HALIFAX, Nova Scotia–(COMMERCIAL THREAD)–Emera Inc. (TSX: EMA) and its wholly owned subsidiary Nova Scotia Power (NS Power) today announced that NS Power has filed a proposed settlement agreement for its 2022-2024 General Rate Application (GRA) with the Nova Scotia Board of Utilities and Audit (UARB). The agreement, which covers both fuel and non-fuel tariffs, was reached between NS Power and key customer representatives, including the Consumer Advocate of Nova Scotia, the Small Business Advocate, large customers represented by the Industrial Group, City Services, Dalhousie University, and environmental and low-income consumer advocates.
If approved by the UARB, the agreement will implement Bill 212, the provincial legislative cap on non-fuel tariffs for 2023 and 2024. The agreement addresses fuel cost recovery during the settlement period and would establish also a Demand Side Management (DSM) rider. Combined, these amounts would translate into rate increases of 6.9% each year for 2023 and 2024. Additionally, any excess or over-recovery of fuel costs would be addressed through the Fuel Adjustment Mechanism (FAM) process. ) of the URB.
“The achievement of this agreement is a remarkable demonstration of the commitment of stakeholders and customer representatives to work together to achieve constructive solutions for customers,” said Peter Gregg, President and CEO of NS Power. “Working within the bounds of Bill 212, this agreement addresses all of the outstanding elements of the GRA and provides important pricing predictability for customers at this time of high inflation and broad economic challenge.”
Other elements of NS Power’s GRA addressed in the agreement include a storm rider agreement for the years 2023-2025, providing clarity on cost recovery for major storms and extreme weather events going forward. It also establishes an equity thickness of 40% for rate setting purposes and will result in $137 million in expected incremental non-fuel revenues in the settlement period, compared to $240 million deposited within the GRA. A full copy of the proposed settlement agreement can be found on URB website or www.nspower.ca.
“This is a positive step forward,” said Scott Balfour, President and CEO of Emera Inc. “Achieving successful and balanced regulatory outcomes within robust regulatory agreements is critical to our ability to deliver to our customers first but also to all other interested parties as well.”
Today’s agreement is the latest in a series of regulatory agreements across Emera’s portfolio that demonstrate the strength of Emera’s teams and strategy, as well as Emera’s ability to work collaboratively with stakeholders to achieve results that are in the best interests of customers. New Mexico Gas, Tampa Electric and Peoples Gas also settled major tariff lawsuits through settlement agreements with customer representatives in the past 24 months.
This press release contains forward-looking information pursuant to applicable securities laws. By its nature, forward-looking information requires Emera and NS Power to make assumptions and is subject to inherent risks and uncertainties. These statements reflect the current beliefs of Emera management and NS Power and are based on information currently available to Emera management and NS Power management. There is a risk that forecasts, forecasts, conclusions and projections which constitute forward-looking information may not prove accurate, that Emera’s and NS Power’s assumptions may not be correct, and that actual results could differ materially from such forward-looking information. Further detailed information about these assumptions, risks and uncertainties is included in the Emera and NS Power securities regulatory documents, including under the heading “Enterprise Risk and Risk Management” in Emera and in Emera and NS Power’s annual Management’s Discussion and Analysis , and under the heading “Principal Financial Risks and Uncertainties” in the notes to the annual and interim financial statements of Emera and NS Power, which can be consulted on SEDAR at the address www.sedar.com.
About Emera Inc.
Emera Inc. is a geographically diversified energy and utilities company headquartered in Halifax, Nova Scotia with approximately $40 billion in assets and 2021 revenues of more than $5.7 billion. The company invests primarily in regulated electricity generation and in the transmission and distribution of electricity and gas, with a strategic focus on the transformation from high-carbon to low-carbon energy sources. Emera has investments in Canada, the United States and three Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F respectively , EMA.PR.H, EMA.PR.J and EMA.PR.L. Depositary receipts representing Emera’s common stock are traded on the Barbados Stock Exchange under the ticker symbol EMABDR and on the Bahamas International Securities Exchange under the ticker symbol EMAB. More information can be accessed at www.emera.com oa www.sedar.com.
About Nova Scotia Power
Nova Scotia Power Inc. is a wholly owned subsidiary of Emera Inc. (TSX-EMA), a diversified energy and utilities company. Nova Scotia Power provides 95 percent of its electric power generation, transmission and distribution to approximately 540,000 residential, commercial and industrial customers throughout Nova Scotia. The company is focused on new technologies to improve customer service and reliability, reduce emissions and add renewable energy. Nova Scotia Power has more than 2,000 employees and $4.5 billion in operating assets. Learn more about www.nspower.ca.