Q3 2025 Emera Inc Earnings Call

November 7, 2025

Good morning, ladies and gentlemen, and welcome to the Amira. Third quarter 2025 earnings conference call at this time online. So now listen, only mode. Following the presentation, we will conduct a question and answer session.

Good morning, ladies and gentlemen, and welcome to the Amira. Third quarter 2025 earnings conference call. At this time, all lines are going to listen. Only mode following the presentation, we will conduct a question and answer session. If at any time during this call, you need assistance. Please press star zero for the operator.

If at any time during this call, you need assistance. Please press star zero for the operator.

This call is being recorded on Friday. November, 7th, 2025, I would now like to turn the conference over to date for venson. Please go ahead.

This call is being recorded on Friday. November, 7th, 2025, I would now like to turn the conference over to Dave present. Please go ahead.

Thank you, Joanna, and thank you all for joining us this morning. For Amira's, third quarter, 2025 conference call on live webcast.

amir's third quarter earnings release was distributed this morning by a newswire and the financial statements Management's discussion and Analysis, and the presentation being referenced on this call are available on our website at amira.com

Thank you Joanna and thank you all for joining us this morning for Air's third quarter 2025 conference call on live webcast amir's third quarter earnings release was distributed this morning by a newswire and the financial statements Management's discussion and Analysis and the presentation being referenced on this call are available on our website at amira.com

Joining me for this morning's, call are Scott Belfor amir's president and chief executive officer, Greg blondon, amir's Chief Financial Officer and other members of the maze management team.

Before we begin, I'd like to advise you that the morning's discussion will include forward-looking information which is subject to the cautionary statement. Contained in the supporting slide,

Today's discussion and presentation will also include reference to non-gaap financial measures. You should refer to the appendix for a Reconciliation of historical non-gaap measures for the closest Gap Financial measure. And now, I will turn things over to Scott.

Thank you, Dave. And good morning everyone.

today's discussion and presentation will also include reference to non-gaap financial measures. You should refer to the appendix for reconciliation of historical, non-gaap measures to the closest gaap Financial measure. And now, I will turn things over to Scott.

Thank you, Dave. And good morning everyone.

Air enters these last months of 2025 with solid momentum.

Mirror enters, these last months of 2025 with solid momentum.

Our third quarter marked. Our fifth consecutive quarter of strong adjusted earnings growth, which has been underpinned by discipline execution, and customer focused Investments and reflects both the strength of our strategy and the quality of our portfolio.

With a record 3.6 billion dollars in capital investment this year. And a newly extended 7 to 8% rate based growth profile.

And a 20 billion dollar Capital plan through 2030. We're confident in our ability to continue to deliver sustainable value for customers and shareholders alike.

This morning, we reported third quarter adjusted, earnings per share of 88 cents. A nearly 9% increase over the same period in 2024.

This morning, we reported third quarter adjusted, earnings per share of 88 cents.

A nearly 9% increase over the same period in 2024.

Year to date, adjusted earnings per share of $2.94 represents a 40% increase over the same period in 2024.

Year to date adjusted earnings per share of 2.94 represents a 14% increase over the same period in 2024.

Improved a 1% dividend increase our 19th consecutive year of annual increases.

Of year of annual increases.

This continued growth in our dividend, reflects our confidence, in the strength of our premium asset portfolio, and our ability to deliver consistent earnings and cash flow growth.

We remain focused on delivering value to all stakeholders, and we're delivering.

we remain focused on delivering value to all stakeholders and we're delivering

we're on track to deliver our largest annual Capital spend of 3.6 billion dollars in 2025 with more than 2.6 billion already deployed across key projects including solar and reliability investments. In Tampa, Electric energy storage and transmission upgrades and Nova Scotia and gas infrastructure at people's gas and we remain on track to fully execute on our full year plan.

where on track to deliver our largest annual Capital spend of 3.6 billion dollars in 2025 with more than 2.6 billion already to cross. Keep projects including solar and reliability investments. In Tampa, Electric energy storage and transmission upgrades and Nova Scotia and gas infrastructure at people's gas and we remain on track to fully execute on our full year plan.

