HALIFAX, Sept. 16 /CNW/ - (EMA-TSX): Emera Inc. announced today that it
has purchased 25% of the Grand Bahama Power Company Limited (GBPC) for US
$41million through its acquisition of 50% of the shares of ICD Utilities
Limited of the Bahamas. GBPC is located on Grand Bahama Island - the second
most populous island in The Commonwealth of The Bahamas approximately
85 kilometres off the east coast of Florida.
"This opportunity is immediately accretive to Emera and is another
measured investment in the Caribbean region following our initial investment
in Lucelec last year. This utility has significant potential in a favorable
regulatory environment," said Chris Huskilson, President and Chief Executive
Officer of Emera Inc. "This acquisition positions Emera in the Caribbean
marketplace and we will continue to seek additional opportunities to invest in
The Grand Bahama Power Company is the only utility operator on Grand
Bahama Island serving 19,000 customers. The generation consists of one
facility with 137 MW of installed oil-fired capacity. The Grand Bahama Port
Authority Limited regulates the utility and has granted GBPC a licensed,
regulated and exclusive franchise to produce, transmit and distribute
electricity on the Island until 2054. There is a fuel pass through mechanism
and flexible tariff adjustment policies to ensure that costs are recovered and
a reasonable return is earned.
Through its investment in ICD Utilities Limited, Emera will elect
3 members to the 7 seat board of directors of GBPC. Other investors in GBPC
include Marubeni Caribbean Power Holdings Inc. which owns 55.4% and other ICD
Utilities Limited shareholders which own 19.6%.
The Bahamas has a healthy, growing economy led primarily by the offshore
banking and tourism industries. It has one of the highest income levels and
GDP per capita in the Caribbean region. The Bahamas has low inflation
reflecting its economic stability and has a track record of prudent economic
Forward Looking Information
This news release contains forward looking information. Actual future
results may differ materially. Additional financial and operational
information is filed electronically with various securities commissions in
Canada through the System for Electronic Document Analysis and Retrieval
Emera Inc. (EMA-TSX) is an energy and services company with $4.7 billion
in assets. Electricity is Emera's core business. The company has two
wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc.
and Bangor Hydro-Electric Company, which together serve 600,000 customers.
Emera also owns 19% of St. Lucia Electricity Services Limited, which serves
more than 50,000 customers on the Caribbean island of St. Lucia. In addition
to its electric utility investments, Emera has 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; a 7.4%
interest in Open Hydro and Emera Energy Services which manages energy assets
on behalf of third parties. Visit Emera on the web at www.emera.com.
For further information:
For further information: Emera: Nancy Tower, FCA, Chief Financial
Officer, (902) 428-6991; Jennifer Nicholson, CA, Director Investor Relations
and Strategic Development, (902) 428-6347