N-12025 Annual Financial Statements - Redacted
54 passages
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).
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).
Nova Scotia Power Inc. Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 141 $ 160 Adjustments to reconcile net income to net cash provided by operating act...
AI summary The consolidated statements of cash flows for Nova Scotia Power Inc. show net income of $141 million in 2025 compared to $160 million in 2024. Net cash provided by operating activities was $118 million in 2025, a significant decrease from $919 million in 2024. The FAM (Fuel Adjustment Mechanism) had a negative impact in 2025 with a $158 million outflow, contrasting with a $451 million inflow in 2024.
Derivatives and Hedging Activities NSPI's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are overseen by the Board of Directo...
AI summary NSPI's risk management framework, overseen by the Board of Directors, uses derivatives like forwards and swaps to hedge commodity and foreign exchange risks. Derivatives are accounted for under regulatory treatment, with gains/losses passed to customers via the FAM. Physical contracts meeting NPNS criteria are not recognized on the balance sheet. The NSEB approved this approach, and NSPI classifies derivative gains/losses across various expense categories.
FAM: NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered from c...
AI summary NSPI's Fuel Adjustment Mechanism (FAM), approved by NSEB, allows recovery of fluctuating fuel costs through annual rate adjustments. A 2025 NSEB audit of fiscal 2022-2023 found $1 million in disallowed costs, impacting NSPI's Q4 2025 financials. The FAM defers cost differences to regulatory assets/liabilities for later recovery.
The change in the FAM regulatory (liability) asset balances consisted of the following: millions of dollars 2025 2024 FAM regulatory (liability) asset – Balance January 1 $ (56) $ 395 Total under (over) recovery of current period fuel cost...
AI summary The change in the FAM regulatory (liability) asset balances from 2024 to 2025 shows a significant shift, with the balance increasing from -56 million to 102 million dollars, driven by over-recovery of fuel costs in Q4 2024.
"FAM and other deferrals" recognized in the Consolidated Statements of Income consisted of the following: For the Year ended December 31 millions of dollars 2025 2024 FAM: Under (over)-recovery of fuel costs $ (161) $ 350 2020 – 2021 FAM d...
AI summary The Consolidated Statements of Income show that 'FAM and other deferrals' include under (over)-recovery of fuel costs, DSM program costs, and storm restoration expenses. In 2025, these deferrals totaled $137 million, compared to $350 million in 2024. The 2024 figure includes the sale of the FAM regulatory asset to Invest Nova Scotia.
(3) 2024 includes the Q1 2024 FAM disallowance related to the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021. The disallowance of $3 million and $1 million of associated interest expense, was...
AI summary The text discusses the disallowance of fuel adjustment mechanism (FAM) expenses in 2024 and 2025, related to audit findings and recommendations by the Nova Scotia Energy Board (NSEB) for fiscal years 2020-2021 and 2022-2023, respectively. These disallowances were returned to customers through the FAM.
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, NSPI, NSPML, and Nova Scotia agreed to a $500M federal loan guarantee for NSPML to address unrecovered costs from delays in the Muskrat Falls project. The NSEB approved NSPML's debt issuance, with proceeds transferred to NSPI to offset prior assessments and recover costs over 28 years via increased annual charges.
FAM Asset Sale: On April 17, 2024, the NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted to...
AI summary The NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia on April 17, 2024, with the transaction closing on April 30, 2024. NSPI received the funds and now collects amortization and financing costs from customers over 10 years, remitting quarterly payments to Invest Nova Scotia.
6. INTEREST EXPENSE, NET As at Year ended December 31 millions of dollars 2025 2024 Interest on debt $ 181 $ 197 Interest on FAM balance 1 (19) Interest revenue, net (7) (9) Allowance for borrowed funds used during construction (8) (6) Oth...
AI summary The section discusses interest expense, net, for the years ended December 31, 2025 and 2024, including interest on debt, interest on FAM balance, interest revenue, and other components. It provides a breakdown of these expenses in millions of dollars.
As at December 31 December 31 millions of dollars Classification 2025 2024 Right-of-use asset Other long-term assets $ 20 $ 20 Lease liabilities: Current Other current liabilities 1 - Long-term Other long-term liabilities 21 21 Total lease...
AI summary The document provides a summary of lease-related financial figures for NSPI as of December 31, 2025, and 2024, including right-of-use assets, lease liabilities, and lease expenses. It also notes that a significant portion of the lease expense relates to variable costs for power generation facility finance leases recognized in 'Fuel for generation and purchased power'.
2025 Annual Financial Statements Attachment 2 Page 44 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI is a participant in a 102 MW wind energy project with the South Canoe Development Partnership for South Canoe Wind Farm, in New Ro...
AI summary NSPI participates in two wind energy projects in Nova Scotia, owning 49% each. In 2025, NSPI recorded $7 million (South Canoe Wind Farm) and $2 million (Sable Wind Farm) in expenses under 'Fuel for generation and purchased power' and 'OM&G'.
2025 Annual Financial Statements Attachment 3 Page 3 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI is working closely with the provincial government as the Province aims to transition off coal and reach 80 per cent renewable elect...
AI summary NSPI collaborates with the provincial government on renewable energy goals, operates under the Public Utilities Act, and uses a Fuel Adjustment Mechanism (FAM) to recover fuel costs. It is regulated by the NSEB with a cost-of-service model and ROE range of 8.75%-9.25%. NSPI is a subsidiary of Emera and holds interests in NSPEMI and WTI.
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 net income and operating revenues for the periods ending December 31, 2024 and 2025, noting increases in operating revenues and fuel costs, as well as impacts from the Cybersecurity Incident and changes in income tax recovery.
Production volumes by fuel type and average fuel cost are summarized in the following table: Three months ended Year ended For the December 31 December 31 GWh (except as indicated) 2025 2024 2025 2024 Coal 1,329 976 4,370 3,347 Natural gas...