Looking forward our 2026 to 2030 Capital plan. Adds 20 billion dollars of essential investment across our portfolio. Enabling us to continue to deliver the reliable energy. Our customers expect

like many across the sector. We see increased demand for core investments. In reliability, resilience modernization and generation capacity, driven by key market conditions such as accelerating demand growth, changing grid, configuration, Renewables integration and of course electrification

Like many across the sector, we see increased demand for core investments in reliability, resilience, modernization, and generation capacity. This demand is driven by key market conditions such as accelerating demand growth, changing grid configuration, renewable integration, and, of course, electrification.

But simply there is no shortage of investment opportunity across our portfolio.

Our Capital plan thoughts fully maintains our 7 to 8% rate based growth trajectory. As we remain focused on pacing our capital investment in a way that best delivers value and manages cost impacts for customers while. Also delivering solid and sustainable growth for investors.

Our capital plan thoughts fully maintain our 7% to 8% rate-based growth trajectory. As we remain focused on pacing our capital investment in a way that best delivers value and manages cost impacts for customers while also delivering solid and sustainable growth for investors.

Affordability for customers is an important consideration that we must balance with the need to invest in our systems to ensure we were able to reliably deliver the energy. Our customers need

Since our acquisition of Tampa Electric in 2016, Tampa Electric's rate base has grown by more than 8% annually, driven by investments to support the delivery of essential service to our customers.

Since our acquisition of Tampa, Electric in 2016, Tampa Electric's rate based has grown by more than 8% annually.

Over the same period. Tampa Electric's Bill increases have remained below the national average.

Driven by investments to support the delivery of essential services to our customers.

Over the same period. Tampa Electric's Bill increases have remained below the national average.

Our success in managing customer cost, impacts is driven by prudent, cost management, smart Investments, and a focus on strategic initiatives that deliver value for customers.

Our success in managing customer costs and impacts is driven by prudent cost management, smart investments, and a focus on strategic initiatives that deliver value for customers.

For example, our solar investments in Florida have saved, customers more than 350 US million dollars in avoided fuel costs.

Fuel costs. And the recently filed consensus General rate application. Proposes an additional 700 million of securitization related to a portion of Nova Scotia Powers thermal generation assets.

These steps are helping to minimize near-term customer cost impacts and demonstrate the thoughtful approach. We continue to take in managing rates for customers.

Florida continues to be a powerful engine of growth with robust population and economic expansion, driving increased demand for electricity and natural gas.

In The Last 5 Years, Florida has experienced nearly 38% GDP growth and in 2024, it was the number 1 state for net migration and experience the second highest population growth in the country.

To support that growth more than 80% of our Capital plan will be deployed here.

The influx of new customers is translated into increased demand for both electricity and natural gas across both residential and Commercial sectors.

At Tampa Electric's.

Capacity needs grow as a result of Economic Development or 2026 to 2030 Capital plan includes approximately, 1.2 billion dollars of transmission expansion and capacity, improvements. Averaging, approximately 240 million dollars of investment per year.

It's in addition to the more than $2 billion of anticipated ongoing spending on solar and complementary energy storage projects, which will result in 2,100 megawatts of solar to be in service by the end of 2028.

At people's gas, our investments will be targeted at bringing new customers online. As we see continued growth in natural gas demand.

In addition, our investments will continue to focus on hardening the system and increasing reliability for customers.

As a direct result of the growth, we continue to see in Florida. We expect great based growth from our local utilities to outpace the average of our Consolidated plan.

With these investments driving at an 8% to 9% rate, based growth through 2030.

And with the recently approved settlement of people's gas. And last year's Tampa, Electric rate case, both of which includes subsequent year adjustments. We are pleased to have regulatory Clarity and support our investment in rate base over the next 3 years.

I'd like to acknowledge that. A capital plan of this size is not just numbers on a page.

That requires a team of dedicated professionals to execute on.

I'm very proud of our teams across all our companies that year, after year developed thoughtful plans,

To take our customers current and future needs and government regulations and policies into consideration. Anticipate what it'll take to execute and then go out and deliver on these plans safely and efficiently.

We made meaningful regulatory process in 2025.

