Fortis Inc. (FTS): Business Model Canvas

Key Partnerships

Fortis Inc. has established key partnerships with various stakeholders in the energy industry to support its business operations and growth strategies. These partnerships include:

• Utility regulators: Fortis works closely with utility regulators to ensure compliance with regulations and tariff structures. These partnerships are crucial for securing approvals for rate increases and infrastructure investments.
• Renewable energy providers: Fortis collaborates with renewable energy providers to integrate clean energy sources into its energy portfolio. These partnerships enable Fortis to meet sustainability goals and reduce carbon emissions.
• Construction companies: Fortis partners with construction companies to build and maintain its energy infrastructure. These partnerships help Fortis execute large-scale projects efficiently and cost-effectively.
• Technology suppliers: Fortis relies on technology suppliers to provide innovative solutions for grid optimization, energy storage, and customer engagement. These partnerships enable Fortis to enhance its operational efficiency and customer satisfaction.
• Financial institutions: Fortis works with financial institutions to secure funding for capital investments and acquisitions. These partnerships ensure that Fortis has access to the necessary resources to support its growth strategies.

Key Activities

Fortis Inc. engages in a variety of key activities to support its operations and provide value to its customers. These activities include:

• Electricity generation: Fortis Inc. generates electricity through a mix of traditional and renewable sources to meet the energy needs of its customers.
• Distribution and transmission of energy: The company operates a network of distribution and transmission lines to deliver electricity to homes and businesses.
• Infrastructure development: Fortis Inc. invests in infrastructure projects to expand and upgrade its energy systems, ensuring reliable service to customers.
• Customer service management: The company provides customer support services, manages billing, and resolves any issues or concerns that customers may have.
• Regulatory compliance: Fortis Inc. complies with regulations and standards set by government authorities to ensure the safe and reliable operation of its energy systems.

Key Resources

Fortis Inc. relies on a range of key resources to support its operations and deliver value to its customers. These resources include:

• Infrastructure: The company's network of power plants, distribution and transmission lines, and substations are essential resources for generating and delivering electricity.
• Skilled workforce: Fortis Inc. employees skilled engineers, technicians, and customer service professionals to operate and maintain its energy systems.
• Financial capital: The company requires financial resources to invest in infrastructure projects, technology upgrades, and expansion initiatives.
• Regulatory expertise: With a regulatory team, Fortis Inc. navigates complex regulations and ensures compliance with legal requirements.

Value Proposition

Fortis Inc. provides value to its customers through:

• Reliable energy supply: The company ensures a reliable supply of electricity to homes, businesses, and communities.
• Customer service excellence: Fortis Inc. offers responsive customer support, billing assistance, and problem resolution to ensure customer satisfaction.
• Environmental sustainability: The company invests in renewable energy projects and implements environmentally friendly practices to minimize its impact on the environment.
• Community engagement: Fortis Inc. engages with local communities to understand their energy needs and develop solutions that benefit both customers and the company.

Key Resources

Fortis Inc. relies on a variety of key resources to effectively operate its business and provide reliable energy solutions to its customers. These resources include:

• Power generation facilities: Fortis Inc. owns and operates a diverse portfolio of power generation facilities, including hydroelectric, wind, solar, and natural gas plants. These facilities allow the company to generate electricity and meet the energy needs of its customers.
• Transmission networks: The company also maintains a network of transmission lines and substations that deliver electricity from generation facilities to homes and businesses. This infrastructure is essential for ensuring the reliable and efficient distribution of power.
• Skilled workforce: Fortis Inc. employs a skilled workforce of engineers, technicians, and other professionals who are essential for the operation and maintenance of its power generation and transmission systems. This workforce is crucial for ensuring the safety and reliability of the company's energy infrastructure.
• Technological systems: The company relies on advanced technological systems to monitor and control its power generation and transmission facilities. These systems help optimize performance, improve efficiency, and identify potential issues before they escalate into problems.
• Customer databases: Fortis Inc. maintains extensive databases of customer information, including billing records, service histories, and contact details. This information allows the company to better understand its customers' energy needs and provide personalized solutions and services.

Value Propositions

Fortis Inc. prides itself on providing a wide range of value propositions that cater to the needs of its customers and stakeholders. These value propositions are the foundation of the company’s success and reputation in the energy industry.

1. Reliable energy supply: One of the key value propositions that Fortis offers is a reliable energy supply. Customers can trust that their power needs will be met consistently and without interruption, ensuring that their daily operations run smoothly.

2. Diverse energy mix including renewable sources: Fortis is committed to sustainability and offers a diverse energy mix that includes renewable sources such as wind, solar, and hydroelectric power. This not only aligns with environmental goals but also provides customers with access to cleaner energy options.

3. Competitive pricing: Fortis understands the importance of competitive pricing in the energy market. By continuously monitoring market trends and optimizing operational efficiencies, Fortis is able to offer cost-effective energy solutions to its customers.

4. High safety and quality standards: Safety and quality are top priorities for Fortis. The company adheres to strict safety protocols and quality standards to ensure that its operations meet or exceed regulatory requirements, giving customers peace of mind.

5. Environmental commitment: Fortis is dedicated to reducing its environmental footprint and promoting sustainability. The company invests in renewable energy projects, implements energy efficiency initiatives, and actively participates in community environmental programs to support a greener future.

Customer Relationships

Fortis Inc. prioritizes building strong relationships with its customers through various channels and programs.

Customer service centers: Fortis Inc. operates customer service centers to provide assistance and address any queries or concerns customers may have. Trained representatives are available to help customers with billing inquiries, service requests, and more.

