N-12025 Annual Financial Statements - Redacted
32 passages
(3) 2024 includes the Q1 2024 FAM disallowance related to the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021. The disallowance of $3 million and $1 million of associated interest expense, was...
AI summary The text discusses the disallowance of fuel adjustment mechanism (FAM) expenses in 2024 and 2025, related to audit findings and recommendations by the Nova Scotia Energy Board (NSEB) for fiscal years 2020-2021 and 2022-2023, respectively. These disallowances were returned to customers through the FAM.
For the Year ended December 31 millions of dollars 2025 2024 Commodity Foreign Commodity Foreign swaps and exchange swaps and exchange forwards forwards forwards forwards Unrealized gain (loss) in regulatory assets $ (34) $ 1 $ (25) $ 5 Un...
AI summary The text presents financial data related to unrealized and realized gains and losses in regulatory assets and liabilities, as well as changes in derivative instruments for the years ended December 31, 2025 and 2024. These figures include items such as unrealized gains in regulatory assets, realized losses in inventory, and total changes in derivative instruments.
The Company's concentrations of risk as at December 31, consisted of the following: As at 2025 2024 millions of % of total millions of % of total dollars exposure dollars exposure Receivables, net Residential $ 278 48% $ 206 45% Commercial...
AI summary The document outlines the Company's concentrations of risk as of December 31, 2025, highlighting the distribution of receivables and derivative instruments. Residential receivables account for the largest portion, followed by other receivables, with significant changes in cash collateral and credit rating exposure.
The ABO for the defined benefit pension plans was $1,240 million as at December 31, 2025 (2024 – $1,270 million). The aggregate financial position for those plans with an ABO in excess of the plan assets for the years ended December 31 is...
AI summary The ABO for defined benefit pension plans was reported as $1,240 million as of December 31, 2025, a decrease from $1,270 million in 2024. The financial position of these plans, particularly those with an ABO exceeding plan assets, is outlined.
Defined benefit pension plans millions of dollars 2025 2024 ABO $ 47 $ 49 Fair value of Plan Assets 5 5 Funded Status $ (42) $ (44) 2025 Annual Financial Statements Attachment 2 Page 32 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED)
AI summary The table presents financial data related to defined benefit pension plans for 2025 and 2024, including the accumulated benefit obligation (ABO), fair value of plan assets, and funded status. The data shows a slight increase in ABO and a consistent fair value of plan assets, resulting in a funded status deficit.
NSPI's net periodic benefit cost (recovery) as at December 31 included the following: millions of dollars 2025 2024 Defined benefit pension plan Non-pension benefit plans Defined benefit pension plan Non-pension benefit plans Service cost...
AI summary The document outlines NSPI's net periodic benefit cost (recovery) for 2025 and 2024, including service cost, interest cost, expected return on plan assets, and actuarial losses. The expected return on plan assets is calculated using a five-year smoothed asset value and recognized on a straight-line basis over five years.
Pension Plan Asset Allocations NSPI's registered defined benefit pension plan employs a long-term strategic approach with respect to asset allocation, real return and risk. The underlying objective is to earn an appropriate return given th...
AI summary NSPI's pension plan uses a long-term strategic approach to asset allocation, focusing on achieving appropriate returns while preserving capital within acceptable risk levels. External investment managers handle the assets under the plan's investment policy and governance framework, with regular performance reviews to ensure compliance.
The following table shows the expected cash flows for defined benefit pension and other post-retirement benefit plans: millions of dollars Defined benefit pension plans Non-pension benefit plans Expected employer contributions 2026 Expecte...
AI summary The text presents a table outlining the expected cash flows for defined benefit pension and other post-retirement benefit plans, including employer contributions and benefit payments from 2026 to 2035. The assumptions section indicates that the data is based on projections and estimates.
Defined Contribution Plan The Company also provides a defined contribution pension plan for certain employees. The Company's contribution for the year ended December 31, 2025, was $8 million (2024 – $7 million).
AI summary The Company offers a defined contribution pension plan for certain employees, with contributions increasing from $7 million in 2024 to $8 million in 2025. This reflects the company's ongoing financial commitment to employee retirement benefits.
18. OTHER CURRENT LIABILITIES As at December 31 December 31 millions of dollars 2025 2024 Accrued charges $ 61 $ 61 Accrued interest on long-term debt 40 41 Carbon tax payable 15 25 Sales tax payable - 11 Other 4 4 Total other current liab...
AI summary The table presents other current liabilities for the years 2025 and 2024, including accrued charges, interest on long-term debt, carbon tax payable, sales tax payable, and other liabilities. Total other current liabilities decreased from $142 million in 2024 to $120 million in 2025.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company is exposed to Nova Scotia's macroeconomic conditions, which affect electricity demand and financial results. Adverse economic changes and inflation could hinder customers' ability to afford rate increases, leading to credit risks, policy shifts, and challenges in recovering costs and regulatory assets.
A summary of the activity related to employee and director DSUs for the year ended December 31, 2025, is presented in the following table: Weighted Average Grant Date Fair Weighted Average Grant Date Fair Employee DSU Value Director DSU Va...
AI summary The document provides a summary of activity related to employee and director Deferred Share Units (DSUs) for the year ended December 31, 2025, including changes in the number of units, weighted average grant date fair value, compensation costs, tax benefits, intrinsic value, and cash payments made under the DSU plan.
