N-142026-2027 GRA OP 01-15 - Redacted
33 passages
Debt Management NSPI has access to a syndicated revolving bank line of credit and a non-revolving term facility. NSPI also has an active commercial paper program for up to $800 million, of which the full amount outstanding is backed by the...
AI summary NSPI has a syndicated revolving bank line of credit and a non-revolving term facility, along with a commercial paper program. The commercial paper program is backed by the Company's operating credit facility, and as of June 30, 2025, the total credit facility, outstanding borrowings, and available capacity are outlined.
Credit Available millions of dollars Maturity Facility Utilized Capacity Revolving credit facility June 2029 $ 800 $ 344 $ 456 Non-revolving term facility May 2026 500 500 - NSPI has debt covenants associated with its credit facilities. Co...
AI summary NSPI has credit facilities with specific maturity dates and capacities. The company is in compliance with its debt covenants as of June 30, 2025.
Financing Activity On May 21, 2025, NSPI entered into a $500 million non-revolving facility which matures on May 21, 2026. The credit agreement contains customary representations and warranties, events of default and financial and other co...
AI summary NSPI secured a $500 million non-revolving facility on May 21, 2025, maturing on May 21, 2026, with interest rates tied to Term CORRA or prime rate plus a margin. The funds will be used for general corporate purposes.
Guarantees and Letters of Credit As at June 30, 2025, the Company had $7 million USD and $4 million CAD of letters of credit outstanding (December 31, 2024 - $7 million USD and $3 million CAD). As at June 30, 2025, the Company had $89 mill...
AI summary As of June 30, 2025, the Company had $7 million USD and $4 million CAD in letters of credit outstanding, and $89 million USD in guarantees issued on behalf of NSPEMI, down from $104 million USD in 2024.
Nova Scotia Power Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six months ended June 30 millions of dollars 2025 2024 Operating activities Net income $ 116 $ 75 Adjustments to reconcile net income to net cash pr...
AI summary The condensed consolidated statements of cash flows for Nova Scotia Power Inc. for the six months ended June 30, 2025, and 2024, show net income of $116 million and $75 million, respectively. Net cash provided by operating activities was $95 million in 2025 and $296 million in 2024. Investing activities used $298 million in 2025 and $216 million in 2024. Financing activities provided $211 million in 2025 and used $120 million in 2024.
2026-2027 GRA OP-01 Attachment 02 Page 17 of 19 REDACTED (CONFIDENTIAL INFORMATION REMOVED) For the three months ended June 30, 2025, NSPI issued 0.04 million common shares (2024 – 0.04 million common shares) to Emera for total considerati...
AI summary NSPI issued 0.04 million common shares to Emera for $0.4 million in both the three and six months ended June 30, 2025. Additionally, NSPI returned $340 million of capital to Emera without reducing the number of shares outstanding. As of June 30, 2025, NSPI owed $179 million to Emera and affiliates, up from $150 million as of December 31, 2024.
E. Short-Term Debt On May 21, 2025, NSPI entered into a $500 million non-revolving facility which matures on May 21, 2026. The credit agreement contains customary representations and warranties, events of default and financial and other co...
AI summary NSPI entered into a $500 million non-revolving facility on May 21, 2025, maturing on May 21, 2026. The facility's interest rates are based on Term CORRA or prime rate, plus a margin, and includes standard financial and other covenants.
LIQUIDITY AND CAPITAL RESOURCES The Company generates internally sourced cash from its various regulated and non-regulated energy investments. Utility customer bases are diversified by both sales volumes and revenues among customer classes...
AI summary Emera generates cash from regulated and non-regulated energy investments, with liquidity sufficient to meet near-term capital needs and debt obligations. The company has a capital investment plan of approximately $20 billion from 2025 to 2029, supported by operations, debt, equity, and the pending sale of NMGC. Credit facilities provide significant liquidity, and the company maintains a cash balance of $204 million as of June 30, 2025.
Cash Flow from Financing Activities Net cash provided by financing activities increased $1,875 million to $877 million for the six months ended June 30, 2025, compared to cash used in financing activities of $998 million for the same perio...
AI summary Net cash provided by financing activities increased to $877 million for the six months ended June 30, 2025, compared to $998 million used in financing activities for the same period in 2024. This increase was driven by lower net repayments, higher proceeds from short-term debt, and higher net borrowing, partially offset by lower issuance of long-term debt and higher repayments.
