Topic:"Accounting Policies" in M12412

5 1. Table 15: Summary of One-Time Transition Cost Categories One-Time Transition Costs Category Ongoing O&M Costs ($) HR Transition Planning, Change Management 0.31M Program and Project Management, and Financial Advisory 0.41M Accounting...

AI summary Table 15 outlines various one-time transition cost categories and their associated ongoing O&M costs, including HR transition planning, program management, accounting setup, and office technology. Total one-time transition costs are listed as $1.23M, with provincial funding amounting to $2.68M and a surplus of $1.44M.

20 C. Accounting Set-Up and Bookkeeping ($0.02M) - 21 These costs are to set up the NSIESO's financial operations, including designing and implementing - 22 the systems and processes through which financial data is collected, analyzed, and...

AI summary The costs outlined are for setting up the NSIESO's financial operations, including the design and implementation of systems and processes for collecting, analyzing, and communicating financial data within the organization, as well as monthly processing.

- be "required to fulfil the NSIESO's core functions." - a) Does the NSIESO anticipate adopting NS Power's accounting policies regarding, for example, the definitions of capital projects and the cost thresholds for projects that must - be...

AI summary The text consists of a series of questions directed at the NSIESO regarding its anticipated adoption of NS Power's accounting policies, capital applications, asset transfers, and potential expenses related to NS Power-owned assets.

Response IR - 3 - a) The NSIESO is a new organization in the start-up phase and as such has not yet had an - opportunity to contemplate accounting policies. Please see Response to NSEB-IR20(c), - capitalization policy. - b) The NSIESO does...

AI summary The NSIESO, in its start-up phase, has not yet developed accounting policies and does not anticipate immediate capital applications, though future ones are possible. References are made to prior responses regarding capitalization policy and related items.

April 1 2025 - March 31, 2026 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Forecast Forecast Forecast Forecast Forecast Forecast Sep-25 Oct-25 Forecast Nov-25 Forecast Dec-25 Forecast Jan-26 Forecast Feb-26 Mar-26 Forecast Forecast Total Forecast Fo...

AI summary The document outlines a budget forecast for various operational and financial activities from April 2025 to March 2026, including transition planning, legal employment costs, benefit and pension plan design, executive compensation reviews, and accounting and bookkeeping activities. The table provides monthly and total forecasts for these initiatives.

Response IR - 26 a) The $0.50 million estimate for the Technology Needs Assessment and Business Case reflects anticipated external consulting services to support the NSIESO in establishing its technology environment through one or more sco...

AI summary The NSIESO estimates a $0.50 million cost for a Technology Needs Assessment and Business Case, involving external consulting services to support its technology environment. The scope includes inventorying Nova Scotia Power's systems, identifying technology needs, and developing a business case with cost and risk considerations. This is a planning estimate, and formal quotes will be sought before proceeding.

NON-CONFIDENTIAL 22 OM&A costs in the event of a final order from the Energy Board because of the rule 23 related to retroactive rate making. Furthermore, the use of a variance sub-account keeps 24 ratepayers whole (in the event actual cos...

AI summary The text discusses OM&A cost management under potential Energy Board orders, emphasizing the use of a variance sub-account to ensure ratepayers are kept whole and subject to prudence review. It references prudence review processes (NSEB-IR11) and notes that accounting policies are not yet finalized. The NSIESO (NSEB) is involved in these proceedings.

- 4 Figure 1 Summary of findings, observations and conclusions # Section title Findings, observations, and conclusions • At the time of this report, the NSIESO has not yet developed accounting policies. It is recommended that the NSIESO pr...

AI summary The NSIESO has not yet developed accounting policies, which could lead to misrepresentation of periodic deferral amounts. It is recommended that the NSIESO prioritize the development of these policies to ensure compliance with accounting standards before the recovery of Net Ongoing OM&A amounts in the April 2027 test year application.

7.2 Procedures - Our review of NSIESO's deferral account included the following specific procedures: - Reviewed the information in the Application on the proposed deferral account and prepared IRs; - Reviewed additional information provide...

AI summary The review of NSIESO's deferral account involved assessing the application, RIRs, controls, accounting policies, comparisons with other organizations, and evaluating reasonableness. Procedures included analyzing risks, aligning with accounting policies, and comparing mechanisms used by similar entities.

