N-12025 Annual Financial Statements - Redacted
39 passages
Regulated Balance Sheets As at December 31 December 31 December 31 December 31 millions of Canadian dollars 2025 2024 2025 2024 Assets Liabilities and Equity Current assets Current liabilities Receivables, net $ 557 $ 417 Bank indebtedness...
AI summary The document presents the regulated balance sheets for the years ending December 31, 2025, and December 31, 2024, showing changes in assets, liabilities, and equity. Key items include increases in current assets, long-term liabilities, and equity.
REDACTED 2025 Annual Financial Statements Attachment 1 Page 5 of 6 As at December 31 millions of Canadian dollars 2025 Unregulated Retained Earnings Unregulated retained earnings - December 31, 2024 $200.8 Unregulated compensation (includi...
AI summary The text presents a table from the 2025 Annual Financial Statements, focusing on unregulated retained earnings, property, plant, and equipment, as well as income taxes and related party transactions. It includes details on unregulated compensation, interest and depreciation expenses, and various adjustments affecting financial figures.
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 third-party regulators recover prudently incurred costs and allow reasonable returns on invested capital. This framework aligns with principles of cost recovery and revenue requirement, ensuring fair compensation for service providers while protecting consumer interests.
Regulated electric revenue: Electric 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 when electricit...
AI summary Electric revenues are recognized on an accrual basis when electricity is delivered, including billed and estimated unbilled revenues. The Company estimates unbilled revenue using assumptions about demand patterns, weather, line losses, and customer class changes, based on rates approved by the NSEB.
The following disaggregates the Company's revenue by major source: For the Year ended December 31 millions of dollars 2025 2024 Residential $ 1,073 $ 997 Commercial 522 499 Industrial 270 276 Other 43 41 Electric revenue 1,908 1,813 Other...
AI summary The document provides a disaggregation of the Company's revenue by major source for the years 2025 and 2024, showing revenue from residential, commercial, industrial, and other categories, along with total electric revenue and other revenue.
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.
A summary of the activity related to employee and director DSUs for the year ended December 31, 2025, is presented in the following table: Weighted Average Grant Date Fair Weighted Average Grant Date Fair Employee DSU Value Director DSU Va...
AI summary The document provides a summary of activity related to employee and director Deferred Share Units (DSUs) for the year ended December 31, 2025, including changes in the number of units, weighted average grant date fair value, compensation costs, tax benefits, intrinsic value, and cash payments made under the DSU plan.
25. INVESTMENTS SUBJECT TO SIGNIFICANT INFLUENCE Carrying Value as at December 31 December 31 Ownership (2) millions of dollars 2025 2024 2025 WTI (1) $ 9 $ - 50% (1) Equity earnings issued for the three months and year ended December 31,...
AI summary The section discusses investments subject to significant influence, specifically WTI with a 50% ownership stake as of December 31, 2025, and notes that equity earnings for the period were nil.
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 NSEB on September 18, 2025, proposing 1.8% and 2.4% annual rate increases for 2026 and 2027, respectively, generating $62M and $108M in annual revenue. The hearing concluded in January 2026, with a decision expected by early Q2 2026.
Highlights of the changes are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Net income – 2024 $ 71 $ 160 Increased operating revenues (refer to "Operating Revenues" sec...
AI summary The text outlines changes in net income and operating revenues for the periods ending December 31, 2024 and 2025, noting increases in operating revenues and fuel costs, as well as impacts from the Cybersecurity Incident and changes in income tax recovery.
NSPI's operating revenues include sales of electricity and other services as summarized in the following table: Three months ended Year ended For the December 31 December 31 millions of dollars 2025 2024 2025 2024 Electric revenues $ 495 $...
AI summary NSPI's operating revenues include sales of electricity and other services, with electric revenues increasing from $467 million in 2024 to $495 million in 2025, and other revenues decreasing from $42 million to $12 million in 2024.
Highlights of the changes in fuel for generation and purchased power are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Fuel for generation and purchased power – 2024 $...
AI summary The document highlights changes in fuel costs for generation and purchased power for the periods ending December 31, 2024, and December 31, 2025, with various factors influencing these changes, including the increased Maritime Link assessment, changes in generation mix, and commodity prices. The FAM and FAM Regulatory Deferral are also discussed.
Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...
AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025, and December 31, 2024, including increases in receivables, income taxes receivable, and pension assets, as well as changes in debt levels and regulatory assets and liabilities. These changes are attributed to factors like capital investment, timing of payments, and tax credits.
Net cash provided by operating activities decreased $801 million to $118 million in 2025 compared to $919 million in 2024. Operating cash flow before change in working capital decreased $538 million primarily due to increased fuel for gene...
AI summary Net cash from operating activities dropped significantly in 2025, mainly due to higher fuel and purchased power costs, increased OM&G expenses, and changes in working capital, partially offset by higher electric revenues and tax recoveries.
Nova Scotia Power Incorporated - Management Information Circular 2026 Corporate Objective Weight- ing (%) Result Payout (%) Customer Building a reputation for customer\nexperience Objectives included: Threshold: Achieve 2025 Customer First...
AI summary The Management Information Circular 2026 outlines corporate objectives for Nova Scotia Power Incorporated, including customer experience, asset management, and financial goals. Key initiatives include customer training, service restoration improvements, and financial targets such as net earnings and cash flow from operations. Performance metrics and payouts are tied to these objectives.
Revenue and Electricity Sales Volumes by Customer Class For the years ended Electric Revenues (%) GWh Electric Sales Volumes (%) December 31 2025 2024 2025 2024 Residential 56.2% 55.0% 49.4% 48.2% Commercial 27.4% 27.5% 28.8% 28.8% Industr...
AI summary The table presents revenue and electricity sales volumes by customer class for 2025 and 2024, showing the distribution of electric revenues and sales among residential, commercial, industrial, and other categories. The data highlights the percentage contribution of each customer class to total revenue and electricity sales.