Florida Electric Utility On March 6, 2025, TEC issued $600 million USD of senior unsecured notes that bear interest at 5.15 per cent with a maturity date of March 1, 2035. Proceeds from this issuance were used for the repayment of a portio...
AI summary On March 6, 2025, TEC issued $600 million USD of senior unsecured notes with a 5.15% interest rate and a maturity date of March 1, 2035. The proceeds were used to repay a portion of TEC's outstanding commercial paper.
Canadian Electric Utilities On May 21, 2025, NSPI entered into a $500 million non-revolving facility which matures on May 21, 2026. The credit agreement contains customary representations and warranties, events of default and financial and...
AI summary On May 21, 2025, NSPI secured a $500 million non-revolving facility maturing on May 21, 2026. The credit agreement includes standard terms and was used for general corporate purposes.
Other On February 20, 2025, Emera amended its $200 million unsecured non-revolving facility to extend the maturity date from February 19, 2025 to February 19, 2026. There were no other material changes to the terms from the prior agreement.
AI summary On February 20, 2025, Emera amended its $200 million unsecured non-revolving facility, extending the maturity date from February 19, 2025 to February 19, 2026 with no other material changes to the terms.
Other On February 20, 2025, Emera amended its $200 million unsecured non-revolving facility to extend the maturity date from February 19, 2025 to February 19, 2026. There were no other material changes to the terms from the prior agreement.
AI summary Emera amended its unsecured non-revolving facility on February 20, 2025, extending the maturity date from February 19, 2025 to February 19, 2026 with no other material changes to the terms.
19. LONG-TERM DEBT For details regarding long-term debt, refer to note 26 in Emera's 2024 annual audited consolidated financial statements, and below for 2025 long-term debt financing activity.
AI summary The section discusses long-term debt, directing readers to note 26 in Emera's 2024 annual audited consolidated financial statements and providing information on 2025 long-term debt financing activity.
Florida Electric Utility On March 6, 2025, TEC issued $600 million USD of senior unsecured notes that bear interest at 5.15 per cent with a maturity date of March 1, 2035. Proceeds from this issuance were used for the repayment of a portio...
AI summary On March 6, 2025, TEC issued $600 million USD in senior unsecured notes with a 5.15% interest rate and a maturity date of March 1, 2035. The proceeds were used to repay a portion of TEC's outstanding commercial paper.
At The Market ("ATM") • Raise approximately $250-$300M per year
AI summary The document outlines a financial goal to raise approximately $250-$300M annually.
Preferred Shares • Room in our capital structure for approx. $500M of hybrid instruments
AI summary The text mentions the availability of approximately $500M in hybrid instruments within the capital structure, indicating potential financial flexibility or investment opportunities.
Debt Financing - 2024 Holdco Refinancing: - US$300M bond at Emera Finance LP - We expect to raise additional capital at operating companies to fund growth
AI summary The document discusses debt financing activities, including a 2024 Holdco Refinancing with a US$300M bond issued at Emera Finance LP, and plans to raise additional capital at operating companies to fund growth.
Asset Sales • Target asset sales of up to 15% of our funding plan to accelerate deleveraging and strengthen the balance sheet 1
AI summary The document mentions a target of asset sales up to 15% of the funding plan to accelerate deleveraging and strengthen the balance sheet.
Further Equity Investment $0.3 billion (2024-2026)
AI summary The document outlines a further equity investment of $0.3 billion for the period 2024-2026. This section likely discusses financial planning, investment strategies, and related regulatory considerations for the specified timeframe.
2. Traditional Financing Plan Supporting Growth - Focused on raising debt at the operating company level - Room in funding plan for additional hybrid capital - Issued $700M of common equity in 2023 via the ATM, DRIP and other employee plans
AI summary The traditional financing plan focuses on raising debt at the operating company level, with room for additional hybrid capital. In 2023, $700M of common equity was issued through the ATM, DRIP, and other employee plans.
Net Debt Financing Debt issued by operating companies to fund growth while maintaining HoldCo debt at ~30-35% of total
AI summary The document discusses net debt financing, focusing on how operating companies issue debt to fund growth while keeping HoldCo debt at approximately 30-35% of total.
