Tampa Electric Reaches Unanimous Settlement Agreement in Rate Case

Emera’s largest operating company, Tampa Electric has filed a settlement agreement for its rate request with the Florida Public Service Commission (Florida PSC). A ruling from the Florida PSC is expected later this year.

“This is a balanced agreement that supports Emera’s strategy to advance cleaner energy with important investments in grid modernization and reliability, all while never losing sight of affordability for customers,” says Scott Balfour, President and CEO of Emera Inc. “Reaching this agreement reflects the hard work of all parties in securing rate certainty through to the end of 2024 for Tampa Electric customers while positioning the utility to make continued investments in resiliency, customer solutions and a greener energy future.”

This settlement agreement is the latest of three rate case settlements at Emera’s US utilities and demonstrates the strength of Emera’s teams and strategy as well as Emera’s ability to work collaboratively with stakeholders to reach mutually beneficial outcomes. Peoples Gas and New Mexico Gas also concluded important rate cases over the past year.

Tampa Electric has been significantly reducing the carbon intensity of its generation mix with major investments in solar and the Big Bend Modernization project. This settlement agreement supports these efforts and the retirement of three coal units at Big Bend, the addition of new cleaner high efficiency natural gas generation and the second 600MW of solar.

“This settlement further cements the transformation that is occurring at Tampa Electric and it represents a fair and amicable resolution to our request for increased rates,” said Archie Collins, President and CEO of Tampa Electric. “At Tampa Electric we are focused on creating value for customers – adding more clean solar energy, reducing carbon emissions and fuel costs, modernizing our infrastructure for a smarter tomorrow, improving reliability, increasing resiliency in the face of climate change, and improving customer service. This settlement delivers on that value commitment.”

If approved by the Florida PSC, the settlement will result in Tampa Electric’s rates remaining significantly below the national average and among the lowest in Florida. The proposed agreement will provide additional revenue increases over three years beginning January 1, 2022 with expected incremental increases in revenue of $191M USD in 2022, $90M USD in 2023 and $21M USD in 2024. The agreement includes a return on equity (ROE) range of 9 – 11% with 9.95% being used for rate making purposes.

Tampa Electric filed its rate request in April 2021 originally requesting approximately $423M USD in additional base rate revenue over the three years plus a separate asset recovery of $29M USD. The settlement for $302M USD in revenue increases over three years was reached among Tampa Electric and all intervening consumer parties, including the Office of Public Counsel, which represents consumers in utility issues, the Florida Industrial Power Users Group, Federal Executive Agencies, Florida Retail Federation, Walmart and the West Central Florida Hospital Utility Alliance.

About Emera

Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia, with approximately $31 billion in assets and 2020 revenues of more than $5.5 billion. The company primarily invests in regulated electricity generation and electricity and gas transmission and distribution with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments in Canada, the United States and in four Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F, EMA.PR.H and EMA.PR.J. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional information can be accessed at www.emera.com or at www.sedar.com.

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Emera Inc. Investor Relations Dave Bezanson, VP, Investor Relations & Pensions 902-474-2126 [e-mail] Jennifer Parker 902-222-3601 [e-mail]