Topic:"Affordability" in M12394

6.1 NSPML's Return on Equity NSPML's authorized ROE is currently tied to NS Power's ROE and has been 9 percent since the Maritime Link was commissioned in 2018. In the Board's Decision approving the Maritime Link in July 201320F 21 , the B...

AI summary NSPML's authorized Return on Equity (ROE) has been 9 percent since 2018, tied to NS Power's ROE. The NSEB requested a separate ROE for NSPML in the 2026 Assessment Application. NSPML argues for maintaining the 9 percent ROE, citing affordability concerns and the complexity of its operations, despite expert evidence suggesting a higher ROE range of 10.1 to 10.35 percent.

Dear urb: Regarding the above matter and NSP wanting to squeeze more money from its customers, ABSOLUTELY NOT! This mysterious maritime link looks like a dream. I hear nothing about muskrat falls electricity production. Only NSP wanting mo...

AI summary The text strongly opposes NSP's request for rate increases, expressing frustration with the lack of transparency and focus on NSP's financial interests over customer affordability.

NON-CONFIDENTIAL 1 is important to note that NSPML reviews it organizational needs on an ongoing basis and 2 this may evolve as the organization continues to mature. 3 4 NSPML applies an annual salary band escalator based on industry marke...

AI summary NSPML reviews its organizational needs continuously and adjusts salary bands annually based on industry market data. However, budget for salary increases is not currently available. The average historical inflation rate from 2022-2024 was 4.37%, and from 2023-2025.

Government Reeling From US Tariff Broadside On April 2, President Donald Trump announced 24% levies on Japanese products going into the US, although these were later rolled back on April 9 with a 90-day extension. Nevertheless, autos, a se...

AI summary The text discusses the impact of U.S. tariffs on Japanese exports, particularly in the automotive sector, and the resulting economic effects on Japan. It highlights concerns over GDP growth, manufacturing, and inflation, as well as the Bank of Japan's response to these challenges.

NSPML Responses to Nova Scotia Energy Board Information Requests 1 Request IR-03: Canadian investors had a domestic allocation for fixed income of approximately 84%3 If not confirmed, please explain and provide empirical support for any su...

AI summary NSPML responds to Nova Scotia Energy Board information requests regarding investor allocation and borrowing preferences. The response addresses claims about Canadian investors' domestic allocation, U.S. vs. Canadian bond yields, and whether NSPML would prefer borrowing in the U.S. despite higher rates and currency risk.

Concern among investors and traders over the economic effects of President Trump's tariffs has lessened. Major indexes of equity values have retraced all the ground lost after the announcement of reciprocal tariffs on April 2, and they are...

AI summary Investor concerns over U.S. tariffs have decreased as markets recover from initial shocks. The U.S. government's fiscal health, highlighted by Moody's downgrade of federal debt, is now a focal point. Budget negotiations in Congress and rising deficit figures are expected to dominate headlines.

m 1.8% to 1.2%, real consumer spending's annualized quarterly growth rate may improve to 2.2% in the second quarter but then rise no faster than 1.5% annualized, on average, during 2025's second half. Growth benefits if taxes are skewed aw...

AI summary The text discusses economic trends, highlighting that government transfer payments outpaced wage and salary growth in Q1 2025. It suggests that shifting taxation from income to consumption could support private-sector growth and reduce the federal budget deficit. Preliminary data shows significant increases in transfer payments and personal income taxes, while wage growth was lower.

Calendar of Upcoming Economic Data Releases Monday Tuesday Wednesday Thursday Friday 9 Wholesale Trade (Apr) Treasury Auction Allotments (May) 10 QFR (Q1) Manpower Survey (Q3) NFIB (May) Kansas City Fed Labor Market Conditions Indicators (...

AI summary The document presents a calendar of upcoming economic data releases, detailing key indicators such as CPI, PCE, employment surveys, and housing affordability metrics scheduled for release from Monday to Friday.

Elements Status of program 2027 2028 Aerial Inspection Program is in place – has been used for a number of years. Uses a contractor for helicopter operation and NSPML personnel for inspections. Planned for 2 campaigns per year, with option...

AI summary The document outlines the status of various inspection and management programs, including aerial, drone, and LiDAR surveys, as well as vegetation management planning. It highlights uncertainties around costs, supplier availability, and the need for new contracts starting in 2026. The programs are managed by NSPML and involve external contractors.

NON-CONFIDENTIAL 1 d) Please confirm that costs associated with managing these complex commercial 2 agreements (as asserted by NSPML) are accounted for in NSPML's O&M cost 3 projections. 4 i. If not confirmed, please explain. 5 e) Please d...

