N-12025 Annual Financial Statements - Redacted
32 passages
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 NSEB, adhering to a cost-of-service model that recovers prudently incurred costs and provides an 8.75%-9.25% return on equity. Rates require NSEB approval and are not subject to annual reviews but may be adjusted via hearings.
C. Environment NSPI's activities are subject to a broad range of federal, provincial, regional and local laws and environmental regulations, designed to protect, restore and enhance the quality of the environment including air, water and s...
AI summary NSPI faces environmental regulations requiring grid investments to support renewable energy transition, with estimated capital spending of $81M in 2026 and $111M from 2027-2030. Compliance costs are material, and funding depends on government collaboration. No significant compliance issues were found in recent audits.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI operates under a cost-of-service regulatory model requiring approvals for rate changes and capital investments. Regulatory delays, cost recovery challenges, and political shifts could cause material adverse effects, including valuation impairments and service reliability risks. Regulatory frameworks influence rates, ROE, capital structures, and cost recovery mechanisms.
Management's Discussion & Analysis As at February 23, 2026 Management's Discussion & Analysis ("MD&A") provides a review of the results of operations of Nova Scotia Power Inc. during the fourth quarter of 2025 relative to the same quarter...
AI summary Nova Scotia Power Inc. (NSPI) provides a review of its financial results for Q4 2025 and FY2025 compared to prior years, noting adherence to USGAAP and regulatory oversight by the Nova Scotia Energy Board (NSEB). Financial reporting includes consolidated subsidiary NSPEMI, with all figures in Canadian dollars.
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.
The Company generates internally sourced cash primarily through the generation, transmission and distribution of electricity. NSPI's customer base is diversified by both sales volumes and rates among customer classes. Circumstances that co...
AI summary NSPI generates cash through electricity generation, transmission, and distribution. Factors affecting cash generation include macroeconomic conditions, fuel prices, regulatory decisions, environmental legislation, credit ratings, and weather patterns.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI faces regulatory risks from frameworks governing rates, cost recovery, ROE, and capital investments. Regulatory delays or disallowed costs could lead to material adverse effects. Uncertainty around IESO Nova Scotia and environmental legislation changes adds further risk. Regulatory processes require approvals and public hearings, with uncertain outcomes.
Change in Law Risk The Company is also exposed to changes in the political environment and leadership, changes in law or regulations, changes to governmental policies, trade disputes, and the imposition of tariffs, any of which may impact...
AI summary NSPI faces risks from political, legal, and regulatory changes that could disrupt energy markets, increase competition, or create unrecovered costs. Unpredictable legislative shifts may hinder NSPI's ability to adapt, potentially leading to a Material Adverse Effect on its operations and financial performance.
Per- and polyfluoroalkyl substances ("PFAS"): PFAS are man-made chemicals that are widely used in consumer products and can persist and bioaccumulate in the environment. The Company does not manufacture PFAS but because these contaminants...
AI summary PFAS, man-made chemicals persistent in the environment, may impact NSPI's operations despite not being manufactured by the company. Regulatory changes on PFAS could impose new costs for cleanup and alter land acquisition strategies, potentially causing a Material Adverse Effect.
Nova Scotia Energy Reform Act: On April 5, 2024, the Province enacted Bill 404 - Energy Reform (2024) Act. This legislation implements certain recommendations made by the Clean Electricity Solutions Task Force, which was established by the...
AI summary Nova Scotia enacted Bill 404 - Energy Reform (2024) Act, establishing the NSEB and transitioning to the IESO Nova Scotia. The legislation implements recommendations from the Clean Electricity Solutions Task Force, focusing on renewable energy transition. The IESO Nova Scotia will be phased in over 18 months, with the first phase completed by December 2025.
Nova Scotia Power Incorporated
AI summary The document pertains to Nova Scotia Power Incorporated (NSPI) within a regulatory proceeding. No further details are provided in the text, but the context suggests involvement in regulatory processes related to energy and utility governance.
Solicitation of Proxies This Management Information Circular (the Circular) is furnished in connection with the solicitation of proxies by the management of Nova Scotia Power Incorporated (the Company or NSPI) for use at the Annual Meeting...
AI summary Nova Scotia Power Inc. (NSPI) is soliciting proxies for its Annual Meeting on May 21, 2026, via mail, personal, or telephone. The Company will bear all solicitation costs, and the Board of Directors has approved the Management Information Circular.
Board and Director Performance Assessments The Board regularly assesses its effectiveness in order to find ways to improve its performance. The Board annually reviews the process by which Director performance assessments will be conducted....
