N-12025 Annual Financial Statements - Redacted
62 passages
Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. The rates are designed to recover prudently incurred costs of providing the regulated product...
AI summary Regulatory accounting ensures rates established by third-party regulators recover prudently incurred costs and allow reasonable returns on invested capital. This framework aligns with principles of cost recovery and revenue requirement, ensuring fair compensation for service providers while protecting consumer interests.
5. REGULATORY MATTERS The Company is a public utility as defined in the Act and is subject to regulation under the Act by the NSEB. The Act gives the NSEB supervisory powers over NSPI's operations and expenditures. Electricity rates for NS...
AI summary NSPI operates as a regulated public utility under the NSEB, adhering to a cost-of-service model that recovers prudently incurred costs and provides an 8.75%-9.25% return on equity. Rates require NSEB approval and are not subject to annual reviews but may be adjusted via hearings.
Regulatory Assets and Liabilities Regulatory assets represent prudently incurred costs that have been deferred because it is probable that they will be recovered through future rates collected from customers. Management believes that exist...
AI summary The document explains that regulatory assets are deferred costs that are expected to be recovered through future customer rates, and regulatory liabilities are obligations to refund customers or reduce future revenues. Recovery and settlement are based on NSEB approval or regulatory precedent.
Storm Rider: NSPI has a NSEB approved storm rider for each of 2023, 2024 and 2025, which gives NSPI the option to apply to the NSEB for recovery of costs if major storm restoration expense exceeds approximately $10 million in a given year....
AI summary NSPI has storm riders approved by the NSEB for 2023, 2024, and 2025, allowing recovery of major storm restoration costs exceeding $10 million. Applications for deferral and recovery are made in the year following the incurred cost, with recovery beginning the year after the application.
NSPI has a contractual obligation to pay NSPML, a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On December 23, 2025, NSPML received an Interim Order from the NSEB a...
AI summary NSPI has a long-term contractual obligation to pay NSPML for the use of the Maritime Link. An interim order from the NSEB allows NSPML to collect up to $198.7 million from NSPI in 2026, with a monthly holdback of up to $4 million.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI operates under a cost-of-service regulatory model requiring approvals for rate changes and capital investments. Regulatory delays, cost recovery challenges, and political shifts could cause material adverse effects, including valuation impairments and service reliability risks. Regulatory frameworks influence rates, ROE, capital structures, and cost recovery mechanisms.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company is exposed to Nova Scotia's macroeconomic conditions, which affect electricity demand and financial results. Adverse economic changes and inflation could hinder customers' ability to afford rate increases, leading to credit risks, policy shifts, and challenges in recovering costs and regulatory assets.
Working Capital As at December 31, 2025, NSPI's working capital increased to $567 million from $468 million in 2024 primarily due to changes in accounts receivable, changes in income taxes receivable, and changes in other current liabiliti...
AI summary NSPI's working capital increased to $567 million as of December 31, 2025, driven by changes in accounts receivable, income taxes receivable, and other current liabilities, partially offset by accounts payable and cash collateral on derivatives. Future liquidity needs will focus on working capital, capital investment, dividends, and debt servicing, supported by internal cash flows and credit facilities.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI faces regulatory risks from frameworks governing rates, cost recovery, ROE, and capital investments. Regulatory delays or disallowed costs could lead to material adverse effects. Uncertainty around IESO Nova Scotia and environmental legislation changes adds further risk. Regulatory processes require approvals and public hearings, with uncertain outcomes.
2025 Annual Financial Statements Attachment 3 Page 20 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Severe weather events or conditions such as hurricanes, floods, storm surge, tornadoes, droughts, fires, extreme temperatures, snow or...
AI summary The document outlines risks from severe weather events to the Company's infrastructure, including physical damage, service outages, and increased costs. These risks could lead to revenue loss, higher insurance and repair costs, and potential regulatory cost recovery challenges. Hydroelectric generation is also vulnerable to changing precipitation and temperature patterns.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company is exposed to Nova Scotia's macroeconomic conditions, which affect electricity demand and financial results. Adverse economic changes and inflation could hinder customers' ability to afford rate increases, leading to credit risks, policy shifts, and challenges in recovering costs and regulatory assets.
2025 Annual Financial Statements Attachment 3 Page 28 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The occurrence of significant uninsured claims, claims in excess of the insurance coverage limits, or claims that fall within a signifi...
AI summary The text highlights risks from significant uninsured claims or self-insured retentions, noting that without regulatory recovery, these could result in a Material Adverse Effect on financial stability.
Q4 2025 compared to Q4 2024 Q4 2025 net income decreased by $49 million compared to Q4 2024. The decrease is due to decreased income tax recovery and increased OM&G expenses. Income tax recovery decreased due to the utilization of tax loss...
AI summary Q4 2025 net income fell by $49M compared to Q4 2024 due to lower income tax recovery (linked to tax loss carryforwards and depreciation adjustments) and higher OM&G expenses (driven by storm costs and cybersecurity incident expenses).
Environmental Matters NSPI is subject to environmental laws and regulations as set by both the Government and the Province. The Company continues to work with both the Government and the Province to comply with these laws and regulations t...
AI summary NSPI must comply with environmental laws set by Nova Scotia's Government and Province, collaborating to maximize emission control efficiency and minimize customer costs. The company expects prudently incurred emission reduction costs to be recoverable under its regulatory framework.
