2024 Sustainability Report

Certain statements contained in this report contain forward-looking information within the meaning of applicable securities laws in Canada (“forward-looking information.”) The purpose of the forward-looking information is to provide management’s expectations regarding results of operations, performance, business prospects and opportunities, and it may not be appropriate for other purposes. All forward-looking information is given pursuant to the safe harbour provisions of applicable Canadian securities legislation.

The forward-looking information in this report includes, but is not limited to, FortisBC’s expectation that efficiency and conservation initiatives have led to otherwise lower energy consumption and emissions, FortisBC’s expectation to increase the supply of Renewable Natural Gas¹ (RNG) and renewable and lower carbon gases² in its system, including the expected timeframe and effect of completion of commissioning of the City of Vancouver Biogas Facility and the anticipated effect of acquisitions of RNG from new projects; FortisBC's aspirations to reduce GHG emissions; FortisBC’s investments in conservation and efficiency programs and related energy savings and its plan to invest $4.8 billion³ in gas and electricity infrastructure from 2025 to 2029 including metering system modernization; innovations and investments in the supply of renewable and lower carbon gases, reliability and integrity projects, efficient gas technologies, hydrogen technologies, lower carbon vehicles and infrastructures, electrification of transportation and hydrogen blending into the natural gas system; use of liquefied natural gas; FortisBC’s relationship with Indigenous Peoples; FortisBC’s intention to maintain and strengthen the diversity of FortisBC’s workforce and FortisBC’s safety practices.

The forward-looking information reflects management’s current beliefs and is based on assumptions developed using information currently available to FortisBC’s management. Although FortisBC believes that the forward-looking statements are based on information and assumptions that are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties. For additional information on risk factors that have the potential to affect FortisBC, reference should be made to FortisBC’s continuous disclosure materials filed from time to time with Canadian securities regulatory authorities and to the heading “Business Risk Management” in FortisBC’s annual and quarterly management discussion and analysis. Except as required by law, FortisBC undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
All forward-looking information in this report and the information incorporated in this report by reference is qualified in its entirety by this cautionary statement.

¹Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create RNG. When RNG is added to North America’s natural gas system, it mixes with conventional natural gas. This means we’re unable to direct RNG to a specific customer. But the more RNG is added to the gas system, the less conventional natural gas is needed, thereby reducing the use of fossil fuels and overall greenhouse gas emissions.

²uses the term renewable and lower carbon gas to refer collectively to the lower carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC’s renewable and lower carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are lower carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ) and the current renewable and lower carbon gas portfolio lifecycle emissions for stationary combustion are -22 gCO2e/MJ. This is below B.C.’s lifecycle carbon intensity threshold of 30.8 gCO2e/MJ as set out in the 2024 Greenhouse Gas Reduction Regulation amendments.

³represent the combined five-year capital total in each year’s FEI and FBC five-year business plan.