A summary of the activity related to employee PSUs for the year ended December 31, 2025, is presented in the following table: Weighted Average Grant Aggregate Intrinsic Value Employee PSU Date Fair Value (millions of dollars) Outstanding a...
AI summary This document outlines the activity related to employee Performance Share Units (PSUs) for the year ended December 31, 2025, including the number of PSUs outstanding, granted, exercised, and forfeited, as well as compensation costs and tax benefits realized. The weighted average grant date fair value and aggregate intrinsic value are also provided.
25. INVESTMENTS SUBJECT TO SIGNIFICANT INFLUENCE Carrying Value as at December 31 December 31 Ownership (2) millions of dollars 2025 2024 2025 WTI (1) $ 9 $ - 50% (1) Equity earnings issued for the three months and year ended December 31,...
AI summary The section discusses investments subject to significant influence, specifically WTI with a 50% ownership stake as of December 31, 2025, and notes that equity earnings for the period were nil.
Transactions between the Company and its related parties reported in the Consolidated Statements of Income and Consolidated Balance Sheets are as follows: For the Year ended millions of dollars December 31 Nature of Service Presentation 20...
AI summary The document outlines transactions between the Company and its related parties, including sales and purchases of services and energy, and details the sale of development assets related to the Wasoqonatl transmission line project for $15 million.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company is exposed to Nova Scotia's macroeconomic conditions, which affect electricity demand and financial results. Adverse economic changes and inflation could hinder customers' ability to afford rate increases, leading to credit risks, policy shifts, and challenges in recovering costs and regulatory assets.
2025 Annual Financial Statements Attachment 3 Page 27 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Approximately 42 per cent of the full-time and term employees within the NSPI labour force are represented by a union and subject to a...
AI summary Approximately 42% of NSPI employees are unionized, with collective agreements expiring March 31, 2026. Failure to renew agreements could lead to high labor costs, service disruptions, and a Material Adverse Effect. No disruptions have occurred since 1975.
Annual benefits payable Name Number of years At year-end At age 65 Accrued obligation Compensatory Non Closing present value credited service ($) (1) ($) at the start of the change ($) (2) compensatory of defined benefit (#) year ($) chang...
AI summary The table presents information on Greg Blunden's annual benefits payable, including accrued pension obligations and related financial figures. It outlines the number of years of credited service, amounts at year-end, and the closing present value of defined benefit obligations.
The Company recognized income related to guaranteed debt under the following categories: For the Year ended December 31 millions of dollars 2025 2024 Loss from operations $ (145) $ (279) Net gains (1) $ 168 $ 442 (1) Includes $1,143 millio...
AI summary The Company recognized income related to guaranteed debt, with a loss from operations of $145 million in 2025 and $279 million in 2024, alongside net gains of $168 million and $442 million respectively. The net gains include interest and dividend income from non-guarantor subsidiaries.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary Nova Scotia Power Incorporated (NSPI) is exposed to macroeconomic conditions affecting demand for electricity and natural gas. Economic factors like consumer income and inflation may impact customers' ability to afford rate increases, potentially leading to financial risks, regulatory challenges, and adverse policy shifts.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's fuel supply is vulnerable to global market fluctuations, including currency shifts, geopolitical risks, and natural disasters, which could drive up fuel prices. This may reduce rate affordability, increase cost recovery risks, and negatively affect customer consumption, potentially leading to a Material Adverse Effect.
Changes in the benefit obligation and plan assets, and the funded status for plans were as follows: For the Year ended December 31 millions of dollars 2025 2024 DB pension Non-pension DB pension Non-pension plans benefit plans plans benefi...
AI summary The document outlines changes in the benefit obligation and plan assets for pension and non-pension benefit plans for the years ended December 31, 2025 and 2024. It details factors such as service cost, interest cost, benefits paid, and actuarial losses or gains that influenced these changes.
The aggregate financial position for pension plans where the PBO or APBO (for post-retirement benefit plans) exceeded the plan assets for the years ended December 31 were as follows: millions of dollars 2025 2024 DB pension plans Non-pensi...
AI summary The text presents the financial position of pension plans where the projected benefit obligation (PBO) or accumulated benefit obligation (ABO) exceeded plan assets for the years ended December 31, 2025 and 2024. It shows a significant deficit in both defined benefit (DB) pension plans and non-pension benefit plans.
The ABO for the DB pension plans was $2,114 million as at December 31, 2025 (2024 – $2,255 million). The aggregate financial position for those plans with an ABO in excess of the plan assets for the years ended December 31 were as follows:
AI summary The ABO for the DB pension plans was reported as $2,114 million as of December 31, 2025, a decrease from $2,255 million in 2024. The financial position of plans where ABO exceeds plan assets is outlined for the years ended December 31.
Asset Class Target Range at Market Canadian Pension Plans: Short-term securities 0% to 10% Fixed income 34% to 49% Equities: Canadian 5% to 15% Non-Canadian 37% to 61% Non-Canadian Pension Plans: Cash and cash equivalents 0% to 10% Fixed i...
AI summary The text outlines target ranges for different asset classes within Canadian and non-Canadian pension plans, including short-term securities, fixed income, and equities. Pension plan assets are managed by respective management pension committees and governed by policies approved by the sponsoring companies' Boards of Directors.
