FortisTCI Stakeholders' Report 2021

ENERGY FOR GOOD

Stakeholders’

REPORT

2021

TM

Stakeholders’ Report 2021 | www.fortistci.com

Stakeholders’ Report 2021 | www.fortistci.com

TABLE OF CONTENTS

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VISION , MISSION & VALUES

OUR CUSTOMERS

CAPITAL PROJECTS

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ECONOMIC OVERVIEW

OUR PEOPLE

RELIABILITY

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CORPORATE PROFILE

OUR COMMUNITY

SUSTAINABILITY

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CEO’S MESSAGE TO STAKEHOLDERS

ENVIRONMENT, HEALTH & SAFETY

EXECUTIVE TEAM & BOARD OF DIRECTORS

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Stakeholders’ Report 2021 | www.fortistci.com

MISSION:

VISION: TRANSFORMING ENERGY IN THE TURKS AND CAICOS ISLANDS.

FortisTCI is committed to providing safe, reliable, least-cost energy, using smart innovative technologies and by investing in people, while being a good corporate citizen, being environmentally responsible, maintaining the highest level of customer satisfaction, and ensuring a reasonable rate of return for our investors.

VALUES:

Commitment We are passionate and intensely focused on serving our customers and helping them achieve their objectives. We will do what we say we are going to do and by doing so create value for all our stakeholders.

Innovation We are committed to engaging in innovative thinking and problem solving and will embrace all ideas that increase the efficacy of FortisTCI as we carry out our mandate.

Integrity We will earn the trust of our stakeholders by endeavoring to maintain the highest ethical standards in all our actions.

Reliability We will deliver what we promise; whenever the customer requires.

Respect We will consider mutual trust, recognition of accomplishments, self-esteem and regard for others as important elements of respectful working relationships.

Stakeholders’ Report 2021 | www.fortistci.com

VISION, MISSION & VALUES

Forward-looking Information Certain information set forth in this report, other than statements of historical fact, may contain “forward-looking” references, including “future oriented financial and non-financial information”, collectively referred to herein as forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon future events or conditions, or may include words such as “future”, “anticipates”, “plans”, “expects”, “estimates”, “intends”, “targets”, “projects”, “forecasts”, “schedules”, or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would”, and “could” or other similar terminology or expressions, which have been used to identify the forward-looking information.

Forward-looking information in this publication include, without limitation, the economic overview section, statements on Gross Domestic Product (GDP) growth, estimated completion of hotels, resorts and villa projects, US visitor expectations, economic impact of the Coronavirus pandemic, the Resilient National Energy Transition Strategy (R-NETS) as a roadmap for the country’s energy future, and the Memorandum of Understanding signed by FortisTCI, the Turks and Caicos Islands Government and the Clinton Foundation to implement the initiatives outlined in the R-NETS. Forward-looking statements are based on underlying assumptions and management’s beliefs, estimates and opinions, and are subject to inherent risks and uncertainties surrounding future expectations generally that may cause actual results to vary from plans, targets and estimates.

Readers are cautioned that these statements are not guarantees of future performance, and undue reliance should not be placed on them. The Company disclaims any intention or obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by applicable laws.

Manager of Environment, Health and Safety Marcus Francis surveys a section of the Providenciales plant.

Safety is a top priority at FortisTCI, and ongoing training programs, work observations, site inspections, audits and a wide range of other programs help to ensure a strong safety culture.

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Stakeholders’ Report 2021 | www.fortistci.com

ECONOMIC OVERVIEW

The Turks and Caicos Islands (TCI) economy remains on a gradual path to recovery following the adverse impact of the COVID-19 pandemic. Economic activity was significantly reduced for the majority of 2020 and continued into the first quarter of 2021. As the country began to rebound, the economy was projected to grow by 5%, with further growth expected in 2022, according to the Premier’s House of Assembly address delivered in June 2021.

As of December 31, 2021, 80% of the population received both doses of the COVID-19 vaccine. This uptake was achieved less than one year after the COVID-19 vaccine arrived in the country and is considered one of the fastest-growing vaccination rates in the Caribbean. The COVID-19 booster program was launched in October for priority groups, and later expanded to include interested and eligible persons.

