Topic:"Capital Expenditures" in M12835

REDACTED 2025 Annual Financial Statements Attachment 1 Page 5 of 6 As at December 31 millions of Canadian dollars 2025 Unregulated Retained Earnings Unregulated retained earnings - December 31, 2024 $200.8 Unregulated compensation (includi...

AI summary The text presents a table from the 2025 Annual Financial Statements, focusing on unregulated retained earnings, property, plant, and equipment, as well as income taxes and related party transactions. It includes details on unregulated compensation, interest and depreciation expenses, and various adjustments affecting financial figures.

Nova Scotia Power Inc. Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 141 $ 160 Adjustments to reconcile net income to net cash provided by operating act...

AI summary The consolidated statements of cash flows for Nova Scotia Power Inc. show net income of $141 million in 2025 compared to $160 million in 2024. Net cash provided by operating activities was $118 million in 2025, a significant decrease from $919 million in 2024. The FAM (Fuel Adjustment Mechanism) had a negative impact in 2025 with a $158 million outflow, contrasting with a $451 million inflow in 2024.

Allowance for Funds Used During Construction AFUDC represents the cost of financing regulated construction projects and is capitalized to the cost of PP&E until the asset is operational. The Company includes an equity cost component in AFU...

AI summary AFUDC represents the cost of financing construction projects, capitalized to PP&E until operational. It includes equity and borrowed funds components, treated as non-cash items. Calculated via weighted average cost of capital, approved by NSEB, with semi-annual compounding. The equity component reduces 'Other income, net,' while the borrowed funds component reduces 'Interest expense, net.'

Government Grants The Company accounts for government grants by applying a grant accounting model by analogy to International Accounting Standards ("IAS") 20 , Accounting for Government Grants and Disclosure of Government Assistance . A gr...

AI summary The Company accounts for government grants using IAS 20, with 2025 grants totaling $74 million for decarbonization and environmental compliance projects. Key programs include NRCan's SREP, funding three 50 MW battery storage systems, with $45 million received in 2025. Grants reduce PP&E carrying amounts for asset-related support and offset income-related expenses.

Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project to create a reliability intertie between Nova Sc...

AI summary NSPI, Canada Infrastructure Bank, and Wskijinu'k Mtmo'taqnuow Agency announced the Wasoqonatl transmission line project to create a reliability intertie between Nova Scotia and New Brunswick. Owned by WTI, a limited partnership, NSPI provides operational services and holds 50% indirect voting interest. NSEB approved $685 million capital investment, including AFUDC, for the project.

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 2025 and 2024 includes ranges for short-term securities, fixed income, and equities, with oversight by the NSPI Management Pension Committee and adherence to policies approved by the Board of Directors.

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 provides details on future minimum lease payments for NSPI as of December 31, 2025, including the weighted average remaining lease term and discount rate for operating leases.

On December 19, 2025, NSPI invested $9 million in WTI and recorded this within "Investments subject to significant influence" on the Consolidated Balance Sheets. Equity earnings issued to NSPI from WTI for the year ended December 31, 2025...

AI summary On December 19, 2025, NSPI invested $9 million in WTI, which is recorded under 'Investments subject to significant influence' on the Consolidated Balance Sheets. No equity earnings were issued to NSPI from WTI for the year ended December 31, 2025, as detailed in note 25.

2025 Annual Financial Statements Attachment 2 Page 37 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) For the year ended December 31, 2025, NSPI issued 0.04 million common shares (2024 – 0.04 million common shares) to Emera for total con...

AI summary NSPI issued 0.04 million common shares to Emera in 2025 for $0.4 million and returned $340 million in capital. As of December 31, 2025, NSPI owed $185 million to Emera and affiliates, up from $150 million in 2024.

Credit Facilities NSPI can issue up to $800 million under its commercial paper program, of which the full amount outstanding is backed by the Company's operating credit facility. The amount of commercial paper issued results in an equal am...

AI summary NSPI's credit facilities include a $800 million commercial paper program backed by its operating credit facility, a revolving credit facility for the BESS Project, and extendable notes until 2056. Issuance of commercial paper reduces available capacity under the operating credit facility.

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 The text outlines contractual commitments as of December 31, 2025, excluding pensions, long-term debt, and other obligations. It provides a breakdown of these commitments for the next five years and in aggregate thereafter.

C. Environment NSPI's activities are subject to a broad range of federal, provincial, regional and local laws and environmental regulations, designed to protect, restore and enhance the quality of the environment including air, water and s...

AI summary NSPI faces environmental regulations requiring grid investments to support renewable energy transition, with estimated capital spending of $81M in 2026 and $111M from 2027-2030. Compliance costs are material, and funding depends on government collaboration. No significant compliance issues were found in recent audits.

Interest Rate Risk: NSPI utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. The allowed range of ROE will generally follow the direction...

AI summary NSPI uses fixed and floating rate debt, exposing it to interest rate risk. ROE adjustments align with interest rate trends but lag due to regulatory processes. 75% of NSPI's debt (as of December 31, 2025) is fixed-rate with a 17-year average maturity. Debt costs are recovered from customers, and credit ratings may influence interest rates.

E. Guarantees and Letters of Credit As at December 31, 2025, the Company had $94 million USD (2024 - $104 million USD) of guarantees outstanding with terms of varying lengths, all of which are issued on behalf of NSPEMI. As at December 31,...

AI summary As of December 31, 2025, the Company had $94 million USD in guarantees and $6 million USD/$8 million CAD in letters of credit outstanding, all issued on behalf of NSPEMI. This reflects a decrease from 2024 figures.

23. REDEEMABLE PREFERRED STOCK On August 30, 2024, NSPI authorized 800,000 redeemable preferred shares and issued 400,000 redeemable preferred shares ("Series A") at a par value of $25 per share to finance the Battery Energy Storage System...

AI summary NSPI issued 400,000 redeemable preferred shares (Series A) at $25 par value in 2024 to finance a Battery Energy Storage System Project. As of December 31, 2025, these shares are recorded as a liability on consolidated balance sheets, with dividends classified as interest expense.

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.

Operations NSPI's earnings are most directly impacted by the range of ROE and capital structure approved by the NSEB, the prudent management and approved recovery of operating costs, electric sales volumes, weather, the approved recovery o...

AI summary NSPI's 2026 earnings are projected to be higher than 2025, driven by approved ROE ranges, increased sales volumes, and capital investments of ~$720M. Earnings depend on NSEB-approved rates, cost recovery, and capital structure. Investments focus on power system reliability.

Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project which will create a reliability intertie between...

AI summary The Wasoqonatl Transmission Line project, a reliability intertie between Nova Scotia and New Brunswick, is owned by WTI, a limited partnership between NSPI, CIB, and WMA. NSPI holds 50% indirect voting interest and provides operational services. NSEB approved a $685M capital investment, including AFUDC, for the project.

Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025, and December 31, 2024, including increases in receivables, income taxes receivable, and pension assets, as well as changes in debt levels and regulatory assets and liabilities. These changes are attributed to factors like capital investment, timing of payments, and tax credits.

2025 Annual Financial Statements Attachment 3 Page 11 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI's future liquidity and capital needs will be predominantly for working capital requirements, ongoing rate base investment and debt...

AI summary NSPI anticipates $720 million in 2026 capital investments for power system reliability, supported by $800 million in revolving credit and $500 million in term facilities. Liquidity needs include working capital, rate base investments, and debt servicing.

Cash Flow used in Investing Activities Net cash used in investing activities increased $148 million to $631 million in 2025 compared to $483 million in 2024 due to higher capital investment.

AI summary Net cash used in investing activities rose by $148 million to $631 million in 2025 from $483 million in 2024, driven by increased capital investment.

2025 Annual Financial Statements Attachment 3 Page 21 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Company will be required to manage the impacts of these ongoing changes on customer demand and rates, while maintaining and integra...

AI summary The company faces challenges in managing energy transition impacts, capital investments, and external factors affecting the pace of emissions reductions. Insurance risks for carbon-emitting assets, potential legal actions, and climate change risks could affect service delivery, reputation, and access to capital.

Liquidity and Capital Market Risk Liquidity risk relates to NSPI's ability to ensure sufficient funds are available to meet its financial obligations. NSPI's access to capital and cost of borrowing is subject to several risk factors, inclu...

AI summary NSPI faces liquidity risks due to reliance on capital markets and sensitivity to credit ratings. Market disruptions, interest rate changes, and climate-related events could hinder access to cost-effective financing. Downgraded credit ratings may increase borrowing costs and require collateral for derivative instruments, impacting financial stability.

Project Development and Land Use Rights Risk The Company's capital plan includes significant investment in generation, infrastructure modernization and customer-focused technologies. Any projects planned or currently in construction, parti...

AI summary NSPI's capital projects face risks including cost overruns, regulatory approval delays, and land use challenges with Indigenous communities. Projects may require federal, provincial, and municipal permits, and failure to secure land rights could lead to significant costs. Compliance with environmental and operational requirements is critical to avoid material adverse effects.

Capital Investment NSPI's 2025 Capital Plan was approved by the NSEB on August 19, 2025. NSP submitted a Capital Plan for 2026 to the NSEB for approval on December 12, 2025. Capital investment for 2025, including AFUDC, was $712 million (2...