Online account management: Customers have the convenience of managing their accounts online through the company's website or mobile app. This allows for easy access to billing information, usage data, and account updates.

Community engagement programs: Fortis Inc. is committed to giving back to the communities it serves. The company actively participates in various community engagement programs, such as sponsoring local events, supporting charitable organizations, and promoting environmental initiatives.

Proactive communication during outages: In the event of power outages, Fortis Inc. keeps customers informed through regular updates via text, email, or social media. This proactive communication helps manage customer expectations and ensures transparency during challenging times.

Loyalty and reward programs: Customers are rewarded for their loyalty through various incentive programs offered by Fortis Inc. These programs may include discounts on services, exclusive offers, or special perks for long-standing customers.

Channels

Fortis Inc. leverages a variety of channels to reach and engage with its customers:

• Physical Offices: Fortis Inc. has physical offices located in key regions to provide face-to-face interactions for customers who prefer in-person transactions or consultations.
• Company website: The company's website serves as a central hub for customers to access information about products and services, make inquiries, and even complete transactions online.
• Mobile app: Fortis Inc. offers a mobile app for customers who prefer to access their accounts and manage their services on-the-go. The app provides a convenient and user-friendly interface for customers to interact with the company.
• Social media platforms: The company maintains a presence on various social media platforms, such as Facebook, Twitter, and LinkedIn, to engage with customers, provide updates, and address inquiries in real-time.
• Customer service hotline: Fortis Inc. operates a customer service hotline that customers can call for immediate assistance with their accounts, inquiries, or concerns. This direct line of communication helps to ensure that customers receive timely and personalized support.

Customer Segments

Fortis Inc. caters to a variety of customer segments, each with unique needs and demands within the energy industry:

• Residential consumers: Fortis Inc. provides electricity and natural gas services to residential consumers across its operational regions. These customers rely on Fortis for their energy needs, making up a significant portion of the company's customer base.
• Commercial businesses: Businesses of all sizes rely on Fortis for reliable energy services to power their operations. From small businesses to large corporations, Fortis offers a range of energy solutions to meet the diverse needs of commercial customers.
• Industrial entities: Industrial customers, such as manufacturing plants and factories, require large amounts of energy to operate. Fortis works with industrial entities to provide customized energy solutions that meet their unique requirements.
• Government contracts: Fortis Inc. also serves government entities at the local, provincial, and federal levels. These contracts involve providing energy services to government buildings, facilities, and infrastructure.
• International energy markets: In addition to serving customers in Canada and the United States, Fortis has expanded its operations to international markets. The company offers energy solutions to customers around the world, leveraging its expertise and capabilities in the energy sector.

Cost Structure

Fortis Inc. has a diverse cost structure that includes various expenses related to maintaining and expanding its infrastructure, operational costs for energy production, technology upgrades and investments, regulatory compliance expenses, as well as marketing and customer service costs.

Infrastructure maintenance and construction costs: Fortis Inc. invests heavily in maintaining and upgrading its infrastructure to ensure reliable energy supply to its customers. This includes expenses for regular maintenance, repairs, and construction of new infrastructure such as power plants, transmission lines, and distribution systems.

Operational costs for energy production: The company incurs operational costs for generating energy from various sources such as natural gas, hydro, wind, and solar. These expenses include fuel costs, labor costs, and maintenance of equipment and facilities.

Technology upgrades and investments: Fortis Inc. continuously invests in new technologies to improve the efficiency and reliability of its energy production and delivery systems. This includes expenses for implementing smart grid technologies, energy storage solutions, and monitoring systems.

Regulatory compliance expenses: As a regulated utility company, Fortis Inc. must comply with various regulations and standards set by government agencies and regulatory bodies. This includes expenses for regulatory filings, audits, and compliance monitoring.

Marketing and customer service costs: Fortis Inc. allocates a portion of its budget towards marketing initiatives to promote its services and engage with customers. The company also incurs costs for maintaining customer service operations to handle inquiries, complaints, and billing issues.

• Infrastructure maintenance and construction costs
• Operational costs for energy production
• Technology upgrades and investments
• Regulatory compliance expenses
• Marketing and customer service costs

Revenue Streams

Fortis Inc. generates revenue through various streams that contribute to its overall financial stability and growth. These revenue streams include:

• Energy sales to consumers: The primary source of revenue for Fortis Inc. is the sale of energy to consumers. This includes both residential and commercial customers who rely on Fortis for their electricity and natural gas needs. By providing reliable and affordable energy services, Fortis is able to generate a steady stream of revenue.
• Service contracts and maintenance fees: In addition to energy sales, Fortis Inc. also earns revenue from service contracts and maintenance fees. These agreements provide customers with peace of mind knowing that their energy systems will be properly maintained and serviced on a regular basis. This recurring revenue stream helps to stabilize Fortis's income over time.
• Government grants and incentives: Fortis Inc. takes advantage of various government grants and incentives to support its operations and investments in renewable energy projects. These funds help to offset costs and improve the overall profitability of the company.
• Capacity payments from the grid: Fortis Inc. also earns revenue from capacity payments from the grid. These payments are made to Fortis for ensuring that there is enough energy capacity available to meet the demands of the grid. This provides an additional source of income for the company.
• Renewable energy credits trading: Finally, Fortis Inc. engages in renewable energy credits trading as a way to generate additional revenue. By investing in renewable energy projects and selling the resulting credits, Fortis is able to diversify its revenue streams and contribute to the growth of the sustainable energy sector.

Overall, Fortis Inc. has built a comprehensive business model that leverages multiple revenue streams to drive financial success and support its long-term growth objectives.