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 regulatory model, with approved ROE ranges of 8.75–9.25% for 2023–2025, based on a 40% common equity component. The ROE range remains unchanged for 2026 pending NSEB approval in the 2025 GRA.
2022 GRA and Settlement Agreement On February 2, 2023, the NSEB approved the GRA Settlement Agreement between NSPI, key customer representatives and participating interest groups. This resulted in average customer rate increases of 6.9 per...
AI summary The 2022 GRA Settlement Agreement approved by NSEB on February 2, 2023, resulted in 6.9% and 6.5% average rate increases in 2023 and 2024, respectively. It established storm and DSM riders for cost recovery, with the storm rider enabling recovery of major storm restoration costs exceeding $10M annually, and the DSM rider allowing NSPI to recover DSM program costs via a regulatory asset/liability.
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 2025 GRA with NSEB, proposing 1.8% and 2.4% annual rate increases for 2026 and 2027, respectively, generating $62M and $108M in additional revenue. The hearing concluded in January 2026, with a decision expected by early Q2 2026.
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 document presents a reconciliation of Net Income to EBITDA and Adjusted EBITDA for Nova Scotia Power Inc. (NSPI) over three months and a year, showing EBITDA of $655M (2025) and Adjusted EBITDA of $793M (2025), with adjustments for items like MTM gains, sale-related charges, and wind-down costs.
Consolidated Financial Highlights For the millions of dollars Three months ended December 31 Year ended December 31 Adjusted net income 2025 2024 2025 2024 2023 Florida Electric Utility $ 119 $ 120 $ 845 $ 644 $ 627 Canadian Electric Utili...
AI summary The document presents consolidated financial highlights for various business segments, including Adjusted net income, MTM (loss) gain, and other financial charges and gains for the periods ending December 31, 2025 and 2024. It includes figures for Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, and other segments.
Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder information
AI summary The text outlines key sections of a financial report, including a strategic overview, management's discussion and analysis, consolidated financial statements, leadership information, and shareholder details.
The following table highlights significant changes in adjusted net income from 2024 to 2025: For the millions of dollars Three months ended December 31 Year ended December 31 Adjusted net income – 2024 $ 246 $ 849 Operating Unit Performanc...
AI summary The text presents a table showing changes in adjusted net income and cash flow from 2024 to 2025, highlighting factors like revenue from new base rates, weather conditions, and operational expenses. It also includes details on total assets and long-term debt, excluding certain balances classified as held for sale.
Financial Highlights
AI summary The document provides an overview of key financial highlights, including management's discussion and analysis, capital expenditures, and various regulatory and compliance considerations relevant to Nova Scotia Power Incorporated.
Florida Electric Utility For the Three months ended December 31 Year ended December 31 millions of USD (except as indicated) 2025 2024 2025 2024 Operating revenues – regulated electric $ 706 $ 582 $ 3,115 $ 2,526 Regulated fuel for generat...
AI summary The financial performance of Florida Electric Utility is presented for the three months and year ended December 31, 2025, showing operating revenues, regulated fuel costs, and contributions to net income. Average fuel costs remain stable at around $31 per MWh.
Highlights of net income changes are summarized in the following table: For the millions of USD Three months ended December 31 Year ended December 31 Contribution to consolidated net income – 2024 $ 83 $ 468 Increased operating revenues, p...
AI summary The text highlights changes in net income for 2024 and 2025, noting factors such as increased operating revenues due to storm cost recovery, new base rates, and higher regulatory deferral revenue, as well as increased fuel costs, OM&G expenses, and depreciation and amortization.
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 Nova Scotia Power Incorporated (NSPI) is exposed to macroeconomic conditions affecting demand for electricity and natural gas. Economic factors like consumer income and inflation may impact customers' ability to afford rate increases, potentially leading to financial risks, regulatory challenges, and adverse policy shifts.
Consolidated Statements of Income For the Year ended December 31 millions of dollars (except per share amounts) 2025 2024 Operating revenues Regulated electric $ 6,858 $ 5,872 Regulated gas 1,713 1,575 Non-regulated 205 (247) Total operati...
AI summary The consolidated statements of income for Nova Scotia Power Incorporated show a significant increase in operating revenues and net income from 2024 to 2025, with regulated electric and gas revenues rising and operating expenses also increasing. Net income attributable to common shareholders rose from $494 million to $1,014 million.
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 Electric and gas revenues are recognized upon delivery to customers using an accrual basis, including billed and estimated unbilled revenues. Rates are approved by regulators, and unbilled revenue estimates consider factors like 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 costs via franchise fees and gross receipt taxes approved by the Florida Public Service Commission, categorized under 'Regulated electric' and 'Regulated gas' revenues. NMGC collects these fees net, with no line item impact on consolidated income statements.
Revenues: (based on country of origin of the product or service sold) For the Year ended December 31 millions of dollars 2025 2024 United States $ 6,185 $ 4,712 Canada 2,014 1,922 Barbados 415 427 The Bahamas 162 139 $ 8,776 $ 7,200 PP&E:...
AI summary The document presents revenue and PP&E data for the years ended December 31, 2025, and 2024, broken down by country. Revenues increased significantly in the United States and Canada, while slightly decreased in Barbados and The Bahamas. The PP&E table reflects the value of property, plant, and equipment, with a note about the sale of NMGC's assets in Q3 2024.
Remaining Performance Obligations: Remaining performance obligations primarily represent gas transportation contracts, and long-term steam supply arrangements with fixed contract terms. As of December 31, 2025, the aggregate amount of the...
AI summary Remaining performance obligations include gas transportation and long-term steam supply contracts, totaling $344 million as of December 31, 2025. Key obligations involve SeaCoast and PGS (through 2040) and PGS-EES asset management agreements (through 2030). Revenue recognition is expected through 2040, excluding short-term and variable contracts.