AI summary The document presents production volumes by fuel type and average fuel costs for a period ending December 31, 2025. It highlights the shift in energy production from coal to renewables and notes a significant over-recovery of fuel costs due to a refund received in Q4 2024.
Highlights of the changes in fuel for generation and purchased power are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Fuel for generation and purchased power – 2024 $...
AI summary The document highlights changes in fuel costs for generation and purchased power for the periods ending December 31, 2024, and December 31, 2025, with various factors influencing these changes, including the increased Maritime Link assessment, changes in generation mix, and commodity prices. The FAM and FAM Regulatory Deferral are also discussed.
Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...
AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025, and December 31, 2024, including increases in receivables, income taxes receivable, and pension assets, as well as changes in debt levels and regulatory assets and liabilities. These changes are attributed to factors like capital investment, timing of payments, and tax credits.
Transactions between the Company and its related parties reported in the Consolidated Statements of Income and Consolidated Balance Sheets are as follows: For the Year ended millions of dollars December 31 Nature of Service Presentation 20...
AI summary The document outlines transactions between the Company and its related parties, including sales and purchases of services and energy, and details the sale of development assets related to the Wasoqonatl transmission line project for $15 million.
Foreign Exchange Risk The Company is exposed to foreign currency exchange rate changes. NSPI may enter foreign exchange forward and swap contracts to limit exposure on certain foreign currency transactions such as fuel purchases and capita...
AI summary NSPI manages foreign exchange risk through USD forward contracts to hedge fuel and capital costs, with 64% of 2026 USD requirements hedged at $1.3569 and 27% of 2027 requirements hedged at $1.3541. The company's regulatory framework allows recovery of prudently incurred foreign exchange costs, and derivatives are used solely for risk mitigation, not speculation.
Coal: A substantial portion of NSPI's coal supply comes from international suppliers, which was contracted at or near the market prices prevailing at the time of contract. The Company has entered into fixed-price and index price contractua...
AI summary NSPI sources a significant portion of its coal from international suppliers through fixed-price and index-linked contracts. As of December 31, 2025, 81% of 2026 coal needs and 8% of 2027 needs are hedged, reflecting a strategic approach to fuel procurement and cost management.
Heavy Fuel Oil: NSPI periodically enters into physical and/or financial contracts based on forecast heavy fuel oil purchases to meet load and system security requirements. Volumes exposed to market prices are managed using financial instru...
AI summary NSPI manages heavy fuel oil procurement through hedging strategies to mitigate market price risks, ensuring system security and load requirements. As of December 31, 2025, all 2026 forecasted heavy fuel oil needs are fully hedged.
RISK MANAGEMENT INCLUDING FINANCIAL INSTRUMENTS NSPI's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are monitored by the Bo...
AI summary NSPI's risk management framework includes oversight by the Board of Directors and use of financial instruments like derivatives to hedge commodity and foreign exchange risks. Derivatives are accounted for under regulatory accounting, with gains/losses recovered via the Fuel Adjustment Mechanism (FAM). The Credit Risk Oversight Committee and independent corporate team monitor risks.
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, economic dispatch, and factors like plant outages, carbon pricing (Nova Scotia OBPS), renewable energy availability, and environmental compliance. The document references the MD&A section for detailed fuel and generation cost data.
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 NSPI participates in Nova Scotia's OBPS carbon pricing program, effective 2023, imposing escalating carbon prices ($65-$170/tonne) for GHG emissions exceeding intensity standards. Compliance costs are recoverable via NSPI's FAM mechanism.
FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating Fuel Costs from customers through annual fuel rate adjustments. Differences between prudently incurred Fuel Costs and amounts recovered from customers through electrici...
AI summary NSPI's Fuel Adjustment Mechanism (FAM) allows recovery of fluctuating fuel costs via annual rate adjustments. In 2024, NSPI sold $117M of its FAM regulatory asset to Invest Nova Scotia, with amortization and financing costs collected from customers over 10 years. A separate $500M federal loan guarantee agreement was finalized to help manage replacement energy costs.
2025 Annual Financial Statements Attachment 5 Page 11 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) that was required during the several years of delay in the Muskrat Falls hydroelectricity project. On November 29, 2024, the NSEB appro...
AI summary The NSEB approved NSPML's debt issuance to refund NSPI, with proceeds applied to the FAM regulatory asset balance. NSPI then sought a 2025 fuel rate increase to service the debt. Key entities involved include NSEB, NSPML, and NSPI, with FAM being a central topic.
2022 GRA and Settlement Agreement On February 2, 2023, the NSEB approved the GRA Settlement Agreement between NSPI, key customer representatives and participating interest groups. This resulted in average customer rate increases of 6.9 per...
AI summary The 2022 GRA Settlement Agreement approved by NSEB on February 2, 2023, resulted in 6.9% and 6.5% average rate increases in 2023 and 2024, respectively. It established storm and DSM riders for cost recovery, with the storm rider enabling recovery of major storm restoration costs exceeding $10M annually, and the DSM rider allowing NSPI to recover DSM program costs via a regulatory asset/liability.
Maritime Link NSPI has a contractual obligation to pay NSPML, a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On September 25, 2024, NSPI and NSPML filed application...
AI summary NSPI has a 38-year contractual obligation to pay NSPML for the Maritime Link. In 2024, NSPI and NSPML filed applications regarding a federal loan guarantee, with NSPML receiving NSEB approval to collect up to $201 million from NSPI for cost recovery, including a monthly holdback mechanism. Funds from NSPML's debt issuance were applied to the FAM regulatory asset balance.
FAM Audit Pursuant to the FAM Plan of Administration, NSPI's fuel costs are subject to independent audit. On February 21, 2024, the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021 were publicl...
