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<SEC-DOCUMENT>0000898080-02-000013.txt : 20020413
<SEC-HEADER>0000898080-02-000013.hdr.sgml : 20020413
ACCESSION NUMBER:		0000898080-02-000013
CONFORMED SUBMISSION TYPE:	U5B
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20020110

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EMERA INC
		CENTRAL INDEX KEY:			0001127248
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				868143132
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		U5B
		SEC ACT:		1935 Act
		SEC FILE NUMBER:	030-00037
		FILM NUMBER:		2505633

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 910 CORPORATE SECY GENERAL COUNS
		CITY:			HALIFORC

	MAIL ADDRESS:	
		STREET 1:		P O BOX 910 CORPORATE SECY GENERAL COUNS
		CITY:			HALIFORC
</SEC-HEADER>
<DOCUMENT>
<TYPE>U5B
<SEQUENCE>1
<FILENAME>formu5b.txt
<DESCRIPTION>REGISTRATION STATEMENT
<TEXT>
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

- --------------------------------------------------------------------------------

                                    FORM U5B

                          JOINT REGISTRATION STATEMENT

                       Filed Pursuant to Section 5 of the

                   Public Utility Holding Company Act of 1935

- --------------------------------------------------------------------------------

                               Emera Incorporated
                             Emera US Holdings Inc.
                                BHE Holdings Inc.

                              (Name of Registrants)

- --------------------------------------------------------------------------------

                                Richard J. Smith
                     Corporate Secretary and General Counsel
                                   Emera Inc.
                                  P.O. Box 910
                              Halifax, Nova Scotia
                                 Canada B3J2 W5
                                Tel: 902-428-6520
                                Fax: 902-428-6171

     (Name, title and address of officer to whom notices and correspondence
                 concerning this statement should be addressed)

<PAGE>

Unless otherwise noted, to the extent possible, the information provided in
response to the Items and Exhibit Requirements of this Form will be as of
September 30, 2001.

                                       2
<PAGE>

                             REGISTRATION STATEMENT

     The undersigned holding companies hereby submit this registration statement
to the Securities and Exchange Commission pursuant to Section 5 of the Public
Utility Holding Act of 1935.

1.   Exact name of registrant

               Emera Incorporated
               Emera US Holdings Inc.
               BHE Holdings Inc.

2.   Address of principal executive offices

               Mailing Address:
               Emera Inc.
               P.O. Box 910
               Halifax, Nova Scotia
               Canada B3J 2W5

               Street Address:
               1894 Barrington Street
               18th Floor Barrington Tower
               Halifax, Nova Scotia
               Canada B3J 2W5

3.   Name and address of chief accounting officer

               Ronald E. Smith
               Senior Vice President and Chief Financial Officer
               Emera Inc.
               P.O. Box 910
               Halifax, Nova Scotia
               Canada B3J 2W5

4.   Furnish the following information as to the registrant and each subsidiary
     company thereof:

                                       3
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Name of Company                               Form of            Country or       Type of Business
                                              Organization       U.S. State of
                                              (using the         Organization
                                              terminology of
                                              jurisdiction)
- ------------------------------------------------------------------------------------------------------------------
<S>                                           <C>                <C>              <C>
Emera Incorporated                            Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
   Emera US Holdings Inc.                     Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
      BHE Holdings Inc.                       Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
         Bangor Hydro-Electric Company        Corporation        Maine            Electric utility and holding
                                                                                  company
- ------------------------------------------------------------------------------------------------------------------
            Maine Electric Power              Corporation        Maine            Public utility company
            Company, Inc.
- ------------------------------------------------------------------------------------------------------------------
            Bangor Var Co., Inc.              Corporation        Maine            Holding company
- ------------------------------------------------------------------------------------------------------------------
               Chester SVC Partnership        Partnership        Maine            Electric utility company
- ------------------------------------------------------------------------------------------------------------------
            Bangor Energy Resale, Inc         Corporation        Maine            Financing company
- ------------------------------------------------------------------------------------------------------------------
            CareTaker, Inc.                   Corporation        Maine            Security alarm services
- ------------------------------------------------------------------------------------------------------------------
            East Branch Improvement           Corporation        Maine            Inactive
            Company
- ------------------------------------------------------------------------------------------------------------------
               Godfrey's Falls Dam            Corporation        Maine            Inactive
               Company
- ------------------------------------------------------------------------------------------------------------------
               Sawtelle Brook Dam &           Corporation        Maine            Inactive
               Improvement Company
- ------------------------------------------------------------------------------------------------------------------
            Sebois Dam Company                Corporation        Maine            Inactive
- ------------------------------------------------------------------------------------------------------------------
            Pleasant River Gulf               Corporation        Maine            Inactive
            Improvement Company
- ------------------------------------------------------------------------------------------------------------------
            Bangor Fiber Company,             Corporation        Maine            Owns and leases fiber optic
            Inc.                                                                  communications cable
- ------------------------------------------------------------------------------------------------------------------
            Bangor Line Company               Corporation        Maine            Constructs and maintains
                                                                                  electric transmission and
                                                                                  distribution lines
- ------------------------------------------------------------------------------------------------------------------
   Nova Scotia Power Inc.                     Corporation        Canada           Electric utility company
- ------------------------------------------------------------------------------------------------------------------
   NS Power Services Ltd.                     Corporation        Canada           Inactive
- ------------------------------------------------------------------------------------------------------------------
      NSP Trigen Inc.                         Corporation        Canada           Inactive
- ------------------------------------------------------------------------------------------------------------------
   Enercom Inc.                               Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
      Emera Fuels Inc.                        Corporation        Canada           Supplies furnace and fuel oil,
                                                                                  lubricants, diesel, and gasoline
                                                                                  products
- ------------------------------------------------------------------------------------------------------------------
   Stellarton Basin Coal Gas Inc.             Corporation        Canada           Participates in joint venture to
                                                                                  explore and develop methane gas
                                                                                  reserves
- ------------------------------------------------------------------------------------------------------------------
   Strait Energy Inc.                         Corporation        Canada           Sells steam energy
- ------------------------------------------------------------------------------------------------------------------
   510845 N.B. Inc.                           Corporation        Canada           Provides electric utility
                                                                                  services
- ------------------------------------------------------------------------------------------------------------------
      Cablecom Ltd.                           Corporation        Canada           Designs, engineers, maintains,
                                                                                  and installs fiber optic and
                                                                                  wireless communication
                                                                                  applications
- ------------------------------------------------------------------------------------------------------------------
         Fibretek Inc.                        Corporation        Canada           Designs, engineers, maintains,
                                                                                  and installs fiber optic and
                                                                                  wireless communication
                                                                                  applications
- ------------------------------------------------------------------------------------------------------------------
   NSP Pipeline Management Ltd.               Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------

                                       4
<PAGE>

      Martimes and Northeast Pipeline         Corporation        Canada           Operates natural gas pipeline
      Management Ltd.*
- ------------------------------------------------------------------------------------------------------------------
   NSP Pipeline Inc.                          Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
      Martimes and Northeast Pipeline         Limited            Canada           Owns natural gas pipeline
      Limited Partnership*                    Partnership
- ------------------------------------------------------------------------------------------------------------------
   NSP US Holdings Inc.                       Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
      NSP Investments Inc.                    Corporation        Delaware         Inactive
- ------------------------------------------------------------------------------------------------------------------
         Scotia Holdings Inc.                 Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
            Nova Power Holdings Inc.          Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
               Scotia Power U.S. Ltd.         Corporation        Delaware         Holding company
- ------------------------------------------------------------------------------------------------------------------
                  Maritimes and               Limited            Delaware         Owns natural gas pipeline
                  Northeast Pipeline          Liability Company
                  L.L.C.*
- ------------------------------------------------------------------------------------------------------------------
   1447585 Ontario Ltd.                       Corporation        Canada           Inactive
- ------------------------------------------------------------------------------------------------------------------
   3054167 Nova Scotia Ltd.                   Corporation        Canada           Inactive
- ------------------------------------------------------------------------------------------------------------------
   Emera Energy Inc.                          Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
      30566567 Nova Scotia Ltd.               Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
         3056568 Nova Scotia Ltd.             Corporation        Canada           Holding company
- ------------------------------------------------------------------------------------------------------------------
            Emera Offshore Inc.               Corporation        Canada           Holds assets related to offshore
                                                                                  natural gas production
- ------------------------------------------------------------------------------------------------------------------
      Emera Energy U.S. Subsidiary No. 1,     Corporation        Delaware         Holding company
      Inc.
- ------------------------------------------------------------------------------------------------------------------
         Emera Energy U.S. Subsidiary No. 2,  Corporation        Delaware         Holding company
         Inc.
- ------------------------------------------------------------------------------------------------------------------
            Greyhawk Gas Storage              Limited            Delaware         Designs, develops, owns, and
            Company, L.L.C.*                  Liability Company                   operates gas storage facilities
                                                                                  in Northeast U.S.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>

* Under Rule 16, Maritimes and Northeast Pipeline Management Ltd., Maritimes and
Northeast Pipeline Limited Partnership, Maritimes and Northeast Pipeline L.L.C.,
and Greyhawk Gas Storage Company, L.L.C. are exempt from all obligations, duties
or liabilities imposed upon them by the Act as a subsidiary or as an affiliate
of a registered holding company thereof, as such terms are respectively defined
in Sections 2(a)(8)(A) and 2(a)(11) of the Act.

                                    BUSINESS

5.   Describe briefly:

(a) The general character of the business done by the registrant and its
subsidiaries, separated as between the holding companies, public utility
subsidiaries (as defined in the Act) and the various non-utility subsidiaries.

A.   Holding Companies

                                       5
<PAGE>

     Emera Incorporated ("Emera"), a Nova Scotia corporation, was formed in
1998. Emera is the parent of Nova Scotia Power Inc. ("NSPI"), an electric
utility company that owns and operates a vertically integrated electric utility
system and qualifies as an exempt foreign utility company under the Act.

     Emera also has two wholly owned Delaware subsidiaries formed to hold BHE,
Emera U.S. Holdings, Inc. and BHE Holdings, Inc. (individually, an "Intermediate
Holding Company" and collectively, the "Intermediate Holding Companies"). The
Intermediate Holding Companies were created to minimize taxes on repatriation of
foreign subsidiary profits. Exhibit N-1 to Form U-1, SEC File No. 070-09787,
explains the functions of each Intermediate Holding Company in more detail and
is incorporated herein. The Intermediate Holding Companies and Emera are also
collectively referred to as Registrants.

     Emera also holds other businesses engaged in the supply and maintenance of
electrical transformers, sale of steam energy, production, transmission and
storage of natural gas, and services related to wireless communications
applications.

B.   Public Utility Subsidiaries

     Bangor Hydro-Electric Company ("BHE") is a Maine electric utility that owns
and operates the transmission and distribution system for the delivery of
electricity to approximately 123,000 customers in and around Bangor, Maine.

     BHE also is a holding company by reason of its 14.2% equity interest in
Maine Electric Power Company, Inc. ("MEPCO"), a Maine electric utility that owns
and operates electric transmission facilities that extend from Wiscasset, Maine
to the Maine-New Brunswick border. In addition, BHE, through Bangor Var Co.,
Inc. ("Bangor Var")/1/, owns a 50% general partnership interest in Chester SVC
Partnership, a single-purpose financing entity formed to own a static var
compensator, electrical equipment that is adjacent to MEPCO's transmission
interconnection and supports the New England Power Pool (NEPOOL)/Hydro Quebec
Phase II transmission line. The Maine Public Utility Commission (the "Maine
Commission") and the Federal Energy Regulatory Commission (the "FERC") regulate
BHE's rates.

     BHE holds other businesses engaged in financing, security alarm services,
fiber optic communication cables and maintenance of transmission and
distribution lines. BHE also holds certain water companies that are currently
inactive.

- ----------
1    Bangor Var, a wholly owned public-utility holding company subsidiary of BHE
     is exempt from registration by order under section 3(a)(1).
- ----------

                                       6
<PAGE>

     Finally, BHE holds 7% of the outstanding common stock of Maine Yankee, a
company that owns and, prior to its permanent closure in 1997, operated an 880
MW nuclear generating plant in Wiscasset, Maine. Maine Yankee is being
decommissioned.

C.   Foreign Utility Companies

     NSPI is an electric utility company that owns and operates a vertically
integrated electric utility system. NSPI's electric generation, transmission and
distribution facilities are located exclusively in the province of Nova Scotia,
Canada. NSPI serves 440,000 customers in Nova Scotia. The utility's transmission
assets are used primarily to transmit power within the province and, on a
limited basis, to transmit power for sale to customers in New Brunswick and
beyond. NSPI is subject to regulation by the Nova Scotia Utility and Review
Board. Emera filed a Form U-57 with the Commission on behalf of NSPI on June 26,
2001, SEC File No. 073-00205.

(b) Any substantial changes which may have occurred in the general character of
the business of such companies during the preceding five years.

The information required by Item 5(b) is omitted by waiver under Rule 20(a)(3).

                                    PROPERTY

6.  Describe briefly the general character and location of the principal plants,
properties and other important physical units of the registrant and its
subsidiaries, showing separately (a) public utility and (b) other properties. If
any principal plant or important unit is not held in fee, so state and describe
how held.

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
<S>                                   <C>
Name of Company                       Principal Plants, Properties and Other Important Physical
                                      Units
- --------------------------------------------------------------------------------------------------
Registrants
- --------------------------------------------------------------------------------------------------
Emera Incorporated                    None.
- --------------------------------------------------------------------------------------------------
Emera US Holdings Inc.                None.
- --------------------------------------------------------------------------------------------------
BHE Holdings Inc.                     None.
- --------------------------------------------------------------------------------------------------
Public Utilities
- --------------------------------------------------------------------------------------------------
Bangor Hydro-Electric Company         Approximately 580 miles of transmission lines and
                                      approximately 4,500 miles of distribution lines. A variety
                                      of customer and business information systems used to manage
                                      business operations. Office, garage and warehouse facilities
                                      at various locations. 11 internal combustion generation
                                      units located at three stations having a total capacity of
                                      21MW.
- --------------------------------------------------------------------------------------------------
Maine Electric Power Company, Inc.    Electric transmission facilities from Wiscasset, Maine,
                                      to the Maine-New Brunswick border.
- --------------------------------------------------------------------------------------------------
Chester SVC Partnership               A static var compensator (SVC) located in Chester, Maine.
- --------------------------------------------------------------------------------------------------

                                       7
<PAGE>

- --------------------------------------------------------------------------------------------------
Other
- --------------------------------------------------------------------------------------------------
Nova Scotia Power Inc.                5,250 km of transmission lines, 179 substations,
                                      including major substations at Lingan, Woodbine,
                                      Port Hastings, Hopewell, Onslow, Brushy Hill
                                      and Bridgewater; 376 distribution supply
                                      substations and approximately 24,000 km of
                                      distribution lines.
- --------------------------------------------------------------------------------------------------
Bangor Var Co., Inc.                  None.
- --------------------------------------------------------------------------------------------------
Bangor Energy Resale, Inc.            None.
- --------------------------------------------------------------------------------------------------
CareTaker, Inc.                       None.
- --------------------------------------------------------------------------------------------------
East Branch Improvement Company       None.
- --------------------------------------------------------------------------------------------------
Godfrey's Falls Dam Company           None.
- --------------------------------------------------------------------------------------------------
Sawtelle Brook Dam & Improvement      None.
Company
- --------------------------------------------------------------------------------------------------
Sebois Dam Company                    None.
- --------------------------------------------------------------------------------------------------
Pleasant River Gulf Improvement       None.
Company
- --------------------------------------------------------------------------------------------------
Bangor Fiber Company, Inc.            54 miles of fiber optic cable
- --------------------------------------------------------------------------------------------------
Bangor Line Company                   None.
- --------------------------------------------------------------------------------------------------
NS Power Services Ltd.                None.
- --------------------------------------------------------------------------------------------------
NSP Trigen Inc.                       None.
- --------------------------------------------------------------------------------------------------
Enercom Inc.                          None.
- --------------------------------------------------------------------------------------------------
Emera Fuels Inc.                      Fuel bulk storage facilities, associated facilities, and
                                      vehicles in Nova Scotia and New Brunswick.
- --------------------------------------------------------------------------------------------------
Stellarton Basin Coal Gas Inc.        None.
- --------------------------------------------------------------------------------------------------
Strait Energy Inc.                    None.
- --------------------------------------------------------------------------------------------------
510845 N.B. Inc.                      None.
- --------------------------------------------------------------------------------------------------
Cablecom Ltd.                         Leases for storage, maintenance facilities, and vehicles
                                      in Nova Scotia.
- --------------------------------------------------------------------------------------------------
Fibretek Inc.                         Lease for storage, maintenance facilities, and vehicles
                                      in Nova Scotia.
- --------------------------------------------------------------------------------------------------
NSP Pipeline Management Ltd.          None.
- --------------------------------------------------------------------------------------------------
Martimes and Northeast Pipeline       None.
Management Ltd.
- --------------------------------------------------------------------------------------------------
NSP Pipeline Inc.                     None.
- --------------------------------------------------------------------------------------------------
Martimes and Northeast Pipeline       1,000 km of underground pipeline, which transports Sable
Limited Partnership                   natural gas from Goldboro, Nova Scotia to Saint John, New
                                      Brunswick that connects with the U.S. portion of the
                                      pipeline.
- --------------------------------------------------------------------------------------------------
NSP US Holdings Inc.                  None.
- --------------------------------------------------------------------------------------------------
NSP Investments Inc.                  None.
- --------------------------------------------------------------------------------------------------
Scotia Holdings Inc.                  None.
- --------------------------------------------------------------------------------------------------
Nova Power Holdings Inc.              None.
- --------------------------------------------------------------------------------------------------

                                       8
<PAGE>

- --------------------------------------------------------------------------------------------------
Scotia Power U.S. Ltd.                None.
- --------------------------------------------------------------------------------------------------
Maritimes and Northeast Pipeline      Underground pipeline, which transports natural gas from
L.L.C.                                the Canadian border to the pipeline's terminus in the
                                      Northeast United States.
- --------------------------------------------------------------------------------------------------
1447585 Ontario Ltd.                  None.
- --------------------------------------------------------------------------------------------------
3054167 Nova Scotia Ltd.              None.
- --------------------------------------------------------------------------------------------------
Emera Energy Inc.                     None.
- --------------------------------------------------------------------------------------------------
30566567 Nova Scotia Ltd.             None.
- --------------------------------------------------------------------------------------------------
3056568 Nova Scotia Ltd.              None.
- --------------------------------------------------------------------------------------------------
Emera Offshore Inc.                   8.4% interest in drilling platforms and sub-sea gathering
                                      lines located off the coast of Nova Scotia.
- --------------------------------------------------------------------------------------------------
Emera Energy U.S. Subsidiary No. 1,   None.
Inc.
- --------------------------------------------------------------------------------------------------
Emera Energy U.S. Subsidiary No. 2,   None.
Inc.
- --------------------------------------------------------------------------------------------------
Greyhawk Gas Storage Company, L.L.C.  None.
- --------------------------------------------------------------------------------------------------
</TABLE>

                             INTERSTATE TRANSACTIONS

7.  For each public utility company in the holding company system of the
registrant which is engaged in the transmission of electric energy or gas in
interstate commerce, furnish the following information for the last calendar
year/2/:

PERIOD: 10/01/00 - 9/30/01
                                         Electric Energy                  Gas
BHE:                                               (KWh)                 (mcf)

A.    Total annual sales kWh:              1,916,151,404  C+D             N/A

B.    Interstate Transactions:             1,879,599,475  D+E             N/A

C.    Maine:                               1,622,600,659                  N/A

D.    Delivered out of state:                293,550,745                  N/A

E.    Received from out of state:          1,586,048,730                  N/A

MEPCO

MEPCO is principally a transmission utility. As such, it made no purchases or
sales of electric energy during the period 10/1/00-9/30/01. However, during
2000, it transmitted for third parties 3,970,336 MWh of energy, all of which was
received at or delivered to the Maine-New Brunswick border.

