New project makes Emera greener

Article Excerpt

EMERA INC. $34 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 142.6 million; Market cap: $4.8 billion; Price-to-sales ratio: 1.8; Dividend yield: 4.2%; TSINetwork Rating: Average; www.emera.com) has agreed to pay $390 million for 34.9% of a line that will transmit power from a new hydro-electric plant in Labrador to the island of Newfoundland. In addition, Emera will spend $1.6 billion on an undersea line that will transmit 20% of this facility’s power to Nova Scotia. These projects, which should start up in 2017, will help Emera comply with new Nova Scotia regulations that require it to get 40% of its power from renewable sources by 2030, up from 17% today. Emera is a buy. buy…