AI summary NSPI's FAM audit by NSEB revealed disallowances of $3M (2020-2021) and $1M (2022-2023), recorded in 'FAM and other deferrals' with interest expenses, and returned to customers. Financial details are in note 5 of NSPI's 2025 consolidated statements.
APPENDIX A – DEFINITIONS For convenience, terms used throughout this 2025 AIF of Nova Scotia Power Incorporated shall have the following meanings: - "AFUDC" means allowance for funds used during construction and represents the cost of fina...
AI summary Appendix A defines key terms used in NSPI's 2025 Annual Information Form, including regulatory, financial, and operational terms such as AFUDC, FAM, DSM, COMFIT, and cybersecurity incident definitions. These terms relate to NSPI's compliance, capital planning, and regulatory frameworks.
Operating Revenues For Q4 2025, operating revenues increased $243 million compared to Q4 2024 and, excluding decreased MTM losses of $19 million, increased $224 million. The increase was due to higher storm cost recoveries at TEC and NSPI...
AI summary Operating revenues rose $243M in Q4 2025 (vs. Q4 2024) and $1.576B annually, driven by storm cost recoveries at TEC/NSPI, new base rates, fuel cost recoveries, and currency effects. Exclusions include MTM losses/gains adjustments and OM&G offsets.
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 Cash and cash equivalents $ 153 I...
AI summary The Consolidated Balance Sheets show significant changes between December 31, 2024, and December 31, 2025, including an increase in cash and cash equivalents due to operational cash flow and debt proceeds, a decrease in regulatory assets due to lower storm cost recovery and FX effects, and an increase in receivables and other assets due to higher commodity prices and pension returns.
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.
Florida Electric Utility For the Three months ended December 31 Year ended December 31 millions of USD (except as indicated) 2025 2024 2025 2024 Operating revenues – regulated electric $ 706 $ 582 $ 3,115 $ 2,526 Regulated fuel for generat...
AI summary The financial performance of Florida Electric Utility is presented for the three months and year ended December 31, 2025, showing operating revenues, regulated fuel costs, and contributions to net income. Average fuel costs remain stable at around $31 per MWh.
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.
Canadian Electric Utilities' contribution to consolidated net income is summarized in the following table: For the Three months ended December 31 Year ended December 31 millions of dollars 2025 2024 2025 2024 NSPI $ 22 $ 71 $ 141 $ 160 Equ...
AI summary The text presents a table showing Canadian Electric Utilities' contribution to consolidated net income for the periods ending December 31, 2024 and 2025, including a refund of previous NSPML assessment payments impacting average fuel costs.
Annual production volumes are summarized in the following table: Production Volumes (GWh) 2025 2024 Coal 4,370 3,347 Natural gas 1,403 2,317 Purchased power 391 620 Oil 295 132 Petcoke 279 374 Total non-renewables 6,738 6,790 Purchased pow...
AI summary The document provides annual production volumes for various energy sources in 2025 and 2024, highlighting changes in coal, natural gas, oil, and renewables. It also discusses how NSPI's fuel costs are influenced by commodity prices and the generation mix, emphasizing the role of renewable energy and power purchase agreements.
Transactions with Related Parties In the ordinary course of business, Emera provides energy and other services and enters into transactions with its subsidiaries, associates and other related companies on terms similar to those offered to...
AI summary Emera's transactions with related parties include intercompany eliminations, a $185 million expense for NSPI related to the Maritime Link assessment, a $16 million purchase from M&NP, and a $15 million asset sale to WTI. As of December 31, 2025, $32 million was owed to related parties.
Realized and Unrealized Gains (Losses) Recognized in Net Income For the Year ended December 31 millions of dollars 2025 2024 Regulatory Deferral: Regulated fuel for generation and purchased power (1) $ (14) $ (44) HFT Derivatives: Non-regu...
AI summary The table presents realized and unrealized gains and losses recognized in net income for 2025 and 2024, with key items including regulated fuel for generation, non-regulated operating revenues from HFT derivatives, and other derivatives such as OM&G. Net gains totaled $517 million in 2025 and $121 million in 2024.
2025 Annual Financial Statements Attachment 6 Page 80 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 outlines Emera's accounting treatment for derivatives, distinguishing between hedge accounting, regulatory accounting, and HFT classification. Derivatives meeting documentation requirements are deferred to AOCI or regulatory assets/liabilities, with gains/losses recognized upon settlement. Non-hedged derivatives impact net income, while transportation capacity from trading is capitalized. Cash flows from derivatives align with hedged items.
NSPI FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered fr...
AI summary NSPI's Fuel Adjustment Mechanism (FAM), approved by the NSEB, allows recovery of fluctuating fuel costs through annual rate adjustments. Differences between prudently incurred costs and recovered amounts are deferred as regulatory assets/liabilities and adjusted in subsequent periods.
Fuel Recovery and Other Cost Recovery Clauses: TEC has a fuel recovery clause approved by the FPSC, allowing the opportunity to recover fluctuating fuel expenses from customers through annual fuel rate adjustments. The FPSC annually approv...
AI summary TEC's fuel recovery clause allows recovery of fluctuating fuel costs via annual adjustments. A $138 million USD mid-course adjustment was approved by FPSC in May 2024, reflecting lower 2024 natural gas prices than previously projected. Differences between actual costs and recovered amounts are deferred as regulatory assets/liabilities.
Federal Loan Guarantee ("FLG"): On September 24, 2024, the Government of Canada finalized an agreement with NSPI, NSPML and the Province of Nova Scotia (the "Province") on terms and conditions for a FLG of $500 million in debt to be issued...
AI summary The Canadian government finalized a $500 million FLG agreement with NSPI, NSPML, and Nova Scotia to address unrecovered costs from the Muskrat Falls project delay. The NSEB approved NSPML's debt issuance, with proceeds transferred to NSPI to offset prior assessments and recover costs over 28 years via increased annual charges.
