Topic:"Depreciation Amortization" in M12835

Regulated Statements of Income For the Three months ended Year ended millions of Canadian dollars December 31 December 31 Actual Test Year Prior Year Actual Test Year Prior Year 2025 2024 2024 2025 2024 2024 Operating revenues $ 504 $ 468...

AI summary The document presents financial data for a regulated entity, including operating revenues, expenses, and net income across three months and year-ended periods. Key items include fuel costs, fuel adjustment mechanisms, demand-side management cost recovery riders, and depreciation. Net income for 2025 is reported as $32 million (three months) and $165 million (year-ended).

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 Income For the Year ended December 31 millions of dollars 2025 2024 Operating revenues (note 4) $ 1,944 $ 1,855 Operating expenses Fuel for generation and purchased power 1,065 509 Fuel adj...

AI summary Nova Scotia Power Inc.'s 2025 consolidated income statement shows increased operating revenues ($1,944M vs. $1,855M in 2024), driven by higher fuel costs ($1,065M vs. $509M) and a shift from fuel adjustment mechanism deferrals. Net income declined to $141M from $160M, with higher interest expenses ($172M vs. $168M) and lower income before taxes ($96M vs. $118M).

Use of Management Estimates The preparation of consolidated financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect the reported amounts of assets and liabilities at the date o...

AI summary The preparation of consolidated financial statements under USGAAP requires management estimates affecting assets, liabilities, revenues, and expenses. Key areas include rate-regulated assets, pension benefits, unbilled revenue, depreciation, income taxes, asset retirement obligations, and financial instrument valuations. Management evaluates these estimates based on historical data and current conditions.

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 Property, plant, and equipment (PP&E) is recorded at original cost, including AFUDC or capitalized interest, net of construction aid. Additions, betterments, and replacements are included in PP&E. Replaced or retired units are charged to accumulated depreciation without income recognition of 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 document outlines the accounting treatment for PP&E costs, including AFUDC, ARO, and overhead allocation. It explains depreciation methods (straight-line) and regulatory approval processes for depreciation studies by the NSEB. Intangible assets are amortized using similar methods, requiring regulatory approval for service life estimates.

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.'

Income Taxes and Investment Tax Credits NSPI recognizes deferred income tax assets and liabilities for the future tax consequences of events that have been included in the consolidated financial statements or income tax returns. Deferred i...

AI summary NSPI accounts for deferred income tax assets and liabilities based on differences between financial statement values and tax bases, using enacted tax rates. Investment tax credits reduce current income tax expense when utilized. Management assesses future taxable income to determine if deferred tax assets will be realized, with valuation allowances recorded if recovery is unlikely.

Asset Retirement Obligations An ARO is recognized if a legal obligation exists in connection with the future disposal or removal costs resulting from the permanent retirement, abandonment, or sale of a long-lived asset. A legal obligation...

AI summary The document defines Asset Retirement Obligations (ARO) as liabilities for future disposal or removal costs of long-lived assets, recognized under legal obligations. AROs are calculated using a credit-adjusted risk-free rate, with differences between regulatory and USGAAP accretion expenses deferred to PP&E. Conditional AROs, where fair value cannot be reasonably estimated, are not recognized in financial statements as of December 31, 2025 and 2024.

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 (COR) as regulatory liabilities or assets, funded by customer depreciation rates. These costs cover estimated future decommissioning expenses for PP&E, accrued over asset lifetimes based on NSEB-approved depreciation studies and historical data.

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

AI summary NSPI has received NSEB approval to defer $25 million in incremental storm restoration costs and $10 million in undepreciated retired asset costs from Hurricane Fiona. These regulatory assets will be amortized over 10 years starting July 1, 2024.

Considering all evidence regarding the utilization of the Company's deferred income tax assets, it has been determined that NSPI is more likely than not to realize all recorded deferred income tax assets, except for the denied interest and...

AI summary The document discusses the determination that NSPI is likely to realize its deferred income tax assets, except for certain items, with a valuation allowance of $43 million recorded as of December 31, 2025, related to denied interest and financing expenses, capital loss carryforward, and investment tax credits.

The following table provides details of the changes in unrecognized tax benefits for the years ended December 31 as follows: millions of dollars 2025 2024 Deferred income tax assets: Balance, January 1 $ 25 $ 22 Increases due to tax positi...

AI summary The text provides a table showing changes in deferred income tax assets for the years ended December 31, 2025 and 2024. It includes balances at the start and end of each year, as well as increases and decreases due to tax positions related to current and prior years.

8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Defined benefit pension and non-pension benefits millions of dollars 2025 2024 Balance, January 1 $ (8) $ (78) Amounts reclassified to AOCL 145 70 Balance, December 31 $ 137 $ (8) The reclas...

AI summary The table details changes in Accumulated Other Comprehensive Income (Loss) for 2025 and 2024, showing a balance increase from (78) to 137 million dollars. Reclassifications include amortization of actuarial losses and adjustments to pension liabilities, with 145 million dollars reclassified in 2025 compared to 70 million in 2024.

As a result of NSEB approved accounting policies and depreciation rates, NSPI recognizes or defers certain costs within "PP&E" that would not otherwise be recognized or deferred in the absence of rate regulation. Cumulative differences bet...

AI summary NSPI's accounting policies and depreciation rates, approved by NSEB, lead to the recognition or deferral of certain PP&E costs under rate regulation. Differences between rate-regulated and USGAAP accounting include depreciation rates, AFUDC, and overhead costs. The cumulative increase to accretion expense in accumulated depreciation was $1 million as of December 31, 2025.