The following table shows expected cash flows for DB pension and other post-retirement benefit plans: millions of dollars DB pension plans Non-pension benefit plans Expected employer contributions 2026 $ 34 $ 17 Expected benefit payments 2...
AI summary The text presents a table with expected cash flows for DB pension and other post-retirement benefit plans, including employer contributions and benefit payments for various years. Assumptions underpinning these figures are also mentioned.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The company faces risks from macroeconomic factors affecting demand for electricity and natural gas, with adverse economic conditions and inflation potentially leading to affordability challenges, credit risks, policy shifts, and difficulties in recovering costs and regulatory assets.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's fuel supply is vulnerable to global market risks, including currency fluctuations, geopolitical issues, and natural disasters, which could lead to higher fuel prices. This may result in decreased affordability, cost recovery challenges, and negative impacts on customer consumption, potentially causing a Material Adverse Effect.
30. Non-Controlling Interest in Subsidiaries As at millions of dollars December 31 2025 December 31 2024 Preferred shares of GBPC $ 14 $ 14 Preferred shares of GBPC
AI summary This section discusses the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, showing a value of $14 million in both years.
A summary of the activity related to employee PSUs for the year ended December 31, 2025 is presented in the following table: Employee PSU Weighted Average Grant Date FV Aggregate intrinsic value Outstanding as at December 31, 2024 832,093...
AI summary This section provides a summary of employee Performance Share Unit (PSU) activity for the year ended December 31, 2025, including outstanding units, grants, exercises, forfeitures, and associated compensation costs, tax benefits, and cash payments.
INTRODUCTION The Oracle account number consists of a twenty-nine digit "Accounting Flexfield" . The flexfield is made up of eight segments as shown below. CO Account Line of Bus Location CC Inter-Company Future Use Future Use XXX XXXXXX XX...
AI summary The document describes the structure of the Oracle account number, known as the 'Accounting Flexfield,' which is composed of eight segments used to categorize financial transactions for Nova Scotia Power and related entities. Each segment serves a specific purpose, such as identifying the company, account type, location, and cost center.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 212650 AP UNION DUES RELOCATION ALLOW 212700 AP LONG TERM DISABILITY 212750 AP GOOD NEIGHBOUR ENERGY FUND 212800 AP CIS REFUND CLEARING 212850 AP CONSUMER DEPOSITS 212900 AP...
AI summary The text presents a list of account segments with their corresponding descriptions, including items such as union dues, disability, energy funds, consumer deposits, and various liabilities and accrued expenses. These accounts are related to financial and operational obligations of an organization.
N-2Refiled Statements - NSPI - Redacted
68 passages
Receivables and Allowance for Credit Losses Customer receivables are recorded at the invoiced amount and do not bear interest. Standard payment terms for electricity sales are 30 days for bi-monthly customers and 20 days for monthly custom...
AI summary Customer receivables are recorded at invoiced amounts with 30/20-day payment terms for bi-monthly/monthly customers, subject to late fees. The Company maintains allowances for credit losses, conducts risk assessments, and requests deposits for high-risk accounts, with regular provisions for expected uncollectible amounts.
9. RECEIVABLES, NET As at December 31 December 31 millions of dollars 2025 2024 Customer accounts receivable – billed $ 195 $ 142 Customer accounts receivable – unbilled 260 202 Total customer accounts receivable 455 344 Allowance for cred...
AI summary The document presents financial data on receivables and inventory for the periods ending December 31, 2025, and December 31, 2024. It includes figures for customer accounts receivable, allowance for credit losses, cash collateral positions, sales tax receivables, and inventory levels.
The Company's concentrations of risk as at December 31, consisted of the following: As at 2025 2024 millions of % of total millions of % of total dollars exposure dollars exposure Receivables, net Residential $ 278 48% $ 206 45% Commercial...
AI summary The Company's risk concentrations as of December 31, 2025, show significant exposure in receivables, particularly in residential and other categories, with a notable increase in cash collateral compared to 2024. Derivative instruments also represent a portion of the risk exposure, though the credit rating category shows a decrease in exposure.
For the years ended December 31 the aggregate financial position for all pension plans where the PBO or, for post-retirement benefit plans, the APBO, exceeds the plan assets is as follows: millions of dollars 2025 2024 Plans with PBO/APBO...
AI summary The document outlines the financial position of pension plans for the years ended December 31, 2025 and 2024. It shows that the projected benefit obligation (PBO) or accumulated post-retirement benefit obligation (APBO) exceeds plan assets, resulting in a negative funded status for both defined benefit pension plans and non-pension benefit plans.
The ABO for the defined benefit pension plans was $1,240 million as at December 31, 2025 (2024 – $1,270 million). The aggregate financial position for those plans with an ABO in excess of the plan assets for the years ended December 31 is...
AI summary The ABO for the defined benefit pension plans was reported as $1,240 million as of December 31, 2025, a decrease from $1,270 million in 2024. The financial position of these plans, where the ABO exceeds plan assets, is outlined for the years ended December 31.
NSPI's target asset allocation for 2025 and 2024 was as follows: Asset Class 2025 Target Range at Market 2024 Target Range at Market Short-term securities 0% to 10% 0% to 10% Fixed Income 34% to 49% 34% to 49% Equities Canadian 5% to 15% 5...
AI summary NSPI's target asset allocation for 2024 and 2025 includes ranges for short-term securities, fixed income, and equities, with oversight by the NSPI Management Pension Committee and adherence to Board-approved investment policies.