FAM Asset Sale: On April 17, 2024, the NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted to...
AI summary The NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia on April 17, 2024. The transaction closed on April 30, 2024, with funds remitted to NSPI. NSPI collects amortization and financing costs from customers over 10 years, remitting quarterly payments to Invest Nova Scotia.
Fuel Recovery: PGS recovers the costs it pays for gas supply and interstate transportation for system supply through its Purchased Gas Adjustment Clause ("PGAC"). This clause is designed to recover actual costs incurred by PGS for purchase...
AI summary PGS recovers gas supply and transportation costs via the Purchased Gas Adjustment Clause (PGAC), which adjusts monthly based on an annual cap set by the FPSC. This mechanism recovers actual costs for gas, storage, and pipeline services incurred by PGS.
Fuel Recovery: NMGC recovers gas supply costs through a PGAC. This clause recovers actual costs for purchased gas, gas storage services, interstate pipeline capacity, and other related items associated with the purchase, transmission, dist...
AI summary NMGC uses a PGAC to recover gas supply costs, adjusting monthly charges based on expected costs and reconciling annually with NMPRC. A four-year PGAC continuation was approved in December 2024, valid until December 2028.
Fuel Recovery: BLPC's fuel costs flow through a fuel pass-through mechanism which provides opportunity to recover all prudently incurred fuel costs from customers in a timely manner. The calculation of the fuel charge is adjusted on a mont...
AI summary BLPC's fuel costs are recovered via a fuel pass-through mechanism, allowing timely recovery of prudently incurred costs. Fuel charges are calculated monthly and require FTC approval. This ensures alignment between actual costs and customer recoveries.
Base Rates: There is a fuel pass-through mechanism and tariff review policy with new rates submitted every three years. On August 1, 2024, as required by the GBPA Operating Protocol and Regulatory Framework Agreement, GBPC filed a rate pla...
AI summary The document outlines a fuel pass-through mechanism and a three-year tariff review policy. On August 1, 2024, GBPC submitted a rate plan proposal in compliance with the GBPA Operating Protocol and Regulatory Framework Agreement.
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.
30. Non-Controlling Interest in Subsidiaries As at millions of dollars December 31 2025 December 31 2024 Preferred shares of GBPC $ 14 $ 14 Preferred shares of GBPC
AI summary This section discusses the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, showing a value of $14 million in both years.
The following Account numbers were added in 2025: Account Number Account Description 175700 WASOQONATL TRANSMISSION 210200 SHORT TERM NOTES 211250 AP LTSA 213300 AP COMMON SHARE DEDUCTION 213350 AP PARKING PAYROLL DEDUCTION 213360 AP TRANS...
AI summary The document lists new account numbers and a line of business added in 2025, including accounts related to fuel adjustment mechanisms, demand-side management, and an executive stock option plan, along with the addition of an EV Charging line of business.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 212650 AP UNION DUES RELOCATION ALLOW 212700 AP LONG TERM DISABILITY 212750 AP GOOD NEIGHBOUR ENERGY FUND 212800 AP CIS REFUND CLEARING 212850 AP CONSUMER DEPOSITS 212900 AP...
AI summary The text presents a list of account segments with their corresponding descriptions, including items such as union dues, disability, energy funds, consumer deposits, and various liabilities and accrued expenses. These accounts are related to financial and operational obligations of an organization.
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.
N-2Refiled Statements - NSPI - Redacted
69 passages
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 operating revenues, expenses, and net income across three months and year-ended periods for 2024 and 2025. Key figures include operating revenues of $504M (2025) and $1,943M (year-ended), with significant expenses related to fuel, depreciation, and demand-side management cost recovery riders. Net income shows a decline from $57M (2024) to $32M (2025).
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. reported operating revenues of $1,944 million in 2025, up from $1,855 million in 2024. Operating expenses increased to $1,708 million in 2025, driven by higher fuel costs and FAM deferrals. Net income declined to $141 million in 2025 from $160 million in 2024, reflecting reduced income before taxes and higher interest expenses.
Nova Scotia Power Inc. Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 141 $ 160 Adjustments to reconcile net income to net cash provided by operating act...
AI summary This section presents the consolidated cash flow statements for Nova Scotia Power Inc. for the years 2025 and 2024, detailing cash flows from operating, investing, and financing activities, as well as changes in cash and supplemental disclosures.
Derivatives and Hedging Activities NSPI's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are overseen by the Board of Directo...
AI summary NSPI manages commodity and foreign exchange risks through derivatives like forwards and swaps, with accounting treatments under NPNS and regulatory frameworks. The NSEB approved derivative accounting, with gains/losses impacting fuel costs and refunded via FAM. Physical contracts meeting NPNS criteria are not recognized on the balance sheet.
2025 Annual Financial Statements Attachment 2 Page 16 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED)
AI summary This document is a redacted page from the 2025 Annual Financial Statements Attachment 2, containing confidential information. It includes references to financial terms and acronyms relevant to regulatory proceedings in Nova Scotia.
Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project to create a reliability intertie between Nova Sc...
AI summary The Wasoqonatl transmission line project, a reliability intertie between Nova Scotia and New Brunswick, is led by NSPI, CIB, and WMA through WTI. NSPI holds 50% indirect voting interest in WTI, with NSEB approving a $685 million capital investment, including AFUDC, for the project.
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.
FAM: NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered from c...
AI summary NSPI's Fuel Adjustment Mechanism (FAM) allows cost recovery of fluctuating fuel expenses, with annual adjustments and deferrals to regulatory assets/liabilities. The NSEB disallowed $1M plus interest in 2025 related to 2022-2023 audits, impacting Q4 2025 financials.