From September 1, 2021, the Turks and Caicos Islands Government (TCIG) required all visitors 16 years and older entering the TCI to be fully vaccinated. Proof of a negative COVID-19 test was among pre-entry requirements for all travelers aged 10 years and older. Returning residents who were fully vaccinated in the TCI were also required to submit their vaccination certificates as part of pre-entry requirements. Partially vaccinated or unvaccinated residents had to submit a negative COVID-19 test within three days of travel.

There was strong evidence of a rebound in tourism in the third quarter of 2021 with an acceleration in the fourth quarter.

The uptake in COVID-19 vaccines locally and across major source markets created an environment that was even more favorable for economic activity. Stimulus packages for residents in the United States and broad recovery in developed markets also propelled the demand for leisure travel.

The country’s tourism minister reported a record-breaking summer for tourist arrivals in 2021, which recorded significantly more visitors in June, July, and August compared to the same period in 2019. There were 54,188 visitors in June, which reflects an 18% increase compared to the period under review. An increase of 19% or 56,022 visitors was recorded in July, and a 15% increase or 41,734 visitors in August. The reopening of the country’s cruise ship port in early December 2021 after a 21-month pause also contributed to increasing tourist numbers.

Occupancy levels at resorts exceeded the 60% forecast for the fourth quarter of 2021. This indicates that the decision to allow only vaccinated travelers to the destination had no significant impact on growth trends.

The construction sector and the real estate market also experienced a surge in activity with increased occupancy in luxury villas. Private jet arrivals also contributed to the growth in the tourism sector.

The tourism sector is also experiencing an increase in its room inventory, which is expected to boost the number of stayover visitors. In addition, the Premier announced that Carnival Corporation is expected to invest $25 million in the Grand Turk Cruise Ship Center, and the TCI Government would issue $1 million in local grants to cruise port operators.

Stakeholders’ Report 2021 | www.fortistci.com

These developments are expected to further stimulate tourism activities, especially on the capital island of Grand Turk. The TCI Government has also indicated plans to revitalize the financial services sector to complement the tourism brand and diversify the economy, particularly fisheries and agribusiness.

The country’s Tourist Board will become a Destination Management Organization (DMO) and a Regulatory Authority to develop, monitor, and maintain standards for all tourism sectors. The DMO is expected to improve the industry through an integrated network of public and private sector partners, delivering a more cohesive and sustainable marketing and management approach.

The destination continues to be a popular choice for American travelers. A new study by ParkSleepFly.com ranked the Turks and Caicos Islands as sixth in the top 10 countries, increasing in popularity amongst American travelers.

Overall, tourism performance in 2021 recorded a significant uptick, with visitor numbers outpacing pre-pandemic levels, and several large-scale development projects for resorts and villas coming on stream to drive the pace of economic recovery.

A section of Leeward, a rapidly developing resort and residential area of Providenciales.

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CORPORATE PROFILE FortisTCI Ltd. is a regulated utility that serves over 16,000 customers across the Turks and Caicos Islands (TCI) with safe, reliable, least-cost electricity.

The Company operates under its business licenses and takeover agreements, while adhering to simple contract and cost-of-service style regulation.

FortisTCI serves the islands of Providenciales, North Caicos, Middle Caicos and South Caicos. Turks and Caicos Utility Limited (TCU), which FortisTCI acquired in 2012, serves the islands of Grand Turk and Salt Cay. The FortisTCI service territory also includes the Cays between Providenciales and North Caicos (except for Parrot Cay), East Caicos and adjacent cays.

Customer service centers operate in Grand Turk, South Caicos, North Caicos and Providenciales, where the Company’s headquarters is located on Leeward Highway. Together, the companies operate four independent diesel generation plants with the integration of some solar. FortisTCI became a wholly owned subsidiary of Fortis Inc. (based in Newfoundland, Canada) in August 2006.

Stakeholders’ Report 2021 | www.fortistci.com

FortisTCI’s corporate headquarters and plant, located on Leeward Highway, Providenciales.

