Q: We’re seeing more and more municipalities in BC ban natural gas installations in new houses as a climate change tactic. Fortis talks about getting more supply from renewable gas but they won’t be selling to new homes. That don’t have gas appliances. Do you think this will eventually amount to a material concern for Fortis and other gas suppliers?
5i Research Answer:
Probably not in a timeframe short enough to impact the stock valuation. We know oil is being phased out for homes, but we think gas will have a much longer tenure. Alternatives are either not always practical (solar) or very expensive (hydro). We think there will gradual changes, but would not be 'concerned' about this in its impact on FTS.