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 GRA with NSEB on September 18, 2025, proposing 1.8% and 2.4% annual rate increases for 2026 and 2027, respectively, generating $62M and $108M in additional revenue. The hearing concluded in January 2026.
Base Rates: On September 14, 2023, NMGC filed a rate case with the NMPRC for new base rates. On March 1, 2024, NMGC filed with the NMPRC a settlement with the support of all parties in the case for an increase of $30 million USD in annual...
AI summary NMGC filed a rate case with NMPRC, leading to a $30 million USD annual revenue increase and maintaining ROE at 9.375%. The settlement, approved on July 25, 2024, covers operating costs, capital investments, and a new billing system. NMGC withdrew its request for a regulatory asset related to a 2022 LNG storage application.
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 $14 million in both years.
A summary of the activity related to employee PSUs for the year ended December 31, 2025 is presented in the following table: Employee PSU Weighted Average Grant Date FV Aggregate intrinsic value Outstanding as at December 31, 2024 832,093...
AI summary This section provides a summary of employee Performance Share Unit (PSU) activity for the year ended December 31, 2025, including outstanding units, grants, exercises, forfeitures, and associated compensation costs, tax benefits, and cash payments.
INTRODUCTION The Oracle account number consists of a twenty-nine digit "Accounting Flexfield" . The flexfield is made up of eight segments as shown below. CO Account Line of Bus Location CC Inter-Company Future Use Future Use XXX XXXXXX XX...
AI summary The document describes the structure of the Oracle account number, known as the 'Accounting Flexfield,' which is composed of eight segments used to categorize financial transactions for Nova Scotia Power and related entities. Each segment serves a specific purpose, such as identifying the company, account type, location, and cost center.
ACCOUNT SEGMENT Account Segment Value Account Segment Description 212650 AP UNION DUES RELOCATION ALLOW 212700 AP LONG TERM DISABILITY 212750 AP GOOD NEIGHBOUR ENERGY FUND 212800 AP CIS REFUND CLEARING 212850 AP CONSUMER DEPOSITS 212900 AP...
AI summary The text presents a list of account segments with their corresponding descriptions, including items such as union dues, disability, energy funds, consumer deposits, and various liabilities and accrued expenses. These accounts are related to financial and operational obligations of an organization.
2025 Annual Financial Statements Attachment 16.2 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Application of Amounts Year Regulated Net Earnings Above Section 21 FAM Fixed Cost Income Approved ROE Amortization1 Deferral Range ($...
AI summary The table presents the application of amounts related to regulated net income and earnings above the approved ROE range from 2006 to 2025. It highlights the impact of Section 21 amortization on earnings, particularly in 2014 and 2015, where accelerated amortization reduced earnings above the approved ROE range.
N-2Refiled Statements - NSPI - Redacted
100 passages
Regulated Balance Sheets As at December 31 December 31 December 31 December 31 millions of Canadian dollars 2025 2024 2025 2024 Assets Liabilities and Equity Current assets Current liabilities Receivables, net $ 557 $ 417 Bank indebtedness...
AI summary The document presents the regulated balance sheets for the period ending December 31, 2025, and December 31, 2024, showing changes in assets, liabilities, and equity. Key figures include increases in current assets, liabilities, and long-term debt, as well as changes in equity components such as common stock and retained earnings.
REDACTED 2025 Annual Financial Statements Attachment 1 Page 5 of 6 December 31 millions of Canadian dollars 2025 Unregulated Retained Earnings Unregulated retained earnings - December 31, 2024 $200.8 Unregulated compensation (including dir...
AI summary This document presents the unregulated retained earnings and related financial details for the 2025 Annual Financial Statements. It includes figures for compensation, interest, depreciation, and various adjustments, as well as property, plant, and equipment values for unregulated assets. The data also reflects income tax adjustments, related party liabilities, and equity issuance related to an investment.
Nova Scotia Power Inc. Consolidated Statements of Income For the Year ended December 31 millions of dollars 2025 2024 Operating revenues (note 4) $ 1,944 $ 1,855 Operating expenses Fuel for generation and purchased power 1,065 509 Fuel adj...
AI summary Nova Scotia Power Inc. reported operating revenues of $1,944 million in 2025, up from $1,855 million in 2024. Operating expenses increased to $1,708 million in 2025, driven by higher fuel costs and FAM deferrals. Net income declined to $141 million in 2025 from $160 million in 2024, reflecting reduced income before taxes and higher interest expenses.
Nova Scotia Power Inc. Consolidated Statements of Comprehensive Income For the Year ended December 31 millions of dollars 2025 2024 Net income $ 141 $ 160 Other comprehensive income Net change in unrecognized pension and post-retirement co...
AI summary Nova Scotia Power Inc.'s consolidated financial statements show a decrease in net income from $160M (2024) to $141M (2025), while comprehensive income increased to $286M due to higher net changes in unrecognized pension and post-retirement costs ($145M in 2025 vs. $70M in 2024).
Nova Scotia Power Inc. Consolidated Statements of Cash Flows For the Year ended December 31 millions of dollars 2025 2024 Operating activities Net income $ 141 $ 160 Adjustments to reconcile net income to net cash provided by operating act...
AI summary This section presents the consolidated cash flow statements for Nova Scotia Power Inc. for the years 2025 and 2024, detailing cash flows from operating, investing, and financing activities, as well as changes in cash and supplemental disclosures.
Regulated electric revenue: Electric 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 when electricit...
AI summary The document explains that regulated electric revenues are recognized on an accrual basis, including billed and estimated unbilled revenues. Revenues are based on NSEB-approved rates and metered usage, with unbilled revenue estimated using assumptions about demand patterns, weather, and customer class changes.
Other: Other revenues are recorded when obligations under the terms of the contract are satisfied.