AI summary NSPI's 2025 Capital Plan was approved by NSEB in August 2025, with a 2026 plan submitted in December 2025. Capital investments rose from $451M (2023) to $712M (2025). The rate base includes utility plant, construction work-in-progress, and regulated assets, subject to NSEB approval. A 2025 depreciation study awaits approval, following the last study in 2010.

BESS Project On June 13, 2024, the NSEB approved $238 million of capital investment, including AFUDC, for the BESS Project. The project is comprised of three 50 MW, four-hour battery facilities. As of December 31, 2025, two facilities are...

AI summary The NSEB approved $238 million in capital investment, including AFUDC, for the BESS Project, which consists of three 50 MW battery facilities. Two facilities were operational by December 2025, with the third expected to come online in 2026.

Clean Energy Transition As part of its IRP process, NSPI filed an updated IRP Action Plan and Roadmap with the NSEB in August of 2023. On October 11, 2023, the Province released the 2030 Clean Power Plan which outlines the Province's strat...

AI summary NSPI's updated IRP Action Plan aligns with the Province's 2030 Clean Power Plan, aiming for 80% renewable electricity by 2030 through 1,000 MW of wind and 300 MW of solar. Grid investments, energy storage, and thermal fleet upgrades are required. NSPI seeks funding collaboration with federal/provincial governments to manage transition costs.

Credit Facilities In July 2022, NSPI entered into a $400 million non-revolving term facility set to mature July 15, 2024. The credit agreement contains customary representation and warranties, events of default and financial and other cove...

AI summary NSPI secured multiple credit facilities between 2022 and 2025, including a $400M non-revolving term facility (later amended to $300M), a revolving credit facility extension to 2029, and a $120M non-revolving facility for the BESS Project. Facilities were used for general corporate purposes and project financing, with terms adjusted through amendments.

Note Issuances On March 24, 2023, NSPI completed a $300 million unsecured note issuance that bears interest at a rate of 4.95 per cent and has a maturity date of November 15, 2032. On the same date, NSPI completed a $200 million unsecured...

AI summary NSPI issued two unsecured notes in March 2023: $300M at 4.95% maturing 2032 and $200M at 5.36% maturing 2053. Proceeds were used to refinance debt, fund capital expenditures, and cover general corporate purposes.

Operations Capital investment for 2026, including AFUDC, is forecasted to be approximately $720 million (2025 actual – $712 million). NSPI is primarily investing in capital projects required to support power system reliability and reliable...

AI summary NSPI forecasts $720 million in 2026 capital investment (including AFUDC), up from $712 million in 2025, to enhance power system reliability and customer service. Investments focus on maintaining infrastructure and service quality.

APPENDIX A – DEFINITIONS For convenience, terms used throughout this 2025 AIF of Nova Scotia Power Incorporated shall have the following meanings: - "AFUDC" means allowance for funds used during construction and represents the cost of fina...

AI summary Appendix A defines key terms used in NSPI's 2025 Annual Information Form, including regulatory, financial, and operational terms such as AFUDC, FAM, DSM, COMFIT, and cybersecurity incident definitions. These terms relate to NSPI's compliance, capital planning, and regulatory frameworks.

~80% of capital plan through 2030 is focused in Florida in support of customer growth at Tampa Electric and Peoples Gas respectively

AI summary A capital plan through 2030 is focused in Florida to support customer growth for Tampa Electric and Peoples Gas. The plan emphasizes infrastructure investments aligned with expanding energy demands in these regions.

Visible Growth Plan $20B capital investment plan through 2030 committed to renewable integration, grid reliability, and modernization

AI summary The Visible Growth Plan outlines a $20 billion capital investment through 2030, focusing on renewable integration, grid reliability, and modernization to enhance Nova Scotia's energy infrastructure and support long-term sustainability goals.

2025 Financial Highlights $3.49 Annual adjusted EPS (1) 72% of adjusted net income (1), excluding Corporate costs, comes from Florida (2) $3.6B capital invested in 2025, leading to an 8% annual increase in rate base 4.3% dividend yield (3)...

AI summary The 2025 Financial Highlights report outlines key metrics including $3.49 annual adjusted EPS, 72% of adjusted net income from Florida, an 8% annual rate base increase due to $3.6B capital investment, and a 4.3% dividend yield. Non-GAAP measures are disclosed, with footnotes explaining adjustments and data sources.

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 achieved record financial results with adjusted net income exceeding $1 billion and adjusted EPS of $3.49, driven by strong performance in Tampa Electric and Emera Energy. The company extended its $20 billion capital plan through 2030, prioritizing reliability and renewables. Credit ratings were stable, and shareholder returns were strong, with a 31.9% TSR in 2025.

Financial Review - [Management's Discussion & Analysis](#page-145-0) - [Forward-Looking Information](#page-146-0) - [Introduction and Strategic Overview](#page-146-0) - [Non-GAAP Financial Measures and Ratios](#page-147-0) - [Consolidated...

AI summary The document outlines the structure of a financial review, including sections on management's discussion, financial highlights, pension funding, liquidity, capital resources, and accounting policies, likely from a utility company like Emera or NSPI. It details consolidated financial statements, critical accounting estimates, and shareholder information.

Introduction and Strategic Overview Emera (TSX/NYSE: EMA) is a North American provider of energy services, owning and operating a portfolio of cost-of-service, rate-regulated electric and gas utilities. Its largest operations are in Florid...

AI summary Emera, a North American energy services provider, focuses on regulated utilities and operational efficiency to deliver energy to 2.7 million customers. Earnings depend on rate base, equity structure, and ROE, with Florida utilities comprising 67% of average rate base. A $20 billion capital investment plan from 2026-2030 targets infrastructure modernization, reliability, and renewable integration, with 80% allocated to Florida due to growth and system needs.

Shareholder information As at millions of dollars 2026 2027 2028 2029 2030 Total Capital investment plan $ 4,020 $ 3,730 $ 4,140 $ 4,180 $ 4,330 $ 20,400 Average consolidated rate base US operations $ 23,180 $ 25,100 $ 27,140 $ 29,300 $ 31...

AI summary The document presents a capital investment plan and average consolidated rate base figures for various years, showing projected investments and rate base values for US and Canadian operations. The data excludes NMGC, with more details available in the 'Other Developments' section.

2025 Annual Financial Statements Attachment 6 Page 22 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 FPSC approved Emera's 2024 rate case decision in 2025, denied a motion for reconsideration, and authorized $466 million USD in hurricane-related cost recovery. Capital investments in Florida's electric utility segment are projected at $1.8 billion USD in 2026, including storm hardening and grid modernization. Intervening parties appealed the rate case decision to the Florida Supreme Court.

2025 Annual Financial Statements Attachment 6 Page 23 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 outlines NSPI's 2026 capital investment plan of $720 million (up from $712 million in 2025), emphasizing investments in power system reliability and customer service. Emera's leadership and shareholder information are also highlighted.

NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. NSPML's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated...

AI summary NSPML's equity earnings depend on its approved ROE (8.75%-9.25%) and operational performance. The Maritime Link, operational since 2018, enables energy transmission between Newfoundland and Nova Scotia. An interim NSEB order allows NSPML to collect $199M from NSPI in 2026, with a $4M monthly holdback. NSPML seeks termination of the holdback, pending a Q3 2026 decision. Capital investments are projected at $40M in 2026.

PGS With $3.3 billion USD of assets and approximately 523,000 customers, the PGS system includes approximately 25,600 kilometres of natural gas mains and 14,800 kilometres of service lines. Natural gas throughput (the amount of gas deliver...

AI summary PGS, with $3.3 billion USD in assets and 523,000 customers, anticipates 2026 earnings within its allowed ROE range (9.30%-11.30%) due to new base rates and customer growth. A $67 million USD rate increase was approved by FPSC, including adjustments for cast iron replacement and future years. Capital investment is projected at $445 million USD in 2026.

Other Electric Utilities Other Electric Utilities includes Emera (Caribbean) Incorporated ("ECI"), a holding company with regulated electric utilities. ECI's regulated utilities include vertically integrated regulated electric utilities of...

AI summary Other Electric Utilities, including Emera (Caribbean) Incorporated, operates regulated utilities in Barbados, Grand Bahama, and St. Lucia. 2026 earnings are expected to be consistent with 2025, with capital investment of $110 million USD focused on renewable energy and battery storage.

Other The Other segment includes business operations that in a normal year are below the required threshold for reporting as separate segments; and corporate expense and revenue items that are not directly allocated to Emera's subsidiaries...

AI summary The Other segment includes corporate functions, Emera Energy Services (EES), and a joint venture in Bear Swamp's hydroelectric facility. EES's earnings depend on energy market volatility, with seasonal performance and expected 2026 adjusted net income of $15–30M. The Other segment's 2026 adjusted net loss is projected to match 2025, with capital investment at ~$10M.

Significant changes in the Consolidated Balance Sheets between December 31, 2024 and December 31, 2025 include: millions of dollars Total Increase (Decrease) Explanation of Other Increase (Decrease) Assets held for sale (current and long-t...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2024, and December 31, 2025. Key changes include a decrease in assets held for sale due to impairment charges and FX translation, an increase in PP&E due to capital additions, a decrease in goodwill from FX translation, and an increase in short-term and long-term debt due to new issuances and credit facility utilization.