The estimated useful lives, in years, for each major category of PP&E consist of the following: Generation 32 to 65 Generation - hydro 63 to 131 Generation - wind 25 Transmission 40 to 80 Distribution 14 to 65 General plant and other 5 to...

AI summary The document outlines the estimated useful lives for major categories of Property, Plant, and Equipment (PP&E), including generation, transmission, distribution, and general plant. It also provides the estimated average amortization expense for land rights and computer software over the next five years.

NSPI's net periodic benefit cost (recovery) as at December 31 included the following: millions of dollars 2025 2024 Defined benefit pension plan Non-pension benefit plans Defined benefit pension plan Non-pension benefit plans Service cost...

AI summary The document outlines NSPI's net periodic benefit cost (recovery) for 2025 and 2024, including service cost, interest cost, expected return on plan assets, and actuarial losses. The expected return on plan assets is calculated using a five-year smoothed asset value and recognized on a straight-line basis over five years.

The fair value of investments as at December 31, 2024, by asset category, are as follows: millions of dollars NAV Level 1 Level 2 Total Percentage Cash and cash equivalents $ - $ 12 $ - $ 12 1% Equity Securities: Canadian equity - 107 - 10...

AI summary The fair value of investments as of December 31, 2024, is detailed by asset category. The largest portion is in open-ended investments measured at NAV, accounting for 68% of the total, while cash and cash equivalents make up 1%.

Q3 2025 compared to Q3 2024 Q3 2025 net income decreased by $11 million compared to Q3 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q3 2025 net income decreased by $11 million compared to Q3 2024 due to increased OM&G expenses and higher depreciation/amortization from expanded PP&E. OM&G rose from higher transmission, distribution, and generation costs, partially offset by increased administrative overhead allocated to PP&E.

Q2 2025 compared to Q2 2024 Q2 2025 net income decreased by $12 million compared to Q2 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q2 2025 net income decreased by $12 million compared to Q2 2024 due to higher OM&G expenses and increased depreciation/amortization from expanded PP&E. OM&G rose from elevated power generation costs and the Cybersecurity Incident, partially offset by higher administrative overhead allocated to PP&E.

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.

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.

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 document presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA for Nova Scotia Power Inc. (NSPI) over three months and a year, showing EBITDA of $655M (2025) and Adjusted EBITDA of $793M (2025), with adjustments for items like MTM gains, sale-related charges, and wind-down costs.

Earnings Impact of MTM (Loss) Gain, After-Tax For Q4 2025, MTM loss, after-tax, decreased $47 million to $99 million compared to $146 million in Q4 2024, primarily due to a gain on Corporate FX hedges compared to a loss in the prior year....

AI summary In Q4 2025, MTM loss after-tax decreased by $47 million to $99 million compared to Q4 2024, driven by a gain on Corporate FX hedges. For 2025, the annual MTM loss of $291 million turned into a $41 million gain, attributed to position changes, lower amortization of gas transportation assets at Emera Energy Services, and FX hedge gains.

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 recorded a $75 million non-cash impairment charge related to the NMGC disposal group's fair value adjustment, impacting its Other Segment financials. The charge, after-tax $71 million, was reported as 'Impairment charges' on consolidated income statements.

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 Emera recognized $32 million in wind-down costs and asset impairments in Q4 2024, primarily at Block Energy, impacting earnings per share by $0.09. These charges were recorded in 'Other income, net' and 'Impairment charges' on financial statements, attributed to the Other segment.

- (2) Excludes $6 million USD, after-tax, in other impairment charges associated with the pending sale of NMGC for the year ended December 31, 2024. - (3) Includes Emera Energy's USD adjusted net income from EES, Bear Swamp and interest ex...

AI summary The text discusses the impact of currency translation on financial metrics, highlighting adjustments to net income due to changes in CAD and USD exchange rates. It also mentions specific impairment charges and MTM losses and gains, providing context on financial performance and adjustments for the periods ending December 31, 2024, and December 31, 2025.

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) Deferred income tax liabilities, net of...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2024, and December 31, 2025. Key changes include an increase in deferred income tax liabilities, a decrease in regulatory liabilities, an increase in other liabilities, an increase in common stock, and a decrease in accumulated other comprehensive income. These changes are attributed to factors such as tax deductions, FX translation effects, finance leases, and pension-related costs.

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 agreed to sell NMGC for $1.3 billion USD, classifying its assets as held for sale in Q3 2024. An impairment charge of $75 million was recorded in Q2 2025 due to FV adjustments, with $97 million in depreciation recorded on NMGC assets through December 2025. The transaction is expected to close in H1 2026 after a public hearing in November 2025.

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.

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.

Critical Accounting Estimates The preparation of consolidated financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect reported amounts of assets and liabilities at the date of...

AI summary The preparation of consolidated financial statements under USGAAP requires management estimates affecting assets, liabilities, revenues, and expenses. Key areas include rate-regulated assets, pension benefits, income taxes, asset retirement obligations, and financial instrument valuations. Estimates are evaluated based on historical data and assumptions.

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.

PP&E PP&E represents 61 per cent of total assets on the Company's consolidated balance sheet and includes generation, transmission and distribution, and other assets of the Company. Depreciation is determined by the straight-line method, b...

AI summary PP&E constitutes 61% of the Company's assets, with depreciation calculated using the straight-line method based on service lives requiring regulatory approval. Depreciation expense increased from $1,135 million in 2024 to $1,259 million in 2025, highlighting the material impact of changes in depreciation rates on financial statements.

