Appeals court overturns decision on Nova Scotia Power's tax case

HALIFAX, Jan. 28, 2003 -- Nova Scotia Power Inc. (NSPI) said Monday it is seeking leave to appeal to the Supreme Court of Canada the recent Federal Court ruling that overturned a Tax Court of Canada decision in the company's favor. Nova Scotia Power is a wholly owned subsidiary of Emera Inc.

The case arose when NSPI claimed deductions related to capitalized interest on assets constructed by its predecessor, Nova Scotia Power Corporation (NSPC). The assets were purchased by NSPI in the course of privatizing NSPC in 1992. The deductions created substantial tax depreciation that was used to reduce income taxes payable by approximately $130 million through 2002.

The Canada Customs and Revenue Agency (CCRA) disallowed the deductions claimed, and NSPI pursued the issue successfully through the Tax Court. CCRA appealed the decision to the Federal Court of Appeal, which has overturned the January 2002 Tax Court ruling.

"We are disappointed with this decision," said David Mann, President and Chief Executive Officer of Nova Scotia Power. "We will seek leave to appeal to the Supreme Court of Canada."

Nova Scotia Power will work with its regulator, the Nova Scotia Utility and Review Board to determine an appropriate mechanism to recover the costs of these taxes should the appeal process prove unsuccessful.

The total potential liability through 2002 is approximately $160 million, including interest charges. The company expects to deposit the balance with CCRA in the near future to avoid further interest charges. The total payment will be recoverable should the issue be finally resolved in the company's favor.

About Emera Inc.

Emera Inc. (EMA-TSX) is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company.

Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro provides electricity transmission and distribution service to 110,000 customers in eastern Maine. It is a member of the New England Power Pool, and is interconnected with the other New England utilities to the south and with New Brunswick Power to the north.

In addition, Emera Energy manages Emera's growing gas infrastructure investment portfolio, including its 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States; and an 8.4% interest in the Sable Offshore Energy Project offshore platforms and sub-sea field gathering lines. Emera Energy also incorporates Emera Energy Services, Emera Fuels, and Emera's business development activities. Visit Emera on the web at www.Emera.com.

Sponsored by FLSmidth

Related Articles

The Blockbuster Conundrum

Remember Blockbuster Video? Not too many years ago, Blockbuster was a business titan.

Gaelectric pursues FERC complaint over 460-MW wind project

The Federal Energy Regulatory Commission on April 29 will publish in the Federal Register a notice seeking comment on a complaint filed April 21 against NorthWestern Corp. by the developer of a 460-MW wind farm project in Montana.

Follow Power Engineering on Twitter

Latest News

02-25 Henry Hub Average Natural Gas Spot Prices

02/25 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...
 GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez wants Areva to deliver nuclear reactors, wind turbines

GDF Suez says it received guarantees from Areva for planned nuclear reactors in Turkey and wi...
 CB&I: We’re not liable for $247mn nuclear power project penalties

CB&I: We’re not liable for $247mn nuclear power project penalties

Chicago Bridge & Iron (CB&I, NYSE: CBI) say they should not be liable for any of the ...
 Siemens upgrades I&C system of GE steam turbines for first time

Siemens upgrades I&C system of GE steam turbines for first time

Siemens (NYSE: SI) received an order to upgrade the instrumentation & controls (I&C) ...
 Weekly Coal Production

Weekly Coal Production

The Weekly Coal Production Report has been updated for the week ended February 21, 2015.

 North Dakota coal production increases 4 percent in 2014

North Dakota coal production increases 4 percent in 2014

North Dakota is known for its booming oil fields, but coal mining in the state also is a heal...
 Spanish company buying US utility serving northeast for $3B

Spanish company buying US utility serving northeast for $3B

Spain's leading electricity and natural gas utility, Iberdrola, says it will buy the northeas...
 Ohio utility regulators reject AEP plan for coal plants

Ohio utility regulators reject AEP plan for coal plants

Ohio utility regulators have rejected an American Electric Power proposal to guarantee profit...

Power Engineering Current Issue

12/01/2014
Volume 118, Issue 12
1412pe-cover1

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Buyers Guide Categories

Buyers Guide Product Listings

Transmission Services

Blattner Energy is a diversified electrical gen...

Sargent & Lundy Engineering & Design Services

Our experience and capabilities for power deliv...

Power Industry Wire News

Western Gas to Present at Upcoming Barclays Investment Grade Energy and Pipeline Conference

Western Gas to Present at Upcoming Barclays Investment Grade Energy and Pipeline Confer...

PetroQuest Energy, Integrated Environmental Technologies and Nighthawk Energy Discuss 2015 Strategy in Exclusive Video Interviews With EnerCom's Oil & Gas 360(R)

PetroQuest Energy, Integrated Environmental Technologies and Nighthawk Energy Discuss 2...

SEACOR Holdings Announces Results for Its Year and Fourth Quarter Ended December 31, 2014

SEACOR Holdings Announces Results for Its Year and Fourth Quarter Ended December 31, 2014

Western Gas Partners, LP and Western Gas Equity Partners, LP Annual Reports Available

Western Gas Partners, LP and Western Gas Equity Partners, LP Annual Reports Available

Vivakor Signs MOU to Acquire Oil Sands Designated Leased Property in Utah

Vivakor Signs MOU to Acquire Oil Sands Designated Leased Property in Utah

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>