The change in the FAM regulatory (liability) asset balances consisted of the following: millions of dollars 2025 2024 FAM regulatory (liability) asset – Balance January 1 $ (56) $ 395 Total under (over) recovery of current period fuel cost...
AI summary The change in the Fuel Adjustment Mechanism (FAM) regulatory liability asset balances from 2024 to 2025 is detailed, showing a shift from a liability of $395 million to an asset of $102 million, driven by over-recovery of fuel costs and interest adjustments.
"FAM and other deferrals" recognized in the Consolidated Statements of Income consisted of the following: For the Year ended December 31 millions of dollars 2025 2024 FAM: Under (over)-recovery of fuel costs $ (161) $ 350 2020 – 2021 FAM d...
AI summary The text provides a breakdown of 'FAM and other deferrals' recognized in the Consolidated Statements of Income for 2025 and 2024, showing changes in fuel cost recovery and other regulatory adjustments, including the sale of a FAM regulatory asset in Q2 2024.
(3) 2024 includes the Q1 2024 FAM disallowance related to the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021. The disallowance of $3 million and $1 million of associated interest expense, was...
AI summary The text outlines two disallowances related to the Fuel Adjustment Mechanism (FAM) in fiscal years 2024 and 2025. In 2024, a disallowance of $3 million and $1 million in interest was returned to customers due to audit findings from fiscal 2020 and 2021. In 2025, a $1 million disallowance and associated interest was returned following audit findings from fiscal 2022 and 2023.
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 On September 24, 2024, Canada finalized a $500M loan guarantee agreement with NSPI, NSPML, and Nova Scotia to address unrecovered costs from delays in the Muskrat Falls project. NSEB approved NSPML's debt issuance on November 29, 2024, with proceeds transferred to NSPI on December 16, 2024, applied against the FAM regulatory asset balance.
FAM Asset Sale: On April 17, 2024, the NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted to...
AI summary The NSEB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia on April 17, 2024. The transaction closed on April 30, 2024, with NSPI collecting amortization and financing costs from customers over 10 years, remitting quarterly to Invest Nova Scotia.
6. INTEREST EXPENSE, NET As at Year ended December 31 millions of dollars 2025 2024 Interest on debt $ 181 $ 197 Interest on FAM balance 1 (19) Interest revenue, net (7) (9) Allowance for borrowed funds used during construction (8) (6) Oth...
AI summary The table presents interest expense, net, for the years ended December 31, 2025 and 2024, including interest on debt, interest on FAM balance, interest revenue, net, allowance for borrowed funds used during construction, and other expenses.
As at December 31 December 31 millions of dollars Classification 2025 2024 Right-of-use asset Other long-term assets $ 20 $ 20 Lease liabilities: Current Other current liabilities 1 - Long-term Other long-term liabilities 21 21 Total lease...
AI summary The document presents financial data for NSPI as of December 31, 2025, including lease liabilities and expenses. NSPI recorded a lease expense of $116 million in 2025, with a significant portion related to variable costs for power generation facility finance leases under the Fuel Adjustment Mechanism.
2025 Annual Financial Statements Attachment 3 Page 3 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI is working closely with the provincial government as the Province aims to transition off coal and reach 80 per cent renewable elect...
AI summary NSPI is transitioning to renewable energy under provincial and federal climate goals, operating under the Public Utilities Act and a cost-of-service model. It uses a Fuel Adjustment Mechanism (FAM) to recover fuel costs and is regulated by the Nova Scotia Energy Board (NSEB). NSPI's ROE range is 8.75-9.25%, with a 50% indirect stake in WTI and a 100% investment in NSPEMI. Seasonal energy demand and weather impacts are noted.
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.
Production volumes by fuel type and average fuel cost are summarized in the following table: Three months ended Year ended For the December 31 December 31 GWh (except as indicated) 2025 2024 2025 2024 Coal 1,329 976 4,370 3,347 Natural gas...
AI summary The table summarizes production volumes by fuel type and average fuel costs for the periods ending December 31, 2025, and December 31, 2024. It shows a decrease in coal and natural gas production, an increase in renewables, and a significant over-recovery of fuel costs in Q4 2024 due to a refund received by NSPI.
Highlights of the changes in fuel for generation and purchased power are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Fuel for generation and purchased power – 2024 $...
AI summary The document discusses changes in fuel for generation and purchased power, including an increased Maritime Link assessment, changes in generation mix, increased sales volumes, and variations in carbon tax and commodity prices. It also references the Fuel Adjustment Mechanism (FAM) and its regulatory deferral.
Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...
AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025, and December 31, 2024, including increases in assets like receivables and property, plant and equipment, and changes in liabilities such as bank indebtedness and short-term debt. These changes are attributed to factors like timing of billing, capital investments, and regulatory deferrals.
Transactions between the Company and its related parties reported in the Consolidated Statements of Income and Consolidated Balance Sheets are as follows: For the Year ended millions of dollars December 31 Nature of Service Presentation 20...
AI summary The document outlines transactions between the Company and related parties, including sales and purchases of services and assets. Notably, NSPI sold development assets related to the Wasoqonatl transmission line project to WTI for $15 million, with no gain or loss recognized.
Foreign Exchange Risk The Company is exposed to foreign currency exchange rate changes. NSPI may enter foreign exchange forward and swap contracts to limit exposure on certain foreign currency transactions such as fuel purchases and capita...
AI summary NSPI manages foreign exchange risk through forward contracts, covering 64% of 2026 USD fuel costs and 27% of 2027. The regulatory framework allows recovery of prudently incurred costs, including foreign exchange. No speculative derivatives are used.
Commodity Price Risk The Company's fuel supply is subject to commodity price risk. The Company's fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted te...
AI summary Nova Scotia Power Inc. (NSPI) faces commodity price risk due to global market volatility affecting fuel supply. Factors like geopolitical events and economic shifts could drive fuel prices upward, risking affordability, cost recovery, and customer consumption. NSPI aims to hedge 50-100% of 2026 fuel costs and 50-90% for 2027, adjusting quarterly to maintain stability.