Financial Highlights

AI summary The document provides an overview of key financial highlights, including management's discussion and analysis, capital expenditures, and various regulatory and compliance considerations relevant to Nova Scotia Power Incorporated.

Liquidity and Capital Resources The Company generates internally sourced cash from its various regulated and non-regulated energy investments. Utility customer bases are diversified by both sales volumes and revenues among customer classes...

AI summary Emera generates cash from regulated and non-regulated energy investments, with liquidity affected by macroeconomic conditions, fuel prices, and regulatory decisions. Future capital needs include working capital, rate base investments, acquisitions, and debt servicing. Emera plans to fund these through operations, debt, equity, and the pending sale of NMGC, with regulatory approvals required for utility debt.

Cash Flow Used in Investing Activities Net cash used in investing activities increased $1,264 million to $3,482 million for the year ended December 31, 2025, compared to $2,218 million in 2024. The increase was due to the proceeds of $927...

AI summary Net cash used in investing activities rose to $3,482 million in 2025, driven by higher capital expenditures ($3,594 million) and proceeds from the sale of LIL ($927 million), partially offset by asset disposals. Capital spending increased across all segments, with the largest growth in Florida Electric Utility.

The 2026 forecasted consolidated capital investments, including AFUDC, are as follows: millions of dollars Florida Electric Utility Canadian Electric Utilities Gas Utilities and Infrastructure Other Electric Utilities Other Total Generatio...

AI summary The document outlines the 2026 forecasted consolidated capital investments across various sectors, including generation, transmission, distribution, and gas utilities, with a total investment of $4,020 million. It highlights specific figures for different regions and includes a note about investments subject to significant influence related to NSPML.

Gas Utilities and Infrastructure On November 20, 2025, PGS amended and restated its $250 million USD unsecured committed revolving credit facility to extend the maturity date from December 1, 2028, to November 20, 2030. There were no other...

AI summary PGS extended its $250M USD credit facility maturity to 2030, while NMGC secured a new $70M USD term loan and extended its $125M USD facility to 2027. Both entities maintained prior commercial terms, with interest rates tied to SOFR for NMGC's loan.

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 transition risks due to evolving environmental policies, renewable energy mandates, and decarbonization efforts, which may cause material adverse effects. These risks include regulatory uncertainty, capital investment needs, insurance challenges, and potential litigation. The energy transition requires balancing reliability, affordability, and stakeholder expectations while adapting infrastructure and managing insurance and regulatory exposure.

Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...

AI summary Emera faces liquidity risks due to capital market disruptions, credit rating fluctuations, and stock-based compensation impacts. Credit rating changes could increase borrowing costs, while stock-based compensation volatility affects earnings. The company's growth plan requires significant capital investments, with interest rate changes potentially increasing financing costs.

Government Grants The Company accounts for government grants by applying a grant accounting model by analogy to International Accounting Standards ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance . A gra...

AI summary The Company accounts for government grants under IAS 20, allocating asset-related grants to PP&E and income-related grants as expense deductions. In 2025, it received $80M (vs. $47M in 2024) from Canadian and US agencies for decarbonization and environmental compliance capital projects.

Natural Resources Canada ("NRCan") Smart Renewables & Electrification Pathways ("SREP"): On March 27, 2024, NSPI was approved for a grant under the NRCan SREPs to fund the construction of three 50 MW battery storage systems in Nova Scotia....

AI summary NSPI received a 33% grant under NRCan's SREP program for three 50 MW battery storage systems in Nova Scotia, with eligible costs until 2027. Funding of $45M (2025) and $26M (2024) was recorded as a reduction in PP&E carrying value.

Sale of LIL Equity Interest On June 4, 2024, Emera completed the sale of its 31.1 per cent indirect minority equity interest in the LIL for a total transaction value of $1.2 billion, including cash proceeds of $957 million and $235 million...

AI summary Emera completed the sale of its 31.1% indirect minority equity interest in LIL for $1.2 billion in June 2024, including $957 million cash proceeds and $235 million for assuming capital obligations. $30 million was escrowed pending agreements, with an estimated $29 million fair value as of December 2025. A $182 million pre-tax gain was recognized in Q2 2024, with an additional $22 million tax benefit in Q4 2024.

Notes to the Consolidated Financial Statements millions of dollars Florida Electric Utility Canadian Electric Utilities Gas Utilities and Infrastructure Other Electric Utilities Other Inter Segment Eliminations Total For the year ended Dec...

AI summary This document presents the consolidated financial statements for various utility segments, including operating revenues, costs, and capital expenditures. It details financial figures for Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, and other segments, while highlighting inter-segment eliminations and the impact on financial reporting.

TEC Capital Cost Recovery for Early Retired Assets Represents the remaining net book value of Big Bend Power Station Units 1 through 3 and smart meter assets that were early retired. The balance earns a rate of return as permitted by the F...

AI summary The text discusses the recovery of capital costs for early retired assets, including Big Bend Power Station Units 1-3 and smart meters, over 15 years starting 2022, with approval from the FPSC.

GBPC Storm Restoration: This asset includes storm restoration costs incurred by GBPC related to Hurricane Dorian in 2020 and Hurricane Matthew in 2016. The Hurricane Matthew asset was fully amortized at the end of 2024.

AI summary The GBPC Storm Restoration asset covers costs from Hurricane Matthew (2016) and Hurricane Dorian (2020). The Matthew asset was fully amortized by 2024, indicating long-term capital expenditures related to storm recovery efforts.

TEC Capital Cost Recovery for Retired Polk Unit 1 Components This regulatory asset relates to the remaining net book value of certain components of Polk Unit 1 that were early retired on December 31, 2024. The balance earns a rate of retur...

AI summary The document discusses the recovery of capital costs for retired components of Polk Unit 1, with a remaining net book value earning a permitted rate of return. Recovery occurs through base rates over an 11-year period starting January 1, 2025, as approved by the FPSC.

FAM Asset Sale: On April 17, 2024, the NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted to...

AI summary The NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia on April 17, 2024. The transaction closed on April 30, 2024, with funds remitted to NSPI. NSPI collects amortization and financing costs from customers over 10 years, remitting quarterly payments to Invest Nova Scotia.

Base Rates: On September 14, 2023, NMGC filed a rate case with the NMPRC for new base rates. On March 1, 2024, NMGC filed with the NMPRC a settlement with the support of all parties in the case for an increase of $30 million USD in annual...

AI summary NMGC filed a rate case with NMPRC, leading to a $30 million USD annual revenue increase and maintaining ROE at 9.375%. The settlement, approved on July 25, 2024, covers operating costs, capital investments, and a new billing system. NMGC withdrew its request for a regulatory asset related to a 2022 LNG storage application.

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 The table presents Other Income, Net for 2025 and 2024, including AFUDC, interest income, pension cost recovery, FX gains/losses, and gains/losses from asset sales. Key items include a $4 million gain on Emera's LIL minority interest sale (net of costs) and a $2 million charge for NMGC wind-down costs. Total net income was $165 million in 2025 versus $203 million in 2024.

Authorized: Unlimited number of non-par value common shares. 2025 2024 Issued and outstanding: millions of shares millions of dollars millions of shares millions of dollars Balance, December 31, 2024 295.94 $ 9,042 284.12 $ 8,462 Conversio...

AI summary The document outlines the issued and outstanding shares of common stock for the years 2024 and 2025, including details on conversions, issuances under the ATM program, and other share-related activities. The data shows an increase in both the number of shares and their value over the period.

The Company's net investment in direct finance and sales-type leases primarily relates to Brunswick Pipeline, Seacoast, compressed natural gas ("CNG") stations, a renewable natural gas ("RNG") facility and heat pumps. The Company manages i...

AI summary The company's net investment includes direct finance and sales-type leases related to infrastructure like the Brunswick Pipeline, CNG stations, and heat pumps. Risk management involves maintenance of the pipeline, and customers have options to purchase leased assets at the end of the lease term.

Florida Electric Utility On March 6, 2025, TEC issued $600 million USD of senior unsecured notes that bear interest at 5.15 per cent with a maturity date of March 1, 2035.

AI summary On March 6, 2025, TEC issued $600 million USD in senior unsecured notes with a 5.15% interest rate and a 2035 maturity date. This financing activity reflects a capital-raising effort tied to long-term debt obligations.

millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Purchased power (1) $ 413 $ 422 $ 411 $ 459 $ 451 $ 5,941 $ 8,097 Transportation (2) (3) 780 588 478 413 370 2,954 5,583 Fuel, gas supply and storage (4) 674 239 159 156 38 59 1...

AI summary The table outlines various financial obligations in millions of dollars from 2026 to Thereafter, including purchased power, transportation, fuel, capital projects, and other expenses. It also mentions that contractual obligations related to NMGC will be transferred to the buyer upon completion of the sale.

Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...

AI summary Emera faces liquidity and capital market risks, including reliance on capital markets for financing, sensitivity to credit ratings, and exposure from stock-based compensation. Disruptions in capital markets, interest rate changes, and downgraded credit ratings could hinder growth plans and increase borrowing costs. Equity derivatives are used to mitigate earnings volatility from stock-based compensation.

Interest Rate Risk: Emera utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. For Emera's rate-regulated utilities, the cost of debt is a...

AI summary Emera uses fixed and floating rate debt, exposing it to interest rate risk. Regulatory ROE correlates with interest rates, lagging due to the regulatory process. Rising rates may harm project viability and share price, while credit rating changes could further impact interest rates. Share price may underperform in rising rate environments.