2021 Highlights 16,170 - Total customer connections as of December 31, 2021 7 - The number of islands FortisTCI serves 44.76 MW - Consolidated peak demand 99.96 ASAI - Percentage of time electricity was available to customers 25 km - Of 35 kV transmission lines and 640km of 12.5 kV distribution lines 152 - Total number of full-time employees

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FortisTCI President and CEO Ruth Forbes.

Stakeholders’ Report 2021 | www.fortistci.com

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CEO’S MESSAGE TO STAKEHOLDERS The year 2021 was marked by several moments of triumph as the Company recorded outstanding successes in critical areas. As my first full year as President and CEO, it will always be memorable because of the hard work, dedication, and achievements of the team I am privileged to lead.

We attained certification in ISO/IEC 20000-1:2018 Information Technology Service Management Systems and 27001:2013 Information Security Management Systems. These certifications confirm our adherence to the highest levels of efficiency, protection, and security of our information technology systems and customer information. Our ISO 22301:2019 certification for Business Continuity Management Systems was also reaffirmed.

Our service reliability was strong, with electricity available to our customers 99.96% of the time. Safety remained paramount, and our safety performance was exceptional. There were no lost time accidents for the entire year, and at year-end, we achieved 1,051 days without a Lost Time Accident. We completed 1,730 safety training hours spanning 454 participants, including employees, contractors, and business partners during the year. It is easy to see that our outstanding safety record results from a relentless pursuit of continuous improvement.

We continued to focus on innovative and technology-driven solutions to serve our customers, whether in-person or remotely, as changes in the COVID-19 environment necessitated. Our expanded third-party payment options across the service territory brought added convenience to customers. Our ‘Balance by Text’ feature provided quick and ready access to customer account information using a simple SMS message. These efforts no doubt earned the appreciation of our customers and supported the very positive 83% customer satisfaction rating we received in our annual survey.

As we adjusted further to COVID-19, 2021 was a year of many firsts in our stakeholder engagement plan. We recrafted our events and outreach to maintain and enhance vital connections with community partners. Our annual FortisTCI National High School Science debate and a virtual STEM Summer Camp for high school students were two ways in which we continued to focus on youth education and STEM in place of the annual FortisTCI National Science and Technology Fair. We revamped our summer employment program and hosted 10 college students whose work experience included research on topical issues relating to the energy industry and sustainability. Their efforts culminated in another first, our Youth Energy Round Table, which discussed ‘The Future of Energy in the Turks and Caicos Islands.’

Our focus on people, including customers, stakeholders, and the employees who work hard every day to help FortisTCI deliver on its commitments, further strengthened the Company’s pandemic response, with the health and safety of our people, and the provision of vital, uninterrupted electricity service to the country always at the forefront. A vaccination rate of 81% and zero workplace COVID-19 contagion during the year underscore the effectiveness of the efforts and the ongoing communication and support to staff.

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FortisTCI President and CEO Ruth Forbes presents Senior EHS Coordinator Eustace Musgrove with the President’s Service Award for his dedicated work and embodiment of the FortisTCI’s values.

Under its Utility Owned Renewable Energy Program, the Company commissioned a 271.7 kW dc installation at Graceway Sports Centre, Providenciales in early 2021. The system produces approximately 404.9 MWh annually.

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Security Officer Keno Lewis receives the Green Ribbon Safety Award on behalf of his team from President and CEO Ruth Forbes. The Security Department won the Corporate division award, and the Transmission and Distribution team received the Operations division award, at the Green Ribbon Awards Ceremony held on December 10, 2021.

One of the year’s highlights for our team was the Company’s Long Service Awards, held on December 4, 2021. This event was a fitting and celebratory culmination of the year, deservedly honoring employees for their dedicated service and highlighting those with five to 36 years! Among the many honorees, it was my privilege to recognize Anthony Williams as the longest-serving male employee with 36 years and our two longest-serving female employees, Roxie Williams and Patricia Hamilton, who have dedicated 30 years each.

A special President’s Award celebrated Gary Lightbourne for faithful service as the sole employee on Salt Cay. The President’s Service Award recognized Eustace Musgrove for exemplary performance and upholding the Company’s values. Marcus Francis received the President’s Award as the Pandemic Leader.

