Good morning.
This is a very unruly group, I must say. Well, good morning, everyone. I'd like to welcome everyone to our 32nd annual meeting of Fortis. How is everyone doing today? We're predicting you'll be doing a lot better by the time we're done. My name is Doug Haughey. I'm the chair of the board of directors of Fortis Inc. I'm going to serve as chair of this meeting today. On behalf of my fellow board colleagues, I'd like to welcome all of you to the Holiday Inn St. John's. We'd also like to welcome everyone listening via our webcast, particularly those on the West Coast, where it's only 6:00 A.M., which is very brutal. Welcome and thank you.
Before we launch into the formal meeting, I wanted to say that 2018 was another big year in the sporting world in Newfoundland and Labrador with the 200th anniversary Royal St. John's Regatta. This rowing regatta is the oldest North American continuing sporting event. In January of this year, 17-year-old Shailynn Snow of Clark's Beach was on the ice as a member of the Canadian under-18 Women's World Hockey Championship team. With even more hockey news, on April 6th, broadcaster Bob Cole signed off from Hockey Night in Canada for the final time after 50 years in the broadcast booth. As many of you know, Mr. Cole is a native of Newfoundland and Labrador and has called some of the biggest games in hockey history.
The board of directors and leadership team are deeply proud of our Fortis roots in Newfoundland and Labrador, but we're equally proud of our people and operations throughout Canada, the U.S., and the Caribbean. There are stories like I just mentioned in every community where Fortis does business. Next year, we're going to try to highlight a few of those. At this time, I'd like to welcome some former Fortis directors who are with us here this morning. I'll ask them to stand as I call their name. Dr. Linda Inkpen, Mr. Ron Munkley, and Mr. David Norris. Ladies and gentlemen, please join me in expressing our gratitude for the contribution of these friends of Fortis.
With me at the podium today are Barry Perry, your President and Chief Executive Officer, Jocelyn Perry, Executive Vice President and Chief Financial Officer, and Executive Vice President, Chief Legal Officer, and Corporate Secretary, Jim Reid. Although Jocelyn has been with Fortis for many years, this is her first AGM as Chief Financial Officer of your company. Although honestly, I don't think that should inhibit you giving her a rough time during the question and answer period. I think it's important to say we were very pleased with the strong financial and operational performance of Fortis over the past year. Your company generated a positive total return in 2018, outperforming the negative performance of the relative market indices in Canada. As well, our current share price is 15% higher today than at the time of the AGM last year.
Additionally, 2018 marks the 45th consecutive year of annual common share dividend increases, one of the longest records in Canadian history. During management's presentation, which will occur after we conclude the formal portion of the meeting, you will hear about the strategy and highlights from the past year, and as our normal practice, we will address all of your questions at that time. People who are listening via the webcast can submit questions to management at any time in the text box on the right-hand side of the screen under the slides. Ladies and gentlemen, the proceedings this morning will follow our usual format with four main items of business. We will begin with the election of directors, followed by appointment of your auditors for 2019, and the authorization of directors to fix their remuneration.
Our annual advisory vote on the company's approach to executive compensation will follow. The formal part of the meeting will be followed by management's presentation on the activities of Fortis during 2018 and the first quarter of 2019 and the outlook for the company. As in prior years, in order to expedite the meeting, several shareholders have agreed to move and second the formal motions, and I will call on them at the appropriate times. Computershare Trust Company of Canada acts as our transfer agent and registrar of the common shares. With your consent, I appoint Mark Thompson, relationship manager for Computershare, and Chantelle Mugford at Fortis to act as scrutineers for this meeting. I further appoint Jim Reid, Executive Vice President, Chief Legal Officer, and Corporate Secretary of Fortis, to act as secretary for the meeting.
On the basis of shareholder registrations today, the proxies submitted prior to the meeting, it is clear that we've exceeded our quorum requirement. I see that the scrutineers have completed their tabulation, and I'd ask Jim to read the scrutineers report.
Mr. Chair, we have received an affidavit from Computershare, our transfer agent, that the documents required to be delivered to shareholders were mailed on or before March 26th, 2019 to the shareholders of record as of March 15th, 2019. The scrutineers have confirmed that there is a quorum present. Notice of the meeting having been given within the time prescribed by the bylaw and a quorum being present, I can confirm that this meeting is validly constituted for the transaction of business.