AI summary The text explains that 'other revenues' are recognized in accounting records only when contractual obligations are fulfilled, emphasizing the timing of revenue recognition under contract terms.
Allowance for Funds Used During Construction AFUDC represents the cost of financing regulated construction projects and is capitalized to the cost of PP&E until the asset is operational. The Company includes an equity cost component in AFU...
AI summary AFUDC represents the financing cost for regulated construction projects, capitalized as part of PP&E until operational. It includes equity and borrowed funds components, calculated via weighted average cost of capital approved by NSEB, and impacts financial statements through interest expense and other income adjustments.
The following disaggregates the Company's revenue by major source: For the Year ended December 31 millions of dollars 2025 2024 Residential $ 1,073 $ 997 Commercial 522 499 Industrial 270 276 Other 43 41 Electric revenue 1,908 1,813 Other...
AI summary The document provides a breakdown of the Company's revenue by major source for the years 2025 and 2024, showing increases in residential, commercial, and industrial revenue, with overall operating revenues rising from $1,855 million to $1,944 million.
Remaining Performance Obligations Remaining performance obligations primarily represent the transaction prices of a long-term steam supply agreement. As of December 31, 2025, the aggregate amount of the transaction price allocated to remai...
AI summary Remaining performance obligations under a long-term steam supply agreement amount to $7 million as of December 31, 2025, with revenue expected to be recognized through Q3 2027.
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%.
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 the NSEB on September 18, 2025, proposing 1.8% and 2.4% annual rate increases for 2026 and 2027, respectively, with revenue increases of $62M and $108M. The hearing concluded in January 2026.
NSPI recognizes deferred income tax assets and liabilities for the future tax consequences of events that have been included in the consolidated financial statements or income tax returns, in accordance with NSPI's rate-regulated accountin...
AI summary NSPI accounts for deferred income tax assets and liabilities based on future tax consequences, following its rate-regulated accounting policy approved by the NSEB. Regulatory assets or liabilities are recognized if these taxes are expected to be recovered from or returned to customers in the future.
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 NSEB approved storm riders for 2023, 2024, and 2025, allowing recovery of costs if major storm restoration expenses exceed $10 million in a given year. Applications for deferral and recovery are made in the year following the incurred cost, with recovery beginning the year after the application.
A. Commitments As at December 31, 2025, contractual commitments (excluding pensions and other post-retirement obligations, long-term debt, interest payment obligations, long-term payables and ARO) for each of the next five years and in agg...
AI summary This section outlines contractual commitments as of December 31, 2025, excluding certain obligations such as pensions, long-term debt, and ARO. It provides a breakdown of these commitments for the next five years and in aggregate thereafter.
D. Principal Financial Risks and Uncertainties In this section, NSPI describes some of the principal financial risks management believes could materially affect the Company in the normal course of business. Risks associated with derivative...
AI summary NSPI outlines principal financial risks and uncertainties affecting the company, noting that derivatives and fair value measurements are detailed in notes 11 and 12. These risks are central to the company's financial planning and regulatory considerations.
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.
2025 Annual Financial Statements Attachment 3 Page 1 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED)
AI summary The document is a redacted page from the 2025 Annual Financial Statements Attachment 3, likely containing confidential information related to Nova Scotia Power Inc.'s financial reporting and regulatory compliance.
Operations NSPI's earnings are most directly impacted by the range of ROE and capital structure approved by the NSEB, the prudent management and approved recovery of operating costs, electric sales volumes, weather, the approved recovery o...
AI summary NSPI's 2026 earnings are projected to be at the low end of its allowed ROE range, with higher earnings than 2025 due to factors like approved base rates, sales volume growth, and capital investment. Capital spending is expected to reach $720M, focused on power system reliability. The GRA and settlement agreement are referenced for further details.
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.
Provincial Grants NSPI pays annual grants to the Province in lieu of municipal taxation other than deed transfer tax.
AI summary NSPI pays annual grants to the Province in lieu of municipal taxation, excluding deed transfer tax. This arrangement replaces traditional municipal taxes with direct payments from the company to the government.
2025 Annual Financial Statements Attachment 3 Page 16 of 30 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The significant business risks to NSPI are described below, many of which are beyond the Company's control, and could have a material a...
AI summary The document outlines significant business risks facing Nova Scotia Power Inc. (NSPI), emphasizing risks beyond its control that could adversely affect operations, liquidity, capital access, financial position, and reputation. The risks are non-exhaustive, and their actual impact may differ from described scenarios.
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.
Public Health Crisis Risk An outbreak of infectious disease, a pandemic or other public health threats, or a fear of any of the foregoing, could result in a Material Adverse Effect to NSPI. This could include causing operating, supply chai...
AI summary The text outlines risks to Nova Scotia Power Inc. (NSPI) from public health crises, including operational disruptions, supply chain issues, labor shortages, and economic impacts on electricity demand and revenue. These risks could lead to a Material Adverse Effect through delays, reduced revenue, and increased operating costs.
Commercial Relationship Risk The Company is exposed to commercial relationships risk in respect of its reliance on certain key partners, suppliers and customers. For the year ended December 31, 2025, NSPI's five largest customers contribut...
AI summary NSPI faces commercial relationship risk due to reliance on key customers, with its five largest customers contributing 7% of electric revenues in 2025. Loss of a major customer could significantly impact operating revenues and result in a Material Adverse Effect.
Q1 2025 compared to Q1 2024 Q1 2025 net income increased by $53 million compared to Q1 2024. The increase is due to decreased income tax expense due to recognition of clean technology investment tax credits in 2025 and increased operating...
AI summary Q1 2025 net income rose by $53 million compared to Q1 2024, driven by lower income tax expenses from clean technology investment tax credits and higher operating revenues from increased sales volumes linked to favorable weather conditions.