Our sustainability efforts in 2021 are reflected in the 1.6MW of installed solar capacity that has been added to the grid, despite pandemic impacts, including supply chain challenges. Thirteen customers who have signed on to our Utility Owned Renewable Energy Program have helped us produce 4.8 GWh of green energy to date, resulting in the avoidance of 3.75k tons of CO2 emissions.

Our first TCI Energy Forum, which brought together key stakeholders including the government, the regulator and customers on October 21, marked the beginning of an ongoing conversation that we will spearhead on the changing energy business model, and the future of energy in the Turks and Caicos Islands. This event will be an annual feature on our corporate calendar. Completing a clean energy plan to guide our sustainability efforts also reflects our steadfast commitment to making an even more significant impact with clean energy options.

We continue to build a strong foundation for a more sustainable and resilient utility to serve the Turks and Caicos Islands with least-cost and reliable electricity for decades to come. I look ahead with renewed energy and optimism for where this journey will take us.

Ruth Forbes

FortisTCI President & CEO

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83% of FortisTCI customers are satisfied with their electricity service.

Security Supervisor Callis Jones welcomes a customer to FortisTCI’s Providenciales office.

FortisTCI continues to design its services around excellence, convenience, and safety. 2021 marked a year since the Company introduced a more modernized customer experience with digital solutions and more ways to engage. The Company expanded its third-party payment locations during the year, bringing the total payment sites across the islands to 10. The Company’s web portal continues to grow in popularity as an easy, valuable, and convenient tool for customers to make payments and manage their energy consumption. ‘Balance by Text’ was launched in November 2021 to allow customers access to their account information and last payment details by SMS text.

Because we value the voice of the customer, the Annual Customer Satisfaction Survey continues to provide useful insights into our strengths and opportunities. The 2021 results found that customers are satisfied with the level of service offered at a rating of 83%, which is an increase from the previous year’s 80% rating. The Company remains committed to exceeding customer expectations in its ongoing effort to transform energy in the Turks and Caicos Islands.

Stakeholders’ Report 2021 | www.fortistci.com

OUR CUSTOMERS

Customer Service Representative Lillian James assists a customer at FortisTCI’s Grand Turk Office.

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OUR PEOPLE FortisTCI Linemen Vincent Graham and Nathaniel Smith work on the transmission distribution lines in Grand Turk.

The Human Resources (HR) department began 2021 with a mindset of embracing the new normal, marked by a hybrid model of work-from-home and in-office interactions. The Company prepared for the return of in-person training, while still promoting and positioning itself as an advocate and enabler of online learning.

Training and Development NCCER (National Center for Construction Education and Research) Accreditation In February, FortisTCI completed its recertification as an accredited NCCER Training Center, and secured accreditation until 2024.

The NCCER program is a professional, accredited training program that offers industry-recognized certification to reinforce employees’ existing knowledge acquired via on-the-job training.

The program reflects FortisTCI’s commitment to training, improving workforce skills, and enhancing professionalism.

The NCCER program also underpins the Company’s learning and development plan to create a well-trained technical staff that will improve innovation and strengthen cost-efficiency.

The program also helps to increase employee loyalty and motivation, while reducing absenteeism and turnover.

Accredited Training Centers and their participants benefit from the NCCER Registry System, an international database of the individuals who have completed NCCER standardized construction, maintenance, safety, and/or pipeline training conducted by an NCCER accredited organization.

FortisTCI has two certified Master Trainers and three Performance Evaluators who can assess on-the-job performance. Seventeen FortisTCI employees have participated in NCCER training in the program’s core modules, Power Generation Maintenance (Mechanic) Levels 1 through 4, Power Generation Maintenance (Electrical) Levels 1-3, and NCCER Performance Evaluators.

Apprenticeship Programs The Company continued its Powerline Technician Apprentice training in Canada, and three apprentice employees successfully completed Levels 2, 3, and 4 of knowledge evaluations and practicals, with excellent feedback on their performance.

One of the Company’s substation technicians completed two weeks of levels one and two substation maintenance training, which occurred at a critical time, as FortisTCI carried out a significant upgrade to its Grace Bay Substation in 2021. The training took place with AVO, a leading institute in electrical training in Dallas, Texas.