7.3.1.4 Applicable accounting policies and GUP - Applicable accounting policies that apply to regulatory deferral accounts are shaped by both international and - national standards, depending on the jurisdiction and the accounting framewor...

AI summary Accounting policies for regulatory deferral accounts are influenced by international and national standards, depending on jurisdiction and accounting frameworks. Commonly used standards among comparable organizations are outlined, though specific entities are not named in the text.

7.3.1.4.3 Regulatory best practice - In addition to information from other comparable organizations, we have also considered research and data from the National Association of Regulatory Utility Commissioners ("NARUC") in understanding sta...

AI summary The text references NARUC guidelines on regulatory deferral accounts, emphasizing regulatory approval, defined scope, and time limits. It recommends NSIESO develop accounting policies for capitalization thresholds, revenue recognition, and budget tracking to manage deferral accounts effectively.

16 Figure 32 – NSIESO's proposed deferral sub-accounts Sub-account name Description of recorded funds per the Application Net Ongoing OM&A Deferral Account ("Sub-Account No. 1") Records the approved forecast Net Ongoing OM&A costs for the...

AI summary The document outlines NSIESO's proposed deferral sub-accounts, which include Net Ongoing OM&A Deferral Account, Net OM&A Variance Account, and Actual Net OM&A Account. These accounts track forecasted and actual OM&A costs, as well as variances and one-time transition costs.

7.4 Conclusion Overall, the implementation and use of deferral accounts and mechanisms is a common practice among utilities and ISOs across Canada. They are important to help ensure stabilization of rates, alignment of cost recovery with s...

AI summary The NSIESO's proposal for a Net OM&A Deferral and Variance Account aligns with industry practices but requires enhanced cost controls, accounting policies, overrun thresholds, and regulatory guidelines to ensure ratepayer fairness and compliance. Key recommendations include prudence reviews, standardized accounting, and defined recovery limits.

Deferral account – accounting policies Report reference: Page 5, bullet 2 and Page 51 (lines 31-39) to Page 52 (lines 1-3) • "At the time of this report, the NSIESO has not yet developed accounting policies. It is recommended that the NSIE...

AI summary The NSIESO lacks developed accounting policies, prompting a recommendation to prioritize their creation before the 2027 test year to ensure compliance with standards for revenue and expense recognition. Alignment with NSPI's policies is suggested to avoid misrepresenting deferral account amounts and ensure consistency with GUP practices.

- (ii) Volatility and variability Expense categories that are highly variable would be considered to have a higher degree of significance. 1 (iii) – Expenses that Impact on end user decision-making 2 frequently impact decisions would have...

AI summary The text discusses the importance of volatility and variability in expense categories and outlines filing requirements for future applications. It emphasizes the significance of expenses that impact decision-making, such as those related to reliability and safety. It also addresses accounting policies for the NSIESO, suggesting that consistency with Nova Scotia Power Inc.'s US GAAP could offer benefits in comparability, alignment, and transparency.

improve the clarity for market participants, increasing 1 transparency and better aligning with GUP guiding 2 principles. 3 (iv)Simplification – Given the NSPI and the NSIESO will both 4 report to the NSEB, the added consistency will make...

AI summary The text discusses the need for improved clarity and transparency in the regulatory process, particularly in the alignment of accounting policies between NSPI and NSIESO. It also raises questions about the bifurcation of costs into multiple accounts and the use of a deferral sub-account for prudence review purposes.

Doane Grant Thornton Evidence DGT's submission covers several areas of the Application and includes comments and recommendations regarding the test year budget, benchmarking administration salaries and wages, organizational structure, and...

AI summary DGT's submission addresses the Application's test year budget, salary benchmarking, organizational structure, and Net OM&A Deferral Account. IESO Nova Scotia agrees with many recommendations but notes the need to consider its early developmental stage. DGT recommends setting cost recovery thresholds for the Net OM&A Deferral Account to prevent uncontrolled overruns, which IESO acknowledges but emphasizes ongoing implementation plans for 2026.

ropose a rate recovery mechanism. It proposed to defer the approval of a rate recovery mechanism until a later application for its revenue requirement for the period April 1, 2026, to March 31, 2027. - [4] The Board considered the matter i...

