AI-generated summary
· Application · 11/30/2010
Nova Scotia Utility and Review Board clerk responded to federal Finance Canada economist with overview of utility return on equity methodology used in the province
AI summary
- The Board's response (Exhibit 05879, dated November 30, 2010) explains that Return On Equity for regulated utilities is determined by reviewing discounted cash flow, the capital asset pricing model, and the equity risk premium method, with traditional reliance placed on the equity risk premium approach.
- The Board clarified that, unlike the National Energy Board, no formula is applied in Nova Scotia for setting rates of return.
- Nova Scotia Power Inc was identified as the largest and principal generating utility regulated by the Nova Scotia Utility And Review Board, operating as an integrated electric utility with no separate rate of return for hydro assets.
- The response also noted that depreciation rates are set through dedicated depreciation hearings, and that NSPI had recently applied for a revision to its depreciation rates.
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What was filed
Documents filed on this day
- 05879 Response from the Board