AI summary The document includes information requests and responses from NSPML regarding the management of complex commercial agreements, risks associated with managing these agreements, and the performance of the Maritime Link project. The responses outline the nature of these agreements and NSPML's role in managing them.

7.1 Emera Obligation to Transfer at End of Term - (a) Transfer to Nalcor On or as soon as reasonably possible after the Expiry Date, Nalcor shall acquire and purchase from Emera and Emera shall, or shall cause its Affiliates to, sell and t...

AI summary This section outlines Emera's obligation to transfer ownership of the Maritime Link to Nalcor upon the expiry of the agreement. The transfer includes the Maritime Link and related agreements, and involves regulatory approvals, the timing of the transfer closing, and the allocation of operational and maintenance responsibilities and costs.

9.5 Lender Requirements Each Party shall cooperate fully with the other Party and shall assist the other Party in complying with obligations imposed by lenders relating to insurance coverage provided pursuant to this Article 9 .

AI summary This section outlines the requirement for each party to cooperate with the other in meeting lender-imposed obligations related to insurance coverage under Article 9.

11.3 Nalcor Events of Default Except to the extent excused as a result of an event of Force Majeure in accordance with [Article 8](#page-121-1) , the occurrence of one or more of the following events shall constitute a default by Nalcor un...

AI summary This section outlines the conditions that constitute a default by Nalcor under the agreement, including failure to pay, legal actions against assets, breaches of terms, false representations, cessation of business, and insolvency events.

1.1 Definitions In this Agreement, including the recitals: " Affiliate " means, with respect to any Person, any other Person who directly or indirectly Controls, is Controlled by, or is under common Control with, such Person, provided howe...

AI summary This section defines key terms in the agreement, including 'Affiliate,' 'Agreement,' and 'Applicable Law.' It establishes that the NL Crown is not considered an affiliate of Nalcor and outlines the scope of the agreement and legal framework governing it.

2.2 Assumption of Liabilities The Assignee hereby accepts the within assignment of the Assigned Agreement as of the Effective Date and covenants and agrees with the Assignor and the Consenting Party to assume the covenants and obligations...

AI summary The Assignee accepts the assignment of the Assigned Agreement and agrees to assume all liabilities and obligations of the Assignor under the Agreement from the Effective Date onwards, including the payment and fulfillment of all covenants and obligations arising after that date.

10.1 Nalcor Events of Default Except to the extent excused by a Forgivable Event, the occurrence of one or more of the following events shall constitute a default by Nalcor under this Agreement (a " Nalcor Default "): - (a) Nalcor fails to...

AI summary This section outlines the conditions under which Nalcor would be in default under the agreement, including failure to pay, breach of terms, false representations, cessation of business, and insolvency events.

rently with the execution and delivery of this Master Agreement a guarantee in an amount not less than the Guarantee Amount specified on the Cover Sheet and in a form reasonably acceptable to Party A. - 8.2 Party B Credit Protection. The a...

AI summary This section outlines credit and collateral requirements under the Master Agreement, including the need for a guarantee and the delivery of financial information by Party A to Party B. The requirements are specified on the Cover Sheet, with default options provided if no specific terms are listed.

7.3 Nalcor Events of Default Except to the extent excused by a Forgivable Event, the occurrence of one or more of the following events shall constitute a default by Nalcor under this Agreement (a " Nalcor Default "): - (a) Nalcor fails to...

AI summary This section outlines the conditions under which Nalcor Energy may be in default under the agreement, including failure to pay, breach of terms, false representations, cessation of business, or insolvency events. These defaults are subject to cure periods and exceptions like Forgivable Events.

2.5 Assignor to Remain Liable Notwithstanding the foregoing, [Nalcor/Emera/NSPI] expressly acknowledges and agrees that it shall remain liable to each of the Consenting Parties as a primary obligor under the Assigned Agreement to observe a...

AI summary This section states that despite any transfers or assignments, Nalcor, Emera, and NSPI remain primarily liable to the Consenting Parties for fulfilling the obligations under the Assigned Agreement.

5.4 Lender Requirements Emera shall cooperate fully with Nalcor and shall assist Nalcor in complying with obligations imposed by lenders relating to the insurance coverage provided pursuant to this Article 5 .

AI summary Emera is required to cooperate with Nalcor to ensure compliance with lender obligations related to insurance coverage under Article 5.

2.4 Confirmation of Status of Assigned Agreement The Assignor hereby confirms to the Assignee that neither it nor, to its Knowledge, the Consenting Party is in default of any of its obligations under the Assigned Agreement. The Consenting...