Long-Lived Assets Impairment Assessments The Company assesses whether there has been an impairment of long-lived assets and intangibles when a triggering event occurs, such as a significant market disruption or the sale of a business. The...

AI summary The company assesses long-lived asset impairments when triggered by events like market disruptions. Impairment is determined by comparing undiscounted cash flows to carrying value. In 2025, $75M impairment was recognized for NMGC disposal group, and $19M in 2024. Estimates are critical and based on market conditions and projections.

Asset Retirement Obligations Measurement of the FV of AROs requires the Company to make reasonable estimates concerning the method and timing of settlement associated with legally obligated costs. There are uncertainties in estimating futu...

AI summary Emera discusses the measurement and accounting of Asset Retirement Obligations (AROs), emphasizing uncertainties in estimating future costs due to regulatory changes and technological advances. AROs are recorded based on estimated cash flows, adjusted for credit risk, and depreciated alongside related assets. Conditional AROs are not recognized if their future value cannot be reasonably estimated. As of December 31, 2025, AROs totaled $228 million, with undiscounted obligations of $474 million.

Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting – Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense...

AI summary The FASB issued ASU 2024-03, requiring public business entities to disclose more detailed expense information, including inventory purchases, employee compensation, and depreciation. Effective from 2026 for annual reports and 2027 for interim reports, the update allows prospective or retrospective application. The Company is evaluating its impact on financial disclosures.

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.

Consolidated Statements of Income For the Year ended December 31 millions of dollars (except per share amounts) 2025 2024 Operating revenues Regulated electric $ 6,858 $ 5,872 Regulated gas 1,713 1,575 Non-regulated 205 (247) Total operati...

AI summary The consolidated statements of income for Nova Scotia Power Incorporated show a significant increase in operating revenues and net income from 2024 to 2025, with regulated electric and gas revenues rising and operating expenses also increasing. Net income attributable to common shareholders rose from $494 million to $1,014 million.

Consolidated Balance Sheets As at millions of dollars December 31 2025 December 31 2024 Assets Current assets Cash and cash equivalents $ 349 $ 196 Restricted cash 16 17 Inventory (note 15) 821 781 Derivative instruments (notes 16 and 17)...

AI summary The consolidated balance sheets present the financial position of Nova Scotia Power Incorporated as of December 31, 2025, and December 31, 2024, highlighting key assets such as cash, inventory, PP&E, and regulatory assets. The document also includes the Management's Discussion and Analysis section, which provides insights into the company's financial performance and outlook.

Consolidated Balance Sheets (continued) As at millions of dollars December 31 2025 December 31 2024 Liabilities and Equity Current liabilities Short-term debt (note 24) $ 1,807 $ 1,400 Current portion of long-term debt (note 26) 1,201 234...

AI summary The consolidated balance sheets show a significant increase in liabilities and equity from December 31, 2024, to December 31, 2025, with notable changes in short-term and long-term debt, regulatory liabilities, and equity components such as retained earnings and accumulated other comprehensive income.

Principles of Consolidation These consolidated financial statements include the accounts of Emera Incorporated, its majority-owned subsidiaries, and a variable interest entity ("VIE") in which Emera is the primary beneficiary. Emera uses t...

AI summary Emera's consolidated financial statements include its subsidiaries and VIEs where it is the primary beneficiary. The equity method is used for investments with significant influence, and intercompany transactions are eliminated except for regulated/non-regulated adjustments, impacting PP&E and regulatory assets.

Use of Management Estimates The preparation of consolidated financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect reported amounts of assets and liabilities at the date of th...

AI summary Management estimates are critical in preparing consolidated financial statements under USGAAP, impacting asset/liability valuations and revenue/expense recognition. Key areas include rate-regulated assets, pension obligations, unbilled revenue, depreciation, goodwill impairment, income taxes, ARO, and financial instrument valuations. Estimates are reviewed periodically based on historical data and reasonable assumptions.

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 PP&E is recorded at original cost, including AFUDC or capitalized interest, with specific rules for depreciation, amortization, and handling of regulated vs. non-regulated assets. Depreciation uses straight-line or group remaining life methods, requiring regulatory approval for service lives. Intangible assets are amortized similarly, with regulatory oversight for rate-regulated subsidiaries.

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 the purchase price over the fair value of identifiable assets and liabilities. It is subject to annual impairment testing, with management using either a qualitative or quantitative approach to estimate the fair value of reporting units, considering factors like cash flow projections, discount rates, and peer company valuations.

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 NMGC in Q3 2024 following its sale. Qualitative assessments in Q4 2025 for PGS and TEC indicated no further impairment testing was needed, as fair value exceeded carrying amounts. Note 23 provides additional details.

Long-Lived Assets: Emera assesses whether there has been an impairment of long-lived assets and intangibles when a triggering event occurs, such as a significant market disruption or sale of a business. The assessment involves comparing un...

AI summary Emera assesses impairment of long-lived assets when triggered by events like market disruptions or business sales, using undiscounted cash flow analysis. In 2025, $75M ($71M after-tax) impairment charges were recognized for the NMGC disposal group, while $19M was recorded in 2024. Assumptions include historical data, market studies, and long-term projections.

Asset Retirement Obligations An ARO is recognized if a legal obligation exists in connection with the future disposal or removal costs resulting from the permanent retirement, abandonment or sale of a long-lived asset. A legal obligation m...

AI summary Asset Retirement Obligations (AROs) are recognized when legal obligations exist for future disposal or removal costs of long-lived assets. They are measured at fair value using the company's credit-adjusted risk-free rate, with adjustments for actual expenditures. Conditional AROs, where timing/method depends on future events, are not recognized if fair value cannot be reasonably estimated.

