Emera Incorporated (Emera) is a North American provider of energy services owning and operating a portfolio of cost-of-service, rate-regulated electric and gas utilities. The company’s largest operations are in Florida, with additional operations in Atlantic Canada, New Mexico and the Caribbean.
Segments
The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other.
Florida Electric Utility segment
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Emera Incorporated (Emera) is a North American provider of energy services owning and operating a portfolio of cost-of-service, rate-regulated electric and gas utilities. The company’s largest operations are in Florida, with additional operations in Atlantic Canada, New Mexico and the Caribbean.
Segments
The company operates through Florida Electric Utility, Canadian Electric Utilities, Gas Utilities and Infrastructure, Other Electric Utilities, and Other.
Florida Electric Utility segment
The Florida Electric Utility segment consists of Tampa Electric Company (TEC), a vertically integrated regulated electric utility engaged in the generation, transmission and distribution of electricity, serving customers in West Central Florida.
TEC is regulated by the FPSC and is also subject to regulation by the United States Federal Energy Regulatory Commission (FERC).
Energy Sources and Generation
As of December 31, 2024, TEC owned 6,620 MW of generating capacity, of which 73 per cent is natural gas fired, 20 per cent is solar and 7 per cent is coal. TEC also owns 2,192 kilometers of transmission facilities and 20,693 kilometers of distribution facilities. TEC meets the planning criteria for reserve capacity established by the FPSC, which is a 20 per cent reserve margin over firm peak demand.
System Operations
TEC’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 neighboring electric utilities within the Florida Region, TEC’s system has access to other regional power systems and the rest of the interconnected North American electric bulk power system. The interconnection of power systems enhances the reserve capacity and reliability of participating power systems. As a member of the Florida Reserve Sharing Group, TEC has immediate access to reserve generating capacity from all other group members.
Environmental Considerations
TEC has significant environmental considerations. TEC 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.
Carbon Reductions and GHG
On April 24, 2024, the U.S. Environmental Protection Agency (EPA) issued its final power plant rules for electric generating units, including (i) new GHG standards; and (ii) Mercury and Air Toxics Standards (‘MATS’). The new MATS will not have a material impact on TEC. The new GHG standard applies only to existing coal-fired and new natural gas electric generating units and will therefore have limited impact on TEC generating units. Big Bend Unit 4 is the only unit affected. As written, the rule would require Big Bend Unit 4 to retire in 2039 without major enhancements to the unit, instead of the current planned retirement date of 2040.
CCR Recycling and Regulation
TEC produces ash and other by-products, collectively known as coal combustion residuals (‘CCRs’) at Big Bend Power Station.
Water Supply and Quality
The 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 TEC’s Bayside and Big Bend Power Stations. Polk Power Station is not covered by this rule since it does not operate an intake on ‘waters of the United States’. TEC has two ongoing projects (one for Bayside and one for Big Bend) that require compliance with the rule. Compliance includes the completion of the biological, technical, and financial study elements required by the rule. These study elements have been completed and submitted for Bayside and were used by the Florida Department of Environmental Protection (‘FDEP’) to determine the necessity of cooling water system retrofits. FDEP agreed with TEC’s proposed plan for Bayside and TEC began a multi-year construction project to install new fish-friendly modified traveling screens and a fish return in 2022. TEC is negotiating an alternative schedule for Big Bend (as allowed by the rule) but completed a portion of the compliance requirements with the Big Bend modernization project with the installation of fish-friendly modified traveling screens and a fish return on modernized Unit 1.
EPA Waters of the U.S.
In 2023, the EPA and Department of the Army issued a final rule amending the definition of ‘waters of the United States’.
Ozone
On December 31, 2020, the EPA published a final rule to retain the national ambient air quality standards (NAAQS) for photochemical oxidants including ozone, originally adopted in 2012. Under the Clean Air Act, the EPA is required to review the NAAQS every five years, and if appropriate, revise it.
Superfund and Former Manufactured Gas Plant Sites
Previously, TEC had been a potentially responsible party (PRP) for certain superfund sites through its Tampa Electric and former PGS divisions, as well as for certain former manufactured gas plant sites through its PGS division.
Canadian Electric Utilities segment
The Canadian Electric Utilities segment includes Nova Scotia Power (NSPI) and NSP Maritime Link Incorporated (NSPML). 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. NSPML is a 100 per cent equity interest in the Maritime Link Project (‘Maritime Link’), a transmission project between the island of Newfoundland and Nova Scotia.
NSPI is a public utility as defined in the Public Utilities Act and is subject to regulation under the Public Utilities Act by the Nova Scotia Utility and Review Board (UARB). The Public Utilities Act gives the UARB supervisory powers over NSPI’s operations and expenditures. Electricity rates for NSPI’s customers are subject to UARB approval. NSPI is not subject to a general annual rate review process, but rather participates in hearings held from time to time at NSPI’s or the UARB’s request.
NSPI has a fuel adjustment mechanism (FAM), approved by the UARB, allowing NSPI to recover fluctuating fuel and certain fuel-related costs from customers through regularly scheduled fuel rate adjustments.