AI summary The Assignor and Consenting Party confirm that neither is in default of their obligations under the Assigned Agreement, ensuring the agreement's status remains valid and enforceable.

NSPML Responses to Nova Scotia Energy Board Information Requests 1 Concentric agrees that many electric transmission companies recover their revenue 24 as the HST/GST holiday and the removal of the consumer carbon tax, have impacted 25 CPI...

AI summary The document discusses economic growth and inflation trends in Canada, noting stronger first-quarter growth in 2025, followed by a contraction in the second quarter. Inflation has risen slightly, with underlying inflation assessed at around 2.5%. Economic growth is projected to be modest in the second half of 2025, with a gradual increase to 1.8% in 2027.

many countries. Global growth has been resilient. But the historic rise in US tariffs is reshaping global trade, weighing on prospects for global growth and pushing up inflation in the United States. US trade policy has shifted significant...

AI summary Global economic growth remains resilient despite a historic rise in US tariffs, which has reshaped global trade and increased inflation in the US. US trade policy has shifted significantly, raising average tariff rates to 17%, the highest in over 80 years. Uncertainty around US trade policy has eased from its peak in early 2025, though retaliatory tariffs have been modest.

SPONSOR DATE CASE/APPLICANT DOCKET SUBJECT Colorado PUC Staff 2003 Lake Durango Water Company 03S-052W Allowable expenses – depreciation and taxes Value of purchased water Operating Ratio method Rate design for retail/bulk customers Custom...

AI summary The table lists various regulatory cases and proceedings handled by the Colorado PUC Staff from 2003 to 2004, covering topics such as allowable expenses, depreciation, taxes, rate design, cost of capital, and financial assurance. Each entry includes the sponsor, date, case/applicant, docket number, and subject matter.

7.6.1 Determination of Commission-approved deemed equity ratio for Fortis - 267. Fortis requested a 300 bps premium above the generic deemed equity ratio for an Alberta utility on the basis that it faces increased business and regulatory r...

AI summary Fortis requested a 300 bps premium above the generic deemed equity ratio due to increased business and regulatory risks, including competition from REAs and a $10 million annual reduction in revenue. The Commission rejected the request, citing negligible threat from REAs and noting that increasing equity thickness would raise rates for customers and place Fortis at a competitive disadvantage.

Overview The Canadian economy is adjusting to steep US tariffs on several industries and coping with elevated uncertainty. Tariffs have led to a fall in the demand for Canadian goods, affecting the broader economy. The reconfiguration of g...

AI summary The Canadian economy is facing challenges from US tariffs, leading to reduced exports and higher costs. Global trade reconfiguration and structural changes, including demographic shifts and AI adoption, are adding uncertainty. Inflation remains moderate, but monetary policy cannot offset long-term impacts of these factors.

Chart 22: Consumption growth is expected to be slower over the projection horizon Contribution to consumption growth, quarter-over-quarter at annual rates, quarterly data Sources: Statistics Canada and Bank of Canada calculations, estimate...

AI summary Population growth is expected to slow to 0.5% in 2026 and 2027 due to government policies, leading to slower consumption growth. Consumption per person is projected to grow at 1% annually, supported by accommodative financial conditions but constrained by elevated unemployment from trade conflicts.

Residential investment is hampered by supply constraints Residential investment is anticipated to grow modestly over the projection horizon. Slow growth in disposable income is expected to weigh on growth in renovation spending and resales...

AI summary Residential investment is expected to grow modestly due to elevated housing starts and accommodative financial conditions, but it is constrained by affordability challenges, limited land availability, and a shortage of skilled workers in some regions.

Inflation in prices for services Inflation in prices for services excluding shelter is expected to ease over the projection horizon because of the impact of excess supply. Inflation in shelter services prices—which is currently elevated—is...

AI summary Inflation in service prices, excluding shelter, is expected to ease due to excess supply. Shelter service prices, currently high, are projected to moderate as rental supply increases and slower population growth reduces demand.

Why underlying inflation matters Price swings caused by temporary factors such as an energy shock or a drought can have a significant impact on total inflation. Measures of core inflation are typically used to filter out these types of vol...

AI summary Underlying inflation is important for assessing whether inflation changes are temporary or persistent. Core inflation measures can sometimes be misleading, and underlying inflation considers a broader range of indicators to provide a clearer signal.

Past cost increases have boosted inflation Until recently, several factors were increasing input costs. These factors include: - spikes in global shipping costs at the end of 2024 - severe weather that increased agricultural prices, such a...