AI summary The Board approved the IESO's initial test year expenditure and revenue requirement for the period ending March 31, 2026, but deferred the approval of a rate recovery mechanism until a later application. Specific guidelines and accounting policies for the Net OM&A Deferral and Variance Account must be developed and filed before recovery can occur.

decision, the IESO expected to record a deferral of $5.31 million ($6.75 million less $1.44 million) in the variance account upon approval of its forecast OM&A costs in this decision (NSEB IR-12). [37] Doane Grant Thronton reviewed IESO No...

AI summary The IESO proposed a Net OM&A Deferral and Variance Account, which was reviewed by Doane Grant Thronton. The review found that while deferral accounts are standard practice, the IESO's proposal lacked cost management controls and accounting policies, leading to recommendations for improvement.

mportant that they be re-established in an efficient and effective manner. Thus, the Board concurs with Doane Grant Thornton that the IESO must develop specific cost management controls as a priority. [44] Further, while the Board agrees w...

AI summary The Board agrees with Doane Grant Thornton that the IESO must prioritize developing cost management controls. It supports the Net OM&A Deferral and Variance Account but requires specific guidelines for cost recovery. The IESO's accounting policies must align with NS Power's Fuel Adjustment Mechanism and Decarbonization Deferral Account standards. The More Access to Energy Act mandates prudence reviews for forecast costs, with the Board referencing its 2025 NSEB 10 decision on prudence tests.

4.0 SUMMARY OF FINDINGS [87] The Board approves IESO Nova Scotia's proposed expenditure and revenue requirement for its initial test year ending March 31, 2026. For the initial test year, this approved amount is $6,751,287, with a net amou...

AI summary The Board approves IESO Nova Scotia's revenue requirement for the initial test year ending March 31, 2026, and sets conditions for future filings. Specific accounting policies and financial controls are required, along with enhanced integrated resource planning that includes regional system modeling and emissions considerations. Quarterly reporting on the transition from NS Power to the IESO is also mandated.

The Board orders that: - 1. IESO Nova Scotia's expenditure and revenue requirement for its initial test year ending March 31, 2026, is approved at $6,751,287, with a net amount of $5,306,824 after the application of provincial funding. - 2...

AI summary The Board approves IESO Nova Scotia's expenditure and revenue requirement for 2026, sets guidelines for future applications, and outlines requirements for integrated resource planning and quarterly reporting. The decision emphasizes detailed financial controls, engagement with Indigenous groups, and integration of emissions offset costs into modeling.

Request IR-10: - Reference: Exhibit N-1(i), p. 10 of 36 - a) Why are the costs being bifurcated into two accounts, one for the approved amount and one for the variance, rather than recording all costs in one account and comparing the total...

AI summary Request IR-10 questions the NSIESO's method of bifurcating costs into approved and variance accounts, seeks clarification on OM&A expense recovery without rate adjustments, and inquires about accounting policies. The NSIESO's approach to deferring OM&A costs via variance mechanisms is challenged, with requests for policy documentation.

32 Request IR-3: 33 34 RE: Exhibit A-1, p. 10, stating that the NSIESO anticipates future capital applications that may be 35 "required to fulfil the NSIESO's core functions." 36 37 (a) Does the NSIESO anticipate adopting NS Power's accoun...

AI summary Request IR-3 inquires about NSIESO's capital applications, accounting policies, asset transfers from NS Power, and asset usage. Request IR-4 seeks details on the Transition Committee's existence, membership, and operations. Questions focus on cost thresholds, project approvals, and procedural timelines.

Non-Confidential To: The Nova Scotia Independent Energy System Operator ("NSIESO") 31. Reference: Exhibit B-2 (page 28 of 36, line 1, Table 14 & lines 9-11)…"External Financial Audit: These costs are for services for external financial aud...

AI summary The document contains requests for information related to external financial audit costs and one-time transition costs, including supporting calculations and quotes from accounting firms. These requests are directed to the Nova Scotia Independent Energy System Operator.