- ----------
2    Show, for each State in which the company operates electric energy and/or
     gas transmitted out of State and received from out of state including all
     electric energy and/or gas delivered and received at State lines. Do not
     show net balance. If exact amounts are not known, give estimate.
- ----------

                                       9
<PAGE>

Chester SVC Partnership

Chester SVC Partnership owns a static var compensator in Chester, Maine. The
partnership does not purchase or sell electric energy, nor does it provide
transmission service. Rather, it provides voltage support to the New England
transmission grid needed to compensate for problems that would otherwise have
resulted from the import of the Hydro-Quebec Phase II contract. Participants in
the Hydro Quebec Phase II transaction make support payment to Chester. During
the twelve months ended Sept. 30, 2001, Chester received payments totaling
$4,005,488 all of which could be accurately described as related to interstate
transactions

                             SECURITIES OUTSTANDING

8.  Submit the following information concerning the registrant and each
subsidiary thereof as of the latest available date:

                                   FUNDED DEBT

(a) For each issue or series of funded debt secured by liens on property owned,
whether or not such debt has been assumed (Do not include here any contingent
liabilities reported under paragraph 8(c)).

None of Emera's companies have debt secured by a lien on property except as
follows:

<TABLE>
<CAPTION>
Name of Obligor (A)    Title of Issue (B)        Amount Authorized   Amount Issued Less
                                                 ($) (C)             Retired ($) (D)
<S>                    <C>                              <C>                  <C>
BHE                    10.25% Series due 2020           30,000,000           30,000,000
BHE                    8.98% Series due 2022            20,000,000           20,000,000
BHE                    7.38% Series due 2002            20,000,000           20,000,000
BHE                    7.30% Series due 2003                                 15,000,000
                                                        15,000,000
BHE                    Finance Authority of            126,000,000           71,500,000
                       Maine -
                        Taxable Electric Rate
                        Stabilization Revenue
                        Notes, 7.03% Series
                        1995A, due  2005
</TABLE>

                                  CAPITAL STOCK

(b) For each class of capital stock including certificates of beneficial
interest, give information both in number of shares and in dollar amounts: (Do
not include any warrants, options or other securities reported under paragraph
8(d)).

As of October 15, 2001

                                       10
<PAGE>

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Name of Issuer (A)         Title of Issue (B) Amount           Amount Reserved for        Additional   Amount Issued
                                              Authorized by    Options, Warrants,         Amount       (F)
                                              Charter (C)      Conversions and Other      Unissued (E)
                                                               Rights (D)
- --------------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>              <C>                        <C>          <C>
Emera                      Common shares      Unlimited        1,420,359 shares           None         97,931,234
                                              number of        (Executive Stock Option                 shares
                                              non-par value    Plan)
                                              Common Shares    1,701,048 shares
                                                               (Employee Common Share
                                                               Purchase Plan)
- --------------------------------------------------------------------------------------------------------------------
NSPI                       Common shares      Unlimited        None                       None         97,181,135
                                              number of                                                shares
                                              common shares
                                              without
                                              nominal or par
                                              value.
- --------------------------------------------------------------------------------------------------------------------
NSPI                       First Preferred    5,000,000*       None                       None         1,305
                           Share/Series B
- --------------------------------------------------------------------------------------------------------------------
NSPI                       First Preferred    5,000,000*       None                       None         4,998,695
                           Share/Series C
- --------------------------------------------------------------------------------------------------------------------
NSPI                       First Preferred    5,400,000*       None                       None         5,400,000
                           Share/Series D
- --------------------------------------------------------------------------------------------------------------------
Stellarton Basin Coal      Common             40,000           None                       39,999       1
Gas Inc.
- --------------------------------------------------------------------------------------------------------------------
Enercom Inc.               Common             40,000           None                       39,999       1
- --------------------------------------------------------------------------------------------------------------------
Emera Fuels Inc.           Common             40,000           None                       39,900       100
- --------------------------------------------------------------------------------------------------------------------
NS Power Services Ltd.     Common             40,000           None                       39,999       1
- --------------------------------------------------------------------------------------------------------------------
NSP Trigen Inc.            Common             40,000           None                       39,600       400
- --------------------------------------------------------------------------------------------------------------------
Strait Energy Inc.         Common             40,000           None                       39,999       1
- --------------------------------------------------------------------------------------------------------------------
NSP Pipeline Management    Common             40,000           None                       39,999       1
Ltd.
- --------------------------------------------------------------------------------------------------------------------
NSP Pipeline Inc.          Common             40,000           None                       39,999       1
- --------------------------------------------------------------------------------------------------------------------
NSP US Holdings Inc.       Common             40,000           None                       39,999       1
                           -----------------------------------------------------------------------------------------
                           Preferred          10,000,000       None                       3,087,100    6,912,900
- --------------------------------------------------------------------------------------------------------------------
NSP Investments Inc.       Common             100,000          None                       99,000       1,000
                           -----------------------------------------------------------------------------------------
                           Preferred          100,000          None                       100,000      0
- --------------------------------------------------------------------------------------------------------------------
Scotia Holdings Inc.       Common             100,000          None                       99,000       1,000
- --------------------------------------------------------------------------------------------------------------------
Nova Power Holdings Inc.   Common             100,000          None                       99,000       1,000
- --------------------------------------------------------------------------------------------------------------------
Scotia Power U.S. Ltd.     Common             100,000          None                       99,000       1,000
- --------------------------------------------------------------------------------------------------------------------
510845 N.B. Inc.           Common             Unlimited        None                       None         1
- --------------------------------------------------------------------------------------------------------------------
Cablecom Ltd.              Common             40,000           None                       39,900       100
- --------------------------------------------------------------------------------------------------------------------
Fibretek Inc.              Common             100,000          None                       99,977.50    22.5
- --------------------------------------------------------------------------------------------------------------------
1447585 Ontario Ltd.       Common             Unlimited        None                       None         20
- --------------------------------------------------------------------------------------------------------------------
Emera Energy Inc.          Common             1,000,000        None                       999,999      1
- --------------------------------------------------------------------------------------------------------------------
3056567 Nova Scotia Ltd.   Common             1,000,000        None                       999,999      1
- --------------------------------------------------------------------------------------------------------------------
3056568 Nova Scotia Ltd.   Common             1,000,000        None                       999,999      1
- --------------------------------------------------------------------------------------------------------------------
Emera Offshore Inc.        Common             1,000,000        None                       999,999      1
- --------------------------------------------------------------------------------------------------------------------
Emera U.S. Subsidiary      Common             1,000            None                       None         1,000
No. 1, Inc.
- --------------------------------------------------------------------------------------------------------------------
Emera U.S. Subsidiary      Common             1,000            None                       None         1,000
No. 2, Inc.
- --------------------------------------------------------------------------------------------------------------------
Greyhawk Gas Storage       Class A Units      1,000,000        None                       None         1,000,000
Company, L.L.C.
- --------------------------------------------------------------------------------------------------------------------
Emera US Holdings Inc.     Common             10,000           None                       7,216        2,784
- --------------------------------------------------------------------------------------------------------------------
3057049 Nova Scotia        Common             200,000,000      None                       78,400,000   121,600,000
Company
- --------------------------------------------------------------------------------------------------------------------
BHE Holdings Inc.          Common             10,000           None                       7,216        2,784
                           -----------------------------------------------------------------------------------------
                           Preferred          5,000            None                       2,568        2,432
- --------------------------------------------------------------------------------------------------------------------
Maritimes & Northeast      Common             Unlimited        None                       0            10,000
Pipeline Management Ltd.
- --------------------------------------------------------------------------------------------------------------------
Maritimes & Northeast      See **
Pipeline Limited
Partnership
- --------------------------------------------------------------------------------------------------------------------
BHE                        Common Stock       10,000,000       950,901                    None         7,363,424
- --------------------------------------------------------------------------------------------------------------------
BHE                        Preferred          600,000          None                       None         See below
- --------------------------------------------------------------------------------------------------------------------
                           7%, Noncallable:                                                            25,000
- --------------------------------------------------------------------------------------------------------------------
                           4.25%, Callable                                                             4,840
                           at $100:
- --------------------------------------------------------------------------------------------------------------------
                           4%, Series A,                                                               17,500
                           Callable at $110:                                                           ------
- --------------------------------------------------------------------------------------------------------------------
                           Total BHE Preferred                                                         47,340
- --------------------------------------------------------------------------------------------------------------------
BERI                       Common Stock       1000             0                          0            1000
- --------------------------------------------------------------------------------------------------------------------
CareTaker                  Common Stock       1000             0                          0            1000
- --------------------------------------------------------------------------------------------------------------------
Bangor Line Co             Common Stock       1000             0                          0            1000
- --------------------------------------------------------------------------------------------------------------------

                                       11
<PAGE>

Bangor Fiber Co            Common Stock       1000             0                          0            1000
- --------------------------------------------------------------------------------------------------------------------
Bangor Var Co              Common Stock       35000            0                          30000        5000
- --------------------------------------------------------------------------------------------------------------------
Sebois Dam                 Common Stock       100              0                          0            100
- --------------------------------------------------------------------------------------------------------------------
MEPCO                      Common Stock       8785             0                          0            8785
- --------------------------------------------------------------------------------------------------------------------
EBI                        Common Stock       5000             0                          0            5000
- --------------------------------------------------------------------------------------------------------------------
Godfrey Falls              Common Stock       126              0                          0            126
- --------------------------------------------------------------------------------------------------------------------
Sawtelle Brook             Common Stock       100              0                          0            100
- --------------------------------------------------------------------------------------------------------------------
</TABLE>

*Amount determined by Directors' Resolution, not by Charter.
**Limited Partnership.  Capital not authorized nor shares issued.

                             CONTINGENT LIABILITIES

(c) A brief outline of the nature and amount of each contingent liability on
account of endorsement or other guarantees of any securities.

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Guarantor            Subsidiary          Date               Beneficiary        Purpose            Amount
- ------------------------------------------------------------------------------------------------------------------
<S>                  <C>                 <C>                <C>                <C>                <C>
Nova Scotia Power    NSP Pipeline Inc.   July 27, 2001      CIBC Mellon Trust  Guarantees         $1,375,000 plus
Inc.                                                                           obligations of     interest to
                                                                               NSP Pipeline,      October 21, 2001
                                                                               Inc.
- ------------------------------------------------------------------------------------------------------------------
</TABLE>

In connection with the June 1998 restructuring of BHE's obligations under
various agreements with the Penobscot Energy Recovery Company ("PERC"), owner of
a 20 MW waste-to-energy facility in Orrington, Maine, BHE agreed to guarantee
PERC's repayment of $45 million in bonds, scheduled to be repaid by PERC from
1998 through 2018. The only likely condition that would make PERC unable to make
scheduled bond payments would be PERC's own default of its power sales contract
with BHE. In the event of such a default by PERC, BHE would have additional cash
flow available that would substantially exceed any unpaid principal on the PERC
bonds.

                                OTHER SECURITIES

(d) A statement of the amount of warrants, rights or options and of any class of
securities of the registrant and subsidiary companies not elsewhere herein
described which is outstanding and/or authorized. A brief description of the
provisions thereof should be included. Information need not be set forth under
this item as to notes, drafts, bills of exchange or bankers' acceptance which
mature within nine months.

Stock Option Plan

Emera has a stock option plan which grants options to executive officers for a
maximum term of ten years. The option price for these shares is the market price
of the shares on the day the option is granted. All options granted to date are
exercisable on a graduated basis with up to 25 percent of options exercisable on
the first anniversary date and in further 25 percent increments on each of the
second, third and fourth anniversaries of the grant. If an option is not
exercised within ten years, it

                                       12
<PAGE>

expires and the optionee loses all rights thereunder. If the holder retires from
employment with Emera the options become exercisable immediately, with the
holder having up to two years to exercise the options. If the holder resigns,
dies, or is terminated, the options become exercisable immediately with the
holder having up to six months to exercise the options. The holder of the option
has no rights as a shareholder until the option is exercised and shares have
been issued. The maximum number of shares optioned to any one executive officer
cannot exceed one percent of the issued and outstanding common shares on the
date the option is granted.

Medium Term Notes

Nova Scotia Power Inc. has eight series of medium term notes ("MTN's") issued
which in total amount to $1.06 billion. The interest rates range from 5.55% to
9.75%.

Emera Inc. has one series of MTN's issued in the amount of $10 million with an
interest rate of 6%.

Long Term Debt

Nova Scotia Power Inc. has three series of long-term debt issued which in total
amount to $400 million. The interest rates range from 6.5% to 9.75%.

PERC Warrants

In connection with the June 1998 restructuring of BHE's obligations under
various agreements with the PERC, BHE granted 2,000,000 common stock warrants to
the owners of PERC and communities with long term contracts for the disposal of
waste at the PERC facility. Each warrant entitles the warrant holder to acquire
one share of BHE's common stock at a price of $7 per share. Upon exercise, BHE
has the option, instead of providing common stock, to pay cash equal to the
difference between the then market price of the stock and the exercise price of
$7 per share times the number of shares as to which exercise is made. As of
September 30, 2001, 950,901 warrants remained unexercised. All warrants will be
paid in cash only upon exercise.

Chester SVC Limited Recourse Senior Notes

<TABLE>
<CAPTION>
Name of Debtor    Name of Creditor      Amount Owed      Interest Rate     Date of Maturity
<S>               <C>                   <C>                 <C>                  <C>
Chester SVC       Prudential Power      $34,500,000         10.48%               2020
                  Funding Associates
</TABLE>


                        INVESTMENTS IN SYSTEM SECURITIES

9.  Give a tabulation showing the principal amount, par or stated value, the
cost to the system company originally acquiring such security, and the number of
shares or units, of each security described under Item 8 that is held by the
registrant and by each subsidiary company thereof as the record (or beneficial)
owner, and the amounts at which the same are carried on the books of each such
owner. This information should be given as of the same date as the information
furnished in answer to Item 8.