2022 GRA and Settlement Agreement On February 2, 2023, the NSEB approved the GRA Settlement Agreement between NSPI, key customer representatives and participating interest groups. This resulted in average customer rate increases of 6.9 per...
AI summary The 2022 GRA Settlement Agreement approved by NSEB on February 2, 2023, resulted in 6.9% and 6.5% average rate increases in 2023 and 2024, respectively. It established storm and DSM riders for cost recovery, with the storm rider enabling recovery of major storm restoration costs exceeding $10M annually, and the DSM rider allowing NSPI to recover DSM program costs via a regulatory asset/liability.
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 38-year contractual obligation to pay NSPML for the Maritime Link. In 2024, NSPI and NSPML filed applications regarding a federal loan guarantee, with NSPML receiving NSEB approval to collect up to $201 million from NSPI for cost recovery, including a monthly holdback mechanism. Funds from NSPML's debt issuance were applied to the FAM regulatory asset balance.
2025 Annual Financial Statements Attachment 5 Page 12 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) assessment and a supplemental assessment of $43 million as part of the repayment of the federal loan guarantee. On December 23, 2025, N...
AI summary NSPML received an interim order from NSEB to collect $199 million from NSPI for Maritime Link costs in 2026, with a $4 million monthly holdback. A $43 million supplemental assessment was also made for federal loan guarantee repayment.
Hurricane Fiona On June 27, 2024, the NSEB approved the deferred recognition of $25 million in incremental operating costs incurred during the Hurricane Fiona storm restoration efforts in September 2022. Following the NSEB approval, the $2...
AI summary The NSEB approved deferring $25 million in Hurricane Fiona-related operating costs and reclassifying $10 million of retired asset costs to 'Regulatory assets', with both amounts to be amortized over 10 years starting July 1, 2024. This decision impacts NSPI's balance sheet classifications and long-term cost recovery mechanisms.
FAM Audit Pursuant to the FAM Plan of Administration, NSPI's fuel costs are subject to independent audit. On February 21, 2024, the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021 were publicl...
AI summary NSPI's FAM audit by NSEB revealed disallowances of $3M (2020-2021) and $1M (2022-2023), recorded in 'FAM and other deferrals' with interest expenses, and returned to customers. Financial details are in note 5 of NSPI's 2025 consolidated statements.
Energy Efficiency Legislation In April 2014, the Province announced energy efficiency legislation to remove a previous charge for conservation and efficiency programs from power bills of customers in the Province effective January 1, 2015....
AI summary In 2014, Nova Scotia removed a conservation charge from power bills and mandated NSPI to purchase efficiency programs from EfficiencyOne. The NSEB approved a $35M DSM deferral recoverable over eight years, fully repaid by 2023. A 2022 budget of $173M was reduced by $4M due to EfficiencyOne's accumulated underspend from 2020-2022.
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 Emera recognized non-cash impairment charges and transaction costs related to the pending sale of NMGC in Q3 2024, impacting financial statements.
Operating Revenues For Q4 2025, operating revenues increased $243 million compared to Q4 2024 and, excluding decreased MTM losses of $19 million, increased $224 million. The increase was due to higher storm cost recoveries at TEC and NSPI...
AI summary Operating revenues rose $243M in Q4 2025 (vs. Q4 2024) and $1.576B annually, driven by storm cost recoveries at TEC/NSPI, new base rates, fuel cost recoveries, and currency effects. Exclusions include MTM losses/gains adjustments and OM&G offsets.
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.
Environmental Legislation and Regulations NSPI is subject to environmental laws and regulations set by both the Government of Canada and the Province of Nova Scotia (the "Province"). NSPI continues to work with both levels of government to...
AI summary NSPI must comply with federal and provincial environmental regulations, aiming to balance emission control efficiency with customer cost minimization. It anticipates recovering prudently incurred compliance costs through its regulatory framework but faces risks from non-compliance affecting operations and financial performance. Further details are in the 'Enterprise Risk and Risk Management' section.
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.
Highlights of net income changes are summarized in the following table: For the millions of USD Three months ended December 31 Year ended December 31 Contribution to consolidated net income – 2024 $ 83 $ 468 Increased operating revenues, p...
AI summary The text highlights changes in net income for 2024 and 2025, noting factors such as increased operating revenues due to storm cost recovery, new base rates, and higher regulatory deferral revenue, as well as increased fuel costs, OM&G expenses, and depreciation and amortization.
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 Emera's cash and cash equivalents increased from $196 million (2024) to $349 million (2025), with $279 million held by foreign subsidiaries subject to exchange controls. Non-cash working capital investments rose from $224 million to $926 million, with funds available for local operations unless repatriated.
Regulatory and Political Risk The Company's rate-regulated utilities and certain investments are subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key facto...
AI summary Emera's rate-regulated utilities face risks from complex regulatory frameworks affecting cost recovery, ROE, and capital investments. Failure to recover costs or obtain approvals could cause Material Adverse Effects, including valuation impairments. Regulatory lag between cost incurrence and rate approval further heightens these risks.
Weather Risk A Material Adverse Effect may arise from seasonal weather variations impacting energy consumption, as well as severe weather events, changing air temperatures, wildfires and other severe weather conditions that are expected to...
