#1FORTIS 414 Investor Relations Presentation January 2018 FORTIS#2Forward-Looking Information Forward-Looking Information Fortis Inc. ("Fortis" or the "Corporation") 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 included in this presentation reflects the expectations of Fortis management regarding future growth, results of operations, performance, 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 forward-looking information, which includes, without limitation: targeted average annual common share dividend growth through 2022; the Corporation's forecast gross consolidated and segmented capital expenditures for 2017 and the period 2018 through 2022; the Corporation's consolidated and segmented forecast rate base for 2017 and the period 2018 through 2022 and associated compound annual growth rate for the period 2018 through 2022; average consolidated credit facilities for the period 2018 through 2022; the expected timing of filing of regulatory applications and receipt and outcome of regulatory decisions; the nature, timing and expected costs of certain capital projects including, without limitation, the FortisBC Pipeline Integrity Management Program and Eagle Mountain - Woodfibre Gas Pipeline Project, UNS Flexible Generation Resource investment and Combined Cycle Generation purchase; additional opportunities beyond the base plan including, without limitation, the Wataynikaneyap Project and the Lake Erie Connector; potential aggregate capital opportunities for the period 2018 through 2022; and expected impacts of U.S. tax reform on the Corporation's earnings and cash flows. Forward-looking information involves significant risk, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally, including those identified from time to time in the forward-looking information. Such risk factors or assumptions include, but are not limited to: uncertainty regarding the outcome of regulatory proceedings of the Corporation's utilities and the expectation of regulatory stability; no material capital project and financing cost overrun related to any of the Corporation's capital projects; sufficient human resources to deliver service and execute the capital program; the Board of Directors exercising its discretion to declare dividends, taking into account the business performance and financial conditions of the Corporation; risk associated with the impact of less favorable economic conditions on the Corporation's results of operations; no significant changes in laws and regulations that may materially negatively affect the Corporation and its subsidiaries; and currency exchange rates. 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 Fortis with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information included in this presentation is given as of the date of this presentation and 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 referenced is in Canadian dollars and references to rate base refer to mid-year rate base. FORTIS 2#3Our Strategy Simple, Effective, Proven - Strategy Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial strength to develop growth opportunities Dividend Growth Target: 6% Average Annual Growth Through 2022 Strategic Initiatives Execute Utility ITC Transmission Deliver Cleaner Enhance Customer & CAPEX Plan Growth Energy Regulatory Relationships FORTIS Investment-Grade Credit Ratings Unlock LNG Value Pursue Energy Infrastructure in and Near Existing Service Territories 3#4High Quality & Diverse Utility Portfolio Highly regulated, predominantly wires and gas LDCs (1) $47 Total Assets Billion in (1) ~97%* REGULATED UTILITY ASSETS ~91% TRANSMISSION, (2) DISTRIBUTION & OTHER ASSETS 10 Utility Operations CANADA, UNITED STATES, CARIBBEAN ~60% EARNINGS FROM THE U.S. 3.2 - Million Utility Customers 2.0 + ELECTRIC GAS (1) As at September 30, 2017. (2) As at December 31, 2016. FORTIS 4#5High Quality & Diverse Utility Portfolio One