AI summary The Board conducts annual performance assessments of its directors using questionnaires and one-on-one interviews, with results reported to the Board. Action plans address identified issues, and the independent Lead Director evaluates the Chair's performance separately.
Risk Management and Compensation As part of the oversight responsibilities for the design and administration of the Company's executive compensation programs, the MRCC and NSPI Board identify and discuss design features or processes that m...
AI summary The MRCC and NSPI Board oversee executive compensation programs to identify potential conflicts of interest or excessive risk-taking incentives. They monitor industry trends and conduct annual risk assessments to align compensation policies with the company's risk management approach.
Annual Compensation Risk Assessment In 2025, the MRCC conducted its annual compensation risk review of its executive compensation programs and policies. To assist in the review, Mercer was engaged by Emera management to evaluate their prev...
AI summary In 2025, the MRCC conducted an annual compensation risk review of Emera's executive compensation programs. Mercer evaluated the previous year's risk assessment and confirmed that the company's policies align with market best practices, identifying no material risks from its compensation structure.
General NSPI is a vertically integrated regulated electric utility. It is the primary electricity supplier in the Province. NSPI has $8.1 billion of assets and provides electricity generation, transmission and distribution services to appr...
AI summary NSPI, a vertically integrated regulated electric utility with $8.1 billion in assets, serves 565,000 customers in Nova Scotia. Regulated under the Public Utilities Act by the NSEB, NSPI's rates are set to recover prudently incurred costs with a reasonable investor return. The Province has a population of 1.09 million, representing 2.6% of Canada's population.
Environmental Matters NSPI is subject to regulation by federal, provincial, and municipal authorities regarding environmental matters related to its utility operations. This includes laws setting GHG emissions standards, renewable energy t...
AI summary NSPI faces regulatory risks from federal, provincial, and municipal environmental laws, including GHG emissions standards, renewable energy targets, and habitat protection requirements. Non-compliance could adversely affect operations and financial performance. Risks are detailed in the MD&A's 'Enterprise Risk and Risk Management' section, available on SEDAR+.
The following information is provided for each Director of NSPI as at December 31, 2025: Name and Residence Director Since (1) Principal Occupations During Past Five Years Daniel P. Muldoon (3) Halifax, Nova Scotia, Canada 2025 Former Exec...
AI summary This section provides information on Daniel P. Muldoon, a director of Nova Scotia Power Incorporated (NSPI), including his professional background and affiliations with various organizations such as Emera and the Canadian Electricity Association.
2025 Annual Financial Statements Attachment 5 Page 26 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) energy business that purchases and sells electricity and natural gas in the United States of America's energy commodity market and is i...
AI summary This document defines key terms and acronyms from NSPI's 2025 Annual Financial Statements, including entities like NSPML, WTI, and regulatory frameworks such as the Public Utilities Act. It outlines financial and operational terminology, legal definitions, and project-specific terms like the Sable Wind Project and South Canoe Wind Project.
FLI is based on reasonable assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the FLI. Factors that could cause result...
AI summary Forward-Looking Information (FLI) is subject to risks including regulatory changes, economic conditions, commodity price fluctuations, cybersecurity threats, and climate impacts. These factors could cause actual results to diverge from expectations, affecting dividend growth, capital investments, and operational stability for entities like Emera and NSPI.
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.
Regulatory Environment TEC is regulated by the FPSC and is also subject to regulation by the FERC. The FPSC sets rates at a level that allows utilities such as TEC to collect total revenues or revenue requirements equal to their cost of pr...
AI summary TEC is regulated by the FPSC and FERC. FPSC sets rates to ensure TEC's revenue equals service costs plus return on capital, with base rates determined in hearings initiated by TEC, FPSC, or others. Refer to note 7 in financial statements for more details.
Change in Law Risk The Company is also exposed to changes in the political environment and leadership, changes in law or regulations, changes to governmental policies, trade disputes, and the imposition of tariffs, any of which may impact...
AI summary The Company faces risks from political, legal, and regulatory changes, including deregulation, policy shifts affecting natural gas use, and data center laws. These may cause Material Adverse Effects, increased competition, and compliance challenges. Emera cannot predict future changes, making timely responses difficult.
2025 Annual Financial Statements Attachment 6 Page 49 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...
AI summary Emera highlights risks from environmental regulations, including project delays, stranded costs, compliance expenses, and potential material adverse effects on operations. Non-compliance could lead to penalties, legal disputes, and increased costs, impacting financial performance and strategic investments.
Transition Risk: As government policy related to the environment, renewable energy, and decarbonization continues to shift in various operating jurisdictions, the Company is exposed to increased uncertainty and risk arising from policy, le...