Natural Gas: NSPI periodically enters into physical and/or financial contracts based on forecast natural gas consumption to meet load and system security requirements. Volumes exposed to market prices are managed using financial instrument...
AI summary NSPI manages natural gas procurement through hedging programs, using financial instruments to mitigate market price risks. As of December 31, 2025, 99% of 2026 and 55% of 2027 forecasted natural gas requirements are hedged.
Heavy Fuel Oil: NSPI periodically enters into physical and/or financial contracts based on forecast heavy fuel oil purchases to meet load and system security requirements. Volumes exposed to market prices are managed using financial instru...
AI summary NSPI manages heavy fuel oil requirements through physical/financial contracts and hedging programs. As of December 31, 2025, all 2026 forecast requirements are fully hedged to mitigate market price risks.
RISK MANAGEMENT INCLUDING FINANCIAL INSTRUMENTS NSPI's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are monitored by the Bo...
AI summary NSPI employs risk management policies and financial instruments like forwards and swaps to mitigate commodity and foreign exchange risks. Derivatives are accounted for under regulatory frameworks, with gains/losses recovered via the Fuel Adjustment Mechanism (FAM). The Board of Directors oversees risk practices, and the Credit Risk Oversight Committee monitors exposures.
The Company recognized the following net (losses) gains in income related to derivatives receiving regulatory deferral: For the Year ended December 31 millions of dollars 2025 2024 Fuel for generation and purchased power (1) $ (12) $ (36)...
AI summary The Company recognized net losses related to derivatives receiving regulatory deferral, specifically in the category of 'Fuel for generation and purchased power,' with losses of $12 million in 2025 and $36 million in 2024. These losses are associated with settled and consumed derivative instruments and terminated hedging relationships.
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.
2025 Annual Financial Statements Attachment 5 Page 4 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) generation; no severe and/or prolonged downturn in economic conditions; sufficient liquidity and capital resources; the continued abilit...
AI summary The document outlines forward-looking information for NSPI, highlighting key assumptions and risks affecting its operations, including regulatory, economic, environmental, and market-related factors. It emphasizes uncertainties such as changes in laws, commodity prices, credit ratings, and technological developments that could impact performance.
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.
FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating Fuel Costs from customers through annual fuel rate adjustments. Differences between prudently incurred Fuel Costs and amounts recovered from customers through electrici...
AI summary NSPI has a NSEB approved FAM allowing recovery of fluctuating fuel costs from customers. In 2024, a $117 million FAM asset was sold to Invest Nova Scotia, with amortization and financing costs collected from customers over 10 years. A federal loan guarantee of $500 million was also finalized to help manage unrecovered energy costs.
2025 Annual Financial Statements Attachment 5 Page 11 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) that was required during the several years of delay in the Muskrat Falls hydroelectricity project. On November 29, 2024, the NSEB appro...
AI summary The NSEB approved NSPML's application to issue debt and transfer proceeds to NSPI as a refund, with an increased annual assessment charge to recover costs over 28 years. Proceeds were applied against the FAM regulatory asset balance, and NSPI's 2025 fuel rates were increased to service the debt.
2022 GRA and Settlement Agreement On February 2, 2023, the NSEB approved the GRA Settlement Agreement between NSPI, key customer representatives and participating interest groups. This resulted in average customer rate increases of 6.9 per...
AI summary The NSEB approved a 2022 GRA Settlement Agreement, resulting in rate increases of 6.9% in 2023 and 6.5% in 2024. The agreement includes a storm rider for major storm restoration costs and a DSM rider for EfficiencyOne's programs, with cost recovery and deferral mechanisms managed through the NSEB's FAM process.
FAM Audit Pursuant to the FAM Plan of Administration, NSPI's fuel costs are subject to independent audit. On February 21, 2024, the NSEB's decision on the FAM audit findings and recommendations relating to fiscal 2020 and 2021 were publicl...
AI summary NSPI's fuel costs were audited under the FAM Plan of Administration. In 2024, a $3 million disallowance was recorded, with $1 million in interest, returned to customers. In 2025, a $1 million disallowance plus interest was recorded. Details are in note 5 of NSPI's financial statements available on SEDAR+.
APPENDIX A – DEFINITIONS For convenience, terms used throughout this 2025 AIF of Nova Scotia Power Incorporated shall have the following meanings: - "AFUDC" means allowance for funds used during construction and represents the cost of fina...
AI summary This appendix provides definitions of key terms used in the 2025 Annual Information Form of Nova Scotia Power Incorporated. Terms include financial and regulatory concepts, programs, and legal references relevant to the company's operations and regulatory filings.
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 The MTM (Loss) Gain, After-Tax for Q4 2025 decreased to $99 million from $146 million in Q4 2024, mainly due to a gain on Corporate FX hedges. For the year ended 2025, the MTM loss decreased significantly to a $41 million gain, attributed to changes in existing positions and lower amortization of gas transportation assets at Emera Energy Services.
Other Income, net For Q4 2025, other income, net increased $59 million compared to Q4 2024, due to decreased FX losses and the 2024 charges related to wind-down costs and certain asset impairments. For the year ended December 31, 2025, oth...
AI summary Other income, net increased by $59 million in Q4 2025 compared to Q4 2024 due to decreased FX losses and 2024 charges related to wind-down costs and asset impairments. However, for the year ended December 31, 2025, other income, net decreased by $38 million compared to 2024 due to a gain on the sale of LIL in 2024, partially offset by higher FX gains in 2025 and other 2024 charges.
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 Cash and cash equivalents $ 153 I...