of the lowest-risk utility businesses in North America FORTIS FORTIS BC™ British Columbia Alberta FORTIS ALBERTA MARITIME ELECTRIC A FORTIS COMPANY Newfoundland FORTIS ONTARIO ITC A FORTIS COMPANY Одо Minnesota Δ UNS UNS Energy Corporation Ontario Iowa Missouri Kansas Arizona Oklahoma Δ Michigan Illinois Prince Edward Island New York State PA NEWFOUNDLAND POWER A FORTIS COMPANY People. Power. Possibilities, Central Hudson A FORTIS COMPANY Regulated Electric Regulated Gas FERC-Regulated Electric Transmission Long-Term Contracted Hydro Generation BECOL Belize Electric Company Ltd. A FORTIS COMPANY Caribbean Utilities Cayman Islands Belize Turks and Caicos Islands FORTIS TCI Luontes 5 сл#6Executed Well in 2017 ~6.25% Dividend Increase in Q4 '17 FORTIS INC. ~$3.1B 2017F Capital Plan ✓ 44th consecutive annual dividend payment increase Focused on organic growth Fortis 2017F Rate Base $25.4B On track UNS UNS Energy Corporation Regulated- Canadian & Caribbean (Electric & Gas) 47% Regulated- Independent Transmission (ITC) 29% ✓ Constructive rate case settlements reached in Q1 FORTIS ITC A FORTIS COMPANY Regulated-U.S. (Electric & Gas) 24% ✓Integration on track ✓ Accretive to EPS 6#7Strong Track Record of Rate Base and EPS Growth 2011-2016 Rate Base ($ billions (¹)) Adjusted Earnings Per Share ($ millions) Rate base Rate base excluding acquisitions of U.S. subsidiaries $24.3 5-Year CAGR ~25% $6.9 ~7% 5-Year CAGR 7.1% $2.33 $16.4 $2.11 $14.0 10% $6.1 $5.5 $1.65 $1.72 $1.70 $1.75 $4.5 21% $10.2 $8.7 $1.0 $8.1 3% 4% -1% $10.9 $11.3 $8.1 $8.7 $9.2 $9.5 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Change (%) Regulated - Independent Electric Transmission (ITC) Regulated U.S. Electric & Gas - Regulated Canadian & Caribbean Electric & Gas (1) US dollar-denominated rate base converted at the historical USD/CAD exchange rates as reported in the respective filed annual reports. FORTIS 7#8($ billions) Past Acquisition Success Delivers Strong Growth Platform Today Rate Base from Acquisition to 2017F(¹) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 $1.3 1.0 $0.6 $0.5 0.5 $3.2 $2.9 $4.1 $1.5 $1.0 $3.3 $4.7 2004 2017F 2004 2017F FortisBC Electric Fortis Alberta 2007 2017F FortisBC Gas 2013 2017F Central Hudson 2014 2017F UNS Energy Rate Base at Acquisition I 2017F Rate Base (1) US dollar-denominated historical rate base converted at the USD/CAD exchange rates as reported in the respective filed annual reports. US dollar-denominated 2017F rate base is translated at a forecast USD/CAD foreign exchange rate of $1.28. FORTIS 8#944 Consecutive Years of Annual Dividend Payment Increases Guidance extended through 2022 5-Year CAGR 6.3% 73% 73% 70% 66% 66% 64% 2012 2013 2014 2015 2016 Average annual dividend growth through 2022 targeted at ~6% (1) 2017F 2018F 2019F 2020F 2021F 2022F Dividend payout ratio(²) (1) 2017 forecast dividend payout ratio based on the consensus EPS estimate of $2.52 as at December 31, 2017. (2) Dividend payout ratio adjusted for non-operating items. FORTIS 9#10Supporting the Delivery of Superior Total Shareholder Returns • Average annualized total shareholder return over last 5 years (¹) Fortis 10.2% S&P/TSX Composite Index 8.6% S&P/TSX Capped Utilities Index 6.9% (1) For the 5-year period ending December 31, 2017. FORTIS 10#11Credit Metrics Support Credit Ratings Ample liquidity through forecast period Credit Ratings Fortis Inc. (1) Consolidated Credit Facilities 6.0 5.0 S&P A- / BBB+ 4.0 4.0 DBRS BBB (high) Moody's (2) Baa3 ($ billions) 3.0 30 3.3 "Fortis Inc. has a very strong business risk profile, which is a key credit strength. More than 95% of its cash flow comes from a diverse portfolio of low risk investment grade regulated utilities with an average rating of A3." - Moody's Credit Opinion (September 27, 2017) (3) 2.0 10 1.0 1.3 1.7 00 0.0 Sept 30/17 Avg 2018-2022 ■Utilized ■Remaining Capacity (1) US dollar-denominated credit facilities