N-23M12835 Exhibit N-2 Att 3 2025 Managements Discussion AnalysisHIGHLIGHTED
7 passages
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 document summarizes net income and revenue changes for the periods ending December 31, 2024 and 2025. It highlights increased operating revenues, decreased fuel costs, and increased FAM and other deferrals. Notable factors include increased storm costs, a cybersecurity incident, and changes in income tax recovery.
Income Taxes In 2025, NSPI was subject to a combined Canadian federal and Nova Scotia provincial statutory corporate income tax rate of 29 per cent (2024 - 29 per cent). In 2025, NSPl's effective tax rate was (47) per cent (2024 - (36) per...
AI summary In 2025, NSPI faced a combined Canadian federal and Nova Scotia provincial corporate income tax rate of 29 per cent. However, the effective tax rate was -47 per cent due to investment tax credits and deferred income taxes on regulated income.
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 regulatory assets, as well as changes in liabilities and equity due to factors like timing of payments, capital investments, and regulatory deferrals.
Income Tax Risk The computation of the Company's provision for income taxes is impacted by changes in tax legislation in Canada, and any such changes could have a Material Adverse Effect. The value of NSPl's existing deferred income tax as...
AI summary The computation of NSPI's income tax provision is affected by changes in Canadian tax legislation, which could result in a Material Adverse Effect. Changes in tax laws may also impact the value of NSPI's deferred income tax assets and liabilities.
Improvements to Income Tax Disclosures The Company adopted Accounting Standard Update ("ASU") 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, effective December 31, 2025. The standard enhances the transparency, d...
AI summary The Company adopted ASU 2023-09, effective December 31, 2025, to improve income tax disclosures by requiring more transparent and disaggregated information in the reconciliation of income taxes and by jurisdiction. This change resulted in additional disclosures in note 7 of the 2025 Annual Financial Statements.
Q4 2025 compared to Q4 2024 Q4 2025 net income decreased by $49 million compared to Q4 2024. The decrease is due to decreased income tax recovery and increased OM&G expenses. Income tax recovery decreased due to the utilization of tax loss...
AI summary Q4 2025 net income decreased by $49 million compared to Q4 2024 due to decreased income tax recovery and increased OM&G expenses, primarily driven by higher storm costs and costs related to the Cybersecurity Incident.
Q1 2025 compared to Q1 2024 Q1 2025 net income increased by $53 million compared to Q1 2024. The increase is due to decreased income tax expense due to recognition of clean technology investment tax credits in 2025 and increased operating...
AI summary Q1 2025 net income increased by $53 million compared to Q1 2024 due to decreased income tax expense from clean technology investment tax credits and increased operating revenues from higher sales volumes driven by favorable weather.