	BCUC	41.0		9.65	(8)	9.15	Future test year

FortisAlberta	Alberta Utilities Commission ("AUC")	37.0		8.50		8.50	PBR (9)

Newfoundland Power	Newfoundland and Labrador Board of Commissioners of Public Utilities	45.0		8.50		8.50	COS regulation Future test year


Maritime Electric	Island Regulatory and Appeals Commission	40.0		9.35		9.35	COS regulation Future test year


FortisOntario (10)	Ontario Energy Board	40.0		8.52-9.30		8.52-9.30	COS regulation with incentive mechanisms

Caribbean Utilities (11)	Utility Regulation and Competition Office	N/A		7.50-9.50		6.25-8.25	COS regulation Rate-cap adjustment mechanism based on published consumer price indices

FortisTCI (12)	Government of the Turks and Caicos Islands	N/A		15.00-17.50		15.00-17.50	COS regulation Historical test year

(1) ROA for Caribbean Utilities and FortisTCI

(2) Includes the allowed common equity and base ROE plus incentive adders for ITCTransmission, METC, and ITC Midwest. See "Significant Regulatory Matters" below

(3) Annual true-up collected or refunded in rates within a two-year period

(4) Allowed common equity of 54.3% and ROE of 9.55% effective September 1, 2023. See "Significant Regulatory Matters" below

(5) The allowed common equity component for FERC transmission rates is formulaic, and is updated annually based on TEP's actual equity ratio

(6) Allowed common equity of 53.7% and ROE of 9.75% effective February 1, 2024. See "Significant Regulatory Matters" below

(7) Effective July 1, 2021 Central Hudson's approved common equity component of capital structure was 50%, declining by 1% annually to 48% in the third rate year. A general rate application requesting new customer rates effective July 1, 2024 is ongoing. See "Significant Regulatory Matters" below

(8) See "Significant Regulatory Matters" below. Formula and incentives have been set through 2024

(9) FortisAlberta was subject to a COS revenue requirement in 2023. In 2022, FortisAlberta was subject to PBR, including mechanisms for flow-through costs and capital expenditures not otherwise recovered in customer rates. See "Significant Regulatory Matters" below

(10) Two of FortisOntario's utilities follow COS regulation with incentive mechanisms, while the remaining utility is subject to a 35-year franchise agreement expiring in 2033

(11) Operates under licences from the Government of the Cayman Islands. Its exclusive transmission and distribution licence is for an initial 20-year period, expiring in April 2028, with a provision for automatic renewal. Its non-exclusive generation licence is for a 25-year term, expiring in November 2039

(12) Operates under 50-year licences from the Government of the Turks and Caicos Islands, which expire in 2036 and 2037