The Florida Public Service Commission approved, the people's gas settlement with 67 us million dollars of new rates to go into effect in 2026 and subsequent year adjustments of 25 million US Dollars and 5 million US dollars in 2027 and 2028 respectively.

The settlement agreement also reflects a 15 basis point. Increase in return on Equity, bringing it to 10.3%.

This agreement helps to manage regulatory leg in the recovery of investments in important reliability and distribution expansion. Needs across the state.

Earlier this week, the fpsc formalized Tampa Electric's, 2026 base rate, increase of 88 million dollars US which was approved as part of their 2024 decisions.

in Nova Scotia, the utility filed a consensus, General rate application with the Nova Scotia energy board in September,

Requesting new rates for 2026 and 2027.

This consensus, G reflects agreement reached with all customer Representatives, following extensive engagement, and constructive collaboration with key stakeholders across the province.

The hearing has been scheduled for January 2026 and we expect a decision and new rates early next year.

The gra enables critical reliability and infrastructure Investments necessary to support the needs of Nova scotians which are reflected in our updated Capital plan.

approved as filed the settlement provides Nova Scotia Power with a path to return to earning its approved Roe in 2026 and 2027,

Finally at New Mexico Gas, the sales process is proceeding. The regulatory hearing began earlier this week and we remain confident in obtaining regulatory approval in early 2026.

Through 2030, we've maintained our 5% to 7% adjusted earnings per share growth guidance through 2027.

We plan to roll forward, our EPS guidance, on our fourth quarter, call in February of 2026.

With that, I'll turn the call over to Greg.

Thank you, Scott and all of you for joining us this morning.

Turning to our financial highlights this morning, we reported third quarter adjusted, earnings of 263 million and adjusted earnings per share of 88 cents compared to 236 million and 81 in the third quarter of 2024.

This represents a 9% increase in our Q3 earnings per share.

Year to date. We reported adjusted earnings of 878 million in adjusted earnings per share of $2.94 compared to 603 million and $2.10 per share in 2024. Representing a 40% increase in earnings per share over the same period in 2 in 2024.

The robust earnings growth of business has delivered. So far, has translated into a 23% increase in operating cash flow compared to the same period last year when normalized for fuel and storm deferrals.

In addition recently, we issued 750 million US dollars in hybrids, effectively replacing. The expected proceeds from the sale of New Mexico Gas this year and de-risking our hybrid maturity in 2026.

This quarter's cash flow growth. In addition to the hybrid offering in late September has delivered and over 150 basis, point improvement in our key. Credit metrics since this time last year, bringing us to 11.9% on a trailing 12-month basis for the months, watch Moody's metric.

Turning to the drivers of our third quarter results, adjusted earnings per share, increase 7 cents to 888 cents compared to 81 cents in Q3 2024.

At Tampa Electric, new rates in 2025 reflect the level of capital we've invested on behalf of customers. Continued customer growth increased contributions by 16 cents compared to the third quarter of 2024.

Contributions from our other electric utilities modestly increased due to lower operating costs, and a slightly stronger U.S. dollar increased adjusted earnings by 1 cent during the quarter, while a higher share count decreased adjusted earnings per share by 3 cents compared to 2024.

Contributions from our Canadian Electric utilities decreased 4 cents. Compared to the third quarter of 2024 primarily driven by higher operating costs and higher depreciation expense.

Timing differences in the valuation of long-term compensation and related hedges, primarily related to a large gain recognized in 2024, drove a $0.02 increase in corporate costs compared to the third quarter of 2024.

And at a mirror energy, favorable weather conditions led to higher natural gas prices and increased volatility. Modestly increased contributions from marketing and trading were offset by lower earnings at Bear Swamp due to an outage.

And at our Gas Utilities lower contributions from New Mexico, gas and people's gas decrease or earnings by 2 cents compared to the third quarter of last year.

Year to date. Adjusted earnings per share is up 84 cents compared to the same period in 2024. Many of the drivers for the quarter are the same as for the year, but there are a few items that like to highlight

In addition to new rates of Tampa, Electric in 2025 driving, increased earnings year to date, favorable weather conditions in Florida. Contribute 7 cents year-over-year

In the evaluation of long-term compensation related Hedges and the reversal of evaluation allowance on deferred tax assets. Also drove lower corporate costs.

