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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
20. LEASES
Lessee
The Company has operating leases for buildings, land, telecommunication services, and rail cars.
Emera’s leases have remaining lease terms of 1 year to 61 years, some of which include options to
extend the leases for up to 65 years. These options are included as part of the lease term when it is
considered reasonably certain they will be exercised.
As at
December 31
December 31
millions of dollars
 
Classification
2024
2023
Right-of-use asset
Other long-term assets
$
52
$
 
54
Lease liabilities
 
Current
Other current liabilities
3
 
3
 
Long-term
Other long-term liabilities
54
 
55
Total
 
lease liabilities
$
57
$
 
58
The Company recorded lease expense of $
123
 
million for the year ended December 31, 2024 (2023
 
–
$
127
 
million), of which $
112
 
million (2023 – $
119
 
million) related to variable costs for power generation
facility finance leases, recorded in “Regulated fuel for
 
generation and purchased power” in the
Consolidated Statements of Income.
Future minimum lease payments under non-cancellable operating
 
leases for each of the next five years
and in aggregate thereafter are as follows:
millions of dollars
2025
2026
2027
2028
2029
Thereafter
Total
Minimum lease payments
$
 
5
$
 
3
$
 
3
$
 
3
$
 
3
$
 
115
$
 
132
Less imputed interest
(75)
Total
$
 
57
Additional information related to Emera's leases is as follows:
Year ended December 31
For the
2024
2023
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows for operating leases (millions of dollars)
$
 
10
$
 
8
Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases (millions of dollars)
$
-
 
$
 
1
Weighted average remaining lease term (years)
 
44
 
44
Weighted average discount rate-
 
operating leases
3.96%
3.93%
Lessor
The Company’s net investment in direct finance
 
and sales-type leases primarily relates to Brunswick
Pipeline, Seacoast, compressed natural gas (“CNG”)
 
stations, a renewable natural gas (“RNG”) facility
and heat pumps.
The Company manages its risk associated with the residual
 
value of the Brunswick Pipeline lease
through proper routine maintenance of the asset.
Customers have the option to purchase CNG station assets
 
by paying a make-whole payment at the date
of the purchase based on a targeted internal rate of return
 
or may take possession of the CNG station
asset at the end of the lease term for no cost. Customers
 
have the option to purchase heat pumps at the
end of the lease term for a nominal fee.
Commencing in October 2023, the Company leased a RNG
 
facility to a biogas producer that is classified
as a sales-type lease. The term of the facility lease is
15 years
, with a nominal value purchase at the end
of the term and a net investment of approximately $
35
 
million USD.
 
Direct finance and sales-type lease unearned income is recognized
 
in income over the life of the lease
using a constant rate of interest equal to the internal
 
rate of return on the lease and is recorded as
“Operating revenues – regulated gas” and “Other income,
 
net” on the Consolidated Statements of
Income.
The total net investment in direct finance and sales-type
 
leases consist of the following:
As at
December 31
December 31
millions of dollars
 
2024
2023
Total
 
minimum lease payment to be received
$
 
1,310
$
 
1,360
Less: amounts representing estimated executory costs
(182)
(190)
Minimum lease payments receivable
$
 
1,128
$
 
1,170
Estimated residual value of leased property (unguaranteed)
 
183
 
183
Less: Credit loss reserve
(2)
(2)
Less: unearned finance lease income
(655)
(693)
Net investment in direct finance and sales-type leases
$
 
654
$
658
Principal due within one year (included in "Receivables and other
current assets")
 
44
 
37
Net Investment in direct finance and sales type leases – long-term
$
610
$
621
As at December 31, 2024, future minimum lease payments
 
to be received for each of the next five years
and in aggregate thereafter were as follows:
millions of dollars
2025
2026
2027
2028
2029
Thereafter
Total
Minimum lease payments to be
received
$
 
99
$
 
100
$
 
99
$
 
97
$
 
96
$
 
819
$
 
1,310
Less: executory costs
(182)
Total
$
 
1,128