About Emera

Emera Incorporated (Emera) owns and operates cost-of-service rate-regulated electric and gas utilities in Canada, the United States and the Caribbean. Emera’s strategic focus continues to be safely delivering cleaner, affordable and reliable energy to its customers. The majority of Emera’s investment in rate-regulated businesses are located in Florida with other investments in Nova Scotia, New Mexico and the Caribbean. Emera is well positioned to respond to shifting customer demands, digitization, decarbonization, complex regulatory environments and decentralized generation. Emera’s strategy is to fund investments in renewable energy and technology assets, which protect the environment and benefit customers through fuel or operating cost savings. Emera’s utilities are also investing in reliability projects and replacing aging infrastructure. All of these projects demonstrate Emera’s strategy of safely delivering cleaner, reliable, and affordable energy for its customers. Emera is also committed to identifying emerging technologies and continuing to work constructively with policymakers, regulators, partners, investors and customers. Business Segments The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other segments. Florida Electric Utility segment Florida Electric Utility consists of Tampa Electric, a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity, serving customers in West Central Florida. Tampa Electric had approximately 827,000 customers as of December 31, 2022. Tampa Electric (Tampa Electric Division of TEC (Tampa Electric Company), an integrated regulated electric utility, serving customers in West Central Florida) is regulated by the Florida Public Service Commission (FPSC) and is also subject to regulation by the United States Federal Energy Regulatory Commission (FERC). Energy Sources and Generation As of December 31, 2022, Tampa Electric owned 6,549 MW (megawatts) of generating capacity, of which 78 per cent is natural gas-fired, 15 per cent is solar and 7 per cent is coal. Tampa Electric owns 2,171 kilometres of transmission facilities and 19,916 kilometres of distribution facilities. System Operations Tampa Electric’s Energy Control Center co-ordinates and controls the electric generation, transmission and distribution facilities. The Energy Control Center is linked to the generating stations and other key facilities through the Supervisory Control and Data Acquisition system, a communication network used by system operators for remote monitoring and control of the power system assets. Through interconnection agreements with the company’s neighboring electric utilities within the Florida Region, Tampa Electric’s system has access to other regional power systems and the rest of the interconnected North American electric bulk power system. As a member of the Florida Reserve Sharing Group, Tampa Electric has immediate access to reserve generating capacity from all other group members. Environmental Considerations Tampa Electric operates stationary sources with air emissions regulated by the Clean Air Act. Its operations are also impacted by provisions in the Clean Water Act and federal and state legislative initiatives on environmental matters. Hazardous Air Pollutants All of Tampa Electric’s conventional coal-fired units are already equipped with electrostatic precipitators, scrubbers and selective catalytic reduction systems, and the Polk Unit 1 integrated gasification combined-cycle unit emissions are minimized in the gasification process. Therefore, Tampa Electric has minimized the impact of the EPA’s current Mercury Air Toxics Standards (MATS) and has demonstrated compliance on all applicable units with the most stringent ‘Low Emitting Electric Generating Unit’ classification for the EPA’s current MATS with nominal additional capital investment. Water Supply and Quality The U.S. Environmental Protection Agency’s (EPA’s) final rule under 316(b) of the Clean Water Act (effective October 2014) addresses perceived impacts to aquatic life by cooling water intakes and is applicable to Tampa Electric’s Bayside and Big Bend Power Stations. The Florida Department of Environmental Protection (FDEP) agreed with Tampa Electric’s proposed plan for Bayside and Tampa Electric began a multi-year construction project to install new fish-friendly modified traveling screens and a fish return in 2022. Canadian Electric Utilities segment Canadian Electric Utilities includes NSPI (Nova Scotia Power Incorporated) and ENL (Emera Newfoundland and Labrador Holdings Incorporated). NSPI is a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity and the primary electricity supplier to customers in Nova Scotia. ENL is a holding company with a 100 per cent equity investment in NSPML (NSP Maritime Link Incorporated) and a 31.9 per cent equity investment in LIL (Labrador-Island Transmission Link Project): two transmission investments related to the development of an 824 MW hydroelectric generating facility at Muskrat Falls hydroelectric project (‘Muskrat Falls’) on the Lower Churchill River in Labrador. NSPI NSPI is the primary electricity supplier in Nova Scotia, providing electricity generation, transmission and distribution services to approximately 541,000 customers as of December 31, 2022. NSPI is a public utility as defined in the Public Utilities Act and is subject to regulation under the Public Utilities Act by the UARB. The Public Utilities Act gives the UARB (Nova Scotia Utility and Review Board) supervisory powers over NSPI’s operations and expenditures. Electricity rates for NSPI’s customers are subject