Nov. 18, 2010 (Canada NewsWire Group) --
HALIFAX, Nov. 18 /CNW/ - (EMA - TSX): 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.
Chris Huskilson, President and CEO, Emera Inc. and Ed Martin, President and CEO, Nalcor Energy, made the announcement today. They were joined by Premier Danny Williams of Newfoundland and Labrador and Premier Darrell Dexter Nova Scotia.
"This is an historic agreement for our region and potentially transformational for our company," said Mr. Huskilson. "It results in a stronger regional system that is consistent with Emera and Nova Scotia Power's focus on cleaner, affordable electricity."
"This is an extremely exciting and proud day for our province as we move forward with plans to develop the Lower Churchill project; the most attractive clean, renewable energy project in North America," said Premier Williams. "The benefits of this project for our province will be enormous including thousands of jobs and billions of dollars of economic activity. This agreement solidifies a mutually beneficial partnership with Emera Inc. and our neighbour, the province of Nova Scotia."
"This is an historic day for Nova Scotia, and all of Atlantic Canada," said Premier Darrell Dexter. "Through this partnership, Nova Scotia is taking a major step forward as an international leader in renewable energy.
"Today's agreement will create thousands of new jobs; it will stabilize energy prices for Nova Scotia families and businesses well into the future; and it lifts the idea of Atlantic cooperation off the page and turns it into fundamental action, building a more prosperous nation."
"We're very pleased with the outcome," said Martin. "Both companies entered talks with a win-win mindset and we reached an agreement which not only works for both companies but for both provinces and indeed, Atlantic Canada."
Under the term sheet, 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% owned by Nalcor and 29% 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% of the energy from Muskrat Falls for 35 years. This subsea transmission (the Maritime Link) will be 100% owned by Nova Scotia Power.
The total investment by all parties into the project would be $6.2 billion (Cdn). Nalcor would invest $2.9 billion for the Muskat Falls generation facility. The transmission link from Labrador to the island of Newfoundland will cost $2.1 billion and Emera is investing approximately $600 million. The Maritime Link connecting the island of Newfoundland to Nova Scotia is expected to cost $1.2 billion which will be funded 100% 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.
Cautionary Statement Regarding Forward-Looking Information:
This press release contains forward-looking information and forward-looking statements which reflect the current view of Emera with respect to the Company's objectives, plans, financial and operating performance, business prospects and opportunities. Wherever used, the words "may", "will", "anticipate", "intend", "expect", "estimate", "plan", "contemplate" and similar expressions identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. Emera disclaims any intention or obligation to update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Emera will be hosting a teleconference at 4:30 pm Atlantic time today (5:00 pm Newfoundland; 3:30 pm Toronto/Montreal/New York; 2:30 pm Winnipeg; 12:30 pm Vancouver) to discuss this announcement.
Analysts and other interested parties wanting to participate in the call should dial 1-866-225-0198 (in Toronto 416-340-8061) 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 905-694-9451), access code 1261405# (available until midnight, Tuesday, December 2, 2010). The teleconference will also be web cast live at www.emera.com and available for playback for one year.
Emera Inc. (EMA and EMA.PR.A -TSX) is an energy and services company with $5.8 billion in assets. Electricity is Emera's core business. Approximately 94% of Emera's revenues are earned by Nova Scotia Power Inc (NSPI), Bangor Hydro Electric Company (BHE) and the Brunswick Pipeline. NSPI and BHE are wholly-owned regulated electric utilities which together serve 603,000 customers. The Brunswick Pipeline is a 145 km gas pipeline in New Brunswick. Emera also owns 38% of Barbados Light and Power which serves 120,000 customers on the Caribbean island of Barbados, 19% of St. Lucia Electricity Services Limited, which serves more than 50,000 customers on the Caribbean island of St. Lucia and 25% of Grand Bahama Power Company which serves 19,000 customers on the Caribbean island of Grand Bahama. In addition to its electric utility investments, Emera owns Bayside Power, a 260 MW gas-fired power plant in Saint John, New Brunswick; Emera Energy Services, a physical natural gas and power marketing and asset management business; a joint venture interest in Bear Swamp, a 600 megawatt pumped storage hydro-electric facility in northern Massachusetts; a 12.9% interest in the Maritimes & Northeast Pipeline; and an 8.2% interest in Open Hydro. Visit Emera on the web at www.emera.com
About Nalcor Energy
Nalcor Energy's business includes the development, generation, transmission and sale of electricity; the exploration, development, production and sale of oil and gas; industrial fabrication; and energy marketing. Focused on sustainable growth, the company is leading the development of the province's energy resources and has a corporate-wide framework which facilitates the prudent management of its assets while continuing an unwavering focus on the safety of its workers and the public. Nalcor currently has five lines of business: Newfoundland and Labrador Hydro, Churchill Falls, Oil and Gas, Lower Churchill Project, and Bull Arm Fabrication. The company is currently a working interest partner in three offshore developments - the Hebron oil field, the White Rose Growth Project and the Hibernia Southern Extension. Nalcor Energy Oil and Gas also has an average of 67 per cent gross working interest in three onshore exploration permits in the Parsons Pond area, on the Island's West Coast.
Emera - Investor Relations:
Jennifer Nicholson, CA
Senior Director, Stakeholder Relations
Emera - Media Relations:
Director, Corporation Communications
Nalcor Media Relations:
Senior Communications Advisor
Lower Churchill Project, Nalcor Energy
Manager, Corporate Communications