N-12025 Annual Financial Statements - Redacted
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General Rate Application ("GRA"): On September 18, 2025, NSPI filed a consensus General Rate Application ("GRA") with the NSEB, reflecting a settlement agreement reached with customer representatives. The GRA proposes average annual rate i...
AI summary NSPI filed a consensus General Rate Application (GRA) with NSEB on September 18, 2025, proposing 1.8% and 2.4% annual rate increases in 2026 and 2027, respectively. The application reflects a settlement with customer representatives and anticipates $62M and $108M in annual revenue increases. The hearing concluded in January 2026.
Storm Rider: NSPI has a NSEB approved storm rider for each of 2023, 2024 and 2025, which gives NSPI the option to apply to the NSEB for recovery of costs if major storm restoration expense exceeds approximately $10 million in a given year....
AI summary NSPI has storm riders approved by the NSEB for 2023, 2024, and 2025, allowing recovery of major storm restoration costs exceeding $10 million. Applications for deferral and recovery are made in the year following the incurred cost, with recovery beginning the year after the application.
"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.
Regulatory Deferral NSPI received approval from the NSEB for regulatory deferral of gains and losses on certain derivatives documented as economic hedges and certain physical contracts that do not qualify for the NPNS exception. Refer to n...
AI summary NSPI received approval from the NSEB to defer gains and losses on certain derivatives and physical contracts. This deferral applies to derivatives documented as economic hedges and physical contracts not qualifying for the NPNS exception.
Notional Volumes As at December 31, 2025, the Company had the following notional volumes of commodity swaps and forwards and physical natural gas purchase contracts designated for regulatory deferral that are expected to settle as outlined...
AI summary The document outlines notional volumes of commodity swaps, forwards, and physical natural gas purchase contracts designated for regulatory deferral as of December 31, 2025, with expectations for their settlement.
NSPI's electric revenues are affected by rates approved by the NSEB and electric sales volumes. NSPI's electric revenues include revenues related to the recovery of fuel costs and non-fuel costs. The FAM allows NSPI to recover all prudentl...
AI summary NSPI's electric revenues depend on NSEB-approved rates and electric sales volumes, which are influenced by factors like weather, customer numbers, usage, economic conditions, and DSM activities. Fuel costs are recovered through the FAM, which has no material impact on net income. Sales volumes are seasonal, with higher sales in the first quarter due to colder weather and less daylight.
NSPI With $8.1 billion of assets and approximately 565,000 customers at December 31, 2025, NSPI owns 2,422 MW of generating capacity, of which 44 per cent is coal and/or oil-fired; 28 per cent is natural gas and/or oil; 19 per cent is hydr...
AI summary NSPI, with $8.1 billion in assets and 565,000 customers, operates a mix of fossil fuel and renewable generation, including 573 MW from IPPs and COMFIT participants. It has agreements with NLH for energy delivery and filed a GRA proposing 1.8% and 2.4% rate increases in 2026 and 2027, respectively. NSPI also announced a new transmission project with WTI and expects to earn near the low end of its ROE range in 2026.
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.
Regulatory Environment – NSPI NSPI is a public utility as defined in the Public Utilities Act of Nova Scotia ("Public Utilities Act") and is subject to regulation by the NSEB. The Public Utilities Act gives the NSEB supervisory powers over...
AI summary NSPI operates as a regulated public utility under Nova Scotia's Public Utilities Act, overseen by the NSEB. It follows a cost-of-service model for rate-setting, ensuring cost recovery and investor returns without annual rate reviews, relying instead on ad hoc hearings. Regulatory details are referenced in financial statement note 7.
Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. Rates are designed to recover prudently incurred costs of providing regulated products or ser...
AI summary Regulatory accounting ensures rates set by independent third-party regulators recover prudently incurred costs and provide reasonable returns on invested capital. This applies when rates require regulatory approval, with further details in note 7.
PGS PGS is regulated by the FPSC. The FPSC sets rates at a level that allows utilities such as PGS to collect total revenues or revenue requirements equal to their cost of providing service, plus an appropriate return on invested capital....
AI summary PGS is regulated by the FPSC, which sets rates to ensure utilities recover costs plus a return on capital. Base rates are determined through FPSC hearings, and PGS's approved ROE range for 2024-2025 is 9.15%-11.15% with a 10.15% midpoint, based on a 54.7% equity capital structure.
BLPC BLPC is regulated by the Fair Trading Commission ("FTC"), under the Utilities Regulation (Procedural) Rules 2003. BLPC is regulated under a cost-of-service model, with rates set to recover prudently incurred costs of providing electri...
