Fortis Inc.

Welcome to the 40th First Quarter Conference Call and Webcast. During the call, all participants will be in a listen-only mode. There will be a question-and-answer session following the presentation. At that time, those with questions should press star followed by the number one on their telephone. If at any time during the event and you need to reach an operator, please press star zero. At this time, I would like to turn the conference over to Ms. Stephanie Amaymo. Please go ahead, Ms. Amaymo.

Thanks, Ruel, and good morning, everyone, and welcome to Fortis' first quarter 2022 results conference call. I'm joined by David Hutchins, President and CEO, Jocelyn Perry, Executive VP and CFO, other members of the senior management team, as well as CEOs from certain subsidiaries. Before we begin today's call, I want to remind you that the discussion will include forward-looking information, which is subject to the cautionary statement contained in the supporting slideshow. Actual results can differ materially from the forecast projections included in the forward-looking information presented today. All non-GAAP financial measures referenced in our prepared remarks are reconciled to the related U.S. GAAP financial measures in our first quarter 2022 MD&A. Also, unless otherwise specified, all financial information references in Canadian dollars. With that, I will turn the call over to David.

Thank you and good morning, everyone. Our first quarter not only demonstrated the financial strength and stability of our business, but also our commitment to delivering a cleaner energy future for our stakeholders. During the first quarter, we successfully executed on our capital plan by investing nearly $1 billion in our energy systems, supporting our adjusted EPS of 78 cents. There were also advancements made on the FortisBC Eagle Mountain Wood Fiber Gas Line project as well as the MISO Long Range Transmission Plan and Lake Erie Connector Project at ITC. Today we are pleased to announce a 2050 net zero target that builds on our 2035 75% greenhouse gas reduction target. This announcement follows our inaugural TCFD climate assessment report issued in March. Today the importance of reliable, affordable, and secure energy service to our customers is more obvious than any time in recent memory. And at Fortis, we are ensuring that these remain core principles as we take actions to both mitigate and respond to the impacts of climate change. While our reliability metrics continue to outperform industry averages, we must continue to make responsible investments in our energy systems to withstand the increasing frequency and severity of weather events. With the backdrop of inflation reaching 40-year highs, we are laser focused on managing rising energy and material costs to limit customer bill impacts. As shown on slide five, our utilities have historically managed annual increases in controllable operating costs per customer to 1% to 2%. As operators of critical energy infrastructure, cybersecurity is a key component of our risk management program. With recent geopolitical tensions in Eastern Europe increasing cyber threats, Our utilities continue to enhance security protection, including working with critical industry and government partners. As I mentioned, we made significant progress on our commitment as a TCFD supporter with the release of our first climate assessment report. The report looked at four climate-related scenarios at our five largest utilities, identifying risks and opportunities. The report highlights our strong governance and oversight around climate matters, and explains how risks are incorporated into existing risk management, long-term strategy, and financial planning processes. It is no surprise that policy and regulatory advancements, innovation, customer affordability, and reliability are imperative to facilitate the rapid transformation that is required to address climate change. Overall, Fortis is well positioned to mitigate these risks and realize opportunities under various scenarios. Today we are extending our commitment to a clean energy future with a 2050 net zero target. This next step in our ESG journey builds off our 2035 75% greenhouse gas emissions reduction target. Having reduced our direct greenhouse gas emissions 20% since 2019 and with plans to fully exit coal by 2032, we are committed to a net zero target by eliminating the last 25% of direct emissions by 2050. Through technology advancements, the appropriate use of low or no carbon fuels, and carbon offsets, we believe we can achieve our net zero target while preserving customer reliability and affordability. Turning now to slide eight, last year we announced our $20 billion five-year capital plan through 2026. For 2022, we remain on track to invest $4 billion in our systems, with nearly $1 billion invested through March. We do not expect 2022 capital expenditures to be significantly impacted by supply chain constraints as our teams have taken proactive steps to promptly identify and mitigate supply chain issues. Major capital projects, which represent 15% of the five-year plan, continue to progress. In April, Wood Fiber LNG issued a notice to proceed to its prime contractor for the proposed liquefied natural gas site in Squamish, British Columbia. This announcement brings FortisBC's Eagle Mountain Wood Fiber Gas Line project one step closer to construction, though the project remains contingent on Wood Fiber LNG making a final investment decision. Overall, our highly executable and low-risk capital plan is expected to increase rate base by over $10 billion over the next five years, supporting average annual rate base growth of approximately 6%. Beyond our base capital plan, we have a long CapEx runway focused on climate adaptation, innovation, and a cleaner energy future in support of our stakeholders' expectations. This blueprint is expected to support sustainable growth for the foreseeable future. With respect to near-term growth opportunities, momentum at ITC continues to build. During the first quarter, MISO advanced its long-range transmission plan, announcing the first tranche of projects across the MISO Midwest subregion comprised of 18 projects with total associated costs of approximately $10 billion U.S. These projects require MISO Board approval, which is currently anticipated in late July. Six of the projects run through ITC's service territory, including Michigan and Iowa, where right of first refusal provisions exist for incumbent transmission owners. Other projects within this portfolio may be subject to competitive bidding depending on the state they are located in. Based on this preliminary information, ITC estimates transmission investments of approximately $1 billion to $1.5 billion US through 2030 associated with these projects. ITC is working on finalizing the timing and costs associated with these projects. In the coming months, we look forward to determining which will be included in our five-year capital plan. Next, the $1.7 billion Lake Erie Connector project continues to advance. In March, the Province of Ontario issued an order in Council and ministerial directive to the ISO to negotiate with ITC on finalizing a transmission service agreement on or before August 15, 2022. The proposed 1,000 megawatt direct current underwater transmission line will provide the first direct interconnection between the wholesale electricity markets operated by the ISO in Ontario and the PJM interconnection in the United States. This project will be additive to our growth outlook. With a strong track record of increasing dividends for the past 48 consecutive years, Coupled with our low-risk growth strategy, we remain confident in our 6% average annual dividend growth guidance through 2025. Now I will turn the call over to Jocelyn for an update on our first quarter financial results.