to UARB approval. Energy Sources and Generation NSPI owns 2,420 MW of generating capacity, of which approximately 44 per cent is coal-fired, 28 per cent is natural gas and/or oil, 19 per cent is hydro and wind, 7 per cent is petcoke and 2 per cent is biomass-fueled generation. In addition, NSPI has contracts to purchase renewable energy from IPPs, including COMFIT participants, which own 546 MW of capacity. NSPI also has rights to 153 MW of Maritime Link capacity, representing Nalcor’s NS Block delivery obligations. System Operations NSPI’s Control Center Operations co-ordinates and controls the electric generation, transmission and distribution facilities with the goal of providing safe, reliable and efficient electricity supply while adhering to applicable environmental requirements and regulations. The Control Center is linked to the generating stations and other key facilities through the Supervisory Control and Data Acquisition system, a communication network used by system operators for remote monitoring and control of the power system assets. Through interconnection agreements with NB Power and with Newfoundland and Labrador Hydro, NSPI’s system has access to other regional power systems and the interconnected North American electric bulk power system. The interconnection of power systems enhances the cost effectiveness, reserve capacity and reliability of participating power systems. The interconnection agreements also provide participating utilities with a source of reserve power, subject to availability, transmission line capacity and the requirements of the supplier. Transmission and Distribution NSPI transmits and distributes electricity from its generating stations to its customers. NSPI’s transmission system consists of approximately 5,000 km of transmission facilities. The distribution system consists of approximately 28,000 km of distribution facilities, which includes distribution supply substations. ENL NSPML Equity earnings from the Maritime Link are dependent on the approved ROE and operational performance of NSPML. The Maritime Link assets entered service on January 15, 2018 enabling the transmission of energy between Newfoundland and Nova Scotia, improved reliability and ancillary benefits, supporting the efficiency and reliability of energy in both provinces. Nalcor’s final commissioning of the LIL has experienced delays and it’s expected that final commissioning of the LIL will be completed in 2023. Nalcor’s NS Block delivery obligations commenced on August 15, 2021 and the NS Block will be delivered over the next 35 years pursuant to the project agreements. During these final stages of commissioning the LIL, there will be interruptions in supply, with any resultant delivery shortfalls being delivered on a timely basis in accordance with the Energy and Capacity Agreement. NSPI has the option of purchasing additional market-priced energy from Nalcor through the Energy Access Agreement. The Energy Access Agreement enables NSPI to access a market-priced bid from Nalcor (Nalcor Energy) for up to 1.8 Terawatt hours (‘TWh’) of energy in any given year and, on average, 1.2 TWh of energy per year through August 31, 2041. LIL ENL is a limited partner with Nalcor in LIL. Construction of the LIL is complete and Nalcor is forecasting it will achieve final commissioning in 2023. Environmental Considerations NSPI is subject to environmental laws and regulations set by both the Government of Canada and the Province of Nova Scotia. Gas Utilities and Infrastructure segment Gas Utilities and Infrastructure includes PGS (Peoples Gas System Division of TEC), NMGC, SeaCoast, Brunswick Pipeline and Emera’s non-consolidated investment in M&NP. PGS is a regulated gas distribution utility engaged in the purchase, distribution and sale of natural gas serving customers in Florida. NMGC is an intrastate regulated gas distribution utility engaged in the purchase, transmission, distribution and sale of natural gas serving customers in New Mexico. SeaCoast is a regulated intrastate natural gas transmission company offering services in Florida. Brunswick Pipeline is a regulated 145-kilometre pipeline delivering re-gasified liquefied natural gas from Saint John, New Brunswick, to markets in the Northeastern United States. PGS and NMGC purchase gas from various suppliers depending on the needs of their customers. In Florida, gas is delivered to the PGS distribution system through interstate pipelines on which PGS has firm transportation capacity for delivery by PGS to its customers. NMGC’s natural gas is transported on major interstate pipelines on which NMGC has transportation capacity and NMGC’s intrastate transmission and distribution system for delivery to customers. PGS As of December 31, 2022, PGS served approximately 468,000 customers. The PGS system includes approximately 24,300 kilometres of natural gas mains and 13,500 kilometres of service lines. Natural gas throughput (the amount of gas delivered to its customers, including transportation-only service) was 2 billion therms in 2022. PGS is regulated by the FPSC. NMGC is regulated by the New Mexico Public Regulation Commission (NMPRC). NMGC (New Mexico Gas Company, Inc.) As of December 31, 2022, NMGC served approximately 545,000 customers. NMGC’s system includes 2,426 km of transmission lines and 17,781 km of distribution lines. Annual natural gas throughput was 926 million therms in 2022. NMGC is subject to regulation by the NMPRC. EBPC (Emera Brunswick Pipeline Company Ltd.) EBPC owns Brunswick Pipeline, a regulated 145-km pipeline delivering re-gasified liquefied natural