Topic:"Afudc" in M12743

2.2 Impact of Cybersecurity Incident on Project AFUDC Costs - The CA raises further concerns regarding the AFUDC included in NS Power's application and - recommends that the Board disallow a portion of these costs. This position is based o...

AI summary The CA recommends disallowing a portion of AFUDC costs for NS Power's IAM project due to a 12-month delay attributed to insufficient internal resources, potentially linked to a cybersecurity incident. NS Power disagrees, stating the delay was due to changes in project scope, the NIST Cybersecurity Framework, and evolving technology, not the incident itself.

costs are recovered over a fixed period that aligns with the expected service life. NS Power said the existing PAM systems will not be retired from NS Power's accounts until they are fully amortized. The CA and SBA questioned if some of th...

AI summary Intervenors raised concerns about the allocation of project costs related to a cybersecurity incident, questioning if delays caused increased AFUDC costs. NS Power defended the costs, stating work continued and delays were due to task reorganization. The CA recommended adjusting contingency reserves, but NS Power disagreed, citing the complexity of remaining work.

available evidence, that the project allows NS Power to adhere to industry best practices using identity as a control point and that using MSS is a reasonable way to supplement the utility's capacity. The Board can only disallow costs if t...

AI summary The Board found that NS Power's cybersecurity measures and project management were reasonable, including the use of MSS and the one-month pause following a cybersecurity incident. The Board agreed with the CA that the project had met 80% of its deliverables but will not alter the 15% contingency on the project budget. NS Power is directed to report back by November 15, 2026, on project progress and budget use.

costs are recovered over a fixed period that aligns with the expected service life. NS Power said the existing PAM systems will not be retired from NS Power's accounts until they are fully amortized. The CA and SBA questioned if some of th...

AI summary Intervenors raised concerns about the alignment of cost recovery periods with asset service life and questioned whether cybersecurity incidents contributed to project delays and increased AFUDC costs. NS Power defended the timing of delays and explained that incremental costs were due to design changes and task reorganization, not extended inactivity.

available evidence, that the project allows NS Power to adhere to industry best practices using identity as a control point and that using MSS is a reasonable way to supplement the utility's capacity. The Board can only disallow costs if t...

AI summary The Board found that NS Power's cybersecurity measures, including the use of MSS, are reasonable and in line with industry best practices. The Board also determined that the previous PAM investment was prudent and that the one-month pause following a cybersecurity incident does not justify a reduction in AFUDC. The Board agreed with the CA's assessment of project progress and will not alter the 15% contingency on the project budget, but requires NS Power to report back on project completion by November 15, 2026.