AI summary Past cost increases, including global shipping costs, severe weather affecting agriculture, and the depreciation of the Canadian dollar, have contributed to higher prices for nonenergy goods. These effects are still influencing consumer prices and are expected to fade by early 2026.

Chart 39: More businesses than in previous quarters are expecting to hold prices steady Percentage of respondents, price change expectations in the next 12 months, Business Outlook Survey, quarterly data Source: Bank of Canada Last observa...

AI summary Chart 39 from the Business Outlook Survey indicates that a growing number of businesses are anticipating holding prices steady over the next 12 months, with data from the Bank of Canada showing this trend as of 2025Q3.

3 The average of all three methods for the North American Electric proxy group is 9.87 percent, 4 within the range of 9.29 percent to 10.32 percent. Based on this analysis, we believe a reasonable 5 estimate of NSPI's required ROE is 9.9 p...

AI summary The document discusses Nova Scotia Power Inc.'s (NSPI) proposed return on equity (ROE) of 9.0%, which is below the estimated 9.9% based on proxy group analysis. NSPI argues that maintaining the current ROE is necessary for rate stability and affordability, but the analysis highlights the need for a competitive ROE to attract investment and support the energy transition. A common equity ratio of 40.0% is recommended due to NSPI's financial risks and ownership of regulated generation assets.

1 j. Conclusions on Business Risk 2 As discussed in this Section, NSPI's risk profile is characterized by the following factors: 1) 3 ownership of substantial regulated generation assets; 2) the need to retire a substantial amount 4 of the...

AI summary NSPI's business risk profile includes regulated generation assets, retirement of thermal generation, capital investments for renewable transition, FAM audits, volumetric risk, weaker economic trends, and storm exposure. The company requests continuation of the storm rider pilot. Credit agencies are closely monitoring NSPI's decarbonization risks.

Submissions Submissions were made by the Three Fires Group Inc. and Minogi Corp. (TFG/Minogi), as well as the Caldwell First Nation (CFN) and Mississaugas of the Credit First Nation (CFN/MCFN). Three proposals were made by TFG/Minogi, whic...

AI summary The Three Fires Group Inc. and Minogi Corp. (TFG/Minogi), along with the Caldwell First Nation (CFN) and Mississaugas of the Credit First Nation (CFN/MCFN), submitted proposals to the OEB. These included a risk premium for Indigenous equity participation, adjustments to WACC for CWIP balances, and concurrent cost recovery for large projects. CFN/MCFN emphasized the need to address First Nations' unique challenges and the importance of engaging them in the proceeding.

Submissions OEB staff agreed with LEI that the current approach of allowing the same equity thickness to all electricity transmitters (and distributors) should be maintained, even if it is a single-asset transmitter. OEB staff submitted th...

AI summary The OEB staff and various stakeholders discuss whether single-asset electricity transmitters should be treated differently from multi-asset transmitters in terms of allowed ROE, equity ratios, and risk premiums. Most parties argue against differentiating based on asset count, while Minogi/TFG and CFN/MCFN advocate for a risk premium in cases of Indigenous equity participation in single-asset transmitters.

The details: - > Food inflation in Canada rose to 4.2% in November (year-over-year) from 3.4% in October, led by higher grocery inflation especially fresh or frozen beef (+17.7%) and coffee (27.8%). Inflation for restaurant prices meantime...

AI summary Inflation in Canada rose to 4.2% in November, driven mainly by higher grocery prices, particularly for beef and coffee. Energy prices remained 5% below last year, influenced by the end of carbon surcharges. Excluding food and energy, inflation dropped to 2.4%, with travel services contributing to the decline. Shelter inflation eased slightly, and the Bank of Canada's preferred CPI measures showed a slowdown.

equity to be tied to NS Power's, although not necessarily set at the same rate. The Consumer Advocate considered it would be appropriate to tie NSPML's return on equity to NS Power's in some fashion. [126] The Consumer Advocate submitted t...

AI summary The Consumer Advocate argues that NSPML's return on equity should be tied to NS Power's, but not necessarily at the same rate. They disagree with Concentric's suggestion of a 75 to 100 basis point increase, citing insufficient analysis and noting NSPML's lower risk due to federal loan guarantees and financial stability.

5.5 Findings [143] It bears repeating that for at least a century, the Supreme Court of Canada has recognized that investors in regulated utilities are entitled to a fair return, which is comparable to the return they would see from other...

AI summary The Supreme Court of Canada has long recognized that regulated utilities must provide investors with a fair return comparable to similar investments. This ensures continued investment and operational stability. Factors like comparable returns and financial integrity are considered, while affordability and reliability are addressed through other regulatory tools.