AI summary Weather variations and severe events pose risks to NSPI's operations, including asset damage, service outages, and financial impacts. These risks may lead to Material Adverse Effects through reduced revenues, increased costs, and potential regulatory recovery challenges. Hydroelectric generation is also vulnerable to changing precipitation and temperature patterns.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary Nova Scotia Power Incorporated (NSPI) is exposed to macroeconomic conditions affecting demand for electricity and natural gas. Economic factors like consumer income and inflation may impact customers' ability to afford rate increases, potentially leading to financial risks, regulatory challenges, and adverse policy shifts.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's fuel supply is vulnerable to global market fluctuations, including currency shifts, geopolitical risks, and natural disasters, which could drive up fuel prices. This may reduce rate affordability, increase cost recovery risks, and negatively affect customer consumption, potentially leading to a Material Adverse Effect.
Rate Regulation The rate-regulated accounting policies of Emera's rate-regulated subsidiaries and regulated equity investments are subject to examination and approval by their respective regulators and may differ from the accounting polici...
AI summary Emera's rate-regulated subsidiaries have accounting policies differing from non-rate-regulated entities due to regulatory decisions, impacting cost recovery and financial reporting. Regulatory assumptions influence asset/liability recognition, with $3,198M in regulatory assets and $1,669M in liabilities as of December 31, 2025.
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 (COR) as regulatory liabilities, accrued over asset lifetimes using regulator-approved depreciation studies. The 2025 accumulated reserve balance for COR was $729 million, reflecting estimated future costs to retire PP&E.
Accounting for the effects of rate regulation Description of the Matter As disclosed in note 7 of the consolidated financial statements, the Company has $3.2 billion in regulatory assets and $1.7 billion in regulatory liabilities. The Comp...
AI summary The Company holds $3.2 billion in regulatory assets and $1.7 billion in liabilities, with rate regulation impacting financial statements through PP&E, revenues, and taxes. Auditing these impacts involves assessing recovery probabilities, reviewing regulatory orders, and evaluating disclosures. Risks include partial cost disallowance or refunds if regulators do not fully approve cost recovery.
Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. Rates are designed to recover prudently incurred costs of providing regulated products or ser...
AI summary Regulatory accounting ensures rates set by independent third-party regulators recover prudently incurred costs and provide reasonable returns on invested capital. This applies when rates require regulatory approval, with further details in note 7.
7. Regulatory Assets and Liabilities Regulatory assets represent prudently incurred costs that have been deferred because it is probable they will be recovered through future rates or tolls collected from customers. Management believes exi...
AI summary This section explains that regulatory assets are deferred costs that are likely to be recovered through future rates, while regulatory liabilities are obligations to refund customers or reduce future revenues. Both are based on the probability of recovery or settlement, and adjustments are made to income when this probability changes.
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.
Pension and Post-Retirement Medical Plan This asset is primarily related to the deferred costs of pension and post-retirement benefits at TEC and PGS. Deferred costs of post-retirement benefits that are included in expense are recognized a...
AI summary The text discusses the deferred costs of pension and post-retirement benefits at TEC and PGS, which are recognized as cost of service for rate-making purposes by the FPSC and amortized over the remaining service life of plan participants.
Storm Cost Recovery Clauses
AI summary The document focuses on Storm Cost Recovery Clauses, likely addressing mechanisms for recovering costs incurred due to storm-related damages. It may involve discussions on regulatory frameworks, financial implications, and recovery processes within the energy sector.
TEC and PGS Storm Reserve: The storm reserve is for hurricanes and other named storms that cause significant damage to TEC and PGS systems. As allowed by the FPSC, if charges to the storm reserve exceed the storm reserve liability, the exc...
AI summary The storm reserve covers hurricane and named storm damage to TEC and PGS systems. Excess charges beyond liability are treated as regulatory assets, and TEC/PGS can petition FPSC for cost recovery over 12+ months via FPSC.
NSPI Storm Rider: NSPI has a NSEB approved storm rider for each of 2023, 2024 and 2025, which gives NSPI the option to apply to the NSEB for recovery of costs if major storm restoration expense exceeds approximately $10 million in a given...
AI summary NSPI has NSEB-approved storm riders for 2023–2025, allowing cost recovery if major storm restoration expenses exceed $10 million annually. Applications for deferral and recovery are submitted the year after expenses occur, with recovery starting the following year.
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.
NSPI FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered fr...
AI summary NSPI's Fuel Adjustment Mechanism (FAM), approved by the NSEB, allows recovery of fluctuating fuel costs through annual rate adjustments. Differences between prudently incurred costs and recovered amounts are deferred as regulatory assets/liabilities and adjusted in subsequent periods.
Cost Recovery Clauses These assets and liabilities are clauses and riders related to TEC and PGS. They are recovered or refunded through costrecovery mechanisms approved by the FPSC as applicable, on a dollar-for-dollar basis in a subseque...
AI summary Assets and liabilities related to TEC and PGS are recovered or refunded through FPSC-approved cost-recovery mechanisms on a dollar-for-dollar basis in subsequent periods.
Stranded Cost Recovery Due to decommissioning of a GBPC steam turbine in 2012, the GBPA approved recovery of a $21 million USD stranded cost through electricity rates; it is included in rate base and expected to be included in rates in fut...
AI summary The decommissioning of a GBPC steam turbine in 2012 led to a $21 million USD stranded cost, which the GBPA approved for recovery through electricity rates. This cost is included in the rate base and expected to be part of future rates.