Hybrid Capital $750M to $1 billion over the forecast period
AI summary The document mentions a financial allocation of between $750 million and $1 billion over the forecast period, likely related to a hybrid capital initiative.
Asset Sales Pending close of $750M USD NMGC transaction 2025-2029 Funding Plan
AI summary The document discusses a pending $750M USD NMGC transaction and includes a 2025-2029 Funding Plan, though specific details about the transaction or funding are not provided in the text.
Decisive Actions Have Delivered Improvement in Credit Metrics - Closed $1.2B CAD Labrador Island Link transaction - Finalizing the sale of NMGC for net proceeds of $750M USD , set to close in late 2025 - Issued $500M USD of hybrid notes, t...
AI summary The document outlines significant financial actions taken to improve credit metrics, including the closure of a major transaction, the sale of an asset, the issuance of hybrid notes, and the securitization of deferred fuel costs by NSPI.
Net Debt Financing Debt issued by operating companies to fund growth while maintaining HoldCo debt at ~30-35% of total
AI summary The document discusses net debt financing, focusing on how operating companies issue debt to fund growth while keeping HoldCo debt within a target range of 30-35% of total debt.
Target sources of funding for $20B Capital Plan 2025-2029 Funding Plan
AI summary The document discusses the target sources of funding for a $20B Capital Plan over the 2025-2029 period, accompanied by visual representations such as figures and pictures that illustrate the funding plan.
2025 – 2027 Consolidated Funding Plan (in CAD billions) Capital Investment1 $11.1 Reinvested Cash Flow2 $4.1 Utility Debt Issuance $2.3 Corporate Debt Issuance $1.6 ATM and DRIP $1.4 Net Proceeds from NMGC $0.9 Thermal Asset Securitization...
AI summary The 2025–2027 Consolidated Funding Plan outlines various funding sources for capital investment, including reinvested cash flow, debt issuance, ATM and DRIP, and proceeds from NMGC, totaling CAD 11.1 billion.
82% of LTD and hybrids mature beyond 2027 Evaluating various 2026 refinancing scenarios to maintain 50% equity treatment of all hybrid securities while continuing to de-lever at the Holdco Refinancing activity will be in a US entity
AI summary The document discusses the maturation of 82% of LTD and hybrids beyond 2027, and evaluates 2026 refinancing scenarios to maintain 50% equity treatment of hybrid securities while continuing to de-lever at the Holdco Refinancing activity within a US entity.
11% variable rate debt across the portfolio 1 Actions in 2024 to sell assets and raise equity significantly lowered exposure to variable rate debt Utilities have largely termed out their variable rate exposure and either have, or will have...
AI summary In 2024, actions to sell assets and raise equity significantly reduced exposure to 11% variable rate debt. Utilities have largely termed out their variable rate exposure, with interest expenses incorporated into rates by 2026.
Funding Plan Supports Investment Grade Credit Ratings Reinvested cash flow is our primary source of funding Regulated utility debt is issued in accordance with regulated capital structures Equity raised to support investment through asset...
AI summary The funding plan relies on reinvested cash flow and regulated utility debt, with equity raised through asset sales, ATM, DRIP, and hybrid bonds to support investment. The plan maintains a holdco-to-total debt ratio below 35% to balance cash requirements.
Net Debt Financing Debt issued by operating companies to fund growth while maintaining HoldCo debt at ~30-35% of total
AI summary The text discusses Net Debt Financing, focusing on how operating companies issue debt to fund growth while keeping HoldCo debt at approximately 30-35% of total.
Regulatory Arrangements In November 2024, the UARB approved the recovery of ~$158M of Maritime Link Costs for 2025, and an additional ~$42M of financing costs in relation to the $500M of additional Federally guaranteed debt Note: All figur...
AI summary In November 2024, the UARB approved the recovery of approximately $158M in Maritime Link Costs for 2025 and an additional $42M in financing costs related to $500M of federally guaranteed debt.
N-22NSPI (Cleary) RIR 1-11 - Redacted
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Financial Risk We assess NSPI's financial risk profile using our medial volatility financial benchmark tables rather than the financial benchmarks we use for a typical corporate issuer, which reflects the company's lower-risk regulated uti...
AI summary The document assesses NSPI's financial risk profile, noting its lower-risk regulated utility operations and effective management of regulatory risk. It highlights a proposed rate application with average base rate increases and the use of a Fuel Adjustment Mechanism. NSPI's large capital program and reliance on external financing are also discussed, along with projected FFO to debt ratios.
