NSEB convenes January 8, 2026 hearing on Nova Scotia Power's 2026 GRA, with testimony focused on depreciation adjustments linked to a landmark securitization and contested cost-of-capital parameters.

M12451 · Nova Scotia Power Inc. - 2026 General Rate Application (GRA)

AI summary

The hearing featured two NSP expert panels — a Depreciation Panel and a Cost of Capital Panel — examined by the Chair and cross-examined by intervenors including the Consumer Advocate (Mahody), Small Business Advocate (Murphy), Affordable Energy Coalition (Deveau), and others (Roscoe, Rudderham, MacDougall).
NSP witness Flemming confirmed that the move from a ~$365 million depreciation figure (post-settlement) to ~$264.9 million reflects the removal of assets slated for Securitization, with a further ~$26.6 million reduction from stripping out existing embedded depreciation rates on those assets.
Flemming characterized the Securitization as "the centrepiece" of the 2026 GRA, describing it as likely the first transaction of its scale in Canada — one that delivers significant customer savings but required a longer-than-normal preparation timeline and involves foregone earnings for NSP.
A legislative uncertainty emerged during cross-examination: NSP's Williams acknowledged that proposed section 35(g) of the Public Utilities Act Nova Scotia, introduced via the Energy Reform (2024) Act, does not yet appear to be in force, raising questions about the statutory foundation for aspects of the application.
The Chair pressed witness Wiedmayer (Cost of Capital Panel) to produce a supplementary return-component analysis before the testimony of a subsequent witness (Mr. Madsen), illustrating active Board management of the evidentiary record on Return On Equity.

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What was filed

Documents filed on this day

20260108-1 Hearing Transcript — 01/08/2026 (Pecurica, Willett, Williams, Flemming, Coyne) transcripts