The weakening Canadian dollar increase the earnings contribution from a US operations by 25 million for the year contributing 9 cents year to date.

Mirror energy is here today. Performance reflects their record first quarter where cold weather in the northeastern early this year, brought higher pricing and Market. Volatility to the business, was able to capitalize on as a result. In the first quarter of this year, we adjusted a mirror energies earning guidance up to a range of 35 to 45 million US dollars.

A contributions from Canadian Electric utilities benefit from the recognition of investment tax, credits related to the ongoing energy storage projects and favorable weather in Nova Scotia. In the first quarter of 2025. This was partially offset by the sale of our Equity interest. In laboratory Island, Link in June of 2024.

Our Capital plan for 2026 to 2030 is similar in size to our previous Capital plan and that is 2 for funding plan as well. The only change in our funding plan this year, is the inclusion of the proposed asset securitization at Nova Scotia Power that Scott mentioned earlier,

the largest source of funding for our new 20 billion dollar. Capital plan will continue to be reinvested cash flows from our operations. We expect our organic cash flow generation to provide 45 to 50% of our funding needs.

And at the holding company, we expect to maintain our holding company debt at 30 to 35% of total debt.

As Scott mentioned is regulatory update, a final decision on the sale of New Mexico. Gas is, is expected in early 2026 and we remain confident in a constructive outcome.

Proceeds from the sale will be used to fund approximately 700 million US dollars of our Capital plan.

And in addition, Nova Scotia to the expected securitization of thermal assets. Will contribute an additional 700 million Canadian for our funding needs?

We can continue to expect as access access access Equity markets, or drip, and ATM programs for up to 10% of our funding needs supporting the strong profile of organic growth reflected in our 20 billion dollar Capital plan.

On average, this represents approximately 400 million dollars of equity annually.

And we believe hybrid Capital has an important role to play in meeting our funding requirements and are pleased with the competitive rates. We accessed in the hybrid Market. A few weeks ago, the 50/50 debt Equity treatment, by rating agencies, makes them an attractive tools that we will strategically access to fund up to 5% of our funding plan.

And with that, I'll turn it back over to Scott.

Thanks Greg. Before I move into my closing remarks. I want to take a moment to acknowledge that. After nearly 10 years, this will be Greg's last earnings call as CFO.

On behalf of all of us at Amir. I'd like to thank Greg for his significant contributions over the last decade.

Over tenure Greg helped the company to navigate a challenging macro environment.

Unexpected headwinds driven by policy changes and helped to absorb our transformative acquisition of Tico.

Thanks to Greg's leadership. Today, are is on solid Financial footing and well positioned to execute on the organic growth. We see ahead.

And importantly, I'm pleased that Greg will continue to be part of the team in his new role of executive by President Finance for our us, utilities supporting our largest and fastest growing businesses.

We also look forward to welcoming your green to numeric team as our CFO as of December 1st. Greg will of course work closely with him to ensure a smooth and seamless transition of Finance responsibilities as Jared steps in to his new leadership role at the mirror.

More broadly for everyone in our industry. This is a critical time to invest in meeting growing demand, while strengthening resilience and improving efficiency, and of course, being focused on affordability for customers.

A mirror will continue to build on our strong momentum. Executing our customer focused 20 billion Capital plan at a pace that best manages cost impact for customers with a strong Foundation, premium portfolio of assets and expert teams. We will continue to deliver value for customers and shareholders. Like, and Achieve our targeted adjusted per earnings per share growth.

This concludes our formal presentation and we now open the call for questions from our analysts.

Thank you.

Ladies and gentlemen, we welcome.

Question please. Press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2 and if you are using a speaker-phone, please lift the handset, before pressing any keys.

The first question comes from Rob, hope at Scotia Bank. Please go ahead.

Uh, good morning, everyone. And, uh, Greg, all the best. Uh, thanks for all the years.

Thanks Rob.

Um okay, maybe just take a look at the Capitol forecast. So if we compare the capital forecasts that you put forward today versus your prior 1, there seems to be a little bit of a, a different shape, uh, specifically a little bit less Capital here in the next couple of years. Uh, looks like across the board and maybe a little bit more in in to that 292030 time frame. Can you maybe speak to kind of how

Uh you know, some of the capital has been shifted as well, as kind of what the key drivers are there.

