NSUARB approved Lunenburg Electric Utility's amended flow-through formula for passing NSPI Municipal Rate Class increases to customers, effective November 1, 2010.

M03453 · E-LUN-R-10 - Lunenburg Electric Utility - Request a change to the flow through formula used to calculate the NSPI Municipal Rate Class increases.IN THE MATTER OF the Application of the Town of Lunenburg on behalf of its Electric Utility for approval of a change to the flow through formula used to calculate amendments to its Schedule of Rates for the provision of electric services to its customers to recover costs incurred as result of the rate increases granted to Nova Scotia Power Incorporated.

AI summary

The Nova Scotia Utility And Review Board issued an Order dated October 19, 2010, approving the Lunenburg Electric Utility's application to amend the formula used to calculate rate changes flowing from Nova Scotia Power Incorporated Municipal Rate Class increases to Lunenburg customers (Doc. 182497).
The approved two-step formula calculates a cost-recovery percentage by dividing forecasted NSPI power purchase costs (A) by forecasted electric rate revenue (B), then multiplying the resulting ratio (C) by the NSPI-approved increase percentage (D), yielding the average rate adjustment required (E) — without the necessity of a public hearing.
Schedule A also embeds separate pass-through formulas for Demand Side Management (DSM) and Fuel Adjustment Mechanism (FAM) adjustments across Domestic, Small General, General, Large General, Time-of-Day, and Street and Yard Lighting rate classes.
The Board noted the same formula is already in use by another municipal utility, lending precedential support to the methodology, and found the formula provides a "fair and reasonable" method of cost recovery.
Going forward, Lunenburg Electric Utility is required to file a comprehensive summary comparing forecasted purchase and sales amounts against actuals for the prior two years whenever it submits a rate-change request under the new formula.

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What was filed

Documents filed on this day

59945 Board Order key_documents
59945 Board Order other_documents