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Online Learning Programs The Company created a single Learning Management System by integrating its online training platform, OpenSesame, with its performance appraisal software, Saba TalentSpace.

This integration makes available to employees thousands of e-learning tools to enhance their development plans and increase skills. The system also provides a centralized space for training, results, and data.

Student Internship Programs FortisTCI welcomed 10 college interns in the summer of 2021 through the Company’s Student Summer Employment Program (SSEP). One student worked at the Grand Turk office and nine at the Providenciales headquarters for eight weeks through August 2021. The SSEP provides opportunities for students to gain experience working in the energy sector at a professional level.

Students were also required to conduct research as a part of their work-study experience. Their research supported their participation in the inaugural FortisTCI Youth Energy Round Table on August 12, under the theme, “The Future of Energy in the Turks and Caicos Islands.” Among the attendees were H.E. the Governor Nigel Dakin, the Premier, Honorable Charles Washington Missick, and Deputy Premier, Hon. E.J. Saunders.

The event was also live-streamed on the Company’s Facebook page and YouTube channel.

Thrive – an EAP initiative The Environmental, Health, and Safety (EHS) and HR department hosted a “Mindfulness in the Workplace” initiative called “YOU” to encourage greater self-awareness, self-management, and mental wellbeing among employees.

The program ran over four months, and comprised three dedicated hours, on a Friday each month. The sessions allowed employees to discuss various safety-related topics, and incorporate mindfulness in their daily work activities, while promoting physical health and wellness and building positive social connections. Discussion topics included Self-Care, Work-Life Balance, Financial Mindfulness, and Emotional Intelligence. The sessions, hosted by EHS and HR team members and guest speakers, were interactive, insightful, and well attended.

Wellness FortisTCI’s focus on wellness intensified during the pandemic and continued into 2021. The HR and EHS departments worked hand in hand throughout the year to ensure a steady stream of timely and relevant information on COVID-19 and its variants, vaccines and their associated benefits. Throughout the year, the Company invited well-known local medical professions to discuss the latest COVID-related and vaccine information with employees, answer questions, and dispel myths.

The FortisTCI High School summer program took place in a virtual format from July 20 -22, 2021. The online summer camp included three days of virtual tours, presentations, and student interviews with managers and the CEO. Employee Engagement Committee (EEC) The Company chartered and launched an Employee Engagement Committee (EEC) in July to create a direct line of communication between management and employees.

The goal is to align engagement initiatives to the Company’s current and future strategic objectives. The committee will achieve these objectives through projects, focus groups, and sub-committees and feedback will assist in developing the Company’s Employee Engagement Strategy.

(Top) With 30 years of service, Supervisor of Billing and Collections Roxie Williams was honored as one of two longest-serving female employees at the Company’s Long Service Awards on December 4, 2021. Here, President and CEO Ruth Forbes presents her with a plaque and a token of appreciation.

(Bottom) Information Technologist Kebba Morgan helps ensure the Company’s IT systems deliver optimum performance to support the work of all departments.

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OUR COMMUNITY As the COVID-19 pandemic continued to impact events in 2021, FortisTCI reviewed and revised its community outreach programs to innovatively assist youth development, promote STEM education, and extend its longstanding support of sports, TCI heritage and culture and many other worthwhile initiatives and charitable organizations.

In place of the signature FortisTCI National Science and Technology Fair, the Company hosted virtual STEM workshops attended by over 100 teachers and students in March. A month later, the FortisTCI National High School Science Debate became another new add-on. Eight schools competed over three days, bringing thought-provoking and lively arguments to topical issues relating to technology, climate change, renewable energy and environmental sustainability.

Having signed a three-year agreement with the Turks and Caicos Islands Football Association (TCIFA) at the beginning of 2020 to advance youth football development, the

delayed first season of the FortisTCI Elite Youth Football League began in May 2021. One hundred and twenty boys competed in eight teams drawn from Providenciales, Grand Turk, North Caicos, and South Caicos, making the eight-week tournament a huge success.

