NSEB approved NS Power's RTU Replacements Phase 6 with a 13% labour hour reduction, directing resubmission of capital approval form CI C0051815 within two weeks.

M12550 · To obtain a cost reasonableness review of NS Power - CI C0051815 – $5,959,515 - RTU Replacements Program – Phase 6, as outlined in Section 2.1 of the ACE 2025 decision (M12012)

AI summary

The Board ordered a 13% reduction in labour hours from NS Power's revised December 2025 estimate for CI C0051815 (RTU Replacements Phase 6, $5,959,515), splitting the difference between the independent consultant Midgard's recommended 30% cut and NS Power's position that no reduction was warranted; NS Power must resubmit the capital approval form within two weeks.
Independent consultant Midgard (Exhibit N-3) found a 33% variance between NS Power's filed labour estimate and an allocation derived from Phase 6 technical documents (1,291 vs. ~1,939 hours per RTU), citing a 228% increase in overtime labour versus Phase 5 and the absence of task-level traceability as key concerns.
The Board expressed pointed concerns about NS Power's initial cost submission, noting that a ~$900,000 reduction triggered by completing just two of 14 sites — partly attributable to duplicated line items in the original estimate — should have been avoidable given the utility's six-phase experience with RTU replacements.
A cybersecurity incident limiting access to historical baseline data was acknowledged as a complicating factor, but the Board found it did not excuse the insufficient justification provided in response to Undertaking U-8 in the underlying 2025 ACE Plan proceeding (M12012).
The Board reaffirmed that NS Power must complete the project safely regardless of the approved budget, that cost overruns may be addressed through an after-the-fact ATO filing, and directed NS Power to address overall project efficiency — including sequencing from lower- to higher-complexity sites — in any future RTU phase submissions.

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What was filed

Documents filed on this day

102522 Board Decision Letter key_documents
102522 Board Decision Letter other_documents