N-12025 Annual Financial Statements - Redacted
36 passages
2025 Annual Financial Statements Attachment 2 Page 17 of 48 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NRCan Electricity Predevelopment Program ("EPP"): In 2023 and 2024, NSPI was approved for grants under the NRCan EPP program to fund th...
AI summary NSPI received grants under NRCan's Electricity Predevelopment Program (EPP) for clean energy projects in 2023-2024, with eligibility until 2026. Funding of $27M (2025) and $7M (2024) was recorded as a reduction in PP&E carrying amounts for eligible project costs up to $34M maximum.
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.
F. Collaborative Arrangements For the years ended December 31, 2025 and 2024, the Company has identified the following material collaborative arrangements: The Company is a participant in three wind energy projects in Nova Scotia. The perc...
AI summary NSPI participates in three Nova Scotia wind energy projects, owning 47.4% of a 23.3 MW project with Renewable Energy Services Ltd. NSPI has power purchase agreements to buy all output, with revenues and operating expenses recorded in regulated fuel and OM&G categories, respectively. Expenses recognized in 2025 were $3 million (2024: $2 million).
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'.
INTRODUCTION AND STRATEGIC OVERVIEW NSPI is a vertically integrated regulated electric utility. It is the primary electricity supplier in Nova Scotia, Canada. NSPI has $8.1 billion of assets and provides electricity generation, transmissio...
AI summary NSPI, Nova Scotia's primary electricity supplier, operates with $8.1 billion in assets, serving 565,000 customers. It owns 2,422 MW of generating capacity, 40% from fossil fuels, and 40% of its 2025 sales from renewables. NSPI has agreements with NLH for energy delivery and purchases renewable energy from IPPs and COMFIT participants, including 573 MW of capacity. NLH is obligated to supply 900 GWh annually to NSPI over 35 years.
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.
NSPI's fuel costs are affected by commodity prices and generation mix, which is largely dependent on economic dispatch of the generating fleet. NSPI brings the lowest cost options on stream first after renewable energy from IPPs including...
AI summary NSPI's fuel costs are influenced by commodity prices and the generation mix, which is determined by economic dispatch of the generating fleet. Renewable energy from IPPs and COMFIT participants, along with the NS Block of energy, plays a significant role in the generation mix. The NS Block carries no additional fuel costs beyond approved annual assessments. Factors such as plant outages, carbon pricing programs like OBPS, and compliance with environmental regulations also affect the generation mix.
2025 Annual Financial Statements Attachment 3 Page 8 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The high availability and capability of thermal generating stations continue to play a role in providing reliable energy to customers wh...
AI summary In 2025, thermal plant availability was 80 per cent, slightly down from 82 per cent in 2024 but consistent with a four-year average of 81 per cent, which aligns with industry standards. This highlights the continued reliability of thermal generation during the transition to renewable energy.
Changes in Environmental Legislation NSPI is subject to extensive regulation by federal, provincial and municipal authorities regarding environmental matters; primarily related to its utility operations. This includes laws, regulations and...
AI summary NSPI faces regulatory obligations under federal, provincial, and municipal environmental laws, including GHG emission targets, renewable energy standards, and coal phase-out by 2030. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with potential risks for NSPI if regulations change. NSPI collaborates with governments to align with carbon reduction goals.
Renewable Energy Regulations: The Province has established targets with respect to the percentage of renewable energy in NSPI's generation mix. Under the RER, the Company currently has a provincially mandated target of achieving at least 4...
AI summary Nova Scotia has set renewable energy targets for NSPI, requiring 40% renewable energy sales from 2020-2029 and 80% by 2030. A $10M penalty was imposed on NSPI for 2022 non-compliance, prompting an appeal to NSEB. The Province aims to phase out coal by 2030 under the Environmental Goals and Climate Change Reduction Act.