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.

Chart of Accounts for Nova Scotia Power Inc. (Consolidated) As of December 31, 2025

AI summary The document presents the Chart of Accounts for Nova Scotia Power Inc. as of December 31, 2025, outlining the financial structure and categorization of assets, liabilities, equity, revenues, and expenses for the company.

ACCOUNT SEGMENT Account Segment Value Account Segment Description 180810 LT REG ASSET DERIV INSTR TREASURY 180850 LT REG ASSET FCR DEFERRAL 181550 LT REG ASSET UARB TAX DEFERRAL 181700 LT REG ASSET STORM RIDER 181800 LT REG ASSET STORM RES...

AI summary The text presents a list of account segments and their descriptions, including long-term and short-term financial assets, liabilities, and accrued expenses related to various operations and obligations.

- 2) Allowance for materials and supplies is the ending balance as at December 31. Gross Book Value, Asset Additions Accet Transfero Accet Datiromento Total Bassaya baginning Asset Retirements Depreciation & Salvage & Cost of Reclassify to...

AI summary The text outlines the ending balance for the Allowance for materials and supplies as of December 31 and presents a table detailing asset additions, retirements, depreciation, and other adjustments for various plant categories, including Distribution Plant, Gas Turbine Generation Plant, and General Plant.

2025 ARO Settled by Capital Item

AI summary The document discusses the 2025 ARO (Asset Retirement Obligations) settled by capital item, focusing on financial and regulatory aspects related to long-term obligations and capital expenditures.

2025 Cost of Removal (COR) Incurred by Capital Item $ millions CI Number Funding Project Description COR Incurred 10621-S001-311 TUC - Routine Equipment Replacement 0.0 10645-S001-351 POT - Routine Equipment Replacement - 0.0 10673-S001-34...

AI summary The document presents a table listing the 2025 Cost of Removal (COR) incurred by various capital items across different funding projects in Nova Scotia. The data includes project descriptions and the corresponding COR amounts, with most entries showing minimal or no costs incurred.

REDACTED 2025 Annual Financial Statements Attachment 1 Page 5 of 6 December 31 millions of Canadian dollars 2025 Unregulated Retained Earnings Unregulated retained earnings - December 31, 2024 $200.8 Unregulated compensation (including dir...

AI summary This document presents the unregulated retained earnings and related financial details for the 2025 Annual Financial Statements. It includes figures for compensation, interest, depreciation, and various adjustments, as well as property, plant, and equipment values for unregulated assets. The data also reflects income tax adjustments, related party liabilities, and equity issuance related to an investment.

Nova Scotia Power Inc. Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 141 $ 160 Adjustments to reconcile net income to net cash provided by operating act...

AI summary This section presents the consolidated cash flow statements for Nova Scotia Power Inc. for the years 2025 and 2024, detailing cash flows from operating, investing, and financing activities, as well as changes in cash and supplemental disclosures.

Property, Plant and Equipment Property, plant, and equipment ("PP&E") is recorded at original cost, including allowance for funds used during construction ("AFUDC") or capitalized interest, net of contributions received in aid of construct...

AI summary The document outlines the accounting treatment for Property, Plant, and Equipment (PP&E), including original cost recording, AFUDC/capitalized interest, and handling of additions, replacements, and retirements. When regulated PP&E units are replaced, their costs are charged to accumulated depreciation without recognizing gains or losses.

2025 Annual Financial Statements Attachment 2 Page 12 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The cost of PP&E represents the original cost of materials, contracted services, direct labour, AFUDC for regulated property or interes...

AI summary The text outlines capitalization rules for PP&E, depreciation methods using straight-line based on service lives approved by NSEB, and amortization of intangible assets. It notes the 2025 depreciation study awaiting approval and the last approved study from 2010.

Allowance for Funds Used During Construction AFUDC represents the cost of financing regulated construction projects and is capitalized to the cost of PP&E until the asset is operational. The Company includes an equity cost component in AFU...

AI summary AFUDC represents the financing cost for regulated construction projects, capitalized as part of PP&E until operational. It includes equity and borrowed funds components, calculated via weighted average cost of capital approved by NSEB, and impacts financial statements through interest expense and other income adjustments.

Leases NSPI determines whether a contract contains a lease at inception by evaluating if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. NSPI has leases with inde...

AI summary NSPI classifies leases with IPPs and utilities as finance leases, not recording them on balance sheets due to variable payments. Operating leases use present value calculations for liabilities and right-of-use assets. Sales-type and direct finance leases involve specific accounting treatments for net investments and unearned income.

Government Grants The Company accounts for government grants by applying a grant accounting model by analogy to International Accounting Standards ("IAS") 20 , Accounting for Government Grants and Disclosure of Government Assistance . A gr...

AI summary The Company accounts for government grants under IAS 20, with 2025 grants totaling $74M for decarbonization projects. Key grants include Natural Resources Canada's SREP program funding three 50 MW battery storage systems, with $45M received in 2025. Grants reduce PP&E carrying amounts for asset-related support.

Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project to create a reliability intertie between Nova Sc...

AI summary The Wasoqonatl transmission line project, a reliability intertie between Nova Scotia and New Brunswick, is led by NSPI, CIB, and WMA through WTI. NSPI holds 50% indirect voting interest in WTI, with NSEB approving a $685 million capital investment, including AFUDC, for the project.

13. PROPERTY, PLANT AND EQUIPMENT As at December 31 December 31 millions of dollars 2025 2024 Generation $ 4,010 $ 3,873 Transmission 1,495 1,276 Distribution 2,329 2,186 General plant and other 928 863 Total cost 8,762 8,198 Less: Accumul...

AI summary The document provides a detailed breakdown of Property, Plant, and Equipment (PP&E) as of December 31, 2025, and 2024, including categories such as Generation, Transmission, Distribution, and General plant and other. It also notes the accumulated depreciation and construction work in progress, along with the AFUDC capitalized for the year ended December 31, 2025.

2025 Annual Financial Statements Attachment 2 Page 37 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) For the year ended December 31, 2025, NSPI issued 0.04 million common shares (2024 – 0.04 million common shares) to Emera for total con...

AI summary NSPI issued 0.04 million common shares to Emera in 2025 for $0.4 million and returned $340 million of capital to Emera without reducing outstanding shares. As of December 31, 2025, NSPI owed $185 million to Emera and affiliates, up from $150 million in 2024.

19. LONG-TERM DEBT NSPI's long-term debt includes the issuances detailed below. Medium-term notes are issued under trust indentures at fixed interest rates and are unsecured unless noted below. Included are certain bankers' acceptances and...

AI summary NSPI's long-term debt includes medium-term notes, trust indentures, and certain bankers' acceptances/commercial paper. The debt structure details fixed interest rates, unsecured obligations, and the company's intent to refinance short-term instruments over one year.

Credit Facilities NSPI can issue up to $800 million under its commercial paper program, of which the full amount outstanding is backed by the Company's operating credit facility. The amount of commercial paper issued results in an equal am...

AI summary NSPI's credit facilities include a $800 million commercial paper program backed by its operating credit facility, a revolving credit facility for the BESS Project, and extendable notes until 2056. These arrangements outline financial mechanisms for project funding and liquidity management.

Calculation as at Instrument Financial Covenant Requirement/Restriction December 31, 2025 Syndicated credit facility Debt to capital ratio Less than or equal to 0.70:1 0.68:1 Long-Term Debt Maturities

AI summary The document outlines a financial covenant under a syndicated credit facility, specifying a debt-to-capital ratio requirement of less than or equal to 0.70:1, with a reported ratio of 0.68:1 as of December 31, 2025. It also includes a section on long-term debt maturities.

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.

C. Environment NSPI's activities are subject to a broad range of federal, provincial, regional and local laws and environmental regulations, designed to protect, restore and enhance the quality of the environment including air, water and s...

AI summary NSPI faces environmental regulations requiring capital investment for renewable energy integration, with estimated costs of $81M in 2026 and $111M from 2027-2030. Compliance is material, and failure could harm the company. No significant compliance issues were found in audits as of December 31, 2025.

23. REDEEMABLE PREFERRED STOCK On August 30, 2024, NSPI authorized 800,000 redeemable preferred shares and issued 400,000 redeemable preferred shares ("Series A") at a par value of $25 per share to finance the Battery Energy Storage System...

AI summary NSPI authorized and issued 400,000 redeemable preferred shares (Series A) at $25 par value to finance the Battery Energy Storage System Project. As of December 31, 2025, these shares are recorded as a liability on consolidated balance sheets with dividends classified as interest expense.

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.

Operations NSPI's earnings are most directly impacted by the range of ROE and capital structure approved by the NSEB, the prudent management and approved recovery of operating costs, electric sales volumes, weather, the approved recovery o...

AI summary NSPI's 2026 earnings are projected to be at the low end of its allowed ROE range, with higher earnings than 2025 due to factors like approved base rates, sales volume growth, and capital investment. Capital spending is expected to reach $720M, focused on power system reliability. The GRA and settlement agreement are referenced for further details.

Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project which will create a reliability intertie between...