The following table shows the expected cash flows for defined benefit pension and other post-retirement benefit plans: millions of dollars Defined benefit pension plans Non-pension benefit plans Expected employer contributions 2026 $ 10 $...
AI summary The text presents a table outlining expected cash flows for defined benefit pension and other post-retirement benefit plans, including employer contributions and benefit payments from 2026 to 2035. Assumptions underpinning these projections are also mentioned.
As at December 31, 2025, future minimum lease payments under non-cancellable operating leases for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Minimum...
AI summary The document outlines future minimum lease payments for NSPI as of December 31, 2025, with payments expected to decrease over the next five years and increase significantly thereafter. It also provides details on the weighted average remaining lease term and discount rate for operating leases.
As at December 31, 2025, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Minimum lease payments to be re...
AI summary The document presents future minimum lease payments to be received from December 31, 2025, over the next five years and in aggregate thereafter. It also references a section on related party transactions, indicating a focus on financial obligations and relationships.
A. Commitments As at December 31, 2025, contractual commitments (excluding pensions and other post-retirement obligations, long-term debt, interest payment obligations, long-term payables and ARO) for each of the next five years and in agg...
AI summary This section outlines contractual commitments as of December 31, 2025, excluding certain obligations such as pensions, long-term debt, and ARO. It provides a breakdown of these commitments for the next five years and in aggregate thereafter.
NSPI has a contractual obligation to pay NSPML, a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On December 23, 2025, NSPML received an Interim Order from the NSEB a...
AI summary NSPI is contractually obligated to pay NSPML for the use of the Maritime Link over 38 years. An Interim Order from the NSEB allows NSPML to collect up to $198.7 million from NSPI in 2026, with a monthly holdback of up to $4 million.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
EMPLOYEE COMMON SHARE PURCHASE PLAN Eligible employees may participate in Emera's Employee Common Share Purchase Plan ("ECSPP"). As of December 31, 2025, the plan allows employees to make cash contributions of a minimum of $25 to a maximum...
AI summary Emera's Employee Common Share Purchase Plan allows eligible employees to contribute up to $20,000 annually, with the company matching 20% of contributions. The plan reserves 7 million shares for issuance, and compensation costs for shares issued in 2025 were $2 million, classified under 'OM&G' expenses.
25. INVESTMENTS SUBJECT TO SIGNIFICANT INFLUENCE Carrying Value as at December 31 December 31 Ownership (2) millions of dollars 2025 2024 2025 WTI (1) $ 9 $ - 50% (1) Equity earnings issued for the three months and year ended December 31,...
AI summary This section discusses investments subject to significant influence, specifically WTI with a 50% ownership stake as of December 31, 2025, and notes that equity earnings for the period were nil.
Transition Risk: As government policy related to the environment, renewable energy, and decarbonization continues to shift, the Company is exposed to increased uncertainty and risk arising from policy, legal, regulatory, technology, and ma...
AI summary The Company faces increased transition risks due to evolving environmental policies, renewable energy mandates, and decarbonization efforts, which may lead to Material Adverse Effects. These risks require addressing regulatory changes and balancing stakeholder demands for energy reliability and affordability.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
Commodity Price Risk The Company's fuel supply is subject to commodity price risk. The Company's fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted te...
AI summary Nova Scotia Power Inc. (NSPI) faces commodity price risk due to global market volatility affecting fuel supply. Factors like geopolitical events and economic shifts could drive fuel prices upward, risking affordability, cost recovery, and customer consumption. NSPI aims to hedge 50-100% of 2026 fuel costs and 50-90% for 2027, adjusting quarterly to maintain stability.
2025 Annual Financial Statements Attachment 4 Page 8 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Incorporated – Management Information Circular 2026 - Under the Company's Articles of Association, Directors are requi...
AI summary The document outlines requirements for directors and employees of Nova Scotia Power Incorporated regarding conflicts of interest, including restrictions on ownership and involvement with affiliated entities, and the need for prior approval from senior management or the Board.
Short–Term Incentive Program The compensation awarded under the Short-Term Incentive Program (STIP) links a portion of an executive's compensation to the achievement of predetermined levels of performance in support of corporate and busine...
AI summary The Short-Term Incentive Program (STIP) links executive compensation to performance targets set by Emera and NSPI, with payouts based on achievement of corporate and business unit objectives. Scorecards are used to translate strategies into measurable goals, and payouts range from 0 to 200% of target, benchmarked against comparator companies.
Name and position Salary ($) (1) Recovered in rates ($) Annual incentive payout ($)(2) PSU/RSU payout ($) (3) Value of perquisites & all other compensati on ($)(4) Recove -red in rates ($) Total 2025 Compensati- on (includ. PSU& RSU Payout...
AI summary The table outlines compensation details for key executives at Nova Scotia Power Inc. and Emera Inc., including salaries, recoverable amounts in rates, incentive payouts, and other compensation. Notably, a portion of Peter Gregg's salary was paid by Emera Inc. for environment and sustainability responsibilities and is not recoverable in rates.
Compensation of Directors With the exception of the Lead Director, all other Directors who were not employees of NSPI or its parent company, Emera, received an annual retainer of $90,000 as compensation for their services as Directors in 2...
AI summary Directors of Nova Scotia Power Inc. (NSPI) receive annual retainers, with the Lead Director receiving $135,000 and other non-employee directors receiving $90,000. Directors may receive compensation in the form of Deferred Share Units (DSUs), and NSPI does not offer option-based awards or pension plans to its Directors.