Fuel Recovery and Other Cost Recovery Clauses: TEC has a fuel recovery clause approved by the FPSC, allowing the opportunity to recover fluctuating fuel expenses from customers through annual fuel rate adjustments. The FPSC annually approv...
AI summary TEC's fuel recovery clause allows recovery of fluctuating fuel costs via annual adjustments. A $138 million USD mid-course adjustment was approved by FPSC in May 2024, reflecting lower 2024 natural gas prices than previously projected. Differences between actual costs and recovered amounts are deferred as regulatory assets/liabilities.
Storm Reserve: On February 4, 2025, the FPSC approved TEC's petition for the recovery of $466 million USD for costs associated with Hurricane Idalia, Hurricane Debby, Hurricane Helene and Hurricane Milton and the associated interest to rep...
AI summary The FPSC approved TEC's petition to recover $466 million USD for hurricane-related costs (Hurricanes Idalia, Debby, Helene, and Milton) over an 18-month period, with a true-up mechanism to adjust the recovery amount. The funds aim to replenish the storm reserve.
NSPI NSPI is a public utility as defined in the Public Utilities Act of Nova Scotia ("Public Utilities Act") and is subject to regulation by the NSEB. The Public Utilities Act gives the NSEB supervisory powers over NSPI's operations and ex...
AI summary NSPI, a public utility under Nova Scotia's Public Utilities Act, is regulated by the NSEB using a cost-of-service model. Rates are set to recover prudently incurred costs and provide a reasonable return, with a 2024-2025 ROE range of 8.75% to 9.25%.
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.
Storm Rider: On December 2, 2024, the NSEB approved the recovery of $24 million of major storm restoration and incremental financing costs deferred to NSPI's storm rider in 2023 to be recovered over a 12-month period beginning on January 1...
AI summary The NSEB approved the recovery of $24 million in deferred storm restoration and incremental financing costs from NSPI's storm rider, to be recovered over 12 months starting January 1, 2025.
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. Key events include NSEB's 2025 interim order to collect $199M from NSPI for Maritime Link costs, NSPML's 2026 holdback termination application, and a $500M FLG debt agreement with Canada. NSPI approved $197M in 2025, including $158M for Maritime Link costs, with monthly holdbacks.
Recovery of Energy Conservation and Pipeline Replacement Programs: The FPSC annually approves a conservation charge that is intended to permit PGS to recover prudently incurred expenditures in developing and implementing cost effective ene...
AI summary The FPSC approves a conservation charge for PGS to recover costs of energy conservation programs and pipeline replacement, including accelerated replacement of obsolete plastic pipes until 2028.
BLPC BLPC is regulated by the Fair Trading Commission ("FTC"), under the Utilities Regulation (Procedural) Rules 2003. BLPC is regulated under a cost-of-service model, with rates set to recover prudently incurred costs of providing electri...
AI summary BLPC is regulated by the Fair Trading Commission under the Utilities Regulation (Procedural) Rules 2003, operating under a cost-of-service model where rates recover prudently incurred costs plus a 10% return on capital for 2024 and 2025. This structure ensures cost recovery while providing a regulated return on investment.
Fuel Recovery: BLPC's fuel costs flow through a fuel pass-through mechanism which provides opportunity to recover all prudently incurred fuel costs from customers in a timely manner. The calculation of the fuel charge is adjusted on a mont...
AI summary BLPC's fuel costs are recovered via a fuel pass-through mechanism, allowing timely recovery of prudently incurred costs. Fuel charges are calculated monthly and require FTC approval. This ensures alignment between actual costs and customer recoveries.
Non-Pension Benefit Plans There are no assets set aside to pay for most of the Company's non-pension benefit plans. As is common practice, postretirement health benefits are paid from general accounts as required. The exception to this is...
AI summary The Company lacks set-aside assets for most non-pension benefit plans, relying on general accounts for postretirement health benefits. The NMGC Retiree Medical Plan is an exception, being fully funded. This highlights potential financial risks and reliance on general operational funds for retiree benefits.
Superfund and Former Manufactured Gas Plant Sites Previously, TEC had been a potentially responsible party ("PRP") for certain superfund sites through its Tampa Electric and former PGS divisions, as well as for certain former manufactured...
AI summary TEC and its divisions, including Peoples Gas System, Inc., are PRPs for superfund and former manufactured gas plant sites, with estimated liabilities of $15 million (USD $11 million) as of December 31, 2025. These liabilities are reflected in long-term liabilities and are recoverable through customer rates. Remediation costs are expected to span many years, with uncertainties from PRP creditworthiness and regulatory changes.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The company faces risks from macroeconomic factors affecting demand for electricity and natural gas, with adverse economic conditions and inflation potentially leading to affordability challenges, credit risks, policy shifts, and difficulties in recovering costs and regulatory assets.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's fuel supply is vulnerable to global market risks, including currency fluctuations, geopolitical issues, and natural disasters, which could lead to higher fuel prices. This may result in decreased affordability, cost recovery challenges, and negative impacts on customer consumption, potentially causing a Material Adverse Effect.
30. Non-Controlling Interest in Subsidiaries As at millions of dollars December 31 2025 December 31 2024 Preferred shares of GBPC $ 14 $ 14 Preferred shares of GBPC
AI summary This section discusses the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, showing a value of $14 million in both years.