AI summary The Wasoqonatl Transmission Line project, a reliability intertie between Nova Scotia and New Brunswick, was announced by NSPI, CIB, and WMA. The project is owned by WTI, a regulated utility under a limited partnership. NSPI holds a 50% indirect voting interest, and NSEB approved a $685 million capital investment, including AFUDC, for the intertie.

Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025, and December 31, 2024, including increases in assets like receivables and property, plant and equipment, and changes in liabilities such as bank indebtedness and short-term debt. These changes are attributed to factors like timing of billing, capital investments, and regulatory deferrals.

2025 Annual Financial Statements Attachment 3 Page 11 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI's future liquidity and capital needs will be predominantly for working capital requirements, ongoing rate base investment and debt...

AI summary NSPI anticipates $720 million in 2026 investments for working capital, rate base expansion, and debt servicing, primarily for power system reliability. It has $800 million in syndicated revolving credit and a $500 million nonrevolving term facility, with $222 million available as of December 31, 2025.

Cash Flow used in Investing Activities Net cash used in investing activities increased $148 million to $631 million in 2025 compared to $483 million in 2024 due to higher capital investment.

AI summary Net cash used in investing activities rose $148 million to $631 million in 2025 from $483 million in 2024, driven by increased capital investment.

Share Capital For the year ended December 31, 2025, the Company issued 0.04 million (2024 – 0.04 million) common shares to Emera for total consideration of $0.4 million (2024 – $0.4 million) and returned $340 million of capital (2024 − nil...

AI summary NSPI issued 0.04 million common shares to Emera for $0.4 million in 2025 and returned $340 million of capital without reducing outstanding shares. NSPI had 173.5 million common shares issued and outstanding as of December 31, 2025.

2025 Annual Financial Statements Attachment 3 Page 21 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Company will be required to manage the impacts of these ongoing changes on customer demand and rates, while maintaining and integra...

AI summary The company faces challenges in managing energy transition impacts, capital investment needs, and external factors affecting resiliency, renewable integration, and regulatory responses. Risks include insurance limitations for carbon assets, litigation from environmental harms, and climate change impacts on operations, reputation, and capital access.

Liquidity and Capital Market Risk Liquidity risk relates to NSPI's ability to ensure sufficient funds are available to meet its financial obligations. NSPI's access to capital and cost of borrowing is subject to several risk factors, inclu...

AI summary NSPI faces liquidity and capital market risks, including dependency on credit ratings, market disruptions, and interest rate fluctuations. Credit rating downgrades could increase borrowing costs, while climate-related events and regulatory factors may impact financial stability. Capital access challenges could hinder operations and financing.

Interest Rate Risk: NSPI utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. The allowed range of ROE will generally follow the direction...

AI summary NSPI uses fixed and floating rate debt, exposing it to interest rate risk. ROE adjustments follow interest rates with a lag, and credit ratings affect interest rates. Inflation may increase operating and capital costs beyond customer rate revenues.

2025 Annual Financial Statements Attachment 5 Page 1 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED)

AI summary The document is a redacted page from the 2025 Annual Financial Statements Attachment 5, which contains confidential information. It appears to be part of a regulatory or financial disclosure process involving Nova Scotia Power or a related entity.

Capital Investment NSPI's 2025 Capital Plan was approved by the NSEB on August 19, 2025. NSP submitted a Capital Plan for 2026 to the NSEB for approval on December 12, 2025. Capital investment for 2025, including AFUDC, was $712 million (2...

AI summary NSPI's 2025 Capital Plan was approved by the NSEB in August 2025, with a capital investment of $712 million. A 2026 Capital Plan was submitted for approval in December 2025. The rate base includes net utility plant and regulated assets, with depreciation rates reviewed periodically and a 2025 depreciation study awaiting approval.

2025 Annual Financial Statements Attachment 5 Page 9 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI currently estimates its environmental capital spending, excluding AFUDC, based upon present environmental laws and regulations will...

AI summary NSPI estimates its environmental capital spending, excluding AFUDC, to be approximately $81 million in fiscal 2026 and $111 million from 2027 to 2030, based on current environmental laws and regulations. These estimates do not account for potential future changes in laws or policies related to climate change and emissions.

FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating Fuel Costs from customers through annual fuel rate adjustments. Differences between prudently incurred Fuel Costs and amounts recovered from customers through electrici...

AI summary NSPI has a NSEB approved FAM allowing recovery of fluctuating fuel costs from customers. In 2024, a $117 million FAM asset was sold to Invest Nova Scotia, with amortization and financing costs collected from customers over 10 years. A federal loan guarantee of $500 million was also finalized to help manage unrecovered energy costs.

2025 Annual Financial Statements Attachment 5 Page 11 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) that was required during the several years of delay in the Muskrat Falls hydroelectricity project. On November 29, 2024, the NSEB appro...

AI summary The NSEB approved NSPML's application to issue debt and transfer proceeds to NSPI as a refund, with an increased annual assessment charge to recover costs over 28 years. Proceeds were applied against the FAM regulatory asset balance, and NSPI's 2025 fuel rates were increased to service the debt.

Maritime Link 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 September 25, 2024, NSPI and NSPML filed application...

AI summary NSPI has a long-term contractual obligation to pay NSPML for using the Maritime Link. In 2024, NSPI and NSPML filed applications related to a federal loan guarantee, and NSPML received approval to collect up to $201 million from NSPI for Maritime Link costs, with monthly holdbacks starting in 2022.

BESS Project On June 13, 2024, the NSEB approved $238 million of capital investment, including AFUDC, for the BESS Project. The project is comprised of three 50 MW, four-hour battery facilities. As of December 31, 2025, two facilities are...

AI summary The NSEB approved $238 million in capital investment for the BESS Project, which includes three 50 MW battery facilities. As of December 31, 2025, two facilities are operational, with the third expected to be in service in 2026.

Clean Energy Transition As part of its IRP process, NSPI filed an updated IRP Action Plan and Roadmap with the NSEB in August of 2023. On October 11, 2023, the Province released the 2030 Clean Power Plan which outlines the Province's strat...

AI summary NSPI has filed an updated IRP Action Plan and Roadmap with the NSEB, aligning with the Province's 2030 Clean Power Plan. The plan includes adding 1,000 MW of onshore wind and 300 MW of solar capacity, requiring grid investments, energy storage, and thermal fleet upgrades. NSPI is collaborating with federal and provincial governments to determine funding and minimize customer costs.

Credit Facilities In July 2022, NSPI entered into a $400 million non-revolving term facility set to mature July 15, 2024. The credit agreement contains customary representation and warranties, events of default and financial and other cove...

AI summary NSPI has engaged in several credit facility arrangements over recent years, including a $400 million non-revolving term facility in 2022, which was amended in 2024 to reduce the amount and extend the maturity. Additional credit facilities were established to finance the BESS Project and general corporate purposes, with specific terms and maturity dates outlined.

Note Issuances On March 24, 2023, NSPI completed a $300 million unsecured note issuance that bears interest at a rate of 4.95 per cent and has a maturity date of November 15, 2032. On the same date, NSPI completed a $200 million unsecured...

AI summary NSPI issued two unsecured notes totaling $500 million in March 2023, with maturities in 2032 and 2053. The proceeds were used to refinance existing debt, fund capital expenditures, and cover general corporate purposes.

Operations Capital investment for 2026, including AFUDC, is forecasted to be approximately $720 million (2025 actual – $712 million). NSPI is primarily investing in capital projects required to support power system reliability and reliable...

AI summary NSPI is forecasting capital investment for 2026, including AFUDC, to be approximately $720 million, primarily to support power system reliability and customer service.

CAPITAL STRUCTURE The authorized capital of NSPI consists of an unlimited number of common shares, all without nominal or par value, and an unlimited number of first preferred shares and second preferred shares. All of the outstanding comm...

AI summary The authorized capital of Nova Scotia Power Inc. (NSPI) includes unlimited common shares, first preferred shares, and second preferred shares, all without nominal or par value. All outstanding common shares are fully paid and non-assessable, and no preferred shares are currently outstanding.

RETURN OF CAPITAL NSPI returned $340 million of capital (2024 — nil and in 2023 — nil) to Emera without a reduction in the amount of common shares outstanding.

AI summary NSPI returned $340 million of capital to Emera in 2024, with no reduction in the number of common shares outstanding, and no such return occurred in 2023.

APPENDIX A – DEFINITIONS For convenience, terms used throughout this 2025 AIF of Nova Scotia Power Incorporated shall have the following meanings: - "AFUDC" means allowance for funds used during construction and represents the cost of fina...

AI summary This appendix provides definitions of key terms used in the 2025 Annual Information Form of Nova Scotia Power Incorporated. Terms include financial and regulatory concepts, programs, and legal references relevant to the company's operations and regulatory filings.

Visible Growth Plan $20B capital investment plan through 2030 committed to renewable integration, grid reliability, and modernization

AI summary Nova Scotia Power Incorporated has committed a $20 billion capital investment plan through 2030, focused on renewable energy integration, grid reliability, and modernization efforts.

5–7% average adjusted EPS (2) growth target through 2030 (3) - (1) Based on 2025 adjusted net income attributable to common shareholders ("adjusted net income"), excluding Corporate costs of $380 million. Adjusted net income is a non-GAAP...

AI summary The text outlines an average adjusted EPS growth target through 2030, based on 2025 adjusted net income excluding corporate costs of $380 million. Adjusted EPS and rate base growth forecasts use 2024 as the base year. These are non-GAAP measures, with details provided in Emera's Q4 2025 MD&A.