AI summary BLPC is regulated by the Fair Trading Commission under the Utilities Regulation (Procedural) Rules 2003, operating under a cost-of-service model where rates recover prudently incurred costs plus a 10% return on capital for 2024 and 2025. This structure ensures cost recovery while providing a regulated return on investment.
The following table shows expected cash flows for DB pension and other post-retirement benefit plans: millions of dollars DB pension plans Non-pension benefit plans Expected employer contributions 2026 $ 34 $ 17 Expected benefit payments 2...
AI summary The text presents a table with expected cash flows for DB pension and other post-retirement benefit plans, including employer contributions and benefit payments for various years. Assumptions underpinning these figures are also mentioned.
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.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 412760 REG SMALL GEN CPP NON FUEL ENERGY OFF PEAK 412770 REG SMALL GEN CPP DSM COST RECOVERY RIDER 413110 REG RES NON FUEL DEMAND BASE 413120 REG RES NON FUEL ENERGY 413130...
AI summary The text presents a list of account segments with descriptions, including entries related to demand-side management (DSM) cost recovery riders, fuel adjustment mechanisms (FAM), time-of-use pricing, and accrued costs. These segments reflect various revenue and cost categories within the regulatory framework.
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 This text discusses Nova Scotia Power's earnings above and below the approved return on equity (ROE) range across various years, including how certain amounts were expensed or deferred. It references the Electricity Plan Implementation (2015) Act and the NSUARB's directives regarding the application of revenue to the FAM balance.
N-2Refiled Statements - NSPI - Redacted
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Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. The rates are designed to recover prudently incurred costs of providing the regulated product...
AI summary Regulatory accounting ensures rates established by independent regulators recover prudently incurred costs and allow reasonable returns on capital. This framework is critical for maintaining financial viability while ensuring fair cost recovery for regulated services.
5. REGULATORY MATTERS The Company is a public utility as defined in the Act and is subject to regulation under the Act by the NSEB. The Act gives the NSEB supervisory powers over NSPI's operations and expenditures. Electricity rates for NS...
AI summary NSPI operates as a regulated public utility under the Act, with the NSEB overseeing its operations and approving electricity rates. Rates are set via a cost-of-service model to recover prudently incurred costs and provide investor returns, with an approved ROE range of 8.75% to 9.25%.
"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.
Notional Volumes As at December 31, 2025, the Company had the following notional volumes of commodity swaps and forwards and physical natural gas purchase contracts designated for regulatory deferral that are expected to settle as outlined...
AI summary The document outlines notional volumes of commodity swaps, forwards, and physical natural gas purchase contracts designated for regulatory deferral as of December 31, 2025, with expected settlement dates.
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 December 23, 2025, NSPML received an Interim Order from the NSEB a...
AI summary NSPI is contractually obligated to pay NSPML for the use of the Maritime Link over 38 years. An Interim Order from the NSEB allows NSPML to collect up to $198.7 million from NSPI in 2026, with a monthly holdback of up to $4 million.
24. SEGMENT INFORMATION NSPI's consolidated operations represents a single reportable segment. The Company's single operating and reportable segment is in one regulatory environment, geographical region, and revenue is primarily derived fr...
AI summary NSPI operates as a single reportable segment in Nova Scotia, with revenue derived from rate-regulated electricity. Operations and PP&E are entirely within Nova Scotia, and the CEO oversees financial reporting aligned with the Condensed Consolidated Statement of Income.
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.
General Rate Application ("GRA"): On September 18, 2025, NSPI filed a consensus GRA with the NSEB, reflecting a settlement agreement reached with customer representatives. The GRA proposes average annual rate increases of 1.8 per cent in 2...
AI summary NSPI filed a consensus GRA with the NSEB on September 18, 2025, proposing 1.8% and 2.4% annual rate increases in 2026 and 2027, respectively, with revenue increases of $62M and $108M. The hearing concluded in January 2026, with a decision expected by early Q2 2026.
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.
Annual Compensation Review Process For each executive position, a range for base salary, target short-term incentive, and target long-term incentive is established annually, using the benchmarking data along with other information on indus...
AI summary The Annual Compensation Review Process involves setting salary ranges for executive positions using benchmarking data and industry trends. Performance assessments and benchmarking reviews by Mercer and Hugessen inform compensation decisions for NEOs, with changes reflected in a compensation table for 2025.
2025 Annual Financial Statements Attachment 4 Page 14 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Incorporated – Management Information Circular 2026 stock options increase or decrease over the term of a particular...
