Topic:"Accounting Policies" in M12663

NON-CONFIDENTIAL 21 • Corporate Administrative – Insurance costs were revised lower based on the actual 22 premium costs for policies bound in 2025. 23 • Corporate Administrative – Office costs were added to the 2026/2027 revenue requireme...

AI summary The document outlines various cost adjustments and assumptions for 2026/2027, including revisions to insurance, office, governance, legal, procurement, facilities, finance, and transition costs based on actual 2025 results and expected future activities.

As of December 31, 2025 CURRENT 1 - 30 31 - 60 61 - 90 91 AND OVER Total • Monthly Delta $ - ($702) $176 $759 $691 $906 ($1,043) ($303) ($411) ($281) ($287) ($347) ($370) ($975) ($1,459) ($1,449) ($1,237) Net Cash Balance - end of Month 51...

AI summary The text presents a financial summary with monthly delta values and net cash balances for different time periods, ending with a total accrued liability of $99,537.75 as of December 31, 2025.

NON-CONFIDENTIAL 1 Request IR - 17 2 Reference: N-1(i), Exhibit B-2, pdf p.16-18 (Corporate Administration) notes office costs 3 increase to ~$0.10 million and website development is now treated as capital; and N-1(i), Exhibit 4 B-2, pdf p...

AI summary The document discusses a request for IESO-NS's capitalization policy regarding the reclassification of technology and website spend, and the reconciliation of operating to capital expenses between 2025/26 and 2026/27. IESO-NS responded by providing a draft policy and stating that capital purchases in 2025/26 were in accordance with the policy, with no reconciliation needed between fiscal years.

5. Capitalization Policy – Intangible Assets Intangible assets are recorded at cost less accumulated amortization. Cost includes the purchase price, plus any additional costs directly attributable to the development of the asset and prepar...

AI summary The section outlines the capitalization policy for intangible assets, specifying that they are recorded at cost less accumulated amortization. Costs directly attributable to development and preparation for use are included, while maintenance and repair costs are expensed. Cloud computing software costs are also expensed. Amortization is calculated on a straight-line basis over the estimated useful lives of the assets.

NON-CONFIDENTIAL 20 21 22 23 24 25 26 The Net OM&A Deferral and Variance Account is approved. However, specific guidelines and accounting policies must be developed and approved before there is a recovery of Net Ongoing OM&A amounts from t...

AI summary The Net OM&A Deferral and Variance Account is approved with conditions requiring IESO Nova Scotia to develop guidelines and accounting policies before recovering funds. The IESO anticipates resolving issues like carrying costs on over- or under-collection as part of this process.

Project Work Plan and Schedule Date: March 10, 2026 Project Key activities Estimated Completion MAEA Objects FY 25/26 Year End Audit - Retain qualified accounting firm to conduct audit through competitive bidding - Select accounting framew...

AI summary The FY 25/26 Year End Audit project outlines key activities including retaining an accounting firm, selecting a reporting framework, completing audit working papers, drafting financial statements, and obtaining board sign-off. The audit must be completed by Q2 2026/27 and is governed by MAEA sections 9(a),(r),(s),31.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests 1 Request IR - 28 22 Power's Fuel Adjustment Mechanism). 23 (h) How does IESO Nova Scotia propose to ensure...

AI summary The Nova Scotia Independent Energy System Operator (IESO Nova Scotia) is responding to information requests from the Nova Scotia Energy Board (NSEB) regarding its Net Revenue Requirement Deferral and Variance Mechanism, budget accuracy, cost containment strategies, and accounting policies for variances. The response references a prior Board order (M12412) and outlines requirements for financial controls and accounting guidelines.

NON-CONFIDENTIAL 110 and Variance Account. IESO Nova Scotia is directed to include these specific guidelines 111 and accounting policies, and a description of the financial controls it has adopted, no later than its application for the 202...