2025 Financial Highlights $3.49 Annual adjusted EPS (1) 72% of adjusted net income (1), excluding Corporate costs, comes from Florida (2) $3.6B capital invested in 2025, leading to an 8% annual increase in rate base 4.3% dividend yield (3)...

AI summary The 2025 Financial Highlights show an annual adjusted EPS of $3.49, with 72% of adjusted net income coming from Florida. Capital invested in 2025 increased the rate base by 8% annually, and the dividend yield is 4.3% based on the share price of $67.64 as of December 31, 2025.

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.

Introduction and Strategic Overview Emera (TSX/NYSE: EMA) is a North American provider of energy services, owning and operating a portfolio of cost-of-service, rate-regulated electric and gas utilities. Its largest operations are in Florid...

AI summary Emera is a North American energy services provider with regulated utilities in Florida, Atlantic Canada, New Mexico, and the Caribbean. It focuses on operational efficiency and capital investments to support earnings and dividends. Its capital investment plan from 2026 to 2030 is expected to be around $20 billion, with 80% allocated to Florida due to customer growth and system needs.

Shareholder information As at millions of dollars 2026 2027 2028 2029 2030 Total Capital investment plan $ 4,020 $ 3,730 $ 4,140 $ 4,180 $ 4,330 $ 20,400 Average consolidated rate base US operations $ 23,180 $ 25,100 $ 27,140 $ 29,300 $ 31...

AI summary The table outlines the capital investment plan and average consolidated rate base for the years 2026 to 2030, showing figures for US and Canadian operations. The capital investment plan excludes NMGC, with further details available in the 'Other Developments' section.

Emera's capital investment plan will be funded primarily through internally generated cash flows, debt raised at the operating company level consistent with regulated capital structures, equity issuances, and proceeds from the anticipated...

AI summary Emera's capital investment plan will be funded through internally generated cash flows, debt, equity issuances, and proceeds from the NMGC transaction. The company emphasizes maintaining investment-grade credit ratings and has a history of increasing dividends per share annually.

2025: In Q2 2025, Emera recognized a non-cash impairment charge of $75 million ($71 million after-tax, or $0.24 per common share) related to the remeasurement of the NMGC disposal group to fair value ("FV") less costs to sell. This was rec...

AI summary In Q2 2025, Emera recognized a non-cash impairment charge of $75 million related to the remeasurement of the NMGC disposal group to fair value less costs to sell, impacting the Other Segment.

2024: In Q3 2024, Emera recognized non-cash goodwill and other impairment charges of $221 million ($206 million after-tax, or $0.72 per common share) related to the NMGC reporting unit. These charges were recorded in "Impairment charges" o...

AI summary In Q3 2024, Emera recorded non-cash impairment and goodwill charges of $221 million related to the NMGC reporting unit, as well as a $24 million loss in estimated transaction costs for the pending sale of NMGC. These charges were included in various financial statement line items.

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.

2025 Annual Financial Statements Attachment 6 Page 22 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...

AI summary In February 2025, the FPSC approved TEC's recovery of $466 million USD in costs related to hurricanes and interest over 18 months. A motion for reconsideration was denied, and an appeal was filed. Capital investment for the Florida Electric Utility segment is expected to reach $1.8 billion USD in 2026.

2025 Annual Financial Statements Attachment 6 Page 23 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...

AI summary In 2026, capital investment is expected to be $720 million, with NSPI focusing on projects to support power system reliability and customer service. This aligns with the consolidated financial statements and management's discussion and analysis.

NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. NSPML's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated...

AI summary NSPML's equity earnings depend on its approved ROE and operational performance. The Maritime Link, operational since 2018, enables energy transmission between Newfoundland and Nova Scotia. In 2026, NSPML requested the termination of a $4 million monthly holdback on cost recovery, with a final decision pending. Capital investment is projected to be around $40 million in 2026.

PGS With $3.3 billion USD of assets and approximately 523,000 customers, the PGS system includes approximately 25,600 kilometres of natural gas mains and 14,800 kilometres of service lines. Natural gas throughput (the amount of gas deliver...

AI summary PGS anticipates earning within its allowed ROE range in 2026, with USD earnings expected to be higher than 2025 due to new base rates and customer growth. A rate case was filed with the FPSC, leading to a $67 million USD increase in 2026 annual base rates, with additional adjustments in 2027 and 2028. Capital investment is expected to be approximately $445 million USD in 2026.

Other Electric Utilities Other Electric Utilities includes Emera (Caribbean) Incorporated ("ECI"), a holding company with regulated electric utilities. ECI's regulated utilities include vertically integrated regulated electric utilities of...

AI summary Other Electric Utilities includes Emera (Caribbean) Incorporated, which operates regulated electric utilities in Barbados, Grand Bahama, and St. Lucia. USD earnings are expected to remain consistent in 2026, with capital investment projected at $110 million, focused on cleaner and more efficient generation sources, including renewables and battery storage.

Other The Other segment includes business operations that in a normal year are below the required threshold for reporting as separate segments; and corporate expense and revenue items that are not directly allocated to Emera's subsidiaries...

AI summary The Other segment includes corporate functions and business operations such as EES and a joint venture in Bear Swamp. Earnings from EES depend on market conditions, and the segment is expected to have a net loss consistent with 2025. Capital investment for 2026 is projected at $10 million.

Significant changes in the Consolidated Balance Sheets between December 31, 2024 and December 31, 2025 include: millions of dollars Total Increase (Decrease) Explanation of Other Increase (Decrease) Assets held for sale (current and long-t...

AI summary The document outlines significant changes in the Consolidated Balance Sheets between December 31, 2024, and December 31, 2025. Key changes include a decrease in assets held for sale due to impairment charges and FX translation effects, an increase in PP&E due to capital additions, a decrease in goodwill from FX translation, and an increase in short-term and long-term debt due to new issuances and credit facility utilization.

Liquidity and Capital Resources The Company generates internally sourced cash from its various regulated and non-regulated energy investments. Utility customer bases are diversified by both sales volumes and revenues among customer classes...

AI summary Emera generates cash from regulated and non-regulated energy investments and is focused on maintaining liquidity for debt servicing, capital investments, and growth. A $20 billion capital investment plan is in place for 2026 through 2030, subject to regulatory approval. Emera plans to fund these needs through operations, debt, equity, and the sale of NMGC.

2025 Annual Financial Statements Attachment 6 Page 39 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...

AI summary Emera Inc. has total committed credit facilities of $2.8 billion CAD and $2.1 billion USD, with significant undrawn amounts available. The company holds a cash balance of $355 million, including $6 million in assets held for sale related to the pending sale of NMGC as of December 31, 2025.

Cash Flow Used in Investing Activities Net cash used in investing activities increased $1,264 million to $3,482 million for the year ended December 31, 2025, compared to $2,218 million in 2024. The increase was due to the proceeds of $927...

AI summary Net cash used in investing activities increased to $3,482 million in 2025, driven by higher capital investment and proceeds from the sale of LIL in 2024, partially offset by asset disposals. Capital expenditures for 2025, including AFUDC, were $3,594 million, with significant spending in Florida Electric Utility and Canadian Electric Utilities.

Cash Flow from Financing Activities Net cash provided by financing activities increased $2,659 million to $1,841 million for the year ended December 31, 2025, compared to net cash used in financing activities of $818 million in 2024. The i...

AI summary Net cash provided by financing activities increased significantly in 2025 compared to 2024 due to higher net borrowings, proceeds from debt issuances, and retirement of long-term debt at various entities, partially offset by lower proceeds from long-term debt and issuance of common stock.

Working Capital As at December 31, 2025, Emera's cash and cash equivalents were $349 million (2024 – $196 million) and Emera's investment in non-cash working capital was $926 million (2024 – $224 million). Of the cash and cash equivalents...

AI summary As of December 31, 2025, Emera's cash and cash equivalents increased to $349 million, with $279 million held by foreign subsidiaries. Investment in non-cash working capital also rose significantly to $926 million. Some funds are in countries with exchange controls that may affect repatriation.

As at December 31, 2025, contractual commitments for each of the next five years and in aggregate thereafter consisted of the following: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Long-term debt principal (1)(2) $ 1,297...

AI summary The text outlines contractual commitments for the next five years and beyond as of December 31, 2025, including long-term debt, interest payments, purchased power, transportation, and other obligations. These commitments are detailed in a table, with a note that obligations related to NMGC will be transferred to the buyer upon completion of the sale.

The 2026 forecasted consolidated capital investments, including AFUDC, are as follows: millions of dollars Florida Electric Utility Canadian Electric Utilities Gas Utilities and Infrastructure Other Electric Utilities Other Total Generatio...

AI summary The 2026 forecasted consolidated capital investments, including AFUDC, are outlined in a table detailing investments across various segments, including generation, transmission, distribution, and other utilities, with specific figures for Florida Electric Utility, Canadian Electric Utilities, Gas Utilities, and Other Electric Utilities.

Guaranteed Debt As of December 31, 2025, the Company had $3.70 billion USD (2024 – $2.95 billion USD) senior unsecured notes and junior subordinated notes (collectively referred to as the "US Notes") outstanding. The US Notes are fully and...