AI summary The document outlines the structure of long-term incentive compensation for senior executives at Nova Scotia Power Incorporated, including the distribution of PSUs, RSUs, and stock options. It notes that these plans are not included in NSPI rates and are subject to review by the MRCC based on historical compensation data and market conditions.
Restricted Share Unit Plan The RSU plan is administered similarly to the PSU plan, with the exception that there is no performance factor, nor a TSR modifier, and is only subject to a three-year vesting period.
AI summary The Restricted Share Unit (RSU) plan is administered similarly to the Performance Share Unit (PSU) plan, but without performance factors or a TSR modifier, and is subject to a three-year vesting period.
Senior Management Stock Option Plan Stock options are designed to deliver a percentage of the long-term incentive opportunity for senior management, including the NEOs, and are an important component of competitive executive compensation....
AI summary The Senior Management Stock Option Plan provides stock options to senior management and NEOs as part of their long-term incentive compensation. Options vest over five years, have a 10-year term, and are subject to share issuance limits. The plan is detailed in Emera's 2026 Management Information Circular available on SEDAR+.
Deferred Share Unit Plan The Deferred Share Unit (DSU) Plan is another component of Emera's long-term incentive program that is made available to senior leaders of the Company. A DSU is a notional share unit that is based on the value of a...
AI summary The Deferred Share Unit (DSU) Plan is a long-term incentive program for senior leaders of Emera, allowing them to defer short-term incentives into DSUs, which are notional shares tied to Emera's common shares. DSUs earn dividend equivalents and are not paid out until the participant leaves the company. The plan aims to achieve share ownership guidelines without diluting shareholders.
2025 Annual Financial Statements Attachment 4 Page 22 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Incorporated – Management Information Circular 2026 Following a participant's departure from the Company and on a dat...
AI summary The document outlines the calculation method for Deferred Share Units (DSUs) upon a participant's departure from Nova Scotia Power Incorporated, using a 10-day average of Emera common share prices to account for short-term fluctuations. It also mentions the possibility of special DSU awards for exceptional achievements or corporate goals.
PRESENTATION OF INFORMATION Unless otherwise noted, the information contained in this AIF is given at or for the year ended December 31, 2025. Amounts are expressed in Canadian dollars unless otherwise indicated. All financial information...
AI summary This document provides an overview of the information contained in the Annual Information Form (AIF) for NSPI as of December 31, 2025. It outlines the financial reporting standards, disclosure practices, and references to risk management information available on SEDAR+.
Regulatory Matters Electricity Rates & Return on Equity NSPI is regulated under a cost of service model, with rates set to recover prudently incurred costs of providing electricity service to customers, including a reasonable return to inv...
AI summary NSPI operates under a cost of service model, with rates set to recover prudently incurred costs and provide a reasonable return to investors. The approved regulated return on equity (ROE) range for NSPI remained between 8.75% and 9.25% for 2023 to 2025, and is unchanged for 2026 pending approval by the NSEB in the 2025 GRA.
2025 GRA On September 18, 2025, NSPI filed a consensus GRA with the NSEB, reflecting a settlement agreement reached with customer representatives. The GRA proposes average annual rate increases of 1.8 per cent in 2026 and 2.4 per cent in 2...
AI summary NSPI filed a consensus 2025 General Rate Application (GRA) with the NSEB, proposing rate increases of 1.8% in 2026 and 2.4% in 2027, resulting in revenue increases of $62 million and $108 million respectively. The hearing concluded in January 2026, with a decision expected in early Q2 2026.
USGAAP – Exemptive Relief and Companies Act Relief NSPI was granted Exemptive Relief on September 13, 2022 and Companies Act Relief on October 12, 2022, each allowing NSPI to continue to report its financial results in accordance with USGA...
AI summary NSPI received Exemptive Relief and Companies Act Relief in 2022, allowing it to continue using USGAAP for financial reporting. These reliefs will expire in 2027 or earlier if NSPI no longer has rate-regulated activities. The IASB's Exposure Draft on Regulatory Assets and Liabilities may affect the future of these reliefs.
Financial Results Emera made company history this year by reporting annual adjusted net income (1) in excess of $1 billion and adjusted EPS (1) of $3.49—a 19 per cent increase over 2024. This was supported by strong performance at Tampa El...
AI summary Emera reported significant financial growth in 2025, including adjusted net income exceeding $1 billion and a 19% increase in adjusted EPS compared to 2024. Strong performance from Tampa Electric and Emera Energy, along with a $3.6 billion capital program, supported this growth. The company also extended its EPS growth target through 2030 and achieved strong shareholder returns.