Cost of Removal ("COR") TEC, PGS, NMGC and NSPI recognize non-ARO COR as regulatory liabilities or regulatory assets. The non-ARO COR represent funds received from customers through depreciation rates to cover estimated future non-legally...

AI summary TEC, PGS, NMGC, and NSPI recognize non-ARO COR as regulatory liabilities/assets, funded via depreciation rates to cover future PP&E removal costs. Costs are accrued over asset lifetimes using regulator-approved studies, based on historical data and future cash outlay estimates.

Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting – Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense...

AI summary The FASB issued ASU 2024-03, requiring detailed expense disclosures, effective 2026 and 2027. The company is evaluating its impact on financial statements.

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's pending sale of NMGC for $1.3 billion USD led to goodwill impairment charges and adjustments to held-for-sale assets. The impairment charge was $210 million in Q3 2024 and $75 million in Q2 2025, with ongoing depreciation recorded until the transaction closes.

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.

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.

Accumulated Reserve – COR This regulatory asset or liability represents the non-ARO COR reserve in TEC, PGS and NSPI. AROs represent the FV of estimated cash flows associated with the Company's legal obligation to retire its PP&E. Non-ARO...

AI summary The Accumulated Reserve (COR) is a regulatory liability representing funds collected from customers to cover future costs of retiring PP&E. Non-ARO COR, not legally required, reduces the rate base for ratemaking. This reserve is adjusted as depreciation is recorded and new assets are added, impacting the company's financial obligations and rate structures.

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 NSEB approval for $25 million in deferred incremental operating costs and $10 million in undepreciated asset retirement costs related to Hurricane Fiona. These regulatory assets will be amortized over 10 years 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 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.

The components of AOCI are as follows: millions of dollars Unrealized gain (loss) on translation of self-sustaining foreign operations Net change in net investment hedges Gains (losses) on derivatives recognized as cash flow hedges Net cha...

AI summary The document provides a detailed breakdown of the components of Accumulated Other Comprehensive Income (AOCI) for the years ended December 31, 2025, and 2024, including unrealized gains and losses, changes in net investment hedges, and pension-related adjustments. It also outlines reclassifications out of AOCI and includes inventory figures for materials and fuel as of December 31, 2025, and 2024.

Cash Flow Hedges On May 26, 2021, a treasury lock was settled for a gain of $19 million that is being amortized through interest expense over 10 years as the underlying hedged item settles. As of December 31, 2025, the unrealized gain in A...

AI summary A treasury lock settled on May 26, 2021, generated a $19M gain amortized over 10 years. As of December 31, 2025, $10M (after-tax) in unrealized gains remained in AOCI, with $2M reclassified to interest expense in 2025. The Company expects $2M in AOCI gains to be reclassified to net income within the next year.

As at millions of dollars Classification December 31 2025 December 31 2024 Operating leases: Right-of-use asset Other long-term assets $ 48 $ 52 Operating lease liabilities Current Other current liabilities 1 3 Long-term Other long-term li...

AI summary The text presents financial data related to operating and finance leases for a company, including right-of-use assets, lease liabilities, and future minimum lease payments. It details the amounts recognized in the Consolidated Statements of Income, such as operating lease expenses, variable costs for power generation, amortization, and interest expenses.

22. Employee Benefit Plans Emera maintains a number of contributory defined-benefit ("DB") and defined-contribution ("DC") pension plans, which cover substantially all of its employees. The Company also provides non-pension benefits for it...

AI summary Emera maintains contributory defined-benefit and defined-contribution pension plans covering most employees, along with non-pension retiree benefits. SeaCoast's 50% ownership in a Florida pipeline includes $27M USD in plant value and $3M USD accumulated depreciation as of 2025, with expenses accounted for in OM&G.

millions of dollars Regulatory assets Actuarial (gains) losses Past service gains DB Pension Plans: Balance, January 1, 2025 $ 363 $ (17) $ — Amortized in current period (9) 1 — Current year changes (51) (158) — Change in FX rate (16) — —...

AI summary This document presents financial data related to pension and non-pension benefit plans, including regulatory assets, actuarial gains and losses, and deferred income tax expenses for the years ending December 31, 2025 and 2024. It also mentions the classification of NMGC's assets and liabilities as held for sale following an agreement announced in August 2024.

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.

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 128400 ST DERIV ASSET HFT TREASURY 130050 ST REG ASSETS OTHER 130060 ST REG ASSET HYDRO GENERATION FACILITIES 130100 ST REG ASSET UNAMORT DEFEAS ISSUE COSTS 130200 ST REG AS...

AI summary The text provides a list of account segments with corresponding descriptions, including items related to assets, liabilities, and regulatory accounting. These segments include derivatives, prepaid items, long-term assets, and deferred costs associated with regulatory processes.

2025 Annual Financial Statements Attachment 10 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc. Rate Base Years Ended December 31st Millions of Dollars 2025 Actual 1 2 3 4 15 Net Plant in Service 447 Less: Imp...

AI summary This document presents the 2025 Annual Financial Statements for Nova Scotia Power Inc., focusing on the Rate Base and related financial components. It includes details on Net Plant in Service, Deferred Charges & Credits, and various asset-related items such as Asset Retirement Obligations and Deferred income taxes. The document also outlines regulated rate base calculations and financial metrics like weighted average cost of debt and return on equity.

- 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 discusses the Allowance for materials and supplies as of December 31, presenting a detailed table that outlines various asset categories, their depreciation rates, additions, retirements, and other financial adjustments related to Property, Plant, and Equipment for Distribution Plant - D.