gas from the Saint John LNG import terminal near Saint John, New Brunswick to markets in the Northeastern United States. The pipeline travels through southwest New Brunswick and connects with M&NP at the Canada/U.S. border near Baileyville, Maine. Since its commissioning in July 2009, the pipeline has been used solely to transport natural gas for RENAC under a 25-year firm service agreement, which expires in 2034. Brunswick Pipeline is regulated by the CER, which has classified it as a Group II pipeline. As a regulated Group II pipeline, the tolls of Brunswick Pipeline are regulated by the CER on a complaint basis, as opposed to a regulatory approval process. SeaCoast (SeaCoast Gas Transmission, LLC) In 2018, SeaCoast executed an agreement with Seminole Electric Cooperative, Inc. (‘Seminole’) to provide long-term firm gas transportation service to Seminole’s new gas-fired generating facility in Putnam County, Florida. SeaCoast operates a 21-mile, 30-inch pipeline lateral that is treated as a sales-type lease for accounting purposes. The lease of the pipeline lateral to Seminole commenced on January 1, 2022. M&NP Emera owns a 12.9 per cent interest in M&NP, which is a 1,400 km pipeline that transports natural gas throughout markets in Atlantic Canada and the Northeastern United States. Other Electric Utilities Other Electric Utilities includes ECI, a holding company with regulated electric utilities. ECI’s regulated utilities include vertically integrated regulated electric utilities of BLPC on the island of Barbados, GBPC on Grand Bahama Island and a 19.5 per cent interest in Lucelec on the island of St. Lucia, which is accounted for on the equity basis. On March 31, 2022, Emera completed the sale of Dominica Electricity Services Limited. BLPC As of December 31, 2022, BLPC served approximately 133,000 customers. BLPC owns 276 MW of generating capacity, of which 96 per cent is oil-fired and 4 per cent is solar. BLPC’s transmission system consists of 188 km of transmission lines, including major substations connected to the transmission and distribution system. The distribution system consists of 3,789 km of distribution lines which includes distribution supply substations. BLPC operates pursuant to a franchise to generate, transmit and distribute electricity on the island of Barbados until 2028. In 2019, the Government of Barbados passed legislation amending the number of licenses required for the supply of electricity from a single integrated license, which exists, to multiple licenses for Generation, Transmission and Distribution, Storage, Dispatch and Sales. In March 2021, BLPC reached commercial agreement with the Government of Barbados for each of the license types, subject to the passage of implementing legislation. BLPC is regulated by the Fair Trading Commission (‘FTC’), an independent regulator, under the Utilities Regulation (Procedural) Rules 2003. GBPC As of December 31, 2022, GBPC served approximately 19,000 customers. GBPC owns 98 MW of oil-fired generation, approximately 90 kilometres of transmission facilities and 670 kilometers of distribution facilities. GBPC is regulated by the GBPA. System Operation BLPC and GBPC have system control centres that co-ordinate and control their electric generation and transmission facilities with the intention of providing a reliable and secure electricity supply while maintaining economy of operations. The generation and transmission system control centres are linked to their generating stations and other key parts of their systems by the ‘Supervisory Control and Data Acquisition’ systems, with fibre optic, voice and data communications networks. Transmission and Distribution BLPC and GBPC transmit and distribute electricity from their generating stations to their customers. Other segment Business operations in the Other segment include Emera Energy and ETL. Emera Energy consists of EES, a wholly owned physical energy marketing and trading business and an equity investment in a 50 per cent joint venture ownership of Bear Swamp, a 660 MW pumped storage hydroelectric facility in northwestern Massachusetts. ETL is a wholly owned technology company focused on finding ways to deliver renewable and resilient energy to customers. Emera Energy EES derives revenue and earnings from the wholesale marketing and trading of natural gas and electricity within the company’s risk tolerances, including those related to value-at-risk and credit exposure. EES purchases and sells physical natural gas and electricity, the related transportation and transmission capacity rights, and provides related energy asset management services. The primary market area for the natural gas and power marketing and trading business is northeastern North America, including the Marcellus and Utica shale supply areas. EES also participates in the Florida, the United States Gulf Coast and the Midwest/Central Canadian natural gas markets. Its counterparties include electric and gas utilities, natural gas producers, electricity generators and other marketing and trading entities. EES operates in a competitive environment, and the business relies on knowledge of the region’s energy markets, understanding of pipeline and transmission infrastructure, a network of counterparty relationships and a focus on customer service. EES manages its commodity risk by limiting open positions, utilizing financial products to hedge purchases and sales, and investing in transportation capacity rights to enable movement across its portfolio. History Emera Incorporated was incorporated in 1998 pursuant to the Companies Act (Nova Scotia).