N-12025 Annual Financial Statements - Redacted
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18. OTHER CURRENT LIABILITIES As at December 31 December 31 millions of dollars 2025 2024 Accrued charges $ 61 $ 61 Accrued interest on long-term debt 40 41 Carbon tax payable 15 25 Sales tax payable - 11 Other 4 4 Total other current liab...
AI summary The table presents other current liabilities for the years 2025 and 2024, including accrued charges, interest on long-term debt, carbon tax payable, sales tax payable, and other liabilities. Total other current liabilities decreased from $142 million in 2024 to $120 million in 2025.
C. Environment NSPI's activities are subject to a broad range of federal, provincial, regional and local laws and environmental regulations, designed to protect, restore and enhance the quality of the environment including air, water and s...
AI summary NSPI faces environmental regulations requiring grid investments to support renewable energy transition, with estimated capital spending of $81M in 2026 and $111M from 2027-2030. Compliance costs are material, and funding depends on government collaboration. No significant compliance issues were found in recent audits.
Polychlorinated Biphenyl Equipment In response to the Canadian Environmental Protection Act 1999, 2008 Polychlorinated Biphenyl ("PCB") Regulations to phase out electrical equipment and liquids containing PCBs, NSPI has implemented a progr...
AI summary NSPI is phasing out PCB-containing equipment by 2025 at a cost of $115 million, with $100 million spent as of 2025. An ARO liability of $2 million is recognized. ECCC extended the phase-out deadline to 2026, prompting NSPI to develop a post-2025 PCB Action Plan for facilities closing before 2030 and technically/economically infeasible replacements.
NSPI's fuel costs are affected by commodity prices and generation mix, which is largely dependent on economic dispatch of the generating fleet. NSPI brings the lowest cost options on stream first after renewable energy from IPPs including...
AI summary NSPI's fuel costs are influenced by commodity prices and the generation mix, which is determined by economic dispatch of the generating fleet. Renewable energy from IPPs and COMFIT participants, along with the NS Block of energy, plays a significant role in the generation mix. The NS Block carries no additional fuel costs beyond approved annual assessments. Factors such as plant outages, carbon pricing programs like OBPS, and compliance with environmental regulations also affect the generation mix.
Changes in Environmental Legislation NSPI is subject to extensive regulation by federal, provincial and municipal authorities regarding environmental matters; primarily related to its utility operations. This includes laws, regulations and...
AI summary NSPI faces regulatory obligations under federal, provincial, and municipal environmental laws, including GHG emission targets, renewable energy standards, and coal phase-out by 2030. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with potential risks for NSPI if regulations change. NSPI collaborates with governments to align with carbon reduction goals.
Per- and polyfluoroalkyl substances ("PFAS"): PFAS are man-made chemicals that are widely used in consumer products and can persist and bioaccumulate in the environment. The Company does not manufacture PFAS but because these contaminants...
AI summary PFAS, man-made chemicals persistent in the environment, may impact NSPI's operations despite not being manufactured by the company. Regulatory changes on PFAS could impose new costs for cleanup and alter land acquisition strategies, potentially causing a Material Adverse Effect.
Greenhouse Gas Emissions: NSPI is subject to GHG emission caps for the 2010 through 2030 period as outlined in the "Nova Scotia Greenhouse Gas Regulations", and further updated by Order in Council in 2013. The emission cap reduces from 10...
AI summary NSPI faces GHG emission caps from 2010-2030 under provincial regulations, with a 2013 Order in Council reducing limits from 10 to 4.5 megatonnes. An Equivalency Agreement with Canada (2014-2029) exempts Nova Scotia from federal coal phase-out rules. NSPI complies via renewables, imports, and efficiency. Federal laws like the Pan-Canadian Framework and Clean Electricity Regulations (2024) aim for net-zero electricity by 2035, with NSPI collaborating on carbon reduction measures.
Air Quality Regulations: NSPI is subject to emission cap requirements for mercury, SO2 and nitrogen oxide ("NOx") as prescribed in the Regulations. The Regulations limit net mercury emissions to 35 kg per year for the period of 2020 throug...