In another first during 2021, FortisTCI staged the Turks and Caicos Energy Forum on October 21 at The Shore Club, Providenciales. The event focused on the transformation of the energy sector, and addressed the theme, ‘The Future of Energy in the Turks and Caicos Islands’. Guest speaker and President of the Caribbean Bank, Dr. Hyginus ‘Gene’ Leon, delivered his address on ‘Advancing Economic Development in the Caribbean: The Role of Sustainable Energy.’ The Forum brought together a wide cross-section of local stakeholders, including government, businesses and FortisTCI customers, and will be an annual event on the corporate calendar.

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Donations in 2021 totaled $93,749 and included support to the Turks and Caicos Film Festival’s Youth Art Exhibition, the National Cancer Society, the TCSPCA, the TCI Human Rights Commission’s annual Humanitarian Awards, The Salvation Army’s Christmas Kettle Drive and Ashley Learning Centre, among many other worthy causes.

FortisTCI employees continued their engagement in the community, working within COVID-19 restrictions to log approximately 944 volunteer hours to support a wide range of causes and organizations including youth basketball, sports and fitness, and the Turks and Caicos National Trust.

Top volunteers were recognized at the Long Service Awards held on December 4, 2021.

Main photo: FortisTCI Vice President of Finance, Corporate Service and CFO Aisha Laporte join the Provo Eagles in celebrating their achievement as winners of the first season of the FortisTCI Elite Youth Football League.

Top right: Sharing a moment at the inaugural Turks and Caicos Energy Forum on October 21, 2021: (l-r) Deputy Premier, Hon. E. Jay Saunders, Acting Governor, H.E. Anya Williams, Premier, Hon. Charles Washington Misick, Caribbean Development Bank President Dr. Hyginus ‘Gene’ Leon, FortisTCI President and CEO Ruth Forbes, Managing Director (LUCELEC), Trevor Louisy, Hon. Akierra Missick, Attorney General, Hon. Rhondalee Braithwaite-Knowles, and Leader of the Opposition, Hon. Edwin Astwood.

Bottom right: President and CEO Ruth Forbes (fourth, right) joined members of the Turks and Caicos International Film Festival Committee to present the Company’s donation, which supported the Young Turks Art Exhibition, one of the highlights of the 2021 festival.

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ENVIRONMENT, HEALTH & SAFETY At the start of 2021, the Environment, Health and Safety department established its three-year objective of Leadership Development, Learning Indicators and building a Learning Organization.

A two-part BSI Surveillance Audit conducted remotely from February 22 to March 2 (Providenciales) and from August 30 to 31 (Sister Islands operations) found that the Company’s Environment, Health and Safety Management System (EHSMS) continues to perform well, with significant employee adaptation, improved data capture, ongoing training, and sustainability initiatives entrenched in the methodology.

The EHS department also conducts internal audits to manage performance and monitor compliance. An internal audit took place on December 8, 2021 and revealed that the EHSMS is in conformance with all elements of ISO 14001:2015 and ISO 45001:2018, with no major nonconformities. The audit also revealed that the culture of safety and environmental stewardship continues to mature and provides material cost savings from the Company’s Good Catch program.

There were several EHS led training sessions during the year, including forklift, defensive driving, job planning, First Aid and CPR, and respirator instruction. The Back to Basics program that was designed to refresh team members on the fundamentals of their roles was launched in the Transmission and Distribution area. Over 60 local contractors were trained on hazard management and ethics, among other topics related to the FortisTCI EHSMS at the biannual contractor training held in July and September. Participants rated the training program at 95% for overall satisfaction and importance to their job function. In addition to contractors, several local businesses enrolled their employees in the contractor training for their continued learning and knowledge expansion.

Other community partnerships included hazard identification and hurricane preparedness training led by the EHS department on September 22 and 23 for officers and Marines in the TCI Regiment. Provo Water Company also took part in a safety orientation at FortisTCI. Overall, 1,730 EHS training hours were recorded for the year, with 454 participants and 48 safety committee meetings held across the service territory.

One hundred and thirty-six work observations were conducted in 2021 after the Work Observation program was revamped, representing a 5% increase above target. The program has engendered positive interactions between management and technical field teams.