                                       13
<PAGE>

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Acquiring       Issuing      Type of       Number of    Principal        Par value    Original         Book Value
Company         Company      Security      Shares or    Amount (if       (per unit    Cost
                                           Units Held   applicable)      or share
                                           by Acquirer                   if
                                                                         applicable)
- ----------------------------------------------------------------------------------------------------------------------
<S>             <C>          <C>           <C>          <C>              <C>          <C>              <C>
Emera           NSPI         Common        91,181,135   $742,506,598.19  Non-par      $742,506,598.19  $742,506,598.19
                             Shares                                      value
- ----------------------------------------------------------------------------------------------------------------------
BHE Holdings,   BHE          Common Stock  7,363,424    N/A              $5.00        $197,383,943.744 $136,149,709.76
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      Stellarton   Common        1            $1.00            Without      $1.00            $1.00
                Basin Coal                                               nominal or
                Gas Inc.                                                 par value
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      Enercom      Common        1            $3,100,000       Without      $1.00            $3,100,000
                Inc.                                                     nominal or
                                                                         par value
- ----------------------------------------------------------------------------------------------------------------------
Enercom Inc.    Emera        Common        100          $5,043,000       Without      $5,043,000       $5,043,000
                Fuels Inc.                                               nominal or
                                                                         par value
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      NS Power     Common        1            $1.00            Without      $1.00            $1.00
                Services                                                 nominal or
                Ltd.                                                     par value
- ----------------------------------------------------------------------------------------------------------------------
NS Power        NSP Trigen   Common        200          $1.00                         $1.00            $1.00
Services Ltd.   Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      Strait       Common        1            $1.00            Without      $1.00            $1.00
                Energy Inc.                                              nominal or
                                                                         par value
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      NSP          Common        1            $1.00            Without      $1.00            $1.00
                Pipeline                                                 nominal or
                Management                                               par value
                Ltd.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      NSP          Common        1            $1.00            Without      $1.00            $1.00
                Pipeline                                                 nominal or
                Inc.                                                     par value
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      NSP US       Common        1            $1.00            Without      $1.00            $1.00
                Holdings                                                 nominal or
                Inc.                                                     par value
- ----------------------------------------------------------------------------------------------------------------------
NSP Pipeline    NSP US       Preferred     6,912,900    $6,912,900       Without      $6,912,900       $6,912,900
Inc.            Holdings                                                 nominal or
                Inc.                                                     par value
- ----------------------------------------------------------------------------------------------------------------------
NSP US          NSP          Common        1,000        $10.00           $0.01 per    $10.00           $10.00
Holdings Inc.   Investments                                              share
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
NSP US          NSP          Preferred     0            $0.00            $0.01 per    $0.00            $0.00
Holdings Inc.   Investments                                              share
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
NSP US          Scotia       Common        1,000        $6,912,900       $0.01 per    $10.00           $6,912,900
Holdings Inc.   Holdings                                                 share
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
Scotia          Nova Power   Common        1,000        $10.00 US        $0.01per     $10.00 US        $10.00 US
Holdings Inc.   Holdings                                                 share
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
Nova Power      Scotia       Common        1,000        $10.00 US        $0.001 per   $10.00 US        $10.00 US
Holdings Inc.   Power U.S.                                               share
                Ltd.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      510845       Common        1            $1.00            Without      $1.00            $1.00
                N.B. Inc.                                                nominal or
                                                                         par value
- ----------------------------------------------------------------------------------------------------------------------
510845 N.B.     Cablecom     Common        100          $150,000                      $100,000         $150,000
Inc.            Ltd.
- ----------------------------------------------------------------------------------------------------------------------
Cablecom Ltd.   Fibretek     Common        22.5         $351,025                      $351,025         $351,025
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      1447585      Common        20           $10,100 US       $505 per     $10,100 US       $10,100 US
                Ontario                                                  share
                Ltd.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      Emera        Common        1            $1.00            Without      $1.00            $1.00
                Energy Inc.                                              nominal or
                                                                         par value
- ----------------------------------------------------------------------------------------------------------------------

                                       14
<PAGE>

- ----------------------------------------------------------------------------------------------------------------------
Emera Energy    3056567      Common        1            $1.00            Without      $1.00            $1.00
Inc.            Nova                                                     nominal or
                Scotia Ltd.                                              par value
- ----------------------------------------------------------------------------------------------------------------------
3056567 Nova    3056568      Common        1            $1.00            Without      $1.00            $1.00
Scotia Ltd.     Nova                                                     nominal or
                Scotia Ltd.                                              par value
- ----------------------------------------------------------------------------------------------------------------------
3056568 Nova    Emera        Common        1            $1.00            Without      $1.00            $1.00
Scotia Ltd.     Offshore                                                 nominal or
                Inc.                                                     par value
- ----------------------------------------------------------------------------------------------------------------------
Emera Energy    Emera U.S.   Common        1,000        $2,000,000       $1.00 par    $2,000,000       $2,000,000
Inc.            Subsidiary                              US               value        US               US
                No. 1, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera U.S.      Emera U.S.   Common        1,000        $1.00 US         $1.00 par    $1.00 US         $1.00 US
Subsidiary      Subsidiary                                               value
No. 1, Inc.     No. 2, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera U.S.      Greyhawk     Class A       400,000      $2,000,000                    $2,000,000       $2,000,000
Subsidiary      Gas          Units                      US                            US               US
No. 2, Inc.     Storage
                Company,
                L.L.C.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      Emera US     Common        2,784        $78,402,000      $1.00 per                     $78,402,000
                Holdings                                US               share                         US
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera Inc.      3057049      Common        121,600,000  $121,600,000     $1.00 per    $121,600,000     $121,600,000
                Nova                                    US               share        US               US
                Scotia
                Company
- ----------------------------------------------------------------------------------------------------------------------
Emera U.S.      BHE          Common        2,784        $2,784 US        $0.10 per    $2,784 US        $2,784 US
Holdings Inc.   Holdings                                                 share
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
Emera U.S.      BHE          Preferred     1,216        $121,600,000     $1.00 per    $1,216           $121,600,000
Holdings Inc.   Holdings                                US               share                         US
                Inc.
- ----------------------------------------------------------------------------------------------------------------------
NSP Pipeline    Maritimes    Common        1,250        $251,038                      $251,038         $251,038
Management      & Northeast
Ltd.            Pipeline
                Management
                Ltd.
- ----------------------------------------------------------------------------------------------------------------------
NSP Pipeline    Maritimes    See Note 1                 $25,044,239                   $25,044,239      $25,044,239
Inc.            & Northeast
                Pipeline
                Limited
                Partnership
- ----------------------------------------------------------------------------------------------------------------------
BHE             Maine        Common Stock  1,249        N/A           $100.00         $124,900         $3,728,493
                Electric
                Power Co.
- ----------------------------------------------------------------------------------------------------------------------
BHE             BERI         Common Stock  1,000        N/A           $1.00           $1,000           $1,000
- ----------------------------------------------------------------------------------------------------------------------
BHE             CareTaker    Common Stock  1,000        N/A           $1.00           $1,000           $351,170
- ----------------------------------------------------------------------------------------------------------------------
BHE             Bangor       Common Stock  1,000        N/A           $0.00           $0.00            $0.00
                Line Co.
- ----------------------------------------------------------------------------------------------------------------------
BHE             Bangor       Common Stock  1,000        N/A           $0.00           $0.00            $1,880,615
                Fiber
- ----------------------------------------------------------------------------------------------------------------------
BHE             Sebois Dam   Common Stock  100          N/A           $50.00          $5000            $0.00
- ----------------------------------------------------------------------------------------------------------------------
BHE             Bangor Var   Common Stock  5000         N/A           $1.00           $5,000           $100,000
- ----------------------------------------------------------------------------------------------------------------------
BHE             EBI          Common Stock  3,000        N/A           $100            $300,000         $21,000
- ----------------------------------------------------------------------------------------------------------------------
Bangor Var      Chester SVC  Partnership   50%          N/A           N/A             $100,000         $100,000
                             Interest
- ----------------------------------------------------------------------------------------------------------------------
EBI             Godfrey      Common Stock  126          N/A           $50.00          $6300            $0.00
                Falls
- ----------------------------------------------------------------------------------------------------------------------
EBI             Sawtelle     Common Stock  100          N/A           $100.00         $10,000          $0.00
                Brook
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>

Note 1:  This is a limited partnership. There is no authorized capital or shares
         issued.

                         INVESTMENTS IN OTHER COMPANIES

                                       15
<PAGE>

10.  Give a tabulation showing all investments of the registrant and of each
subsidiary thereof in holding companies and in public utility companies which
are not subsidiary companies of the registrant. Also show all other investments
of the registrant and of each subsidiary thereof in the securities of any other
enterprise, if the book value of the investment in any such enterprise exceeds
2% of the total debit account shown on the balance sheet of the company owing
such investment or an amount in excess of $25,000 (whichever amount is the
lesser). Give principal amount and number of shares or units and the cost of
each issue of such securities to the system company originally acquiring such
security, and amount at which carried on the books of the owner. List all such
securities pledged as collateral for loans or other obligations and identify
loans and obligations for which pledged. This information should be given as of
the same date as the information furnished in answer to Item 8.

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Acquiring      Issuing      Type of      Number of    Principal    Par value    Original     Book value
Company        Company      Security     Shares or    Amount (if   (per unit    Cost
                                         Units Held   applicable)  or share if
                                         by Acquirer               applicable)
- -------------------------------------------------------------------------------------------------------
<S>            <C>          <C>          <C>          <C>          <C>          <C>          <C>
BHE            Maine        Common       29,736       N/A          $100.00      $2,973,600   $4,356,730
               Yankee       Stock
               Atomic
               Power
               Company
- -------------------------------------------------------------------------------------------------------
</TABLE>

                        INDEBTEDNESS OF SYSTEM COMPANIES

11.  List each indebtedness of the registrant and of each subsidiary company
thereof (other than indebtedness reported under Item 8, but as of the same date)
where the aggregate debt owed by any such company to one person exceeds $25,000
or an amount exceeding 2% of the total of the debt accounts shown on the balance
sheet of the debtor (whichever amount is the lesser) but not including any case
in which such aggregate indebtedness is less than $5,000, and give the following
additional information as to each such indebtedness:

Note: This Item includes only indebtedness where the aggregate debt owed by any
company to any one person exceeds the greater of (i) $25,000 or (ii) an amount
exceeding 2% of the total of the debit accounts shown on the balance sheet of
the debtor. In addition, only notes payable and debt securities issued are
disclosed, and not trade accounts payable.

(a)  Debts owed to associate companies:

<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
       Debtor            Creditor       Amount        Interest Rate         Maturity Date
- --------------------------------------------------------------------------------------------
<S>                   <C>            <C>            <C>                   <C>
NSP Pipeline          Emera          $39,287,763    Prime plus 60 bps     December 31, 2003
- --------------------------------------------------------------------------------------------
NSP Pipeline          Emera          $2,315,172     Prime plus 100 bps    June 30, 2003
- --------------------------------------------------------------------------------------------
NSP Pipeline Mgmt     Emera          $311,618       Prime plus 60 bps     December 31, 2003
- --------------------------------------------------------------------------------------------
NSP Pipeline Mgmt     Emera          $7,722         Prime plus 100 bps    June 30, 2003
- --------------------------------------------------------------------------------------------
Scotia Power US       Emera          $24,600,111    3month LIBOR plus     December 31, 2003
                                                    155 bps
- --------------------------------------------------------------------------------------------
Scotia Power US       Emera          $1,104,596     3month LIBOR plus     June 30, 2003
                                                    155 bps
- --------------------------------------------------------------------------------------------
Enercom               Emera          $26,798,569    Average rate of       Oct 2 / 2005, Nov
                                                    9.10%                 2 / 2005, Dec 31 /
                                                                          05, March 30 / 06
- --------------------------------------------------------------------------------------------

                                       16
<PAGE>

- --------------------------------------------------------------------------------------------
Strait Energy         Emera          $2,274,629     8.52%                 Sept 31, 2014
- --------------------------------------------------------------------------------------------
NS Power Services     Emera          $1,825,248     0%                    None
- --------------------------------------------------------------------------------------------
Stellarton Basin      Emera          $10,073,454    8.9%                  December 31, 2005
- --------------------------------------------------------------------------------------------
510845 Inc.           Emera          $1,450,971     8.20%                 January 31 / 06
- --------------------------------------------------------------------------------------------
510845 Inc.           Emera          $774,130       9.30%                 August 1, 2005
- --------------------------------------------------------------------------------------------
510845 Inc.           Emera          $152,055       8.20%                 January 31 / 06
- --------------------------------------------------------------------------------------------
Emera Offshore Inc    Emera          $53,209,335    Prime plus 100 bps    June 15 / 06
- --------------------------------------------------------------------------------------------
</TABLE>

(b)  Debts owed to others:

Note: If any of the above reported indebtedness is pledged as collateral or is
secured by the pledge of any security not included in the answer to Item 8(a),
Item 8(b) or Item 10, this information should be furnished by appropriate
footnotes.

Bank Credit Facilities

Emera Inc. and NSPI

Emera and NSPI issue short term debt under bank credit facilities with Canadian
banks or syndicates of Canadian banks in the form of bankers' acceptances, and
libor loans issued against the lines of credit.

Emera Inc. has a credit facility for $225 million (U.S.) for the purpose of
acquiring Bangor Hydro-Electric Company and certain assets of the Sable Offshore
Energy Project. The rates charged for various Canadian loans under this facility
are:

     BA's                     75 bps stamping fee
     LIBOR                    75 bps stamping fee
     Agent Fee                $450,000 USD {six months} {.05% beyond six months}

Emera Inc. has a credit facility for $150 million (Cdn) for general operating
purposes. The rates charged for various Canadian loans under this facility are:

     BA's                     50 bps stamping fee
     LIBOR                    45 bps stamping fee
     Overdraft                Prime
     Credit balance           Prime less 2.25%
     Letters of Credit        50 bps

Nova Scotia Power Inc. has a credit facility in the amount of $150 million (Cdn)
for general operating purposes. The rates charged for various Canadian loans
under this facility are:

     BA's                     50 bps stamping fee
     LIBOR                    45 bps stamping fee
     Overdraft                Prime
     Credit balance           Prime less 2.25%
     Letters of Credit        50 bps

                                       17
<PAGE>

Nova Scotia Power Inc. has a credit facility in the amount of $350 million (Cdn)
to back up its commercial paper program. The rates charged are:

     Used Portion             8.5 bps
     Unused Portion           4.0 bps

Emera Offshore Inc.

Emera Offshore Inc. has a credit facility in the amount of $2,000,000 (Cdn) for
general business purposes.

Commercial Paper Program

Nova Scotia Power Inc. operates a commercial paper program whereby it may borrow
up to $350,000,000 (Cdn) through the issuance of notes to a syndicate of
Canadian chartered banks. As of September 30, 2001 NSPI had outstanding
$210,000,000 (Cdn) under this program with an average interest rate payable to
maturity of 4.11 percent. It had outstanding $6,600,000 (US) with an average
interest rate payable to maturity of 3.78 percent. The notes issued at that time
ranged in maturity from 3 days to 160 days.

Other Bank Credit Facilities

<TABLE>
<CAPTION>
Name of Debtor   Name of Creditor       Amount Owed     Interest Rate       Date of Maturity
<S>              <C>                      <C>          <C>                         <C>
BHE              Fleet Bank of Maine      4,000,000               3.41%            31-Dec-01
BHE              Fleet Bank of Maine      2,000,000               6.00%            31-Dec-01
CareTaker        Ford Motor Credit           21,000               3.90%                 2003
BERI             BankBoston               7,080,000    Variable rate-                   2002
                                                       LIBOR plus 1.125%
</TABLE>


                                PRINCIPAL LEASES

12.  Describe briefly the principal features of each lease (omitting oil and gas
leases to which the registrant or any subsidiary company thereof is a party),
which involves rental at an annual rate of more than $50,000 or an amount
exceeding 1% of the annual gross operating revenue of such party to said lease
during its last fiscal year (whichever of such sums is the lesser) but not
including any lease involving rental at a rate of less than $5,000 per year.

Note: This Item includes only leases that involve rental at an annual rate of
the greater of (i) $50,000 or (ii) an amount exceeding 1% of the annual gross
operating revenue of such party to said lease during its last fiscal year.

                                       18
<PAGE>

(Amounts in parenthesis represent annual rent)

Cablecom Inc. has a lease with Brookshire Developments Ltd. for office space in
Bedford, Nova Scotia ($83,700 Cdn).

Enercom Inc. sub-leases from Nova Scotia Power Inc. office space in Halifax,
Nova Scotia. ($77,360 Cdn).

                                 SECURITIES SOLD

13.  If, during the last five years, the registrant or any subsidiary company
thereof has issued, sold or exchanged either publicly or privately any
securities having a principal amount, par, stated or declared value exceeding
$1,000,000 or exceeding an amount equal to 10% of the total liabilities shown by
the balance sheet of issuer at the time of such issue (whichever of such sums is
the lesser), give the following information with respect to each such issue or
sale:

                                       19
<PAGE>

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Title of Issue     Amount Issued      Proceeds Received by  Approximate Expenses   Name of Principal         Underwriters Initial
                   or Sold            Issuer per $100       of Issuer per $100     Underwriters or           Offering Price
                                      Before Expenses)                             Purchasers
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                <C>                <C>                   <C>                    <C>                       <C>
Emera Inc.         10,350,000 shares  $15.456 per share     $0.644 per share       CIBC World Markets        $16.10
Common Shares                                                                      Inc.; BMO Nesbitt Burns
                                                                                   Inc.; RBC Dominion
                                                                                   Securities Inc.;
                                                                                   ScotiaCapital Inc.; TD
                                                                                   Securities Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
Enera Inc.         $10,000,000        $996.24 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $999.74 per $1,000 of
Series E1                             of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $25,000,000        $912.42 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $916.42 per $1,000 of
Series Q                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $10,000,000        $920.94 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $924.94 per $1,000 of
Series Q                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $75,000,000        $1,036.26 per $1,000  Not to exceed $25,000  CIBC World Markets        $1,038.25 per $1,000 of
Series K                              of Notes                                     Inc.; Scotia Capital      Notes
Medium Term Notes                                                                  Inc.; RBC Dominion
                                                                                   Securities Inc.; BMO
                                                                                   Nesbitt Burns Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $75,000,000        $993.56 per $1,000    Not to exceed $25,000  CIBC World Markets        $998.56 per $1,000 of
Series R                              of Notes                                     Inc.; Scotia Capital      Notes
Medium Term Notes                                                                  Inc.; RBC Dominion
                                                                                   Securities Inc.; BMO
                                                                                   Nesbitt Burns Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $15,000,000        $1,276.27 per $1,000  Not to exceed $25,000  CIBC Wood Gundy           $1,281.27 per $1,000 of
Series M                              of Notes                                     Securities Inc.           Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $25,000,000        $1,354.19 per $1,000  Not to exceed $25,000  RBC Dominion Securities   $1,359.19 per $1,000 of
Series F                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $50,000,000        $992.91 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $996.91 per $1,000 of
Series O                              of Notes                                     Inc.; CIBC Wood Gundy     Notes
Medium Term Notes                                                                  Inc.; ScotiaMcLeod
                                                                                   Inc.; Nesbitt Burns Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $75,000,000        $990.49 per $1,000    Not to exceed $25,000  CIBC Wood Gundy Inc.;     $994.49 per $1,000 of
Series Q                              of Notes                                     Nesbitt Burns Inc.; RBC   Notes
Medium Term Notes                                                                  Dominion Securities
                                                                                   Inc.; ScotiaMcLeod Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $15,000,000        $948.30 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $952.30 per $1,000 of
Series Q                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $50,000,000        $1,005.40 per $1,000  Not to exceed $25,000  RBC Dominion Securities   $1,010.40 per $1,000 of
Series N                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $50,000,000        $991.55 per $1,000    Not to exceed $25,000  ScotiaMcLeod Inc.         $995.55 per $1,000 of
Series O                              of Notes                                                               Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------

                                       19
<PAGE>

- -----------------------------------------------------------------------------------------------------------------------------------
Title of Issue     Amount Issued      Proceeds Received by  Approximate Expenses   Name of Principal         Underwriters Initial
                   or Sold            Issuer per $100       of Issuer per $100     Underwriters or           Offering Price
                                      Before Expenses)                             Purchasers
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $40,000,000        $989.78 per $1,000    Not to exceed $25,000  RBC Dominion Securities   $993.78 per $1,000 of
Series P                              of Notes                                     Inc.                      Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $15,000,000        $939.41 per $1,000    Not to exceed $25,000  CIBC World Markets        $943.41 per $1,000 of
Series O                              of Notes                                                               Notes
Medium Term Notes
- -----------------------------------------------------------------------------------------------------------------------------------
NSPI               $15,000,000        $1,031.43 per $1,000  Not to exceed $25,000  RBC Dominion Securities   $1,033.93 per $1,000 of
Series K                              of Notes                                     Inc.; CIBC World          Notes
Medium Term Notes                                                                  Markets Inc.; BMO
                                                                                   Nesbitt Burns Inc.;
                                                                                   Scotia Capital Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
BERI               24,800,000.00      $100.00               $1.86                  BankBoston                N/A
Medium Term Notes,
Variable interest
rate - LIBOR plus
1.125%, due 2002
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                       21
<PAGE>

                AGREEMENTS FOR FUTURE DISTRIBUTION OF SECURITIES

14.

(a) Summarize the terms of any existing agreement to which the registrant or any
associate or affiliate company thereof is a party or in which any such company
has a beneficial interest with respect to future distribution of securities of
the registrant or of any subsidiary;

None.

(b) Describe briefly the nature of any financial interest (other than ownership
of securities acquired as a dealer for the purpose of resale) which any person
with whom such agreement exists, has in the registrant or in any associate or
affiliate company thereof.

None.

                    TWENTY LARGEST HOLDERS OF CAPITAL STOCKS

15. As of a recent date (indicating such date for each class) give the following
information with respect to the holders of each class of stock and/or
certificates of beneficial interest of the registrant:

(a) List the twenty largest holders in accordance with the table below:

Twenty largest shareholders of registrants (Information regarding Emera is
provided as of April 14, 2001; Information regarding other registrants is
provided as of October 15, 2001)

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Title of Issue            Holder of Record and Address               Number of       Percent
                                                                     Shares Owned    of Class
- -----------------------------------------------------------------------------------------------
<S>                       <C>                                        <C>             <C>
Emera Common              I.G. Investment Management                 7400500         7.6
                          One Canada Centre
                          447 Portage Avenue
                          WINNIPEG, Manitoba   R3C 3B6
- -----------------------------------------------------------------------------------------------
                          Jones Heward Investment Counsel            1874600         1.9
                          77 King Street West, Suite 4200
                          TORONTO, ON   M5K 1J5
- -----------------------------------------------------------------------------------------------
                          AGF Management Ltd.                        1709900         1.7
                          66 Wellington Street West
                          Suite 3100 - TD Bank Tower
                          TORONTO, ON   M5K 1E9
- -----------------------------------------------------------------------------------------------
                          Perigee Inc.                               1529300         1.6
                          TORONTO, ON
- -----------------------------------------------------------------------------------------------
                          Royal Bank Investment Management Inc.      1395000         1.4
                          Royal Trust Tower, P.O. Box 121
                          TD Centre, Suite 3600
                          77 King St. West
                          TORONTO, ON   M5K 1H4
- -----------------------------------------------------------------------------------------------

                                       22
<PAGE>

- -----------------------------------------------------------------------------------------------
                          Scudder Maxxum Company                     1315000         1.3
                          33 Yonge Street
                          Suite 810
                          TORONTO, ON   M5E 1G4
- -----------------------------------------------------------------------------------------------
                          Ontario Teachers Pension Plan Board        1300000         1.3
                          5650 Yonge Street, Suite 3000
                          NORTH YORK, ON   M2M 4H5
- -----------------------------------------------------------------------------------------------
                          AIM Asset Management                       1218600         1.2
                          120 Bloor Street East, Suite 700
                          TORONTO, ON    M4W 1B7
- -----------------------------------------------------------------------------------------------
                          RT Capital Management                      750000          0.7
                          Royal Trust Tower, 77 King St. West
                          Suite 3700, P.O. Box 85, TD Centre
                          Toronto, ON   M5K 1G8
- -----------------------------------------------------------------------------------------------
                          Scotia Cassels Investment Mgmt.            523150          0.5
                          1 Queen Street East
                          12th Floor
                          TORONTO, ON  M5C 2W5
- -----------------------------------------------------------------------------------------------
                          Natcan Investment Management               496000          0.5
                          1100 University St., Suite 400
                          MONTREAL, PQ   H3B 2G7
- -----------------------------------------------------------------------------------------------
                          T.A.L. Investment Counsel                  485600          0.5
                          1000 de la Gauchellere St. West
                          Suite 3100
                          MONTREAL, PQ   H3B 4W5
- -----------------------------------------------------------------------------------------------
                          McLean Budden                              458000          0.5
                          (address not available)
- -----------------------------------------------------------------------------------------------
                          C.I. Fund Management                       362700          0.4
                          151 Yonge St., 7th Floor
                          TORONTO, ON   M5C 2W7
- -----------------------------------------------------------------------------------------------
                          GWL Investment Management                  287290          0.3
                          100 Osborne St. North
                          WINNIPEG, MB   R3C 3A5
- -----------------------------------------------------------------------------------------------
                          Caisse de Depot et Placement du Quebec     279700          0.3
                          1991 McGill College Avenue
                          8th Floor
                          MONTREAL, PQ   H3A 3C7
- -----------------------------------------------------------------------------------------------
                          C.A. Delaney Capital Management            260530          0.3
                          161 Bay Street, Suite 5100
                          P.O. Box 713
                          TORONTO, ON   M5J 2S1
- -----------------------------------------------------------------------------------------------
                          Jarislowsky, Fraser Ltd.                   211000          0.2
                          401 Bay St.
                          Suite 1600
                          TORONTO, ON   M5H 2Y4
- -----------------------------------------------------------------------------------------------
                          OMERS                                      200000          0.2
                          1 University Ave., Suite 1100
                          TORONTO, ON  M5J 2P1
- -----------------------------------------------------------------------------------------------
                          BZW Barclays Canada                        196300          0.2
                          BCE Place -161 Bay St. - suite 250
                          Box 614 Canada Trust Tower
                          TORONTO, ON   M5J 2S1
- -----------------------------------------------------------------------------------------------

                                       23
<PAGE>

- -----------------------------------------------------------------------------------------------
                          Genus Capital Management                   191800          0.2
                          (address not available)
- -----------------------------------------------------------------------------------------------
Emera US Holdings Inc.    Emera Inc.                                 2,784           100
Common                    1894 Barrington St., 18th Floor,
                          Barrington Tower, Scotia Square,
                          Halifax, NS    B3J 2W5
- -----------------------------------------------------------------------------------------------
BHE Holdings Inc. Common  Emera US Holdings Inc.                     2,784           100
                          c/o Corporation Trust Company
                          1209 Orange Street
                          New Castle County
                          Wilmington, Delaware  19801
- -----------------------------------------------------------------------------------------------
BHE Holdings Inc.         Emera US Holdings Inc.                     1,216           100
Preferred                 c/o Corporation Trust Company
                          1209 Orange Street
                          New Castle County
                          Wilmington, Delaware  19801
- -----------------------------------------------------------------------------------------------
</TABLE>

(b) Number of shareholders of record each holding 1,000 shares or more, and
aggregate number of shares so held.

Approximately 2,300 registered shareholders hold more than 1,000 shares of
Emera. The approximate number of shares held by these 2,300 shareholders is
5,300,000. A large portion of Emera's common shares are held by CDS (the
Canadian Depository Service) and, therefore, the registrants are unable to
determine the exact number.

(c) Number of shareholders of record each holding less than 1,000 shares and the
aggregate number of shares so held.

Approximately 8,000 registered shareholders hold less than 1,000 shares of
Emera. The approximate number of shares held by these 8,000 shareholders is
3,000,000. A large portion of Emera's common shares are held by CDS and,
therefore, the registrants are unable to determine the exact number.


                       OFFICERS, DIRECTORS, AND EMPLOYEES

16.

(a) Positions and Compensation of Officers and Directors. Give name and address
of each director and officer (including any person who performs similar
functions) of the registrant, of each subsidiary company thereof, and of each
mutual service company which is a member of the same holding company system.
Opposite the name of each such individual give the title of every such position
held by him and briefly describe each other employment of such individual by
each such company.

     State the present rate of compensation on an annual basis for each director
whose aggregate compensation from all such companies exceeds $1,000 per year,
and of each

                                       24
<PAGE>

officer whose aggregate compensation from such companies is at the rate of
$20,000 or more per year. In the event any officer devotes only part of his time
to a company or companies in the system this fact should be indicated by
appropriate footnote. Such compensation for such part time should be computed on
an annual rate and if such annual rate exceeds $20,000 the actual compensation
as well as annual rate should also be reported.

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
              Company                             Directors                            Officers
- -------------------------------------------------------------------------------------------------------------
<S>                                   <C>                                 <C>
Emera Inc.                            Derek Oland                         David McD. Mann, President and
                                      David McD. Mann                     Chief Executive Officer
                                      George A. Caines                    Ronald E. Smith, Senior
                                      Purdy Crawford                      Vice-President and Chief
                                      R. Irene d'Entremont                Financial Officer
                                      James K. Gray                       Richard J. Smith, Corporate
                                      M. Edward MacNeil                   Secretary and General Counsel
                                      David McD. Mann                     Jeremy R. Byatt, Vice-President
                                      Elizabeth Parr-Johnston (Director   External Relations
                                      of the Bank of Nova Scotia)         Elizabeth A. MacDonald,
                                      Kenneth C. Rowe (Director of the    Vice-President Human Resources
                                      Royal Bank of Canada)
                                      Rosemary Scanlon
                                      Paul D. Sobey (Director of the
                                      Bank of Nova Scotia)
- -------------------------------------------------------------------------------------------------------------
Nova Scotia Power Inc.                Derek Oland                         David McD. Mann, President and
                                      David McD. Mann                     Chief Executive Officer
                                      George A. Caines                    Christopher G. Huskilson, Chief
                                      Purdy Crawford                      Operating Officer
                                      R. Irene d'Entremont                Michael J. O'Neill,
                                      James K. Gray                       Vice-President Finance and
                                      M. Edward MacNeil                   Administration
                                      David McD. Mann                     Richard J. Smith, Corporate
                                      Elizabeth Parr-Johnston (Director   Secretary and General Counsel
                                      of the Bank of Nova Scotia)
                                      Kenneth C. Rowe (Director of the
                                      Royal Bank of Canada)
                                      Rosemary Scanlon
                                      Paul D. Sobey (Director of the
                                      Bank of Nova Scotia)
- -------------------------------------------------------------------------------------------------------------
NS Power Services Ltd.                Richard J. Smith                    Richard J. Smith, President and
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
NSPTrigen Inc .                       David McD. Mann                     Susan Shaw, Chairman of the Board
                                      Thomas R. Casten                    Richard J. Smith, Corporate
                                      Goran Mornhed                       Secretary
                                      Michael Weiser
                                      Susan Shaw, Chair
- -------------------------------------------------------------------------------------------------------------
Enercom Inc.                          David McD. Mann                     Wayne J. Crawley, President and
                                                                          Chief Executive Officer
                                                                          Richard J. Smith, Corporate
                                                                          Secretary and General Counsel
- -------------------------------------------------------------------------------------------------------------
Emera Fuels Inc.                      David McD. Mann                     Wayne J. Crawley, President
                                                                          Ronald E. Smith, Vice-President
                                                                          and Chief Financial Officer
                                                                          Richard J. Smith, Corporate
                                                                          Secretary and General Counsel
- -------------------------------------------------------------------------------------------------------------
510845 N.B. Inc.                      David McD. Mann                     Christopher G. Huskilson,
                                                                          President
                                                                          Richard J. Smith, Secretary
                                                                          William E. Hattie, Vice-President
                                                                          Utility Services
                                                                          Ron Smith, Vice-President Finance
- -------------------------------------------------------------------------------------------------------------

                                       25
<PAGE>

- -------------------------------------------------------------------------------------------------------------
Cablecom Ltd.                         David McD. Mann                     Christopher G. Huskilson,
                                                                          President
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
                                                                          Bill Hattie, Vice-President
                                                                          Ron Smith, Vice-President Finance
- -------------------------------------------------------------------------------------------------------------
Fibretek Inc.                         David McD. Mann                     Christopher G. Huskilson,
                                                                          President
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
                                                                          Bill Hattie, Vice-President
                                                                          Ron Smith, Vice-President Finance
- -------------------------------------------------------------------------------------------------------------
Stellarton Basin Coal Gas Inc.        Richard J. Smith                    Richard J. Smith, President and
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
Strait Energy Inc.                    David McD. Mann                     David McD. Mann, President
                                      Richard J. Smith                    Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
NSP Pipeline Management Ltd.          David McD. Mann                     David McD. Mann, President
                                      Richard J. Smith                    Wayne J. Rousch, Senior
                                                                          Vice-President Business
                                                                          Development
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
NSP Pipeline Inc.                     David McD. Mann                     David McD. Mann, President
                                      Richard J. Smith                    Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
NSP Investments Inc.                  A. Michael Burnell                  A. Michael Burnell, President,
                                                                          Secretary and Treasurer
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
NSP US Holdings Inc.                  David McD. Mann                     David McD. Mann, President
                                      Richard J. Smith                    Ray Robinson, Vice-President
                                                                          Utility Integration
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
Scotia Holdings Inc.                  A. Michael Burnell                  A. Michael Burnell, President,
                                                                          Secretary and Treasurer
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
Nova Power Holdings Inc.              A. Michael Burnell                  A. Michael Burnell, President,
                                                                          Secretary and Treasurer
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
Scotia Power U.S. Ltd.                A. Michael Burnell                  A. Michael Burnell, President,
                                                                          Secretary and Treasurer
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
Emera Energy Inc.                     David McD. Mann                     David McD. Mann, President
                                      Wayne J. Rousch                     Wayne J. Rousch, Vice-President
                                                                          Ronald E. Smith, Vice-President
                                                                          Finance
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
3056567 Nova Scotia Ltd.              David McD. Mann                     David McD. Mann, President
                                      Wayne J. Rousch                     Wayne J. Rousch, Vice-President
                                                                          Ronald E. Smith, Vice-President
                                                                          Finance
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
3056568 Nova Scotia Ltd.              David McD. Mann                     David McD. Mann, President
                                      Wayne J. Rousch                     Wayne J. Rousch, Vice-President
                                                                          Ronald E. Smith, Vice-President
                                                                          Finance
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
Emera Offshore Inc.                   David McD. Mann                     David McD. Mann, President
                                      Wayne J. Rousch                     Wayne J. Rousch, Vice-President
                                                                          Ronald E. Smith, Vice-President
                                                                          Finance
                                                                          Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
Emera US Holdings Inc.                A. Michael Burnell                  A. Michael Burnell, President and
                                                                          Secretary
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
BHE Holdings Inc.                     A. Michael Burnell                  A. Michael Burnell, President and
                                                                          Secretary
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------

                                       26
<PAGE>

- -------------------------------------------------------------------------------------------------------------
BHE Acquisition Corp.                 Michael L. Sheehan                  Michael L. Sheenan, President
                                      James M. Hanley                     James M. Hanley, Vice-President
                                                                          and Secretary
                                                                          Richard J. Smith, Assistant
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
3057049 Nova Scotia Company           David McD. Man                      David McD. Mann, President
                                      Richard J. Smith                    Richard J. Smith, Corporate
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
1447585 Ontario Ltd.                  Richard J. Smith                    Richard J. Smith, President and
                                                                          Corporate Secretary
- -------------------------------------------------------------------------------------------------------------
Emera Energy U.S. Subsidiary No. 1,   A. Michael Burnell                  A. Michael Burnell, President and
Inc.                                                                      Secretary
                                                                          Richard J. Smith, Assistant
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
Emera Energy U.S. Subsidiary No. 2,   A. Michael Burnell                  A. Michael Burnell, President and
Inc.                                                                      Secretary
                                                                          Richard J. Smith, Assistant
                                                                          Secretary
- -------------------------------------------------------------------------------------------------------------
BHE                                   Robert S. Briggs                    Robert S. Briggs, Retired
                                      Jane J. Bush (President of          Chairman of the Board, President
                                      Coastal Ventures)                   and CEO (Director of Emera)
                                      Carroll R. Lee                      Christopher G. Huskilson, Vice
                                      Normal A. Ledwin (President and     Chairman (COO of NSPI)
                                      CEO and Director of Eastern Maine   Carroll R. Lee, President and COO
                                      Healthcare)                         David McD. Mann, Chairman
                                      Elizabeth A. MacDonald (Vice        (President and CEO and Director
                                      President, Human Resources of       of Emera)
                                      Emera)                              Frederick S. Samp, Vice
                                      Richard J. Smith (Corporate         President, Finance and Law, CFO
                                      Secretary and General Counsel of    Paul A. LeBlanc, Vice President,
                                      Emera, Assistant Corporate          Human Resources and Information
                                      Secretary of Emera US Holdings,     Services
                                      Inc., and BHE Holdings, Inc.)       Andrew Landry, General Counsel,
                                      Ronald E. Smith (Senior Vice        Corporate Secretary and Clerk
                                      President and CFO of Emera)         Mathieu A. Poulin, Treasurer
- -------------------------------------------------------------------------------------------------------------
East Branch Improvement Co.           Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Douglas S. Morrell (BHE Manager,    Andrew Landry, Clerk
                                      Plant Engineering & Support
                                      Services)
                                      Jeffrey M. Martin (Employee of
                                      Great Northern Paper (40% owner
                                      of EBI))
                                      George Gervais (Employee of Great
                                      Northern Paper)
- -------------------------------------------------------------------------------------------------------------
Sawtelle Brook Dam & Improvement      Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Frederick S. Samp                   Andrew Landry, Clerk
                                      Jeffrey M. Martin (Employee of
                                      Great Northern Paper)
                                      George Gervais (Employee of Great
                                      Northern Paper)
- -------------------------------------------------------------------------------------------------------------
Godfrey's Falls Dam Company           Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Frederick S. Samp                   Andrew Landry, Clerk
                                      Jeffrey M. Martin (Employee of
                                      Great Northern Paper)
                                      George Gervais (Employee of Great
                                      Northern Paper)
- -------------------------------------------------------------------------------------------------------------
Bangor Var Co., Inc                   Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Frederick S. Samp                   Andrew Landry, Clerk
- -------------------------------------------------------------------------------------------------------------
Bangor Energy Resale, Inc.            Robert S. Briggs                    Robert S. Briggs, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Dean A. Christiansen (President,    Andrew Landry, Clerk
                                      Lord Securities Corporation)
- -------------------------------------------------------------------------------------------------------------
Caretaker, Inc.                       Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Stephen R. Desmond, Vice
                                      Frederick S. Samp                   President (BHE Manager, Marketing
                                                                          Services)
                                                                          Frederick S. Samp, Treasurer
                                                                          Andrew Landry, Clerk
- -------------------------------------------------------------------------------------------------------------

                                       27
<PAGE>

- -------------------------------------------------------------------------------------------------------------
Bangor Fiber Company, Inc             Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Lawrence Billings, Vice President
                                      Frederick S. Samp                   (BHE Manager, Transmission &
                                                                          Distribution)
                                                                          Mathieu A. Poulin, Treasurer
                                                                          Andrew Landry, Clerk
- -------------------------------------------------------------------------------------------------------------
Bangor Line Company                   Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Lawrence Billings, Vice President
                                      Frederick S. Samp                   (BHE Manager, Transmission &
                                                                          Distribution)
                                                                          Mathieu A. Poulin, Treasurer
                                                                          Andrew Landry, Clerk
- -------------------------------------------------------------------------------------------------------------
Sebois Dam Company                    Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Frederick S. Samp                   Robert S. Briggs, Clerk
- -------------------------------------------------------------------------------------------------------------
Pleasant River Gulf Improvement Co.   Robert S. Briggs                    Carroll R. Lee, President
                                      Carroll R. Lee                      Frederick S. Samp, Treasurer
                                      Frederick S. Samp                   Robert S. Briggs, Clerk
- -------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Addresses and compensation information are omitted.

(b) Compensation of Certain Employees. As to regular employees of such companies
who are not directors or officers of any one of them, list the name, address and
aggregate annual rate of compensation of all those who receive $20,000 or more
per year from all such companies.

Note: Addresses and compensation information are omitted.

(c) Indebtedness to System Companies. As to every such director, trustee or
officer as aforesaid, who is indebted to any one of such companies, or on whose
behalf any such company has now outstanding and effective any obligation to
assume or guarantee payment of any indebtedness to another, and whose total
direct and contingent liability to such company exceeds the sum of $1,000, give
the name of such director, trustee, or officer, the name of such company and
describe briefly the nature and amount of such direct and contingent
obligations.

None.

(d) Contracts.

    If any such director, trustee or officer as aforesaid:

(1) Has an existing contract with any such company (exclusive of an employment
contract which provides for no compensation other than that set forth in
paragraph (a) of this Item); or,

(2) Either individually or together with the members of his immediate family
owns, directly or indirectly, 5% or more of the voting securities of any third
person with whom any such company has an existing contract; or,

                                       28
<PAGE>

(3) Has any other beneficial interest in an existing contract to which any such
company is a party;

Describe briefly the nature of such contract, the names of the parties thereto,
the terms thereof and the interest of such officer, trustee or director therein.

Messrs. Briggs, Lee, Samp and LeBlanc (the "executive officers" or the "named
executive officers" are parties to Supplemental Benefit Agreements with BHE
under which additional retirement benefits are to be paid. Said agreements
define the total pension amount to be paid to the executive officer by BHE, with
the supplemental amount defined as the difference between this total amount due
and the amount due to the executive officer under the tax qualified pension plan
applicable to all employees. The total amount of pension benefit, as defined
under the Supplemental Benefit Agreements, is a function of the executive
officer's age at retirement and his average total compensation over a three-year
period. Under the Supplemental Benefit Agreements, no pension amount would be
due until the executive officer reaches age 55. At age 55, the executive officer
would be entitled to receive 50% of his or her average total compensation over a
three-year period. The total pension amount to be paid upon retirement would
increase proportionately until a retirement age of 62, at which point the
executive officer would be entitled to receive upon retirement 75% of his or her
average total compensation over a three-year period.

     Mr. Briggs was a party to such a Supplemental Benefit Agreement at the time
of his retirement effective October 10, 2001.

     The named executive officers are parties to agreements under which in the
event 1) of a change of control of the Company as defined in the agreements and
2) the covered party leaves the employment of the Company within one year after
the change of control, he would be entitled to receive a payment equal to two
years' salary based upon his average salary over the past three years. He would
also be entitled to receive the Company's standard health, life insurance and
disability benefits for a period of two years. Based upon the completion of the
Company's merger with Emera Inc., the named executive officers are entitled to
receive this benefit upon leaving the employment of the Company prior to October
10, 2002. Mr. Briggs' retirement effective October 10, 2001 constituted such a
termination of employment pursuant to the terms of such an agreement.

(e) Banking Connections. If any such director, trustee or officer, is an
executive officer, director, partner, appointee or representative of any bank,
trust company, investment banker, or banking association or firm, or of any
corporation a majority of whose stock having the unrestricted right to vote for
the election of directors, is owned by any bank, trust company, investment
banker, or banking association or firm, state the name of such director or
officer, describe briefly such other positions held by him and indicate which of
the rules under Section 17 (c) authorizes the registrant and subsidiary
companies of which he is a director or officer to retain him in such capacity.

     Three members of Emera's current board of directors also serve on the
boards of banks. Kenneth C. Rowe is currently a director of the Royal Bank of
Canada. Dr. Elizabeth

                                       29
<PAGE>

Parr-Johnston and Paul D. Sobey both serve as directors of the Bank of Nova
Scotia. All three directors are "double outside" directors, which means that
they are neither officers of Emera nor of their respective affiliated banks.
These directors continue in office pursuant to a no-action letter request
submitted by Emera to the SEC on October 9, 2001.

                    INTERESTS OF TRUSTEES IN SYSTEM COMPANIES

17. Describe briefly the nature of any substantial interest which any trustee
under indentures executed in connection with any outstanding issue of securities
of the registrant or any subsidiary thereof, has in either the registrant or
such subsidiary, and any claim which any such trustee may have against the
registrant or any subsidiary; provided, however, that it shall not be necessary
to include in such description any evidences of indebtedness owned by such
trustee which were issued pursuant to such an indenture.

Emera has a Trust Indenture with Montreal Trust Company of Canada. However,
there is no interest which the Trustee has in Emera.

Pursuant to the issuance of various first mortgage bond issues, all of BHE's
property, real, personal or mixed, including real estate, easement, lines,
poles, wires, generating stations, buildings and equipment, is subject to the
lien of a Mortgage and Deed of Trust Securing First Mortgage Bonds dated as of
July 1, 1936, with Citibank, N.A. (formerly City Bank Farmers Trust Company) as
Trustee.

Pursuant to the issuance of various additional financings, all of BHE's
property, real, personal or mixed, including real estate, easement, lines,
poles, wires, generating stations, and buildings is further subject to the lien
of a General and Refunding Mortgage Indenture and Deed of Trust dated as of June
1, 1995, with The Chase Manhattan Bank (formerly Chemical Bank) as Trustee. This
mortgage presently serves as a "second mortgage" on BHE's property, but will
become BHE's first mortgage once all outstanding first mortgage bonds are
retired.


                    SERVICE, SALE AND CONSTRUCTION CONTRACTS

18. As to each service, sales or construction contract (as defined in paragraphs
(19) to (21) of Section 2(a) of the Act) which the registrant and any subsidiary
company thereof has had in effect within the last three months, describe briefly
the nature of such contract, the name and address of the parties thereto, the
dates of execution and expiration, and the compensation to be paid thereunder.
Attach typical forms of any such contracts as an exhibit to this registration
statement. If the other party to any such contract is a mutual service company
or a subsidiary service company which is a member of the same holding company
system as the registrant and as to which the Commission has made a favorable
finding in accordance with Rule 13-22, specific reference may be made to the
application or declaration filed by such company pursuant to Rule 13-22 and no
further details need be given as to such contracts.

                                       30
<PAGE>

     BHE has Support Service Agreements with its CareTaker, Bangor Line and
Bangor Fiber subsidiaries. Each has an indefinite term and is subject to
cancellation by either party on 60 days notice. Billing for services is based
upon actual services provided and is charged based upon a fully allocated cost
methodology established by the Maine Public Utilities Commission. These services
include: purchasing services, billing services, inventory management,
engineering services, environmental services, marketing services, public
relations services, human resources services, regulatory support services, tax,
audit or accounting services, equity or debt financing services, legal services,
acquisition, leasing or disposition analysis, risk management, evaluation,
control or insurance services, state, federal or legislative services,
operations and maintenance evaluations, training services, construction and
maintenance services, construction management, computer, communications and
information processing services, real estate services, transportation services,
management services, and marketing services.

For the period 10/1/2000-9/30/2001, each of these companies paid BHE the
following amounts for support services

CareTaker:                $17,180.44
Bangor Line:              None
Bangor Fiber:             $3,825.56


                                   LITIGATION

19. Describe briefly any existing litigation of the following descriptions, to
which the registrant or any subsidiary company thereof is a party, or of which
the property of the registrant or any such subsidiary company is the subject,
including the names of the parties and the court in which such litigation is
pending:

(1) Proceedings to enforce or to restrain enforcement of any order of a State
commission or other governmental agency;

None.

(2) Proceedings involving any franchise claimed by any such company;

None.

(3) Proceedings between any such company and any holder, in his capacity as
such, of any funded indebtedness or capital stock issued, or guaranteed by such
company, or between any such company and any officer thereof;

None.

(4) Proceedings in which any such company sues in its capacity as owner of
capital stock or funded indebtedness issued or guaranteed by any other company;

                                       31
<PAGE>

None.

(5) Each other proceeding in which the matter in controversy, exclusive of
interest and costs, exceeds an amount equal to 2% of the debit accounts shown on
the most recent balance sheet of such company.

NSPI has filed amended income tax returns for previous years that increase the
tax depreciation (capital cost allowance) available to be deducted against the
company's future taxable income. Those returns were re-assessed by the Canada
Customs and Revenue Agency which disallowed the deductions claimed. A notice of
objection has been filed with respect to the re-assessments and the issue is
being litigated. Without the benefit of this additional deduction, it is
estimated that the company's tax liability at December 31, 2000 would have been
approximately $79 million (1999 - $39 million). If the company is unsuccessful
in this matter, it will apply to the Nova Scotia Utility and Review Board to
recover these costs through the regulatory process. At December 31, 2000,
providing for the effect of the amended returns, NSPI's unrecorded future income
tax asset has decreased by approximately $120 million.

                                       32
<PAGE>

                                    EXHIBITS

EXHIBIT A - Furnish a corporate chart showing graphically relationships existing
between the registrant and all subsidiary companies thereof as of the same date
as the information furnished in the answer to Item 8. The chart should show the
percentage of each class of voting securities of each subsidiary owned by the
registrant and by each subsidiary company.

A corporate chart of the Emera system is provided, as Exhibit A, under cover of
Form SE.

EXHIBIT B - With respect to the registrant and each subsidiary company thereof,
furnish a copy of the charter, articles of incorporation, trust agreement,
voting trust agreement, or other fundamental document of organization, and a
copy of its by-laws, rules and regulations, or other instruments corresponding
thereto. If such documents do not set forth fully the rights, priorities and
preferences of the holders of each class of capital stock described in the
answer to Item 8 (b) and those of the holders of any warrants, options or other
securities described in the answer to Item 8 (d), and of any limitations on such
rights, there shall also be included the text appearing on each certificate, or
a copy of each resolution or other document establishing or defining such rights
and limitations. The text of each such document shall be in the amended form
effective at the date of filing the registration statement or shall be
accompanied by copies of any amendments to it then in effect.

The information concerning the Emera US Holdings, Inc. and BHE Holdings, Inc. is
provided under cover of Form SE. The documents of organization related to Emera,
BHE, Bangor Var, and Chester SVC Partnership have been provided to the
Commission previously as Exhibits A-1 through A-7 to Emera's application in SEC
File No. 070-09787 and are incorporated by reference. The organizational
documents related to the non-utility and non-holding companies subsidiaries are
excluded by waiver under Rule 20 (a) (3).

EXHIBIT C

(a) With respect to each class of funded debt shown in the answers to Items 8(a)
and 8(c), submit a copy of the indenture or other fundamental document defining
the rights of the holders of such security, and a copy of each contract or other
instrument evidencing the liability of the registrant or a subsidiary company
thereof as endorser or guarantor of such security. Include a copy of each
amendment of such document and of each supplemental agreement, executed in
connection therewith. If there have been any changes of trustees thereunder,
such changes, unless otherwise shown, should be indicated by notes on the
appropriate documents. No such indenture or other document need be filed in
connection with any such issue if the total amount of securities that are now,
or may at any time hereafter, be issued and outstanding thereunder does not
exceed either $1,000,000 or an amount equal to 10% of the total of the debit
accounts shown on the most recent balance sheet of the registrant or subsidiary
company which issued or guaranteed such securities or which is the owner of
property subject to the lien of such securities, whichever of said sums is the
lesser.

                                       33
<PAGE>

The information is excluded by waiver under Rule 20 (a) (3).

(b) As to each outstanding and uncompleted contract or agreement entered into by
registrant or any subsidiary company thereof relating to the acquisition of any
securities, utility assets (as defined in Section 2 (a) (18) of the Act), or any
other interest in any business, submit a copy of such contract or agreement and
submit details of any supplementary understandings or arrangements that will
assist in securing an understanding of such transactions.

None.

EXHIBIT D - A consolidating statement of income and surplus of the registrant
and its subsidiary companies for its last fiscal year ending prior to the date
of filing this registration statement, together with a consolidating balance
sheet of the registrant and its subsidiary companies as of the close of such
fiscal year.

A copy of Emera's consolidated financial statements is enclosed as Exhibit D-1.
BHE's Annual Report on Form 10-K, filed with the SEC on March 27, 2001 is
incorporated by reference to SEC File No. 001-10922.

EXHIBIT E - For each public utility company and natural gas producing and pipe
line property in the holding company system of the registrant, furnish the
following maps (properties of associate companies operating in contiguous or
nearby areas may be shown on the same map, provided property and service areas
of each company are shown distinctively); provided that all maps shall be filed
in paper under cover of Form SE if submitted by an electronic filer.

(1) Map showing service area in which electric service is furnished, indicating
the names of the companies serving contiguous areas;

(2) Electric system map showing location of electric property (exclusive of
local distribution lines) owned and/or operated, and information as follows:

     (a)  Generating plants - kind and capacity;

     (b)  Transmission lines - voltage, number of circuits, kind of supports,
          kind and size of conductors;

     (c)  Transmission substations - capacity.

     (d)  Distribution substations - capacity.

     (e)  Points of interconnection with all other electric utility companies
and with all electrical enterprises operated by municipal or governmental
agencies, giving names of such companies and enterprises;

                                       34
<PAGE>

(3) Map showing service area in which gas service is furnished, indicating the
names of companies serving contiguous areas;

(4) Gas system map showing location of gas property (exclusive of low pressure
local distribution lines) owned and/or operated, and information as follows:

     (a) Generating plants - kind and daily capacity;

     (b) Holders - kind and capacity;

     (c) Compressor stations - capacity in horsepower;

     (d) Transmission pipe lines - size, approximate average transmission
pressure and the estimated daily delivery capacity of the system;

     (e) Points of interconnection with all other private and public gas
utilities, pipe lines or producing enterprises; giving names of such companies
and other enterprises;

     (f) General location and outline of gas producing and reserve areas and
diagrammatic location of gathering lines.

Information requested in Exhibit E is omitted by waiver under Rule 20 (a) (3).

EXHIBIT F - Furnish an accurate copy of each annual report for the last fiscal
year ending prior to the date of the filing of this registration statement,
which the registrant and each subsidiary company thereof has previously
submitted to its stockholders. For companies for which no reports are submitted
the reason for omission should be indicated; provided that electronic filers
shall submit such reports in paper format only under cover of Form SE (259.603).

A copy of Emera's Annual Report is provided, as Exhibit F-1 under cover of Form
SE. BHE's Annual Report on Form 10-K, filed with the SEC on March 27, 2001 is
provided, as Exhibit F-2 under cover of Form SE.

EXHIBIT G - Furnish a copy of each annual report which the registrant and each
public utility subsidiary company thereof shall have filed with any State
commission having jurisdiction to regulate public utility companies for the last
fiscal year ending prior to the date of filing this registration statement. If
any such company shall have filed similar reports with more than one such State
commission, the registrant need file a copy of only one of such reports provided
that notation is made of such fact, giving the names of the different
commissions with which such report was filed, and setting forth any differences
between the copy submitted and the copies filed with such other commissions. In
the event any company submits an annual report to the Federal Energy Regulatory
Commission but not to a State commission, a copy of such report should be
furnished. In the case of a registrant or any public utility subsidiary company
for which no report is appended the reasons for such omission should be
indicated such as "No such reports required or filed",

                                       35
<PAGE>

provided that electronic filers shall submit such reports in paper format only
under cover of Form SE.

A copy of BHE's Form 1 filed on March 31, 2001 is provide, as Exhibit G-1, under
cover of Form SE. Under Maine PUC rules, BHE files this form with the state
commission. A copy of MEPCO's Form 1 is also provided, as Exhibit G-2 under
cover of Form SE. Chester SVC is not required to file a Form 1.

EXHIBIT H - Typical forms of service, sales, or construction contracts described
in answer to Item 18.

Copies of the Support Services Agreements between BHE and CareTaker, Bangor Line
and Bangor Fiber are being provided as Exhibit H under cover of Form SE.

                                       36
<PAGE>

         This registration statement comprises:

         (a) Pages numbered 2 to 39, consecutively.
         (b) The following Exhibits:


                                  EXHIBIT INDEX


Exhibit              Description

   A      Corporate Chart of the Emera System   Filed under cover of Form SE
  B-1     Formation documents of Emera US       Filed under cover of Form SE
          Holdings, Inc. and BHE Holdings,
          Inc.
  B-2     Formation documents of Emera, BHE,    Incorporated by reference to SEC
          Bangor Var, and Chester SVC           File No. 070-09787
          Partnership
  D-1     Emera's consolidated financial        Filed electronically as Ex. 99.1
          statements
  D-2     BHE's Annual Report on Form 10-K      Incorporated by reference to SEC
                                                File No. 001-10922.
  F-1     Emera's Annual Report                 Filed under cover of Form SE
  F-2     BHE's Annual Report on Form 10-K      Filed under cover of Form SE
  G-1     BHE's Form 1                          Filed under cover of Form SE
  G-2     MEPCO's Form 1                        Filed under cover of Form SE
   H      Support Services Agreements           Filed under cover of Form SE
          between BHE and CareTaker, Bangor
          Line and Bangor Fiber

                                       37
<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the registrants have caused this registration statement to be duly signed
on their behalf in the Halifax, Nova Scotia, Canada on the 9th day of January
2002.

                                      Emera Inc.; Emera US Holdings, Inc., and
                                      BHE Holdings, Inc.

                                      By:_____________________________________
                                      Richard J. Smith
                                      Corporate Secretary and General Counsel
                                      of Emera Inc. and Assistant Corporate
                                      Secretary of Emera US Holdings, Inc. and
                                      BHE Holdings Inc.


Attest:___________________
Title:____________________

                                       38
<PAGE>

                                  VERIFICATION

Halifax, Nova Scotia, Canada

     The undersigned being duly sworn and deposes and says that he has duly
executed the attached registration statement dated January 9, 2002 for and on
behalf of Emera Incorporated, Emera US Holdings Inc., and BHE Holdings Inc.;
that he is the Corporate Secretary and General Counsel of Emera Incorporated and
the Assistant Corporate Secretary each of Emera US Holdings Inc. and BHE
Holdings Inc.; and that all action by stockholders, directors and other bodies
necessary to authorize deponent to execute and file such instrument has been
taken. Deponent further says that he is familiar with such instrument and the
contents thereof, and that the facts therein set forth are true to the best of
his knowledge, information and belief.

                                      ___________________________
                                      Richard J. Smith

(Official Seal)

Subscribed and sworn to before me, a Commissioner of the Supreme Court of Nova
Scotia, this 9th day of January 2002.

____________________________________

                                       39

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>ex991.txt
<DESCRIPTION>EMERA'S CONSOLIDATED FINANCIAL STATEMENTS
<TEXT>



                                   EMERA INC.

                       Consolidated Financial Statements

                           December 31, 2000 and 1999


                               FS ( 2 3 1 - 10:45)

<PAGE>

                               MANAGEMENT REPORT

Management's Responsibility for Financial Reporting

The accompanying consolidated financial statements of Emera Inc. and the
information in this annual report are the responsibility of management and have
been approved by the Board of Directors (Board).

The consolidated financial statements have been prepared by management in
accordance with generally accepted accounting principles. When alternative
accounting methods exist, management has chosen those it deems most appropriate
in the circumstances. Nova Scotia Power Inc. (NSPI), Emera Inc.'s electric
utility and principal subsidiary, is regulated by the Nova Scotia Utility and
Review Board, which also examines and approves NSPI's accounting policies and
practices. In preparation of these statements, estimates are sometimes necessary
when transactions affecting the current accounting period cannot be finalized
with certainty until future periods. Management believes that such estimates,
which have been properly reflected in the accompanying consolidated financial
statements, are based on careful judgements and are within reasonable limits of
materiality. Management has determined such amounts on a reasonable basis in
order to ensure that the consolidated financial statements are presented fairly
in all material respects. Management has prepared the financial information
presented elsewhere in the annual report and has ensured that it is consistent
with that in the consolidated financial statements.

Emera maintains systems of internal accounting and administrative controls of
high quality, consistent with reasonable cost. Such systems are designed to
provide reasonable assurance that the financial information is relevant,
reliable and accurate and that Emera's assets are appropriately accounted for
and adequately safeguarded.

The Board is responsible for ensuring that management fulfills its
responsibilities for financial reporting and is ultimately responsible for
reviewing and approving the consolidated financial statements. The Board carries
out this responsibility principally through its Audit Committee.

The Audit Committee is appointed by the Board, and its members are directors who
are not officers or employees of Emera Inc. The Audit Committee meets
periodically with management, as well as with the internal auditors and with the
external auditors, to discuss internal controls over the financial reporting
process, auditing matters and financial reporting issues, to satisfy itself that
each party is properly discharging its responsibilities, and to review the
annual report, the consolidated financial statements and the external auditors'
report. The Audit Committee reports its findings to the Board for consideration
when approving the consolidated financial statements for issuance to the
shareholders. The Audit Committee also considers, for review by the Board and
approval by the shareholders, the appointment of the external auditors.

The consolidated financial statements have been audited by Ernst & Young LLP,
the external auditors, in accordance with generally accepted auditing standards
on behalf of the shareholders. Ernst & Young LLP has full and free access to the
Audit Committee.

February 1, 2001

Signed: "David McD. Mann"
President and Chief Executive Officer

Signed: "Ronald E. Smith"

                               FS ( 2 3 1 - 10:45)                        Page 1

<PAGE>

Senior Vice-President and Chief Financial Officer

                                AUDITORS' REPORT

To the Shareholders of
Emera Inc.

We have audited the consolidated balance sheets of Emera Inc. as at December 31,
2000 and 1999, and the consolidated statements of earnings, retained earnings
and cash flow for the years then ended. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in Canada. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all
material respects, the financial position of the company as at December 31, 2000
and 1999 and the results of its operations and the changes in its cash flows for
the years then ended in accordance with accounting principles generally accepted
in Canada.


                                                Signed "Ernst & Young LLP"
Halifax, Canada                                            Chartered Accountants
February 1, 2001


                               FS ( 2 3 1 - 10:45)                        Page 2

<PAGE>

Emera Inc.
Consolidated Statements of Earnings
Year Ended December 31
millions of dollars (except earnings per common share)

                                                              2000       1999
- --------------------------------------------------------------------------------
Revenue
   Electric                                                  $813.3     $790.2
   Fuel Oil                                                    73.8       17.8
   Other                                                        9.4        8.6
- --------------------------------------------------------------------------------
                                                              896.5      816.6
- --------------------------------------------------------------------------------
Cost of operations
  Fuel for generation and power purchased                     273.9      267.5
  Cost of fuel oil sold                                        67.7       15.3
  Operating, maintenance and general                          168.0      155.5
  Grants in lieu of property taxes                             11.0        8.9
  Provincial capital tax                                        7.2        7.1
  Depreciation                                                 98.3       94.8
- --------------------------------------------------------------------------------
                                                              626.1      549.1
- --------------------------------------------------------------------------------
Earnings from operations                                      270.4      267.5
Equity earnings in Maritimes & Northeast Pipeline               6.0        5.3
Amortization                                                  (19.0)     (23.1)
Allowance for funds used during construction                    4.8        4.8
- --------------------------------------------------------------------------------
Earnings before interest and taxes                            262.2      254.5
Interest (note 6)                                             135.4      136.5
- --------------------------------------------------------------------------------
Earnings before taxes                                         126.8      118.0
Income tax (note 7)                                            12.5        6.3
- --------------------------------------------------------------------------------
Net earnings before non-controlling interest                  114.3      111.7
Non-controlling interest (notes 7 and 12)                       9.9       11.3
- --------------------------------------------------------------------------------
Net earnings applicable to common shares                     $104.4     $100.4
================================================================================
Earnings per common share                                     $1.20      $1.16
================================================================================


See accompanying notes to the consolidated financial statements.


                               FS ( 2 3 1 - 10:45)                        Page 3

<PAGE>

Emera Inc.
Consolidated Statements of Retained Earnings
Year Ended December 31
millions of dollars

                                                              2000       1999
- --------------------------------------------------------------------------------
Retained earnings at beginning of year                       $265.8     $238.7
Adjustments (note 3)                                           (0.2)      (1.1)
Net earnings applicable to common shares                      104.4      100.4
- --------------------------------------------------------------------------------
                                                              370.0      338.0

Dividends                                                      73.2       72.2
- --------------------------------------------------------------------------------
Retained earnings at end of year                             $296.8     $265.8
================================================================================


See accompanying notes to the consolidated financial statements.


                               FS ( 2 3 1 - 10:45)                        Page 4

<PAGE>

Emera Inc.
Consolidated Balance Sheets
As at December 31
millions of dollars

                                     ASSETS

                                                              2000       1999
- --------------------------------------------------------------------------------
Current assets
  Cash                                                         $5.7       $2.7
  Accounts receivable (note 9)                                100.5       63.9
  Income tax recoverable                                        0.8        -
  Inventory                                                    85.8       78.9
  Prepaid expenses                                              3.8        3.7
- --------------------------------------------------------------------------------
                                                              196.6      149.2
- --------------------------------------------------------------------------------
Long-term receivable                                            3.5        2.2
- --------------------------------------------------------------------------------
Deferred charges (note 10)                                    295.5      319.5
- --------------------------------------------------------------------------------
Future income tax asset (note 7)                                7.2        6.7
- --------------------------------------------------------------------------------
Goodwill                                                        7.0        6.8
- --------------------------------------------------------------------------------
Investment in Maritimes & Northeast Pipeline                   67.0       54.7
- --------------------------------------------------------------------------------
Property, plant and equipment (note 8)                      2,319.7    2,315.5
Construction work in progress                                  54.5       47.3
- --------------------------------------------------------------------------------
                                                            2,374.2    2,362.8
- --------------------------------------------------------------------------------
                                                           $2,951.0   $2,901.9
================================================================================

                      LIABILITIES AND SHAREHOLDERS' EQUITY

- --------------------------------------------------------------------------------
Current liabilities
  Current portion of long-term debt (note 13)                $120.5       $8.1
  Short-term debt (note 14)                                   281.7      320.4
  Accounts payable and accrued charges                        162.3      133.0
  Income tax payable                                            -          0.2
  Dividends payable                                             2.7        3.4
- --------------------------------------------------------------------------------
                                                              567.2      465.1
- --------------------------------------------------------------------------------
Future income tax liability (note 7)                            1.7        0.5
- --------------------------------------------------------------------------------
Deferred credits                                                0.4        2.2
- --------------------------------------------------------------------------------
Long-term debt (note 13)                                    1,155.0    1,260.5
- --------------------------------------------------------------------------------
Non-controlling interest (note 12)                            249.1      231.3
- --------------------------------------------------------------------------------
Shareholders' equity
  Common shares (note 11)                                     680.8      676.5
  Retained earnings                                           296.8      265.8
- --------------------------------------------------------------------------------
                                                              977.6      942.3
- --------------------------------------------------------------------------------
                                                           $2,951.0   $2,901.9
================================================================================

Commitments (note 16)

See accompanying notes to the consolidated financial statements.

APPROVED ON BEHALF OF THE BOARD OF DIRECTORS
Chairman                                   President and Chief Executive Officer
Signed: "Derek Oland"                      Signed: David McD. Mann


                              FS ( 2 3 1 - 10:45)                         Page 5

<PAGE>

Emera Inc.
Consolidated Statements of Cash Flow
Year Ended December 31
millions of dollars (except operating cash flow per common share)


                                                              2000       1999
- --------------------------------------------------------------------------------
Operating activities
  Net earnings applicable to common shares                   $104.4     $100.4
  Non-cash items
    Depreciation                                               98.3       94.8
    Amortization of deferred charges                           43.7       30.7
    Equity earnings in Maritimes & Northeast Pipeline          (6.0)      (5.3)
    Amortization                                               19.0       23.1
    Allowance for funds used during construction               (4.8)      (4.8)
    Future income taxes                                        (2.2)      (7.2)
    Additions to deferred charges and credits                 (19.0)      (5.2)
- --------------------------------------------------------------------------------
Operating cash flow                                           233.4      226.5

Change in operating working capital                           (13.7)     (20.3)
- --------------------------------------------------------------------------------
Net cash provided by operating activities                     219.7      206.2
- --------------------------------------------------------------------------------
Financing activities
  Reduction of short-term debt                                (39.8)     (33.3)
  Proceeds from issue of common shares                          4.3        4.0
  Issue of preferred shares by NSPI                            17.8       31.3
  Issue of long-term debt                                      15.0      180.0
  Retirements of long-term debt                                (8.1)    (158.4)
  Other financing activities                                   (6.2)     (11.0)
- --------------------------------------------------------------------------------
Net cash (used in) provided by financing activities           (17.0)      12.6
- --------------------------------------------------------------------------------
Investing activities
  Property, plant and equipment                              (120.2)    (108.8)
  Construction work in progress                                (2.4)      (7.0)
  Investment in Maritimes & Northeast Pipeline                 (2.3)     (18.4)
  Acquisitions                                                 (1.6)      (9.8)
- --------------------------------------------------------------------------------
Net cash used in investing activities                        (126.5)    (144.0)
- --------------------------------------------------------------------------------
Dividends on common shares                                    (73.2)     (72.2)
- --------------------------------------------------------------------------------
Increase in cash                                                3.0        2.6
Cash, beginning of year                                        $2.7       $0.1
- --------------------------------------------------------------------------------
Cash, end of year                                              $5.7       $2.7
================================================================================
Operating cash flow per common share                           $2.68      $2.60
================================================================================
Cash paid
Interest                                                     $135.1     $137.6
Income taxes                                                   11.7       11.5
Dividends on common shares                                     73.9       71.8
================================================================================

See accompanying notes to the consolidated financial statements.


                              FS ( 2 3 1 - 10:45)                         Page 6

<PAGE>

Emera Inc.
Notes to the Consolidated Financial Statements

December 31, 2000

Emera Inc. ("Emera" or the company), through its principal subsidiary, Nova
Scotia Power Inc. ("NSPI"), is engaged in the production and sale of electric
energy, which is regulated by the Nova Scotia Utility and Review Board ("UARB").
Emera follows Canadian generally accepted accounting principles ("GAAP"). NSPI's
accounting policies are subject to examination and approval by the UARB and are
similar to those being used by other companies in the electric utility industry.

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     a.   Consolidation

          The consolidated financial statements include the accounts of Emera
          Inc. and its wholly-owned subsidiaries.

     b.   Allowance for Funds Used During Construction

          For the regulated electric business carried on by NSPI, the company
          provides for the cost of financing construction work in progress by
          including an allowance for funds used during construction as an
          addition to the cost of property constructed, using a weighted average
          cost-of-capital. This allowance will be charged to operations through
          depreciation over the service life of the related assets and recovered
          through future revenues.

     c.   Amortization

          In accordance with regulatory authority, assets of NSPI which are not
          currently being used and are not expected to provide service to
          customers in the foreseeable future are amortized over five years.

          2000
          The UARB approved NSPI's request to amortize the cost of the Glace Bay
          generating station over five years and to recognize site restoration
          costs previously unaccrued in 2000.

          1999
          The Point Aconi generating station became operational in March 1994.
          In order to enhance rate stability, the UARB approved NSPI's request
          to defer and amortize a portion of the depreciation and interest
          expense pertaining to Point Aconi, together with an imputed
          cost-of-capital charge. Amortization was completed in 1999.


                              FS ( 2 3 1 - 10:45)                         Page 7

<PAGE>

     d.   Property, Plant and Equipment

          Property, plant and equipment are recorded at original cost net of
          contributions in aid of construction. When property, plant and
          equipment are replaced or retired, the original cost plus any removal
          costs incurred (net of salvage) are charged to accumulated
          depreciation.

          Depreciation is determined by the straight-line method, based on the
          estimated remaining service lives of the depreciable assets in each
          category. The estimated average service lives for the major categories
          of plant in service are summarized as follows:

                                            Average Service Life
          Functions                               in Years
          ------------------------------------------------------
          Generation
            Thermal                                  43
            Gas turbine                              34
            Hydroelectric                            77
          Transmission                               45
          Distribution                               31
          Other plant & equipment                    15

          In accordance with regulatory authority, assets of NSPI which are not
          currently being used, but will be useful in providing future service
          to customers, are not depreciated. Financing costs associated with
          assets not currently being used are deferred as incurred. Depreciation
          will occur when the asset goes into service. Significant costs in
          removing the asset from service may be deferred and amortized to
          earnings over a five-year period, subject to regulatory approval.
          Significant costs to return the asset to service are added to the
          capital cost of the asset.

     e.   Income Taxes

          Emera and its subsidiaries, except NSPI, follow the future income tax
          method of accounting for income taxes. NSPI uses the taxes-payable
          method.

     f.   Inventory

          Inventories of materials and supplies are valued at the lower of
          average cost and market. Coal and oil inventory is valued at the lower
          of cost, using the first-in, first-out method, and net realizable
          value.


                              FS ( 2 3 1 - 10:45)                         Page 8

<PAGE>

     g.   Deferred Severance Costs

          In order to achieve rate stability, the UARB allows NSPI to defer the
          cost of large early retirement and severance programs, and amortize
          the resulting deferred charges on a straight-line basis over a
          three-year period, commencing in the period in which the program is
          initiated.

     h.   Employee Future Benefits

          Pension costs, and costs associated with non-pension post-retirement
          benefits such as health benefits to retirees and retirement awards,
          are actuarially determined using the projected unit credit method
          prorated on services and management's best estimate assumptions.
          Pension fund asset values are calculated using market values at
          year-end. The difference between pension expense and pension funding
          is recorded as a deferred asset or credit on the balance sheet.
          Adjustments arising from plan amendments are amortized on a
          straight-line basis over the expected average remaining service life
          of employees. The excess of the net actuarial gain (loss) over 10% of
          the greater of the accrued benefit obligation and the fair value of
          the plan assets is amortized on a straight-line basis over the
          expected average remaining service life of the active employees.

     i.   Foreign Currency Translation

          Monetary assets and liabilities denominated in foreign currencies are
          converted to Canadian dollars at rates of exchange prevailing at the
          balance sheet date. The resulting differences between the translation
          at the original transaction date and the balance sheet date are
          charged to operations as they arise.

          Assets and liabilities of self-sustaining foreign operations are
          translated using the exchange rates in effect at the balance sheet
          date and the results of operations at the average rates for the
          period.

     j.   Debt Financing and Defeasance Costs

          Financing costs pertaining to debt issues are amortized over the life
          of the related debt. The excess of the cost of defeasance investments
          over the face value of the related debt is deferred and amortized over
          the life of the defeased debt.

     k.   Hedging Instruments

          The company is party to derivative financial instrument contracts,
          mainly interest rate contracts, forward foreign exchange contracts,
          oil swap and weather temperature agreements, all of which are used to
          hedge existing


                               FS ( 2 3 1 - 10:45)                        Page 9

<PAGE>

          exposures. Premiums paid are deferred and recognized over the life of
          the agreements.

     l.   Investment in Maritimes & Northeast Pipeline

          The company's 12.5% equity investment in Maritimes & Northeast
          Pipeline is accounted for using the equity method whereby the amount
          of the investment is adjusted annually for the company's pro-rata
          share of the income or loss of Maritimes & Northeast Pipeline and
          reduced by the amount of any dividends received.

     m.   Goodwill

          Goodwill is stated at cost and is amortized using the straight-line
          method over 20 years. The company evaluates the carrying value of
          goodwill for potential impairment through on-going review and analysis
          of fair market value and expected earnings.

2.   CHANGE IN ACCOUNTING POLICIES

     In 2000 the company has prospectively adopted new accounting requirements
     regarding employee future benefits. The main components of this change are
     as follows:

     o    The costs associated with non-pension future benefits were previously
          expensed as incurred. Now an annual accrual will be made to recognize
          the expense over the service life of the employees.

     o    The discount rate used to calculate the liability accrual has
          previously been based on a management estimate, but is now based on
          the current yield on high quality debt instruments with cash flows
          that match the timing and amount of expected benefit payments.

     o    In order to account for the effect of applying this new standard
          prospectively, a transitional liability of $30 million, representing
          the effect of the changes on all prior years, will be amortized over
          the expected average remaining service life of the employee group.

     o    The impact on the current year's earnings of adopting this new
          requirement is approximately $5 million, including the effect of
          amortizing the transitional liability.

     In 2000 the company adopted new accounting requirements regarding income
     taxes. These new requirements caused no impact on the current or prior
     periods.

3.   ADJUSTMENTS TO RETAINED EARNINGS

     Effective January 1, 1999, the common shareholders of NSPI exchanged their
     common shares for common shares of NS Power Holdings Inc. (renamed to Emera
     Inc.) on a one-for-one basis. NSPI became a subsidiary of Emera. The Emera


                               FS ( 2 3 1 - 10:45)                       Page 10

<PAGE>

     common shares have substantially the same rights, privileges, restrictions
     and conditions as the NSPI common shares. NSPI's existing preferred shares
     are recorded as non-controlling interest in Emera. Reorganization costs of
     $1.1 million were charged to retained earnings in 1999.

4.   SEGMENT INFORMATION
     millions of dollars

     The company has three reportable segments: Nova Scotia Power Inc., Emera
     Fuels Inc. and Maritimes & Northeast Pipeline.

     The company evaluates performance based on earnings before interest and
     taxes. The accounting policies of the reportable segments are the same as
     those described in the summary of significant accounting policies.

     Reportable segments are determined based on Emera's operating activities.
     NSPI is engaged in the production and sale of electric energy; the
     Maritimes & Northeast Pipeline companies own a 12.5% equity investment in
     Maritimes & Northeast Pipeline; and Emera Fuels Inc. is engaged in the
     distribution of a full range of fuel oil products.

<TABLE>
<CAPTION>
                        Nova Scotia         Emera       Maritimes &     Other*           Total
                         Power Inc.       Fuels Inc.     Northeast
                                                         Pipeline

                        2000      1999    2000   1999   2000   1999   2000   1999     2000      1999
                     --------------------------------------------------------------------------------
<S>                  <C>       <C>       <C>    <C>     <C>    <C>    <C>    <C>   <C>       <C>
Revenues from        $  818.8  $  798.9  $73.8  $17.7     -      -    $3.9     -   $  896.5  $  816.6
external
customers

Depreciation             97.1      94.2    0.7    0.1     -      -     0.5   $0.5      98.3      94.8

Cost of operations      545.7     521.4   72.5   17.4   $0.9   $0.5    7.0    9.8     626.1     549.1

Net intersegment         25.4       4.3  (25.1)  (4.3)    -      -    (0.3)    -        -         -
revenues/(expenses)

Equity earnings            -         -      -      -     6.0    5.3     -      -        6.0       5.3

Earnings before         259.3     259.2    1.4    0.4    5.1    4.8   (3.6)  (9.9)    262.2     254.5
interest and taxes

Segment assets        2,838.7   2,811.8   29.3   19.1   69.5   57.0   13.5   14.0   2,951.0   2,901.9

Investing activities    121.4     114.1    2.8    9.0    2.3   18.4     -     2.5     126.5     144.0
</TABLE>

* Other consists of items related to corporate activities and other subsidiaries


                               FS ( 2 3 1 - 10:45)                       Page 11

<PAGE>

5.   EMPLOYEE FUTURE BENEFITS
     millions of dollars

     Emera maintains contributory defined-benefit pension plans which cover
     substantially all of its employees, and plans providing non-pension
     benefits for its retirees. The details of these plans are outlined below:

                                               Pension          Non-pension
                                               benefit plans    benefits plans

     Assumptions
     -----------
     Discount rate                                 6.75%            6.75%

     Long-term rate of return on plan assets       9.75%             -

     Rate of compensation increase                 4.25%            4.25%

     Health care trend - current                  12.00%           12.00%
                       - ultimate                  4.00%            4.00%

     Accrued benefit obligations
     ---------------------------
     Balance January 1, 2000                           $424.1           $29.1

     Current service cost for the year                    5.7             1.0

     Employee contributions                               4.8              -

     Interest cost during the year                       27.1             1.9

     Actuarial loss arising in the year                  37.9             2.7

     Benefits paid during the year                      (24.0)           (1.6)
     ---------------------------------------------------------------------------
     Balance December 31, 2000 $475.6 $33.1
     ===========================================================================

     Fair value of plan assets
     -------------------------
     Balance January 1, 2000                           $438.3              -

     Employee contributions during the year               4.8              -

     Contributions by NSPI during the year                8.2            $1.6

     Actual return on plan assets during the year        39.1              -

     Actuarial gain arising in the year                  14.1              -

     Benefits paid during the year                      (24.0)           (1.6)

     Administrative expenses                             (2.3)             -
     ---------------------------------------------------------------------------
     Balance December 31, 2000                         $478.2              -
     ===========================================================================

     Plan surplus (deficit)                              $2.6          ($33.1)

     Unamortized losses                                  27.1            29.5

     Accrued valuation allowance                         (8.1)             -
     ---------------------------------------------------------------------------
     Accrued benefit asset (liability)                  $21.6           ($3.6)
     ===========================================================================


                               FS ( 2 3 1 - 10:45)                       Page 12

<PAGE>

     Expense
     -------
     Current service costs                               $5.7            $1.0

     Interest on accrued benefits                        27.1             1.9

     Expected return on plan assets                     (39.1)             -

     Amortization of transitional liability               0.4             2.3

     Amortization of past service costs                   3.1              -

     Change in valuation allowance                        8.1              -
     ---------------------------------------------------------------------------
     Expense for 2000 $5.3 $5.2
     ===========================================================================

6.   INTEREST
     millions of dollars

                                                        2000            1999
     ---------------------------------------------------------------------------
     Interest on long-term debt                         $96.0           $98.2
     Amortization of debt financing and
       defeasance costs                                  20.9            20.8
     Interest on short-term debt                         19.2            18.6
     Foreign exchange (gains) loss                       (0.3)            0.7
     ---------------------------------------------------------------------------
                                                        135.8           138.3

     Less:
       Defeasance earnings and
         other interest income                           (0.4)           (1.8)
     ---------------------------------------------------------------------------
                                                       $135.4          $136.5
     ===========================================================================


                               FS ( 2 3 1 - 10:45)                       Page 13

<PAGE>

7.   INCOME TAXES
     millions of dollars

     The income tax provision differs from that computed using the statutory
     rates for the following reasons:

                                                 2000              1999
     -------------------------------------------------------------------------
     Earnings before taxes                  $126.8            $118.0
     -------------------------------------------------------------------------
     Income taxes, at statutory rates       $ 57.2   45.1%    $ 53.3    45.1%

     Unrecorded future income taxes
     on regulated earnings                   (49.2) (38.8)     (50.3)  (42.6)

     Equity earnings in Maritimes &
     Northeast Pipeline not subject to
     tax                                      (2.7)  (2.1)      (2.4)   (2.0)

     Large Corporations Tax                    6.1    4.8        6.0     5.1

     Change in future income tax
     asset resulting from rate
     change                                    0.9    0.7         -       -

     Other                                     0.2    0.2       (0.3)   (0.3)
     -------------------------------------------------------------------------
                                              12.5    9.9%       6.3     5.3%
                                                    ======             ======
     Income tax - current                     14.7              13.5
     -------------------------------------------------------------------------
     Income tax - future                    $ (2.2)           $ (7.2)

     The future income tax asset and liability comprise the following:

                                                     2000       1999
     ------------------------------------------------------------------
     Future income tax asset:

     Tax loss carryforwards                          $7.0       $6.3

     Other                                            0.2        0.4
     ------------------------------------------------------------------
                                                     $7.2       $6.7
     ==================================================================
     Future income tax liability:

     Property, plant and equipment                   $4.5       $1.8

     Deferred charges                                 1.9        1.8

     Tax loss carryforwards                          (4.7)      (3.1)
     ------------------------------------------------------------------
                                                     $1.7       $0.5
     ==================================================================


                               FS ( 2 3 1 - 10:45)                       Page 14

<PAGE>


NSPI has filed amended income tax returns for previous years that increase the
tax depreciation (capital cost allowance) available to be deducted against the
company's future taxable income. Those returns were reassessed by the Canada
Customs and Revenue Agency which disallowed the deductions claimed. A notice of
objection has been filed with respect to the reassessments and the issue is
expected to be litigated. Without the benefit of this additional deduction, it
is estimated that the company's tax liability at December 31, 2000, would have
been approximately $79 million (1999 - $39 million). If the company is
unsuccessful in this matter, it will apply to the UARB to recover these costs
through the regulatory process.

At December 31, 2000, providing for the effect of the amended returns, NSPI's
unrecorded future income tax asset has decreased by approximately $120 million
to $400 million. The asset consists of deductible temporary differences of $1.0
billion (1999 - $1.1 billion) and unused non-capital tax losses of approximately
$99 million (1999 - $156 million) which are expected to expire as follows:

        2002            $59.5 million
        2003            $30.4 million
        2004            $9.1 million

Non-controlling Interest

Non-controlling interest consists of NSPI preferred dividends less a net
recovery of income tax expense of $3.0 million (1999 - $2.0 million). The income
tax recovery of $8.1 million in 2000 (1999 - $7.3 million) is reflected as a
reduction of preferred dividends with an offsetting increase in income tax
expense.

                                                     2000       1999
     ------------------------------------------------------------------
      Preferred share dividend                       $12.9      $13.3
      Part VI.1 tax on preferred dividends           5.1        5.3
      Part I tax recovery related to the
      Part VI.1 tax deduction - current year         (5.1)      (5.3)
      Part I tax recovery related to the
      Part VI.1 tax deduction - prior years          (3.0)      (2.0)
     ------------------------------------------------------------------
                                                     $9.9       $11.3
     ==================================================================

8.   PROPERTY, PLANT AND EQUIPMENT
     millions of dollars
                                                   2000
     ---------------------------------------------------------------------
                                                Accumulated         Net
                                   Cost        Depreciation     Book Value
     ---------------------------------------------------------------------

      Generation
        Thermal                  $1,519.8        $  517.5         1,002.3
        Gas Turbine                  27.5            20.4             7.1
        Hydroelectric               346.0           107.2           238.8
      Transmission                  545.4           214.9           330.5
      Distribution                  883.8           347.7           536.1
      Other                         243.4            38.5           204.9
                                 $3,565.9        $1,246.2        $2,319.7
     =====================================================================


                               FS ( 2 3 1 - 10:45)                       Page 15

<PAGE>

                                                   1999
     ---------------------------------------------------------------------
                                               Accumulated         Net
                                   Cost       Depreciation     Book Value
     ---------------------------------------------------------------------

      Generation
        Thermal                  $1,498.7          $475.6        $1,023.1
        Gas Turbine                  27.4            20.0             7.4
        Hydroelectric               325.6           103.6           222.0
      Transmission                  543.9           204.2           339.7
      Distribution                  854.1           321.7           532.4
      Other                         232.7            41.8           190.9
                                 $3,482.4        $1,166.9        $2,315.5
     =====================================================================

     At December 31, 2000, assets which have been removed from service and are
     not being depreciated or amortized had a net book value of $nil (1999 -
     $35.1 million).

9.   ACCOUNTS RECEIVABLE SECURITIZATION

     On March 5, 1997, NSPI entered into an agreement with a financial
     institution to sell up to $88 million of trade receivables on a revolving
     basis. At December 31, 2000, trade receivables sold amounted to $72 million
     compared to $74 million in 1999. The agreement is scheduled to expire in
     2002.

10.  DEFERRED CHARGES
     millions of dollars

                                                         2000        1999
     ---------------------------------------------------------------------
      Unamortized debt financing and defeasance costs  $254.3      $272.4
      Accrued pension and non-pension benefit
        asset (note 5)                                   16.9        14.8
      Unamortized severance costs                         2.8         9.4
      Holdback on accounts receivable securitization      7.2         7.4
      Deferred coal bed methane exploration costs         5.5         5.5
      Other                                               8.8        10.0
     ---------------------------------------------------------------------
                                                       $295.5      $319.5
     =====================================================================


                               FS ( 2 3 1 - 10:45)                       Page 16

<PAGE>


11.   COMMON SHARES
      millions of dollars

      Authorized:

      Unlimited number of non-par value Common Shares.


      Issued and outstanding:

                                                  Millions of      Common
                                                    Shares     Share Capital
     -------------------------------------------------------------------------
      January 1, 1999
      Issued in exchange for all issued
       and outstanding common shares of NSPI
       under the reorganization described
       in note 3                                        86.80      $672.5
      Issued for cash under purchase plans               0.25         4.0
     -------------------------------------------------------------------------
      December 31, 1999                                 87.05       676.5

      Issued for cash under purchase plans               0.25         3.7
      Options exercised under Executive Stock
        Option Plan                                      0.05         0.6
     -------------------------------------------------------------------------
      December 31, 2000                                 87.35      $680.8
     =========================================================================

     The weighted average number of common shares outstanding during the year
     was 87.2 million (1999 - 86.9 million).

     Dividend Reinvestment and Employee Common Share Purchase Plans

     The company has a Common Shareholder Dividend Reinvestment Plan and an
     Employee Common Share Purchase Plan, which provide an opportunity for
     shareholders and company employees to reinvest dividends and make cash
     contributions for the purpose of purchasing common shares.

     Stock-Based Compensation Plan

     The company has a stock option plan which grants options to Executive
     Officers of Emera for a maximum term of ten years. The option price for
     these shares is the market price of the shares on the day the option is
     granted.

     All options granted to date are exercisable on a graduated basis with up to
     25 percent of options exercisable on the first anniversary date and in
     further 25 percent increments on each of the second, third and fourth
     anniversaries of the grant. If an option is not exercised within ten years,
     it expires and the optionee loses all rights thereunder. If the holder
     leaves the employment of Emera Inc. the options become exercisable
     immediately, with the holder having up to two years to exercise the
     options. The holder of the option has no rights as a shareholder until the
     option is exercised and shares have been issued. The maximum number of such
     shares optioned to any one Executive Officer cannot exceed one percent of
     the issued and outstanding common shares on the date the option is granted.


                               FS ( 2 3 1 - 10:45)                       Page 17

<PAGE>

<TABLE>
<CAPTION>
                                  2000                               1999
                              Shares under   Weighted - average  Shares under  Weighted - average
                                 option        exercise price       option       exercise price
<S>                             <C>               <C>               <C>              <C>
      Outstanding
      at beginning of year      431,250           $15.66            308,750          $15.13

      Granted                   237,000           $13.98            122,500          $17.00

      Exercised                  48,250           $13.27              ---              ---
     -------------------------------------------------------------------------------------------
      Outstanding at
      end of year               620,000           $15.21            431,250          $15.66

      Exercisable at end
      of year                   296,875           $15.21            228,750          $14.46
     -------------------------------------------------------------------------------------------
</TABLE>

12.  NON-CONTROLLING INTEREST
     millions of dollars

     The minority interest represents preferred shares that are held in Nova
     Scotia Power Inc.

     Authorized:

     Unlimited number of First Preferred Shares, issuable in series.
     Unlimited number of Second Preferred Shares, issuable in series.

     Issued and outstanding:
                                                                  Preferred
                                                   Millions of      Share
                                                      Shares       Capital
     ---------------------------------------------------------------------------
      December 31, 1998                                8.0         $200.0

      Issued Series B First Preferred Shares           5.0           31.3
     ---------------------------------------------------------------------------
      December 31, 1999                               13.0         $231.3

      Redeemed Series A First Preferred Shares        (8.0)        (200.0)
      Converted Series B First Preferred Shares       (4.4)           -
      Issued Series C First Preferred Shares           4.4           82.8
      Issued Series D First Preferred Shares           5.4          135.0
     ---------------------------------------------------------------------------
      December 31, 2000                               10.4         $249.1
     ===========================================================================


                               FS ( 2 3 1 - 10:45)                       Page 18

<PAGE>

     Series A Preferred Shares

     The Series A preferred shares were redeemed for cash of $25 per share on
     October 1, 2000.

     Series B Preferred Shares and Series C Purchase Warrants

     On March 8, 1999, NSPI issued 5,000,000 First Preferred Share Units with
     each unit consisting of one non-detachable cumulative, redeemable First
     Preferred Share, Series B and a Warrant to purchase one cumulative,
     redeemable First Preferred Share, Series C at a price of $6.25 per Unit. On
     October 1, 2000, unit holders exercised 4,417,116 Series C purchase
     warrants and Series B preferred shares, and converted them to Series C
     First Preferred Shares. After October 1, 2000, the series B shares became
     entitled to a $0.04 per share per annum fixed cumulative, preferential cash
     dividend as and when declared by the Board of Directors. The remaining
     Series B unit holders will have two more opportunities to convert their
     units with a cash payment of $18.75 on January 1, 2001 and April 1, 2001,
     to one cumulative, redeemable First Preferred Share, Series C of NSPI. The
     remaining purchase warrants for Series C shares are expected to be
     exercised in the first quarter of 2001, raising an additional $10.9
     million.

     Series C Preferred Shares

     Each Preferred Share Series C is entitled to a $1.225 per share per annum
     fixed cumulative preferential dividend, as and when declared by the Board
     of Directors, which will accrue from the date of issue and be payable
     quarterly on the first day of January, April, July and September of each
     year. On or after April 1, 2009, NSPI may redeem for cash the Preferred
     Share Series C, in whole at any time or in part from time to time at $25.00
     per share plus accrued and unpaid dividends.

     Series D Preferred Shares

     On October 31, 2000, NSPI issued 5,400,000 First Preferred Shares for a
     price of $25 per share. Each share is entitled to a fixed cumulative cash
     dividend of $1.475 per share per annum, as and when declared by the Board
     of Directors. These dividends will accrue from the date of issue and will
     be payable quarterly on the fifteenth day of January, April, July, and
     October of each year. On or after October 15, 2015, NSPI may redeem for
     cash the Preferred Share Series D, in whole at any time, at $25 per share
     plus accrued and unpaid dividends.


                               FS ( 2 3 1 - 10:45)                       Page 19

<PAGE>

13.  LONG-TERM DEBT
     millions of dollars

     Long-term debt is composed of debentures and notes payable. All long-term
     debt instruments are issued under trust indentures at fixed interest rates,
     and are unsecured.

     Long-term debt is summarized by year of maturity in the following table:

<TABLE>
<CAPTION>
                                       2000                             1999
     ---------------------------------------------------------------------------------------
      Year of Maturity       Principal    Weighted Average    Principal    Weighted Average
                            Outstanding      Coupon Rate     Outstanding      Coupon Rate
     ---------------------------------------------------------------------------------------
                                                  %                                %
     ---------------------------------------------------------------------------------------
      <S>                   <C>                 <C>          <C>                 <C>
      2000                       -                -              $8.1            5.91
      2001                    $120.5            7.28            120.5            7.28
      2002                     120.0            7.88            120.0            7.88
      2003                     150.0            7.70            150.0            7.70
      2004                      65.0            7.30             50.0            7.30
      2005                     100.0            8.38                -               -
      Greater than 5 years     720.0            7.48            820.0            7.60
     ---------------------------------------------------------------------------------------
                            $1,275.5            7.59         $1,268.6            7.58
     =======================================================================================
</TABLE>

14.  SHORT-TERM DEBT

     Short-term debt consists of commercial paper, bankers' acceptances and
     LIBOR loans issued against lines of credit. Commercial paper, bankers'
     acceptances and LIBOR loans bear interest at prevailing market rates which,
     on December 31, 2000, averaged 5.82%, 6.31% and 7.18% respectively (1999 -
     5.15%, 5.55% and 6.63%). The operating line of credit is due on demand and
     bears interest at prime which, on December 31, 2000, was 7.50% (1999 -
     6.50%).

15.  FINANCIAL INSTRUMENTS
     millions of dollars

     --------------------------------------------------------------------------
                                    Carrying Amount           Fair Value
     --------------------------------------------------------------------------
                                   2000         1999       2000         1999
      Long-term debt             $1,275.5    $1,268.8    $1,350.0    $1,326.8
      Short-term debt               281.7       320.2       277.5       318.4
      Hedging instruments             0.5         0.9        32.6       (9.8)
     ==========================================================================

     Long-term Debt and Short-term Debt

     The fair value of Emera's long-term and short-term debt is estimated based
     on the quoted market prices for the same or similar issues, or on the
     current rates offered to Emera, for debt of the same remaining maturities.


                               FS ( 2 3 1 - 10:45)                       Page 20

<PAGE>

     Hedging Instruments

     The fair value of hedging instruments is estimated by obtaining prevailing
     market rates from investment dealers.

     The company enters into interest rate hedging contracts to convert the
     interest characteristics of outstanding short-term debt from a floating to
     a fixed rate basis. Interest rate swap contracts converting floating
     interest on $165.0 million (1999 - $113.7 million) to a weighted average
     fixed interest rate of 6.07% (1999 - 5.32%) were outstanding at December
     31, 2000. At December 31, 2000 the company held interest rate swap
     contracts with a fair value of ($1.4) million (1999 - $1.3 million).

     Interest rate Caps and Collars are used to insure against extreme movements
     in interest rates on floating debt. Interest rate Cap and Collar contracts
     covering $195.0 million (1999 - $200.0 million) at a weighted average fixed
     interest rate of 7.01% (1999 - 6.51%) were outstanding at December 31,
     2000. At December 31, 2000 the company held interest rate cap and collar
     contracts with a fair value of $0.3 million (1999 - $0.1 million).

     The company entered into natural gas swap contracts in 2000 to limit
     exposure to fluctuations in natural gas prices. As at December 31, 2000,
     the company had entered into swap contracts to hedge substantially all
     natural gas purchases and sales for 2001. At December 31, 2000, the fair
     value of these swap contracts was ($31.7) million (1999 - $nil).

     The company enters into oil swap and option contracts to limit exposure to
     fluctuations in world prices of heavy fuel oil. As at December 31, 2000,
     the company had entered into oil swap contracts that fix 1.1 million
     barrels of oil at an average price of U.S. $21 per barrel. At December 31,
     2000 the company held oil swap contracts with a fair value of ($3.4)
     million (1999 - $10.3 million).

     Oil, natural gas, and part of the company's coal requirements are priced in
     U.S. dollars. Emera enters into foreign exchange forward and option
     contracts to limit exposure to currency rate fluctuations. Currency
     forwards are used to fix the Canadian dollar cost to acquire U.S. dollars,
     eliminating exposure to currency rate fluctuations. Forward contracts to
     buy U.S. $50.7 million at an average rate of CAD $1.4512 were outstanding
     for 2001 and U.S. $10.5 million at an average rate of $1.4460 were
     outstanding for 2002, at December 31, 2000. At December 31, 2000 the
     company held currency contracts with a fair value of $3.2 million (1999 -
     ($2.5) million).

     The company enters into weather temperature contracts that limit its
     exposure to revenue losses from abnormally warm weather during the winter
     heating season. At December 31, 2000, the company limited its exposure to a
     significant portion of the space heating losses for the first and fourth
     quarters of 2001. At December 31, 2000 the company held weather risk
     management contracts with a fair value of $0.4 million (1999 - $0.6
     million).


                               FS ( 2 3 1 - 10:45)                       Page 21

<PAGE>

16.  COMMITMENTS

     Emera had the following significant commitments at December 31, 2000:

     o    A requirement to purchase the coal output of the Cape Breton
          Development Corporation's (CBDC) Prince Mine, which is not expected to
          exceed 1.1 million tonnes of coal.

          Purchases from CBDC may be reduced to the extent that the company
          purchases coal from alternative sources in the event of production
          problems at CBDC, as was the case in 2000.

     o    Annual requirement to purchase approximately $15 million of
          electricity from independent power producers for each of the next five
          years.

     o    Emera is responsible for managing a portfolio of approximately $1.3
          billion of defeasance securities held in trust. The defeasance
          securities must provide the principal and interest streams of the
          related defeased debt. Approximately 68%, or $0.9 billion, of the
          defeasance portfolio consists of investments in the related debt,
          eliminating all risk associated with this portion of the portfolio.

     o    The company has committed to purchase all of the outstanding common
          shares of Bangor Hydro-Electric Company for cash consideration of $305
          million. Approval for the sale has been received from the shareholders
          of Bangor Hydro- Electric Company and from certain regulatory bodies.
          The remaining regulatory approvals are expected in the first half of
          2001.

17.  SUBSEQUENT EVENT

     On February 6, 2001, Emera offered to purchase 8.4% of the Sable Offshore
     Energy Project (SOEP) infrastructure assets for cash consideration of $90.0
     million. The offer is subject to certain rights of first refusal, and other
     approvals. The SOEP infrastructure assets comprise a gas processing plant
     at Goldboro, Nova Scotia; a natural gas liquids fractionation plant at
     Point Tupper, Nova Scotia; a natural gas liquids line connecting the
     Goldboro and Point Tupper operations; offshore production platforms; and
     sub-sea gathering pipelines.

18.  COMPARATIVE INFORMATION

     Certain of the comparative figures have been reclassified to conform with
     the financial statement presentation adopted for 2000.


                               FS ( 2 3 1 - 10:45)                       Page 22

<PAGE>

     OPERATING STATISTICS


<TABLE>
<CAPTION>
     Five-Year Summary
     ---------------------------------------------------------------------------------------
                                                     Years Ended December 31
     ---------------------------------------------------------------------------------------
                                        2000         1999       1998       1997       1996
     ---------------------------------------------------------------------------------------
      Electric energy sales (GWh)
     ---------------------------------------------------------------------------------------
      <S>                            <C>         <C>         <C>        <C>         <C>
          Residential                 3,632.1     3,494.6     3,377.9    3,498.9     3,471.9
          Commercial                  2,661.9     2,582.8     2,485.9    2,506.7     2,505.7
          Industrial                  3,917.2     3,834.8     3,423.7    2,842.6     2,754.1
          Other                         445.0       453.2       484.4      667.7       413.9
     ---------------------------------------------------------------------------------------
      Total electric energy sales    10,656.2    10,365.4     9,771.9    9,515.9     9,145.6
     =======================================================================================
     ---------------------------------------------------------------------------------------
      Sources of energy (GWh)
     ---------------------------------------------------------------------------------------
          Thermal - coal              8,863.7     7,816.0     7,015.0    8,246.5     7,850.3
                  - oil               1,347.8     1,870.9     2,358.3      781.4       608.7
                  - natural gas          43.8
          Hydro                         881.2       980.7       890.9      934.9     1,111.6
          Purchases                     295.2       411.3       242.0      340.2       254.6
     ---------------------------------------------------------------------------------------
       Total generation and
         purchases                   11,431.7    11,078.9    10,506.2   10,303.0     9,825.2
       Losses and internal use          775.5       713.5       734.3      787.1       679.6
     ---------------------------------------------------------------------------------------
       Total electric energy sold    10,656.2    10,365.4     9,771.9    9,515.9     9,145.6
     =======================================================================================
     ---------------------------------------------------------------------------------------
       Electric customers
     ---------------------------------------------------------------------------------------
          Residential                 400,653     397,406     394,012    388,386     384,856
          Commercial                   32,186      31,753      31,942     31,727      32,329
          Industrial                    2,194       2,118       2,096      1,998       1,686
          Other                         7,073       6,760       6,343      5,917       5,908
     ---------------------------------------------------------------------------------------
      Total electric customers        442,016     438,037     434,393    428,028     424,779
     =======================================================================================
     =======================================================================================
       Capacity
     ---------------------------------------------------------------------------------------
       Generating nameplate
        capacity (MW)
          Coal Fired                    1,272       1,272       1,272      1,272       1,272
          Dual Fired                      250           -           -          -           -
          Heavy Fuel Oil-Fired            100         350         350        350         350
          Gas Turbine                     180         180         180        180         180
          Hydroelectric                   381         381         381        381         381
       Independent power producers         25          25          25         25          25
     ---------------------------------------------------------------------------------------
                                        2,208       2,208       2,208      2,208       2,208
     =======================================================================================

       Number of employees              1,785       1,588       1,634      1,742       1,907
     ---------------------------------------------------------------------------------------
       km of transmission lines
         (69 kV and over)               5,250       5,250       5,250      5,236       5,213
     ---------------------------------------------------------------------------------------
       km of distribution lines
         (25 kV and under)             24,000      24,000      23,711     23,155      23,238
     ---------------------------------------------------------------------------------------
</TABLE>


                               FS ( 2 3 1 - 10:45)                       Page 23

<PAGE>

CONSOLIDATED FINANCIAL INFORMATION

<TABLE>
<CAPTION>
Five-Year Summary
Years Ended December 31 (millions of dollars)             2000       1999      1998      1997      1996
- ---------------------------------------------------------------------------------------------------------
Statement of Earnings Information
- ---------------------------------------------------------------------------------------------------------
<S>                                                       <C>       <C>       <C>       <C>       <C>
Revenue                                                   $896.5    $816.6    $773.1    $748.7    $741.2
- ---------------------------------------------------------------------------------------------------------
Cost of operations
Fuel for generation and power purchased                    273.9     267.5     257.3     246.4     238.7
Cost of fuel oil sold                                       67.7      15.3      14.0       -         -
Operating, maintenance and general                         168.0     155.5     142.5     138.6     157.7
Grants in lieu of property taxes                            11.0       8.9       5.5       5.3       5.2
Provincial capital tax                                       7.2       7.1       6.7       5.2       -
Depreciation                                                98.3      94.8      91.3      87.8      85.0
- ---------------------------------------------------------------------------------------------------------
                                                           626.1     549.1     517.3     483.3     486.6
- ---------------------------------------------------------------------------------------------------------
Earnings from operations                                   270.4     267.5     255.8     265.4     254.6
Amortization                                               (19.0)    (23.1)    (16.7)    (12.8)      5.1
Allowance for funds used during construction                 4.8       4.8       3.8       4.0       4.2
Equity earnings in Maritimes and Northeast Pipeline          6.0       5.3       -         -         -
- ---------------------------------------------------------------------------------------------------------
Earnings before interest and income taxes                  262.2     254.5     242.9     256.6     263.9
Interest                                                   135.4     136.5     132.7     140.2     148.9
- ---------------------------------------------------------------------------------------------------------
Earnings before income taxes                               126.8     118.0     110.2     116.4     115.0
Income tax                                                  12.5       6.3      13.6      14.2      11.4
=========================================================================================================
Net earnings before non-controlling interest               114.3     111.7      96.6     102.2     103.6
Non-controlling interest                                     9.9      11.3      11.2       9.5      13.6
=========================================================================================================
Net earnings applicable to common shares                   104.4     100.4      85.4      92.7      90.0
Common dividends                                            73.2      72.2      71.1      69.9      68.7
- ---------------------------------------------------------------------------------------------------------
Earnings retained for use in company                       $31.2     $28.2     $14.3     $22.8     $21.3
=========================================================================================================

Cost of fuel for generation - coal                        $186.3    $184.3    $164.8    $189.2    $198.9
- - oil                                                       60.5      58.2      76.2      35.7      22.6
- - natural gas                                                5.9
Power purchased                                             21.2      25.0      16.3      21.5      17.2
- ---------------------------------------------------------------------------------------------------------
Total cost of fuel for generation and power purchased     $273.9    $267.5    $257.3    $246.4    $238.7
=========================================================================================================
Balance Sheet Information

Property, plant and equipment                           $2,374.2  $2,362.8  $2,333.9  $2,293.1  $2,280.6
Matching notes receivable                                    -         -         -         -        46.1
Other assets                                               313.2     335.2     361.4     430.4     435.4
Investment in Maritimes & Northeast Pipeline                67.0      54.7      30.5       -         -
Current assets                                             196.6     149.2     108.3     157.7     302.6
- ---------------------------------------------------------------------------------------------------------
Total assets                                            $2,951.0  $2,901.9  $2,834.1  $2,881.2  $3,064.7
=========================================================================================================
Common shares                                             $680.8    $676.5    $672.5    $667.6    $661.3
Retained earnings                                          296.8     265.8     238.7     224.4     201.6
Non-controlling interest                                   249.1     231.3     200.0     200.0     200.0
Long-term debt                                           1,155.0   1,260.5   1,083.7   1,107.5   1,258.1
Other liabilities                                            2.1       2.7       2.2      26.9      13.4
Current liabilities                                        567.2     465.1     637.0     654.8     730.3
- ---------------------------------------------------------------------------------------------------------
Total equity and liabilities                            $2,951.0  $2,901.9  $2,834.1  $2,881.2  $3,064.7
=========================================================================================================
Capital expenditures                                      $126.5    $144.0    $162.6    $100.3     $88.5
=========================================================================================================
Statement of Cash flow Information

Operating cash flow                                       $233.4    $226.5    $219.2    $204.0    $195.8
Free cash flow*                                             23.9      18.2      24.9      38.8      22.5
- ---------------------------------------------------------------------------------------------------------
Financial ratios ($ per share)


  Earnings per share                                       $1.20     $1.16     $0.99     $1.07     $1.05
  Operating cash flow per share                             2.68      2.60      2.53      2.36      2.27
- ---------------------------------------------------------------------------------------------------------
*Free cash flow is cash provided by operating activities net of amounts
required for capital investments and dividends.
</TABLE>

                               FS ( 2 3 1 - 10:45)                       Page 24

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