2025 Cost of Removal (COR) Incurred by Capital Item $ millions CI Number Funding Project Description COR Incurred 2025 Depreciation & (Accumulated 2025 Depreciation Expense Accretion Expense Depreciation) Cost of Removal Accretion Expense...

AI summary The text presents a table detailing the 2025 Cost of Removal (COR) incurred by various capital items, including depreciation and accretion expenses for different types of generation and distribution plants, along with related financial figures.

2025 Annual Financial Statements Attachment 16.2 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Application of Amounts Year Regulated Net Earnings Above Section 21 FAM Fixed Cost Income Approved ROE Amortization1 Deferral Range ($...

AI summary The table presents the application of amounts related to regulated net income and earnings above the approved ROE range from 2006 to 2025. It highlights the impact of Section 21 amortization on earnings, particularly in 2014 and 2015, where accelerated amortization reduced earnings above the approved ROE range.

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.

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.

Asset Retirement Obligations An ARO is recognized if a legal obligation exists in connection with the future disposal or removal costs resulting from the permanent retirement, abandonment, or sale of a long-lived asset. A legal obligation...

AI summary The text explains the recognition and accounting treatment of Asset Retirement Obligations (AROs), including their calculation based on legal obligations, fair value estimates, and depreciation methods. Conditional AROs are discussed, where fair value cannot be reasonably estimated, and management's monitoring of these obligations.

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 as at December 31, excluding certain regulatory assets related to PP&E and AROs as discussed in notes 13 and 20, consisted of the following: As at December 31 December 31 millions of dollars 2025 2024 Regu...

AI summary The document provides a summary of regulatory assets and liabilities as of December 31, 2025, and 2024, highlighting changes in figures such as the deferred income tax regulatory asset, FAM, Hurricane Fiona, and other categories.

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

AI summary NSPI has received NSEB approval to defer $25 million in incremental operating costs from Hurricane Fiona's storm restoration and $10 million in undepreciated costs from retired assets. These regulatory assets will be amortized over 10 years starting July 1, 2024.

Considering all evidence regarding the utilization of the Company's deferred income tax assets, it has been determined that NSPI is more likely than not to realize all recorded deferred income tax assets, except for the denied interest and...

AI summary The document discusses the determination that NSPI is likely to realize its deferred income tax assets, except for certain items, and notes a valuation allowance of $43 million recorded as of December 31, 2025, related to denied interest, financing expenses, capital loss carryforward, and investment tax credits.

The following table provides details of the changes in unrecognized tax benefits for the years ended December 31 as follows: millions of dollars 2025 2024 Deferred income tax assets: Balance, January 1 $ 25 $ 22 Increases due to tax positi...

AI summary The text provides a table showing changes in deferred income tax assets for the years ended December 31, 2025, and 2024, including balances and adjustments related to tax positions.

8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Defined benefit pension and non-pension benefits millions of dollars 2025 2024 Balance, January 1 $ (8) $ (78) Amounts reclassified to AOCL 145 70 Balance, December 31 $ 137 $ (8) The reclas...

AI summary The section details accumulated other comprehensive income (loss) for 2025 and 2024, showing a balance increase from $-78 million to $137 million. Reclassifications include $145 million in 2025 and $70 million in 2024, primarily from amortization of actuarial losses and pension liabilities adjustments. These figures impact net periodic pension costs, as noted in the document.

As a result of NSEB approved accounting policies and depreciation rates, NSPI recognizes or defers certain costs within "PP&E" that would not otherwise be recognized or deferred in the absence of rate regulation. Cumulative differences bet...

AI summary The text discusses how NSPI's accounting policies and depreciation rates, approved by the NSEB, affect the recognition and deferral of costs in PP&E. These policies lead to differences between rate-regulated accounting and USGAAP, with a cumulative increase in accretion expense of $1 million as of December 31, 2025. No asset impairments occurred in 2025 or 2024.

The estimated useful lives, in years, for each major category of PP&E consist of the following: Generation 32 to 65 Generation - hydro 63 to 131 Generation - wind 25 Transmission 40 to 80 Distribution 14 to 65 General plant and other 5 to...

AI summary The document outlines the estimated useful lives for various categories of Property, Plant and Equipment (PP&E), including generation, transmission, and distribution, along with the average amortization expense for land rights and computer software over the next five years.

The changes in benefit obligation and plan assets, and the funded status for all plans for the years ended December 31 were as follows: millions of dollars 2025 2024 Change in Projected Benefit Obligation ("PBO") and Accumulated Post retir...

AI summary The document outlines the changes in benefit obligations and plan assets for pension and non-pension benefit plans for the years ended December 31, 2025 and 2024. It details balances, contributions, benefits paid, and actuarial gains and losses, with actuarial losses attributed to updated salary assumptions, higher indexation, and member experience.

NSPI's net periodic benefit cost (recovery) as at December 31 included the following: millions of dollars 2025 2024 Defined benefit pension plan Non-pension benefit plans Defined benefit pension plan Non-pension benefit plans Service cost...

AI summary NSPI's net periodic benefit cost (recovery) for 2025 and 2024 includes service cost, interest cost, and expected return on plan assets. The expected return is calculated based on the market-related value of plan assets, adjusted for interest and smoothed over five years.

Highlights of the changes are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Net income – 2024 $ 71 $ 160 Increased operating revenues (refer to "Operating Revenues" sec...

AI summary The text outlines changes in financial metrics for a company over three months and a year, highlighting increased operating revenues and decreased net income, with specific factors such as increased fuel costs, cybersecurity incident expenses, and tax recovery changes impacting results.