The following Account numbers were added in 2025: Account Number Account Description 175700 WASOQONATL TRANSMISSION 210200 SHORT TERM NOTES 211250 AP LTSA 213300 AP COMMON SHARE DEDUCTION 213350 AP PARKING PAYROLL DEDUCTION 213360 AP TRANS...
AI summary The document lists new account numbers and a line of business added in 2025, including accounts related to fuel adjustment mechanisms, demand-side management, and an executive stock option plan, along with the addition of an EV Charging line of business.
INTRODUCTION The Oracle account number consists of a twenty-nine digit "Accounting Flexfield" . The flexfield is made up of eight segments as shown below. CO Account Line of Bus Location CC Inter-Company Future Use Future Use XXX XXXXXX XX...
AI summary The document describes the structure of the Oracle account number, known as the 'Accounting Flexfield,' which is composed of eight segments used to categorize financial transactions for Nova Scotia Power and related entities. Each segment serves a specific purpose, such as identifying the company, account type, location, and cost center.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 412760 REG SMALL GEN CPP NON FUEL ENERGY OFF PEAK 412770 REG SMALL GEN CPP DSM COST RECOVERY RIDER 413110 REG RES NON FUEL DEMAND BASE 413120 REG RES NON FUEL ENERGY 413130...
AI summary The text presents a list of account segments with descriptions, including entries related to demand-side management (DSM) cost recovery riders, fuel adjustment mechanisms (FAM), time-of-use pricing, and accrued costs. These segments reflect various revenue and cost categories within the regulatory framework.
N-2Refiled Statements - NSPI - Redacted
60 passages
Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. The rates are designed to recover prudently incurred costs of providing the regulated product...
AI summary Regulatory accounting ensures rates established by independent regulators recover prudently incurred costs and allow reasonable returns on capital. This framework is critical for maintaining financial viability while ensuring fair cost recovery for regulated services.
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.
2025 Annual Financial Statements Attachment 2 Page 13 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI collects income taxes from customers based on income tax that is currently payable except for the deferred income taxes on certain...
AI summary NSPI manages deferred income taxes related to regulatory balances by recognizing regulatory assets/liabilities and grossing them up using income tax rates. Interest and penalties from unrecognized tax benefits are classified as 'Interest expense, net' and 'OM&G', respectively.
Inventory Fuel and materials inventories are valued at the lower of cost or net realizable value, unless evidence indicates that the weighted-average cost will be recovered in future customer rates.
AI summary Fuel and materials inventories are valued at the lower of cost or net realizable value, with an exception if evidence shows weighted-average costs will be recovered in future customer rates.
Cost of Removal The Company recognizes non-ARO costs of removal ("COR") as regulatory liabilities or regulatory assets. The non-ARO COR represents funds received from customers through depreciation rates to cover estimated future non-legal...
AI summary The Company accounts for non-ARO costs of removal as regulatory liabilities or assets, accrued over asset lifetimes based on NSEB-approved depreciation studies, using historical and projected data to estimate future costs.
Regulatory Assets and Liabilities Regulatory assets represent prudently incurred costs that have been deferred because it is probable that they will be recovered through future rates collected from customers. Management believes that exist...
AI summary The document explains that regulatory assets are deferred costs that are expected to be recovered through future customer rates, while regulatory liabilities are obligations to refund customers or reduce future revenues. Recovery and settlement depend on regulatory approvals and precedents.
FAM: NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered from c...
AI summary NSPI's Fuel Adjustment Mechanism (FAM) allows cost recovery of fluctuating fuel expenses, with annual adjustments and deferrals to regulatory assets/liabilities. The NSEB disallowed $1M plus interest in 2025 related to 2022-2023 audits, impacting Q4 2025 financials.
Storm Rider: NSPI has a NSEB approved storm rider for each of 2023, 2024 and 2025, which gives NSPI the option to apply to the NSEB for recovery of costs if major storm restoration expense exceeds approximately $10 million in a given year....
AI summary NSPI has NSEB approved storm riders for 2023, 2024, and 2025, allowing recovery of costs if major storm restoration expenses exceed $10 million in a given year. Applications for deferral and recovery are made in the year following the incurred cost, with recovery beginning the year after the application.
The change in the FAM regulatory (liability) asset balances consisted of the following: millions of dollars 2025 2024 FAM regulatory (liability) asset – Balance January 1 $ (56) $ 395 Total under (over) recovery of current period fuel cost...
AI summary The change in the Fuel Adjustment Mechanism (FAM) regulatory liability asset balances from 2024 to 2025 is detailed, showing a shift from a liability of $395 million to an asset of $102 million, driven by over-recovery of fuel costs and interest adjustments.
NSPI has a contractual obligation to pay NSPML, a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On December 23, 2025, NSPML received an Interim Order from the NSEB a...
AI summary NSPI is contractually obligated to pay NSPML for the use of the Maritime Link over 38 years. An Interim Order from the NSEB allows NSPML to collect up to $198.7 million from NSPI in 2026, with a monthly holdback of up to $4 million.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI operates under complex regulatory frameworks affecting rates, cost recovery, and return on equity. Regulatory delays and decisions may hinder cost recovery, impact service reliability, and lead to material adverse effects. Government policy shifts and regulatory instability further amplify risks to NSPI's operations and investments.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
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.
Environmental Legislation and Climate Change NSPI is subject to environmental laws and regulations as set by both the Government of Canada and the Nova Scotia Provincial Government (the "Province"). NSPI continues to work with both levels...
