Who is Emera Maine?
Emera Maine is a regulated electric transmission and distribution company currently owned by Emera Inc. and operated as a wholly owned subsidiary. As Maine’s second-largest electric utility with approximately 400 employees, they deliver electricity to more than 159,000 residential, commercial and industrial customers across 10,400 square miles. Emera Maine’s transmission services are regulated by the Federal Energy Regulatory Commission (FERC), and distribution services are regulated by the Maine Public Utilities Commission (MPUC).
Who is Emera Inc.?
Emera Inc. is a geographically diverse, Canadian energy company headquartered in Halifax, Nova Scotia, with approximately $32 billion in assets and 2018 revenues of more than $6.5 billion. Emera Inc. primarily invests in regulated electricity generation and electricity and gas transmission and distribution, and currently has investments throughout North America and in four Caribbean countries.
Why is ENMAX acquiring Emera Maine?
Emera Maine is a complementary opportunity as ENMAX targets growth through regulated utility investments which align with our industry expertise, community values, performance expectations and risk profile. Subject to securing the requisite Maine and Federal regulatory approvals for this transaction, Emera Maine will become a wholly owned subsidiary of ENMAX and they will continue to serve and invest in Maine’s electricity needs.
What are the financial implications of this transaction for ENMAX?
The transaction is expected to be immediately accretive to ENMAX’s earnings and cash flow, and grows our regulated rate base by approximately 50% ($900 million). Our proportion of regulated and non-commodity EBITDA will increase to over 70%, providing greater earnings and cash flow stability.
ENMAX will independently debt-finance 100% of this transaction and our financing plan enables flexibility to pay down debt with free cash flow. The Shareholder, the City of Calgary, and Calgarians, will not provide any funding for this transaction, and this transaction has no impact on The City of Calgary’s finances or debt capacity.
What does this transaction mean for Calgarians?
Growing ENMAX creates greater value for our Shareholder, the City of Calgary, and by extension, all Calgarians. Since our inception in 1998, we have achieved significant growth and value creation through asset investment and acquisition, providing positive financial returns to Calgarians including paying a dividend every year since 1998.
The Shareholder, the City of Calgary, and Calgarians, will not provide any funding for this transaction, and this transaction has no impact on The City of Calgary’s finances or debt capacity. This transaction increases the proportion of regulated cash flows earned by ENMAX and will provide improved stability to fund the dividend in future.
What does this transaction mean for ENMAX customers?
ENMAX’s electricity rates are not affected by this transaction, and our commitment to Albertan customer service and community participation remain firmly in place. ENMAX’s commitment to safely and reliably serving Calgary’s electricity system needs, as well as our ongoing investment in Calgary’s transmission and distribution electricity infrastructure, continue as planned.
What does this transaction mean for ENMAX employees?
Growing ENMAX, with our headquarters remaining in Calgary, is expected to create opportunity for our valued team. No Alberta job reductions are planned as a result of this transaction.
What does this transaction mean for Emera Maine customers?
The team at Emera Maine will remain committed to safely delivering the energy that Maine customers count on every day. There are no rate impacts anticipated and Emera Maine remains under the regulation of the Maine Public Utilities Commission (MPUC) with customer rates to remain as approved and determined by the MPUC.
What does this transaction mean for Emera Maine employees?
There are no impacts contemplated at this time. As part of the agreement for this transaction, ENMAX anticipates operating Emera Maine as a standalone entity, headquartered in Maine, and retaining existing management and other human resources.
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Customers are free to purchase natural gas services or electricity services from a retailer of their choice. For a list of retailers, visit ucahelps.alberta.ca or call 310-4822 (toll free in Alberta).