Principal liquidity sources - Total credit facility availability of about C$600 million as of Dec. 31, 2021; and - Cash FFO of about C$380 million.
AI summary The principal liquidity sources for the entity include a total credit facility availability of approximately C$600 million as of December 31, 2021, and cash FFO of about C$380 million.
Liquidity We assess NSPI's liquidity as adequate and anticipate its sources of cash will be 1.1x its uses over the coming 12 months. Furthermore, we project its net sources will remain positive even if its forecast consolidated EBITDA decl...
AI summary The analysis affirms that NSPI has adequate liquidity, with cash sources projected to exceed uses by 1.1x over the next 12 months. Even with a 10% decline in EBITDA, net sources are expected to remain positive, supported by a stable regulatory framework, committed credit facilities, and strong banking relationships. The company is expected to manage its 2025 debt maturity proactively.
3. Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, DBRS expects Emera to continue to support NSPI's capex program with its flexible dividends policy and equity...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, prompting DBRS to expect continued support from Emera through flexible dividends and equity injections.
- As at September 30, 2017, the Company had a Credit Facility of $600 million, of which $342 million was available. - The Credit Facility is used to back stop the Company's $500 million commercial paper program and to partially fund its wo...
AI summary NSPI amended its Credit Facility in June 2017, extending its maturity and adjusting the debt-to-capital ratio. As of September 30, 2017, the Credit Facility had a remaining available amount of $342 million and was used to support the company's commercial paper program and capex requirements.
- NSPI's long-term debt maturities are well spread out, with minimum refinancing risk in the near term. - The Company currently has a debenture covenant, which states that NSPI will not incur funded debt if its funded debt would be in exce...
AI summary NSPI's long-term debt maturities are well spread out, minimizing near-term refinancing risk. A debenture covenant limits funded debt to 75% of total capitalization, but it is not expected to restrict operations or pose challenges in the near to medium term.
3. Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, DBRS expects Emera to continue to support NSPI's capex program with its flexible dividends policy and equity...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, prompting DBRS to expect continued support from Emera through flexible dividends and equity injections.
- As at September 30, 2018, the Company had a Credit Facility of $600 million, of which $217 million was available. - The Credit Facility is used to back stop the Company's $500 million commercial paper program and to partially fund its wo...
AI summary NSPI amended its Credit Facility in October 2018, extending its maturity from October 2021 to October 2023. The facility, worth $600 million, backs the company's $500 million commercial paper program and supports working capital and capex needs. As of September 30, 2018, $217 million of the facility was available and the company was in compliance with debt covenants.
Long-term Debt Maturities (CAD Million – As at September 30, 2018) 2018 2019 2020 2021 2022 Thereafter Total Total Long-term Debt - 95 - 382 - 1,965 2,442 % of Total 0% 4% 0% 16% 0% 80% 100% Summary of Debt
AI summary The table outlines the long-term debt maturities for the entity as of September 30, 2018, showing the distribution of debt across different years and the percentage of total debt for each year, with the majority of debt maturing thereafter.
- As at September 30, 2019, NSPI had a Credit Facility of $600 million, $330 million of which was available. The Credit Facility matures in October 2024. - The Credit Facility is used to backstop the Company's $500 million CP program and t...
AI summary NSPI has a Credit Facility of $600 million, with $330 million available as of September 30, 2019. The facility matures in October 2024 and is used to backstop the Company's $500 million CP program and partially fund working capital and capex. The facility is subject to a debt-to-capital ratio covenant, which NSPI is compliant with.
Commercial Paper Limit $500 million
AI summary The document specifies a commercial paper limit of $500 million, which is likely related to financial regulations or capital management practices.
Nova Scotia Power Inc. DBRS Morningstar January 4, 2022 Commercial Paper Limit $500 million
AI summary Nova Scotia Power Inc. has a commercial paper limit of $500 million as assessed by DBRS Morningstar on January 4, 2022.
(3) Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, DBRS Morningstar expects Emera to continue to support the Company's capex program with a flexible dividends...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, prompting DBRS Morningstar to expect continued support from Emera through flexible dividends and potential equity injections.
4. Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, DBRS Morningstar expects Emera to continue to support the Company's capex program with a flexible dividends...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, prompting DBRS Morningstar to expect continued support from Emera through flexible dividends and equity injections.
under an ambitious time frame. Morningstar DBRS will continue to monitor the Company's progress, especially with the release of a Clean Electricity Solutions Task Force report expected early in 2024. Morningstar DBRS had noted in its most...
AI summary DBRS Morningstar has updated its credit rating for NSPI, noting that the company's earnings and credit metrics were affected by the rate cap under Bill 212. Despite this, the current rating remains supportive, and NSPI is expected to manage capex and dividends prudently. Emera Inc. has supported NSPI through equity injections and a flexible dividend policy.
Financial Outlook NSPI's key credit metrics strengthened in the last 12 months ended September 30, 2024 (LTM 2024), because of the stronger earnings and cash flows, and the reduction in debt following the sale of the $117 million balance i...
AI summary NSPI's credit metrics improved in LTM 2024 due to stronger earnings, cash flows, and reduced debt from the FAM sale. The company expects further improvement in 2024 from a $500 million transfer from NSPML. NSPI has a large capex program, but it plans to finance it prudently to maintain its BBB credit rating. Emera Inc. has supported NSPI through flexible dividends and equity injections.
2. Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, we expect Emera to continue to support the Company's capex program with a flexible dividends policy and equi...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, and Emera is expected to support the company's capital expenditures through dividends and equity injections.
- NSPI has an $800 million credit facility maturing in December 2029. - The credit facility is used to backstop the Company's $800 million commercial paper (CP) program and to partially fund its working capital and capex requirements. Avai...
AI summary NSPI has an $800 million credit facility maturing in December 2029, which supports its commercial paper program and partially funds working capital and capital expenditures. The facility is subject to a debt-to-capital ratio covenant of 70.0%, and NSPI is currently in compliance with this covenant as of September 30, 2024.
2026-2027 GRA Cleary IR-9 Attachment 1 Page 4 of 11 obvious point may seem unwarranted, but there is very little empirical work which indicates that people do in fact behave according to it. Now if an individual is willing to judge the ris...
AI summary This section discusses the relationship between portfolio risk and diversification, using the Capital Asset Pricing Model (CAPM). It explains that as the number of securities in a portfolio increases, the non-systematic risk decreases, and the portfolio's risk is primarily determined by the average beta of the securities.
N-26NSPI (MPA) RIR 1-9 - Redacted
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2026-2027 General Rate Application (M12451) NSPI Responses to MPA Information Requests 1 Request IR-4: 2 3 References: Direct Evidence p. 65: 4 5 "in Q4 2022, NS Power applied to its securities regulators for exemptive relief 6 to permit i...
AI summary NSPI responded to MPA's information request regarding NS Power's application for exemptive relief to resume its commercial paper program following lower credit ratings. The response includes references to the application and the decision by securities regulators granting the relief.
2026-2027 GRA MPA IR-4 Attachment 1 Page 2 of 13 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Page 2 The Filer requests that this application and any supporting materials be held in confidence during the application review process in accord...
AI summary The Filer requests confidentiality for the 2026-2027 GRA MPA IR-4 application, citing that the information relates to NSPI's proposed financing strategy, which is considered commercially and competitively sensitive. The Filer argues that no distributions of Notes will occur before the Exemption Sought is granted, making the request reasonable and not prejudicial to the public interest.
B. Commercial Paper Program and Downgrade 6. Prior to November 21, 2022, NSPI issued commercial paper on a regular basis to fund short-term working capital requirements. All such distributions of commercial paper were made pursuant to the...
AI summary NSPI issued commercial paper before November 21, 2022, under a prospectus exemption in securities legislation of Nova Scotia, Ontario, and other jurisdictions, as outlined in NI 45-106.
II. SUBMISSIONS - 12. Subject to receiving the Exemption Sought, NSPI proposes to issue Notes in Canada in a manner which provides potential purchasers with an appropriate level of investor protection, while being consistent with the expec...
AI summary NSPI proposes to issue Notes in Canada under specific conditions, including a maximum maturity of 365 days, minimum denomination of $250,000, and exclusion from being a securitized product, in line with Canadian commercial paper market practices.
- 13. NSPI expects that funding its short-term working capital requirements through issuances of Notes rather than through draws on its credit facilities will allow it to reduce other indebtedness, reduce its overall borrowing costs and im...
