Emera Investor Presentation November 2008
Forward Looking Statements 1 Certain information provided in this presentation constitutes forward-looking statements. The words “ anticipate ,” “ expect ,” or “ project ,” and similar expressions are intended to identify such forward-looking statements. Although Emera believes such statements are based on reasonable assumptions, such statements are subject to certain risks, uncertainties and assumptions pertaining to operating performance, regulatory parameters, weather, economic conditions, etc. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Generating Results
Emera at a Glance 2 � Net Earnings Growth Electricity is our business Generation, transmission, distribution • $156 $160 $151 $3 $9 $140 � Foundation in regulated monopolies $126 $121 $120 595,000 customers in Nova Scotia and Maine • $100 55,000 customers in St. Lucia • Millions of dollars * 19,000 customers in Grand Bahama $80 • $153 $142 $60 � Low risk merchant generation $40 $20 � Gas transmission supports generation $0 2005 2006 2007 2008 $4.8 B assets Mark to Market *Trailing 12 months earnings Generating Results
Emera’s Investment Portfolio 3 Emera Inc. 100% 100% 50% 19% 7.4% Emera Nova Scotia Bear Open Energy Lucelec Power Inc. Swamp Hydro Services � � 100% 100% 25% 12.9% Grand Bangor Maritimes Brunswick Bahama Hydro & Northeast Pipeline* Power Company � Electric Pipeline � � � Contribution to Capital Employed Gross Earnings YTD % % 100 1 00 70 67 80 80 � 60 60 Regulated business 40 40 1 9 17 1 4 13 20 20 Under development * 0 0 NSPI BHE Other NSPI BHE Other Generating Results
Generating Results 4 � Dividend increases and solid yield Board of Directors increased the dividend 13% since July 2007 to $1.01 • Yields >4.5%, highest in our sector • � Visible earnings growth Record earnings in 2007 and YTD 2008 • Development in progress will increase earnings in coming years • � Demonstrated regulatory and permitting skills NRI was constructed and energized on schedule • Brunswick pipeline construction in underway and construction will be completed before year end • � Opportunities ahead Atlantic Canadian and New England infrastructure development • Caribbean generation development • Generating Results
What’s New At Emera 5 Earnings and Dividend Growth � Record earnings YTD 2008 $1.36 � YTD Share price performing better than peers and $1.14 $1.06 Utilities Index $0.7125/$0.965 $0.89 $0.90 � NSPI rate settlement agreement approved as filed Earnings Per Share by Utility and Review Board allows for a 9.4% rate Dividends Per Share increase and FAM � $41 million investment in Grand Bahama Power 2006 2007 2008 Company YTD Share Price Performance vs. S&P/TSX Utilities Index (Jan 1 - Nov 3) � Brunswick Pipeline on schedule to be completed 10.00% 5.00% Cumulative % Change by year end 0.00% -5.00% -10.00% -15.00% -20.00% � $15 million investment in Open Hydro -25.00% -30.00% -35.00% 1/2/08 1/16/08 1/30/08 2/13/08 2/27/08 3/12/08 3/26/08 4/9/08 4/23/08 5/7/08 5/21/08 6/4/08 6/18/08 7/2/08 7/16/08 7/30/08 8/13/08 8/27/08 9/10/08 9/24/08 10/8/08 10/22/08 � Transmission development activities continue to advance in New England Emera S&P/TSX Utilities Index Generating Results
Brunswick Pipeline 6 � Construction of the pipeline is Quebec approximately 90% complete and will Quebec NB be ready for gas by year end City PEI Fredericton � The 1.3 km horizontal directional drill Maine Moncton under the St. John River was Goldboro Saint John successfully completed in September VT Bangor Halifax NS � All time-sensitive environmental Portland NH Canaport LNG activities have been completed Maritimes & Northeast Pipeline Boston Existing Compressor Station � Pipeline provides the basic MA Brunswick Pipeline infrastructure for expansion � Final capital cost is expected to be $465 million � Forecasted to contribute annual net earnings of approximately $25 million Generating Results
Investment in Grand Bahama Power Company 7 � Invested $41 million USD for 25% ownership interest in Grand Bahama Power Company � Regulated Integrated Utility � 19,000 customers � 137 MW of oil-fired capacity � 1,100 miles of transmission and distribution lines � Solid regulatory system with FAM in place � Ownership: 50% Marubeni / 50% ICDU (publically traded) ICDU ownership: 50% Emera • 39.2% publically traded 10.8% Marubeni Generating Results
