Topic:"Accounting Policies" in M13133

NS Power Application for Financing Order to Reduce Costs for Customers Redacted 1 c) the issuance of limited partnership units of the LP to NS Power constitutes value 2 received for the purposes of section 16(c) and the retention by NS Pow...

AI summary NS Power is applying for a Financing Order to reduce customer costs through a limited partnership structure. The application involves exemptions under the Affiliate Code of Conduct and the Cost Allocation Manual. Updates to these documents will be filed if the Financing Order is issued.

7 4.1.2 2027 BA - 8 The 2027 BA under-recovery amount of $69.10 million represents the remaining FAM balances - 9 as of the end of September 30, 2026, along with associated interest. - 10 The breakdown of the 2026 BA amount and the adjustm...

AI summary The 2027 BA under-recovery amount of $69.10 million includes remaining FAM balances as of September 30, 2026, along with associated interest. The 2026 BA amount and adjustment to the AA balance are detailed in Figure 5.

SPECIAL CONDITIONS (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a cap...

AI summary The special condition outlines that metering is typically installed on the low voltage side of the transformer. If primary metering is required, the customer must contribute the additional capital cost. When metering is on the high voltage side, an adjustment of 1.9% will be made to the metered kWh usage.

ce - of, let's say, 180 million, we would then move that into a - FAM liability or a credit to customers, an amount owing to - customers of $34.5 million. - MS. McNAMARA: Okay. And I have some - INTERNATIONAL REPORTING INC. CERTIFIED COURT...

AI summary The discussion revolves around the transfer of regulatory assets related to coal thermal assets, the treatment of income tax for a limited partnership (LP), and the allocation of depreciation and interest expenses between Nova Scotia Power and the LP. The parties are clarifying how income tax arises for the LP and whether it is offset by deductions in Nova Scotia Power.

in the LP. - So the LP's got back income no offsetting deduction, if - that makes sense. - MS. McNAMARA: So would the tax - expense in the LP be offset by a deduction in Nova Scotia - Power? - MR. FERGUSON: That's right. Like not - perfect...

AI summary The discussion revolves around the tax implications of transferring assets to a limited partnership (LP) and how this affects Nova Scotia Power's credit metrics. The transfer removes the equity component of financing, reducing taxable income and allowing Nova Scotia Power to reduce debt and equity in line with its capital structure.

ved rate. And so that would - be $26.8 million annually. It would be a depreciation - expense that would be included in rates. As well, there - would be financing costs associated with the net book - value or rate base associated with thos...

AI summary The text discusses the financial aspects of asset depreciation, financing costs, and under-recovery of fuel and purchase power, including recovery timelines from 2027 to 2039. It outlines how these costs would be included in rates and recovered through various mechanisms, such as AA/BA applications and IESO riders.

2026. So this would be very - consistent and familiar to most on the call from normal - AA/BA applications. Attachment 1 to that appendix would - include the FAM calculation model. Attachment 2 and - Attachment 3 would be the calculations...

AI summary The document discusses the treatment of the FAM balance, including the calculation model and credit application to customer classes, as well as the deferral treatment of the PHP, which impacts revenue and cost responsibility in generation and transmission functions. Cost allocation methods, such as the 3CP and annual energy requirements, are also outlined.

9 Request IR-16: - 10 Page 22 explains that accounting, audit and other administrative fees are forecasted to grow by 11 2.5% per year. - 12 a) Please explain why NS Power selected a 2.5% growth rate for these fees? - 13 b) Why did NS Powe...

AI summary The document requests an explanation from NS Power regarding the selection of a 2.5% annual growth rate for accounting, audit, and administrative fees, and why the mid-point of the Bank of Canada's inflation target was not considered appropriate.

4 Request IR-30: - 5 On pg. 44 of its application, NS Power addresses Accounting and Tax Treatment. - 6 a) Does NS Power propose to prepare new accounting policies to address the accounting 7 matters resulting from the securitization trans...

AI summary The document outlines a regulatory request (IR-30) directed at NS Power, asking whether new accounting policies will be prepared to address the accounting and tax treatment of a securitization transaction, and clarifying the consolidation status of the LP and the impact of the securitization on total taxes.

Request IR-3: - Reference: Sections 2.0 and 3.1; Figure 3; Appendix A, Summary; Appendix B, "Balances to - Securitize". - Please reconcile the references to financing fees. Appendix A and Section 2.0 describe $12.5 - million as 1.25 percen...

AI summary The text requests clarification on discrepancies in financing fees referenced in Appendix A and Section 2.0 of Request IR-3, noting a difference between 1.25% and 1.35% of $1 billion. It asks for confirmation of the correct percentage, explanation of the discrepancy, identification of affected schedules, and whether other financial or accounting conclusions are impacted.

Request IR-8: - Reference: Sections 11.0 and 12.1; Figures 10-11; Appendix A - Please provide NS Power's existing accounting memorandum or other supporting analysis for the - proposed securitization transaction, including the applicable ac...

AI summary Request IR-8 asks NS Power to provide an accounting memorandum and supporting analysis for a proposed securitization transaction, covering recognition, reclassification, financing costs, asset transfers, consolidation, balance-sheet presentation, and illustrative journal entries.