Federal Government Loan Guarantee Agreement Finalized To Help Manage Replacement Energy Costs for Nova Scotia Power Customers
25 September 2024 - 8:00AM
Business Wire
This news release constitutes a “designated
news release” for the purposes of Emera’s prospectus supplement
dated November 14, 2023, to its short form base shelf prospectus
dated October 3, 2023
The Government of Canada and the Government of Nova Scotia,
along with NSP Maritime Link Inc. (NSPML), and Nova Scotia Power
Inc. (NSPI), wholly owned subsidiaries of Emera Inc., have
finalized an agreement for a $500M federal loan guarantee that will
provide cost relief to electricity customers in Nova Scotia.
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the full release here:
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Natural Resources Canada is providing a federal loan guarantee
to support a new debt issuance by the Maritime Link Financing Trust
(MLFT). Proceeds will be advanced to NSPI and will be applied in
full against its current unrecovered fuel and purchased power
balance (“FAM balance”). This assistance is being provided by the
federal government to support Nova Scotia customers through more
cost-effective, long-term financing of the unrecovered cost of the
replacement energy that was required during the several years of
delay in the Muskrat Falls hydroelectricity project in Newfoundland
and Labrador. Debt issuance proceeds that exceed the current
outstanding NSPI fuel and purchased power receivable balance will
be applied against future fuel and purchased power costs.
The term and repayment mechanism of the debt to be issued under
the federal loan guarantee is expected to align with the existing
Maritime Link bond program, over a 28-year period. The transaction
is intended to help mitigate rate increases for customers in Nova
Scotia and help improve one of NSPI’s key credit metrics by
approximately 80 bps and help stabilize its credit rating, which
also has a direct benefit for customers.
The transactions are subject to certain conditions, including
regulatory approval by the Nova Scotia Utility and Review Board.
Both NSPI and NSPML will file applications related to the federal
loan guarantee on Wednesday, September 25, 2024.
Forward Looking Information This news release contains
forward-looking information within the meaning of applicable
securities laws, including statements concerning the issuance and
terms of the new federal loan guarantee and associated debt, the
planned use of proceeds from and repayment of the debt issuance;
the expected benefit to Nova Scotia customers; the expected impact
to NSPI credit metrics; and the satisfaction of certain conditions,
including regulatory approval by the Nova Scotia Utility and Review
Board. Undue reliance should not be placed on this forward-looking
information, which applies only as of the date hereof. By its
nature, forward-looking information requires Emera and NSPI to make
assumptions and is subject to inherent risks and uncertainties.
These statements reflect Emera and NSPI management’s current
beliefs and are based on information currently available to Emera
management. There is a risk that predictions, forecasts,
conclusions and projections that constitute forward-looking
information will not prove to be accurate, that Emera’s or NSPI’s
assumptions may not be correct and that actual results may differ
materially from such forward-looking information. Additional
detailed information about these assumptions, risks and
uncertainties is included in Emera’s and NSPI’s securities
regulatory filings, including under the heading “Business Risks and
Risk Management” in Emera’s and in NSPI’s annual Management’s
Discussion and Analysis, and under the heading “Principal Risks and
Uncertainties” in the notes to Emera’s and NSPI’s annual and
interim financial statements, which can be found on SEDAR+ at
www.sedarplus.ca.
About Nova Scotia Power NSPI is a wholly owned subsidiary
of Emera Inc. (TSX-EMA), a diversified energy and services company.
Nova Scotia Power provides 95% of the generation, transmission and
distribution of electrical power to approximately 553,000
residential, commercial and industrial customers across Nova
Scotia. The company is focused on new technologies to enhance
customer service and reliability, reduce emissions and add
renewable energy. Nova Scotia Power has over 2000 employees and
$4.5 billion in operating assets. Learn more at www.nspower.ca.
About Emera Emera (TSX: EMA) is a leading North American
provider of energy services headquartered in Halifax, Nova Scotia,
with investments in regulated electric and natural gas utilities,
and related businesses and assets. The Emera family of companies
delivers safe, reliable energy to approximately 2.5 million
customers in Canada, the United States and the Caribbean. Our team
of 7,300 employees is committed to our purpose of energizing modern
life and delivering a cleaner energy future for all. Emera’s common
and preferred shares are listed and trade on the Toronto Stock
Exchange. Additional information can be accessed at www.emera.com
or www.sedarplus.ca.
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version on businesswire.com: https://www.businesswire.com/news/home/20240924359380/en/
Investor Relations David Bezanson Vice President Investor
Relations & Pensions, Emera Inc. 902-474-2126
dave.bezanson@emera.com
Media Dina Bartolacci Seely media@emera.com
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