AI summary NSPI plans to issue Notes to fund short-term working capital needs, aiming to reduce borrowing costs and improve its financial position. However, challenges with exemptions under Canadian securities legislation may hinder this approach due to market practices and investor protection requirements.
2026-2027 GRA MPA IR-4 Attachment 1 Page 6 of 13 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Page 6 - 17. Investors that routinely participate in the Canadian commercial paper market are intimately familiar with the approved credit rating...
AI summary The text argues that NSPI, a mature and established utility, should be granted a prospectus-exemption to issue commercial paper despite a credit rating downgrade, citing precedents from other regulatory decisions and emphasizing the sophistication of potential investors and the benefits to stakeholders.
Headnote National Policy 11-203 – Process for Exemptive Relief Applications in Multiple Jurisdictions – Filer granted exemption from the prospectus requirement in connection with trades of commercial paper/short term debt instruments that...
AI summary The filer was granted an exemption from the prospectus requirement for trades of commercial paper and short-term debt instruments that do not meet the rating threshold condition under National Instrument 45-106. The relief is subject to specific conditions outlined in National Policy 11-203.
2026-2027 GRA MPA IR-4 Attachment 1 Page 11 of 13 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 3 - Nova Scotia Utility and Review Board and limit the increase in the Filer's non-fuel rate to 1.8% until the end of 2024. - 9. As a result of...
AI summary The document outlines the impact of credit downgrades on the Filer's ability to use the Commercial Paper Exemption, limiting the maturity of Notes to 365 days and restricting their sale to accredited investors through registered investment dealers in Canada.
Headnote National Policy 11-203 - Process for Exemptive Relief Applications in Multiple Jurisdictions - Filer granted exemption from the prospectus requirement in connection with trades of commercial paper/short term debt instruments that...
AI summary The filer was granted an exemption from the prospectus requirement for trades of commercial paper and short-term debt instruments that do not meet the rating threshold condition under National Instrument 45-106, subject to certain conditions outlined in National Policy 11-203.
Representations This decision is based on the following facts represented by the Filer: - 1. Nova Scotia Power Incorporated (NSPI) is incorporated under the Companies Act (Nova Scotia). The head office ofNSPI is located at 1223 Lower Water...
AI summary Nova Scotia Power Incorporated (NSPI) has a commercial paper program subject to the CP Exemption under National Instrument 45-106. However, due to credit rating downgrades by S&P and DBRS following changes to the Public Utilities Act in Nova Scotia, the Notes no longer meet the CP Exemption criteria.
2026-2027 GRA MPA IR-4 Attachment 2 Page 3 of 4 -3- - 9. As a result of the Downgrades, the Filer is no longer able to rely on the CP Exemption for the distribution of Notes. Following the S&P Downgrade, the Filer ceased distribution of No...
AI summary The GRA MPA IR-4 Attachment 2 discusses the impact of credit rating downgrades on the Filer's ability to use the Commercial Paper Exemption for distributing Notes. It outlines the terms and conditions for the sale of Notes, including maturity, denominations, and restrictions on who can purchase them in Canada.
- (i) to a purchaser that is purchasing as a principal and is a Canadian Qualified Purchaser; and - (ii) through a Canadian Dealer; - (c) each Canadian Dealer has agreed to apply the procedures referred to in paragraph 12 of this decision;...
AI summary The text outlines the conditions under which the exemption sought by Nova Scotia Power Inc. will apply, including the requirement that purchases be made by Canadian Qualified Purchasers or through Canadian Dealers, and the termination date of the exemption on February 9, 2028.
N-27NSPI (NSEB) RIR 1-152 - Redacted (settlement agreement attached at IR-1)
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Federal Loan Guarantee: On September 24, 2024, the Government of Canada finalized an agreement with NSPI, NSP Maritime Link Inc. ("NSPML") and the Province of Nova Scotia on terms and conditions for a federal loan guarantee of $500 million...
AI summary The Government of Canada finalized a $500 million federal loan guarantee for NSPML in September 2024. The UARB approved NSPML's application to issue debt, transfer proceeds to NSPI, and increase annual assessment charges. On February 18, 2025, the UARB also approved an increase in 2025 fuel rates to service the debt.
Defined Contribution Plan The Company also provides a defined contribution pension plan for certain employees. The Company's contribution for the year ended December 31, 2024, was $7 million (2023 – $6 million).