Nova Scotia Power Incorporated - Management Information Circular 2026 Corporate Objective Weight- ing (%) Result Payout (%) Customer Building a reputation for customer\nexperience Objectives included: Threshold: Achieve 2025 Customer First...
AI summary The document outlines Nova Scotia Power Incorporated's 2026 Management Information Circular, including corporate objectives and performance metrics. It covers customer experience, asset management, and financial goals, with a focus on achieving targets related to customer satisfaction, reliability improvements, and financial performance.
2025 Annual Financial Statements Attachment 5 Page 1 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED)
AI summary The document is a redacted page from the 2025 Annual Financial Statements Attachment 5, which contains confidential information. It appears to be part of a regulatory or financial disclosure process involving Nova Scotia Power or a related entity.
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+.
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 11 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) that was required during the several years of delay in the Muskrat Falls hydroelectricity project. On November 29, 2024, the NSEB appro...
AI summary The NSEB approved NSPML's application to issue debt and transfer proceeds to NSPI as a refund, with an increased annual assessment charge to recover costs over 28 years. Proceeds were applied against the FAM regulatory asset balance, and NSPI's 2025 fuel rates were increased to service the debt.
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.
Maritime Link NSPI has a contractual obligation to pay NSPML, a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On September 25, 2024, NSPI and NSPML filed application...
AI summary NSPI has a long-term contractual obligation to pay NSPML for using the Maritime Link. In 2024, NSPI and NSPML filed applications related to a federal loan guarantee, and NSPML received approval to collect up to $201 million from NSPI for Maritime Link costs, with monthly holdbacks starting in 2022.
2025 Annual Financial Statements Attachment 5 Page 12 of 26 REDACTED (CONFIDENTIAL INFORMATION REMOVED) assessment and a supplemental assessment of $43 million as part of the repayment of the federal loan guarantee. On December 23, 2025, N...
AI summary The document mentions an interim order from the NSEB allowing NSPML to collect up to $199 million from NSPI for the recovery of costs related to the Maritime Link in 2026, with a monthly holdback of up to $4 million.
Hurricane Fiona On June 27, 2024, the NSEB approved the deferred recognition of $25 million in incremental operating costs incurred during the Hurricane Fiona storm restoration efforts in September 2022. Following the NSEB approval, the $2...
AI summary The NSEB approved the deferral of $25 million in incremental operating costs from Hurricane Fiona restoration efforts and reclassified $10 million of retired asset costs to regulatory assets, to be amortized over 10 years starting July 1, 2024.
95% of adjusted net income (1), excluding Corporate costs, derived from our regulated utilities
AI summary The text refers to adjusted net income, excluding Corporate costs, derived from regulated utilities. It highlights a financial metric relevant to utility operations and regulatory considerations.
2025 Annual Financial Statements Attachment 6 Page 8 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder inform...
AI summary Emera's 2025 Annual Financial Statements highlight successful regulatory outcomes in Florida and Nova Scotia, including a consensus GRA filed by Nova Scotia Power. Emera also achieved a significant milestone by listing on the New York Stock Exchange.
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.
Adjusted Net Income, Adjusted EPS – Basic, and Dividend Payout Ratio of Adjusted Net Income Emera calculates an adjusted net income attributable to common shareholders ("adjusted net income") measure by excluding items below from net incom...
AI summary Emera calculates adjusted net income by excluding certain items from net income to better reflect ongoing operations. Adjusted EPS – basic and the dividend payout ratio of adjusted net income are non-GAAP measures derived from this adjusted net income. These metrics are used to help investors understand and evaluate the business.
Gain on Sale of Emera's Indirect Minority Interest in the Labrador Island Link ("Gain on sale of LIL"): In Q2 2024, Emera recognized a $107 million gain, after tax and transaction costs, on the sale of LIL. In Q4 2024, Emera recognized a $...
AI summary In Q2 2024, Emera recognized a $107 million gain on the sale of its indirect minority interest in the Labrador Island Link. In Q4 2024, a $22 million tax benefit was recognized due to the reversal of a prior year valuation allowance, which offset a portion of the taxable capital gain.
Reconciliation of Net Income Attributable to Common Shareholders to Adjusted Net Income For the Three months ended December 31 Year ended December 31 millions of dollars (except per share amounts) 2025 2024 2025 2024 2023 Net income attrib...
AI summary The document presents a reconciliation of net income attributable to common shareholders to adjusted net income for Nova Scotia Power Inc. (NSPI) over various periods, including adjustments for items like MTM gains/losses, charges related to asset sales, and wind-down costs. Adjusted net income and EPS figures are also provided.
EBITDA and Adjusted EBITDA Earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA are non-GAAP financial measures used by Emera. These financial measures are used by numerous investors and lend...
AI summary The document defines EBITDA and adjusted EBITDA as non-GAAP financial measures used by Emera to assess operating performance and evaluate credit quality. Adjusted EBITDA excludes specific charges and gains, including impairment charges, transaction costs, and income tax recoveries, for the years 2024 and 2025.
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.
Operating Revenues For Q4 2025, operating revenues increased $243 million compared to Q4 2024 and, excluding decreased MTM losses of $19 million, increased $224 million. The increase was due to higher storm cost recoveries at TEC and NSPI...
AI summary Operating revenues increased significantly in Q4 2025 and for the year ended December 31, 2025, driven by factors such as higher storm cost recoveries, new base rates, and favorable weather, among others.
Other Income, net For Q4 2025, other income, net increased $59 million compared to Q4 2024, due to decreased FX losses and the 2024 charges related to wind-down costs and certain asset impairments. For the year ended December 31, 2025, oth...
AI summary Other income, net increased by $59 million in Q4 2025 compared to Q4 2024 due to decreased FX losses and 2024 charges related to wind-down costs and asset impairments. However, for the year ended December 31, 2025, other income, net decreased by $38 million compared to 2024 due to a gain on the sale of LIL in 2024, partially offset by higher FX gains in 2025 and other 2024 charges.
