Topic:"Accounting Policies" in M12550

NON-CONFIDENTIAL 1 (f) (i) Historical actuals from the most recent RTU Replacement project (CI 52308, Phase 2 5) were used in developing the original Phase 6 estimate. Recent experience and 3 actuals from the completed RTU replacements und...

AI summary The text discusses the RTU Replacement project, highlighting the use of historical data from previous phases to develop estimates for Phase 6. It mentions improvements in productivity due to standardization and technological advancements, and references attachments and other sections for further details on labour adjustments and project reviews.

Review of C0051815 - RTU Replacements Program - Phase 6 (NSEB M12550) NSPI Responses to NSEB Information Requests 1 Vehicle AO Rates 2 3 The vehicle AO rate is only attributed to Energy Delivery and is determined by calculating 4 the eligi...

AI summary The document discusses the calculation of vehicle administrative overhead (AO) rates for the RTU Replacements Program - Phase 6, which are attributed to Energy Delivery. These rates are determined based on eligible vehicle costs and prorated between capital and operating activities. The methodology follows NSEB-approved accounting policies, and there is no difference in approach between the latest submission and the original application. However, due to a cyber incident, a comparison table of original estimates is not available.

- capital labour driver, ensuring that only half of overtime costs attract administrative overhead. [74](#page-34-2) This - mechanism prevents excessive overhead recovery and combined with the downward trend in AO rates through - 2026, ind...

AI summary The text discusses cost management strategies, including administrative overhead on overtime, reclassification of rental vehicle costs, and the calculation of AFUDC at 6.72%. These measures aim to control indirect costs and ensure accurate financial recovery without inflating asset value.

5.3.1 Conclusions – Indirect Cost Allocation & Transparency - NSPI adheres to NSEB-approved accounting policies for Administrative Overhead and AFUDC. The specific - exclusion of 50% of overtime labour from overhead application and the gra...

AI summary NSPI follows NSEB-approved accounting policies for Administrative Overhead and AFUDC. The exclusion of 50% of overtime labour and detailed separation of travel expenses show a prudent approach to cost allocation, making indirect cost mechanisms reasonable. Focus should be on direct labour management rather than overhead methodologies.

1 Table 18: Summary of Findings – Indirect Cost Allocation & Transparency Report Section Question Midgard Commentary 5.3 Are indirect cost components (including administrative overhead allocations, vehicle and travel loadings, and capitali...

AI summary The document discusses the transparency of indirect cost components, including administrative overhead, vehicle and travel loadings, and capitalized financing costs. It confirms that these components are calculated using transparent methodologies consistent with approved accounting policies, with measures such as a 50% reduction in overhead on overtime labour to minimize burden on ratepayers.

5 Table 20: Summary of Conclusions Report Section Question Midgard Commentary 5.2 Has NSPI demonstrated that equipment and material costs reflect competitive procurement practices and represent reasonable value relative to market condition...

AI summary The document confirms that NSPI has demonstrated competitive procurement practices and reasonable value for equipment and material costs. It also verifies that indirect cost components are calculated using transparent methodologies that ensure appropriate cost recovery without undue burden on ratepayers.