are translated at an actual USD/CAD foreign exchange rate of $1.248 as at September 30, 2017 and at a forecasted USD/CAD foreign exchange rate of $1.28 for the 5-year forecast period 2018-2022. (2) In September 2017, Moody's affirmed the Corporation's long-term issuer and unsecured debt credit ratings. (3) Please refer to Moody's report for the full assessment. FORTIS 11#12Regulatory Stability Supporting Highly Regulated Asset Base Remaining Significant Regulatory Decisions Regulated Utility Application/Proceeding Expected Filing Date Decision 97% Regulated Utility Assets as at September 30, 2017 3% 16% ITC Second MISO Base ROE Complaint Not applicable To be determined 37% Central Hudson Rate case filing to request an increase in the allowed ROE to 9.5% from 9.0% and equity component of capital structure to 50% from 48% FORTIS July 2017 July 2018 44% ■ Electric Transmission- ITC ■Gas ■Non-Regulated Energy Infrastructure 2017 Weighted Average Allowed ROE 9.75% Actual Equity Thickness 48.2% 12 12#13Capital Program Increases Rate Base to ~$32B by 2022 Capital Expenditures(¹) (billions) $14.5 Five-Year Capital Plan Rate Base (2) (billions) 5.2% CAGR $3.2 4.5% CAGR $31.7 $2.8 $2.9 $2.9 $29.6 $30.4 $2.7 $28.5 $26.8 $25.4 2018F 2019F 2020F 2021F 2022F 2017F 2018F 2019F 2020F 2021F 2022F (3) Regulated - Canadian & Carribbean Electric & Gas ■Regulated - U.S. Electric & Gas ■Regulated - Independent Electric Transmission (ITC) Other Energy Infrastructure Regulated - Canadian & Caribbean Electric & Gas Regulated - U.S. Electric & Gas ■Regulated - Independent Electric Transmission (ITC) (1) US dollar-denominated capital expenditures are translated at a forecast USD/CAD foreign exchange rate of $1.28. (2) US dollar-denominated rate base is translated at a forecast USD/CAD foreign exchange rate of $1.28 and does not reflect impacts of U.S. tax reform legislation enacted in December 2017. (3) Includes 100% of the Waneta Expansion, of which Fortis has a 51% controlling ownership interest. FORTIS 13#14(Billions) Improved Five-Year Capital Program $16.0 $15.0 $1.5B Increase in Five-Year Capital Plan +$0.2 +$0.1 $14.5 +$0.5 $14.0 +$0.7 $13.0 $13.0 $12.0 $11.0 $10.0 2017-2021 Capital Plan FORTIS BC UNS FORTIS ALBERTA People. Power. Possibilities Central Hudson A FORTIS COMPANY 2018-2022 Capital Plan FORTIS 14#15FortisBC 2018-2022 Base Capital Plan Unlocking incremental value in our gas LDC business for delivery to customers • Pipeline Integrity Management Program - - Program to improve pipeline safety and integrity Focused on transmission pressure systems Includes pipeline modifications and looping Total project investment of ~$300 million Opportunity for further investment beyond 2022 FORTIS . Eagle Mountain - Woodfibre Gas Pipeline Project - - Located in Squamish, British Columbia 47-kilometer line will service a small-scale, third-party gas owned, Woodfibre LNG facility for export to the Asian market The project represents a ~$350 million regulated rate base investment The Woodfibre LNG facility will export up to 2.1 MTPA of LNG 15#16UNS 2018-2022 Base Capital Plan Modernizing natural gas generating resources supports new base capital plan • Flexible Generation Resource • ― - Facilitating renewables on the grid Provide ramping and peaking requirements Replace aging, less efficient combustion turbines Reciprocating engines to be constructed in Tucson 200 MW total capacity (10 modular units @ 20 MW each) Flexible unit dispatch (4 - 20 MW) In-service 2019-2020 Low gas pressure requirements and efficient water use ~$200 million investment over forecast period Modern, Efficient Baseload Combined Cycle Generation ― Gila River Unit 2 - 550 MW FORTIS - Initial tolling agreement ― ~$200 million purchase - - Replacement of retiring coal-fired generation facilities TEP (75%) and UNS Electric (25%) jointly own Gila River Unit 3 16#17Opportunities Beyond the Base Capital Plan