AI summary NSPI complies with federal and provincial environmental regulations, aiming to minimize customer costs while ensuring compliance. It anticipates recovering prudently incurred compliance costs through its regulatory framework. Risks include non-compliance impacts on operations and financial performance, with further details in the 'Enterprise Risk and Risk Management' section.
Working Capital As at December 31, 2025, NSPI's working capital increased to $567 million from $468 million in 2024 primarily due to changes in accounts receivable, changes in income taxes receivable, and changes in other current liabiliti...
AI summary NSPI's working capital increased to $567 million by December 31, 2025, driven by changes in accounts receivable and other liabilities, offset by accounts payable. Future liquidity will be used for capital investment, dividends, and debt servicing, financed through internal cash flows and credit facilities.
2025 Annual Financial Statements Attachment 3 Page 20 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Severe weather events or conditions such as hurricanes, floods, storm surge, tornadoes, droughts, fires, extreme temperatures, snow or...
AI summary The document outlines risks from severe weather events to Nova Scotia Power's assets, including infrastructure damage, service outages, and fuel supply disruptions. These risks could lead to financial impacts such as repair costs, insurance expenses, and regulatory recovery challenges, potentially causing material adverse effects. Hydroelectric generation is also vulnerable to changes in water availability.
Foreign Exchange Risk The Company is exposed to foreign currency exchange rate changes. NSPI may enter foreign exchange forward and swap contracts to limit exposure on certain foreign currency transactions such as fuel purchases and capita...
AI summary NSPI manages foreign exchange risk through forward contracts, covering 64% of 2026 USD fuel costs and 27% of 2027. The regulatory framework allows recovery of prudently incurred costs, including foreign exchange. No speculative derivatives are used.
General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...
AI summary The Company faces risks from Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases due to inflation and rising costs. Adverse economic shifts could lead to credit risks, policy changes, and challenges in recovering costs and regulatory assets.
Commodity Price Risk The Company's fuel supply is subject to commodity price risk. The Company's fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted te...
AI summary Nova Scotia Power Inc. (NSPI) faces commodity price risk due to global market volatility affecting fuel supply. Factors like geopolitical events and economic shifts could drive fuel prices upward, risking affordability, cost recovery, and customer consumption. NSPI aims to hedge 50-100% of 2026 fuel costs and 50-90% for 2027, adjusting quarterly to maintain stability.
Environmental Matters NSPI is subject to environmental laws and regulations as set by both the Government and the Province. The Company continues to work with both the Government and the Province to comply with these laws and regulations t...
AI summary NSPI must comply with environmental laws and regulations set by the Government and Province. The company aims to maximize emission control efficiency and minimize customer costs, with the expectation that prudently incurred costs for emission reductions will be recoverable under its regulatory framework.
Nova Scotia OBPS NSPI is a mandatory participant in Nova Scotia's OBPS carbon pricing program, which was effective January 1, 2023. Nova Scotia's OBPS implements GHG emissions performance standards for large industrial GHG emitters that va...
AI summary Nova Scotia Power Inc. (NSPI) is required to participate in Nova Scotia's Output-Based Pricing System (OBPS), which sets GHG emissions standards and imposes increasing carbon prices for excess emissions starting at $65 per tonne in 2023, rising to $170 per tonne by 2030. NSPI can recover costs incurred to comply with the program under its FAM.
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.
2022 GRA and Settlement Agreement On February 2, 2023, the NSEB approved the GRA Settlement Agreement between NSPI, key customer representatives and participating interest groups. This resulted in average customer rate increases of 6.9 per...
AI summary The NSEB approved a 2022 GRA Settlement Agreement, resulting in rate increases of 6.9% in 2023 and 6.5% in 2024. The agreement includes a storm rider for major storm restoration costs and a DSM rider for EfficiencyOne's programs, with cost recovery and deferral mechanisms managed through the NSEB's FAM process.
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.
Reconciliation of Net Income Attributable to Common Shareholders to Adjusted Net Income For the Three months ended December 31 Year ended December 31 millions of dollars (except per share amounts) 2025 2024 2025 2024 2023 Net income attrib...
AI summary The document presents a reconciliation of net income attributable to common shareholders to adjusted net income for Nova Scotia Power Inc. (NSPI) over various periods, including adjustments for items like MTM gains/losses, charges related to asset sales, and wind-down costs. Adjusted net income and EPS figures are also provided.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA For the Three months ended December 31 Year ended December 31 millions of dollars 2025 2024 2025 2024 2023 Net income (1) $ 87 $ 173 $ 1,090 $ 568 $ 1,045 Interest expense, net 268...
AI summary The reconciliation of Net Income to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2025, and 2024 is presented in a table. It includes adjustments such as interest expense, income tax, depreciation and amortization, and other items like MTM gains and losses, charges related to asset sales and impairments.
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.
Operating Revenues For Q4 2025, operating revenues increased $243 million compared to Q4 2024 and, excluding decreased MTM losses of $19 million, increased $224 million. The increase was due to higher storm cost recoveries at TEC and NSPI...
AI summary Operating revenues increased significantly in Q4 2025 and for the year ended December 31, 2025, driven by factors such as higher storm cost recoveries, new base rates, and favorable weather, among others.
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.
