NSP Maritime Link Inc. filed its 2027/2028 Assessment Application seeking $200.3 million and $191.5 million from NS Power, with a novel placeholder-to-contracted cost mechanism proposed for a major marine survey.

M12914 · NSP Maritime Link Inc. - 2027 / 2028 Assessment Application - NSPML

AI summary

NSPML requests NSEB approval of assessments totalling $200.3 million for 2027 and $191.5 million for 2028, covering Operating Expenses, Depreciation Amortization, debt/equity financing costs, and Rate Base recovery from Nova Scotia Power Incorporated under the Maritime Link Act and Maritime Link Cost Recovery Process Regulations.
The most novel element is a two-stage marine survey cost recovery mechanism: an interim 'Placeholder Marine Survey cost' (amount redacted) is embedded in the 2027 O&M figure of $27.2 million, with the 'Contracted Marine Survey cost' to be filed confidentially after RFP completion (expected Q4 2026 or Q1 2027) and incorporated via a Board-issued updated order, analogous to Fuel Adjustment Mechanism treatment.
NSPML argues against multi-year smoothing of marine survey costs, citing its higher borrowing rates versus NS Power (no credit rating, all assets pledged under FLG and FLG2), adverse WACC implications, and limited borrowing flexibility under Federal Loan Guarantee constraints.
Equity financing costs apply the NSEB-approved 8.75% Return On Equity and 70/30 debt-to-equity ratio to average rate bases of $1,463.2 million (2027) and $1,407.9 million (2028); FLG2 ($500 million bond offering completed in 2024) is tracked separately at $38.8 million (2027) and $38.0 million (2028).
Asset Management disclosures include near-completion of the Submarine Cable Protection Project (M12285), a planned Station Control Monitoring System upgrade targeted for September 2028 (separate capital application >$1 million forthcoming), and a commitment to file an updated depreciation study within six months of Cable Protection Project completion.

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What was filed

Documents filed on this day

N-1 Application - Redacted exhibits
N-1(C) Application - Confidential exhibits
102504 Letter enclosing application / request for confidentiality other_documents
102505 Confidential Underaking other_documents