Q3 2025 compared to Q3 2024 Q3 2025 net income decreased by $11 million compared to Q3 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q3 2025 net income decreased by $11 million compared to Q3 2024, driven by higher OM&G expenses and increased depreciation/amortization from expanded PP&E in service. OM&G costs rose due to transmission, distribution, and generation operations, partially offset by higher administrative overhead allocated to PP&E.

Q2 2025 compared to Q2 2024 Q2 2025 net income decreased by $12 million compared to Q2 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q2 2025 net income decreased by $12 million compared to Q2 2024, driven by higher OM&G expenses from increased power generation costs and a cybersecurity incident, partially offset by administrative overhead allocations. Depreciation and amortization also rose due to higher PP&E in service.

(2) The annual incentive payout amount does not include any amount allocated to deferred share units. Mr. Blunden elected to defer 50 per cent of his 2025 annual incentive payment to DSUs. No portion of the annual incentive entitlements th...

AI summary The text discusses the allocation of annual incentive payouts, including deferred share units (DSUs), performance share units (PSUs), and restricted share units (RSUs), and clarifies that none of these payments are recoverable in rates. It also mentions the inclusion of perquisite and other compensation in the value calculations.

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.

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 the deferral of $25 million in incremental operating costs from Hurricane Fiona restoration efforts and reclassified $10 million of retired asset costs to regulatory assets, to be amortized over 10 years starting July 1, 2024.

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.

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.

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 has agreed to sell NMGC for $1.3 billion USD, with the transaction expected to close in early 2026. NMGC's assets and liabilities were classified as held for sale in Q3 2024, and a non-cash impairment charge of $75 million was recorded in Q2 2025. Depreciation on NMGC's assets continued through December 31, 2025.

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 document highlights changes in net income, showing an increase in operating revenues due to factors such as storm cost recovery revenue, new base rates, and customer growth, though partially offset by unfavourable weather. There are also increases in fuel costs, OM&G, depreciation, interest expense, and taxes, with some offsets from regulatory deferrals and tax credits.

- (2) Marketing and trading margin excludes a MTM loss, pre-tax of $144 million in Q4 2025 (2024 $159 million loss) and a MTM gain, pre-tax of $16 million for the year ended December 31, 2025 (2024 – $357 million loss). - (3) Net of income...

AI summary The text discusses financial figures including marketing and trading margins, net income tax recoveries, impairment charges, and transaction costs for the years ending December 31, 2025 and 2024. It also references the sale of equity interest in LIL by Emera on June 4, 2024.

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.

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.

PP&E PP&E represents 61 per cent of total assets on the Company's consolidated balance sheet and includes generation, transmission and distribution, and other assets of the Company. Depreciation is determined by the straight-line method, b...

AI summary PP&E constitutes 61% of the Company's total assets and is depreciated using the straight-line method based on estimated service lives. Regulatory approval is required for changes in depreciation rates, which can significantly impact expenses. Depreciation expense increased from $1,135 million in 2024 to $1,259 million in 2025.

Long-Lived Assets Impairment Assessments The Company assesses whether there has been an impairment of long-lived assets and intangibles when a triggering event occurs, such as a significant market disruption or the sale of a business. The...

AI summary The Company assesses long-lived asset impairments when triggering events occur, such as market disruptions or business sales. Impairment charges were recognized in 2025 and 2024, with amounts recorded on the Consolidated Income Statement. The process involves comparing future cash flows to the asset's carrying value and relies on assumptions about market conditions and future operations.

Asset Retirement Obligations Measurement of the FV of AROs requires the Company to make reasonable estimates concerning the method and timing of settlement associated with legally obligated costs. There are uncertainties in estimating futu...

AI summary The document discusses the measurement and accounting of asset retirement obligations (AROs) by Emera, including the factors affecting estimates, such as legislation, technology, and regulatory requirements. It outlines how AROs are recorded, accreted, and their impact on financial statements, as well as the timing and estimated costs of future obligations.

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.

Consolidated Statements of Income For the Year ended December 31 millions of dollars (except per share amounts) 2025 2024 Operating revenues Regulated electric $ 6,858 $ 5,872 Regulated gas 1,713 1,575 Non-regulated 205 (247) Total operati...

AI summary The consolidated statements of income for 2025 and 2024 show significant increases in operating revenues and income from operations, with regulated electric and gas revenues and income from operations rising notably. Net income also increased from 2024 to 2025, reflecting changes in operating expenses and income from equity investments.

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.

Principles of Consolidation These consolidated financial statements include the accounts of Emera Incorporated, its majority-owned subsidiaries, and a variable interest entity ("VIE") in which Emera is the primary beneficiary. Emera uses t...

AI summary The consolidated financial statements include Emera Incorporated and its subsidiaries, with specific accounting treatments for variable interest entities and intercompany transactions. The primary beneficiary of a VIE must consolidate it, while others use the equity method. Intercompany transactions are eliminated, except for regulated and non-regulated entities, with net profit recorded in non-regulated operating revenues.

Use of Management Estimates The preparation of consolidated financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect reported amounts of assets and liabilities at the date of th...

AI summary The preparation of consolidated financial statements under USGAAP requires management estimates and assumptions, particularly regarding rate-regulated assets, pension benefits, unbilled revenue, and asset retirement obligations. These estimates are periodically reviewed and adjusted as necessary based on historical experience and current conditions.

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.

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.

Long-Lived Assets: Emera assesses whether there has been an impairment of long-lived assets and intangibles when a triggering event occurs, such as a significant market disruption or sale of a business. The assessment involves comparing un...