Yeah. Uh, Robert's Greg, um, I I think there's a couple of things. Um, 1 of the things that you may notice is that some of the um planned Capital at Temple electric for the 206 and 27 period. Some of that has been accelerated into 2025 uh, in particular around some of our solar Investments and getting front of uh, some of the uncertainty that we see from policy perspective, a couple of years out, uh, and secondly, as part of the rates, uh, settlement of people's gas, um, there was an agreement with interveners that some of the capital we had planned to spend, um, it would be better to profile that out over a little bit longer period of time. So so that would be an example of a couple of things.

How do you think about your credit metrics as being a governor, or maybe to assess a different way? Are you seeing potential upside to the forecasts? And would you be willing to go there? If it did require some incremental equity.

Um, I, I think, as Scott said, uh, Rob, there's, there's no shortage of opportunities, um, to deploy capital in our business. I, I think it's a question of pace. And, you know, when we look at that, you know, we look through all lenses, um, in terms of the ability to execute, um, you know, the lead times on certain equipment, uh, the impact on customer rates and whether there's any kind of regulatory lag associated with large capital projects and of course, funding and credit metrics with part of that as well. But um, you know, like I think many um, companies in our sector. Um, you know, we're not going to shy away from issuing Equity, we need to, to fund a creative capital projects in our businesses.

That's great. Thank you.

You're welcome.

Thank you. Next question, comes from John mold at TD Cowen. Please go ahead.

Hi uh uh morning everybody and uh first uh best wishes to Greg uh on the next step on. Uh thanks very much for all your assistance.

Um I'd like to uh just start appreciating its early days here but um I started with win West, it continues to be topical across um political uh levels uh came up.

In the federal budget. Um, I appreciate any involvement by yourselves would be on the transmission side. But wondering what conversations have you been a part of on?

This initiative, how are you thinking about potential scale and, and timing? And, um, you know, maybe just higher level comments on, uh, the broader opportunity for Ameri that could come from this, this, this push on, on projects of of national importance.

Yeah, John thanks. Thanks for the question. And may may get, um, you know, Peter to to uh, add on to to prospective you here for me here. So first of all, you know, obviously it's still it's still very early days on on all of these projects of of, of national interests that are all, you know, various stages of of of planning activity. Some, you know, as you know the SMR program in Ontario is already under construction. Um, you know, and I I think from a, from a broad perspective from from, from a mirrors perspective. Uh, you know, we're we're we're here. We're interested in in seeing how this um how this progresses. We're cheering. The premiere on certainly for his bold Vision as it relates to the wind.

Initiative and pleased that the federal government seems to have been uh, captured uh, with the with that uh uh vision and uh and enthusiasm. But of course it is still uh, very uh, early days will be um looking to support the, the premier's uh, initiative in in any way that we can your right. You know, we would not naturally look to be participating in offshore wind development. That's uh, that's not our game. But if we can be assisting those developers with, uh, subsection into Mainland Nova Scotia. If we can be assisting in participating in the uh transmission, uh, build, requiring to bring that energy to broader markets Beyond, uh, Nova Scotia, of course, you know, we're interested to be doing that. We'll be paying attention, of course to the budget implementation act, which is expected in the coming weeks that will increasingly, uh, provide, uh, provide more clarity. Uh, we will support, uh, the um, um, uh, the office of

Of the, um, that is, that is, uh, organizing these projects of national interest led by Don Farrell, uh, in, in any way we can. So at this point, you know, we're we're early days. We're trying to be helpful to the parties that, uh, that are there. And there's, you know, still a lot of questions to to answer uh, as to uh, as to where this project sits and its timing. But uh uh overall that you know, I think it's a I think it's exciting to see that the you know, focus of the federal government and many Premier is on.

Uh, enhancing and building, uh National infrastructure, uh, in Canada. And um and we'll be pleased to to play any part in that that we can Peter. Anything you want to sort of add a little more Nova Scotia perspective within that.