AI summary The Company faces transition risks due to evolving environmental policies, renewable energy mandates, and decarbonization efforts, which may cause material adverse effects. These risks include regulatory uncertainty, capital investment needs, insurance challenges, and potential litigation. The energy transition requires balancing reliability, affordability, and stakeholder expectations while adapting infrastructure and managing insurance and regulatory exposure.
Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) r...
AI summary Critical Audit Matters are issues from the current period audit that were communicated to the audit committee, relating to material accounts or disclosures and involving complex judgments. These matters do not alter the overall audit opinion on the financial statements.
Consolidated Balance Sheets As at millions of dollars December 31 2025 December 31 2024 Assets Current assets Cash and cash equivalents $ 349 $ 196 Restricted cash 16 17 Inventory (note 15) 821 781 Derivative instruments (notes 16 and 17)...
AI summary The consolidated balance sheets present the financial position of Nova Scotia Power Incorporated as of December 31, 2025, and December 31, 2024, highlighting key assets such as cash, inventory, PP&E, and regulatory assets. The document also includes the Management's Discussion and Analysis section, which provides insights into the company's financial performance and outlook.
Consolidated Balance Sheets (continued) As at millions of dollars December 31 2025 December 31 2024 Liabilities and Equity Current liabilities Short-term debt (note 24) $ 1,807 $ 1,400 Current portion of long-term debt (note 26) 1,201 234...
AI summary The consolidated balance sheets show a significant increase in liabilities and equity from December 31, 2024, to December 31, 2025, with notable changes in short-term and long-term debt, regulatory liabilities, and equity components such as retained earnings and accumulated other comprehensive income.
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 NSPI's operations and ex...
AI summary NSPI, a public utility under Nova Scotia's Public Utilities Act, is regulated by the NSEB using a cost-of-service model. Rates are set to recover prudently incurred costs and provide a reasonable return, with a 2024-2025 ROE range of 8.75% to 9.25%.
Brunswick Pipeline Brunswick Pipeline is a 145-kilometre pipeline delivering natural gas from the Saint John LNG import terminal near Saint John, New Brunswick to markets in the northeastern US. Brunswick Pipeline entered into a 25-year fi...
AI summary The Brunswick Pipeline, a 145-km natural gas pipeline regulated by the Canada Energy Regulator (CER), operates under a 25-year firm service agreement with Repsol Energy Canada. It includes scheduled toll increases and complies with the CER Act through its filed gas transportation tariff.
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.
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 risks from complex regulatory frameworks affecting cost recovery, ROE, and capital investments. Delays in regulatory approvals, inability to recover costs, or policy changes could cause Material Adverse Effects, including valuation impairments and service reliability issues. Regulatory stability is also threatened by government interference or shifts in public policy.
N-2Refiled Statements - NSPI - Redacted
30 passages
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI operates under complex regulatory frameworks affecting rates, cost recovery, and return on equity. Regulatory delays and decisions may hinder cost recovery, impact service reliability, and lead to material adverse effects. Government policy shifts and regulatory instability further amplify risks to NSPI's operations and investments.
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.
Management's Discussion & Analysis As at February 23, 2026 Management's Discussion & Analysis ("MD&A") provides a review of the results of operations of Nova Scotia Power Inc. during the fourth quarter of 2025 relative to the same quarter...
AI summary Nova Scotia Power Inc.'s Management's Discussion & Analysis (MD&A) reviews Q4 2025 and full-year 2025 financial results relative to 2024, along with selected 2023 data. It notes that NSPI's accounting policies are subject to the Nova Scotia Energy Board's (NSEB) examination and approval, with financial statements following USGAAP and available on SEDAR+.
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.
Nova Scotia Energy Reform Act: On October 15, 2025, the Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") announced that the organization will be phased in over two phases during an 18-month period. On December 1, 2025, t...
AI summary The Nova Scotia Independent Energy System Operator (IESO Nova Scotia) is being phased in over 18 months, with the first phase completed in December 2025 and the second by 2027. This follows Bill 404 - Energy Reform (2024) Act, which established the Nova Scotia Energy Board (NSEB) and initiated the transition to IESO Nova Scotia.
The Company generates internally sourced cash primarily through the generation, transmission and distribution of electricity. NSPI's customer base is diversified by both sales volumes and rates among customer classes. Circumstances that co...
AI summary NSPI generates cash through electricity generation, transmission, and distribution. Factors affecting cash generation include macroeconomic changes, fuel price fluctuations, regulatory decisions, environmental legislation, credit ratings, and weather patterns.