Defined Benefit The following table shows years of credited service, estimated pension amounts and changes to accrued obligations from January 1, 2025 to December 31, 2025 for the NEOs who participated in the Pension Plan on a defined bene...
AI summary The text presents a table showing the estimated pension amounts and changes to accrued obligations for NEOs participating in the Pension Plan on a defined benefit basis from January 1, 2025, to December 31, 2025.
Annual benefits payable Name Number of years At year-end At age 65 Accrued obligation Compensatory Non Closing present value credited service ($) (1) ($) at the start of the change ($) (2) compensatory of defined benefit (#) year ($) chang...
AI summary The table provides details on Greg Blunden's annual benefits payable, including accrued obligations and present value of defined benefit pension at year-end. The information outlines his pension eligibility and compensation changes.
Compliance and Permits In addition to imposing continuing compliance obligations, there are laws, regulations and permits authorizing the imposition of penalties for non-compliance, including fines, injunctive relief and other sanctions. T...
AI summary The text discusses the importance of compliance with environmental laws and regulations for NSPI, noting that non-compliance could have a material adverse effect. It also mentions recent environmental developments and NSPI's engagement with stakeholders to achieve environmental goals while focusing on customer affordability.
USGAAP – Exemptive Relief and Companies Act Relief NSPI was granted Exemptive Relief on September 13, 2022 and Companies Act Relief on October 12, 2022, each allowing NSPI to continue to report its financial results in accordance with USGA...
AI summary NSPI received Exemptive Relief and Companies Act Relief in 2022, allowing it to continue using USGAAP for financial reporting. These reliefs will expire in 2027 or earlier if NSPI no longer has rate-regulated activities. The IASB's Exposure Draft on Regulatory Assets and Liabilities may affect the future of these reliefs.
Common Shares As at December 31, 2025, NSPI had 173,517,299 common shares outstanding, all of which are owned by Emera. The common shares carry one vote per share and, subject to the prior rights of holders of any preferred shares, each co...
AI summary As of December 31, 2025, Nova Scotia Power Inc. (NSPI) had 173,517,299 common shares outstanding, all owned by Emera. Each common share carries one vote and entitles the holder to dividends or other distributions, subject to preferred share rights and share ownership restrictions.
2025 Annual Financial Statements Attachment 5 Page 18 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) the aggregate, voting shares of NSPI to which are attached more than 15 per cent of the votes that may ordinarily be cast to elect dire...
AI summary The document outlines ownership constraints on voting shares of Nova Scotia Power Inc. (NSPI), including limitations on non-resident ownership and enforcement mechanisms such as voting rights suspension and share redemption. Emera is exempt from these constraints due to the Nova Scotia Power Reorganization (1998) Act.
Financial Results Emera made company history this year by reporting annual adjusted net income (1) in excess of $1 billion and adjusted EPS (1) of $3.49—a 19 per cent increase over 2024. This was supported by strong performance at Tampa El...
AI summary Emera reported significant financial growth in 2025, including adjusted net income exceeding $1 billion and a 19% increase in adjusted EPS compared to 2024. Strong performance from Tampa Electric and Emera Energy, along with a $3.6 billion capital program, supported this growth. The company also extended its EPS growth target through 2030 and achieved strong shareholder returns.
Gain on Sale of Emera's Indirect Minority Interest in the Labrador Island Link ("Gain on sale of LIL"): In Q2 2024, Emera recognized a $107 million gain, after tax and transaction costs, on the sale of LIL. In Q4 2024, Emera recognized a $...
AI summary In Q2 2024, Emera recognized a $107 million gain on the sale of its indirect minority interest in the Labrador Island Link. In Q4 2024, a $22 million tax benefit was recognized due to the reversal of a prior year valuation allowance, which offset a portion of the taxable capital gain.
Charges Related to Wind-Down Costs and Certain Asset Impairments: In Q4 2024, the Company recognized $26 million, after-tax, in wind-down costs and certain asset impairments, primarily at Block Energy LLC ("Block Energy"). For further deta...
AI summary In Q4 2024, the Company recognized $26 million, after-tax, in wind-down costs and certain asset impairments, primarily at Block Energy LLC. For further details, refer to the 'Significant Items Affecting Earnings' section.
Charges Related to Wind-Down Costs and Certain Asset Impairments In Q4 2024, Emera recognized $32 million ($26 million after-tax, or $0.09 per common share) in wind-down costs and certain asset impairments, primarily at Block Energy. These...
AI summary In Q4 2024, Emera recognized $32 million in wind-down costs and asset impairments, primarily at Block Energy, recorded in 'Other income, net' and 'Impairment charges' on the Consolidated Statements of Income.
Income Tax Expense (Recovery) For Q4 2025, income tax recovery decreased $164 million compared to Q4 2024 due to the recognition of tax benefits associated with denied interest and financing expenses in the prior year, decreased deferred i...
AI summary In Q4 2025, income tax recovery decreased by $164 million compared to Q4 2024, due to factors such as tax benefits from denied interest and financing expenses, and changes in deferred income tax asset valuation. For the full year 2025, income tax expense increased by $240 million compared to 2024, influenced by higher income before taxes and tax benefits from denied interest and financing expenses, partially offset by tax credits and gains from asset sales.