Income Tax Expense (Recovery) For Q4 2025, income tax recovery decreased $164 million compared to Q4 2024 due to the recognition of tax benefits associated with denied interest and financing expenses in the prior year, decreased deferred i...
AI summary In Q4 2025, income tax recovery decreased by $164 million compared to Q4 2024, due to factors such as tax benefits from denied interest and financing expenses, and changes in deferred income tax asset valuation. For the full year 2025, income tax expense increased by $240 million compared to 2024, influenced by higher income before taxes and tax benefits from denied interest and financing expenses, partially offset by tax credits and gains from asset sales.
Florida Electric Utility The Florida Electric Utility segment consists of TEC, a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity, serving customers in West Central Fl...
AI summary The Florida Electric Utility segment, including Tampa Electric Company (TEC), serves 866,000 customers with $14.5 billion USD in assets. TEC owns 6,771 MW of generating capacity, primarily natural gas and solar. TEC petitioned the Florida Public Service Commission (FPSC) to increase base revenue by $88 million USD in 2025, which was approved with new rates effective January 1, 2026.
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, owns a mix of generating capacity including coal, natural gas, and renewables. It has initiated grid-scale battery projects and has agreements with NLH for energy delivery. NSPI filed a GRA with the NSEB, proposing rate increases in 2026 and 2027. A new transmission project between Nova Scotia and New Brunswick, owned by WTI, was announced with NSPI holding a 50% indirect voting interest.
NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. NSPML's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated...
AI summary NSPML's equity earnings depend on its approved ROE and operational performance. The Maritime Link, operational since 2018, enables energy transmission between Newfoundland and Nova Scotia. In 2026, NSPML requested the termination of a $4 million monthly holdback on cost recovery, with a final decision pending. Capital investment is projected to be around $40 million 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 document highlights changes in net income, showing an increase in operating revenues due to factors such as storm cost recovery revenue, new base rates, and customer growth, though partially offset by unfavourable weather. There are also increases in fuel costs, OM&G, depreciation, interest expense, and taxes, with some offsets from regulatory deferrals and tax credits.
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, with base rates determined through rate setting hearings. These hearings can be initiated by TEC, the FPSC, or other interested parties, and the FPSC sets rates to ensure utilities can recover their costs and earn an appropriate return on invested capital.
Canadian Electric Utilities For the Three months ended December 31 Year ended December 31 millions of dollars (except as indicated) 2025 2024 2025 2024 Operating revenues – regulated electric $ 504 $ 479 $ 1,944 $ 1,855 Regulated fuel for...
AI summary The table provides financial data for Canadian Electric Utilities, including operating revenues, regulated fuel costs, and contribution to consolidated net income for the three months and year ended December 31, 2025 and 2024. It also includes average fuel costs per MWh.
Other For the Three months ended December 31 Year ended December 31 millions of dollars 2025 2024 2025 2024 Marketing and trading margin (1)(2) $ 60 $ 35 $ 158 $ 77 Other non-regulated operating revenue 7 10 32 32 Total operating revenues...
AI summary The table presents financial data for Marketing and trading margin, Other non-regulated operating revenue, and various charges and gains related to operations and asset management for the periods ending December 31, 2024 and 2025. It includes contributions to net income, MTM gains and losses, and charges related to asset sales and wind-down costs.
Highlights of net income (loss) 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 (loss) income – 2024 $ (146) $ (686) Increase...
AI summary The table highlights changes in net income (loss) for the periods indicated, with key factors including increased marketing and trading margins due to favorable weather conditions, decreased equity earnings due to an unplanned outage, increased interest expenses, and various charges and gains related to asset sales and wind-down costs.
Liquidity and Capital Resources The Company generates internally sourced cash from its various regulated and non-regulated energy investments. Utility customer bases are diversified by both sales volumes and revenues among customer classes...
AI summary Emera generates cash from regulated and non-regulated energy investments and is focused on maintaining liquidity for debt servicing, capital investments, and growth. A $20 billion capital investment plan is in place for 2026 through 2030, subject to regulatory approval. Emera plans to fund these needs through operations, debt, equity, and the sale of NMGC.
2025 Annual Financial Statements Attachment 6 Page 45 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 announced dividend rates and share conversion details in 2025. Series A Shares had a dividend rate of 4.951% per annum, with a conversion period between July 16 and July 31, 2025. After the conversion period, all remaining Series B Shares were automatically converted to Series A Shares. Additionally, the annual fixed dividend for Series F shares was reset to $1.4372 for the period starting February 15, 2025.
2025 Annual Financial Statements Attachment 6 Page 49 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder infor...
AI summary The text discusses potential Material Adverse Effects on Emera due to environmental laws and regulations, including delays in energy projects, restrictions on facilities, early retirement of generation assets, increased compliance costs, and impacts on natural gas sales and capital investments. Non-compliance could lead to legal actions, fines, and other sanctions.
Energy Consumption Risk Emera's rate-regulated utilities are affected by demand for energy based on changing customer patterns due to fluctuations in a number of factors including general economic conditions, weather events, customers' foc...
AI summary Emera's rate-regulated utilities face energy consumption risks due to changing customer demand influenced by economic conditions, weather, energy efficiency, and new technologies like solar and electric vehicles. Government policies promoting efficiency and distributed generation may reduce load and revenue, impacting operations, rate base, earnings, and cash flows.
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.
Unbilled Revenue Electric and gas revenues are billed on a systematic basis over a one or two-month period for NSPI and a one-month period for other Emera utilities. At the end of each month, the Company must make an estimate of energy del...
AI summary Unbilled revenue refers to estimated energy revenues earned but not yet billed, calculated based on factors like current generation, customer usage, weather, and rates. At December 31, 2025, unbilled revenues were $400 million, representing a significant portion of total regulated operating revenues of $8,571 million.