Well, thank you, Jim. That's good to hear. The secretary has reported that notice was properly given and that a quorum is present. I therefore declare this meeting validly constituted for the transaction of business. The 2018 annual report was mailed to shareholders who indicated their preference to receive a printed copy, while others were able to benefit from the electronic version on our website. Additional copies of the annual report are available on the table at the back of this room. Both the paper and electronic versions of the 2018 annual report present the Fortis consolidated financial statements for the year ended December 31st, 2018, beginning on page 73. The unqualified opinion of your auditors, Deloitte LLP, is found on page 75 of that report. What I would ask you to do is hold any questions on the financial statements until after the presentation from Barry and Jocelyn.
Shareholders who did not vote their shares by proxy were given ballots when they registered for this meeting. Before we begin the business of the meeting, I thought it might be useful to explain our voting practice. As with most public companies, the vast majority of Fortis shares are voted by proxy, and these votes have been tabulated by Computershare up to the proxy cutoff of Tuesday, April 30th of this year. Commencing with the introduction of our majority voting policy for the election of directors at our 2010 annual meeting, we implemented ballot voting so as to ensure that all shares voted at the meeting, both in person and by proxy, are tabulated and voted. I'm pleased to report that all resolutions received strong support from shareholders voting by proxy.
Since the vast majority of shareholders have expressed their wishes by proxy, we can confirm that all matters to be considered by the shareholders at this meeting have been approved by the requisite number of shareholders represented in person and by proxy. We do wish to tabulate all votes cast by proxy and in person. I would ask that those persons receiving ballots to complete your voting and pass your ballots to the scrutineers or raise your hand so that your ballots may be collected and your vote tabulated. Ladies and gentlemen, this year, each of our nominated directors currently serve on the Fortis board. I can tell you that this team of directors are committed, active, and very engaged in working on your behalf in the oversight of the affairs of the corporation.
I’d also like to mention that four of our Fortis board members also serve on the boards of Fortis operating companies. With that, let’s move on to the election of directors for 2019. The resolution is discussed on page nine of the circular. I believe that Monica Gregory has a motion to place before us. Monica?
Paul J. Bonavia, Lawrence T. Borgard, Maura J. Clark, Margarita K. Dilley, Julie A. Dobson, Ida J. Goodreau, Douglas J. Haughey, Barry V. Perry, Joseph L. Welch, and Jo Mark Zurel be elected as directors of Fortis to hold office until the close of the next annual meeting or until their successors are elected or appointed.
Thank you very much. I’ll ask Andy Morgans to second that motion.
I second the motion.
Thank you. If you haven't already returned your ballot, please raise your hand so that the scrutineers may collect your ballot. I'm advised that the tabulation of shares represented by proxy confirms that each of the nominees received more votes in favor than votes withheld, and that no nominee received less than 99.07% favorable vote. On that basis, I can declare that your directors are elected. I will now ask each of our directors present to stand as I call their name and request that you hold your applause until I've been able to introduce all of them. Tracey Ball, Pierre Blouin, Paul Bonavia, Larry Borgard, Maura Clark, Margarita Dilley, Julie Dobson, Ida Goodreau, our CEO, Barry Perry, Joe Welch, and Jo Mark Zurel. Of course, myself, Doug Haughey. Ladies and gentlemen, your Fortis board of directors.
Our next item of business is to appoint the auditors for 2019 and to authorize directors to fix their remuneration. In this regard, I believe that John Budgell has the motion. The resolution is discussed on page nine of the circular.
I move that Deloitte LLP be appointed auditors of Fortis until the close of the next annual meeting or until their successors are appointed, and that the directors be and are hereby authorized to fix the remuneration of the auditors at such amount as they may, in their discretion, determine.
Thank you. I'll ask Christina Fagan to second the motion.
I second the motion.
Thank you. Is there any discussion? On the basis of the proxy information we've received, 99.79% of the proxy votes were cast in favor of the appointment of Deloitte LLP as auditors. I therefore declare that Deloitte LLP are appointed auditors of Fortis Inc. for 2019 and that the directors are authorized to fix their remuneration. Everyone, the next item of formal business is the advisory vote on the Fortis approach to executive compensation. As part of the company's ongoing commitment to strong corporate governance, the board adopted an annual non-binding advisory vote on the company's approach to executive compensation. The resolution is discussed on page 10 of the circular. I'll ask Lesley Parsons to propose the resolution in this regard.
