Emera Incorporated (EMA) 2005年年度报告「TSX」.pdf

1、2005 annual financial report EM05_Book2_03_09_06 3/31/06 8:15 AM Page fciTo My Fellow ShareholdersIn my letter last year,I emphasized the importanceof Emera increasing the predictability of its earningsas a critical step in delivering on our investmentvalue proposition.Weve made solid progress towar

2、dthis goal,though the path has not been as direct asI would have liked.Let me tell you where we havebeen,and where we are going.2005 was a challenging year for Emera due to rate issues at our largest subsidiary,Nova Scotia Power(NSPI).Prior to 2002,NSPI had managed six years without requesting anele

3、ctricity rate increase.We asked for new rates for 2002 in the face of a sharp increase in coalprices,and again for 2005 primarily to includecorporate taxes in the rate structure.In the March2005 rate decision,the Nova Scotia Utility andReview Board(UARB)was critical of NSPIs past fuel procurement pr

4、actices,and awarded the utility substantially less for fuel than it hadrequested.As a result,in July of last year,NSPIagain filed for new rates,requesting an average15%increase for 2006,due to increasing world fuel prices.Fuel is the companys single largest expense,so anything less than full recover

5、y of this cost inrates can have a material effect on the utilitysability to earn within its allowed earnings range.It is worth noting that prior to 2000,NSPI hadpurchased all of its fuel from local suppliers underlong-term contracts.Since then,NSPI has beensourcing coal on world markets.Both natural

6、 gas and petroleum coke have been added to ourfuel mix,and we have put in place a portfolio ofcontracts for fuel commodities,transportation and currency.To help prepare for the future,weembarked on a program of testing new coal blends,and have invested in a new marine terminal.Theseefforts will both