AI summary NSPI is subject to emission cap requirements for mercury, SO2, and NOx as outlined in the Air Quality Regulations. The mercury cap is set at 35 kg per year from 2020 to 2029, with 10 kg of mercury credits available annually for compliance. NOx compliance periods began in 2021.
2025 Annual Financial Statements Attachment 4 Page 13 of 24 Corporate Objective Targets Weight- ing (%) Result Payout (%) Environment Build and maintain an environmental program that manages compliance and controls risks Objectives include...
AI summary The document outlines the 2025 Corporate Objective related to environmental compliance and risk management, including targets such as rolling out an environmental onboarding program, achieving 90% employee completion by year-end, and completing a PCB phase-out action plan by the end of 2025. Stretch goals include reducing Moderate Environmental Incidents by 25% and completing all 2025 EMS Critical Targets.
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.
Compliance and Permits In addition to imposing continuing compliance obligations, there are laws, regulations and permits authorizing the imposition of penalties for non-compliance, including fines, injunctive relief and other sanctions. T...
AI summary The document highlights NSPI's compliance with environmental and regulatory obligations, noting that non-compliance risks material adverse effects. Audits found no significant issues, but recent environmental developments and legislative changes pose challenges. NSPI is engaging stakeholders to meet targets while addressing affordability concerns.
Environmental Matters NSPI is subject to regulation by federal, provincial, and municipal authorities regarding environmental matters related to its utility operations. This includes laws setting GHG emissions standards, renewable energy t...
AI summary NSPI faces regulatory risks from federal, provincial, and municipal environmental laws, including GHG emissions standards, renewable energy targets, and habitat protection requirements. Non-compliance could adversely affect operations and financial performance. Risks are detailed in the MD&A's 'Enterprise Risk and Risk Management' section, available on SEDAR+.
Air Quality Regulations NSPI is subject to emission cap requirements for mercury, SO2 and NOx as prescribed in the Nova Scotia Air Quality Regulations. The Air Quality Regulations limit net mercury emissions to 35 kg per year for the perio...
AI summary NSPI must comply with emission caps for mercury, SO2, and NOx under Nova Scotia Air Quality Regulations. Mercury emissions are limited to 35 kg/year from 2020-2029, with new compliance periods for SO2 and NOx starting in 2021. Details are in the MD&A section.
2025 Annual Financial Statements Attachment 5 Page 15 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) and emission caps. NSPI is currently within, or forecasts the ability to meet, the prescribed limits for the current compliance periods...
AI summary NSPI exceeded Mercury and SO2 emission limits in 2022 but compensated for Mercury by 2025. It secured extended deadlines for SO2 compensation via Certificates of Variance from NSECC, allowing flexibility until 2034 without incremental customer costs, ensuring grid reliability.
Our Strategy We're focused on safely delivering reliable and cleaner energy at a pace that minimizes the cost impacts for customers at our utilities. Through our strategy, we're responding to the fundamental shift that's impacting the ener...
AI summary The strategy emphasizes delivering reliable, cleaner energy while minimizing cost impacts for customers, addressing industry shifts through decarbonization, decentralization, and digitalization to meet evolving customer needs.
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.
Environmental Legislation: Emera is subject to extensive regulation by federal, provincial, state, regional and local authorities regarding environmental matters, primarily related to its utility operations. This includes laws, regulations...
AI summary Emera faces stringent environmental regulations across jurisdictions, including GHG emission targets, renewable energy mandates, and PFAS-related obligations. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with Nova Scotia targeting coal phase-out by 2030. Non-compliance risks Material Adverse Effects, while PFAS regulations could increase operational costs.
2025 Annual Financial Statements Attachment 6 Page 49 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 highlights risks from environmental regulations, including project delays, stranded costs, compliance expenses, and potential material adverse effects on operations. Non-compliance could lead to penalties, legal disputes, and increased costs, impacting financial performance and strategic investments.
