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.
Teleconference Call
Emera will be hosting a teleconference at 4:30 pm Atlantic time today
(5:00 pmNewfoundland; 3:30 pmToronto/Montreal/New York; 2:30 pmWinnipeg; 12:30 pmVancouver) 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.
About Emera
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.
Contact:
Emera - Investor Relations:
Jennifer Nicholson, CA
Senior Director, Stakeholder Relations
(902) 428-6347
Emera - Media Relations:
Sasha Irving
Director, Corporation Communications
(902) 428-6685
Nalcor Media Relations:
Leona Barrington
Senior Communications Advisor
Lower Churchill Project, Nalcor Energy
(709) 737-1837
Dawn Dalley
Manager, Corporate Communications
Nalcor Energy
(709) 737-1315