I move on an advisory basis and not to diminish the role and responsibilities of the board of directors of Fortis, the shareholders of Fortis accept the approach to executive compensation as described in the compensation discussion and analysis section of the management information circular of Fortis dated March 15th, 2019.
Thank you. I'll ask Peter Upshall to second the motion.
I second the motion.
Thank you. Is there any discussion related to this item of business? Hearing none, the proxy results indicate that 96.81% of the shares voted by proxy accept the company's approach to executive compensation, and I therefore declare the motion carried. Ladies and gentlemen, that concludes the formal business of the meeting today. I'll have a few additional remarks after Barry and Jocelyn deliver management's presentation and answer any questions you may have. First, we must terminate the formal portion of the meeting, and I would ask Susan Escott for a motion to terminate.
I move that the meeting be terminated.
Thank you. I'll ask Craig Vey to second that motion.
I second that motion.
Thank you. All those in favor? I doubt there's anyone contrary, I'll declare that motion carried. Ladies and gentlemen, I declare the 32nd annual meeting of Fortis Inc. terminated, and will ask our President and CEO, Barry Perry, and our CFO, Jocelyn Perry, to present the report on the company's activities for 2018 and some recent developments in 2019. Before I do that, on behalf of the Fortis board, I really would like to express our sincere appreciation to Barry and the entire Fortis management team for the great results they were able to achieve in 2018. It was really quite remarkable. If you'd join me in giving them a round of applause. Before I do turn things over to Barry and Jocelyn, we have a short video that I think you'll find quite enjoyable.
I'm an emotional kind of guy. That gets me every time. The work that our employees are doing in the communities that we serve is incredible. To see them describe what Fortis means to them is remarkable. The other thing I would say is that I think I'd like to be a lineman. Man, those pictures of being up in those poles are pretty damn impressive. As well as I think on the gas side, in our business, we have the front line gas technicians working in the streets of Vancouver putting in gas pipe. These are incredible jobs that they're doing. Good morning, shareholders, ladies and gentlemen. The video you just watched includes pictures submitted by some of our 8,800 employees throughout North America.
We asked employees to submit pictures that represent what Fortis means to them, it's uplifting, and there's no better way to kick this meeting off and share the performance of your company in 2018 than to start with that video. I'm going to start by introducing our Fortis executive team. Please stand as I call your name. Previously introduced by Doug, we have Jocelyn Perry, Executive Vice President, Chief Financial Officer, no relation to me. Jim Reid, EVP, Chief Legal Officer, and Corporate Secretary. Nora Duke, EVP, Sustainability and Chief Human Resource Officer. Jim Laurito, our EVP, Business Development. Phonse Delaney, our EVP, Chief Information Officer. Gary Smith, our EVP, Eastern Canadian and Caribbean Operations. David Hutchens, EVP, Western Utility Operations. Dave is also President and CEO of our utility business in Arizona.
2018 marked the successful transition of key leadership positions, including the appointments of Jocelyn Perry, Jim Reid, and David Hutchens. The transitions were smooth and demonstrated the strength of our succession planning process. I'll now introduce the CEOs of our operating companies. I ask you to please stand as you're introduced. Starting with Peter Alteen at Newfoundland Power. Linda Apsey, ITC Holdings. Roger Dall'Antonia, FortisBC. Charlie Freni at Central Hudson. John Gaudet at Maritime Electric. Richard Hew, Caribbean Utilities. David Hutchens in UNS Energy in Arizona. Michael Mosher at FortisAlberta. Mike was previously president and CEO of Central Hudson. Last year he made the move north to Alberta. Eddinton Powell , FortisTCI. Mr. Lynn Young, BECOL in Belize. Not in attendance today is FortisOntario President and CEO Scott Hawkes. We also have joining us today Margaret Kenequanash. Margaret, where are you?
CEO of Wataynikaneyap Power, which is a licensed transmission company that is majority owned by 24 First Nations in northwestern Ontario. Fortis has a 39% ownership interest. Wataynikaneyap is undertaking the construction of 1,800 kilometers of transmission lines and will connect 17 communities to the Ontario power grid for the first time. Wataynikaneyap Power had a big year in 2018, which we'll share more about a little later in the presentation. We have a great group of leaders right across Fortis. I would like to personally thank each of them for their dedication and commitment. Next up, we're going to give an update on the performance of your company. To begin, please take note of our cautionary statements regarding forward-looking information. Unless otherwise indicated, all financial information referenced is in Canadian dollars. Our strategy is focused on growing our existing group of companies.