N-2Refiled Statements - NSPI - Redacted
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18. OTHER CURRENT LIABILITIES As at December 31 December 31 millions of dollars 2025 2024 Accrued charges $ 61 $ 61 Accrued interest on long-term debt 40 41 Carbon tax payable 15 25 Sales tax payable - 11 Other 4 4 Total other current liab...
AI summary The document presents a table showing other current liabilities for the years 2025 and 2024, including accrued charges, interest on long-term debt, carbon tax payable, sales tax payable, and other liabilities. The total other current liabilities decreased from $142 million in 2024 to $120 million in 2025.
Polychlorinated Biphenyl Equipment In response to the Canadian Environmental Protection Act 1999, 2008 Polychlorinated Biphenyl ("PCB") Regulations to phase out electrical equipment and liquids containing PCBs, NSPI has implemented a progr...
AI summary NSPI is phasing out PCB-containing equipment by December 2026 under the Canadian Environmental Protection Act, with a total cost of $115 million and an ARO liability of $2 million. The deadline was extended to 2026, prompting NSPI to develop a post-2025 PCB Action Plan.
Changes in Environmental Legislation NSPI is subject to extensive regulation by federal, provincial and municipal authorities regarding environmental matters; primarily related to its utility operations. This includes laws, regulations and...
AI summary Nova Scotia Power Inc. (NSPI) faces regulatory requirements from federal, provincial, and municipal authorities on environmental matters, including GHG emissions, renewable energy standards, and coal phase-out by 2030. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with potential risks if NSPI fails to comply with evolving regulations.
Per- and polyfluoroalkyl substances ("PFAS"): PFAS are man-made chemicals that are widely used in consumer products and can persist and bioaccumulate in the environment. The Company does not manufacture PFAS but because these contaminants...
AI summary PFAS, man-made chemicals persistent in the environment, may impact NSPI's operations due to potential regulatory changes. New environmental laws could impose investigation, cleanup costs, and alter land acquisition strategies, risking Material Adverse Effects.
Air Quality Regulations: NSPI is subject to emission cap requirements for mercury, SO2 and nitrogen oxide ("NOx") as prescribed in the Regulations. The Regulations limit net mercury emissions to 35 kg per year for the period of 2020 throug...
AI summary NSPI is subject to emission caps for mercury, SO2, and NOx under the Air Quality Regulations. Mercury emissions are limited to 35 kg annually from 2020 to 2029, with NSPI eligible to use 10 kg of mercury credits per year. NOx compliance periods began in 2021 as outlined in the Regulations.
2025 Annual Financial Statements Attachment 3 Page 21 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Company will be required to manage the impacts of these ongoing changes on customer demand and rates, while maintaining and integra...
AI summary The company faces challenges in managing energy transition impacts, capital investment needs, and external factors affecting resiliency, renewable integration, and regulatory responses. Risks include insurance limitations for carbon assets, litigation from environmental harms, and climate change impacts on operations, reputation, and capital access.
2025 Annual Financial Statements Attachment 4 Page 13 of 24 Corporate Objective Targets Weight- ing (%) Result Payout (%) Environment Build and maintain an environmental program that manages compliance and controls risks Objectives include...
AI summary The Corporate Objective for Environment focuses on building and maintaining an environmental program that ensures compliance and risk management. Key targets include rolling out an onboarding program by Q2, achieving 90% employee participation by year-end, completing a PCB phase-out action plan, and eliminating significant environmental incidents. A stretch target involves reducing Moderate Environmental Incidents by 25% compared to the 2020-2024 average.
2025 Annual Financial Statements Attachment 5 Page 6 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI's fuel costs are affected by commodity prices and generation mix, which is largely dependent on economic dispatch of the generating...
AI summary NSPI's fuel costs are influenced by commodity prices, generation mix, and factors such as renewable energy from IPPs, COMFIT participants, and the NS Block. The generation mix is also affected by plant outages, carbon pricing programs, and compliance with environmental regulations. Fuel costs and purchased power fluctuate annually, with detailed information available in the MD&A section.
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.
Compliance and Permits In addition to imposing continuing compliance obligations, there are laws, regulations and permits authorizing the imposition of penalties for non-compliance, including fines, injunctive relief and other sanctions. T...
