Session vi r ritcey

Energy in the Western Hemisphere; Regional, National & Global Implications Ray Ritcey, CEO, The Maritimes Energy Association Energy Interdependence in the Western Hemisphere Global Interdependence Center November 5, 2015

Atlantic Canada Insights • • • • •

Maritime Link Offshore Operations & Exploration LNG Onshore Exploration Emera purchase of TECO Energy

Maritime Link

Photo courtesy of Nova Scotia Department of Energy

Deep Water Exploration Activity

Courtesy of Nova Scotia Department of Energy

Northeast US Shale Supply – The Game Changer 19 Bcf/d

Current Actual

40 Bcf/d

2025 Avg Estimate Power Generation

City Gate & Power Generation

40

Source: Various Consultants

30

Marcellus

20

City-Gate Market Growth

10 0 2010

40

Power Generation Mexico

Marcellus Estimated Production Volume (Bcfd)

Gulf Coast LNG & Industry Courtesy of Maritimes & Northeast Pipeline

2015

2020

2025

2030

Utica Estimated Production Forecasts (Bcfd) Source: Various Consultants

30 20 10

0 2010

Utica 2015

2020

2025

2030

Connections to North America

Courtesy of Nova Scotia Department of Energy

Shipping time to key markets Sailing Dates

7 days 17 days

27 days

5 days 21 days

13 days Photo Courtesy of Nova Scotia Department of Energy

EXPANDED GEOGRAPHIC and REGULATORY DIVERSIFICATION Pro forma regulatory snapshot

Pro forma asset map

Grand Bahama Power Company

Florida

Grand Bahama Dominican Republic

Barbados Light & Power Company, DOMLEC, Lucelec

Florida

New Mexico

Pipelines 1

Transmission lines

Power plants

Maritime Link (ML) and Labrador Island Link (LIL) are equity accounted Electric and Peoples Gas average rate base based on earnings surveillance reports filed to FPSC in December 2014. NMGC rate base as of September 30, 2014 as disclosed by TECO

Nova Scotia Power Rate base CAD$3.7bn Allowed ROE 8.75% – 9.25% Equity capitalization 37.5 – 40.0% Emera Maine (Transmission / Distribution) Rate base CAD$400mm / CAD$300mm Allowed ROE 10.57% – 11.74% / 9.55% Equity capitalization 62.0% / 49.0% Emera Caribbean Rate Base CAD$0.9bn Allowed Return on Rate Base 10.0% –15.0% Emera Newfoundland /Labrador Transmission (estimated 2017)1 Rate Base ~CAD$2.0bn Allowed ROE 9.0% (ML) / 8.8% (LIL) Equity capitalization 30.0% (ML) / 100.0% (LIL) Tampa Electric Rate base ~USD$4.8bn2 Allowed ROE 9.25% – 11.25% Equity capitalization 54.0% Peoples Gas Rate base USD$715mm2 Allowed ROE 9.75% – 11.75% Equity capitalization 54.7% New Mexico Gas Rate base USD$517mm2 Allowed ROE 10.0% Equity capitalization 52.0%

Pro Forma 2,400,000 customers

2 Tampa

Courtesy of Emera

Where to From Here • Direction from newly elected Federal Government  Economy  Energy – opening up markets; environment (carbon); First Nations

• Success of Shell and BP offshore exploration programs; • Success of LNG projects; • For now, there appears to be limited onshore petroleum development opportunities in New Brunswick and Nova Scotia.