Our 2018 results are proof that our strategy is working successfully. Our utilities executed a capital plan of CAD 3.2 billion in 2018, our largest capital program to date. We invested capital throughout our North American utilities to ensure they continue to deliver affordable, cleaner energy to our customers in a safe and reliable manner. In 2018, we delivered our new five-year CAD 17.3 billion capital investment plan. Our investments will help strengthen natural gas infrastructure, modernize the electricity grid, and enable the delivery of cleaner energy. We remain committed to our strategy of focusing on growing our existing companies, with 2019 shaping up to be a good year for your company. I want to highlight three characteristics of Fortis which are particularly important in the context of successfully executing our capital investment plan. They also underpin why Fortis is a good investment decision for you, our shareholders.
Firstly, nearly 100% of our operating assets are regulated assets. This regulatory diversity is a key component to lowering our corporate business risk. Secondly, I ask you to look closely at this map of Fortis Utilities. You can see that 17 regions in which we have operations in Canada, the U.S., and the Caribbean. These regions are where we serve our 3.3 million customers and where our CAD 53 billion in assets are used in energy delivery each and every day. We believe our geographic diversity is good for our investors. As extreme weather events become more common, if one utility is impacted in a specific region, our network of utilities serve as a safety net that can quickly respond and offer support. Thirdly, and one of our most important characteristics, we are an energy delivery company. Energy delivery represents 93% of our total assets.
Our assets are primarily poles, wires, and gas lines. Our focus on delivering energy to customers naturally limits our impact on the environment in comparison to utility businesses that have heavy fossil fuel-based generation. These three characteristics combine to make Fortis one of the most low-risk, highly diversified utility companies in North America. With our low-risk profile, we are positioned to deliver long-term shareholder value. At the end of 2018, we announced a 5.9% quarterly dividend increase to CAD 0.45 from CAD 0.425 per common share. 2018 marked 45 consecutive years of annual common share dividend payment increases, one of the longest records for a Canadian public corporation. If you bought Fortis shares and held them 45 years ago for the full 45 years, you'd have more money in your pocket every year for the last 45 years.
I think there's only one other company in Canada that actually can say that. I'm extremely proud to be the CEO of a company that can deliver these results. I'll now pass things over to Jocelyn, who will review the financial performance of Fortis last year and for the first quarter of 2019. I'll return to present the outlook for 2019. I will say she's been 10 months on the job, and she's doing a fantastic job.
Thank you, Barry, and good day, everyone, and thank you for clarifying that we're not related. It's important. As Barry said, I've been on the job 10 months, and I have to say it's been an exciting 10 months. I'm pleased to be back to Fortis and particularly pleased to be here today to report yet another great year for Fortis. Our financial results for 2018 and for the first quarter of 2019 were very strong and reflect the continued investment in each of our regulated utilities. 2018 adjusted earnings were more than CAD 1 billion, an increase of 4% over the previous year, and this marked the second consecutive year our adjusted earnings surpassed CAD 1 billion. Adjusted earnings per share in 2018 was higher by 2%, reaching CAD 2.51. As expected, the impact of U.S. tax reform tempered this increase on an adjusted earnings per share basis.
Turning to the first quarter of 2019, we are off to a good start with operational and financial performance aligned with our expectations. We delivered CAD 316 million in adjusted earnings in Q1 2019, up 6% compared to the same quarter last year. This equated to adjusted earnings per share growth of approximately 6% over Q1 2018. Again, our financial results reflect the strong growth across each of our regulated businesses. For the first quarter of 2019, our utilities continued to execute on their capital plans with CAD 740 million invested during the quarter. As Barry said, we remain on track to deliver an annual capital plan of CAD 3.7 billion. In March, Tucson Electric Power announced the construction of the $370 million Oso Grande wind project. Once complete, this 247-megawatt wind farm will become Tucson Electric Power's largest renewable energy resource.