FortisBC: Tilbury, LNG, Gas Infrastructure UNS: Renewables, Gas Storage & Electric Transmission British Columbia Alberta Arizona Minnesota Kansas Oklahoma Iowa Michigan Illinois Missouri ITC: Mexico Transmission Projects Belize Regulated Electric Regulated Gas FERC-Regulated Electric Transmission Long-Term Contracted Hydro Generation FORTIS Newfoundland and Labrador Prince Edward Island. Ontario New York Cayman Islands MECL & NP: Grid Modernization FortisOntario: Wataynikaneyap Project & Municipal Utility Consolidation ITC: Lake Erie Connector Caribbean: Grid Modernization & Renewables Turks and Caicos Islands 17#181 Near-Term Projects Beyond the Base Capital Plan Wataynikaneyap Power Project highlighted in Ontario's Long-Term Energy Plan ילסUab• Wataynikaneyap Power ONTARIO TORONTO Kasabenika First WHOBA PHASE 2 Late Fir Kingfishy PHASE 1 Recent Milestones: . · Ontario Energy Board (OEB) approved a deferral account in March 2017 to recover development costs incurred between November 2010 and the commencement of construction Federal Government announced in August 2017 up to $60M in funding for the Pikangikum First Nation connection to grid FORTIS Remaining Milestones: . . • Completion of environmental assessments Cost-sharing agreement with federal and provincial governments Filing of the Leave to Construct with the OEB, which is expected in Q1 2018 Final approvals, receipt of permits, and construction start by late 2018 18#192 Near-Term Projects Beyond the Base Capital Plan Lake Erie Connector only contracted transmission project in Ontario's Long-Term Energy Plan Lake Michigan Lake Huron KENTUCKY OHIO ONTARIO IESO Lake Erie PJM Lake Ontario CANADA U.S. PENNSYLVANIA WEST VIRGINIA VIRGINIA NJ MD DE . • • • 1,000 MW HVDC transmission line would connect the IESO and PJM markets for the first time ~73 miles - majority buried in Lake Erie ~ US$1 billion capital investment opportunity • ~ 3 full years to construct from • commencement of construction Major permit process complete with U.S. Army Corps of Engineers approval in October 2017 Remaining milestones include project cost refinement and securing contracts with shippers FORTIS 19#20(Billions) Blueprint for Growth Beyond the Base Capital Plan Focused on capitalizing organic opportunities and business trends Existing Utilities Driving Visible Organic Growth +$1.5 Incremental Near-Term and Organic Growth Opportunities will Augment Capital Plan +~$1-$4 ~$15.5-$18.5 $13.0 $14.5 2017-2021 Base Capital Plan Organic Growth 2018-2022 Base Capital Plan Further Opportunities Potential Aggregate Capital Opportunities FORTIS 2018-2022 20#21U.S. Tax Reform Fortis Strategy Remains Unchanged Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial strength to develop growth opportunities Summary of Tax Reform Changes Corporate Tax Rate Tax Depreciation Interest Expense Deductibility Lowered to 21% effective 2018 -Re-measurement of deferred tax asset balances will result in a one-time adjustment in 2017 -Lower corporate rate generally constructive to economy Regulated utility exemption from bonus depreciation Regulated utility exemption from 30% EBITDA cap on interest deductibility Overall a minimal impact to earnings with a negative impact to cash flow at our US utilities. This assumes no mitigating factors like additional capital investments or improved economic FORTIS conditions. 