2025 Annual Financial Statements Attachment 3 Page 20 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Severe weather events or conditions such as hurricanes, floods, storm surge, tornadoes, droughts, fires, extreme temperatures, snow or...
AI summary The document outlines risks from severe weather events to the Company's infrastructure, including physical damage, service outages, and increased costs. These risks could lead to revenue loss, higher insurance and repair costs, and potential regulatory cost recovery challenges. Hydroelectric generation is also vulnerable to changing precipitation and temperature patterns.
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.
2025 Annual Financial Statements Attachment 5 Page 7 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI owns the following generating facilities: - Four dual fired facilities: - o Tufts Cove - 3 units dual fired with either heavy fuel...
AI summary NSPI owns a diverse portfolio of generation facilities, including dual-fired plants, hydro stations, wind projects, biomass, solar, and battery storage. It contracts with IPPs under renewable regulations and COMFIT. NLH's NS Block delivery obligations began in 2021, requiring annual energy delivery to NSPI over 35 years.
Renewable Electricity Regulations Under the provincially legislated RER, starting in 2020, 40 per cent of electric sales must be generated from renewable sources. NSPI met this target in 2023 and 2024, and in 2025 met this target with more...
AI summary Under Nova Scotia's Renewable Electricity Regulations (RER), NSPI met 40% renewable energy targets in 2023-2025 but faced a $10M penalty for 2022 non-compliance. NSPI appealed the penalty through the NSEB, with the hearing concluding in 2025 and a decision pending.
Electricity Reform Act The Electricity Reform Act was approved by the Province in December 2013. The legislation permits licensed retail suppliers to sell renewable, low impact electricity generated within the Province directly to retail c...
AI summary The Electricity Reform Act, approved in December 2013, allows licensed retail suppliers to sell renewable electricity directly to customers in Nova Scotia. NSPI developed 'renewable to retail' tariffs approved by NSEB in 2016. As of December 2025, one license has been issued, with sales expected to commence in 2026.
Clean Energy Transition As part of its IRP process, NSPI filed an updated IRP Action Plan and Roadmap with the NSEB in August of 2023. On October 11, 2023, the Province released the 2030 Clean Power Plan which outlines the Province's strat...
AI summary NSPI's updated IRP Action Plan aligns with the Province's 2030 Clean Power Plan, aiming for 80% renewable electricity by 2030 through 1,000 MW of wind and 300 MW of solar. Grid investments, energy storage, and thermal fleet upgrades are required. NSPI seeks funding collaboration with federal/provincial governments to manage transition costs.
Renewable Electricity Regulations The Province has established targets with respect to the percentage of renewable energy in NSPI's generation mix. Under the RER, the Company currently has a provincially mandated target of achieving at lea...
AI summary Nova Scotia has set renewable energy targets under the RER, requiring NSPI to generate 40% of energy sales from renewables (2020-2029) and 80% by 2030. The province also aims to phase out coal-fired electricity by 2030. NSPI collaborates with provincial and federal governments to meet these targets, with further details in the 'Environmental Matters' section.
Other Legislation In November 2023, the Province enacted amendments to the Electricity Act which permit the Governor in Council to approve energy storage projects proposed by a public utility and owned wholly or in majority by the public u...
AI summary In 2023, Nova Scotia amended the Electricity Act and Public Utilities Act to expand energy storage project approvals, increase penalties for NSPI noncompliance, and enable RFPs for energy storage. Amendments also empower the Province to mandate power purchase agreements for renewable generation, with NSPI managing transmission and sales. The Governor in Council directed NSPI to install grid-scale batteries.
Visible Growth Plan $20B capital investment plan through 2030 committed to renewable integration, grid reliability, and modernization
AI summary The Visible Growth Plan outlines a $20 billion capital investment through 2030, focusing on renewable integration, grid reliability, and modernization to enhance Nova Scotia's energy infrastructure and support long-term sustainability goals.