AI summary As of December 31, 2025, the Company had $3.70 billion USD in senior unsecured and junior subordinated notes (US Notes) outstanding. These notes are guaranteed by Emera and EUSHI, while other subsidiaries (Non-Guarantor Subsidiaries) do not provide guarantees. The financial information for the Obligor Group is presented in compliance with Rule 13-01 of Regulation S-X.

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.

Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...

AI summary Emera faces liquidity and capital markets risks, including the potential inability to access cost-effective capital, disruptions in financial markets, and changes in credit ratings. These risks could affect the company's ability to fund its growth plan and increase borrowing costs. Credit rating changes could also impact derivative instruments and the company's common share price through stock-based compensation.

Interest Rate Risk: Emera utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. For Emera's rate-regulated utilities, the cost of debt is a...

AI summary Emera uses a mix of fixed and floating rate debt, exposing it to interest rate risk. Regulatory ROE is influenced by interest rates, with potential impacts on project viability and share price performance, especially in rising rate environments. Credit ratings also affect interest rates.

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.

Project Development and Land Use Rights Risk The Company's capital plan includes significant investment in generation, infrastructure modernization, and customer-focused technologies. Any projects planned or currently in construction, part...

AI summary The Company's capital plan involves significant investments in generation, infrastructure, and customer technologies, which are subject to risks such as schedule delays, cost overruns, and regulatory approval uncertainties. Projects may also face challenges related to land use rights, especially on lands owned by third parties or Indigenous Peoples, potentially leading to material costs or project infeasibility.

Accumulated Reserve – Cost of Removal TEC, PGS, NMGC and NSPI recognize non-ARO costs of removal ("COR") as regulatory liabilities. The non-ARO COR represents estimated funds received from customers through depreciation rates to cover futu...

AI summary TEC, PGS, NMGC, and NSPI recognize non-ARO costs of removal as regulatory liabilities, with an accumulated reserve of $729 million as of December 31, 2025, used to cover future costs of removing PP&E upon retirement.

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.

Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 1,090 $ 568 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation...

AI summary This section presents the consolidated statements of cash flows for the years ended December 31, 2025 and 2024, detailing cash flows from operating, investing, and financing activities, as well as changes in cash and cash equivalents.

PP&E PP&E is recorded at original cost, including AFUDC or capitalized interest, net of contributions received in aid of construction. The cost of additions, including betterments and replacements of units, are included in "PP&E" on the Co...

AI summary The document discusses the accounting treatment of Property, Plant, and Equipment (PP&E) for Emera's subsidiaries, including the inclusion of costs such as AFUDC, removal and disposal costs, and the treatment of depreciation and amortization. It also outlines the conditions under which expenditures are capitalized versus expensed.

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.

2025 Annual Financial Statements Attachment 6 Page 79 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...

AI summary Emera recorded a $210 million goodwill impairment charge for the NMGC reporting unit in Q3 2024 due to the agreement to sell NMGC. In Q4 2025, qualitative assessments for PGS and TEC indicated that their fair value likely exceeded carrying amounts, so no further quantitative testing was needed.

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.

Government Grants The Company accounts for government grants by applying a grant accounting model by analogy to International Accounting Standards ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance . A gra...

AI summary The Company applies IAS 20 for accounting government grants, with 2025 grants totaling $80 million for capital projects related to decarbonization and environmental compliance.

Pending Sale of NMGC On August 5, 2024, Emera entered into an agreement to sell its indirect wholly-owned subsidiary NMGC for a total enterprise value of approximately $1.3 billion USD, consisting of cash proceeds and the transfer of debt...

AI summary Emera entered into an agreement to sell NMGC for approximately $1.3 billion USD. The transaction resulted in goodwill impairment charges and additional losses due to the difference between the expected transaction proceeds and the carrying value of the assets. Impairment charges and transaction costs were recorded in Q3 2024 and Q2 2025.

2025 Annual Financial Statements Attachment 6 Page 88 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...

AI summary This document contains the 2025 Annual Financial Statements of Emera, including Management's Discussion and Analysis, Consolidated Financial Statements, and other related sections such as leadership information and shareholder details.

TEC Capital Cost Recovery for Early Retired Assets Represents the remaining net book value of Big Bend Power Station Units 1 through 3 and smart meter assets that were early retired. The balance earns a rate of return as permitted by the F...

AI summary The document discusses the recovery of capital costs for early retired assets, including the Big Bend Power Station Units 1 through 3 and smart meter assets. These costs are being recovered over 15 years starting in January 2022 as a separate line item on customer bills, as permitted by the FPSC.

GBPC Storm Restoration: This asset includes storm restoration costs incurred by GBPC related to Hurricane Dorian in 2020 and Hurricane Matthew in 2016. The Hurricane Matthew asset was fully amortized at the end of 2024.

AI summary The document discusses storm restoration costs incurred by GBPC for Hurricane Dorian (2020) and Hurricane Matthew (2016), noting that the Hurricane Matthew asset was fully amortized by the end of 2024.

TEC Capital Cost Recovery for Retired Polk Unit 1 Components This regulatory asset relates to the remaining net book value of certain components of Polk Unit 1 that were early retired on December 31, 2024. The balance earns a rate of retur...

AI summary This regulatory asset pertains to the remaining net book value of retired components of Polk Unit 1, which were early retired on December 31, 2024. The balance earns a rate of return as permitted by the FPSC and is being recovered through base rates over an 11-year period starting January 1, 2025.

Hurricane Fiona: NSPI has NSEB approved regulatory assets for the deferred recognition of $25 million in incremental operating costs incurred during the Hurricane Fiona storm restoration efforts, and $10 million of undepreciated costs rela...

AI summary NSPI has received approval from NSEB to defer and amortize $35 million in costs related to Hurricane Fiona, including $25 million in incremental operating costs and $10 million in undepreciated costs from retired assets, over a 10-year period starting July 1, 2024.

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.

2025 Annual Financial Statements Attachment 6 Page 101 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder info...

AI summary The document outlines the 2025 Annual Financial Statements of Emera, including share reserves under various compensation plans. As of December 31, 2025, Emera had reserved 5 million shares under the senior management stock option plan, 1 million under the employee common share purchase plan, and 20 million under the DRIP. The issuance of shares is restricted to 10% of outstanding shares, and Emera was in compliance with this requirement.

19. Receivables and Other Current Assets As at millions of dollars December 31 2025 December 31 2024 Customer accounts receivable – billed $ 1,265 $ 834 Customer accounts receivable – unbilled 400 342 Capitalized transportation capacity (1...

AI summary The section presents a table showing the amounts of receivables and other current assets for December 31, 2025, and December 31, 2024. Key items include customer accounts receivable, capitalized transportation capacity, and prepaid expenses. Capitalized transportation capacity is explained as the value of transportation/storage received under asset management agreements, amortized over the contract term.

The Company's net investment in direct finance and sales-type leases primarily relates to Brunswick Pipeline, Seacoast, compressed natural gas ("CNG") stations, a renewable natural gas ("RNG") facility and heat pumps. The Company manages i...

AI summary The Company's net investment includes direct finance and sales-type leases related to infrastructure like the Brunswick Pipeline, CNG stations, RNG facilities, and heat pumps. Risk management involves routine maintenance, and customers can purchase leased assets at the end of the lease term for a nominal fee or through a make-whole payment. Unearned income from these leases is recognized over the lease term and recorded as operating revenues and other income.

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.

millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Purchased power (1) $ 413 $ 422 $ 411 $ 459 $ 451 $ 5,941 $ 8,097 Transportation (2) (3) 780 588 478 413 370 2,954 5,583 Fuel, gas supply and storage (4) 674 239 159 156 38 59 1...

AI summary The table outlines projected expenses in millions of dollars for various categories from 2026 to 2030, including purchased power, transportation, fuel, capital projects, and other expenses. It also mentions that contractual obligations related to NMGC will be transferred to the buyer upon completion of the sale.

Liquidity and Capital Markets Risk Liquidity risk relates to Emera's ability to ensure sufficient funds are available to meet its financial obligations. Emera's access to capital and cost of borrowing is subject to several risk factors, in...

AI summary The text discusses liquidity and capital markets risks facing Emera, including challenges related to access to capital, cost of borrowing, credit ratings, and the impact of financial market disruptions. It highlights the potential adverse effects on Emera's growth plan and the importance of credit ratings in determining financing terms and costs.

2025 Annual Financial Statements Attachment 6 Page 128 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder info...

AI summary The document outlines financial guarantees, letters of credit, and indemnities provided by Emera and NSPI. These include guarantees for subsidiaries, standby letters of credit for credit extended to the company, and an indemnity related to potential future tax changes. The amounts and terms of these financial instruments are detailed.

29. Cumulative Preferred Stock

AI summary The section titled '29. Cumulative Preferred Stock' introduces a topic related to financial instruments, specifically cumulative preferred stock, which is a type of equity security that has a claim on a company's assets and earnings.

Chart of Accounts for Nova Scotia Power Inc. (Consolidated) As of December 31, 2025

AI summary The text presents the consolidated chart of accounts for Nova Scotia Power Inc. as of December 31, 2025, outlining financial categories and classifications relevant to the company's operations.

- 2) Allowance for materials and supplies is the ending balance as at December 31. No. Gross Book Value, Asset Additions Accest Transfers Accet Betiremente Total Bassaya baginning Asset Retirements Depreciation & Salvage & Cost of Reclassi...