21#22Our Strategy Simple, Effective, Proven - Strategy Leverage the operating model, footprint of our utilities, operating expertise, reputation and financial strength to develop growth opportunities Dividend Growth Target: 6% Average Annual Growth Through 2022 Strategic Initiatives Execute Utility ITC Transmission Deliver Cleaner Enhance Customer & CAPEX Plan Growth Energy Regulatory Relationships FORTIS Investment-Grade Credit Ratings Unlock LNG Value Pursue Energy Infrastructure in and Near Existing Service Territories 22 22#23FORTIS 414 Appendix FORTIS#24Appendix Table of Contents Utilities Overview: ITC Holdings Corp. UNS Energy Central Hudson FortisBC Fortis Alberta Eastern Canadian Regulated Electric Utilities Caribbean Regulated Electric Utilities Financial Strength: Fortis Delivers Strong Q3 2017 Results Q3 2017 Results by Segment YTD September 2017 Results by Segment Manageable Debt Maturities FORTIS 26 27 28 29 30 31 32 33 34 35 36 24 24#25Appendix Table of Contents Other: 2018-2022 Five-Year Capital Forecast by Segment Capital Expenditures Exceeding Expectations Utility Debt Credit Ratings Expected Upcoming Events FORTIS 37 38 39 40 25 25#26ITC Holdings Corp. ITCTransmission METC ITC MidWest SPP MISO ITC Great Plains Transmission Systems KETA Project Kansas V-Plan Montana North Dakota Minnesota Hugo to Valiant Elm Creek to Summit ITC MVP Projects ITC Utility Status New Mexico South Dakota Nebraska lowa Wisconsin Kansas Missouri Oklahoma Arkansas Texas Louisiana Indiana Illinois Mississippi Michigan Type of utility Regulator Regulatory model 2017 Formula 2017F Midyear Rate Base 5-Year CAGR on Midyear Rate Base (1) 2016 Assets % of total regulated assets (2) 2016 Pro Forma Earnings (3) 2016 Pro Forma Earnings % of total regulated pro forma net earnings Major Capital Projects Development Opportunities (4) Pending Regulatory Decisions ITC Holdings Corp. Transmission FERC Independent Transmission Company 11.32-12.16% ROE on 60% equity $7.1B 4.8% 39% $352M 33% Multi-Value Regional Transmission Projects ("MVPs") and 34.5 to 69 kilovolt Conversion Project Lake Erie Connector and Mexico Transmission Projects Second MISO Base ROE Complaint (1) (2) 5-Year CAGR on midyear rate base includes 2017 to 2022 forecast. Includes goodwill. (3) Assumes full year of earnings converted at a USD/CAD exchange rate of 1.33, represents the Corporation's 80.1% controlling interest in ITC, excludes one-time merger-related expenses and includes consolidated purchase price accounting adjustments. Earnings from October 14, 2016, the date of acquisition were $59 million. (4) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS 26#27UNS Energy Kingman Black Mountain San Juan Navajo Four Corners Flagstaff Cottonwood Prescott Lake Havasu City Arizona Tucson UNS UNS Electric Electric Gas Type of utility Electricity Electricity Gas distribution Regulator Arizona Corporation Commission Show Low Regulatory model Springerville 2017 Formula Cost of service/Historical Test Year 9.75% ROE on 50% equity 9.5% ROE on 52.83% equity 9.75% ROE on 50.8% equity N A Gila River Tucson Sundt Luna Nogales Valencia SERVICE AREAS / CUSTOMERS Tucson Electric Power Service Area UNS Gas Service Area UNS Electric Service Area UNS Gas & Electric Service Area Transmission Line Coal-Fired Power Plant Natural Gas-Fired Power Plant Community-Scale Solar Power Company Offices 2017F Midyear Rate Base 5-Year CAGR on Midyear Rate Base (1) 2016 Assets % of total regulated assets (2) 2016 Earnings 2016 Earnings % of total regulated pro forma net earnings Major Capital Projects Development Opportunities (3) Community-Scale Wind Power (1) (2) 5-Year CAGR on midyear rate base includes 2017 to 2022 forecast. Includes goodwill. (3) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS $4.7B 4.7% 19% $199M 20% Flexible Generation Resource and Modern, Efficient Baseload Combined Cycle Generation Renewables, Transmission Investments, Grid Modernization & Infrastructure Resiliency 27 22#28Central Hudson LEGEND: SERVICE TYPES Gas & Electric Electric Only Gas Only KINGSTON DIVISION Rensselaerville CATSKILL DIVISION Westero Coeymans ALBANY GREENE New Baltimore Coxsackie O Durham Greenville Cairo Athens Jewett Catskill Lexington Hunter POUGHKEEPSIE DIVISION Carmel FISHKILL DIVISION Type of utility Regulator Regulatory model 2017 Formula 2017F Midyear Rate Base 5-Year CAGR on Midyear Rate Base (1) 2016 Assets % of total regulated assets (2) 2016 Earnings 2016 