Pension Funding For funding purposes, Emera determines required contributions to its largest defined benefit ("DB") pension plans based on smoothed asset values. This reduces volatility in the cash funding requirement as the impact of inve...
AI summary Emera uses smoothed asset values to determine pension contributions, reducing volatility in cash funding requirements. Expected contributions for DB pension plans are $34 million in 2026, while defined contribution plans are projected at $53 million. Investments are managed by external managers based on long-term strategic goals and regular performance reviews.
Defined Benefit Pension Plan Summary in millions of dollars Plans by region TECO Holdings NSPI Caribbean Total Assets as at December 31, 2025 $ 1,025 $ 1,637 $ 13 $ 2,675 Accounting obligation at December 31, 2025 $ 926 $ 1,349 $ 19 $ 2,29...
AI summary The Defined Benefit Pension Plan Summary provides an overview of pension plan assets and obligations for various regions, including TECO Holdings, NSPI, and the Caribbean, as of December 31, 2025. It also includes accounting expense details for fiscal 2025.
Guarantees and Letters of Credit Emera has guarantees and letters of credit on behalf of third parties outstanding. The following significant guarantees and letters of credit were not included within the Consolidated Balance Sheets as at D...
AI summary Emera and its subsidiaries have various guarantees and letters of credit outstanding, including those related to Brunswick Pipeline, SeaCoast, and NSPI. These guarantees and letters of credit are in place to secure obligations under loan agreements, service agreements, and regulatory requirements. Some guarantees are subject to renewal or replacement, and the potential financial exposure is outlined.
Dividend Payout Ratio Emera has provided annual dividend growth guidance of one to two per cent per year. On September 25, 2025, the Board approved an increase in the annual common share dividend rate to $2.9300 from $2.9000 per common sha...
AI summary Emera has increased its annual common share dividend rate to $2.9300 per share, effective September 25, 2025, with the first payment made on November 15, 2025. The dividend payout ratio for 2025 was 86% of net income and 83% of adjusted net income, compared to 168% and 98% in 2024, respectively.
Transition Risk: As government policy related to the environment, renewable energy, and decarbonization continues to shift in various operating jurisdictions, the Company is exposed to increased uncertainty and risk arising from policy, le...
AI summary The Company faces increased transition risk due to evolving environmental policies, renewable energy initiatives, and decarbonization efforts, leading to uncertainty in policy, legal, and regulatory frameworks. This may impact customer demand, rates, and the need for significant capital investment. Risks also include challenges in insuring carbon-emitting assets and potential litigation or regulatory action over environmental harms.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company is exposed to macroeconomic conditions affecting demand for electricity and natural gas, which can impact its financial results. Adverse economic conditions and inflation may hinder customers' ability to afford rate increases, leading to potential credit risks, policy changes, and challenges in recovering costs.
2025 Annual Financial Statements Attachment 6 Page 53 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...
AI summary The document highlights potential risks to Emera's financial performance due to adverse changes in economic and market conditions caused by public health threats, which could impact demand, revenue, operating costs, capital investments, and counterparty risk.
Counterparty Risk Emera is exposed to risk related to its reliance on certain key partners, suppliers, and customers, any of whom may endure financial challenges resulting from commodity price and market volatility, economic instability or...
AI summary Emera faces counterparty risk due to reliance on key partners, suppliers, and customers who may face financial difficulties or insolvency. This could lead to losses from uncollectible receivables and non-performance under agreements. Management strategies may not fully mitigate these risks, potentially resulting in a Material Adverse Effect.
Emera Energy Marketing and Trading: The majority of Emera Energy's portfolio of electricity and gas marketing and trading contracts and, in particular, its natural gas asset management arrangements, are contracted on a back-to-back basis,...
AI summary Emera Energy's electricity and gas marketing and trading contracts are mostly back-to-back, minimizing commodity position risks. However, the portfolio is exposed to commodity price risks, especially basis point differentials, operational issues, tariffs, or counterparty defaults, which can increase collateral and liquidity requirements.
Future Employee Benefit Plan Performance and Funding Risk Emera subsidiaries have both defined benefit and defined contribution employee pension plans that cover employees and retirees. All defined benefit plans are closed to new entrants,...
AI summary Emera's defined benefit and defined contribution pension plans face funding risks due to factors like investment performance, interest rates, and inflation. These factors influence actuarial assumptions and could lead to increased contributions, potentially resulting in a Material Adverse Effect.
Labour Risk Emera's ability to deliver service to its customers and to execute its growth plan depends on attracting, developing and retaining a skilled workforce. Utilities are faced with demographic challenges related to trades, technica...
AI summary Emera's ability to deliver services and execute its growth plan is dependent on attracting and retaining a skilled workforce, which faces demographic challenges due to retirements. Approximately 30% of Emera's workforce is unionized, and failure to negotiate acceptable collective agreements could lead to higher costs and service disruptions.
Uninsured Risk Emera and its subsidiaries maintain insurance to cover accidental loss suffered to its facilities and to provide indemnity in the event of liability to third parties. A significant portion of Emera's electric utilities' tran...
AI summary Emera and its subsidiaries maintain insurance for accidental loss and third-party liability, but a significant portion of their transmission and distribution assets are not insured due to high costs. They also accept deductibles and self-insured retentions, which could lead to material adverse effects if claims exceed coverage limits or are not recoverable through regulation.