20+ years of investments - Wind in Nova Scotia - Solar in Florida - Big Bend modernization - Maritime Link hydro
AI summary The document highlights long-term investments in energy projects, including wind in Nova Scotia, solar in Florida, Big Bend modernization, and the Maritime Link hydro project, emphasizing infrastructure and renewable energy initiatives over two decades.
Reduced CO2 emissions by nearly half (1) while modernizing grids - Replacing coal - Integrating renewables - Grid upgrades
AI summary The text highlights strategies to reduce CO2 emissions by nearly 50% through coal replacement, renewable energy integration, and grid modernization efforts. These measures aim to decarbonize the energy sector while upgrading infrastructure to support cleaner energy sources.
Responding to evolving drivers - Severe weather risks & resilience - Government policies & targets Electrification & demand - Emerging technologies
AI summary The document outlines key areas of focus for responding to evolving challenges, including severe weather resilience, government policies targeting electrification and demand management, and the integration of emerging technologies.
Sustaining momentum through customer-focused capital plan - Grid reliability & modernization - Renewable integration Technology adoption
AI summary The document outlines a customer-focused capital plan emphasizing grid reliability, modernization, renewable energy integration, and technology adoption to sustain momentum in Nova Scotia's energy sector.
Initiatives across our core operating jurisdictions (2) – paced with customer affordability in mind - Florida: Strengthening reliability and affordability while modernizing the generation fleet via investments in solar, battery storage, fu...
AI summary The text outlines initiatives in Florida and Nova Scotia focused on enhancing grid reliability, affordability, and climate policy alignment. Nova Scotia's efforts include grid resilience, interties, hydro, battery storage, coal retirement, and renewable energy investments, aligning with provincial climate targets. CO2 reductions are compared to 2005 levels, with core jurisdictions encompassing Emera's operations in Nova Scotia (NSPI) and Florida (TEC & PGS).
Letter from the Chair and the CEO Fellow shareholders, 2025 was defined by meaningful progress for Emera, reflecting the benefit of years of disciplined investment, operational excellence, and continual focus on long-term strategy and deli...
AI summary Emera highlights 2025 progress through disciplined investment, balance sheet strength, and long-term strategy. In 2026, the company focuses on modernizing energy systems, enhancing reliability, and managing costs amid rising demand and geopolitical challenges. Projects in Florida and Nova Scotia aim to expand capacity, integrate renewables, and improve grid resilience.
2025 Highlights Emera's momentum throughout 2025 came from consistent execution and commitment to operational excellence. Across our operations we advanced major capital projects, and in turn, hit key milestones. We translated our capital...
AI summary Emera's 2025 achievements include advancing capital projects, operational milestones, and strategic initiatives. Key highlights include Nova Scotia's grid-scale battery installations, Tampa Electric's solar expansion, the Maritime Link's performance, and progress on selling New Mexico Gas Company. These efforts support renewable integration, system resilience, and long-term business positioning.
Renewable Energy Regulations ("RER"): On May 26, 2023, NSPI initiated an appeal, through a proceeding with the NSEB, of the $10 million penalty levied on NSPI by the Province for non-compliance with the RER compliance period ending in 2022...
AI summary NSPI appealed a $10 million penalty from the Province for non-compliance with the RER compliance period ending in 2022. The hearing concluded in 2025, and NSPI awaits a decision from the NSEB.
Other Electric Utilities Other Electric Utilities includes Emera (Caribbean) Incorporated ("ECI"), a holding company with regulated electric utilities. ECI's regulated utilities include vertically integrated regulated electric utilities of...
AI summary Other Electric Utilities, including Emera (Caribbean) Incorporated, operates regulated utilities in Barbados, Grand Bahama, and St. Lucia. 2026 earnings are expected to be consistent with 2025, with capital investment of $110 million USD focused on renewable energy and battery storage.
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.