AI summary IESO Nova Scotia must include specific accounting guidelines and financial controls in its 2027/2028 revenue requirement application. The Net Revenue Requirement Deferral Mechanism is not expected to defer costs beyond the next fiscal year. The NSEB will review and approve accounting treatments for over/under expenditures. Cross-references to matter M12412 are noted.

6.2 Procedures - Our review of IESO Nova Scotia's Deferral Mechanism included the following specific procedures: - Reviewed the information in the Application on the proposed Deferral Mechanism; - Reviewed the nature, functionality, and pu...

AI summary The Nova Scotia Energy Board (NSEB) reviewed IESO Nova Scotia's Deferral Mechanism, comparing it to the Net OM&A Deferral and Variance Account, evaluating guidelines, and assessing its reasonableness against similar mechanisms used by other organizations. The process included reviewing applications, preparing information requests (IRs), and analyzing risk controls.

- 3 given that actual balances are determined from both the actual ongoing OM&A expenditures, one-time costs and the - 4 available Provincial funding. The Net OM&A Deferral and Variance Account was intended to capture both the need to - 5...

AI summary The document discusses the establishment of the Net OM&A Deferral and Variance Account and the need for stronger cost management controls, formal accounting policies, and clear thresholds to ensure transparency and regulatory oversight. The Board emphasized that guidelines and policies must be developed before recovering Net Ongoing OM&A amounts from the account and that variances exceeding +/-10% must be reviewed.

- development of specific guidelines, policies, and controls relating to the Deferral - Mechanism has not yet been completed." - (a) Please explain how the absence of finalized guidelines, accounting policies, thresholds, and controls alig...

AI summary The text discusses the need for finalized guidelines, accounting policies, thresholds, and controls for a deferral mechanism and questions whether their absence aligns with GUP principles, increases risks, and affects the appropriateness of approving the revenue requirement and deferral mechanism.

17 (1) Variable interest rate resets approximately every 3 months at market rate. 1 Undertaking U-7: 2 3 To provide draft accounting policies. 4 5 Response U-7: 6 7 Please refer to Attachment 1.

AI summary The document discusses an undertaking to provide draft accounting policies, with a response directing to Attachment 1. The variable interest rate resets every 3 months at market rate.

Measurement and Useful Life Property, plant and equipment are recorded at cost less accumulated depreciation. Cost includes the purchase price, plus any additional costs directly attributable to the construction of the asset and preparing...

AI summary The document outlines the accounting treatment for property, plant, and equipment, emphasizing cost inclusion, depreciation methods, and the handling of maintenance and repair costs. Assets are depreciated on a straight-line basis over their estimated useful lives, with annual reviews of these estimates.

Request IR-28: - On pages 38 and 39 of its application, IESO Nova Scotia provides a "simplified calculation for the Net Revenue Requirement Deferral and Variance Mechanism": - a) Will IESO Nova Scotia be preparing an administration manual...

AI summary The document contains two regulatory requests (IR-28 and IR-29) directed at IESO Nova Scotia. IR-28 asks for clarification on the Net Revenue Requirement Deferral and Variance Mechanism, including administrative procedures, financial implications, reporting requirements, risk transfer, and cost containment strategies. IR-29 inquires about the tax treatment of monthly payments made by Nova Scotia Power on behalf of IESO Nova Scotia.

______________ DATE UND# DESCRIPTION REQUESTED OF FOR DUE DATE June 17, 2026 U-7 To provide draft accounting policies IESO NS by Industrial Group July 10, 2026 June 25, 2026 U-8 To provide a copy of the objectives that are used to determin...

AI summary The document outlines several requests made to the IESO by different groups, including the Industrial Group and NSEB, relating to accounting policies, CEO compensation, and studies on interregional transfer capability. These requests are part of a regulatory process and involve the submission of specific information by July 10, 2026.

and important organization. IESO Nova Scotia's actions have shown a lack of regard for stakeholders, the regulatory process and the public interest."[46](#page-28-0) 11 12 13 For reasons indicated above, the CA also generally has concerns...