Pension and Other Post-Retirement Employee Benefits The Company provides post-retirement benefits to employees, including defined benefit pension plans. The cost of providing these benefits is dependent upon many factors that result from a...
AI summary The Company provides post-retirement benefits to employees, including defined benefit pension plans. Accounting for these benefits is a critical estimate, with factors such as employee demographics and actuarial assumptions significantly impacting financial statements. Pension plan assets are primarily equity and fixed income investments, and fluctuations in market returns and interest rates affect future pension costs. The Company uses smoothed asset values to reduce volatility in reported pension costs, with the discount rate being the main source of volatility.
Goodwill Impairment Assessments Goodwill is calculated as the excess of the purchase price of an acquired entity over the estimated FV of identifiable assets acquired, and liabilities assumed at the acquisition date. Goodwill is subject to...
AI summary The document discusses goodwill impairment assessments for Emera, including the calculation of goodwill, the annual impairment tests, and the impact of the sale of NMGC. It also highlights the results of qualitative assessments for PGS and TEC in Q4 2025 and the change in goodwill carrying value from 2024 to 2025 due to FX translation.
Goodwill Goodwill is calculated as the excess of the purchase price of an acquired entity over the estimated FV of identifiable assets acquired and liabilities assumed at the acquisition date. Goodwill is carried at initial cost less any w...
AI summary Goodwill is calculated as the excess of purchase price over the fair value of identifiable assets and liabilities. It is carried at initial cost less impairment and adjusted for foreign exchange. Goodwill is tested for impairment annually or when circumstances indicate a potential decline in fair value. The income approach and market approach are used to estimate fair value, with significant assumptions impacting the valuation.
Leases The Company determines whether a contract contains a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease liabili...
AI summary The document outlines Emera's lease accounting practices, including how leases are identified, recognized, and accounted for in financial statements. It distinguishes between operating and finance leases and explains how lease liabilities and right-of-use assets are recorded. The document also covers specific lease arrangements with independent power producers and other utilities, as well as sales-type and direct finance leases.
Receivables and Allowance for Credit Losses Utility customer receivables are recorded at the invoiced amount and do not bear interest. Standard payment terms for electricity and gas sales are approximately 30 days. A late payment fee may b...
AI summary The document discusses how utility customer receivables are recorded and managed, including the recognition of allowances for credit losses based on historical experience and forecasts. Late payment fees and write-offs are also addressed.
Equity Method Investments: The carrying value of investments accounted for under the equity method are assessed for impairment by comparing the FV of these investments to their carrying values, if a FV assessment was completed, or by revie...
AI summary The carrying value of equity method investments is assessed for impairment by comparing their fair value to their carrying value or by reviewing for impairment indicators. No impairment was required in 2025 or 2024.
Stock-Based Compensation The Company has several stock-based compensation plans: a common share option plan for senior management; an employee common share purchase plan; a deferred share unit ("DSU") plan; a performance share unit ("PSU")...
AI summary The Company has multiple stock-based compensation plans, including options, share purchase, deferred, performance, and restricted share units. These are accounted for using the FV-based method, with costs recognized over the service period and re-measured at each reporting date for liability-based plans.
Employee Benefits The costs of the Company's pension and other post-retirement benefit programs for employees are expensed over the periods during which employees render service. The Company recognizes the funded status of its defined-bene...
AI summary The document discusses how the Company expenses pension and post-retirement benefit costs over the service periods of employees, recognizes the funded status of its defined-benefit and postretirement plans on the balance sheet, and accounts for unamortized gains, losses, and past service costs in AOCI or regulatory assets.
Improvements to Income Tax Disclosures The Company adopted Accounting Standard Update ("ASU") 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, effective December 31, 2025. The standard enhances the transparency, d...
AI summary The Company adopted ASU 2023-09, effective December 31, 2025, to improve income tax disclosures by enhancing transparency and decision usefulness through consistent categories and greater disaggregation of information in tax reconciliations and jurisdictional tax payments.
Federal Loan Guarantee ("FLG"): On September 24, 2024, the Government of Canada finalized an agreement with NSPI, NSPML and the Province of Nova Scotia (the "Province") on terms and conditions for a FLG of $500 million in debt to be issued...
AI summary The Government of Canada finalized a $500 million FLG agreement with NSPI, NSPML, and the Province of Nova Scotia to manage unrecovered costs from the Muskrat Falls project delay. The NSEB approved NSPML's debt issuance, and proceeds were transferred to NSPI to offset a portion of previous assessment payments and recover financing costs over 28 years.
9. Other Income, Net For the Year ended December 31 millions of dollars 2025 2024 AFUDC $ 62 $ 53 Interest income 37 23 Pension non-current service cost recovery 25 35 FX gains (losses) 25 (58) Gain on sale of LIL, net of transaction costs...
AI summary This section details Other Income, Net for the year ended December 31, 2025, and 2024, with notable items including AFUDC, interest income, pension cost recovery, FX gains, and a gain on the sale of LIL, among others. Note 4 provides further details on the gain on sale and pending transaction.
The Company's concentrations of risk consisted of the following: As at December 31, 2025 December 31, 2024 millions of % of total millions of % of total dollars exposure dollars exposure Receivables, net Regulated utilities: Residential $...
AI summary The Company's risk concentrations include receivables from regulated utilities, trading groups, and derivative instruments, with a significant portion classified as assets held for sale following the announced sale of NMGC. The data reflects changes in exposure percentages between 2024 and 2025.