AI summary The Company provides a defined contribution pension plan for certain employees, with contributions of $7 million in 2024, up from $6 million in 2023.
As at December 31, 2024, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2025 2026 2027 2028 2029 Thereafter Total Minimum lease payments to be re...
AI summary The text presents a table showing future minimum lease payments to be received by the company for each of the next five years and in aggregate thereafter, as of December 31, 2024. The section title 'RELATED PARTY TRANSACTIONS' suggests that the following content will discuss transactions involving related parties.
As at December 31, 2024, NSPI had $150 million due to Emera and affiliates (December 31, 2023 – $123 million).
AI summary As of December 31, 2024, Nova Scotia Power Inc. (NSPI) had a debt of $150 million owed to Emera and its affiliates, an increase from $123 million as of December 31, 2023.
(2) Banker's acceptances are issued under NSPI's non-revolving term facility. In December 2024, this facility was repaid in full. (3) NSPI has revolving credit facility to finance the BESS Project. Refer to "Financing Activity" section bel...
AI summary NSPI has repaid a non-revolving term facility in December 2024 and has a revolving credit facility to finance the BESS Project. Notes are extendable until 2056 at the holders' option.
Credit Facilities NSPI can issue up to $800 million under its commercial paper program, of which the full amount outstanding is backed by the Company's operating credit facility. The amount of commercial paper issued results in an equal am...
AI summary NSPI can issue up to $800 million under its commercial paper program, which is backed by its operating credit facility. As of December 31, 2024, the revolving credit facility had standby fees of 0.2% and a weighted average interest rate of 3.88% on outstanding borrowings.
Financing Activity On December 16, 2024, NSPI repaid its $300 million unsecured non-revolving credit facility set to mature in June 2025. On June 13, 2024, NSPI entered a non-revolving credit facility to finance BESS Project. NSPI can requ...
AI summary NSPI repaid a $300 million credit facility in December 2024 and entered into a new non-revolving credit facility to finance the BESS Project in June 2024. The facility allows quarterly draws up to $120 million or 45.06% of eligible BESS Project costs, with utilization of $19 million as of December 31, 2024. NSPI also amended its revolving and non-revolving term facilities in June 2024, primarily extending maturities.
E. Guarantees and Letters of Credit As at December 31, 2024, the Company had $104 million USD (2023 – $104 million USD) of guarantees outstanding with terms of varying lengths, all of which are issued on behalf of its subsidiary, NSPEMI. A...
AI summary As of December 31, 2024, the Company had $104 million USD in guarantees and $7 million USD and $3 million CAD in letters of credit outstanding, all issued on behalf of its subsidiary, NSPEMI.
21. REDEEMABLE PREFERRED STOCK On August 30, 2024, NSPI authorized 800,000 redeemable preferred shares and issued 400,000 redeemable preferred shares ("Series A") at a par value of $25 per share to finance the Battery Energy Storage System...
AI summary NSPI issued 400,000 redeemable preferred shares at $25 per share to finance the Battery Energy Storage System Project. These shares are recorded as a liability on the balance sheet, and dividends are treated as interest expense.
Federal Loan Guarantee: On September 24, 2024, the Government of Canada finalized an agreement with NSPI, NSP Maritime Link Inc. ("NSPML") and the Province of Nova Scotia on terms and conditions for a federal loan guarantee of $500 million...
AI summary The Government of Canada provided a $500 million federal loan guarantee to NSPML to manage unrecovered costs from the Muskrat Falls project delay. The UARB approved NSPML's debt issuance and NSPI's application to increase 2025 fuel rates to service the debt.
Cash Flow from Financing Activities Net cash used in financing activities increased $1,155 million to $514 million in 2024 compared to net cash provided by financing activities of $641 million in 2023 primarily due to lower proceeds from l...
AI summary Net cash used in financing activities increased to $514 million in 2024, compared to $641 million in 2023, due to lower long-term debt proceeds and higher net repayments under credit facilities, along with common stock issuance in 2023.
Credit Available millions of dollars Maturity Facility Utilized Capacity Revolving credit facility June 2029 $ 800 $ 189 $ 611 NSPI has debt covenants associated with its credit facilities. Covenants are tested regularly and the Company is...
AI summary NSPI has a revolving credit facility with a maturity date of June 2029 and a debt to capital ratio covenant of 0.70:1, which it is currently in compliance with as of December 31, 2024. The company is adhering to its debt covenants.