Also in March, FortisBC announced a substantial investment increase in its energy conservation and efficiency program to approximately CAD 370 million over the next four years. We continue to maintain our investment-grade credit ratings. Our ratings reflect our excellent business risk profile, which is driven by our stable, predictable cash flows from our regulated businesses. As Barry mentioned earlier, we are an energy delivery company. We are nearly 100% regulated. All of these characteristics contribute to our excellent business risk profile. As we expected, our credit metrics were tempered in 2018 by U.S. Tax Reform, but our cash flows and our credit metrics are expected to improve over the five-year plan. This improvement is reflective of our capital funding plan, including proceeds from the recent sale of our Waneta Expansion assets in British Columbia. This approximately CAD 1 billion transaction closed on April 16th, 2019.
We used the proceeds from the sale to repay short-term debt and to repurchase $400 million of outstanding notes due 2026. Barry wasn't kidding when he said we were busy. Holding company debt to total debt is expected to decrease, reflecting a higher proportion of regulated debt to fund growth at each of our businesses. Our capital plan, together with our funding strategy and the flexibility provided by our at-the-market common equity program, further supports our investment-grade credit ratings. I'd now like to take a few minutes to provide examples of the types of projects included in our five-year capital plan. FortisBC is the largest distributor of natural gas in British Columbia, with more than 1 million customers.
In 2018, the utility began construction of 20 km of new gas lines to ensure the reliable delivery of natural gas to more than 210,000 homes and businesses in the Metro Vancouver area. This line is actually located under one of the busiest streets leading to downtown Vancouver. That's a challenge. Several years before construction began, FortisBC started talking with residents and businesses in the area to understand and lessen the impacts of the project. This approximately CAD 500 million project is on time and scheduled for completion in 2020. Wataynikaneyap Power, our partnership with First Nations communities in northwestern Ontario, saw great progress in 2018. This project will enable 17 communities in remote northwestern Ontario to move away from an unreliable diesel plant system to a safer, cleaner, reliable electricity system that will support the growth of these communities. Two major milestones were achieved in 2018.
The first was the announcement of a CAD 1.6 billion funding framework with the governments of Ontario and Canada. The second was the connection of the first community, Pikangikum, to the Ontario power grid in December. A third major milestone came a month ago on April 2nd, when Wataynikaneyap Power received approval from the Ontario Energy Board to construct the transmission project. ITC is our biggest utility and the largest independent transmission company in the U.S. It has more than 25,000 circuit km of transmission wires across seven Midwestern states. ITC's investment in infrastructure is a key component of our capital investment plan. Their rate base is expected to grow at an average annual growth rate of approximately 7% through 2023. Tucson Electric Power is targeting to serve 30% of retail sales from renewable generation by 2030.
Good progress was made in 2018 to achieve this target, including the start of construction of fuel-efficient natural gas generators to compensate for energy fluctuations associated with expanded use of renewable energy. Tucson Electric Power recently announced the construction of the Oso Grande Wind Project. Once the Oso Grande Wind Farm is operational, Tucson Electric Power's renewable energy production is expected to exceed 28% of its retail sales by 2021, bringing it very close to its target of 30% and certainly well in advance of 2030. I'll now turn things back to Barry.
Every one of the examples provided by Ms. Perry has a strong connection to our sustainable operations and practices. In 2018, we released our first sustainability report that covered our 10 utility operations. It contains complete information on our operations, focusing on the environment, governance, our customers, our people, and community engagement. As included in the report, the carbon intensity of energy we delivered to our customers in 2017 decreased by more than 60%. This decrease was largely related to our acquisition of transmission-focused ITC in 2016. We decreased greenhouse gas emissions within the Fortis group by 6% in 2017 compared to 2016. Last year, we donated CAD 13 million in the communities that we serve. We continue to build an inclusive and diverse workplace, we are proud of our progress specifically around gender diversity.
Women now represent approximately a third of our executives throughout the Fortis group of companies, 42% of our board, and 60% of our employees at head office. Looking to our future, we are focused on successful execution of our five-year CAD 17.3 billion capital plan. The plan for the period 2019 to 2023 represents an increase of CAD 2.8 billion or 20% over last year's plan. Our plan is highly executable with low risk. In fact, 77% of the five-year plan consists of projects that individually total less than CAD 150 million each. The execution of this plan is expected to translate into average annual rate base growth of 7.1% for the next three years, and 6.3% over the five-year planning period. Once completed, our utility rate base will have grown from CAD 26.1 billion today to CAD 35.5 billion by 2023, a 36% increase.