Net Income and Adjusted Net Income Net income attributable to common shareholders for Q4 2025, compared to Q4 2024, was favourably impacted by the $47 million decrease in MTM losses, the $26 million charges related to wind-down costs and c...
AI summary Net income for Q4 2025 was positively impacted by reduced MTM losses and wind-down costs from 2024, but negatively affected by tax benefits and valuation allowances. Adjusted net income decreased due to lower earnings at NSPI and NMGC, but increased earnings at EES partially offset this. For the full year 2025, net income was positively impacted by significant decreases in MTM losses and charges related to the sale of NMGC, but negatively affected by gains on the sale of LIL and tax benefits. Adjusted net income increased due to higher earnings at TEC, EES, and NMGC, partially offset by lower equity earnings from LIL and higher corporate costs.
Highlights of net income changes are summarized in the following table: For the millions of dollars Three months ended December 31 Year ended December 31 Contribution to consolidated net income – 2024 $ 77 $ 232 Increased operating revenue...
AI summary The text outlines key factors affecting net income changes for Nova Scotia Power Inc. (NSPI) in 2024 and 2025, including increased operating revenues, changes in fuel and storm cost recoveries, the impact of the 2024 NSPML Refund, and increased operational and maintenance costs due to storm and cybersecurity incidents.
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.
Regulatory and Political Risk The Company's rate-regulated utilities and certain investments are subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key facto...
AI summary Emera's rate-regulated utilities face regulatory and political risks due to complex legislative and regulatory frameworks. These frameworks affect rates, cost recovery, capital investments, and service reliability. Delays in regulatory approvals or disallowance of cost recovery could lead to material adverse effects.
Foreign Exchange Risk The Company is exposed to foreign currency exchange rate changes. Emera operates internationally, with a significant amount of the Company's net income earned outside of Canada. As such, Emera is exposed to movements...
AI summary Emera Inc. is exposed to foreign exchange risk due to its international operations and significant net income earned outside Canada. It manages this risk through matching USD debt and using FX derivatives for specific transactions, while the regulatory framework allows recovery of prudently incurred FX costs. Derivatives are not used for speculation or investment hedging.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company is exposed to macroeconomic conditions affecting demand for electricity and natural gas, which can impact its financial results. Adverse economic conditions and inflation may hinder customers' ability to afford rate increases, leading to potential credit risks, policy changes, and challenges in recovering costs.
Rate Regulation The rate-regulated accounting policies of Emera's rate-regulated subsidiaries and regulated equity investments are subject to examination and approval by their respective regulators and may differ from the accounting polici...
AI summary Emera's rate-regulated subsidiaries use accounting policies that differ from non-rate-regulated companies due to regulatory decisions on rate applications. These differences affect the timing of revenue and expense recognition. Regulatory accounting guidance is critical, as changes in assumptions can significantly impact financial reporting. As of December 31, 2025, the company reported $3,198 million in regulatory assets and $1,669 million in regulatory liabilities.
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.
Q2 2025 compared to Q2 2024 Q2 2025 net income attributable to common shareholders increased by $6 million primarily due to decreased MTM losses; increased earnings at TEC, EES, and NMGC; higher Corporate income tax recovery; and decreased...
AI summary Q2 2025 net income increased by $6 million due to decreased MTM losses, higher earnings at TEC, EES, and NMGC, and increased Corporate income tax recovery. This was partially offset by charges related to the pending sale of NMGC and lower earnings at NSPI.
Accounting for the effects of rate regulation Description of the Matter As disclosed in note 7 of the consolidated financial statements, the Company has $3.2 billion in regulatory assets and $1.7 billion in regulatory liabilities. The Comp...
AI summary The document discusses the accounting challenges related to rate regulation for the Company, which has significant regulatory assets and liabilities. Auditing these impacts is complex due to the uncertainty of future regulatory decisions and the need to assess the probability of cost recovery. The audit process involved reviewing regulatory orders, filings, and legal correspondence to evaluate the Company's financial disclosures.
Equity Method Investments: The carrying value of investments accounted for under the equity method are assessed for impairment by comparing the FV of these investments to their carrying values, if a FV assessment was completed, or by revie...
AI summary The carrying value of equity method investments is assessed for impairment by comparing their fair value to their carrying value or by reviewing for impairment indicators. No impairment was required in 2025 or 2024.
Stock-Based Compensation The Company has several stock-based compensation plans: a common share option plan for senior management; an employee common share purchase plan; a deferred share unit ("DSU") plan; a performance share unit ("PSU")...
AI summary The Company has multiple stock-based compensation plans, including options, share purchase, deferred, performance, and restricted share units. These are accounted for using the FV-based method, with costs recognized over the service period and re-measured at each reporting date for liability-based plans.
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.
7. Regulatory Assets and Liabilities Regulatory assets represent prudently incurred costs that have been deferred because it is probable they will be recovered through future rates or tolls collected from customers. Management believes exi...
AI summary This section explains regulatory assets and liabilities. Regulatory assets are deferred costs that are expected to be recovered through future rates, while regulatory liabilities are obligations to refund customers or reduce future revenues. Management assesses the probability of recovery or settlement to determine when these items are recognized in income.
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.
Storm Cost Recovery Clauses
AI summary The document discusses storm cost recovery clauses, which pertain to the mechanisms used to recover costs associated with damage caused by storms in the utility sector.
