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Emera Closes Acquisition of TECO Energy

T.EMA | July 1, 2016

Emera Closes Acquisition of TECO Energy

Emera Inc. (“Emera”) (TSX:EMA) today announced that it has completed the acquisition of all outstanding shares of TECO Energy, Inc. (“TECO Energy”) for approximately US$6.5 billion (“Acquisition”).

TECO Energy is a perfect fit for Emera’s strategy due to its business and generation mix. It expands Emera’s platform into markets where there are significant growth opportunities, and is expected to increase the portion of Emera’s earnings from rate-regulated businesses to almost 85 percent of adjusted net income. With this acquisition, Emera becomes a top 20 North American regulated utility with added geographic, regulatory and business diversification.

The Acquisition is expected to be significantly accretive to Emera’s earnings per common share, with 5 percent accretion in the first full year of operations (2017)¹, growing to more than 10 percent by the third full year (2019)¹.

“The acquisition of TECO Energy advances a number of important strategic objectives for Emera,” said Chris Huskilson, President and CEO of Emera Inc. “We expect it to be significantly accretive, increase our regulated earnings into the high end of our target range, provide additional diversification and growth opportunities, and expand Emera into the local gas distribution business.”

As part of Emera’s commitment to the customers and communities in which it operates, operating boards will be established in Florida and New Mexico, with local business and community leaders on both boards. Tampa Electric and Peoples Gas headquarters will remain in Tampa, Florida. New Mexico Gas Co. headquarters will remain in Albuquerque, New Mexico.

“At Emera, our people are our greatest strength. Today, we welcome 3,700 new colleagues from across TECO into the Emera family. We are stronger together,” said Huskilson.

Tampa Electric serves nearly 725,000 customers in West Central Florida; Peoples Gas serves nearly 365,000 customers across Florida; and New Mexico Gas Co. serves more than 515,000 customers across New Mexico.

As a result of the closing of the Acquisition, trading of TECO Energy, Inc. common stock on the New York Stock Exchange will be suspended, and these shares will no longer be listed on The New York Stock Exchange. TECO Energy, Inc. shareholders will receive US$27.55 per share.

About Emera Inc.

Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $27.5 billion in assets and 2015 pro-forma revenues of $ 6.3 billion. The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera continues to target having 75-85% of its adjusted earnings come from rate-regulated businesses. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, and EMA.PR.F and instalment receipts are listed and trade under the symbol EMA.IR. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR. Additional Information can be accessed at www.emera.com or at www.sedar.com

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable securities laws with respect to the combined operations of Emera and TECO Energy post-Acquisition, including, among other things, statements relating to growth and diversification opportunities, increased earnings from rate-regulated businesses, earnings per share accretion and stakeholders commitments. By its nature, forward-looking information requires the use of assumptions and is subject to inherent risks and uncertainties. These statements reflect Emera’s current beliefs and are based on information currently available to it. There is risk that predictions, forecasts, conclusions and projections that constitute forward-looking information will not prove to be accurate, that the assumptions may not be correct and that actual results may differ materially from such forward-looking information. Additional detailed information about these assumptions, risks and uncertainties is included in (i) Emera’s securities regulatory filings, including under the heading “Business Risks and Risk Management” in Emera’s annual Management Discussion and Analysis, and under the heading “Principal Risks and Uncertainties” in the notes to Emera’s annual and interim financial statements which can be found on SEDAR at www.sedar.com and (ii) under the heading “Risk Factors” in TECO Energy’s Annual Report on Form 10-K for the year ended December 31, 2015, as updated in subsequent filings with the U.S. Securities and Exchange Commission. Except as required by law, Emera disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

¹ Within a stable currency exchange environment; for additional assumptions, see “Forward Looking Information”