 ST. JOHNS, Newfoundland and Labrador, July 30, 2020 GLOBE NEWSWIRE -- Fortis Inc. Fortis or the Corporation TSXNYSE: FTS, a well-diversified leader in the North American regulated electric and gas utility industry, released its second quarter results1 today. Highlights Continued to deliver safe and reliable service throughout the pandemic Second quarter 2020 net earnings were 274 million, or 0.59 per common share Adjusted net earnings2 of 0.56 per common share, up from 0.54 in the same quarter last year Capital expenditures of 2.0 billion, representing 47 of the 2020 annual capital plan, were completed in the first half of the year The Corporations five-year capital plan of 18.8 billion and dividend growth guidance remain unchanged Announced a new 80 greenhouse gas GHG emission reduction target in ArizonaOur family of utilities delivered reliable service to our customers during the quarter while remaining focused on the safety of our employees and communities during the pandemic, said Barry Perry, President and Chief Executive Officer, Fortis. We maintained operational and financial performance for the first half of 2020 as well as progressed key sustainability initiatives to deliver cleaner energy.Net Earnings The Corporation reported second quarter net earnings attributable to common equity shareholders of 274 million, or 0.59 per common share, compared to 720 million, or 1.66 per common share, for the same period in 2019. On a year-to-date basis, net earnings attributable to common equity shareholders were 586 million, or 1.26 per common share, compared to 1,031 million, or 2.39 per common share, for the same period in 2019.Earnings for the quarter and year to date reflect significant one-time items: i a 484 million gain on the disposition of the Waneta Expansion hydroelectric generating facility Waneta Expansion in April 2019; and ii the reversal of a 13 million tax recovery, originally recognized in 2019, due to the finalization of anti-hybrid regulations in April 2020 associated with U.S. tax reform; partially offset by iii a 27 million favourable base ROE adjustment at ITC reflecting the reversal of liabilities established in prior years as a result of a May 2020 Order issued by the Federal Energy Regulatory Commission FERC.Notwithstanding the significant one-time items, the regulated utilities delivered improved financial results during the second quarter, increasing earnings per common share EPS due to: i rate base growth, led by ITC; ii increased retail sales at UNS Energy, driven by weather; iii favourable foreign exchange; and iv the timing of operating expenses at FortisBC Energy. This growth was tempered by: i lower earnings in the Caribbean due to the impact of the COVID-19 pandemic on tourism-related activities; ii higher COVID-related costs, including credit losses, driven by Central Hudson; and iii a higher weighted average number of common shares outstanding.On a year-to-date basis, EPS reflected the same factors discussed above for the quarter but was further tempered by lower earnings at Tucson Electric Power TEP, which reflect higher costs associated with approximately 1 billion of utility infrastructure investments spent over the past few years that have not yet been reflected in rates and a decline in the market value of certain investments that support retirement benefits caused by financial market volatility. While later than expected, new rates at TEP that recover these investments are anticipated to be approved prior to the end of 2020. ___ 1 Financial information is presented in Canadian dollars unless otherwise specified. 2 Non-US GAAP Measures - Fortis uses financial measures that do not have a standardized meaning under generally accepted accounting principles in the United States of America and may not be comparable to similar measures presented by other entities. Fortis presents these non-US GAAP measures because management and external stakeholders use them in evaluating the Corporations financial performance and prospects. Refer to the Non-US GAAP Reconciliation provided herein.Adjusted Net Earnings2 On an adjusted basis, second quarter net earnings attributable to common equity shareholders were 258 million, or 0.56 per common share, compared to 235 million, or 0.54 per common share, for the same period in 2019.Year-to-date adjusted net earnings attributable to common equity shareholders were 573 million, or 1.23 per common share, compared to 551 million, or 1.28 per common share, for the same period in 2019.COVID-19 Pandemic Fortis continues to monitor developments and take measures it believes are warranted to protect the health and safety of employees, customers and communities. In addition to the efforts across the Corporation to control costs throughout the pandemic, the Corporations