AI summary Emera assesses impairment of long-lived assets and intangibles when triggered by events like market disruptions or business sales. Impairment losses are determined by comparing undiscounted future cash flows to asset carrying values. In 2025, $75 million in impairment charges were recorded, and in 2024, $19 million were recognized.

Asset Retirement Obligations An ARO is recognized if a legal obligation exists in connection with the future disposal or removal costs resulting from the permanent retirement, abandonment or sale of a long-lived asset. A legal obligation m...

AI summary Asset Retirement Obligations (AROs) are recognized when there is a legal obligation to retire or remove long-lived assets, with their fair value based on estimated future costs. These obligations are recorded as liabilities and impact the carrying value of related assets. Conditional AROs are not recognized if their fair value cannot be reasonably estimated.

Cost of Removal ("COR") TEC, PGS, NMGC and NSPI recognize non-ARO COR as regulatory liabilities or regulatory assets. The non-ARO COR represent funds received from customers through depreciation rates to cover estimated future non-legally...

AI summary The companies TEC, PGS, NMGC, and NSPI recognize non-ARO COR as regulatory liabilities or assets, accrued over the life of assets based on depreciation studies. These funds cover estimated future non-legally required costs of removing PP&E upon retirement.

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.

Accumulated Reserve – COR This regulatory asset or liability represents the non-ARO COR reserve in TEC, PGS and NSPI. AROs represent the FV of estimated cash flows associated with the Company's legal obligation to retire its PP&E. Non-ARO...

AI summary The Accumulated Reserve – COR represents a non-ARO reserve in TEC, PGS, and NSPI, which is used to cover future costs of retiring PP&E. This reserve is funded through depreciation rates and reduces the rate base for ratemaking purposes. The liability is adjusted based on depreciation and new asset additions.

PP&E consisted of the following regulated and non-regulated assets: As at millions of dollars Estimated useful life December 31 2025 (1) December 31 2024 (1) Generation 10 to 131 $ 14,673 $ 14,297 Transmission 5 to 80 3,379 3,106 Distribut...

AI summary The document outlines the PP&E (Property, Plant, and Equipment) composition for regulated and non-regulated assets as of December 31, 2025, and 2024, showing increases in values across various categories such as generation, transmission, and distribution. It also notes that NMGC's assets were classified as held for sale starting in Q3 2024.

millions of dollars Regulatory assets Actuarial (gains) losses Past service gains DB Pension Plans: Balance, January 1, 2025 $ 363 $ (17) $ — Amortized in current period (9) 1 — Current year changes (51) (158) — Change in FX rate (16) — —...

AI summary The document provides a summary of financial changes in pension and non-pension benefit plans for Nova Scotia Power, including balances, amortizations, and changes in foreign exchange rates for the years ending December 31, 2025, and December 31, 2024. It also notes the classification of NMGC's assets and liabilities as held for sale following an announced agreement in August 2024.

30. Non-Controlling Interest in Subsidiaries As at millions of dollars December 31 2025 December 31 2024 Preferred shares of GBPC $ 14 $ 14 Preferred shares of GBPC

AI summary The document presents a table showing the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, with no change in value between the two periods.

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.

ACCOUNT SEGMENT Account Segment Value Account Segment Description 128400 ST DERIV ASSET HFT TREASURY 130050 ST REG ASSETS OTHER 130060 ST REG ASSET HYDRO GENERATION FACILITIES 130100 ST REG ASSET UNAMORT DEFEAS ISSUE COSTS 130200 ST REG AS...

AI summary The text presents a list of account segments with corresponding descriptions, highlighting various financial and regulatory assets, liabilities, and other related items. These segments include short-term and long-term assets, regulatory assets, deferred items, and other financial instruments.

2025 Actual 1 2 3 Amount 4 15 Net Plant in Service 5,045 447 Less: Impact of the Non-Regulated Adjustments (84) 448 Plus: Construction work in progress 340 449 Net Utility Fixed Assets 5,302 450 Add: 451 Deferred Charges & Credits 461 Fina...

AI summary The document presents a financial summary for 2025, detailing Net Plant in Service, Net Utility Fixed Assets, and various charges and credits. It includes figures for depreciation, amortization, income taxes, operating costs, and total revenue, highlighting key financial metrics for regulatory proceedings.

- 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 This text discusses the ending balance for the Allowance for materials and supplies as of December 31. It includes a table with various asset-related categories and adjustments, such as asset additions, retirements, and depreciation.

2025 Cost of Removal (COR) Incurred by Capital Item $ millions CI Number Funding Project Description COR Incurred C0070728 IR 673 TPIF - Benjamins Mill Wind - C0073632 POA Facilities/Security upgr. 2025 - C0073958 LIN Grating Refurbishment...

AI summary The document outlines the 2025 Cost of Removal (COR) incurred by various capital items, listing projects such as facility upgrades, equipment replacements, and infrastructure refurbishments. A table provides details on the CI numbers, funding project descriptions, and the COR incurred, though most values are listed as '-' indicating no data. A section on Capital Recovery includes depreciation and accretion expenses for the distribution plant.

2025 Annual Financial Statements Attachment 16.2 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Application of Amounts Year Regulated Net Earnings Above Section 21 FAM Fixed Cost Income Approved ROE Amortization1 Deferral Range ($...

AI summary The table presents financial data related to the application of amounts under Section 21, including regulated net income, earnings above approved ROE, and amortization. It explains how the Section 21 mechanism allowed NS Power to accelerate amortization of a deferred tax liability, affecting earnings above the approved ROE range for certain years.

