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Nova Scotia Power Hit with Sudden Tax Increase

HALIFAX, Nova Scotia, March 21, 2002: (TSE:EMA) Nova Scotia Power Inc. (NSPI) was today informed of a new provincial tax to take effect April 1, 2002. The Nova Scotia Government will be charging NSPI $10.7 million in new
taxes annually, for a total of $26.4 million in property taxes. Nova Scotia Power is a wholly owned subsidiary of Emera
Inc.

"This sudden new tax causes us grave concern. It is surprising that the government would consider leveling such a large new tax without an appropriate phase-in period, as there are financial impacts," said Emera's Chief Financial Officer, Ron Smith. "Obviously, this magnitude of tax increase will eventually be reflected in our rate structure, but changing our rates is a complex and detailed process that we have to work through with the Utility and Review Board. These procedures will not allow us to recover these sudden new costs in a timely manner and we must now consider how to manage this additional and immediate burden. The length of time that it takes to work through an application for a rate change makes the situation even more difficult."

Nova Scotia Power is currently before the Nova Scotia Utility and Review Board with an application for higher electricity rates. The current application is driven by higher costs of import coal compounded by a weak Canadian
dollar. Mr. Smith noted that today's announcement adds new cost pressures to 2002. "We are already facing significant cost pressures as a result of high import fuel costs and the weakened Canadian dollar. The suddenness of this significant new increase in taxes exacerbates an already tough financial year."

Under new provincial law announced today, beginning in the fiscal year 2002-2003, Nova Scotia Power will pay $26.4 million in property taxes to be distributed among the province's 55 municipalities. The new costs represent two elements: $14.7 million based on assessed value of the power company's land and buildings and $11.7 million based on 1.3% of gross electric revenue. Under the previous tax model Nova Scotia Power was expected to pay $15.7 million in property taxes during 2002. The new tax increase takes effect April 1, 2002.

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 incorporates Emera's business development activities, and manages its growing gas infrastructure investment portfolio, including Emera Fuels, which delivers bunker oil, diesel fuel and light fuel oil throughout the Maritimes; a 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.