ENTERPRISE RISK AND RISK MANAGEMENT NSPI has a business-wide risk management process which is monitored by the Board of Directors, and also reviewed with the Emera Enterprise Risk Management Committee to ensure risks are appropriately iden...
AI summary NSPI's enterprise risk management process is overseen by its Board of Directors and reviewed by the Emera Enterprise Risk Management Committee to ensure effective risk identification, assessment, and control mechanisms are in place.
Regulatory and Political Risk NSPI is subject to complex legislative and regulatory frameworks that cover material aspects of their businesses. These frameworks influence key factors such as rates and cost structures, revenue requirements,...
AI summary NSPI operates under a cost-of-service regulatory model requiring approvals for rate changes and capital investments. Regulatory delays, cost recovery risks, and government policy shifts could cause material adverse effects, including valuation impairments and service reliability issues. The IESO Nova Scotia's operational uncertainties and environmental legislation changes further complicate regulatory stability.
Change in Law Risk The Company is also exposed to changes in the political environment and leadership, changes in law or regulations, changes to governmental policies, trade disputes, and the imposition of tariffs, any of which may impact...
AI summary NSPI faces risks from potential changes in laws, regulations, and policies, including deregulation or energy industry restructuring, which could increase competition, costs, or lead to Material Adverse Effects. NSPI cannot predict or effectively respond to such changes, which may impact operations and compliance.
Nova Scotia Energy Reform Act: On April 5, 2024, the Province enacted Bill 404 - Energy Reform (2024) Act. This legislation implements certain recommendations made by the Clean Electricity Solutions Task Force, which was established by the...
AI summary Nova Scotia enacted Bill 404 - Energy Reform (2024) Act, establishing the Nova Scotia Energy Board (NSEB) and transitioning to the Independent Energy System Operator (IESO) Nova Scotia. The IESO will be phased in over 18 months, with the first phase completed by December 2025. NSPI collaborates with the Province on these initiatives.
2025 Annual Financial Statements Attachment 3 Page 21 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Company will be required to manage the impacts of these ongoing changes on customer demand and rates, while maintaining and integra...
AI summary The company faces challenges in managing energy transition impacts, capital investment needs, and external factors affecting resiliency, renewable integration, and regulatory responses. Risks include insurance limitations for carbon assets, litigation from environmental harms, and climate change impacts on operations, reputation, and capital access.
Position Descriptions Chair of the Board The Chair of the Board, Mr. Balfour, is responsible for leading the Board in fulfilling its duties effectively and efficiently. The Chair helps ensure Board meetings function effectively, provides l...
AI summary The document outlines the roles and responsibilities of the Chair of the Board, Lead Director, and President/CEO of Nova Scotia Power Inc. (NSPI). It details governance structures, including the Lead Director's appointment process, performance evaluations, and the Chair's leadership duties. Mr. Ivany was appointed Lead Director in May 2024, succeeding Mr. James Eisenhauer.
Orientation and Continuing Education The Board and management believe that for new Directors to be effective in their roles they must be knowledgeable about the Company, its strategy, strengths and challenges. As well, effectiveness is enh...
AI summary The Board and management believe that new Directors must be knowledgeable about the Company and its operations to be effective. Orientation sessions provide information on the Company's business, strategy, and structure, along with reference materials such as financial reports, Board Charter, and the Emera Code of Conduct.
Orientation and Continuing Education for Directors The oversight function of Directors is enhanced when they are well informed about the Company's business and its industry. Management continually seeks opportunities to update, educate and...
AI summary The Board of Directors of Nova Scotia Power Inc. (NSPI) emphasizes the importance of ongoing education and orientation for directors to ensure they are well-informed about the company's business and industry. Management regularly provides updates and presentations on market trends and strategic matters, and the Board supports directors in attending relevant educational sessions.
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.
The following information is provided for each Director of NSPI as at December 31, 2025: Name and Residence Director Since (1) Principal Occupations During Past Five Years J. Lee Bragg Fall River, Nova Scotia, Canada 2010 Executive Chair o...
AI summary This text provides information about the directors of Nova Scotia Power Inc. (NSPI) as of December 31, 2025, including their names, residences, tenure, and professional backgrounds.
EXPERTS Ernst & Young LLP are the external auditors of NSPI. Ernst & Young LLP report that they are independent within the context of the CPA Code of Professional Conduct of the Chartered Professional Accountants of Nova Scotia.
AI summary Ernst & Young LLP serves as the external auditors for Nova Scotia Power Inc. and have confirmed their independence in accordance with the CPA Code of Professional Conduct in Nova Scotia.