Region is something we should look at. I think it's good for Nova Scotia and I think it's good for Atlantic Canada. So you know, we'll continue to stay close to the conversation and uh see what happens.

Okay. Great thanks. Thanks for all that detail. And then um just going back to the capital plan and the generation aspect in Florida. Um you know you commented earlier about the magnitude of customer savings uh that have solar investments in Florida have have brought through what if you will costs.

Curious, as you work through your Capital plan, how did all the moving pieces with the federal tax credits? And some of the fiac, uh, concerns uh, or uncertainty uh, you know, affect where you landed in terms of the timing of of generation spend? Uh, and whether um, you know, there's potential for further customer saving Investments there, if you do get, you know, further Clarity on some some pieces of of that puzzle.

Yeah, John. It's it's Greg. Um, yeah. The fuel savings and that Scott referred to obviously is is related to the um the build of the solar in our service territory that is obviously economic for customers and part of that is the, you know, availability of tax credits. And and, you know, if you go back to my comments and response to Rob, that's 1 of the reasons why we've accelerated, some of the otherwise plan solar Investments for the next couple of

Years, um, is to advance uh, those projects uh, realize the savings for customers earlier. Um, and also just get in front of what could be some policy on certainty in in the next couple of years. So, it hasn't changed overall plans, but on solar in particular, um, a little bit more, uh, sooner rather than later.

Okay.

Thank you. The next question comes from. Maurice Choy at RBC Capital markets. Please go ahead.

Thank you. And good morning, everyone. Um, can I just start with, uh,

Was kosha rate. Um case I wanted to specifically, ask about your engagement with the Nova Scotia government proceeding up to the settlement.

And even after the following with the regulator particularly, given the government's public comments about the rate impact and with that, what can be done to avoid the outcome that we saw in 2022?

Thanks Maurice. It's Peter again. Um,

I think you know obviously affordability um is on a lot of people's minds, including our our Premier, I won't speak for the premiere um but when we look at, you know, how we came to this filing and I think it's important to underline that it's a consensus filing as Scott mentioned with all of the customer rep Representatives. So we spent, you know, several months, um, working with them.

I think we found the path to balancing reliability and affordability through through this rig case and I think it's significant that it is a consensus agreement that was filed. Um, and we're on a path to that hearing in early, early January. Obviously, you would imagine there have been ongoing discussions with the provincial officials for months. Those continue. Um, we do have a productive relationship with a officials inside the government and we continue those discussions. I think it's important too, that, you know, the premier statements while he's concerned about affordability. And I understand that his statements have also been that they will, they will become interveners in the process, the regulatory process, which is normal. Um, that the government does have a lawyer that participates in that. So, um, that's our expectation. Um, we will continue to prepare for the hearing in, in January.

Maybe it's a quick follow up. Are you detecting any differences in state body language uh or engagement? Um that would void need, you know, legislative intervention

No, no. We continue to have those discussions with, uh, you know, I'd say Partners in, in government on a number of a number of files, a number of issues. Um, we'll stay close to that. But again, I think, you know, the strength of the filing in front of the, uh, the regulator because we've spent all of that time, uh, with uh, the all the customer Representatives. I think has struck that. Right? Balance between reliability.

And affordability.

That's great. And if I could just finish up with a discussion about uh credit metrics and pay out ratio. Um wasn't much mentioned here about credit metrics and I remember Greg that previously mentioned that the funding plan supports about a 50 bit Improvement, annually in your cash flow to debt metrics.

20337 the spots on what the funding plan have explained today mean for both.

Yeah, I think. Um, thanks for the question. Where is the? Yeah, nothing's changed from our view. The funding plan is is consistent with what we had before and with the um, you know, soon to be uh closing of the sale of New Mexico. And the securitization of the thermal plants um, or assets at Nova Scotia Power, uh, we we fully expect, um, to continue to have that level of improvement in our credit metrics over the next couple of years. So we're very pleased about that. Um, you know, on a trailing 12-month basis. We are at our, our downgrade threshold or our threshold with Fitch now, who has us at stable, we've got about 150 plus basis points cushion on our downgrade Threshold at S&P. They have as a stable. And as I mentioned my remark, uh, we are effectively at the 12% with Moody's as well. So, um, I'll be it, we're still on negative outlook. So all I'll say is we've accomplished what we needed to do, uh, and the path for further improvement over the next couple of years has not changed.