Environmental stewardship continued strongly in several programs that include managing all surface runoff in an efficient and environmentally friendly way, and recycling. Brown water is reused to maintain plants around the company’s premises, and in 2021, 37,200 US gallons of oil were shipped off the island.

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OTHER NOTABLE ACHIEVEMENTS • 1051 DAYS WITHOUT A LOST TIME ACCIDENTS AT YEAR END 2021 • 0.61 ALL INJURY FREQUENCY RATE (AIFR) • 47 EHS AUDITS • 136 WORK OBSERVATIONS • 24 EHS SAFETY AND DEPARTMENTAL MEETINGS • 1,730 TRAINING HOURS • 454 TRAINING PARTICIPANTS

Main photo: A contractor participates in fire safety training at FortisTCI’s Providenciales plant.

The EHS department rolled out its Good Catch and Near Miss campaign in March, with employees reporting 51 good catches during the year, 104% above the Company’s goal.

The biannual Green Ribbon Award Ceremony recognized outstanding safety performances and good catch reporting on July 16 and December 10. Those honored included North and Middle Caicos Operations and the Transmission and Distribution department, receiving the Operations Safety Award. The Security department was the recipient of the Corporate Award on both occasions, and contractor awards went to El Construction and Rolle Construction.

A key focus during the year was the management of the COVID-19 pandemic. The EHSMS and the Business Continuity Management System (BCMS) guided practices to maintain the health and safety of employees, stakeholders, and the continuity of business operations. The Company has made great strides in this area.

Left photo: The Transmission and Distribution team receives the Green Ribbon Safety Award for the Operations Division, from President and CEO Ruth Forbes in the December 2021 Green Ribbon Awards Ceremony.

Right photo: President and CEO Ruth Forbes presents the Green Ribbon Safety Award for the Corporate Division to the Security team in the July 2021 Green Ribbon Awards Ceremony.

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CAPITAL PROJECTS

Main photo: Installation of a new 15kV switchgear, or Power Control Room, has converted the Grace Bay Substation into a state-of-the art, indoor facility to better serve the ever-expanding tourist resort area and the islands of North and Middle Caicos.

In 2021, several major capital projects were completed, including a new environmentally sustainable 1,500-foot fuel pipeline on Grand Turk commissioned in January.

It represents one of the Company’s most significant projects in the nation’s capital.

Other major undertakings included: Grid Code for Alternative Energy Sources With a focus on increasing the uptake of renewable energy on the grid, FortisTCI is working to develop technical and procedural guidelines that will direct the interconnection of alternative energy sources. The project began in 2021 and is expected to be completed in 2022.

Exhaust Stacks Replaced The exhaust stacks on one generating unit at the Providenciales plant required substantial logistical planning before their safe replacement early in the year. The exhaust stacks on two additional generators are expected to be installed during the first quarter of 2022.

Lower Bight PP01 Feeder Rebuild Project – Phase 1 The first phase of a feeder upgrade on the distribution circuit in the Lower Bight was completed during the second quarter of 2021. The project was carried out to meet National Electrical Safety Code (NESC) standards for Warm Islands and Extreme Wind Loading conditions, built overhead and underground.

In addition to system hardening, the project was necessary to increase capacity to TCI’s growing tourist hub, Grace Bay, and increase resiliency serving as a backup to the Grace Bay substation.

Grace Bay Substation Switchgear Upgrade - Phase 1 Phase 1 of the Grace Bay substation upgrade was completed on July 16, 2021, replacing the existing outdoor ‘aisle-type’ air-insulated circuit breakers with a new 15 kV class switchgear in the Power Control Room (PCR). Both substation transformers were also connected to the new switchgear, and the primary distribution circuits were transferred to the new PCR. Phase 2 is expected to commence in 2022.

Stakeholders’ Report 2021 | www.fortistci.com

Exhaust stacks on the G11 unit in Providenciales were upgraded in 2021.

A substantial upgrade of the feeder trunk lines in the Lower Bight area of Providenciales serves to enhance service reliability and resilience of the electricity system, and meet increased load growth.