Environmental Legislation: Emera is subject to extensive regulation by federal, provincial, state, regional and local authorities regarding environmental matters, primarily related to its utility operations. This includes laws, regulations...
AI summary Emera faces stringent environmental regulations across jurisdictions, including GHG emission targets, renewable energy mandates, and PFAS-related obligations. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with Nova Scotia targeting coal phase-out by 2030. Non-compliance risks Material Adverse Effects, while PFAS regulations could increase operational costs.
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.
Natural Resources Canada ("NRCan") Smart Renewables & Electrification Pathways ("SREP"): On March 27, 2024, NSPI was approved for a grant under the NRCan SREPs to fund the construction of three 50 MW battery storage systems in Nova Scotia....
AI summary NSPI received a 33% grant under NRCan's SREP program for three 50 MW battery storage systems in Nova Scotia, with eligible costs until 2027. Funding of $45M (2025) and $26M (2024) was recorded as a reduction in PP&E carrying value.
US One Big Beautiful Bill Act ("OBBBA"): On July 4, 2025, the OBBBA was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017. It also includes si...
AI summary The US One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, making permanent tax provisions from the 2017 Tax Cuts and Jobs Act and modifying clean energy tax credits from the Inflation Reduction Act. The IRS issued guidance on construction start dates for tax credits, with no material impact on Emera's 2025 financials.
Chart of Accounts for Nova Scotia Power Inc. (Consolidated) As of December 31, 2025
AI summary The document presents the Chart of Accounts for Nova Scotia Power Inc. as of December 31, 2025, outlining the financial structure and categorization of assets, liabilities, equity, revenues, and expenses for the company.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 604050 INTEREST INCOME 604100 INTEREST INCOME MS RESIDENTIAL FINANCING 604120 INTEREST INCOME DSM 604150 INTEREST INCOME HEAT PUMPS PROGRAM 604200 INTEREST INCOME MS COMMERC...
AI summary The document presents a table of account segments and line of business segments with their respective values and descriptions, including interest income, income tax expenses, preferred dividends, and various line of business categories such as solid fuel, natural gas, wind, hydro, and others.
LOCATION SEGMENT Location Segment Value Location Segment Description 017 EE US SUB 1 022 NSP PIPELINE 025 SCOTIA POWER US 033 CAYMAN 456 LTD 038 EMERA ENERGY LP 039 EMERA ENERGY LP HOLDCO 060 BAYSIDE POWER INC 061 BAYSIDE POWER LIMITED PAR...
AI summary The text lists various location segments and their corresponding descriptions, primarily involving Nova Scotia Power and related entities, including subsidiaries, pipeline operations, and international locations.
N-2Refiled Statements - NSPI - Redacted
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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 capital investment for renewable energy integration, with estimated costs of $81M in 2026 and $111M from 2027-2030. Compliance is material, and failure could harm the company. No significant compliance issues were found in audits as of December 31, 2025.
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 $7M (South Canoe) and $2M (Sable Wind) in expenses under 'Fuel for generation and purchased power' and $3M in OM&G costs. Expenses remained stable compared to 2024.
INTRODUCTION AND STRATEGIC OVERVIEW NSPI is a vertically integrated regulated electric utility. It is the primary electricity supplier in Nova Scotia, Canada. NSPI has $8.1 billion of assets and provides electricity generation, transmissio...
AI summary NSPI, Nova Scotia's primary electricity supplier with $8.1B in assets, operates 2,422 MW of generating capacity (44% coal/oil, 28% gas/oil, 19% renewables). It sources 40% of sales from renewables and has agreements with NLH for 900 GWh annually. NSPI also owns grid-scale batteries and contracts with IPPs/COMFIT participants for 573 MW of renewable capacity.
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.
2025 Annual Financial Statements Attachment 3 Page 8 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The high availability and capability of thermal generating stations continue to play a role in providing reliable energy to customers wh...