On December 16, 2024, NSPI repaid its $300 million unsecured non-revolving credit facility set to mature in June 2025. On June 13, 2024, NSPI entered a non-revolving credit facility to finance the BESS Project. NSPI can request funds under...
AI summary NSPI repaid a $300 million credit facility in December 2024 and entered into a new non-revolving credit facility to fund the BESS Project. The facility allows quarterly draws up to $120 million or 45.06% of eligible costs. NSPI also amended its revolving and non-revolving credit facilities, extending maturities and adjusting amounts. As of December 31, 2024, 95% of NSPI's debt is fixed rate with an average term of 17 years.
Defeasance Upon privatization of the former provincially owned Nova Scotia Power Corporation ("NSPC") in 1992, NSPI was appointed to manage and administer a portfolio of defeasance securities. The securities provide principal and interest...
AI summary The text discusses the defeasance securities managed by Nova Scotia Power Inc. (NSPI) on behalf of Nova Scotia Power Finance Corporation (NSPFC) following the privatization of Nova Scotia Power Corporation in 1992. The securities, totaling $200 million as of 2024, are held in trust and used to service defeased debt, with a significant portion invested in related debt to eliminate risk.
Liquidity and Capital Market Risk Liquidity risk relates to NSPI's ability to ensure sufficient funds are available to meet its financial obligations. NSPI's access to capital and cost of borrowing is subject to several risk factors, inclu...
AI summary The document discusses liquidity and capital market risks faced by Nova Scotia Power Inc. (NSPI), including the impact of financial market conditions, credit ratings, and interest rate fluctuations on its ability to access capital and manage financing costs. A decrease in credit ratings could lead to higher borrowing costs and the need for additional collateral.
Observations - NSPI Finance & Accounting Cost as Percent of Revenue in 2024 is 0.18 percentage points below (or better than) the industry group median - NSPI Finance & Accounting Cost as Percent of Revenue decreased 0.03 percentage points...
AI summary NSPI's Finance & Accounting Cost as a Percent of Revenue in 2024 is 0.18 percentage points below the industry median. From 2019 to 2023, this cost decreased by 0.03 percentage points but increased by 6% in nominal terms, while Regulated Revenue increased by 17% over the same period.
2026-2027 GRA NSEB IR-85 Confidential Attachment 1 has been removed due to confidentiality. 1 Request IR-86: 5 of the extra costs (financing fees, accounting fees, legal fees, etc.) that will be incurred 6 by proceeding in two separate deb...
AI summary NS Power discusses the anticipated timeline for securitization, noting that enabling regulations are not yet in place, and it plans to apply for securitization in Q4 2025 with implementation by Q1 2026. It also mentions that it will not defer costs to the next GRA proceeding but will include them in the securitization balance. The company initially considered two separate debt issuances but now anticipates a single issuance based on market interest.
2. Limited access to equity markets NSPI has limited access to common equity markets to fund any free cash flow deficits. As such, we expect Emera to continue to support the Company's capex program with a flexible dividends policy and equi...
AI summary NSPI has limited access to common equity markets for funding free cash flow deficits, so Emera is expected to support the capex program through flexible dividends and equity injections when necessary.
- NSPI has an $800 million credit facility maturing in December 2029. - The credit facility is used to backstop the Company's $800 million commercial paper (CP) program and to partially fund its working capital and capex requirements. Avai...
AI summary NSPI has an $800 million credit facility maturing in December 2029, used to backstop its commercial paper program and support working capital and capital expenditures. The facility is subject to a debt-to-capital ratio covenant of 70.0%, which NSPI is currently in compliance with as of September 30, 2024.
NON-CONFIDENTIAL 1 Request IR-106: 3 Reference: Exhibit N-8, Appendix 10A, Cost of Capital Report, Figure 24, page 49 of 87 4 5 Please confirm, or explain otherwise, that using the historical Canadian MRP rather than 6 an average of Canadi...
AI summary The text contains two requests related to the cost of capital and flotation costs. Request IR-106 asks for confirmation on the use of historical Canadian MRP in calculating CAMP, while Request IR-110 seeks clarification on flotation costs and financing flexibility. The response confirms the use of historical Canadian MRP and provides context on the integration of U.S. and Canadian markets.