5. Regulatory lag
p. p. 1
5. Regulatory lag NSPI faces some regulatory risk with respect to the timeliness of fuel cost recovery, although this risk is lower now than when the FAM was not in place. Although the FAM allows the Company to recover fluctuating fuel exp...
AI summary NSPI faces lower regulatory risk in fuel cost recovery due to the Fuel Adjustment Mechanism (FAM), which allows annual recovery of fluctuating fuel costs with NSUARB approval. Future renewable energy from the Muskrat Falls Hydroelectric Project is expected to reduce the impact of fluctuating fuel prices.