06:45 AM EDT, 09/26/2024 (MT Newswires) -- Electric and gas utility holding company Fortis ( FTS ) on Thursday unveiled a five-year $26-billion capital plan, an increase of $1 billion from its previous plan.

The increase is driven by projects associated with the Midcontinent Independent System Operator long-range transmission plan and reliability investments at ITC, as well as distribution investments due to customer growth at FortisAlberta.

About $6.7 billion of the plan supports energy transition investments focusing on interconnecting renewables to the grid, as well as investments in renewable, storage and natural gas and cleaner fuel solutions.

Half of the capital plan aims to enhance and strengthen infrastructure through system adaptation and modernization investments.

The remaining portion of the budget supports customer growth, cybersecurity and other investments, the company said.

The capital plan is expected to boost midyear rate base from $38.8 billion in 2024 to $53 billion by 2029, translating into a five-year compound annual growth rate of 6.5%.

The capital plan is expected to be funded primarily by cash from operations and regulated debt.

In addition, Fortis' ( FTS ) board has declared a fourth-quarter common share dividend of $0.615 payable on Dec. 1 to shareholders of record at the close of business on Nov. 18. The dividend represents an increase of about 4.2%.

The company's annual dividend growth guidance of 4-6% has been extended one year through 2029.