NSEB accepts Nova Scotia Power's 2025 Short Run Marginal Cost Test to Rates Report, with all rate classes passing both SRMC tests and a directive issued on price elasticity monitoring.

M12887 · Nova Scotia Power Inc. - 2025 Short Run Marginal Cost (SRMC) Test to Rates Report

AI summary

The Nova Scotia Energy Board accepted NS Power's 2025 Rate Design SRMC Test to Rates Report (Exhibit N-2), filed pursuant to Order NSUARB-NSPI-P-878.2 (Generic Rate Design, 2003); the report was refiled June 5, 2026 after the Board identified a data discrepancy in the original May 29, 2026 submission.
All tested rate classes passed both SRMC tests — one using base cost of rates and one incorporating 2026 FAM AA and BA revenue adjustments tied to cost imbalances incurred as of September 2025.
The calculated average annual marginal cost for 2025 was 9.048 cents/kWh, an increase of 11.4% from 2024, driven by changes in generation mix (including must-run, non-dispatchable generation replacing marginal coal-fired generation), commodity prices, load growth, and fluctuating natural gas prices.
Following a prior Board direction in the 2024 SRMC Report, NS Power conducted a sensitivity analysis of price elasticities using the Time Varying Pricing pilot program, finding notable variations in winter domestic TOU and CPP rate classes, with TVP pilot-to-current elasticity ratios ranging from 0.1 to 10.7.
The Board directed NS Power to continue monitoring affected rate classes for price elasticity changes and to incorporate findings into future Load Forecast and TVP pilot program reports to inform subsequent SRMC analyses.

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What was filed

Documents filed on this day

102465 Board letter re: Accepts the 2025 SRMC Test to Rates Report, as refiled in Exhibit N-2 other_documents