I always have to remind, Newfoundland Power's rate base is about CAD 1 billion. That's equivalent to about 36 Newfoundland Powers across North America that our company owns at this point in time. It's been a pretty amazing story. I'm confident in our ability to execute it successfully. We have a track record to prove it. At a time when we achieved one of the most strategic moves in the industry to push into the United States, buying three great franchises, Central Hudson, UNS Energy in Arizona, and ITC Holdings based in Michigan. We also grew our earnings per share on average by over 8% annually over this five-year period. Yes, we bought those three companies over the last five years. Much of our success can be credited to how we run our business.
We are a stable, well-run company with a purposeful, measured approach to growth and operations. That's what you get when you invest in Fortis. At Fortis, energy delivery is not just what we do, it's who we are. Our subsidiaries are local champions, serving as responsive leaders in their communities. With authority and independence, they deliver what's most important every day. Our utilities use local knowledge to drive purposeful progress, innovation, and sustainability. That independence is critical. It's the backbone of Fortis and guides how we are governed. Each of our major utilities is governed by its own board of directors with a majority of independent directors. These directors are generally members of the communities that our utilities serve. I believe our commitment to independence is unparalleled in our industry. Today, I'm happy to say we have 15 independent members of our utility boards of directors joining us.
Please stand as I call your name. We have Steven Fetter and Mark Kastner, board members at Central Hudson in New York State. Board Chair Bob Elliott and Greg Pivirotto at UNS Energy in Arizona. Doug Rothwell and Kevin Prust, board members at ITC Holdings based in Michigan. Mona Hale and Ross Bricker, both with the FortisAlberta Board. Board Chair David Ritch and Jennifer Dilbert, who serve on the Caribbean Utilities Company board in Grand Cayman. Board Chair Jackie McIntyre and Bob Sear, Maritime Electric board members on Prince Edward Island. From Newfoundland Power, we have Board Chair Anne Whelan and board members Glenn Mifflin and Gina Pecore joining us today. As Doug mentioned previously, four of our Fortis Inc. board members also serve on the boards of our utilities.
We are honored to have you joining us today. Please join me in acknowledging the independent board members of our utilities. As a larger family of companies with expansive market reach, we are not only local champions, but champions of progress at every level. Our connected network can learn, anticipate, and find new ways to go above and beyond everywhere we work. In the past, our FortisAlberta CEO, Michael Mosher, has called it our secret sauce, and he's right. Together, we can do more than any one of us could do alone, realizing sustainable value, delivering progress in our industry, and our communities. Our way of doing things drives our ability to consistently deliver superior shareholder returns. I think I'm saving the best for last here. At least I feel that way. That's your company's long history of superior shareholder returns.
We continued our strong performance in 2018. These charts are actually as of March 31st. They would be better if we used April 30th, they're pretty damn good at this point. No matter the timeframe, this is important, no matter the timeframe, one year, five years, 10 years, or 20 years, Fortis has outperformed comparable indices. We have delivered average annual total shareholder returns of 12.9% for the past 20 years. For the non-accountants in the room, that's every year, on average, for the past 20 years, we've delivered about 13% return. I'm not sure there's another company in Canada that's done that. In 2018, we extended our dividend growth guidance of approximately 6% through 2023. This guidance is based on continued good performance of our utilities, reasonable regulatory outcomes, the successful execution of our five-year capital plan, and growth in our franchise territories.
I'm confident in the ability of your company to execute on this dividend guidance, given the growth that's occurring in our utilities. Over the past month, our stock has traded in the CAD 49, the CAD 50 range. It recently closed at CAD 50.27 in mid-April, and that's an all-time high for us. As president and CEO, it gives me great pleasure to report this good news to a group of shareholders. To every shareholder joining us today, I just want to say thank you. Your investment and your belief in Fortis has helped create one heck of a story. We're going to move on to some questions and answers portion of the meeting this morning. As Doug mentioned, we're accepting questions online from those joining us via webcast. Our Vice President Investor Relations, Stephanie Amaimo, will share the questions as we receive them through the webcast.
Stephanie, please stand so people see who you are. Let's start with a question from those in the room. Is someone asking a question? If you want to ask, can you come up and take the mic?
No, thank you.