AI summary The consolidated balance sheets show significant changes between December 31, 2024, and December 31, 2025, with increases in cash and receivables, and decreases in regulatory assets. These changes are attributed to factors like higher cash from operations, commodity prices, and FX translation effects.
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.
Canadian Electric Utilities For the Three months ended December 31 Year ended December 31 millions of dollars (except as indicated) 2025 2024 2025 2024 Operating revenues – regulated electric $ 504 $ 479 $ 1,944 $ 1,855 Regulated fuel for...
AI summary The table provides financial data for Canadian Electric Utilities, including operating revenues, regulated fuel costs, and contribution to consolidated net income for the three months and year ended December 31, 2025 and 2024. It also includes average fuel costs per MWh.
Canadian Electric Utilities' contribution to consolidated net income is summarized in the following table: For the Three months ended December 31 Year ended December 31 millions of dollars 2025 2024 2025 2024 NSPI $ 22 $ 71 $ 141 $ 160 Equ...
AI summary The table presents the contribution of Canadian Electric Utilities to consolidated net income for the periods ending December 31, 2024, and 2025. It highlights the impact of the NSPML Refund, which significantly reduced average fuel costs for 2024.
Annual production volumes are summarized in the following table: Production Volumes (GWh) 2025 2024 Coal 4,370 3,347 Natural gas 1,403 2,317 Purchased power 391 620 Oil 295 132 Petcoke 279 374 Total non-renewables 6,738 6,790 Purchased pow...
AI summary The document outlines annual production volumes from various energy sources in 2025 and 2024, highlighting the mix of non-renewable and renewable energy production. It also discusses how NSPI's fuel costs are influenced by commodity prices and the generation mix, emphasizing the use of low-cost energy sources and power purchase agreements.
2025 Annual Financial Statements Attachment 6 Page 38 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 the impact of gas price differentials and foreign exchange rate fluctuations on financial statements, particularly focusing on mark-to-market (MTM) adjustments. These adjustments affect income and are influenced by contract terms and business growth.
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.
Foreign Exchange Risk The Company is exposed to foreign currency exchange rate changes. Emera operates internationally, with a significant amount of the Company's net income earned outside of Canada. As such, Emera is exposed to movements...
AI summary Emera Inc. is exposed to foreign exchange risk due to its international operations and significant net income earned outside Canada. It manages this risk through matching USD debt and using FX derivatives for specific transactions, while the regulatory framework allows recovery of prudently incurred FX costs. Derivatives are not used for speculation or investment hedging.
Fuel Supply Disruptions: Emera's electric and natural gas utilities are exposed to the risk of fuel supply chain disruptions, both within and outside their service territories. Fuel supply disruptions may be caused by damage to, operationa...
AI summary Emera's electric and natural gas utilities face risks from fuel supply chain disruptions, which could increase commodity price exposure, disrupt operations, and harm reputation, potentially leading to a Material Adverse Effect.
Commodity Price Risk The Company's utility fuel supply and purchase of other commodities is subject to commodity price risk. In addition, Emera Energy is subject to commodity price risk through its portfolio of commodity contracts and arra...
AI summary The Company and Emera Energy face commodity price risk due to fluctuations in fuel supply and commodity contracts. This risk is a key consideration in their operations and financial planning.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's fuel supply is subject to global market conditions, including price volatility and delivery risks due to factors like geopolitical events and natural disasters. Prolonged fuel price increases may affect rate affordability and customer consumption patterns.
Emera Energy Marketing and Trading: The majority of Emera Energy's portfolio of electricity and gas marketing and trading contracts and, in particular, its natural gas asset management arrangements, are contracted on a back-to-back basis,...
AI summary Emera Energy's electricity and gas marketing and trading contracts are mostly back-to-back, minimizing commodity position risks. However, the portfolio is exposed to commodity price risks, especially basis point differentials, operational issues, tariffs, or counterparty defaults, which can increase collateral and liquidity requirements.
Risk Management Including Financial Instruments The Company uses financial instruments as a method to manage its exposure to normal operating and market risks relating to commodity prices, interest rates, FX on forecast USD earnings and ca...
AI summary Nova Scotia Power Inc. (NSPI) uses financial instruments and physical contracts to manage risks related to commodity prices, interest rates, and foreign exchange. Derivatives are recognized at fair value on the balance sheet, with exceptions for non-financial derivatives meeting the normal purchases and sales criteria. Derivatives not meeting hedge accounting requirements are treated as held-for-trading and recorded in net income.
Realized and Unrealized Gains (Losses) Recognized in Net Income For the Year ended December 31 millions of dollars 2025 2024 Regulatory Deferral: Regulated fuel for generation and purchased power (1) $ (14) $ (44) HFT Derivatives: Non-regu...
AI summary The table presents realized and unrealized gains and losses recognized in net income for 2025 and 2024, including regulatory deferral, HFT derivatives, and other derivatives. Realized gains and losses on derivative instruments settled and consumed in the period are accounted for in 'Regulated fuel for generation and purchased power' when the hedged item is consumed.
Goodwill Impairment Assessments Goodwill is calculated as the excess of the purchase price of an acquired entity over the estimated FV of identifiable assets acquired, and liabilities assumed at the acquisition date. Goodwill is subject to...
AI summary The document discusses goodwill impairment assessments for Emera, including the calculation of goodwill, the annual impairment tests, and the impact of the sale of NMGC. It also highlights the results of qualitative assessments for PGS and TEC in Q4 2025 and the change in goodwill carrying value from 2024 to 2025 due to FX translation.
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.
Level Determinations and Classifications The Company uses Level 1, 2, and 3 classifications in the FV hierarchy. The FV measurement of a financial instrument is included in only one of the three levels and is based on the lowest level inpu...
AI summary The Company classifies financial instruments using Level 1, 2, and 3 classifications in the FV hierarchy, with FV determined based on the lowest level input significant to its derivation. Observable market data is used, except in limited cases involving non-standard features or long-term contracts.
