Aging generation, transmission and distribution infrastructure presents an opportunity for Emera to continue to make investments and increase its cash generating assets.
This is an example of the aging infrastructure in NE. ISO NE issued a report stating that by 2020, over 8300MW of generation capacity from fuel burning generation assets alone will be 40+ years in age.
As well, this is reflected in the much higher than anticipated future capacity prices, that has proved Emera’s investment and timing in the 3 gas fired generation facilities to be extremely positive.
There will also be large scale transmission opportunities for growth.
In 2014, Emera Maine and CMP announced an MOU, to replace and improve transmission infrastructure to bring renewable energy from Northern Maine to more southern NE.
As well, the Maritime Link and investment in Labrador Island link are well under way, with first power transmission expected to occur in 2017. The future development of Gull Island, with an estimated 2,250 MW of hydro capacity is an exciting opportunity for both Nalcor and Emera to be able to sell surplus renewable energy in the NE market.
When looking at the five year stock price, there has been an average 16.3% annualized shareholder return.
This is very positive for Emera and its shareholders. However, we must recognize that the company is also trading near its 52 week high. When we issued our