Emera Investor Presentation November 2008 Forward Looking - - PowerPoint PPT Presentation

Emera Investor Presentation

November 2008

1 Generating Results

Forward Looking Statements

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.

2 Generating Results

Emera at a Glance

Net Earnings Growth

• Electricity is our business
• Generation, transmission, distribution
• Foundation in regulated monopolies
• 595,000 customers in Nova Scotia and Maine
• 55,000 customers in St. Lucia
• 19,000 customers in Grand Bahama
• Low risk merchant generation
• Gas transmission supports generation

$121 $126 $142 $9 $153 $3 $0 $20 $40 $60 $80 $100 $120 $140 $160 2005 2006 2007 2008 Millions of dollars

*

$151 $156

$4.8 B

assets

Mark to Market *Trailing 12 months earnings

3 Generating Results

Emera’s Investment Portfolio

Emera Energy Services Brunswick Pipeline* Bear Swamp Lucelec Maritimes & Northeast Pipeline Bangor Hydro Electric Nova Scotia Power Inc.

100% 100% 100% 12.9%

• 100%

50% 19%

• Open

Hydro

7.4%

Grand Bahama Power Company

25%

Emera Inc.

Contribution to Gross Earnings YTD % Capital Employed %

17 13 70 20 40 60 80 100 NSPI BHE Other 1 9 1 4 67 20 40 60 80 1 00 NSPI BHE Other

• Regulated business

*

Under development

4 Generating Results

Generating Results

• 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

5 Generating Results

What’s New At Emera

Earnings and Dividend Growth

• Record earnings YTD 2008
• Share price performing better than peers and

Utilities Index

• NSPI rate settlement agreement approved as filed

by Utility and Review Board allows for a 9.4% rate increase and FAM

• $41 million investment in Grand Bahama Power

Company

• Brunswick Pipeline on schedule to be completed

by year end

• $15 million investment in Open Hydro
• Transmission development activities continue to

advance in New England

2006 2007 2008

Earnings Per Share Dividends Per Share

$1.14 $0.89 $1.36 $0.90 $0.7125/$0.965 YTD $1.06

YTD Share Price Performance vs. S&P/TSX Utilities Index (Jan 1 - Nov 3)

• 35.00%
• 30.00%
• 25.00%
• 20.00%
• 15.00%
• 10.00%
• 5.00%

0.00% 5.00% 10.00% 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 Cumulative % Change Emera S&P/TSX Utilities Index

6 Generating Results

Brunswick Pipeline

• Construction of the pipeline is

approximately 90% complete and will be ready for gas by year end

• The 1.3 km horizontal directional drill

under the St. John River was successfully completed in September

• All time-sensitive environmental

activities have been completed

• Pipeline provides the basic

infrastructure for expansion

• Final capital cost is expected to be $465 million
• Forecasted to contribute annual net earnings of

approximately $25 million

Portland Moncton Quebec City

NS NB Quebec Maine PEI

Boston Fredericton

Bangor

Saint John

VT MA NH

Canaport LNG Goldboro Halifax

Maritimes & Northeast Pipeline Existing Compressor Station Brunswick Pipeline

7 Generating Results

Investment in Grand Bahama Power Company

• 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

8 Generating Results

Additional Caribbean Investment

• The Caribbean region is a focus for Emera
• Growth market
• Our operational skills are valued and aligned
• Emera plans to invest up to $400 million in

capital in the region over the next 4 years

• Emera has invested $41 million in Grand Bahama

Power Company and $22 million in Lucelec, the electric utility in St. Lucia

• There is potential for new generation development in
• St. Lucia and other areas, including the development of

renewables throughout the region

• Emera understands the utility businesses, challenges and
• pportunities in the region
• Emera is a member of CARILEC (Caribbean Electric Utility Service Corporation)

Trinidad and Tobago Port-of-Spain Barbados Antigua and Barbuda Puerto Rico Dominican Republic Haiti Jamaica The Bahamas Curaçao Grand Bahama Trinidad and Tobago Port-of-Spain Barbados

• ST. LUCIA

Antigua and Barbuda Puerto Rico Dominican Republic Haiti Jamaica The Bahamas Curaçao Grand Bahama

9 Generating Results

Focus on Transmission in Our Region

Bear Swamp Halifax Bangor

New England Transmission Line Point Lepreau Tidal NSP Transmission NB Renewables

• We believe there are many opportunities

for us right in our own backyard

• Emera submitted a proposal for the

Northeast Energy Link – a large transmission project to the Planning Advisory Committee of ISO New England for economic study in April 2008

• Emera is evaluating clean generation

sources for this new transmission line

NSP Renewables Churchill Falls, Labrador Hydro Quebec

10 Generating Results

Focus on Transmission in Our Region

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 Connecticut markets

• Frees up significant capacity on the existing and future

AC system

• Expansion capability with minimal environmental

impacts

• Uses existing capacity between Maine and

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

Orrington

NEMA Boston

• r SEMA

Keswick

• Pt. Lepreau

11 Generating Results

Transmission Projects in Maine

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

12 Generating Results

OpenHydro Investment

• 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

13 Generating Results

Becoming Cleaner and Greener

• 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

14 Generating Results

Emera – Stable and Secure

• The company has access to debt capital markets, including more than $1.3 billion in committed

syndicated bank lines of credit and an active commercial paper program

• More than $500 million of credit facilities are currently available
• In Q1, 2008 both Emera and NSPI completed final filings of debt shelf prospectuses for $400 million each
• The company’s financing facilities are expected to provide sufficient access to money markets and capital

markets necessary to maintain acceptable levels of liquidity relative to current cash forecasts

• Cash forecasts show we will be well within our debt service coverage ratios
• Plans for 2009 include financing of Brunswick Pipeline

15 Generating Results

Investor Relations Contacts

Nancy Tower, FCA Chief Financial Officer Direct: 902-428-6991 Email: nancy.tower@emera.com Jennifer Nicholson, CA Director, Investor Relations & Strategic Development Direct: 902-428-6347 Email: jennifer.nicholson@emera.com