Notes to the Consolidated Financial Statements As at December 31, 2024 millions of dollars Level 1 Level 2 Level 3 Total Assets Regulatory deferral: Commodity swaps and forwards $ 15 $ 3 $ — $ 18 FX forwards — 27 — 27 15 30 — 45 HFT deriva...
AI summary The notes to the consolidated financial statements detail regulatory deferral assets and liabilities related to commodity swaps, forwards, and derivatives. These include FX forwards, power swaps, and natural gas contracts. The text also mentions the classification of NMGC's assets and liabilities as held for sale following an agreement announced by Emera on August 5, 2024.
Changes in the benefit obligation and plan assets, and the funded status for plans were as follows: For the Year ended December 31 millions of dollars 2025 2024 DB pension Non-pension DB pension Non-pension plans benefit plans plans benefi...
AI summary The text provides a detailed overview of changes in the benefit obligation and plan assets for defined benefit (DB) pension and non-pension benefit plans for the years 2024 and 2025, including service cost, interest cost, plan amendments, benefits paid, actuarial gains and losses, and funded status.
The ABO for the DB pension plans was $2,114 million as at December 31, 2025 (2024 – $2,255 million). The aggregate financial position for those plans with an ABO in excess of the plan assets for the years ended December 31 were as follows:
AI summary The ABO for the DB pension plans was reported as $2,114 million as of December 31, 2025, a decrease from $2,255 million in 2024. The financial position of these plans, where ABO exceeds plan assets, is outlined for the years ended December 31.
Pension Plan Asset Allocations Emera's investment policy includes discussion regarding the investment philosophy, the level of risk which the Company is prepared to accept with respect to the investment of the Pension Funds, and the basis...
AI summary Emera's investment policy outlines its approach to managing Pension Fund assets, emphasizing diversification across asset classes and security grades to manage risk and meet actuarial return assumptions.
Asset Class Target Range at Market Canadian Pension Plans: Short-term securities 0% to 10% Fixed income 34% to 49% Equities: Canadian 5% to 15% Non-Canadian 37% to 61% Non-Canadian Pension Plans: Cash and cash equivalents 0% to 10% Fixed i...
AI summary The document outlines the target asset allocation ranges for Canadian and non-Canadian pension plans, including allocations for short-term securities, fixed income, and equities. Pension plan assets are managed by respective management pension committees and are governed by policies approved by the sponsoring companies' Boards of Directors.
Non-Pension Benefit Plans There are no assets set aside to pay for most of the Company's non-pension benefit plans. As is common practice, postretirement health benefits are paid from general accounts as required. The exception to this is...
AI summary The document states that most of the Company's non-pension benefit plans are not funded with separate assets and are instead paid from general accounts, with the exception of the NMGC Retiree Medical Plan, which is fully funded.
Investments in Emera As at December 31, 2025 and 2024, assets related to the pension funds and post-retirement benefit plans did not hold any material investments in Emera or its subsidiaries securities. However, as a significant portion o...
AI summary As of December 31, 2025 and 2024, pension funds and post-retirement benefit plans did not hold material investments in Emera or its subsidiaries. However, due to pooled assets, there may be indirect investments. Common collective trusts are private funds valued at NAV, calculated using bid prices of underlying securities, with some funds investing in equity and others in U.S. investment grade fixed income.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company faces economic risks due to macroeconomic conditions affecting consumer demand for electricity and natural gas. These risks include challenges in recovering rate increases, credit and counterparty risks, and potential impacts from regulatory and legislative changes.
D. Guarantees and Letters of Credit Emera has guarantees and letters of credit on behalf of third parties outstanding. The following significant guarantees and letters of credit were not included within the Consolidated Balance Sheets as a...
AI summary Emera and its affiliates have issued several guarantees and letters of credit for third parties, including a $22 million standby letter of credit for Brunswick Pipeline, a $45 million guarantee for SeaCoast, and a $66 million guarantee for ECI. These guarantees have specific terms, expiration dates, and conditions for replacement credit support.
30. Non-Controlling Interest in Subsidiaries As at millions of dollars December 31 2025 December 31 2024 Preferred shares of GBPC $ 14 $ 14 Preferred shares of GBPC
AI summary The document presents a table showing the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, with no change in value between the two periods.
Deferred Share Unit Plans: Under the Directors' DSU plan, Directors of the Company may elect to receive all or any portion of their compensation in DSUs in lieu of cash compensation, subject to requirements to receive a minimum portion of...
AI summary The document outlines the Deferred Share Unit (DSU) plans for both directors and executive/senior management of the company. Directors may receive compensation in DSUs, which are tied to the value of Emera common shares and are redeemable in cash upon retirement or resignation. Executives may also defer incentive awards in DSUs, subject to ownership guidelines. The value of DSUs is adjusted based on dividend payments and stock prices.
A summary of the activity related to employee PSUs for the year ended December 31, 2025 is presented in the following table: Employee PSU Weighted Average Grant Date FV Aggregate intrinsic value Outstanding as at December 31, 2024 832,093...
AI summary This document summarizes the activity related to employee Performance Share Units (PSUs) for the year ended December 31, 2025, including changes in outstanding PSUs, compensation costs, tax benefits, and cash payments. The weighted average grant date fair value and intrinsic value are also presented.