Fair Value ("FV") measurement of derivative financial instruments Description of the Matter Held-for-trading ("HFT") derivative assets of $289 million and liabilities of $745 million, disclosed in note 16 to the consolidated financial stat...
AI summary The document discusses the fair value measurement of held-for-trading derivative financial instruments, including the complexity of valuation due to uncertain market assumptions and the significant impact of these assumptions on the fair value of the derivatives.
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.
Derivatives and Hedging Activities The Company uses financial instruments as a method to manage its exposure to normal operating and market risks relating to commodity prices, interest rates, FX on forecast USD earnings and cash flows and...
AI summary Nova Scotia Power Inc. (NSPI) uses financial instruments and physical contracts to manage exposure to commodity prices, interest rates, and foreign exchange risks. Derivatives are recognized at fair value on the balance sheet, except for those meeting the NPNS exception, which are recognized in income upon settlement.
2025 Annual Financial Statements Attachment 6 Page 80 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...
AI summary The document discusses the accounting treatment of derivatives by Emera and its subsidiaries, including how they are classified, hedged, and reported in financial statements. It outlines the conditions under which derivatives qualify for hedge accounting and the regulatory accounting treatment applied to certain derivatives.
Inventory Fuel and materials inventories are valued at the lower of weighted-average cost or net realizable value, unless evidence indicates the weighted-average cost will be recovered in future customer rates.
AI summary Fuel and materials inventories are valued at the lower of weighted-average cost or net realizable value, unless evidence indicates the weighted-average cost will be recovered in future customer rates.
NSPI FAM NSPI has a NSEB approved FAM, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through annual fuel rate adjustments. Differences between prudently incurred fuel costs and amounts recovered fr...
AI summary NSPI has a Fuel Adjustment Mechanism (FAM) approved by the NSEB, which allows it to recover fluctuating fuel costs from customers through annual rate adjustments. Differences between actual and recovered fuel costs are deferred as a regulatory asset or liability and reconciled in future periods.
Fuel Recovery and Other Cost Recovery Clauses: TEC has a fuel recovery clause approved by the FPSC, allowing the opportunity to recover fluctuating fuel expenses from customers through annual fuel rate adjustments. The FPSC annually approv...
AI summary TEC has a fuel recovery clause approved by the FPSC, allowing recovery of fluctuating fuel expenses through annual adjustments. On April 2, 2024, TEC requested a mid-course adjustment due to a $138 million USD reduction in natural gas prices. The FPSC approved the adjustment on May 7, 2024.
Fuel Recovery: PGS recovers the costs it pays for gas supply and interstate transportation for system supply through its Purchased Gas Adjustment Clause ("PGAC"). This clause is designed to recover actual costs incurred by PGS for purchase...
AI summary PGS uses a Purchased Gas Adjustment Clause (PGAC) to recover costs for gas supply and transportation. The clause allows for monthly adjustments based on an annual cap approved by the FPSC.
Fuel Recovery: NMGC recovers gas supply costs through a PGAC. This clause recovers actual costs for purchased gas, gas storage services, interstate pipeline capacity, and other related items associated with the purchase, transmission, dist...
AI summary NMGC uses a PGAC to recover gas supply costs, including purchased gas, storage, and pipeline capacity. The NMPRC requires annual reconciliation and a four-year PGAC Continuation Filing to ensure its continued use is reasonable and necessary. NMGC received approval for its PGAC Continuation in December 2024, covering until December 2028.
Fuel Recovery: BLPC's fuel costs flow through a fuel pass-through mechanism which provides opportunity to recover all prudently incurred fuel costs from customers in a timely manner. The calculation of the fuel charge is adjusted on a mont...
AI summary BLPC's fuel costs are recovered through a fuel pass-through mechanism, allowing for timely recovery of prudently incurred costs. The fuel charge is calculated monthly and submitted to the FTC for approval.
Regulated Utilities: The Company's utility fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted terms. Supply and demand dynamics in fuel markets can be...
AI summary The Company's utility fuel supply is influenced by global market conditions, including price fluctuations and delivery reliability, which are affected by various unpredictable factors. Prolonged increases in fuel prices could impact rate affordability, cost recovery, and customer consumption patterns, potentially leading to a Material Adverse Effect.
Emera Energy Marketing and Trading: The majority of Emera Energy's portfolio of electricity and gas marketing and trading contracts and, in particular, its natural gas asset management arrangements, are contracted on a back-to-back basis,...
AI summary Emera Energy's electricity and gas marketing and trading contracts are mostly back-to-back, avoiding long or short commodity positions. However, the portfolio faces commodity price risk, especially from basis point differentials, operational issues, tariffs, or counterparty defaults, which may increase collateral requirements and costs.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 283960 LT LEASE LIABILITY - OPERATING LEASE 331100 COMMON SHARES INTERCOMPANY 334050 AOCI PENSION 337250 COMMON DIVIDENDS INTERCOMPANY 338050 OPENING RE 338150 OPENING RE CU...
AI summary The document presents a detailed account segment table with various financial and regulatory codes, including lease liabilities, intercompany transactions, and time-of-use rate structures related to energy demand and fuel costs. These codes are used for accounting and regulatory reporting purposes.
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 Of the $24.8M earnings above NS Power's approved ROE range in 2010, $10.3M was expensed as accelerated amortization under the section 21 mechanism. The remaining $14.5M was tax benefits related to renewable energy projects, which was def...
AI summary The text discusses Nova Scotia Power's earnings relative to its approved ROE range, noting that in 2010, earnings above the range were partially expensed and partially deferred. It also explains that earnings exceeding the ROE range in 2015-2019 are deemed over recovery of fuel costs under the Electricity Plan Implementation (2015) Act. Regulated earnings were below the ROE range in several years, with adjustments made to the FAM balance.