AI summary The Commissioner of the Environment and Sustainable Resource Development (CA) raises concerns about the accuracy of information in the Application, prepared with minimal staffing, and criticizes IESO Nova Scotia for not finalizing guidelines and accounting policies for the deferral and variance mechanism. The CA questions the lack of cost control mechanisms in place.

1. THE PROPOSED DEFERRAL AND VARIANCE ACCOUNT – OPPOSITION TO EXPANSION The Industrial Group opposes the proposed expansion of the Deferral Account and respectfully submits that the Board should not approve either the proposed permanent st...

AI summary The Industrial Group opposes the expansion of the Deferral and Variance Account, arguing that the Board should not approve its permanent status or expanded scope at this time. They suggest that if a deferral is approved for 2026/2027, it should be limited and interim with strong protections for ratepayers. The Board previously required specific guidelines and accounting policies before allowing recovery of costs from the account, which IESO-NS has not yet finalized.

a. No expansion for Capital Costs IESO-NS seeks approval to expand its proposed Deferral Account to include capital cost variances. However, IESO-NS has not sought Board approval of any specific capital costs in either its 2025/2026 or 202...

AI summary IESO-NS seeks to expand its Deferral Account to include capital cost variances, but has not yet sought Board approval for specific capital costs in its revenue requirement applications. The Industrial Group and DGT argue that including capital costs in the Deferral Account is premature and inconsistent with Good Utility Practice without proper governance, accounting policies, and Board approval.

that provides some measure of flexibility and assurance that 276 it will have the funds to carry out its mandate irrespective of which "bucket" of spend that the 277 associated costs might fall. 278 279 IESO Nova Scotia acknowledges that t...

AI summary IESO Nova Scotia acknowledges its current early stage and expects improved budget predictability as it achieves full staffing. It has implemented mechanisms like the OM&A Deferral and Variance Account (M12412) and the proposed Net Revenue Requirement Deferral and Variance Mechanism (DVM) to manage costs and ensure regulatory oversight.

32 M12633 Transcript, June 17, 2026, pages 234 - 235. 654 655 And: 656 Q. And as I understand the evidence as it's come in in this hearing, the request that 657 categories such as capital would be included, you've modified that in your tes...

AI summary The discussion centers on the clarification of capital cost recovery, specifically the inclusion of depreciation and interest expenses rather than deferring capital itself. The testimony acknowledges the need for clarity in the Application and references the DVM guidelines and final accounting policies to be submitted to the NSEB.

38 M12633 Transcript, June 25, 2026, page 507-508. 799 867 accounting policies must be developed and approved before there is a recovery of Net 868 Ongoing OM&A amounts from the Deferral and Variance Account. Further, the 869 guidelines sh...

AI summary The document discusses the requirement for accounting policies to be developed and approved before recovering ongoing OM&A amounts from the Deferral and Variance Account. It also states that variances exceeding +/-10% will trigger a review process. IESO Nova Scotia interprets the Board's direction in M12412 to automatically trigger a review when a cost category exceeds the approved revenue requirement by +/-10%.

1 Office Costs - 2 Throughout the Application, the IRs and during the hearing, a great deal of time was spent - 3 reviewing the 2025/2026 expected results, with the acknowledgment that the final audited - 4 financials had not been complete...

AI summary The document discusses concerns raised about the IESO-NS 2026/2027 budget, particularly the allocation of Office Costs, including a significant 'Other Expense' category. The SBA argues for greater transparency and accountability by separating travel-related expenses into a distinct category. The discussion also highlights the need for an accounting policy review to ensure clarity in budget breakdowns.

15 Net Revenue Requirement Deferral and Variance Mechanism Account - Monthly Reports - 16 For the Net Revenue Requirement Deferral and Variance· Mechanism Account, the SBA_ also - 17 respectfully submits that it is important, at least the...