Goodwill Impairment Assessments Goodwill is calculated as the excess of the purchase price of an acquired entity over the estimated FV of identifiable assets acquired, and liabilities assumed at the acquisition date. Goodwill is subject to...
AI summary The document discusses goodwill impairment assessments for Emera, including the calculation of goodwill, the annual impairment tests, and the impact of the sale of NMGC. It also highlights the results of qualitative assessments for PGS and TEC in Q4 2025 and the change in goodwill carrying value from 2024 to 2025 due to FX translation.
Asset Retirement Obligations Measurement of the FV of AROs requires the Company to make reasonable estimates concerning the method and timing of settlement associated with legally obligated costs. There are uncertainties in estimating futu...
AI summary The document discusses the measurement and accounting of asset retirement obligations (AROs) by Emera, including the factors affecting estimates, such as legislation, technology, and regulatory requirements. It outlines how AROs are recorded, accreted, and their impact on financial statements, as well as the timing and estimated costs of future obligations.
Summary of Quarterly Results For the quarter ended millions of dollars (except per share amounts) Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Operating revenues $ 2,006 $ 2,106 $ 1,988 $ 2,676 $ 1,763 $ 1,802 $ 1,617 $...
AI summary The summary of quarterly results shows fluctuations in operating revenues and net income across different quarters, influenced by seasonality, regional electricity usage patterns, and weather conditions. The first quarter benefits from winter peak demand in northeastern North America, while the third quarter is impacted by summer demand in Florida. Variations are also influenced by significant items affecting earnings.
Q3 2025 compared to Q3 2024 For Q3 2025, net income attributable to common shareholders, compared to Q3 2024, increased $224 million, primarily due to charges related to the pending sale of NMGC recognized in Q3 2024; and increased earning...
AI summary Net income attributable to common shareholders increased by $224 million in Q3 2025 compared to Q3 2024, driven by charges from the pending sale of NMGC in 2024 and higher earnings at TEC, partially offset by increased MTM losses and lower earnings at NSPI and NMGC.
Q2 2025 compared to Q2 2024 Q2 2025 net income attributable to common shareholders increased by $6 million primarily due to decreased MTM losses; increased earnings at TEC, EES, and NMGC; higher Corporate income tax recovery; and decreased...
AI summary Q2 2025 net income increased by $6 million due to decreased MTM losses, higher earnings at TEC, EES, and NMGC, and increased Corporate income tax recovery. This was partially offset by charges related to the pending sale of NMGC and lower earnings at NSPI.
Q1 2025 compared to Q1 2024 Q1 2025 net income attributable to common shareholders increased by $376 million and EPS – basic and diluted increased by $1.23 compared to Q1 2024. The increases were primarily due to decreased MTM losses; incr...
AI summary Q1 2025 net income attributable to common shareholders increased by $376 million and EPS increased by $1.23 compared to Q1 2024, driven by decreased MTM losses, higher earnings at various subsidiaries, a weaker CAD, and reduced Corporate OM&G, partially offset by the sale of LIL and increased shares outstanding.
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.
Consolidated Statements of Income For the Year ended December 31 millions of dollars (except per share amounts) 2025 2024 Operating revenues Regulated electric $ 6,858 $ 5,872 Regulated gas 1,713 1,575 Non-regulated 205 (247) Total operati...
AI summary The consolidated statements of income for 2025 and 2024 show significant increases in operating revenues and income from operations, with regulated electric and gas revenues and income from operations rising notably. Net income also increased from 2024 to 2025, reflecting changes in operating expenses and income from equity investments.
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.
Non-regulated Revenue: Marketing and trading margins are comprised of Emera Energy's corresponding purchases and sales of natural gas and electricity, pipeline capacity costs and energy asset management revenues. Revenues are recorded when...
AI summary Non-regulated revenue includes marketing and trading margins from natural gas and electricity, pipeline capacity costs, and energy asset management. Revenue is recognized when contractual obligations are met, with energy sales recorded as electricity is delivered to customers over time.
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.
Goodwill 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 carried at initial cost less any w...
AI summary Goodwill is calculated as the excess of purchase price over the fair value of identifiable assets and liabilities. It is carried at initial cost less impairment and adjusted for foreign exchange. Goodwill is tested for impairment annually or when circumstances indicate a potential decline in fair value. The income approach and market approach are used to estimate fair value, with significant assumptions impacting the valuation.
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.
Equity Method Investments: The carrying value of investments accounted for under the equity method are assessed for impairment by comparing the FV of these investments to their carrying values, if a FV assessment was completed, or by revie...
AI summary The carrying value of equity method investments is assessed for impairment by comparing their fair value to their carrying value or by reviewing for impairment indicators. No impairment was required in 2025 or 2024.
Improvements to Income Tax Disclosures The Company adopted Accounting Standard Update ("ASU") 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, effective December 31, 2025. The standard enhances the transparency, d...
AI summary The Company adopted ASU 2023-09, effective December 31, 2025, to improve income tax disclosures by enhancing transparency and decision usefulness through consistent categories and greater disaggregation of information in tax reconciliations and jurisdictional tax payments.
Revenues: (based on country of origin of the product or service sold) For the Year ended December 31 millions of dollars 2025 2024 United States $ 6,185 $ 4,712 Canada 2,014 1,922 Barbados 415 427 The Bahamas 162 139 $ 8,776 $ 7,200 PP&E:...
AI summary The text provides revenue and property, plant, and equipment (PP&E) data for the years 2025 and 2024, segmented by country. Revenue from the United States increased significantly, while PP&E in the United States also rose. A note mentions the sale of NMGC, which was classified as held for sale starting in Q3 2024.
Remaining Performance Obligations: Remaining performance obligations primarily represent gas transportation contracts, and long-term steam supply arrangements with fixed contract terms. As of December 31, 2025, the aggregate amount of the...
