Simple contract, cost-of-service style regulation Full pass-through of commodity price to customers via the fuel cost adjustment factor that is adjusted monthly Lack of full transparency and the risk of political intervention with the regulatory structure Stable, regulated cash flow Moderately strategic relationship with parent company Fortis Inc. The stable outlook on Fortis TCI Ltd. reflects S&P Global Ratings' assessment of subsidiary Fortis Turks and Caicos Islands' (FTCI) stable and consistent cash flow. The outlook also reflects our expectation that there will be no material changes to the licensing agreement and tariff structure. Although we do not expect a downgrade during the outlook horizon, any material adverse regulatory decision, unfavorable changes to the regulatory structure or operating license, weakening in
