Emera Reports Second Quarter 2026 Results, Florida Supreme Court Appeal Still Pending
The Canadian utility holding company disclosed ongoing regulatory proceedings in Florida while affirming its five to seven percent adjusted EPS growth target through 2030.
Regulatory Settlement Approved in Florida
Emera Incorporated, the Halifax-based utility holding company with operations across North America and the Caribbean, filed its second quarter 2026 management discussion and analysis on August 7, disclosing significant regulatory developments at its largest subsidiary.
Tampa Electric Company (TEC), which operates within Emera's Florida Electric Utility segment, secured approval from the Florida Public Service Commission (FPSC) for a settlement agreement on August 4, 2026. The agreement, jointly filed by TEC and the Office of Public Counsel on June 16, establishes revised depreciation rates for Bayside Station assets effective July 1, 2026, resulting in an annual depreciation expense reduction of "approximately $20 million USD" (FIN SUPP filing, 2026-08-07).
As part of the settlement, TEC agreed to reduce fuel clause recovery by $10 million USD in 2026, to be reflected on customer bills in 2027, and committed to not seeking base revenue increases effective before January 1, 2028, except for previously approved adjustments (FIN SUPP filing, 2026-08-07).
Florida Supreme Court Appeal Ongoing
The filing noted that a 2025 rate case decision remains under appeal. Two intervening parties filed notices of appeal to the Florida Supreme Court in March 2025 regarding TEC's 2024 base rate proceeding. The parties submitted briefs on January 12, 2026, with responses filed by the FPSC and TEC on April 13, 2026. "To date, the Florida Supreme Court has not made a decision regarding this case," the company disclosed (FIN SUPP filing, 2026-08-07).
TEC anticipates earning within its allowed return on equity range in 2026, with USD earnings expected to be higher than 2025 due to new base rates effective January 1, 2026, and continued customer growth (FIN SUPP filing, 2026-08-07).
New Mexico Sale Nearing Completion
Emera's planned divestiture of New Mexico Gas Company (NMGC) moved closer to completion after the New Mexico Public Regulation Commission issued a final order approving the transaction on July 30, 2026. The company expects the sale, first announced on August 5, 2024, to close in August 2026 (FIN SUPP filing, 2026-08-07). NMGC's assets and liabilities have been classified as held for sale since the third quarter of 2024.
Capital Investment and Growth Outlook
Emera reaffirmed its capital investment plan of "approximately $20 billion from 2026 through 2030," with approximately 80 percent allocated to its Florida utilities (FIN SUPP filing, 2026-08-07). For 2026 specifically, TEC expects capital investment of $1.8 billion USD, while Peoples Gas System plans approximately $445 million USD in capital expenditures (FIN SUPP filing, 2026-08-07).
The company maintained its guidance for "average adjusted EPS growth of five to seven per cent through 2030, using 2024 as the base year" (FIN SUPP filing, 2026-08-07). Emera's regulated cost-of-service utilities in Florida accounted for 67 percent of average consolidated rate base in 2025, with Atlantic Canada comprising 25 percent (FIN SUPP filing, 2026-08-07).
According to MarginX data, Emera is expected to report third quarter 2026 results on November 6, 2026.
This article was generated by MarginX from the FIN SUPP filing on 2026-08-07. It is not investment advice.