NSPI Storm Rider: NSPI has a NSEB approved storm rider for each of 2023, 2024 and 2025, which gives NSPI the option to apply to the NSEB for recovery of costs if major storm restoration expense exceeds approximately $10 million in a given...
AI summary NSPI has storm riders approved by the NSEB for 2023, 2024, and 2025, allowing cost recovery if major storm restoration expenses exceed $10 million in a year. Applications for deferral and recovery are made in the year following the expense, with recovery beginning the year after the application.
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.
NSPI FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered fr...
AI summary NSPI has a Fuel Adjustment Mechanism (FAM) approved by the NSEB, which allows it to recover fluctuating fuel costs from customers through annual rate adjustments. Differences between actual and recovered fuel costs are deferred as a regulatory asset or liability and reconciled in future periods.
Cost Recovery Clauses These assets and liabilities are clauses and riders related to TEC and PGS. They are recovered or refunded through costrecovery mechanisms approved by the FPSC as applicable, on a dollar-for-dollar basis in a subseque...
AI summary The text discusses cost recovery clauses related to TEC and PGS, which are recovered or refunded through mechanisms approved by the FPSC on a dollar-for-dollar basis in subsequent periods.
Stranded Cost Recovery Due to decommissioning of a GBPC steam turbine in 2012, the GBPA approved recovery of a $21 million USD stranded cost through electricity rates; it is included in rate base and expected to be included in rates in fut...
AI summary The decommissioning of a GBPC steam turbine in 2012 led to the approval of $21 million USD stranded cost recovery through electricity rates, which is included in the rate base and expected to be included in future rates.
Fuel Recovery and Other Cost Recovery Clauses: TEC has a fuel recovery clause approved by the FPSC, allowing the opportunity to recover fluctuating fuel expenses from customers through annual fuel rate adjustments. The FPSC annually approv...
AI summary TEC has a fuel recovery clause approved by the FPSC, allowing recovery of fluctuating fuel expenses through annual adjustments. On April 2, 2024, TEC requested a mid-course adjustment due to a $138 million USD reduction in natural gas prices. The FPSC approved the adjustment on May 7, 2024.
Storm Reserve: On February 4, 2025, the FPSC approved TEC's petition for the recovery of $466 million USD for costs associated with Hurricane Idalia, Hurricane Debby, Hurricane Helene and Hurricane Milton and the associated interest to rep...
AI summary The FPSC approved TEC's petition to recover $466 million USD in costs related to several hurricanes, to be replenished over an 18-month period with a true-up mechanism.
Federal Loan Guarantee ("FLG"): On September 24, 2024, the Government of Canada finalized an agreement with NSPI, NSPML and the Province of Nova Scotia (the "Province") on terms and conditions for a FLG of $500 million in debt to be issued...
AI summary The Government of Canada finalized a $500 million FLG agreement with NSPI, NSPML, and the Province of Nova Scotia to manage unrecovered costs from the Muskrat Falls project delay. The NSEB approved NSPML's debt issuance, and proceeds were transferred to NSPI to offset a portion of previous assessment payments and recover financing costs over 28 years.
Storm Rider: On December 2, 2024, the NSEB approved the recovery of $24 million of major storm restoration and incremental financing costs deferred to NSPI's storm rider in 2023 to be recovered over a 12-month period beginning on January 1...
AI summary The NSEB approved the recovery of $24 million in storm restoration and financing costs deferred to NSPI's storm rider in 2023. These costs will be recovered over 12 months starting January 1, 2025.
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 Equity earnings from the Maritime Link depend on NSPML's approved ROE and operational performance. NSPML has received orders from NSEB to collect funds from NSPI for cost recovery, with holdbacks in place. A FLG agreement was finalized in 2024, and the holdback mechanism was requested to be terminated in 2026.
US One Big Beautiful Bill Act ("OBBBA"): On July 4, 2025, the OBBBA was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017. It also includes si...
AI summary The OBBBA was signed into law on July 4, 2025, making permanent expired tax provisions from the 2017 Tax Cuts and Jobs Act and altering clean energy tax credits from the Inflation Reduction Act. IRS guidance was issued on August 15, 2025, regarding construction start dates for wind and solar projects. Emera's 2025 financial statements were not significantly affected by these changes.
Superfund and Former Manufactured Gas Plant Sites Previously, TEC had been a potentially responsible party ("PRP") for certain superfund sites through its Tampa Electric and former PGS divisions, as well as for certain former manufactured...
AI summary TEC and its former PGS division are PRPs for superfund and former manufactured gas plant sites, with an estimated $15 million in liability as of December 31, 2025. The liability is reflected in long-term liabilities and is recoverable through customer rates. The estimates assume other PRPs are creditworthy, though uncertainties remain.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company faces economic risks due to macroeconomic conditions affecting consumer demand for electricity and natural gas. These risks include challenges in recovering rate increases, credit and counterparty risks, and potential impacts from regulatory and legislative changes.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 412760 REG SMALL GEN CPP NON FUEL ENERGY OFF PEAK 412770 REG SMALL GEN CPP DSM COST RECOVERY RIDER 413110 REG RES NON FUEL DEMAND BASE 413120 REG RES NON FUEL ENERGY 413130...
AI summary The text presents a list of account segments related to regulatory accounting, including categories for demand-side management (DSM), fuel adjustment mechanisms (FAM), time-of-use pricing, and accrued costs. These segments reflect various revenue and cost recovery components within the regulatory framework.