Emera Reports Q3 2008 Earnings

HALIFAX, Nov. 7 /CNW/ - (EMA-TSX): Emera Inc.'s consolidated net earnings were $6.5 million in Q3 2008, compared to $40.9 million for the same period in 2007. Earnings per share were $0.05 in the quarter compared to $0.37 in 2007. Two significant accounting adjustments negatively impacted earnings in the quarter. Excluding these accounting adjustments, earnings per share would have been $0.22. Mark-to-market accounting losses in BearSwamp reduced earnings per share by $0.07 in the quarter. As well, the valuation of a long-term receivable in Nova Scotia Power decreased in the quarter causing a further $0.10 reduction in earnings per share.

Year-to-date earnings were $118.8 million for the first three quarters of 2008 compared to $114.7 million for the same period in 2007. Earnings per share were $1.06 for the nine months ended September 30, 2008, compared to $1.03 for the same period in 2007, inclusive of mark-to-market accounting changes.

Nova Scotia Power's earnings were $2.3 million in Q3 2008, compared to $25 million in Q3 2007. As expected, fuel costs in NSPI increased significantly in the quarter due to higher commodity costs. Two additional factors contributed to the quarter over quarter change in NSPI. The decreased valuation of a long-term receivable reduced earnings by $10.8 million in the quarter. Excluding the effect of the long-term receivable, NSPI's earnings would have been $13.1 million in the quarter. As well, earnings were also higher in 2007 due to a $10.8 million tax recovery in the third quarter last year. NSPI's outlook for the full year 2008 is to earn within its allowed range of rate of return.

"Despite expected weaker financial results in the quarter, we are pleased with our progress so far this year," said Chris Huskilson, President and CEO of Emera. "Brunswick Pipeline construction is nearing completion, we acquired 25% of the Grand Bahama Power Company and NSPI's 2009 rate settlement was approved. In light of this progress in our businesses, the Board of Directors announced a 6% increase in our dividend on October 20th."

Bangor Hydro-Electric contributed $6.5 million to consolidated net earnings in Q3 2008, compared to $9.1 million in Q3 2007. This decrease relates primarily to the capitalization of costs in 2007 related to construction of the Northeast Reliability Interconnect transmission line.

Emera's Other operations had a net loss of $2.3 million in Q3 2008, compared to a contribution of $6.8 million in Q3 2007. This decrease relates to mark-to-market accounting changes in BearSwamp offset by lower income taxes.

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).

Teleconference Call

The company will be hosting a teleconference at 4:00 pm Atlantic time today (3:00 pmToronto/Montreal/New York; 2:00 pmWinnipeg; 12:00 pmVancouver) to discuss the Q3 2008 financial results.

Analysts and other interested parties wanting to participate in the call should dial 1-888-575-8232 (in Toronto 416-406-6419) 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 3271434# (available until midnight, Friday, November 21, 2008). The teleconference will also be webcast live at www.emera.com and available for playback for one year.

About Emera

Emera Inc. (EMA-TSX) is an energy and services company with $4.8 billion in assets. Electricity is Emera's core business. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company, which together serve 600,000 customers. Emera also owns 19% of St. Lucia Electricity Services Limited, which serves more than 50,000 customers on the Caribbean island of St. Lucia. In addition to its electric utility investments, Emera has a joint venture interest in BearSwamp, a 600 megawatt pumped storage hydro-electric facility in northern Massachusetts; a 12.9% interest in the Maritimes & Northeast Pipeline; a 7.4% interest in Open Hydro and Emera Energy Services which manages energy assets on behalf of third parties. Visit Emera on the web at www.emera.com.

For more information contact:

NancyTower, Chief Financial Officer, (902) 428-6991

Jennifer Nicholson, Director Investor Relations and Corporate Strategy, (902) 428-6347