AI summary In 2025, thermal plant availability was 80%, slightly lower than 82% in 2024 and in line with a four-year average of 81%, indicating continued reliability despite the transition to renewable generation.
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.
Changes in Environmental Legislation NSPI is subject to extensive regulation by federal, provincial and municipal authorities regarding environmental matters; primarily related to its utility operations. This includes laws, regulations and...
AI summary Nova Scotia Power Inc. (NSPI) faces regulatory requirements from federal, provincial, and municipal authorities on environmental matters, including GHG emissions, renewable energy standards, and coal phase-out by 2030. Both Nova Scotia and Canada aim for net-zero emissions by 2050, with potential risks if NSPI fails to comply with evolving regulations.
Renewable Energy Regulations: The Province has established targets with respect to the percentage of renewable energy in NSPI's generation mix. Under the RER, the Company currently has a provincially mandated target of achieving at least 4...
AI summary Nova Scotia has mandated NSPI to achieve 40% renewable energy sales by 2029 and 80% by 2030 under the RER. A $10M penalty was imposed on NSPI for 2022 non-compliance, which NSPI appealed to the NSEB in 2023. The appeal hearing concluded in 2025, with a decision pending.
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This AIF, including the documents incorporated herein by reference, contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities l...
AI summary This document contains forward-looking information about NSPI's financial performance, operations, and regulatory compliance. It includes projections and assumptions regarding revenue, capital investments, regulatory decisions, environmental initiatives, and potential challenges such as cyber incidents and global economic conditions.
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.
To ensure reliability of service, NSPI aims to maintain a generating capacity greater than firm peak demand. The Company owns 2,422 MW of generating capacity, of which 44 per cent is coal and/or oilfired; 28 per cent is natural gas and/or...
AI summary NSPI aims to maintain generating capacity greater than firm peak demand, with a diversified mix of energy sources. In 2025, it began operations of two 50 MW grid-scale battery facilities and has contracts to purchase renewable energy from IPPs, including COMFIT participants, and owns 153 MW of Maritime Link capacity.
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.
2025 Annual Financial Statements Attachment 5 Page 7 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSPI owns the following generating facilities: - Four dual fired facilities: - o Tufts Cove - 3 units dual fired with either heavy fuel...
AI summary NSPI owns various generating facilities, including dual-fired, solid-fuel, gas turbine, hydro, wind, biomass, and solar facilities, as well as battery storage. NSPI also contracts with IPPs for renewable electricity and has obligations related to the NS Block delivery from Muskrat Falls.
Renewable Electricity Regulations Under the provincially legislated RER, starting in 2020, 40 per cent of electric sales must be generated from renewable sources. NSPI met this target in 2023 and 2024, and in 2025 met this target with more...
AI summary Nova Scotia Power Inc. (NSPI) was fined $10 million in 2023 for failing to meet the 40% renewable electricity sales target under the Renewable Electricity Regulations (RER) for the 2022 compliance period. NSPI appealed the penalty through the Nova Scotia Energy Board (NSEB), with the hearing concluding in 2025 and a decision pending.
Electricity Reform Act The Electricity Reform Act was approved by the Province in December 2013. The legislation permits licensed retail suppliers to sell renewable, low impact electricity generated within the Province directly to retail c...
AI summary The Electricity Reform Act, approved in December 2013, allows licensed retail suppliers to sell renewable electricity directly to customers in Nova Scotia. Tariffs enabling these transactions were approved by the NSEB in March 2016. As of December 31, 2025, one license has been issued, with sales expected to begin in 2026.
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 is regulated by various authorities on environmental matters, including GHG emissions, renewable energy targets, and waste management. Non-compliance with these regulations could impact NSPI's operations and financial performance. Further details are provided in the MD&A section and available on SEDAR+.
Clean Energy Transition As part of its IRP process, NSPI filed an updated IRP Action Plan and Roadmap with the NSEB in August of 2023. On October 11, 2023, the Province released the 2030 Clean Power Plan which outlines the Province's strat...