AI summary The SBA argues that IESO-NS should provide monthly reports on the Net Revenue Requirement Deferral and Variance Mechanism Account, citing concerns about transparency, prudence, and the need for timely financial insights. This is especially important given IESO-NS's limited historical data and the potential burden on ratepayers.

1 early stage, vacancies and external support costs must be understood together, as IESO Nova 2 Scotia requires flexibility to carry out its mandate while continuing to recruit and work toward 3 steady-state operations. 4 5 IESO Nova Scoti...

AI summary IESO Nova Scotia emphasizes the need for flexibility in its operations and the proper inclusion of procurement-related costs in the Application. It also supports the approval of the DVM as an extension of the Net OM&A Deferral and Variance Account, aligning with prior Board direction in M12412.

LIST OF UNDERTAKINGS NO. PAGE NO. 6 System Operator was created in October 2024 and has been 7 active, first through a Board of Directors appointed in 8 February of 2025, and then through the hiring of various 9 staff, starting in the summ...

AI summary The document outlines the creation of the System Operator in October 2024 and the filing of two annual applications by IESO NS for the recovery of expenditures and revenue requirements. The first application, approved in February 2026, included the creation of an OM&A Deferral and Variance Account, while the second application, filed in January 2026, requested a permanent variance account with additional cost categories.

1 concluded, that would be the final approval for that 2 would include these policies. 3 Q. Okay. So on page 48, it talks 4 about "Capitalization Policy Intangible Assets." It 5 talks about, "Intangible assets are recorded at cost less 6 a...

AI summary The discussion centers on the capitalization policy for intangible assets, specifically how they are recorded at cost less accumulated amortization. It also touches on the depreciation being accumulated for the '25/'26 financial period and how provincial funding covers capital expenditures, preventing customer impact from these costs.

IESO NOVA SCOTIA PANEL 227 Cr-ex, (MacAdam) 1 employee salary costs, you have things like travel, 17 of answers given and references to I believe you 18 described it as an unaudited financial statement, and 19 there's been some responses w...

AI summary The document discusses an undertaking (U-5) to provide an unaudited financial statement and references a deferral account, specifically the OM&A (Operating and Maintenance and Administration) component. The context involves a regulatory proceeding involving the IESO Nova Scotia Panel and the NSEB.

IESO NOVA SCOTIA PANEL 241 Cr-ex, (Rudderham) 1 application to say why we believe we need to continue to 16 number minus another. Like, what policy maybe you 17 could provide more information of what you're looking for? 18 Maybe I'll ask y...

AI summary The text discusses the current Weighted Average Cost of Capital (WACC) and the deferral account, noting that accounting policies are in progress and awaiting finalization. The WACC is tied to the provincial line of credit, which is confidential, and includes a small proportion from Nova Scotia Power's interim fee.

IESO NOVA SCOTIA PANEL 249 Cr-ex, (Rudderham) 1 THE CHAIR: So, Mr. Furey, we have 2 requests by the company for the approval of deferral and 3 variance account, which these accounting policies would 4 apply. They're not currently approved,...

AI summary The discussion centers on the approval of a deferral account and variance account by the Board, with concerns raised about the current draft status of the accounting policies and their approval process. The Chair and Mr. Furey question whether the Board can rely on incomplete and unapproved policies for decision-making.

1 However, if something were to come up 2 where there was deemed to be some sort of rate impact or 3 shock, then I think the Board, when it came back to our 4 time of seeking recovery and approval, would very much be 5 in the position to d...

AI summary The discussion revolves around the potential for rate impacts and how the Board might handle such situations by deferring recovery over multiple years. There is clarification about the undertaking to provide accounting policies and related mechanisms, as well as a mention of revenue requirements and their impact on rates.