utilities have regulatory mechanisms that help stabilize cash flow and earnings which support the continued delivery of reliable service. The regulatory mechanisms function to protect approximately 63 of the Corporations annual revenue from changes in sales. Of the remaining 37, principally at UNS Energy and the Other Electric segment, approximately 19 is residential and 18 is commercial and industrial. During the second quarter of 2020, sales not protected by regulatory mechanisms increased approximately 3, driven by higher residential sales as more people were working from home and warmer temperatures in Arizona.Fortis is well positioned with strong liquidity due, in part, to a 1.2 billion common equity offering and the sale of the Waneta Expansion in 2019. As at June 30, 2020, total consolidated credit facilities were 5.9 billion with 4.8 billion unutilized. The Corporations utilities have issued approximately 2 billion of long-term debt since March 2020. They are in a strong financial position and will continue to fund their capital plans and work with customers and their respective regulators to ensure reliable service during the pandemic.Overall, the capital plan is progressing well with 2.0 billion, or 47 of the 4.3 billion 2020 annual capital plan, spent during the first six months. Currently, the Corporation does not expect any material change in the 2020 capital plan; however, the impact of the COVID-19 pandemic on forecast capital expenditures will continue to be evaluated. Depending on the length and severity of the pandemic, any change in 2020 capital expenditures is expected to be shifted to subsequent years with no change to the five-year capital plan anticipated.Regulatory Proceedings In May 2020 FERC issued an order establishing the Midcontinent Independent System Operator MISO base rate of return on common equity ROE for November 2013 through February 2015 and from September 2016 onward at 10.02. Including existing incentive adders, this implies an all-in ROE of 10.77 for ITCs subsidiaries operating in the MISO region, up from 10.63 based on a November 2019 decision.In June 2020 the British Columbia Utilities Commission BCUC issued a decision on FortisBC Energys and FortisBC Electrics multi-year rate plan applications for 2020 to 2024. The decision sets the rate-setting framework for the next five years, including: i the level of operation and maintenance expense and capital to be included in customer rates, subject to an incentive formula; ii the level of investment in gas innovation initiatives to be included in customer rates; and iii a 5050 sharing between customers and the utilities of variances from the allowed ROE. During the third quarter of 2020, the FortisBC utilities will provide the BCUC with updated 2020 rate filings reflecting the terms of this decision. Current interim rates will remain in effect pending a final determination of 2020 rates by the BCUC.Sustainability Earlier this month, Fortis released its 2020 Sustainability Report which highlights the Corporations focus on the regulated delivery of energy and the setting of ambitious emission reduction goals at two of the Corporations largest utilities. In Arizona, TEP announced a new GHG reduction target to reduce its emissions by 80 by 2035, from 2005 levels. Renewable generation in Arizona is expected to comprise more than 70 of its generation mix by exiting coal-fired electricity generation and installing approximately 3,800 megawatts of wind and solar generation and battery storage. In British Columbia, FortisBCs 30BY30 goal aims to reduce GHG emissions associated with customer use by 30 by 2030.During the second quarter, ITC received approval from the Iowa Utilities Board for the Cardinal-Hickory Creek Transmission Line Project. The 345-kilovolt transmission line will help expand system capacity and respond to consumer demands for more cost-effective renewable energy. Fortis recently joined senior business leaders from Canadian public companies in a pledge to take action to end systemic anti-Black racism. The pledge is part of the BlackNorth Initiative and the newly formed Canadian Council of Business Leaders Against Anti-Black Systemic Racism. During the second quarter, Fortis was also recognized by Corporate Knights as a Best 50 Corporate Citizen in Canada.At Fortis, every action we take is influenced by our respect for the environment, our desire to deliver cleaner energy and our dedication to employees and the communities we serve, said Mr. Perry. Our safety and reliability performance during the pandemic and the steps we are taking to advance key sustainability initiatives are strong evidence that we are on the right path.Outlook While uncertainty exists due to the COVID-19 pandemic, the Corporations long-term outlook is unchanged. 