AI summary NSPI has filed an updated IRP Action Plan and Roadmap with the NSEB, aligning with the Province's 2030 Clean Power Plan. The plan includes adding 1,000 MW of onshore wind and 300 MW of solar capacity, requiring grid investments, energy storage, and thermal fleet upgrades. NSPI is collaborating with federal and provincial governments to determine funding and minimize customer costs.
Renewable Electricity Regulations The Province has established targets with respect to the percentage of renewable energy in NSPI's generation mix. Under the RER, the Company currently has a provincially mandated target of achieving at lea...
AI summary Nova Scotia has set renewable energy targets for NSPI, requiring 40% renewable energy sales from 2020-2029 and 80% from 2030 onward. The province also aims to phase out coal-fired electricity by 2030. NSPI collaborates with provincial and federal governments on achieving these targets.
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.
2025 Annual Financial Statements Attachment 5 Page 25 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - "GGPPA" means the Greenhouse Gas Pollution Pricing Act; - "Government" means the Government of Canada; - "GRA" means a General Rate A...
AI summary This document defines key terms and abbreviations used in the 2025 Annual Financial Statements of Nova Scotia Power Inc. (NSPI), including regulatory and technical terminology related to energy, finance, and legal frameworks.
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 entities related to Nova Scotia Power Incorporated (NSPI) and its affiliated companies, including the Maritime Link Project and the Nova Scotia Renewable Electricity Regulations. It also outlines the scope of the 2025 Annual Information Form (AIF) and references the Public Utilities Act of Nova Scotia.
20+ years of investments - Wind in Nova Scotia - Solar in Florida - Big Bend modernization - Maritime Link hydro
AI summary The text highlights long-term energy investments, including wind in Nova Scotia, solar in Florida, Big Bend modernization, and the Maritime Link hydro project, indicating a focus on renewable energy and infrastructure development.
Reduced CO2 emissions by nearly half (1) while modernizing grids - Replacing coal - Integrating renewables - Grid upgrades
AI summary The text highlights efforts to reduce CO2 emissions by nearly half through the replacement of coal with renewable energy sources and the modernization of the grid infrastructure.
Responding to evolving drivers - Severe weather risks & resilience - Government policies & targets Electrification & demand - Emerging technologies
AI summary The document discusses key drivers influencing the energy sector, including severe weather risks, government policies targeting electrification and demand management, and the emergence of new technologies. These factors are shaping the regulatory and operational landscape in Nova Scotia.
Sustaining momentum through customer-focused capital plan - Grid reliability & modernization - Renewable integration Technology adoption
AI summary The text highlights the importance of grid reliability, modernization, and the integration of renewable technologies as key components of a customer-focused capital plan.
Initiatives across our core operating jurisdictions (2) – paced with customer affordability in mind - Florida: Strengthening reliability and affordability while modernizing the generation fleet via investments in solar, battery storage, fu...
AI summary The text outlines initiatives in Florida and Nova Scotia aimed at improving reliability and affordability, with a focus on renewable energy and climate policy alignment. Nova Scotia's efforts include grid resilience, interties, hydro, battery storage, and coal retirement, in line with provincial climate targets of 80% renewable energy and coal-free electricity by 2030.
Letter from the Chair and the CEO Fellow shareholders, 2025 was defined by meaningful progress for Emera, reflecting the benefit of years of disciplined investment, operational excellence, and continual focus on long-term strategy and deli...
AI summary Emera's 2025 progress is attributed to disciplined investment and operational excellence, with a focus on long-term strategy and financial resilience. The company is modernizing its energy systems and strengthening grid reliability, particularly in Florida and Nova Scotia, to meet growing energy demand and support renewable integration.
2025 Highlights Emera's momentum throughout 2025 came from consistent execution and commitment to operational excellence. Across our operations we advanced major capital projects, and in turn, hit key milestones. We translated our capital...
