Emera Inc. and Nalcor Energy Finalize Agreements for the Development of Muskrat Falls
ST. JOHN’S, Newfoundland--(BUSINESS WIRE)--Jul. 31, 2012-- Today Emera Inc. and Nalcor Energy, along with the Governments of Nova Scotia and Newfoundland & Labrador completed and signed formal agreements for the development and transmission of hydroelectric power from Muskrat Falls. These agreements reflect the core principles established in the Term Sheet announced in November of 2010.
The agreements were signed in St. John’s today by Chris Huskilson, President and CEO, Emera Inc., Ed Martin, President and CEO of Nalcor Energy, the Honorable Minister Jerome Kennedy, Minister of Natural Resources, Newfoundland and Labrador, and the Honourable Charlie Parker, Nova Scotia’s Minister of Energy.
The ratification of these agreements will set the stage for legislative and regulatory approvals in both provinces, as well as final approval by Emera Inc.’s board of directors.
“Emera is fully engaged in helping transform Atlantic Canada into an energy powerhouse with an electricity system that is more robust, flexible and better connected,” stated Chris Huskilson, President and CEO, Emera Inc. “Today’s announcement sets the stage for the development of a new source and route for clean, renewable and reliable energy that will help stabilize energy costs, improve the environment and provide economic benefits for the entire region.”
This regional energy initiative has also received the support of the Federal government through a memorandum of agreement on a federal loan guarantee which will reduce the cost of financing these projects and lower the costs to Nova Scotia ratepayers.
"By developing Lower Churchill and connecting it to wider markets, we are creating good jobs, growing the Atlantic economy and ensuring a cleaner energy future for ourselves, our children and grandchildren," said Nova Scotia Minister of Energy Charlie Parker. "This development is an important component in ensuring Nova Scotia meets federal coal reduction regulations, as well as our province's greenhouse gas emission targets. Perhaps most importantly though, it will help stabilize electricity rates for Nova Scotians and their families. This is indeed a game-changing opportunity for the Atlantic region, and part of the approach that makes Canada an energy superpower."
Emera and Nalcor formalized 13 agreements spanning 50 years related to the development of Muskrat Falls, the Labrador-Island Transmission Link and Maritime Link.
The purpose of the agreements is to formalize the transactions that were previously agreed to and set out in the Term Sheet by the parties. Six of the agreements reflect the commitment by Emera to develop the Maritime Link electrically connecting Newfoundland and Labrador to Nova Scotia, and to provide transmission rights in Nova Scotia. Four agreements relate to transmission rights for Nalcor in the Maritimes and New England and Emera’s investment in the Labrador-Island Transmission Link, which will span from Muskrat Falls, across the Strait of Belle Isle, to Soldiers Pond on the Avalon Peninsula. Three related agreements were also completed.
Additional information about the formal agreements signed between Emera and Nalcor are available in the backgrounder (PDF).
About Emera Inc.
Emera Inc. is an energy and services company with $7.0 billion in assets and 2011 revenues of $2.1 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has interests throughout northeastern North America, in three Caribbean countries and in California. More than 80% of the company's earnings come from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A and EMA.PR.C. Additional Information can be accessed at www.emera.com, www.sedar.com, or on www.sec.gov.
Source: Emera Inc.
Communications, Emera Inc.
Nova Scotia Department of Energy