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Emera Reports Increased Earnings to September 30, 2000

HALIFAX, Nova Scotia, November 10, 2000, (EMA-TSE): Emera Inc.'s consolidated earnings increased to $74.8 million for the nine months ended September 30, 2000, up from $72.0 million during the same period last year. Year to date earnings per share were $0.86, compared to $0.83 in 1999. Earnings for the three months ended September 30, 2000, were $4.9 million, or $0.06 per share, compared with $9.0 million, or $0.11 per share for the three months ended September 30, 1999.

"Our third quarter reflects the impact of a $2.0 million write-off of Emera's portion of the small percentage of Maritimes & Northeast Pipeline construction costs which were disallowed by the National Energy Board during the pipeline's recent toll hearings," said David Mann, President and Chief Executive Officer of Emera. In addition to the write-off, a $1.6 million non-cash adjustment was made to Emera's future income tax balance related to the pipeline.

"The write-off is a one-time charge. Our share of M&NP operating earnings has increased by $1.1 million this quarter now that the pipeline is up and running, and we expect this investment to deliver solid earnings going forward," said Mr. Mann.

Lower amortization in its subsidiary, Nova Scotia Power Inc. (NSPI), continues to positively affect Emera's consolidated results in 2000, due to the completion of the amortization of Point Aconi costs last year. In 1999, Point Aconi amortization was $17.3 million for the nine months ended September 30. In 2000, the cessation of this charge is partially offset by a $9.9 million year to date accrual for site restoration costs relating to the Glace Bay generating station.

Year to date electric revenues increased to $595.3 million, up from $584.0 million for the nine months ended September 30, 1999. Average temperatures in 2000 have been colder than 1999, which had a favourable impact on residential and commercial revenues during the winter heating months, and the opposite effect during summer. The benefit of higher sales to other industrial customers was offset by reduced activity at Sydney Steel during the third quarter. As a result, electric revenues for the three months ended September 30, 2000 stayed consistent with 1999, totalling $181.9 million, compared to $181.3 million last year.

Fuel for generation and purchased power for the nine months ended September 30, 2000 totalled $199.3 million, compared to $196.7 million for the same period in 1999, consistent with the increase in production to meet higher sales volumes. Savings of $12.9 million from the purchase of lower priced coal were offset by higher costs for oil and replacement energy, and lower hydro production. Higher oil prices are expected to continue to put upward pressure on fuel costs into the first half of 2001. "We are proud that we have been able to provide our customers with stable electric prices despite the dramatic increase in some fuel prices," said Mr. Mann.

Higher operating, maintenance and general expenditures (OM&G) in 2000 reflect the company's increased investment to enable higher capacity utilization of its electric generating facilities. In the first half of the year, a significant portion of the increase related to the Tuft's Cove generating station, which is expected to carry an increased share of production with its conversion to dual fire on oil and natural gas. In the third quarter, the company focused on its coal fired capacity, to ensure reliability in the event of increased utilization should oil and gas prices stay high through the winter. In addition, Emera continues to invest in customer processes and capabilities in order to better respond to customer needs and provide enhanced service.

The expansion of Emera's fuel oil distribution business through acquisitions in 1999 resulted in the significant increase year-over-year in fuel oil sales volumes and revenue. "Our challenge going forward is to increase the contribution to earnings from this line of business by realizing synergies in areas like purchasing, vehicle fleets, scheduling systems, and customer services", said Mr. Mann.

Corporate Developments

The Nova Scotia Utility and Review Board approved Nova Scotia Power Inc.'s application to offer "real time pricing" to customers, an option which will appeal to larger customers who have the ability to shift electricity consumption to non-peak times, when marginal costs of electricity production are lower. This pricing alternative illustrates the company's commitment to its customers, providing them with options for managing energy costs, and also supports NSPI's objective of increasing efficiency and capacity utilization by moving demand from peak to non-peak periods.
On October 24, 2000, the shareholders of Bangor Hydro Electric Company approved the sale of their company to Emera Inc. for $305 million. The acquisition is also subject to approval by a number of regulatory agencies in the United States. These approval processes are underway, and are expected to be complete in the first half of 2001.
Emera Inc. recently welcomed Mr. Ron Smith, FCA as Chief Financial Officer of the corporation. Mr. Smith joins Emera following 12 years as CFO with Maritime Telegraph and Telephone Company Limited (MTT), where he played a leadership role in MTT's successful evolution to a competitive business environment following deregulation of the telecommunications industry, and in the eventual merger of the Atlantic Canadian telephone companies in 1999.

Corporate Profile

Emera Inc. (EMA-TSE) is a diversified energy and services company, with 440,000 customers and $2.9 billion in assets. Its wholly-owned operating subsidiary, Nova Scotia Power Inc., is a regulated electric utility that supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Emera also delivers bunker oil, diesel fuel and light fuel oil through its unregulated subsidiaries, and has a 12.5 per cent interest in the Maritimes & Northeast Pipeline, which delivers Sable Island natural gas to markets in Maritime Canada and the northeastern United States. On June 30, 2000, Emera announced it will acquire all of the common shares of Bangor Hydro-Electric Company (NYSE:BGR), a regulated electric transmission and distribution business serving 110,000 customers in Maine.