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.

- If you need more space, attach additional schedules. Add: Provision for income taxes – current -6,018,010 Provision for income taxes – deferred -38,950,935 Amortization of tangible assets 292,127,239 Amortization of intangible assets 5,8...

AI summary The text presents various financial line items, including provisions for income taxes, amortization of assets, reserves, and non-deductible expenses. It also includes details on preferred share dividends, share compensation, and other accounting-related entries, with some amounts highlighted in bold.

va Scotia Power Incorporated 11931 4938 RC0001 Subtotal of other additions 199 130,579,059 130,579,059 Total additions 500 407,427,049 407,427,049 Amour nt A plus line 500 548,347,703 Dedu ıct: al cost allowance from Schedule 8 403 342,919...

AI summary The document presents a detailed financial table showing additions and deductions for Nova Scotia Power Incorporated, including various accounting entries, tax-related items, and deferrals such as the Storm Cost Recovery Rider Deferral and Renewable to Retail (RTR) Deferral, along with a total of deductions and additions.

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.

Canada Revenue Agency Corporation's name Business number Tax year-end Year Month Day Nova Scotia Power Incorporated 11931 4938 RC0001 2025-12-31 - Fill out this schedule to calculate the amount of capital cost allowance (CCA) the corporati...

AI summary The document presents a table from the Canada Revenue Agency requiring Nova Scotia Power Incorporated to calculate the capital cost allowance (CCA) for the tax year ending December 31, 2025, or to account for acquisitions or dispositions of depreciable property.

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.

Page 4 OCI Class Description UCC adjustment for RIIP and property acquired after 2024 that is included in Classes 54 to 56 (column 14 multiplied by the relevant factor) UCC adjustment for property acquired during the year other than Alle,...

AI summary The text contains a table with various columns related to UCC adjustments, CCA rates, and other financial calculations. It includes entries for different classes and items, along with numerical values and notes. The table appears to be part of an accounting or financial report, likely related to capital cost allowances and asset depreciation.

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.

Notes (continued) □ 2026 Docusign Envelope ID: 3004E7B2-D1E3-8CBB-8136-5E1E1F24E654 NSPI - 2025 - T2 225 Note 11: The adjustment from column 16 is added to the UCC in column 10 to calculate the CCA deduction in column 21 The relevant facto...

AI summary This note explains the calculation of the CCA deduction for specific property classes, including the relevant factors for different classes of property and conditions based on availability dates and tax year alignment with the calendar year.

Nova Scotia Power Incorporated 11931 4938 RC0001 ┌ Part 1 – Capital (continued) Subtotal A (from page 1)8,082,643,817_ A Deduct the following amounts: Deferred tax debit balance at the end of the year Any deficit deducted in calculating it...

AI summary The document outlines financial calculations for Nova Scotia Power Incorporated, including capital deductions, investment allowance, and taxable capital for the year. It presents a detailed breakdown of financial items and notes related to accounting standards and tax considerations.

NSPI - 2024 - T2 - Tax Return - Amended for SR&ED.224 2024-12-31 Nova Scotia Power Incorporated 2026-06-29 13:08 11931 4938 RC0001 Docusign Envelope ID: 3004E7B2-D1E3-8CBB-8136-5E1E1F24E654 199 Subtotal of other additions 476,235,502 476,2...

AI summary The document presents an amended T2 Tax Return for Nova Scotia Power Incorporated, including various financial figures and deductions such as SR&ED expenditures, capital cost allowances, and deferrals related to programs and riders. It outlines additions, deductions, and net income for income tax purposes.

Schedule 8 Corporation's name Business number Tax year-end Year Month Day Nova Scotia Power Incorporated 11931 4938 RC0001 2024-12-31 - Fill out this schedule to calculate the amount of capital cost allowance (CCA) the corporation is claim...

AI summary Schedule 8 is used to calculate the capital cost allowance (CCA) claimed by Nova Scotia Power Incorporated for the tax year ending December 31, 2024, or to account for acquisitions or dispositions of depreciable property.

NS Power 2025 Financial Statements NSEB IR-1 Attachment [3] Reconciliation of difference between 2025 Regulated Income Tax Recovery and Test Year Forecast Income Tax Expense (in millions) Test Year Forecast 2024 Regulated 2025 Variance Cor...

AI summary The document reconciles the difference between the 2025 Regulated Income Tax Recovery and the Test Year Forecast Income Tax Expense for NS Power. It highlights an increase in income tax recovery by $36 million in 2025, attributed to clean technology investment tax credits.

2. Details of Variances in the Non-Fuel Costs Details of variances in the non-fuel costs between 2025 actuals compared to the 2024 test year forecast are provided below: - Increased Operating, Maintenance and General ("OM&G") Expenses OM&G...

AI summary The document details variances in non-fuel costs for 2025 compared to 2024 forecasts, including increases in OM&G expenses, depreciation, fixed cost recoveries, and demand-side management costs, alongside decreases in other income. NS Power's achieved ROE fell below the NSEB-approved range for the fourth consecutive year.

4. NS Power Cost of Removal and Deferred Tax Regulatory Account Review Information (M08353) In accordance with the Board's directives dated July 25, 2018 regarding the Company's financial statement reporting, NS Power provides the followin...

AI summary NS Power provides annual regulatory account information on rate base continuity, fixed assets, ARO/COR accounts, depreciation funds, asset retirement obligations, and corporate tax provisions. The Board requested modifications in 2021, including a DDA Report by 2026 and updated tax expense disclosures. Historical filings included deferred tax liability continuity.