IESO NOVA SCOTIA PANEL 295 Cr-ex, (Rudderham) 1 So that's what you're when you Q. 2 say that, that's what you're I'm asking you, when you 3 say those terms? 4 (Johnston) Yeah, and I think what A. 5 I was trying to infer is that would be ou...

AI summary The discussion revolves around materiality thresholds in accounting policies, with a reference to NSPI's threshold of $250,000 and the IESO's anticipated establishment of a similar threshold by July. The conversation also references Exhibit N-5, which contains IESO responses to the Industrial Group.

LIST OF UNDERTAKINGS NO. PAGE NO. June 17, 2026 U-1 To provide any work product from any consultant hired to support the development of the benefits package, including compensation ranges and the benefits package 75 U-2 To provide Hugessen...

AI summary The document outlines a list of undertakings related to providing financial and operational information, including work products from consultants, compensation details for the CEO, and accounting policies. These undertakings are to be filed by specific dates and relate to regulatory proceedings.

IESO NOVA SCOTIA PANEL 371 Cr-ex, (Rudderham) 1 Q. So this is a table of spending by 18 Is it 20? Yeah. 19 (Milligan) So I have no A. 1 information that that would have changed materially, Ms. 2 Rudderham. 3 Q. Okay. And what policy or 4 p...

AI summary The discussion focuses on the categorization of costs as capital or operating expenses, referencing IFRS accounting standards and the IESO's accounting policies. The IESO follows IFRS to determine whether costs are capitalized or treated as operating expenses based on the future value of assets.

IESO NOVA SCOTIA PANEL 395 Cr-ex, (Rudderham) 1 discussed that any of those would be recovered by IESO 2 Nova Scotia through a section 30 application specifically. 3 Our interpretation or our position on reading that section 4 is that it's...

AI summary The discussion focuses on the interpretation of section 30 of the Act, which pertains to the recovery of ongoing operational costs from customers once an energy supply contract is in place. The IESO currently does not have a document articulating the definition of these costs and has not yet incurred any section 30 costs.

IESO NOVA SCOTIA PANEL 467 Cr-ex, (Kayter) 1 I don't think it raises a particular 6 that okay? Yeah, okay. All right. 7 So we'll do that. Why don't we break 8 again for 15 minutes. So it's 25 after 12:00. We'll come 9 back at 20 to 1:00 an...

AI summary The text is a transcript from a regulatory proceeding involving the IESO Nova Scotia Panel 467 Cr-ex, (Kayter). It includes a cross-examination by Mr. Mahody focusing on the deferral and variance account, specifically referencing the IESO's first Revenue Requirement Application for the period ending March 31, 2026.

IESO NOVA SCOTIA PANEL 477 Cr-ex, (Mahody) 1 The Board makes directions regarding 2 all future revenue requirement applications are to include 3 certain things. And I again appreciate that at the time 4 this was given, this application had...

AI summary The Board has directed the IESO to include specific standardized filings in future revenue requirement applications. The IESO confirms its intention to comply with these requirements and is working on regulatory compliance, including drafting deferral and variance mechanism guidelines and finalizing accounting policies under audit by BDO.

1 provide some draft accounting policies. But from a 2 completion perspective, the filing of the all of those 3 items with the Board, is there an impediment any 4 impediment for IESO committing to filing those by, say, 5 September of 2026?...

AI summary The discussion revolves around the timing of filing accounting policies and guidelines with the Board, particularly in alignment with the '25/'26 Board's findings. The IESO plans to file these by the time of the '27/'28 revenue requirement application. The deferral mechanism's impact on future revenue requirements is also discussed.

account; is that correct? A. (Johnston) Yes, I think that's that was the intent here and I think it was really just trying to recognize that we know that every year whatever we forecast and what we actually spend will vary by hopefully a s...

AI summary The witness confirms the intent behind an accounting approach that acknowledges annual variances between forecasts and actual spending. They also clarify that the request to include capital categories has been modified to focus on depreciation and interest-related expenses rather than deferring capital itself.