18 1 2025 M12412 18 the NSIESO's next application? Please be specific. 19 (c) Is DGT familiar with standardized filing requirements in other jurisdictions 20 with an Independent Electricity System Operator? If so, please provide a 21 summa...

AI summary The document includes several requests related to the NSIESO's application, standardized filing requirements, and accounting policies. It asks about familiarity with other jurisdictions' requirements and whether consistency in accounting policies between NSIESO and NSPI is beneficial.

Deferral Account The Industrial Group does not oppose establishment of a Deferral Account given that IESO-NS has been newly created and its responsibilities have not yet stabilized. However, clear parameters and limits to a Deferral Accoun...

AI summary The Industrial Group supports a Deferral Account for IESO-NS but emphasizes the need for clear parameters to protect ratepayers. DGT recommends financial controls, prudence standards, and a 10% overrun threshold for cost categories, citing ISO analogies. IESO-NS disagrees with the 10% threshold, arguing it is premature given their early operational stage and requests flexibility in setting benchmarks.

SBA Concerns The SBA respectfully submits that evidence filed by Doane Grant Thornton and Synapse Energy Advisors on behalf of Board Counsel appears to share the concerns outlined above, as evidenced in the suggestions for the need for mor...

AI summary The SBA raises concerns about the timeline for implementing financial controls and accounting policies recommended by Doane Grant Thornton and Synapse Energy Advisors. IESO-Nova Scotia claims these measures are in 'active development' and will be established by 2026, but the SBA questions whether this timeline is sufficient to impact the upcoming 2026/2027 revenue requirement application.

ities to perform its executive, administrative, and occupational functions" (Exhibit N-1 – Application of IESO-NS, page 1, lines 14-15). The findings of Doane Grant Thornton confirm that description. The Board Consultant has put forward a...

AI summary The Board Consultant recommends IESO-NS improve financial transparency, establish cost controls, develop compliant accounting policies, and implement deferral account guidelines. The Board is urged to direct IESO-NS to follow these recommendations, ensuring efficient and transparent operations that protect ratepayer interests.

ropose a rate recovery mechanism. It proposed to defer the approval of a rate recovery mechanism until a later application for its revenue requirement for the period April 1, 2026, to March 31, 2027. - [4] The Board considered the matter i...

AI summary The Board approves the IESO's proposed expenditure and revenue requirement for the initial test year ending March 31, 2026, approving an amount of $6,751,287, with a net amount of $5,306,824 after provincial funding. It also concludes that a Net OM&A Deferral and Variance Account should be established, with specific guidelines and accounting policies to be developed and approved before recovery of amounts from the account.

decision, the IESO expected to record a deferral of $5.31 million ($6.75 million less $1.44 million) in the variance account upon approval of its forecast OM&A costs in this decision (NSEB IR-12). [37] Doane Grant Thronton reviewed IESO No...

AI summary The IESO proposed a Net OM&A Deferral and Variance Account, which was reviewed by Doane Grant Thronton. The review found that while deferral accounts are standard practice, the IESO's proposal lacked cost management controls and accounting policies, leading to specific recommendations.

4.0 SUMMARY OF FINDINGS [87] The Board approves IESO Nova Scotia's proposed expenditure and revenue requirement for its initial test year ending March 31, 2026. For the initial test year, this approved amount is $6,751,287, with a net amou...

AI summary The Board approves IESO Nova Scotia's expenditure and revenue requirement for the initial test year ending March 31, 2026, at a net amount of $5,306,824 after provincial funding. It also sets requirements for future applications, including financial controls, formal support for assumptions, historical financial data, and engagement with Indigenous groups. The IESO is directed to address specific issues in its integrated resource planning, including modeling scenarios and emissions costs, and to provide quarterly reports on its transition from NS Power.

The Board orders that: - 1. IESO Nova Scotia's expenditure and revenue requirement for its initial test year ending March 31, 2026, is approved at $6,751,287, with a net amount of $5,306,824 after the application of provincial funding. - 2...

AI summary The Board approves IESO Nova Scotia's revenue requirement for 2026 and sets requirements for future filings, including detailed financial and planning information. It also directs the IESO to address specific issues in its integrated resource planning, including modeling scenarios with New Brunswick and incorporating demand response opportunities.