AI summary The text refers to the allowance for materials and supplies as of December 31, followed by a table that appears to outline asset management details, including gross book value, asset additions, retirements, depreciation, and adjustments related to regulated plant.

$ millions Funding Project Number Funding Project Description ARO Settled C0060749 2024 Padmount Replacment Program (0.3) 23120-T003-820 PROVINCIAL-TRANS SUBSTATION PRIMARY (0.1) O0000370 Substation Ops Converted Projects (0.1) 23361-D008-...

AI summary This chunk outlines various funding projects and their associated costs, including replacement programs and infrastructure work. It also provides details on the 2025 Cost of Removal Continuity, including depreciation, salvage amounts, and settled costs for different asset categories. A correction is noted regarding the salvage amounts collected for Distribution assets, which will be addressed in the 2026 Financial Statements.

2025 Cost of Removal (COR) Incurred by Capital Item $ millions CI Number Funding Project Description COR Incurred 10621-S001-311 TUC - Routine Equipment Replacement 0.0 10645-S001-351 POT - Routine Equipment Replacement - 0.0 10673-S001-34...

AI summary The document presents a table listing the 2025 Cost of Removal (COR) incurred by various capital items across different projects in Nova Scotia. The table includes project descriptions, CI numbers, and the COR amounts, which are mostly minimal or zero, indicating routine equipment replacement and infrastructure maintenance activities.

540,542,229 Corporation's name Nova Scotia Power Incorporated Bus siness number Tax year end Year Month Day 1193 1 4938 RC0001 2025-12-31 Balance sheet information Account Description GI FI Current year Prior year Assets — Total current as...

AI summary The document presents a balance sheet for Nova Scotia Power Incorporated as of December 31, 2025, detailing assets, liabilities, and shareholder equity. It includes figures for current and long-term assets, liabilities, and retained earnings, reflecting the company's financial position.

REDACTED 2025 Annual Financial Statements Additional Submissions Attachment 1 Page 30 of 182 NSPI - 2025 - T2.225 2026 Docusign Envelope ID: 3004E7B2-D1E3-8CBB-8136-5E1E1F24E654 11931 4938 RC0001 ¬ Part 2B – Capitalized IFE in the cost of...

AI summary The document provides a section from the 2025 Annual Financial Statements of NSPI, focusing on capitalized IFE in the cost of depreciable assets. It includes a table for reporting IFE in the cost of depreciable assets, with instructions for completing the table based on specific accounting guidelines.

ova Scotia Power Incorporated 11931 4938 RC0001 1 2 3 4 5 6 Row Name of CFA Amounts determined for variable A in the definition of IFE for the affiliate Proportion determined under subsection 18.2(2) Amount G in Part 2K % Denied amount und...

AI summary The text provides a table with various financial and tax-related calculations, including amounts determined for variable A in the definition of IFE, proportions under subsection 18.2(2), denied amounts, and the corporation's share of denied amounts. The table includes references to tax years, percentages, and specific tax-related clauses.

Capital Cost Allowance (CCA) 2025-12-31 2026 Docusign Envelope ID: 3004E7B2-D1E3-8CBB-8136-5E1E1F24E654 NSPI - 2025 - T2.225 Agence du revenu du Canada

AI summary The text refers to a document related to the Capital Cost Allowance (CCA) submitted by NSPI on December 31, 2025, with a Docusign Envelope ID and a reference to the Canada Revenue Agency.

4. 15. 8 Amount from column 6 that is repaid during the year for a property, subsequent to its disposition Note 7 222 2 Amount from column 6 that is assistance received or receivable during the year for a property, subsequent to its dispos...

AI summary The text presents a table with financial data related to property acquisitions, depreciation, and adjustments, including details on repaid amounts, assistance received, and cost of acquisitions categorized by type and year. Notes and totals are included for reference.

Nova Scotia Power Incorporated 11931 4938 RC0001 UCC adjustment for AIIP and 15 12 10 UCC (column 2 plus column 3 plus or minus column 9) Proceeds of dispositions Description Class Note 8 10,533 19 207 0 1,450,355 64,394 26 LM6000 unit #4...

AI summary The text appears to be a financial or accounting table related to Nova Scotia Power Incorporated, including terms such as 'UCC adjustment,' 'proceeds of dispositions,' and references to units such as 'LM6000 unit #4' and 'LM6000 unit #5.' The content appears to involve financial reporting and asset management.

2026 Docusign Envelope ID: 3004E7B2-D1E3-8CBB-8136-5E1E1F24E654 NSPI - 2025 - T2.225 • N REMOVED)\nubmissions Attachment 1 Page 60 of 1 32 UCC adjustment for AllP and property acquired before 2025 that is included in classes 54 to 56 (colu...

AI summary The document contains a table related to the UCC adjustment for property acquired before 2025, included in classes 54 to 56, with calculations involving column 12 multiplied by a relevant factor. The context is a regulatory proceeding involving Nova Scotia Power Inc.

ed by you. Note 6: Include all amounts you have repaid during the year for any legally required repayment, made after the disposition of a corresponding property, of: Note 7: before the disposition. assistance that would have otherwise inc...

AI summary The text discusses the inclusion of legally required repayments, adjustments to the Uniform Capitalization (UCC) for certain property acquisitions, and adjustments to proceeds of disposition for zero-emission passenger vehicles. It also outlines specific conditions for including or excluding amounts related to capital cost, asset disposition, and government assistance.

unless certain conditions are met - Note 16: If the tax year is shorter than 365 days, prorate the CCA claim. Some classes of property do not have to be prorated. See Guide T4012 for more information For property in Class 10.1 disposed of...

AI summary The text outlines rules for prorating the Capital Cost Allowance (CCA) when the tax year is shorter than 365 days and specifies limitations on the CCA deduction for property in Class 10.1 disposed of during the year. It also mentions the determination of maximum first-year allowances for AIP and RIIP.

If amount A is negative, enter "0" on lines 115 and 120. If amount B is negative, enter "0" on lines 140 and 145. Amount transferred on amalgamation or windup of subsidiary Amount transferred other than on amalgamation or windup of subsidi...

AI summary The text provides instructions for entering values on specific lines of a tax form based on whether certain amounts are negative. It outlines calculations involving transfers, depletion claims, and regulatory references, including lines related to income tax and capital cost allowances.

Information requested in this part must be provided for the 20 largest ($) capital expenditures claimed in the year. Identify the project numbers for which each SR&ED capital property was used. 780 782 786 Name of SR&ED capital property ac...

AI summary The text requests information on the 20 largest capital expenditures claimed in the year, specifically identifying the project numbers for which each SR&ED capital property was used. A table is provided for this purpose, with columns for the name of the capital property, expenditure amount, and project numbers.

Financial Outlook We expect NSPI's key credit metrics will remain supportive of the current credit ratings. The Company's key credit metrics recovered during 2024, following weakness in 2023, and continued to remain relatively stable durin...

AI summary NSPI's credit metrics are expected to remain stable, supported by debt reduction and fuel cost recoveries, despite high capital expenditures. A securitization deal in 2026 is anticipated to provide funding and reduce debt. NSPI's parent company, Emera, has historically supported the company with flexible dividend policies.

Comprehensive Financial Risk Assessment (CFRA) NSPI's CFRA score of BBB is expected to remain relatively stable within the current credit rating category, despite some volatility and medium-term pressure on the key credit metrics given the...

AI summary NSPI's Comprehensive Financial Risk Assessment (CFRA) score of BBB is expected to remain stable, despite medium-term pressure from high capital expenditures and energy transition risks related to coal-based generation assets.

Limited Access to Equity Markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, we expect Emera to continue to support the Company's capex program with a flexible dividends policy and equity...

AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, so Emera is expected to support NSPI's capex program through flexible dividends and equity injections as needed.

band of 8.75% to 9.25%; - Maximum allowed equity unchanged at 40%; - A decarbonization deferral account to recover undepreciated thermal asset value and unrecovered decommissioning costs; and - Storm rider for NSPI to have the option to ap...

AI summary The document outlines various regulatory decisions and mechanisms related to Nova Scotia Power Inc. (NSPI), including a decarbonization deferral account, storm rider approvals, capital expenditure plans, and a fuel-adjustment mechanism. These measures aim to manage costs and ensure financial stability.

NON-CONFIDENTIAL 1 Request IR-7: 2 3 (a) Please explain the circumstances and considerations that led to NS Power's $340 4 million return of capital to Emera in 2025. In the response, please describe the 5 business purpose of the transacti...

AI summary NS Power returned $340 million in capital to Emera in 2025 as part of its capital structure management. The transaction was based on projected equity balance requirements and financing strategy. The company's regulated equity thickness was 34.8% in 2025, below the approved 40%, due to insufficient revenue from approved rates to support higher equity.

Request IR-7: - a) Please explain the circumstances and considerations that led to NS Power's $340 million return of capital to Emera in 2025. In the response, please describe the business purpose of the transaction, the determination of t...

AI summary The request seeks an explanation of NS Power's $340 million return of capital to Emera in 2025, including the business rationale, financial considerations, and how it fits into NS Power's financial position. It also asks for an explanation of why NS Power's actual equity thickness of 34.8% as of December 31, 2025, is below the approved 40%.