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Continued Solid Earnings For Emera Through 2000
Maritimes & Northeast Pipeline Diversifies Earnings Base

HALIFAX, Nova Scotia, February 16, 2001, (TSE:EMA): Emera Inc.'s consolidated earnings increased to $104.4 million, or $1.20 per share in 2000, up from $100.4 million, or $1.16 per share, in 1999. Earnings for the three months ended December 31, 2000 were $29.6 million, or $0.34 per share, compared with $28.4 million, or $0.33 per share, for the three months ended December 31, 1999.

"Emera is transforming itself from a Nova Scotia electricity company into a Northeastern energy company," said David Mann, President and Chief Executive Officer. "Nova Scotia Power Inc. (NSPI) contributed record revenues and earnings this year, and we're growing and diversifying our earnings base through our investment in the Maritimes & Northeast Pipeline, which generated after-tax equity earnings of $6.0 million in 2000."

Mr. Mann also noted that, in addition to the financial returns, Emera's pipeline investment "positions our company on the ground floor for participating in continuing offshore development in the region." Emera intends to build on that stake, leveraging its knowledge and investments to develop partnerships with industry leaders on new gas infrastructure projects. "There are many opportunities, so we will be selective in pursuing them, to ensure our resources are applied in the most profitable manner, consistent with our risk profile and our shareholders' expectations," he said.

Earlier this month, Emera offered to purchase the Sable Offshore Energy Project (SOEP) assets of Nova Scotia Resources Limited. "We are optimistic about the prospects for completing this transaction," said Mr. Mann. "We believe there are real benefits to having Atlantic Canadian participation in Nova Scotia's offshore development, and we look forward to adding an interest in the SOEP infrastructure to our growing portfolio of solid revenue generating energy assets."

Electric revenues reached a record $813.3 million in 2000, compared to $790.2 million in 1999. Growth in the provincial economy, and seasonal colder temperatures in 2000 compared to 1999, led to increases in NSPI's residential and commercial sales volume and revenues. Industrial revenues also increased, though at a slower pace than 1999, when growth reflected a major expansion at the company's largest industrial customer. The year-over-year colder weather had the greatest impact in the three months ended December 31, 2000, when revenues increased to $218.0 million, compared to $206.2 million in 1999.

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, which rose from $17.8 million to $73.8 million. While 2000 was a challenging year in the fuel oil market, as rising world prices depressed industry margins, Emera Fuels generated $1.4 million in earnings before interest and taxes, an increase of $1.0 million over 1999.

Fuel for generation and purchased power totalled $273.9 million in 2000, compared to $267.5 million in 1999, consistent with the increase in production levels needed to meet higher sales volumes. Fuel costs for the three months ended December 31, 2000 were $74.6 million, compared to $70.8 million in 1999. Nova Scotia Power's continued focus on fuel cost control resulted in savings of $19 million, reflecting the increased use of lower priced import coal. "Coal is far and away our dominant fuel source, and coal cost savings are the major reason we were able to significantly offset the impact of higher world oil prices, and protect customers from an electricity price increase this year," said Mr. Mann. Toward the end of 2000, NSPI converted the Tufts Cove generating station to dual fire on natural gas as well as oil. Adding further flexibility to the company's fuel mix supports NSPI's fuel cost management and rate stability strategy, and also enhances its emissions management options.

Higher operating, maintenance and general expenditures (OM&G) in 2000 reflect the company's continued emphasis on its customer focused strategy, and its commitment to enhancing value and service aimed at long term customer retention. OM&G expenses rose from $155.5 million in 1999 to $168.0 million in 2000. The increase reflects NSPI's additional investment to ensure production reliability as capacity utilization increases. In particular, the company undertook significant maintenance at the Tufts Cove generating station, with the expectation that it will carry an increased share of production having now been converted to dual-fire on oil and natural gas. During the year NSPI's marketing and sales function was restructured to implement new customer quality initiatives and measurement systems, and investments were made to develop and market new products and services to further grow its business.
Lower amortization positively affected NSPI's contribution to Emera's consolidated results. In 1999, Point Aconi amortization was $23.1 million. In 2000, the cessation of this charge was partially offset by a $19.0 million charge relating to the permanent shut-down of the Glace Bay generating station, $9.1 million of which was taken in the fourth quarter upon approval from the Utility and Review Board.

About Emera Inc.

Emera Inc. (TSE-EMA) 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. Emera is in the process of gaining regulatory approvals for the acquisition of 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. Bangor shareholders have approved the transaction. On February 6, 2001, Emera announced its offer to purchase the Sable Offshore Energy Project (SOEP) infrastructure assets of Nova Scotia Resources Limited for $90.0 million. The acquisition comprises an 8.4% interest in the $2.0 billion SOEP infrastructure, including a gas processing plant at Goldboro, Nova Scotia; a natural gas liquids fractionation plant at Point Tupper, Nova Scotia; a natural gas liquids line connecting the Goldboro and Point Tupper operations; and offshore production platforms and sub-sea gathering pipelines. The offer is subject to certain rights of first refusal that, if unexercised, expire in mid-April, 2001.

Conference Call:

Emera is holding a teleconference today at 3 pm Atlantic (2 pm Eastern, 11 am Pacific) to discuss the 2000 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-877-871-4101 (Toronto area - 416-641-6442) at least 10 minutes prior to the start of the call. No pass code is required. A replay of the teleconference will be available one hour after the call ends, until midnight on Monday, February 19, 2001 by dialling 1-416-626-4100 and entering the pass code 17818288. The teleconference will also be Webcast live on the internet at www.Q1234.com. The internet broadcast will be archived and available for replay.

Forward Looking Information:

This news release contains forward looking information. Actual future results may differ materially. Additional financial and operational information is filed electronically with various securities commissions in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR).