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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex99-1.txt
<DESCRIPTION>EXHIBIT E
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                Exhibit E to Emera Inc. Annual Report on Form U5S
                      for the year ended December 31, 2003

Exhibit E:

1.   The amount of any income tax credit and/or income tax liability incurred
     during the previous fiscal year by Emera (one of the Intermediate
     Companies): (i) as a result of any Merger-related debt, and (ii) as a
     result of any other income source or expense.

Response: The amount of income tax credit incurred (in the Intermediate Holding
Companies) during the 2003 fiscal year as a result of Merger-related debt is
approximately $3,400,000 US. The amount of income tax credit incurred as a
result of other Intermediate Holding Company expenses is estimated to be
$306,000 US.

2.   A description of how the income tax credit and/or income tax liability was
     calculated and allocated to all companies included in the consolidated tax
     return, showing all of Emera's interest costs and any assumptions used in
     the calculation.

Response: The respective income tax credits noted above were calculated at an
effective income tax rate of 40% of the related expenses. The related expenses
were, respectively, $8,500,000 US of interest and $765,000 US of other expenses.
The income tax credits were realized by the Intermediate Holding Companies on a
quarterly basis in conjunction with payment by Bangor Hydro-Electric Company of
its estimated tax payments. The income tax credits are allocated to all
companies included in the consolidated tax filing in accordance with the manner
prescribed by the Tax Allocation Agreement.

3.   A description of how any Merger-related debt flows through all Intermediate
     Holding Companies.

Response: When Bangor Hydro-Electric Company declares and pays a dividend on
common shares to its parent, BHE Holdings Inc., the cash is transferred from
Bangor Hydro-Electric Company to BHE Holdings Inc. The parent of BHE Holdings
Inc., Emera US Holdings Inc., holds both common share and preferred share
investments in BHE Holdings Inc. BHE Holdings Inc. then declares and pays a
dividend from BHE Holdings Inc. to Emera US Holdings Inc. with respect to the
outstanding preferred shares of BHE Holdings Inc. Emera US Holdings Inc. then
uses the funds from the preferred dividends to pay Emera Inc. accrued financing
costs (interest) with respect to the Merger-related debt. The payment of the
Merger-related financing costs flows from the Intermediate Holding Companies to
Emera Inc. via several Canadian entities that are "disregarded entities" for US
income tax purposes. Payments to Emera Inc. with respect to the financing costs
are generally subject to 10% US withholding tax; a cost borne by Emera Inc.


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4.   A description of the amount and character of any payments made by each
     Intermediate Holding Company to any other Emera System company during the
     reporting period.

Response: Other than noted here, there were no payments made by either
Intermediate Holding Company to any other Emera System company during the
reporting period.

5.   A statement that the allocation of tax credits and liabilities was
     conducted in accordance with the Tax Allocation Agreement in effect and
     incorporated by reference to the Form U5S.

Response: The income tax credits incurred during the 2003 fiscal year have been
allocated in accordance with the Tax Allocation Agreement. The tax return for
2003 will not be filed until September 2004 at which time minor adjustments to
the allocation may be required to adjust the income tax credits to those
reflected on the tax return.


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