Additional Caribbean Investment 8 � The Caribbean region is a focus for Emera Growth market • Grand Grand Bahama Bahama Our operational skills are valued and aligned • The Bahamas The Bahamas � Emera plans to invest up to $400 million in capital in the region over the next 4 years Dominican Republic Dominican Republic Antigua and Antigua and Haiti Haiti Barbuda Barbuda � Emera has invested $41 million in Grand Bahama Puerto Rico Puerto Rico Power Company and $22 million in Lucelec, the Jamaica Jamaica electric utility in St. Lucia ST. LUCIA Barbados Barbados � There is potential for new generation development in St. Lucia and other areas, including the development of Curaçao Curaçao renewables throughout the region Port-of-Spain Port-of-Spain Trinidad and Tobago Trinidad and Tobago � Emera understands the utility businesses, challenges and opportunities in the region � Emera is a member of CARILEC (Caribbean Electric Utility Service Corporation) Generating Results
Focus on Transmission in Our Region 9 � We believe there are many opportunities Hydro for us right in our own backyard Quebec Churchill Falls, � Emera submitted a proposal for the Labrador Northeast Energy Link – a large transmission project to the Planning Advisory Committee of ISO New England for economic study in April 2008 NB Renewables � Emera is evaluating clean generation sources for this new transmission line NSP Renewables Bangor Halifax NSP Point Lepreau Tidal Transmission Bear Swamp New England Transmission Line Generating Results
Focus on Transmission in Our Region 10 Overview of Northeast Energy Link (NEL) project � 240 mile, Direct Current (DC) line from Orrington, Maine to Boston load zone with possible future phase extending to Connecticut � Capability of importing 660-1100 MW of clean and/or renewable generation into the Boston (eastern Massachusetts) and Keswick Connecticut markets Pt. Lepreau � Frees up significant capacity on the existing and future Orrington AC system � Expansion capability with minimal environmental impacts NEMA Boston � Uses existing capacity between Maine and or SEMA New Brunswick created by the Northeast Reliability Interconnect to connect generation with New England load � Estimated investment of $2 billion (at 660 MW to Massachusetts) � Agreement in place with National Grid to co-develop the transmission project Generating Results
Transmission Projects in Maine 11 Bangor Hydro focus on Transmission Development � Great Lakes Hydro $15 million project in 2001 • � Northeast Reliability Interconnect In service December 2007 • � Hancock County Reliability $24 million project - $14 million forecast • for 2008 To be in service by end of 2008 • � Keene Road 345kV Substation $27 million project - $3.2 million in 2008 • Plan to energize 2009 • � Downeast Reliability $66 million project – $1 million forecast • for 2008 Plan to energize early 2012 • � Northeast Energy Link Generating Results
OpenHydro Investment 12 � Emera invested $15 million US for a 7.4% interest in OpenHydro in February 2008 � OpenHydro designs and manufactures marine turbines for harnessing energy from tidal currents under the world’s oceans. � OpenHydro is the first company to deploy a tidal turbine directly on the sea bed at the European Energy Marine Centre (“EMEC”) in Scotland � A one MW turbine has been operating successfully at EMEC for two years � EDF Group, a world energy leader, has selected OpenHydro Group to build the first underwater tidal turbine farm in France � NSPI has selected this technology for deployment in a demonstration project in the Bay of Fundy starting in 2009 Generating Results
Becoming Cleaner and Greener 13 � NSPI has contracted for 246 MW of wind which will increase the wind on the ground in Nova Scotia by five fold by 2010 � BHE focus on transmission of renewable energy from Maritimes and northern Maine to high demand regions of New England � Emera recently invested in OpenHydro – exciting tidal technology which will be tested by NSPI in Bay of Fundy � NSPI investing in a waste heat recovery project at Tufts Cove Power Plant � NSPI investing to improve operational and environmental performance at Trenton Unit 5 � NSPI is pursuing right of way acquisition to facilitate further transmission development Generating Results
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