Earnings % of total regulated pro forma net earnings Major Capital Projects Central Hudson Gas and Electric Gas and electricity NY State Public Service Commission Cost of service on future test year 9% ROE on 48% equity $1.5B 8.6% 7% $70M 7% Gas Main Replacement Program GREENE Saugerties ULSTER Ancram Woodstock Gallatin Red Hook Milan COLUMBIA DUTCHESS Pine Plains Hurley Denning Olive Ulster O Rhinebeck North East ULSTER SULLIVAN Stanford Marbletown Clinton Esopus Rosendale Neversink Rochester Hyde New Paltz Park Pleasant Valley Washington • Wawarsing Lloyd Put Gardiner Shawangunk ULSTER ORANGE O Poughkeepsie LaGrange Union Vale Plattekill Locations of villages included in the Central Hudson service territory: Albany County (Ravena); Greene County (Coxsackie, Athens, Catskill, Hunter and Tannersville); Ulster County (Saugerties, Ellenville and New Paltz); Orange County (Montgomery, Maybrook, Cornwall and Highland Falls); Putnam County (Cold Spring and Nelsonville); Dutchess County (Fishkill, Wappingers Falls, Millbrook, Rhinebeck, Red Hook, Tivoli and Millerton). O Locations of cities included in the Central Hudson service territory. Wappinger East Fishkill DUTCHESS о Newburgh Newburgh OOBeacon PUTNAM New Windsor Argobin • Cornwall Woodbury Highlands NEWBURGH DIVISION (1) (2) 5-Year CAGR on midyear rate base includes 2017 to 2022 forecast. Includes goodwill. (3) Development Opportunities (3) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS Transmission Investments 28#29FortisBC Natural gas service area Electric service area Combined natural gas & electric service area Propane service area FortisBC pipeline - Spectra Energy pipeline -FortisBC electric transmission lines Fort Nelson Hudson's Type of utility Regulator Regulatory model 2017 Formula FortisBC Gas distribution Electricity BC Utilities Commission BC Utilities Commission Cost of service + PBR Cost of service + PBR Hope 8.75% ROE on 38.5% equity 9.15% ROE on 40.0% equity British Columbia Mackenzie. 2017F Midyear Rate Base $4.1B $1.3B Alberta Prince George 5-Year CAGR on Midyear Rate Base (1) 3.8% 2.6% 2016 Assets % of total regulated assets (2) 13% 5% Williams Lake. 2016 Earnings $151M $54M Revelstoke 2016 Earnings % of total regulated pro forma net earnings 14% 5% Kamloops. .Enderby Campbell River Whistler -Lumby Powell River Elkford Kaslo "Kelowna Major Capital Projects P Princeton Cranbrook Alberni Nanaimo Hope. Vancouver Lower Mainland System Upgrade, Pipeline Integrity Management Program and Eagle Mountain Woodfibre Gas Pipeline Project N/A Trail Osoyoos United States Development Opportunities (3) Tilbury further expansion and additional gas infrastructure opportunities N/A (1) 5-Year CAGR on midyear rate base includes 2017 to 2021 forecast. བྱབ (2) Includes goodwill. (3) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS 29#30Fortis Alberta Grande Prairie Fort McMurray Christina Lake Lac La Biche Athabasca Forsskatchewan Lloydminster Barrhead Westlock Whitecourt Morinville St. Albert Spruce Grove Hinton Edmonton Sherwood Park Drayton Valley • Leduc Camrose Wetaskiwin Wainwright Rocky Mountain House Ponoka Lacombe Provost Stettler Red Deer Sundre Olds Drumheller Cochrane Banff Airdrie Strathmore Canmore Calgary Okotoks Brooks High River Type of utility Regulator Regulatory model 2017 Formula 2017F Midyear Rate Base 5-Year CAGR on Midyear Rate Base (1) 2016 Assets % of total regulated assets (2) 2016 Earnings 2016 Earnings % of total regulated pro forma net earnings Major Capital Projects Medicine Hat Claresholm Crowsnest Fort Pass Taber Lethbridge MacLeod Pincher Creek Development Opportunities (3) Pending Regulatory Decisions (1) (2) (3) 5-Year CAGR on midyear rate base includes 2017 to 2021 forecast. Includes goodwill. Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS Fortis Alberta Electricity distribution Alberta Utilities Commission PBR 8.5% on 37% equity $3.2B 5.6% 9% $121M 11% Pole-Management Program Renewables, Distribution System Investments, Changing Customer Expectations PBR Next Generation Application 30#31Eastern Canadian Regulated Electric Utilities Type of utility FortisOntario (1) Electricity Maritime Electric Electricity Regulator Regulatory model 2017 Formula 2017F Midyear Rate Base Ontario Energy Board Island Regulatory and Appeals Commission Cost of service with incentives 8.93% 9.30% on 40% equity(2) $0.3B Newfoundland Power Electricity Newfoundland and Labrador Board of Commissioners of Public Utilities Cost of service on future test year 9.35% ROE on 40% equity Cost of service on future test year 8.50% ROE +/- 50 bp on 45% equity $0.3B $1.1B 5-Year CAGR on Midyear Rate Base (3) 3.8% 2.3% 2.2% 2016 Assets % of total regulated assets (4) 1% 1% 3% 2016 Earnings $12M $12M $40M 2016 Earnings % of total regulated 1% 1% 4% pro forma net earnings Development Opportunities (5) Wataynikaneyap Power Project N/A N/A 3ล (1) Includes three electric utilities: Canadian Niagara Power, Cornwall Electric and Algoma Power. (2) Allowed ROE shown is for Algoma Power. Cornwall Electric operates under a franchise agreement with a price-cap and commodity cost flow through and, therefore, is not regulated with reference to an allowed ROE. The allowed ROE for Canadian Niagara Power is 8.78% for 2017. (3) 5-Year CAGR on midyear rate base includes 2017 to 2022 forecast. (4) Includes goodwill. (5) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS 31#32Caribbean Regulated Electric Utilities™ Type of utility Regulator Regulatory model 2017 Formula 2017F Midyear Rate Base 5-Year CAGR on Midyear Rate Base (2) Caribbean Utilities Electricity Electricity Regulatory Authority Cost of service with historical test year 6.75-8.75% Return on Assets $0.6B 3.2% Fortis Turks & Caicos Electricity Government of the Turks and Caicos Islands Cost of service with historical test year 15-17.50% Return on Assets $0.4B 6.9% 2016 Assets % of total regulated assets (3) 2% 1% 2016 Earnings $20M 2016 Earnings % of total regulated pro forma net earnings 2% $18M 2% (1) Fortis has an approximate 60% controlling interest in Caribbean Utilities Company, Ltd. Excludes earnings from Fortis' 33% equity investment in Belize Electricity Limited. 5-Year CAGR on midyear rate base includes 2017 to 2022 forecast. (2) (3) Includes goodwill. FORTIS 32 32#33($ millions) 300 200 100 0 FORTIS Fortis Delivers Strong Q3 2017 Results 66% Increase $153 2016 Q3 Adjusted Earnings Adjusted EPS 900 $254 700 68% Increase $794 0.80 2.00 0.70 13% Increase 1.90 0.60 $0.61 500 $472 S $0.54 16% Increase $1.92 1.80 0.50 300 0.40 1.70 $1.66 0.30 100 2017 2016 1.60 0.20 2017 1.50 2016 2017 2016 2017 September Year to Date Q3 September Year to Date 33 33#34Q3 2017 Results by Segment Third Quarter Variance Analysis by Segment ($s in millions, excluding EPS) Q3 2017 Adjustment Q3 2017 (Adjusted) Q3 2016 Adjustment Regulated - Independent Q3 2016 (Adjusted) Q3 (Adjusted) Variance Electric Transmission ITC Holdings Corp. Regulated US Electric & Gas UNS Energy Central Hudson 89 89 112 112 102 7 109 15 15 14 14 = 127 127 116 או 7 123 Regulated Canadian & Caribbean Electric & Gas FortisBC Gas (15) (15) (19) (19) Fortis Alberta 35 35 30 30 FortisBC Electric 11 11 11 11 Eastern Canadian & Caribbean 20 20 27 51 51 49 22 89 1 314 45 27 49 (7) 2 Other Energy 21 21 15 15 6 Infrastructure Corporate and Other (10) (24) (34) (53) 19 (34) Net Earnings $278 ($24) $254 $127 $26 $153 $101 Weighted Average Shares 418.6 418.6 418.6 285.0 285.0 285.0 133.6 EPS $0.66 $(0.05) $0.61 $0.45 $0.09 $0.54 $0.07 FORTIS 34#35YTD September 2017 Results by Segment September Year-to-Date Variance Analysis by Segment ($s in millions, excluding EPS) September YTD 2017 Adjustment September YTD 2017 (Adjusted) September YTD 2016 Adjustment September YTD 2016 (Adjusted) Regulated - Independent Electric Transmission ITC Holdings