AI summary The text discusses the importance of compliance with environmental laws and regulations for NSPI, noting that non-compliance could have a material adverse effect. It also mentions recent environmental developments and NSPI's engagement with stakeholders to achieve environmental goals while focusing on customer affordability.
Air Quality Regulations NSPI is subject to emission cap requirements for mercury, SO2 and NOx as prescribed in the Nova Scotia Air Quality Regulations. The Air Quality Regulations limit net mercury emissions to 35 kg per year for the perio...
AI summary NSPI is subject to emission caps for mercury, SO2, and NOx as outlined in the Nova Scotia Air Quality Regulations. Mercury emissions are limited to 35 kg per year from 2020 to 2029, while new compliance periods for SO2 and NOx began in 2021.
2025 Annual Financial Statements Attachment 5 Page 15 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) and emission caps. NSPI is currently within, or forecasts the ability to meet, the prescribed limits for the current compliance periods...
AI summary NSPI exceeded mercury and SO2 emission limits in 2022 but compensated for mercury emissions by 2025. NSPI received a Certificate of Variance for SO2 emissions, extending the compensation period to 2029 and providing flexibility until 2034, ensuring no incremental costs to customers and grid reliability.
Our Strategy We're focused on safely delivering reliable and cleaner energy at a pace that minimizes the cost impacts for customers at our utilities. Through our strategy, we're responding to the fundamental shift that's impacting the ener...
AI summary The strategy emphasizes delivering reliable and cleaner energy while minimizing cost impacts on customers, addressing key industry trends such as decarbonization, decentralization, and digitalization.
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 is subject to environmental laws and regulations from the Government of Canada and Nova Scotia. It works with both levels of government to ensure compliance and minimize customer costs. NSPI expects to recover prudently incurred compliance costs and faces risks related to non-compliance with climate and environmental legislation.
Generation mix may also be affected by plant outages, carbon pricing programs, including the Nova Scotia Output-Based Pricing System, availability of renewable generation, availability of energy from the NS Block, plant performance, and co...
AI summary The generation mix is influenced by several factors, including plant outages, carbon pricing programs such as the Nova Scotia Output-Based Pricing System, availability of renewable energy, energy from the NS Block, plant performance, and adherence to environmental regulations.
Environmental Legislation: Emera is subject to extensive regulation by federal, provincial, state, regional and local authorities regarding environmental matters, primarily related to its utility operations. This includes laws, regulations...
AI summary Emera is regulated by various authorities on environmental matters, including GHG emissions, renewable energy standards, and waste management. Nova Scotia and Canada have set net-zero goals by 2050, with Nova Scotia targeting coal phase-out by 2030. PFAS regulations could also impact operations and land acquisition strategies.
2025 Annual Financial Statements Attachment 6 Page 49 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 text discusses potential Material Adverse Effects on Emera due to environmental laws and regulations, including delays in energy projects, restrictions on facilities, early retirement of generation assets, increased compliance costs, and impacts on natural gas sales and capital investments. Non-compliance could lead to legal actions, fines, and other sanctions.
Transition Risk: As government policy related to the environment, renewable energy, and decarbonization continues to shift in various operating jurisdictions, the Company is exposed to increased uncertainty and risk arising from policy, le...
AI summary The Company faces increased transition risk due to evolving environmental policies, renewable energy initiatives, and decarbonization efforts, leading to uncertainty in policy, legal, and regulatory frameworks. This may impact customer demand, rates, and the need for significant capital investment. Risks also include challenges in insuring carbon-emitting assets and potential litigation or regulatory action over environmental harms.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 243100 ACCRUED CREDIT UNION DEDUCTIONS EES 243150 ACCRUED UNION DUES EMPLOYEES 243200 ACCRUED COMMON SHARE PURCHASE PLAN EES 243250 ACCRUED DIRECTORS SHARE PURCHASE PROG 243...
AI summary The document presents an account segment listing various accrued liabilities, long-term liabilities, and regulatory emission compliance items, including carbon tax payable, GST/HST payable, and asset retirement obligations, among others.