Synapse Energy Economics filed responses to Round 2 Information Requests from the Industrial Group, Nova Scotia Power, and Port Hawkesbury Paper in the ELID Above-the-Line Tariff proceeding

M12661 · Nova Scotia Power - Application for approval of an Above-the-Line Tariff applicable to Port Hawkesbury Paper (PHP)Application for approval of the Extra Large Industrial Dispatchable (ELID) Tariff, an above-the-line- tariff available to Port Hawkesbury Paper

AI summary

Synapse witness Melissa Whited clarified her position on interruptible credit methodology (N-33, IR-3), confirming the credit should be capped at avoided capacity cost net of PHP's expected revenue contribution under firm service, with the precise level determined through negotiation — but not set equal to PHP's full marginal cost of $13.107/kVA as PHP proposed, nor as low as the $8.404/kVA NSPI proposed.
Synapse acknowledged it cannot currently calculate the net-avoided-cost cap without additional data on Large Industrial class demand costs, monthly billing determinants, and the value of the interruptible credit (N-33, IR-5(c)), and recommended the Board pre-establish this figure as a condition of any negotiation.
On the question of PHP's 'reluctance to participate,' Synapse stated that customer reluctance is not itself a cost-causation or rate-design principle, but may be analytically relevant as a load retention measure where retaining the customer at a discounted rate produces better outcomes for other ratepayers than departure (N-33, IR-6(d)).
Synapse confirmed PHP would qualify for both the Large Industrial Interruptible Tariff and the below-the-line 1P-RTP Tariff, but noted neither would enable active dispatch of PHP's load as contemplated under the ELID framework (N-33, IR-4).
Synapse agreed with PHP's position that the peaker cost used in NSPI's interruptible credit calculation ($160.44/kW, last set in 2021) is likely understated, meaning the true avoided capacity benefit is higher — though the extent to which other classes share in that benefit depends on where the interruptible credit is ultimately set (N-35, IR-3).

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What was filed

Documents filed on this day

N-33 Synapse (IG) IR 1 to 6 exhibits
N-34 Synapse (NSPI) RIR 1 exhibits
N-35 Synapse (PHP) RIR 1 to 3 exhibits