FLI is based on reasonable assumptions and is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the FLI. Factors that could cause result...
AI summary Forward-looking information (FLI) is subject to various risks and uncertainties that could cause actual results to differ significantly from expectations. These include regulatory, economic, environmental, technological, and operational risks, among others.
Environmental Legislation and Regulations NSPI is subject to environmental laws and regulations set by both the Government of Canada and the Province of Nova Scotia (the "Province"). NSPI continues to work with both levels of government to...
AI summary NSPI is subject to environmental laws and regulations from the Government of Canada and Nova Scotia. It works with both levels of government to ensure compliance and minimize customer costs. NSPI expects to recover prudently incurred compliance costs and faces risks related to non-compliance with climate and environmental legislation.
Nova Scotia Energy Reform Act : On October 15, 2025, the Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") announced that the organization will be phased in over two phases during an 18-month period. On December 1, 2025,...
AI summary The Nova Scotia Independent Energy System Operator (IESO Nova Scotia) is being phased in over an 18-month period, with the first phase completed in December 2025 and the second phase expected to be completed in 2027. This follows the enactment of Bill 404 - Energy Reform (2024) Act, which established the Nova Scotia Energy Board (NSEB) and initiated the transition to IESO Nova Scotia.
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.
2025 Annual Financial Statements Attachment 6 Page 48 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 regulatory challenges and risks associated with the acquisition, operation, and decommissioning of energy infrastructure, highlighting the potential for Material Adverse Effects due to changes in government, policy, or regulatory decisions.
Change in Law Risk The Company is also exposed to changes in the political environment and leadership, changes in law or regulations, changes to governmental policies, trade disputes, and the imposition of tariffs, any of which may impact...
AI summary Emera is exposed to risks from changes in law, regulations, and policies, which could impact its business, energy markets, and economic conditions. These changes may include deregulation, restrictions on natural gas usage, and emerging data center policies, all of which could lead to increased competition, costs, or infrastructure needs.
Transition Risk: As government policy related to the environment, renewable energy, and decarbonization continues to shift in various operating jurisdictions, the Company is exposed to increased uncertainty and risk arising from policy, le...
AI summary The Company faces increased transition risk due to evolving environmental policies, renewable energy initiatives, and decarbonization efforts, leading to uncertainty in policy, legal, and regulatory frameworks. This may impact customer demand, rates, and the need for significant capital investment. Risks also include challenges in insuring carbon-emitting assets and potential litigation or regulatory action over environmental harms.
Management's Responsibility for Financial Reporting The accompanying consolidated financial statements of Emera Incorporated and the information in this annual report are the responsibility of management and have been approved by the Board...
AI summary This section outlines the responsibilities of management and the Board of Directors of Emera Incorporated for financial reporting. It emphasizes the role of the Audit Committee in ensuring the accuracy and reliability of financial statements, which are audited by Ernst & Young LLP. The financial statements are prepared in accordance with US GAAP and are approved by the Board for issuance to shareholders.
Accounting for the effects of rate regulation Description of the Matter As disclosed in note 7 of the consolidated financial statements, the Company has $3.2 billion in regulatory assets and $1.7 billion in regulatory liabilities. The Comp...
AI summary The document discusses the accounting challenges related to rate regulation for the Company, which has significant regulatory assets and liabilities. Auditing these impacts is complex due to the uncertainty of future regulatory decisions and the need to assess the probability of cost recovery. The audit process involved reviewing regulatory orders, filings, and legal correspondence to evaluate the Company's financial disclosures.
2025 Annual Financial Statements Attachment 6 Page 68 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 audit of the 2025 Annual Financial Statements involved reviewing contracts, assessing valuation models, and ensuring consistency in financial disclosures. Chartered Professional Accountants have served as the auditor since 1998.
Electricity Act , 2024: On June 1, 2024, the Electricity Act, 2024 took effect. The legislation purports to remove the jurisdiction of the GBPA over GBPC and to have the Utilities Regulation and Competition Authority, another Bahamian regu...
AI summary The Electricity Act, 2024, which came into effect on June 1, 2024, removes the jurisdiction of the GBPA over GBPC and assigns it to the Utilities Regulation and Competition Authority, a Bahamian regulator.
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.
General Economic Risk The Company has exposure to the macro-economic conditions in North America and in other geographic regions in which Emera operates. Like most utilities, economic factors such as consumer income, employment and housing...
AI summary The Company faces economic risks due to macroeconomic conditions affecting consumer demand for electricity and natural gas. These risks include challenges in recovering rate increases, credit and counterparty risks, and potential impacts from regulatory and legislative changes.