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Investor Presentaiton

Other Electric Utilities Fortis Companies APPENDIX Type of Utility Regulator Regulatory Model 2019 Formula 2019F Rate Base 5-Year CAGR on Rate Base (3) 2018 Assets % of Total Consolidated Regulated Assets (4) 2018 Earnings 2018 Earnings % of Total FORTIS ONTARIO (¹) Ontario Energy Board Cost of service with incentives 8.78% -9.30% ROE on 40% equity (2) $0.3B 27.0% 1% $13M 1% MARITIME ELECTRIC A FORTIS COMPANY Electricity Island Regulatory and Appeals Commission Cost of service on future test year 9.35% ROE on 40% equity $0.4B 3.0% 1% $14M 1% NEWFOUNDLAND POWER A FORTIS COMPANY Newfoundland and Labrador Board of Commissioners of Public Utilities Cost of service on future test year 8.50% ROE +/- 40 bps on 45% equity $1.1B 3.3% 3% $41M 4% Regulated Earnings Major Capital Projects Wataynikaneyap Transmission Power Project Development Opportunities (5) Municipal Utility Consolidation N/A N/A Grid Modernization Grid Modernization (1) Includes Canadian Niagara Power, Cornwall Electric, Algoma Power and Fortis' 39% ownership of the Wataynikaneyap Transmission Power Project. (2) Allowed ROE is 9.3% for Algoma Power, 8.78% for Canadian Niagara Power distribution and 9.3% for Canadian Niagara Power transmission. 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. (3) Includes 2018A to 2023F, including Fortis' 39% ownership of the Wataynikaneyap Transmission Power Project. (4) Includes goodwill. (5) Development opportunities are not included in the base capital forecast and would represent incremental capital spending. FORTIS.INC 35
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