Energy Sources and Generation
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 hydro, wind, or solar, 7 per cent is petroleum coke (‘petcoke’) and 2 per cent is biomass-fueled generation. In addition, NSPI has contracts to purchase renewable energy from IPPs, and COMFIT participants, which own 533 MW of capacity. NSPI also has rights to 153 MW of Maritime Link capacity, representing NLH’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 intention 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 software application used by system operators for remote monitoring and control of the power system assets via the company’s telecommunication networks.
Through interconnection agreements with NB Power and with NLH, NSPI’s system has access to other regional power systems and the interconnected North American bulk electric 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.
NSPI is a member of the NPCC, a body whose primary role is promoting the reliability of the interconnected power systems throughout the Northeastern United States and Eastern Canada (Nova Scotia, New Brunswick, Quebec, Ontario) under the regulatory authority of NERC. NERC and NPCC reliability standards and criteria are approved for enforcement in Nova Scotia by the UARB. NSPI complies with NPCC criteria and NERC standards for the design, planning and operation of NSPI’s portion of the interconnected bulk electric system.
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.
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 common equity component of up to 30 per cent.
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. NLH’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.
Environmental Considerations
NSPI is subject to environmental laws and regulations set by both the Government of Canada and the Province.
Gas Utilities and Infrastructure segment
The Gas Utilities and Infrastructure segment includes Peoples Gas System (PGS), New Mexico Public Regulation Commission (NMGC), SeaCoast, Brunswick Pipeline and Emera’s equity 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 and NMGC’s intrastate transmission and distribution system for delivery to customers.
Market and Sales
PGS
As of December 31, 2024, PGS served approximately 508,000 customers. The PGS system includes approximately 25,240 kilometers of natural gas mains and 14,530 kilometers of service lines. Natural gas throughput (the amount of gas delivered to its customers, including transportation-only service) was 2 billion therms in 2024.
PGS is regulated by the FPSC.
NMGC
As of December 31, 2024, NMGC served approximately 550,000 customers. NMGC’s system includes 2,405 km of transmission lines and 17,810 km of distribution lines. Annual natural gas throughput was 1 billion therms in 2024.
NMGC is subject to regulation by the NMPRC.
On August 5, 2024, Emera announced an agreement to sell NMGC. The transaction is expected to close in late 2025, subject to certain approvals, including approval by the NMPRC.
Emera Brunswick Pipeline Company (EBPC)
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. In the absence of a complaint, the CER does not normally undertake a detailed examination of Brunswick Pipeline’s tolls, which are subject to a firm service agreement with RENAC, as noted above. The firm service agreement provides for a predetermined toll increase in the fifth and fifteenth year of the contract.
Economic Dependence
Brunswick Pipeline has a 25-year firm service agreement with RENAC, which expires in 2034.
Maritimes & Northeast Pipeline (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.
Environmental Considerations
PGS’s operations are subject to federal, state and local statutes, rules and regulations relating to the discharge of materials into the environment and the protection of the environment that generally require monitoring, permitting and ongoing expenditures. Previously, TEC had been a potentially responsible party (‘PRP’) for certain superfund sites through its Tampa Electric and former PGS divisions, as well as for certain former manufactured gas plant sites through its PGS division. As a result of the separation of the PGS division into a separate legal entity, Peoples Gas System, Inc. is also now a PRP for those sites (in addition to third party PRPs for certain sites).
Brunswick Pipeline is subject to both federal and provincial environmental regulations.
Other Electric Utilities segment
Other Electric Utilities segment 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 an equity investment in Lucelec on the island of St. Lucia.
Barbados Light & Power Company Limited (BLPC)
As of December 31, 2024, BLPC served approximately 135,000 customers. BLPC owns 243 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 3,989 km of distribution lines which includes distribution supply substations.
BLPC operates pursuant to a single integrated license to generate, transmit and distribute electricity on the island of Barbados until 2028. In 2019, the Government of Barbados passed legislation requiring multiple licenses for the supply of electricity. In 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, Barbados (FTC). BLPC's approved regulated return on rate base is 10 per cent.
Grand Bahama Power Company (GBPC)
As of December 31, 2024, GBPC served approximately 19,500 customers. GBPC owns 98 MW of oil-fired generation, approximately 90 kilometers of transmission facilities and 994 kilometers of distribution facilities.
GBPC is regulated by the Grand Bahama Port Authority (GBPA).
System Operation
BLPC and GBPC have system control centres that co-ordinate and control their electric generation and transmission facilities with the goal 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 Corporate; Emera Energy Services (EES), physical energy marketing and trading business; a 50 per cent joint venture interest in Bear Swamp, a 660 MW pumped storage hydroelectric facility in northwestern Massachusetts; and Block Energy. In Q4 2024, Block Energy initiated the process to wind-up operations.
Emera Energy
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 U.S. Southeast, Gulf Coast and Midwest, and Central Canadian and Alberta 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.