Management's Discussion & Analysis As at February 23, 2026 Management's Discussion & Analysis ("MD&A") provides a review of the results of operations of Emera Incorporated and its consolidated subsidiaries and investments (collectively ref...
AI summary This section of Management's Discussion & Analysis provides an overview of Emera Incorporated's financial results for the fourth quarter and full year of 2025, compared to the same periods in 2024 and 2023. It outlines the Company's financial position as of December 31, 2025 and mentions the use of USGAAP for financial reporting.
Mark-to-market ("MTM") Adjustments: Management believes excluding from net income the effect of MTM valuations and changes thereto, until settlement, better aligns the intent and financial effect of these contracts with the underlying cash...
AI summary Management excludes mark-to-market adjustments from net income to better align financial reporting with cash flows, impacting performance evaluations and incentive compensation. These adjustments relate to commodity derivatives, Bear Swamp Power Company, equity securities, and foreign exchange hedges.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA For the Three months ended December 31 Year ended December 31 millions of dollars 2025 2024 2025 2024 2023 Net income (1) $ 87 $ 173 $ 1,090 $ 568 $ 1,045 Interest expense, net 268...
AI summary The reconciliation of Net Income to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2025, and 2024 is presented in a table. It includes adjustments such as interest expense, income tax, depreciation and amortization, and other items like MTM gains and losses, charges related to asset sales and impairments.
Effect of Foreign Currency Translation Emera operates in the United States ("US"), Canada and various Caribbean countries and, as such, generates revenues and incurs expenses denominated in local currencies which are translated into CAD fo...
AI summary Emera operates across multiple countries, generating revenues and incurring expenses in local currencies that are translated into CAD for financial reporting. Fluctuations in exchange rates, especially between USD and CAD, can impact financial results.
Highlights of net income changes are summarized in the following table: For the millions of dollars Three months ended December 31 Year ended December 31 Contribution to consolidated net income – 2024 $ 77 $ 232 Increased operating revenue...
AI summary The text outlines key factors affecting net income changes for Nova Scotia Power Inc. (NSPI) in 2024 and 2025, including increased operating revenues, changes in fuel and storm cost recoveries, the impact of the 2024 NSPML Refund, and increased operational and maintenance costs due to storm and cybersecurity incidents.
Regulatory and Political Risk The Company's rate-regulated utilities and certain investments are subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key facto...
AI summary Emera's rate-regulated utilities face regulatory and political risks due to complex legislative and regulatory frameworks. These frameworks affect rates, cost recovery, capital investments, and service reliability. Delays in regulatory approvals or disallowance of cost recovery could lead to material adverse effects.
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.
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.
Rate Regulation The rate-regulated accounting policies of Emera's rate-regulated subsidiaries and regulated equity investments are subject to examination and approval by their respective regulators and may differ from the accounting polici...
AI summary Emera's rate-regulated subsidiaries use accounting policies that differ from non-rate-regulated companies due to regulatory decisions on rate applications. These differences affect the timing of revenue and expense recognition. Regulatory accounting guidance is critical, as changes in assumptions can significantly impact financial reporting. As of December 31, 2025, the company reported $3,198 million in regulatory assets and $1,669 million in regulatory liabilities.
Pension and Other Post-Retirement Employee Benefits The Company provides post-retirement benefits to employees, including defined benefit pension plans. The cost of providing these benefits is dependent upon many factors that result from a...
AI summary The Company provides post-retirement benefits to employees, including defined benefit pension plans. Accounting for these benefits is a critical estimate, with factors such as employee demographics and actuarial assumptions significantly impacting financial statements. Pension plan assets are primarily equity and fixed income investments, and fluctuations in market returns and interest rates affect future pension costs. The Company uses smoothed asset values to reduce volatility in reported pension costs, with the discount rate being the main source of volatility.
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.
2025 Annual Financial Statements Attachment 6 Page 77 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 provides an overview of the 2025 Annual Financial Statements for Emera, including sections such as Management's Discussion and Analysis, Consolidated Financial Statements, and information about leadership and shareholders. It outlines the structure of the financial reporting and key areas of focus.
Regulatory Matters Regulatory accounting applies where rates are established by, or subject to approval by, an independent third-party regulator. Rates are designed to recover prudently incurred costs of providing regulated products or ser...
AI summary Regulatory accounting is used in situations where rates are set by or require approval from an independent third-party regulator. Its purpose is to recover prudently incurred costs and allow for a reasonable rate of return on invested capital.