AI summary Remaining performance obligations include gas transportation and long-term steam supply contracts, with an aggregate value of $344 million as of December 31, 2025. Key obligations include a $121 million contract between SeaCoast and PGS through 2040 and a $21 million agreement between PGS and EES through 2030. Revenue recognition is expected to occur through 2040.
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.
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.
Base Rates: On April 2, 2024, TEC filed a rate case with the FPSC for new base rates. On December 3, 2024, the FPSC rendered a decision which included annual base rate increases of $185 million USD in 2025 and adjustments of $87 million US...
AI summary TEC filed a rate case in 2024 with the FPSC, resulting in base rate increases and adjustments over several years. An intervening party filed a motion for reconsideration, which was denied, and two parties appealed to the Florida Supreme Court. TEC later petitioned for an additional base revenue increase, which was approved in 2025.
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 with the NSEB on September 18, 2025, proposing average annual rate increases of 1.8% in 2026 and 2.4% in 2027. The hearing concluded in January 2026, and the proposed rates would result in annual revenue increases of $62 million and $108 million for 2026 and 2027, respectively.
NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. NSPML's approved regulated ROE range is 8.75 per cent to 9.25 per cent, based on an actual five-quarter average regulated...
AI summary Equity earnings from the Maritime Link depend on NSPML's approved ROE and operational performance. NSPML has received orders from NSEB to collect funds from NSPI for cost recovery, with holdbacks in place. A FLG agreement was finalized in 2024, and the holdback mechanism was requested to be terminated in 2026.
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: On March 31, 2025, PGS filed a rate case with the FPSC for new rates to become effective January 1, 2026. On August 13, 2025, PGS and the intervening parties filed a settlement agreement with the FPSC for a $67 million USD incr...
AI summary PGS filed a rate case with the FPSC on March 31, 2025, proposing a $67 million USD increase in 2026 base rates, including adjustments for 2027 and 2028. The FPSC approved the settlement on October 31, 2025, with a 10.30% midpoint ROE and 54.7% equity thickness.
NMGC NMGC is subject to regulation by the NMPRC. The NMPRC sets rates at a level that allows NMGC to collect total revenues or revenue requirements equal to its cost of providing service, plus an appropriate return on invested capital. NMG...
AI summary NMGC operates under the regulation of the NMPRC, which sets rates to ensure NMGC can recover its costs and earn a return on invested capital. The approved return on equity for 2024 and 2025 is 9.375%, based on an allowed equity capital structure of 52%.
Base Rates: On September 14, 2023, NMGC filed a rate case with the NMPRC for new base rates. On March 1, 2024, NMGC filed with the NMPRC a settlement with the support of all parties in the case for an increase of $30 million USD in annual...
AI summary NMGC filed a rate case with the NMPRC in 2023, leading to a $30 million annual base revenue increase and maintaining a 9.375% ROE. The new rates reflect increased operating costs, capital investments, and a new billing system. NMGC agreed to withdraw its request for a regulatory asset related to a 2022 LNG storage facility application. The NMPRC approved the settlement in July 2024, with new rates effective October 1, 2024.
9. Other Income, Net For the Year ended December 31 millions of dollars 2025 2024 AFUDC $ 62 $ 53 Interest income 37 23 Pension non-current service cost recovery 25 35 FX gains (losses) 25 (58) Gain on sale of LIL, net of transaction costs...
AI summary This section details Other Income, Net for the year ended December 31, 2025, and 2024, with notable items including AFUDC, interest income, pension cost recovery, FX gains, and a gain on the sale of LIL, among others. Note 4 provides further details on the gain on sale and pending transaction.
2025 Annual Financial Statements Attachment 6 Page 118 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder info...
AI summary The text outlines the structure of the 2025 Annual Financial Statements, including sections such as the Strategic Overview, Management's Discussion and Analysis, Consolidated Financial Statements, and notes to the financial statements. It also mentions shareholder information and leadership details.
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.
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 The document presents a table showing the preferred shares of GBPC as of December 31, 2025, and December 31, 2024, with no change in value between the two periods.
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.
Performance Share Unit Plan: Under the PSU plan, certain executive and senior employees are eligible for long-term incentives payable through the plan. PSUs are granted annually for three-year overlapping performance cycles, resulting in a...
AI summary The Performance Share Unit (PSU) plan provides long-term incentives to executive and senior employees, with payouts based on Emera's stock price and corporate performance. PSUs vest after a three-year cycle and are subject to pro-rating in certain scenarios, with retirement allowing for continued vesting and post-retirement payout.
2025 Annual Financial Statements Attachment 6 Page 137 of 138 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Strategic Overview Management's Discussion and Analysis Consolidated Financial Statements Emera Leadership and Board Shareholder info...
AI summary The document provides an overview of the 2025 Annual Financial Statements for Emera, including sections such as the Strategic Overview, Management's Discussion and Analysis, Consolidated Financial Statements, Emera Leadership and Board, and Shareholder information.
Chart of Accounts for Nova Scotia Power Inc. (Consolidated) As of December 31, 2025
AI summary The text presents the consolidated chart of accounts for Nova Scotia Power Inc. as of December 31, 2025, outlining financial categories and classifications relevant to the company's operations.
2025 Actual 1 2 3 Amount 4 15 Net Plant in Service 5,045 447 Less: Impact of the Non-Regulated Adjustments (84) 448 Plus: Construction work in progress 340 449 Net Utility Fixed Assets 5,302 450 Add: 451 Deferred Charges & Credits 461 Fina...
AI summary The document presents a financial summary for 2025, detailing Net Plant in Service, Net Utility Fixed Assets, and various charges and credits. It includes figures for depreciation, amortization, income taxes, operating costs, and total revenue, highlighting key financial metrics for regulatory proceedings.