AI summary Emera achieved operational excellence in 2025 with major capital projects and strategic initiatives, including the opening of new facilities, battery storage projects in Nova Scotia, and the continued performance of the Maritime Link. Strategic progress included steps toward the sale of New Mexico Gas Company.
Renewable Energy Regulations ("RER"): On May 26, 2023, NSPI initiated an appeal, through a proceeding with the NSEB, of the $10 million penalty levied on NSPI by the Province for non-compliance with the RER compliance period ending in 2022...
AI summary NSPI appealed a $10 million penalty for non-compliance with the RER compliance period ending in 2022. The hearing concluded in 2025, and NSPI is awaiting a decision.
US One Big Beautiful Bill Act ("OBBBA") On July 4, 2025, the OBBBA was signed into law. The OBBBA makes permanent many of the expired and expiring tax provisions originally enacted in the Tax Cuts and Jobs Act of 2017 . It also includes si...
AI summary The US One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, making permanent many tax provisions from the 2017 Tax Cuts and Jobs Act and modifying clean energy tax credits from the Inflation Reduction Act. IRS guidance on construction timelines for wind and solar projects was released on August 15, 2025, with no material impact on Emera's 2025 financial statements.
Annual production volumes are summarized in the following table: Production Volumes (GWh) 2025 2024 Natural gas 17,470 18,027 Solar 2,419 2,250 Purchased power 2,004 1,569 Coal 46 32 Total 21,939 21,878 2025 Annual Financial Statements Att...
AI summary The text provides annual production volumes for various energy sources in 2025 and 2024, including natural gas, solar, purchased power, and coal. It also references the Strategic Overview section of Management's Discussion and Analysis from the 2025 Annual Financial Statements.
Environmental Legislation: Emera is subject to extensive regulation by federal, provincial, state, regional and local authorities regarding environmental matters, primarily related to its utility operations. This includes laws, regulations...
AI summary Emera is regulated by various authorities on environmental matters, including GHG emissions, renewable energy standards, and waste management. Nova Scotia and Canada have set net-zero goals by 2050, with Nova Scotia targeting coal phase-out by 2030. PFAS regulations could also impact operations and land acquisition strategies.
Weather Risk A Material Adverse Effect may arise from seasonal weather variations impacting energy consumption, as well as severe weather events, changing air temperatures, wildfires and other severe weather conditions that are expected to...
AI summary The document discusses the risks posed by weather variations and severe weather events to Nova Scotia Power Inc.'s operations, including impacts on energy consumption, infrastructure damage, fuel supply disruptions, and potential financial losses. These risks could lead to a Material Adverse Effect if not mitigated or recovered through regulatory processes.
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.
Nature of Operations Emera Incorporated ("Emera" or the "Company") is an energy and services company that invests in electricity generation, transmission and distribution, and gas transmission and distribution. At December 31, 2025, Emera'...
AI summary Emera Incorporated is an energy and services company with operations in electricity generation, transmission, distribution, and gas transmission. It operates in multiple regions including Florida, Nova Scotia, New Mexico, and the Caribbean, with various subsidiaries and equity interests in transmission and pipeline projects.
2025 Annual Financial Statements Attachment 6 Page 76 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 outlines the strategic overview and management's discussion and analysis of Emera's 2025 annual financial statements. It details Emera's other segment, which includes investments in non-regulated energy companies, financing subsidiaries, and other related entities.
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.
Collaborative Arrangements For the years ended December 31, 2025 and 2024, the Company has identified the following material collaborative arrangements: Through NSPI, the Company is a participant in three wind energy projects in Nova Scoti...
AI summary The Company is involved in three wind energy projects in Nova Scotia through NSPI, with revenue and expenses related to these projects recorded in regulated fuel and OM&G. In 2025, NSPI recognized $12 million in net expense under regulated fuel and $3 million under OM&G, similar to 2024.