That's great. Thanks Greg for the many, great years and I look forward to continuing our engagement and your new role along with Jared when he arrives. Yep. Thanks for watching.

Thank you. The next question comes from. Eli Joseph at JP Morgan. Please go ahead.

Hey, good morning everyone. Just wanted to kind of start on the Strategic leadership changes. Congrats to Greg on next steps and Jared and the rest of the team just top priorities. Going forward. I think the release highlighted, a lot of the Strategic goals for the business, but just from a very high level, how should we think about this leadership? Transition? Moving forward.

Yeah, you know, and thanks for the, uh, question and, and, uh, welcome to uh, to, to are so, uh, yeah. I mean, this is really just about, you know, continuing to strengthen the strength of the bench as we've, you know, shared with others in the, in the past Greg and I are within months of the of the same same age and, um, uh, and looking to, you know, bring bring Jared, uh, in and, uh, just continue to strengthen the bench. We're blessed with, you know, I'm blessed with a working with a great, uh, a great team. And, um, as I say pleased that Greg can continue to contribute to, uh, to to the team and, uh, adding Jared to on just continues to bring, uh, some uh, fresh talent and fresh perspective and um, you know, position as well for the, for the future. And, you know, we've got great talent, those, you know, that are on this call and and their teams underneath them. We're as I say a blessed with a, with a team of really terrific. Uh, people, we don't, I don't use that term in the call script expert teams lately.

um,

I really believe that, um, that, uh, that we've got a deep, deep bench and strong team. I just continue to think about, you know, ensuring that succession planning in the years, uh, uh, years ahead continues to be thoughtful, uh, as we've, uh, you know, navigated in the past with a number of executives retiring and, um, and not missing a beat in keeping the momentum that we've got a strong performance, uh, through the piece. So just looking to continue to do that.

Great. And then maybe just pivoting to some of the attractive growth that's been discussed on this call in Florida. Um, so I guess, can we just talk a little bit about potential pockets of upside beyond the plan that you see whether that's in the near or longer term? Um, you know what are those look like from a mix shift, industrial, you know, possible data center opportunities, uh, you know, across your service territory.

Yeah, I think I I think Eli would, you know, would would say first of all, that I'd go back to the point that Greg made, which is, you know, there was no shortage of capital for us to to invest. We could, you know, easily put forward a capital plan that that's uh, significant more capex uh, over the next over the next couple years. But we're working really hard to balance. You know, that capital investment profile with the impact on affordability for customers and um, and at the same time to make sure that we can execute it both safely but also cost-effectively, and, you know, construction capacity and um, uh, and uh, and supply chain.

Um, to, to share now. But it continued to be encouraged by the conversations. And, you know, would like to think that we may see some opportunity to to grow, um, at the very least, to make sure that we're sustaining that, uh, 78% rate based growth for a durable time which I continue to believe, but, uh, over time, you know, we may see some some opportunity to, uh, to upside that. But if we sit today, we've continued to to believe that 78% rate based growth profile is kind of a sweet spot. Uh and um and data center growth, may help to uh support the affordability impacts on broader customers. If we can, uh, use some of that to revenue generation from data centers to mitigate cost impacts for the for the broader system. This is all part of the equation that every utility I know is is dealing with. And, uh, as we sit today, uh, as I say, that's 78% growth is homebased for us and we see that as durable for a long time.

Great. Appreciate the caller. I'll leave it there.

Thank you. The next question.

Hey, Mark Jarvy at CIBC Capital Markets. Please go ahead.

Thanks, good morning, everyone. Um, Scott, when you guys gave EPS guidance, I think you said you wanted a walk before you run and and weren't comfortable going out to sort of 5 years, as you think about rolling over guidance. Next year is the plan to stay with us through your guidance. Or would you line that up with the capital plan to 5 years?

No. I mean we have a we have a fully landed on that yet. Mark, but but I would, I would reasonably expect. We'll stick with the 3-year forecast for now.

Got it.

