Fortis Q2 2025: Key Contradictions in Data Center Plans, Iowa Opportunities, and Legislative Impacts
Generated by AI AgentAinvest Earnings Call Digest
Friday, Aug 1, 2025 12:34 pm ET1min read
FTS--
Aime Summary
Aime SummaryArizona data center capacity and timeline, Iowa MISO opportunities, Springerville repowering and conversion to natural gas, Arizona data center opportunities, and impact of OBBBA legislation are the key contradictions discussed in Fortis's latest 2025Q2 earnings call.
Capital Expenditures and Infrastructure Investments:
- Fortis Inc.FTS-- invested almost $3 billion in capital expenditures during the first half of 2025, contributing to a total investment of $2.9 billion.
- This investment is part of the company's core objective to deliver safe and reliable energy to its customers, including projects like the Roadrunner Reserve Battery Storage Project.
Earnings Growth and Regulatory Developments:
- FortisFTS-- reported a $0.09 increase in second quarter earnings per share to $0.76, compared to the same period last year.
- This growth was driven by rate-based investments across utilities and higher earnings at Central Hudson and FortisBC, as well as regulatory developments such as Tucson Electric Power's general rate application.
Arizona Data Center Opportunities:
- Tucson Electric Power (TEP) reached an agreement with a data center customer to serve a demand of approximately 300 megawatts, starting to ramp up in 2027.
- The agreement, subject to HCC approval, supports the integration of renewable energy onto the grid and benefits existing customers.
Regulatory Approvals and Rate Plans:
- Tucson Electric Power filed a general rate application, seeking new retail rates effective September 1, 2026.
- The application includes a rate base of $4.3 billion and proposes a formula rate adjustment, aiming for rate stability, reduced regulatory burden, and timely recovery of investments.
Transition to Cleaner Energy in Arizona:
- TEP plans to convert approximately 800 megawatts of coal-fired generation at Springerville to natural gas by 2030, allowing for a coal-free target by 2032.
- This transition supports customer affordability, local communities, and reliability, while aligning with broader clean energy objectives.
Capital Expenditures and Infrastructure Investments:
- Fortis Inc.FTS-- invested almost $3 billion in capital expenditures during the first half of 2025, contributing to a total investment of $2.9 billion.
- This investment is part of the company's core objective to deliver safe and reliable energy to its customers, including projects like the Roadrunner Reserve Battery Storage Project.
Earnings Growth and Regulatory Developments:
- FortisFTS-- reported a $0.09 increase in second quarter earnings per share to $0.76, compared to the same period last year.
- This growth was driven by rate-based investments across utilities and higher earnings at Central Hudson and FortisBC, as well as regulatory developments such as Tucson Electric Power's general rate application.
Arizona Data Center Opportunities:
- Tucson Electric Power (TEP) reached an agreement with a data center customer to serve a demand of approximately 300 megawatts, starting to ramp up in 2027.
- The agreement, subject to HCC approval, supports the integration of renewable energy onto the grid and benefits existing customers.
Regulatory Approvals and Rate Plans:
- Tucson Electric Power filed a general rate application, seeking new retail rates effective September 1, 2026.
- The application includes a rate base of $4.3 billion and proposes a formula rate adjustment, aiming for rate stability, reduced regulatory burden, and timely recovery of investments.
Transition to Cleaner Energy in Arizona:
- TEP plans to convert approximately 800 megawatts of coal-fired generation at Springerville to natural gas by 2030, allowing for a coal-free target by 2032.
- This transition supports customer affordability, local communities, and reliability, while aligning with broader clean energy objectives.
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