Are there any questions from the room? I just want to make sure this lady didn't have a question. I'm sorry, I can't hear you, but I just want to be clear. Can you step up to the mic? Thank you. Thank you very much. Just wanted to make sure. Any questions from the audience? Stephanie, do we have a question from the webcast?
Good morning. We actually have a question from Derek Hutchins, who normally I think attends in person. I'm going to read it verbatim. There are three questions embedded, but I'll read it verbatim here. Good morning, Mr. Perry. You are looking good. May I say better as each year goes by. First of all, I would like to comment on our 8,800 employees, who because of their commitment and hard work, they make you, the senior management team, and the board of directors look good and shareholders happy. Thank you to all employees. In recent years, you have made some major acquisitions in the U.S. and excellent ones at that. Do you have any plans in the near future for further investment in the U.S.?
The second question, maybe with a new federal government in the fall and the Trans Mountain pipeline a go, do you see any further investment in Western Canada? Lastly, what about closer to home? Do you see any opportunity to invest in Labrador? Thank you.
Thank you, Stephanie, and thank you, Derek, for your questions. In terms of acquisitions, we've been saying for some time our focus currently is on organic growth, and we have a great business now that's growing at around 7% a year. When you grow organically by investing in your existing utilities, you're not paying a premium. That premium is usually when you pay it for acquisitions is not recoverable in rates, and it's a much more risky approach. We're very happy now that we have got a great portfolio of businesses that are growing well, and we're focused in that area and not on acquisitions. In terms of Western Canada, we have, I would say, two really strong franchises, our FortisAlberta business, electricity business that keeps the lights on in a lot of Alberta.
We have over 1 million poles in our system there serving about 550,000 customers. That business has grown so much over the last 15 years and continues to grow at around 5 plus percent. We're very, very happy with that business and we continue to invest in it. In British Columbia, we have a large natural gas business distribution franchise serving over 1 million customers. I think it's the best renewable natural gas franchise in all of North America, but I'm biased. It's growing well. We're doing lots of great things on renewable natural gas for transportation, investing in our infrastructure there, and that business has a great future in that province. There's so much gas in British Columbia, we're so happy there.
We do have a smaller electric franchise that's based in the southeast part of British Columbia, and with its offices in the Kelowna region. That's a very strong franchise as well. We're pretty excited about the Western Canadian business, and we work well with all governments. That's the beauty of the Fortis model. We have our teams on the ground. They interact with their regulators and their governments, and they work through their issues, and they find ways to grow their businesses and serve their customers well. It's a beautiful model and one that we are very much committed to. In terms of Newfoundland and Labrador, listen, I've been saying for a long time I want to do more business in Newfoundland and Labrador. Newfoundland Power, 20 years ago, was almost 100% of Fortis. It's now 3% of Fortis. That's a problem.
It's a problem, and we need to solve it. The province is obviously going through some difficult times here right now. We do have some overlapping costs, I think, on the energy delivery side in the province. You have two companies that are both delivering product to customers. I think we need to get at that, and Fortis would like to play a role in that in the future, and we'll see where it goes. We've told premier after premier that we want to do more in this province, and we have not yet been successful. If I retire without making progress, then I will be disappointed. I will be disappointed. That could happen. We are committed to the province, and we'd like to do more here, but it's been a tough slog. Any other questions? Stephanie, anything else from the webcast? Good.
Well, thank you very much. I think this has been the shortest question period. Maybe it's because of Derek not being physically present. I do very much appreciate all your support, and thank you for being shareholders of Fortis. Now with that, I think Doug is going to come up and finish.
Well, everybody, I hope you agree with my premise at the beginning that the performance and prospects for the company are outstanding. I agree with the premise to Derek's question, which was, you know what? It's the employees of Fortis and our operating companies who make the executive and our board look good. On behalf of our board of directors, could you please join me in thanking all of those employees from Fortis that get the job done every single day? A few other thank yous just before we wrap up. We'd like to thank everyone who's helped organize this meeting, particularly our key Fortis employees, those Star Wars guys at the back with all the audiovisual, it's amazing, and obviously the staff of the Holiday Inn.
Finally, and I think most importantly, we'd like to thank you, our stakeholders, for the continuing support of the company and your participation both today and hopefully in the future. On behalf of everyone, thank you, and we're going to break for lunch. Thank you, everyone.