NS Power files reply submission requesting full approval of $11.36M D055 Authorization to Overspend for planned replacement of deteriorated distribution equipment

M12898 · Nova Scotia Power Inc. - Distribution Routines CI Various- D055 – Planned Replacement of Deteriorated Equipment (ATO) - $11,359,8222025 ACE Plan – Routine Capital - Authorization to Overspend (ATO):Distribution Routines – Non-Confidential • D055 – Planned Replacement of Deteriorated Equipment: ATO amount $11,359,822

AI summary

Ns Power applied on June 11, 2026 for an 2025 Ace Plan Regulatory Approval Processes ATO of $11,359,822 under Distribution Routine D055, reflecting 2025 actual expenditures of $21,980,684 against a budget of $10,620,862 — a variance of approximately 107%.
The primary cost drivers were a ~2.5x increase in pole replacements and similar increases for transformers identified through feeder inspection programs, with Bin Work orders rising from 751 in 2023 to 1,555 in 2025 and Bin Work expenditures growing from ~$2.95M to ~$12.05M; approximately $4M was concentrated in the Glace Bay area across seven feeders.
The Consumer Advocate raised concerns about sufficiency of evidence, cost minimization, and the intelligibility of NS Power's variance explanations, and recommended the Board consider a reduction in cost recovery and enhanced Schedule R8 quarterly reporting; NS Power disputes both recommendations and attributes data gaps to the 2025 cyber incident's impact on PowerPlan and related financial systems.
The Small Business Advocate does not oppose the application and commended NS Power's Asset Management Powerline Technician (PLT) recruitment efforts — PLT headcount grew from 168 in 2023 to 179 in 2025 — requesting continued annual updates through existing PLT reporting processes.
NS Power argues no imprudence finding is warranted, confirming expenditures were managed through Master Service Agreements, contractor oversight, and monthly/quarterly variance reviews, and states it would not object to revising Schedule R8 to include routine-level variance information if the Board so directs.

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What was filed

Documents filed on this day

103400 Reply Submission - NS Power other_documents