And then just 1 question on on Maritime link. And you know, it's depreciating asset kind of a bit of a drag on on the rate based kegger it doesn't require Capital, but what's your view on that asset? Are you wed to it? Is there a lot of strategic value when you think about potentially some of the transmission opportunities in the Atlantic provinces just sort of long-term view on that asset?

Yeah, it's a, it's a, it's a pretty strategic asset I think. I mean, it it really is just an extension of Nova Scotia Power. It's regulated by the, um, the same Regulators as, as Nova Scotia Power. All of all of that cost profile effectively. It is a, uh, in a way, a generation source for for Nova Scotia Power through import, uh, through the, through the maritime link. So it, it really is, uh, tagged with Nova Scotia Power and the only reason really it was separated into its own distinct, entity was for financing purposes.

And uh, and being able to secure the Federal Loan guarantee um the federal government was looking to ensure that uh that that asset was was physically uh, separated illegally structurally separated from, uh, from Nova Scotia Power. So, um, I'd really think of it as an extension of, uh, of know, squish power.

Would there be an opportunity to maybe do like a minority sale? If you saw some other opportunities to continue to push rate, based Investments across our portfolio,

Yeah, we've we've always got options, uh, like like that Mark, but not not something that we're uh, thinking of or pursuing at the current time.

Okay, thanks for the time.

Thank you, ladies and gentlemen, as a reminder, should you have

1. The next question comes from Ben fam at BO please. Go ahead.

Hi, good morning. Uh

I'm follow question on on the on Mark's uh Queer on EPS kegger. Um, I'm wondering from the Emir perspective when you you think about setting

that kegger is, and and that that starting a year, you you roll forward, uh,

How do you guys thinking about that in 25 as a base? Just because you had a marketing trading benefit and tamper rates going up? Like, it's, it's, it's a high starting point that it's it's tough to get a cake or it looks.

Similar to the last part of the current cake that you have right now.

Yeah I think and I think I'm sorry. Go ahead if you want, okay.

Um yeah been I I think if you think back to when we first established it there there was a couple of a I'd call a baseline assumptions that was embedded on the 5 to 7 and that was that mirror energy would earn kind of their midpoint of their uh earnings range of 15 to 30 million dollars. And it was also based off uh a consistent foreign exchange rate over the period. So, um, again, I don't want to get over our skis in terms of what we're thinking about for February, but I think it's fair to assume that, um, when we talk about, uh, going forward EPS guidance, it would be normalizing for some of those things that were a bit of a Tailwind in 2025.

Okay, that makes sense seeing from other companies as well.

Um,

Can you talk about the? I'm not sure if on Nova Scotia Power the rate based kegger, you have here, it's been quietly creeping up over the years, in a good way.

What's what's in that gray base? What's what's driving that? And I I assume you've, you know, here, you're you're normalizing for the thermal.

Synchronization, it's Apple's apples.

Yeah, we we, we are been, um, you know, the rebates Investments going forward, Nova Scotia Power are really focused on reliability Investments, um, and predominantly. Uh, if I take, even a step back transmission and distribution Investments, uh, and what I would include in that also is like battery projects, battery storage. So, uh, you know, transmission, uh, upgrades between Nova Scotia and New Brunswick, uh, strengthening the backbone of the transmission system in the province, um, you know, more vegetation management, and other distribution things, uh, all the things to support, um, the transition to an ISO in New England, and ultimately getting to our 2030. Um, renewable energy Targets in in Nova Scotia.

Okay.

Um, May it just just 1 last uh clean up question. I I know this. There's a

I think I saw a positive contribution from Block Energy, which I thought you were in there. It shut down a while back. Is that different?

now, in terms of where that business is,

We, um, no. We, we had a settlement on a contract that we had crewed, uh, last year as part of the windup and the settlement was more favorable than we would have anticipated. So, um, basically uh, just adjusting for um, an overall from 2024

Got it. Thank you.

You're welcome.

Thank you. We have no further questions. I'll turn the call back over for closing comments.

That concludes our call for today. Thank you all for joining us. Uh, please reach out to the investor relations team if you have any further questions

Have a great weekend.

Ladies and gentlemen, this is include your conference call for today. We thank you for participating and we ask that you please disconnect your links

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