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High Fuel Costs Impact Emera Q3 Earnings – November 4, 2005

HALIFAX, Nova Scotia, November 4, 2005, (EMA-TSX): Emera Inc.’s consolidated net earnings were $15.9 million in Q3, 2005, down from $22.1 million in Q3, 2004. The earnings decrease reflects substantially lower earnings at Emera’s largest subsidiary, Nova Scotia Power Inc. (NSPI), which earned $2.7 million in the quarter, compared to $18.5 million in Q3, 2004.

Emera’s earnings per share were $0.14 in Q3, 2005, compared to $0.20 in Q3, 2004.
“Nova Scotia Power continues to be affected by substantially higher fuel costs that are not currently covered by rates,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “Our 2006 rate application, now before the Nova Scotia Utility and Review Board, addresses this issue and we look forward to the hearings that begin November 14.” NSPI’s fuel costs were $28.7 million, or 41% higher in Q3 2005 than for the same period in 2004; and $78.2 million higher year to date, largely due to higher coal and oil prices.

Emera's Other operations contributed $8.8 million to Q3, 2005 consolidated net earnings, compared to a loss of $1.2 million in Q3, 2004. Foreign exchange gains and higher energy marketing margins were key drivers of the higher earnings.

Bangor Hydro Electric (BHE), Emera’s electricity transmission and distribution utility in Maine, contributed $4.4 million to consolidated net earnings in Q3, 2005, compared to $4.8 million in Q3, 2004, reflecting a stronger Canadian dollar. BHE’s U.S. dollar earnings were unchanged quarter over quarter at $3.6 million.
Consolidated cash provided by operating activities was $116.7 million in Q3, 2005, compared to $93.8 million in Q3, 2004.

About Emera Inc.

Emera Inc. (EMA-TSX) is an energy and services company with 570,000 customers and $4.0 billion in assets. The core business of Emera is electricity and 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. Nova Scotia Power's Point Tupper and Lingan generating facilities have been ranked #1 and #2 in Canada in operating performance by The Canadian Electricity Association. 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. Emera also owns a 12.9% interest in the Maritimes & Northeast Pipeline; Emera Energy Services which manages energy assets on behalf of third parties and provides related services; and Emera Fuels, which distributes home heating oil and related products to customers in the Maritime provinces.

Teleconference Call

Emera is holding a teleconference today at 3:00 pm Atlantic (2:00 pm Toronto/Montreal/New York; 1:00 pm Winnipeg; 11:00 am Vancouver) to discuss the Q3, 2005 financial results. Analysts and other interested parties wanting to participate in the call should dial 1-866-898-9626 (in Toronto 416-340-2216) at least 10 minutes prior to the start of the call. No pass code is required. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback toll-free at 1-800-408-3053 (in Toronto 416-695-5800), access code 3165099# (available until midnight, Friday, November 11, 2005). The teleconference will also be web cast live at www.emera.com and available for playback for one year.

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).