Emera - Utility and Review Board Rules on Nova Scotia Power Rate Application

Utility and Review Board Rules on Nova Scotia Power Rate Application – March 31, 2005

Halifax, NS March 31, 2005 - The Nova Scotia Utility and Review Board (UARB) has rendered its decision on Nova Scotia Power Inc.'s (NSPI) Rate Application for 2005.

Key features of the UARB decision include:

full recovery of $150 million Section 21 income tax deposit over eight years, commencing in 2007.
an allowed Return on Equity of 9.3% to 9.8%
an allowed Common Equity Component of 37.5%
average 5.3% increase for most customers; 10.4% for industrial customers with annually adjusted rates.

The decision indicates an approximately $34 million increase in NSPI's annual revenue. The Company had filed a Settlement Agreement in connection with the rate application, which requested an approximately $51 million increase in annual revenue. The primary difference between the requested and approved amounts is an $18 million reduction in the allowed fuel budget. The UARB also did not accept NSPI's proposal to defer $13 million of 2005 fuel costs. The UARB expressed dissatisfaction with NSPI's fuel procurement practice, saying that the company did not act quickly enough to implement changes that had been previously directed by the UARB.

Nova Scotia Power Inc. is a wholly-owned subsidiary of Emera (TSX-EMA).