Emera - Emera Reports 1st Quarter Earnings of $33.6 Million

Emera Reports 1st Quarter Earnings of $33.6 Million
Nova Scotia Power Pulls Down Results

HALIFAX, Nova Scotia, April 30, 2002, (TSE:EMA): Emera Inc.'s consolidated earnings were $33.6 million in the first quarter of 2002, compared to $43.6 million for the same period in 2001. The drop is due to a 36%, or $15.1 million, decline in net earnings in the company's largest subsidiary, Nova Scotia Power (NSPI). Bangor Hydro (BHE), acquired in late 2001, added $4.7 million to Emera's consolidated earnings this quarter.

NSPI's earnings fell to $27.3 million in Q1 2002, compared to $42.4 million in Q1 2001, primarily due to a $7.0 million increase in fuel cost. In addition pension expense was $2.5 million higher year over year, as a result of changes in actuarial assumptions and plan performance. Warmer temperatures in the first quarter of 2002 had a slightly negative impact on NSPI's electricity sales, which decreased by $1.8 million compared to the same period in 2001. After six years without a rate increase, Nova Scotia Power now has an application before the Nova Scotia Utility and Review Board for an average 8.9% increase in electricity rates, primarily as a result of higher fuel prices compounded by a weak Canadian dollar.

"We have worked hard to absorb increasing costs while continuing to provide excellent customer service," said David Mann, President and Chief Executive Officer of Emera Inc. "We have managed six years without a rate increase to our customers, but we must now ensure that we maintain a financially strong utility for the benefit of both customers and shareholders. We look forward to a timely and fair resolution of our rate application."

Emera Inc. earnings per share were $0.34 for the period, compared to $0.49 for the first quarter of 2001, reflecting the lower earnings year over year and the $0.04 dilutive impact of the common equity issue in March 2001.
The company's total revenues increased $73.5 million in Q1 2002, to $334.6 million, up from $261.1 million in 2001. This increase is substantially a result of the addition of the Bangor Hydro operations.

Emera Energy contributed $4.6 million to Emera's consolidated earnings before interest and taxes in the first quarter of 2002, up from $3.1 million for the same period in 2001. The increase is a result of the addition of a new energy services business, and the Sable Project acquisition.

Consolidated operating cash flow was up slightly to $71.9 million in Q1, 2002 compared to $67.5 million in Q1, 2001. The cash generated from Bangor Hydro and the Sable interest offset negative cash impacts of higher cash expenses, primarily fuel related, and decreased revenues in NSPI.

Corporate Developments

As anticipated, the Canada Customs and Revenue Agency is appealing the January 29, 2002 Tax Court of Canada decision which recognized Nova Scotia Power's right to certain income tax deductions related to the capitalization of interest on assets constructed by its predecessor company. The deductions created tax depreciation and tax loss carryforwards that served to reduce income taxes otherwise payable by NSPI of approximately $110 million through 2001.

During the quarter the Nova Scotia Government announced a $10.7 million annual increase in grants NSPI must make in lieu of property taxes, effective January 31, 2003. This will not impact the company's 2002 earnings. NSPI will address the new tax in its planned 2003 rate application.

The company's US operation, Bangor Hydro-Electric, is in the process of negotiating an Alternative Rate Plan (performance-based rate structure) with its regulator. Bangor Hydro also announced the first phase of its planned restructuring to reduce operating costs by 20%. Early retirement was offered to 71 of the company's 425 employees as part of an overall plan to reduce the workforce by approximately 25%. "The actions we are taking are critical to the future success of the company," said Ray Robinson, Bangor Hydro's Chief Operating Officer. "For Bangor Hydro to provide much needed rate stability for its customers, and at the same time achieve the financial performance it needs to contribute to the growth of Emera, we must take steps to increase operational efficiency and improve our effectiveness."

About Emera Inc.

Emera Inc. (EMA-TSE) is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro provides electricity transmission and distribution service to 110,000 customers in eastern Maine. It is a member of the New England Power Pool, and is interconnected with the other New England utilities to the south and with New Brunswick Power to the north. In addition, Emera Energy manages Emera's growing gas infrastructure investment portfolio, including its 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States; and an 8.4% interest in the Sable Offshore Energy Project offshore platforms and sub-sea field gathering lines. Emera Energy also incorporates Emera Energy Services , Emera Fuels, and Emera's business development activities.

Conference Call:

Emera is holding a teleconference today at 5:00 pm Atlantic (4:00 pm Eastern, 1:00 pm Pacific) to discuss the first quarter 2002 financial results. Analysts and other interested parties wanting to participate in the call should dial 1- 888-391-0089 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 Friday, May 3rd 2002 by dialling 1-800-558-5253 and entering the pass code #20502635. 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).