Regulated Electric and Gas Revenue: Electric and gas revenues, including energy charges, demand charges, basic facilities charges and clauses and riders, are recognized when obligations under the terms of a contract are satisfied, which is...
AI summary The document discusses the recognition of regulated electric and gas revenues, including energy and demand charges, based on contractual obligations and metered usage. Revenues are recognized on an accrual basis, with unbilled revenue estimated at the end of each reporting period based on assumptions about energy demand, weather, and line losses.
Franchise Fees and Gross Receipts TEC and PGS recover from customers certain costs incurred, on a dollar-for-dollar basis, through prices approved by the Florida Public Service Commission ("FPSC"). The amounts included in customers' bills...
AI summary TEC and PGS recover franchise fees and gross receipt taxes from customers through prices approved by the Florida Public Service Commission, which are classified as 'Regulated electric' and 'Regulated gas' revenues. NMGC collects and pays these fees but does not present them on a gross basis, resulting in a net presentation with no line item impact on income statements.
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.
2025 Annual Financial Statements Attachment 6 Page 88 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...
AI summary This document contains the 2025 Annual Financial Statements of Emera, including Management's Discussion and Analysis, Consolidated Financial Statements, and other related sections such as leadership information and shareholder details.
Deferred Income Tax Regulatory Assets and Liabilities To the extent deferred income taxes are expected to be recovered from or returned to customers in future years, a regulatory asset or liability is recognized as appropriate.
AI summary The document discusses the recognition of regulatory assets or liabilities related to deferred income taxes, depending on whether they are expected to be recovered from or returned to customers in future years.
Pension and Post-Retirement Medical Plan This asset is primarily related to the deferred costs of pension and post-retirement benefits at TEC and PGS. Deferred costs of post-retirement benefits that are included in expense are recognized a...
AI summary The text discusses deferred costs related to pension and post-retirement medical benefits at TEC and PGS, which are recognized as cost of service for rate-making purposes by the FPSC and amortized over the remaining service life of plan participants.
Florida Electric Utility TEC is regulated by the FPSC and is also subject to regulation by the Federal Energy Regulatory Commission. The FPSC sets rates at a level that allows utilities such as TEC to collect total revenues or revenue requ...
AI summary Florida Electric Utility (TEC) is regulated by the FPSC and the Federal Energy Regulatory Commission. The FPSC sets rates to ensure TEC can recover its costs and earn an appropriate return on invested capital. The approved ROE range for 2025 is 9.50% to 11.50%, with a 10.50% ROE used for investment calculations.
PGS PGS is regulated by the FPSC. The FPSC sets rates at a level that allows utilities such as PGS to collect total revenues or revenue requirements equal to their cost of providing service, plus an appropriate return on invested capital....
AI summary PGS is regulated by the FPSC, which sets rates to ensure utilities can recover their costs and earn a return on invested capital. The approved ROE range for 2024 and 2025 is 9.15% to 11.15%, with a midpoint of 10.15%, based on an allowed equity capital structure of 54.7%.
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 tariff review policy, with new rates submitted every three years. On August 1, 2024, GBPC filed a rate plan proposal as required by the GBPA Operating Protocol and Regulatory Framework Agreement.
As at December 31, 2025, the Company had the following notional volumes designated for regulatory deferral that are expected to settle as outlined below: millions 2026 2027–2028 Commodity swaps and forwards purchases: Natural gas (MMBtu) 7...
AI summary As of December 31, 2025, the Company has designated notional volumes for regulatory deferral, including natural gas and power swaps, as well as FX forwards, with expected settlement outlined for 2026 and 2027–2028.
Regulatory and Political Risk The Company's rate-regulated utilities and certain investments are subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key facto...
AI summary Emera's rate-regulated utilities face regulatory and political risks due to complex legislative frameworks influencing rates, cost recovery, and capital investments. Failure to obtain regulatory approvals or changes in government policy could result in material adverse effects, including valuation impairments and service reliability issues.
Inflation Risk: The Company may be exposed to changes in inflation that may result in increased operating and maintenance costs, capital investment, and fuel costs compared to the revenues provided by customer rates.
AI summary The Company faces inflation risks that could increase operating and maintenance costs, capital investment, and fuel costs, potentially exceeding the revenue generated from customer rates.
32. Stock-Based Compensation
AI summary This section discusses stock-based compensation, which is a method of compensating employees with company stock instead of cash. It outlines the accounting treatment and disclosure requirements for such compensation, ensuring transparency and compliance with regulatory standards.
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.
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.