Corp. Regulated - US Electric & Gas UNS Energy Central Hudson Regulated Canadian & 273 273 September YTD (Adjusted) Variance 273 242 (11) 231 170 18 188 43 48 48 50 50 (2) = = 290 (11) 279 220 18 238 41 Caribbean Electric & Gas FortisBC Gas 88 88 81 81 Fortis Alberta 91 91 91 91 FortisBC Electric 42 42 41 41 Eastern Canadian & Caribbean 294 223 73 73 82 82 294 295 295 (1) Other Energy 69 69 69 45 45 24 5 Infrastructure Corporate and Other (97) (24) (121) (164) 58 (106) (15) Net Earnings $829 ($35) $794 $396 $76 $472 $322 Weighted Average Shares 413.9 413.9 413.9 283.7 283.7 283.7 130.2 EPS $2.00 ($0.08) $1.92 $1.40 $0.26 $1.66 $0.26 FORTIS 35#36($millions) Manageable Debt Maturities Average annual long-term debt maturities 3,000 2,500 2,000 1,500 1,000 500 .17 .18 .19 .20 .21 .22 123 124 125 126 127 128 129 130 131 Subsidiary Corporate 132 133 134 135 136 137 138 139 140 . A². 42. 43 141 Average annual long-term debt maturities 46 >'46 ($millions) (1) 2017 2018 2019 2020 2021 2022 Total Canadian Regulated Electric 7 73 7 36 31 34 188 U.S. Regulated 60 1,038 357 455 379 41 2,330 Other Segments 6 25 16 30 32 36 145 Corporate 2 2 114 158 1,124 2 1,402 Total 75 1,138 494 679 1,566 113 4,065 (1) As at September 30, 2017. FORTIS 36#372018-2022 Five-Year Capital Forecast by Segment 2018 Capital Forecast ($millions) Fortis 2018F Rate Base(1) Regulated-Independent Transmission (ITC) ~$26.8 Billion ITC 863 Regulated-U.S. Electric & Gas UNS Energy 759 Central Hudson 275 Regulated- Regulated-Canadian & Caribbean Electric & Gas Canadian & Regulated- Independent Transmission FortisBC Gas 462 Caribbean (ITC) Fortis Alberta 407 (Electric & 28% FortisBC Electric 104 Gas) (1) Eastern Canadian 152 47% Caribbean Other Energy Infrastructure Total Capital Expenditures 135 46 Regulated U.S. (Electric & Gas) 25% $3,203 ($millions) 2018F 2019F 2020F 2021F 2022F Regulated Independent Transmission (ITC) 863 727 682 677 690 Regulated U.S. Electric & Gas 1,034 1,028 849 764 719 Regulated Canadian & Caribbean Electric & Gas 1,260 1,053 1,208 1,427 1,444 Other Energy Infrastructure 46 20 17 15 15 Total Capital Expenditures $3,203 $2,828 $2,756 $2,883 $2,868 (1) Includes 100% of the Waneta Hydroelectric Expansion of which Fortis has a 51% controlling ownership interest. FORTIS 37#38Capital Expenditures Exceeding Expectations 2013-2017 Business Plan Capex 2014-2018 Business Plan Capex 2015-2019 Business Plan Capex ($Millions) ($Millions) ($ Millions) 3,300 3,300 3,300 3,000 2,700 2,400 3,000 2,700 2,400 3,000 2,700 2,400 2,100 2,100 2,100 1,800 1,800 1,800 1,500 1,500 1,500 1,200 900 600 300 1,200 900 600 300 1,200 900 600 300 0 0 0 2013 2014(1) 2015(¹) 2016(2)(4) 2017(2)(4) 2014(¹) 2015 (1) 2016 (2) (4) 2017 (2) (4) 2018F(2)(4) 2015 2016(3) (4) 2017 F(3) (4) 2018F (3) (4) 2019F(3) (4) 5-YR Plan Actual (Adjusted) / Current Forecast Acquisition Capex (1)(2)(3) ☐☐ ITC Acquisition (1) (2) (3) Acquisition capex relates to UNS Energy acquired in August 2014. Acquisition capex relates to UNS Energy acquired in August 2014 and capex from Aitken Creek effective April 1, 2016. Acquisition capex relates to Aitken Creek acquired April 1, 2016. (4) ITC capex relates to capex contribution from ITC following acquisition in October 2016. FORTIS 38#39Utility Debt Credit Ratings Company S&P DBRS Moody's A n/a A1 ITCTransmission Michigan Electric Transmission A n/a A1 Company (METC) A n/a A1 ITC Midwest A n/a A1 ITC Great Plains A- n/a Baa2 ITC Holdings Corp. Tucson Electric Power A- n/a A3 Central Hudson A- n/a A2 FortisBC (Gas) n/a A A3 FortisBC (Electric) n/a A (low) Baal Fortis Alberta A- A (low) n/a Newfoundland Power n/a A A2 FORTIS 39 39#40Expected Upcoming Events Q4-2017 Expected Upcoming Earnings Release Dates February 15, 2018 Q1-2018 May 1, 2018 Q2-2018 July 31, 2018 Q3-2018 November 2, 2018 Upcoming Investor Presentations CIBC Whistler Conference January 26, 2018 FORTIS www.uelc.com 40