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RELIABILITY FortisTCI Linemen carry out maintenance work on the transmission and distribution system in Providenciales.

The System Average Interruption Duration Index (SAIDI) and Average Service Availability Index (ASAI) are the primary indicators used for reliability performance.

FortisTCI continued to deliver on these metrics with a strong reliability performance for its customers throughout 2021.

Customers benefited from a high ASAI of 99.96% and a SAIDI of 3.2 hours, which means that on average, there were 3.2 hours of service interruptions to customers during the year.

Consolidated Plant Fuel Efficiency The Company continues to adopt strategies to optimize its fuel efficiency and, in 2021, set a new fuel-efficiency target. Assessing usage across all service territories, the Company achieved a consolidated fuel efficiency of 15.66 Kwh/US Gallon for the year.

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A mechanical technician undertakes maintenance on an engine at the Providenciales plant.

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The Ritz-Carlton Turks and Caicos Islands installed a 210.6 kW solar PV system on the rooftop of its casino and restaurant, becoming FortisTCI’s 10th Utility Owned Renewable Energy customer. The system generates approximately 310MWh annually, helping avoid about 244 tons of CO2 emissions.

SUSTAINABILITY Renewable energy remains an integral part of FortisTCI’s vision of ‘Transforming Energy in the Turks and Caicos Islands.’

In 2021 the Company developed its Clean Energy Plan, which addresses how FortisTCI will expand its generation capacity, while integrating lower carbon fuel and renewable energy, incrementally through utility scale solar, and its Customer Owned and Utility Owned Renewable Energy Programs (CORE and UORE). The plan aligns with the Resilient National Energy Transition Strategy (R-NETS), a national blueprint to guide the Turks and Caicos Islands’ renewable energy integration and carbon emissions reduction targets over the period 2019-2040.

The Company’s UORE program continues to facilitate the integration of more solar energy to the grid. In pursuing renewable energy integration, the ultimate goal is to create a diversified energy mix for the Turks and Caicos Islands that is least-cost, reliable, resilient, and environmentally sustainable.

In 2021, the Company signed three new Utility Owned Renewable Energy Program (UORE) contracts. The latest solar PV partners are the Salvation Army Corporation with a 15.68 kW system, Community Fellowship – Assemblies of God with a 185.22 kW system, and Long Bay Storage with a 308.7 kW installation. Once commissioned in 2022, these projects will add more than 500 kW of solar to the grid, in addition to the current 1.6 MW of utility grid-tied solar PV. The UORE partnership count will also increase to 16.

As of December 31, 2021, UORE installations accounted for 2.7 GWh, helping to avoid approximately 2,130 tons of CO2 emissions. The three new installations slated for commissioning in 2022 will contribute nearly 500 metric tons of avoided CO2 emissions in its first year of operation and a total of 9,928 metric tons over 20 years.

FortisTCI has also expanded its UORE program offering to include EV charging stations in the ‘UORE Plus’ Program.

Two EV charging stations were installed at H2O Lifestyle Resort in Long Bay, Providenciales, to electrify their Tesla fleet. Work is also underway with the Ritz-Carlton Turks and Caicos for four EV charging stations in 2022.

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26 Stakeholders’ Report 2021 | www.fortistci.com

Board of Directors

Richard Hew, Director

Ruth Forbes, Director

Caribbean Utilities Company, President and CEO

FortisTCI President and CEO

Jason Roberts, Director

Gary Smith, Chairman

Maritime Electric, President and CEO

Fortis Inc., Executive Vice President Operations and Innovation

Stakeholders’ Report 2021 | www.fortistci.com 27

Executive Team

(L to R) Aisha LaPorte - Vice President of Finance, Corporate Services, CFO and Company Secretary Allan Robinson - Vice President of Grand Turk and Sister Islands Operations Ruth Forbes - President and CEO Devon Cox - Senior Vice President of Operations Don Forsyth - Vice President of Engineering, Energy Production and Delivery Rachell Roullet - Vice President of Innovation, Technology and Strategic Planning

Manager of Innovation and Resource Planning TeAnn Thomas inspects a battery energy storage installation at FortisTCI’s Providenciales plant.

ENERGY FOR GOOD

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