Emera to invest in enhanced Atlantic Canada electricity system

Halifax, November 18, 2010 — Emera and Nalcor Energy have concluded agreement on a term sheet for the parties to bring energy from the Lower Churchill Project to Newfoundland and Labrador as well as to consumers in the Maritime provinces and New England.

Nalcor will build generating facilities at Muskrat Falls. Emera and Nalcor will jointly develop transmission in Newfoundland and Labrador to enable the movement of Lower Churchill energy through a joint venture that is 71 percent owned by Nalcor and 29 percent by Emera which will establish a new, regulated transmission utility in Newfoundland and Labrador.

Nova Scotia Power will develop agreements with Nalcor to build subsea transmission between Newfoundland and Nova Scotia in return for 20 percent of the energy from Muskrat Falls for 35 years. This subsea transmission (the Maritime Link) will be 100 percent owned by Nova Scotia Power.

The total investment by all parties into the project would be $6 billion. Nalcor would invest $2 billion for the Muskat Falls generation facility.

The transmission link from Labrador to the island of Newfoundland will cost $2 billion and Emera is investing about $598 million. The Maritime Link connecting the island of Newfoundland to Nova Scotia is expected to cost $1 billion which will be funded 100 percent by Emera.

Agreements resulting from this term sheet are subject to a number of conditions including final approval of the Boards of Directors of Emera and Nalcor Energy and by regulators in the provinces of Nova Scotia and Newfoundland & Labrador.

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