Topic:"Asset Management" in M12394

10 Note 1: Converters and substation operations, marine surveillance, and service 11 agreements for asset maintenance programs have been aggregated to protect against 12 disclosure of commercially sensitive information. 13

AI summary The text notes that certain operations and agreements have been aggregated to protect commercially sensitive information, including converters and substation operations, marine surveillance, and service agreements for asset maintenance programs.

Highly Complex Asset: As further elaborated upon in Concentrics's Expert Evidence, the Maritime Link is a highly complex set of assets. The High Voltage Direct Current ("HVDC") interconnection comes with increased operational risk as compa...

AI summary The Maritime Link is a highly complex asset involving HVDC technology, subsea cables, and complex agreements with NLH. It has a higher debt-to-equity ratio compared to traditional T&D utilities, increasing operational and financial risks. Comparators with subsea transmission assets are limited, and ROE ranges are provided for reference.

Date Filed: July 18, 2025 Page 27 of 29 1 8.0 ASSET MANAGEMENT OUTLOOK 2 3 In the 2025 Assessment Decision, the Board directed NSPML to file its Asset 4 Management Plan as part of its 2026 Assessment Application. Please see partially 5 con...

AI summary The document discusses NSPML's 10-year Asset Management Outlook, which was filed as part of its 2026 Assessment Application. It includes information on near-term expenditures such as the Cable Protection Project and upgrades to HVDC station control and monitoring systems.

NSPML's Asset Management Outlook July 18, 2025 1 1.0 INTRODUCTION 2 3 NSPML has the obligation to manage the operation and maintenance of the Maritme Link 4 in accordance with Good Utility Practice for a long-term, low cost, reliable trans...

AI summary NSPML is responsible for managing the Maritime Link in accordance with Good Utility Practice, ensuring its long-term, low-cost, reliable operation. The NSEB, NLH, and Canada's Independent Engineer oversee NSPML's activities. The document outlines NSPML's asset management outlook for the next ten years, focusing on maintenance, safety, and performance.

3.0 SUSTAINING CAPITAL OUTLOOK In the context of sustaining capital requirements, NSPML is unique in that it is focused on the asset management and operations of a singlular linear transmission asset. While the combination of assets within...

AI summary NSPML's sustaining capital outlook focuses on periodic maintenance and upgrades for the Maritime Link transmission asset. Major projects are expected to be periodic rather than annual, with mid-size initiatives increasing around asset milestones. The outlook is subject to change based on asset health, market factors, and vendor availability.

- 2 be subject to NSEB regulatory oversight. 1 4.0 FIVE YEAR OUTLOOK - PLANNED SUSTAINING CAPITAL PROJECTS (2026-2031) 2 3 There are two material sustaining capital initiatves under development in the near term; the 4 first is the Submarin...

AI summary The document outlines two major sustaining capital initiatives: the Submarine Cable Protection Project and the replacement of the Station Control Monitoring (SCM) system. Both projects are under development and require regulatory approval from the NSEB. The SCM system update is necessary due to obsolescence and difficulty in sourcing parts, with plans to submit a future capital application.

years and project timing and costs will be primarily driven by asset condition at the time. 1 7.0 SUMMARY 2 3 NSPML will continue to focus on meeting its obligations regarding the operation and 4 maintenance of the Maritme Link in accordan...

AI summary NSPML will focus on maintaining the Maritme Link in accordance with Good Utility Practice. Near-term sustaining capital requirements include the Submarine Cable Protection project (M12285) and a Station Control and Monitoring project. Routine sustaining capital will be reported and approved as needed, with insights provided in annual reporting.

NON-CONFIDENTIAL 1 Response IR-12: 2 3 a) Over the long term, there is a range of capital futures that can be prepared to sustain the 4 Maritime Link for it's 50-year service life. Any assessment prepared today will differ from 5 future pr...

AI summary The response to IR-12 outlines long-term capital investment plans for the Maritime Link, noting that while overland transmission investments will be low, the submarine HVDC cable system will require maintenance, and the HVDC converter and related station assets will be the main focus of future investment. The response emphasizes the uncertainty in long-term cost projections due to evolving technologies like the voltage source converter (VSC).

CONFIDENTIAL (ATTACHMENTS ONLY) 1 Request IR-01: 2 3 Reference: Section 2.1 Asset Management Cost Uncertainties (p.7). 4 (a) For each of the identified uncertainties, please discuss when the 5 uncertainty is anticipated to resolve, and wha...

AI summary The document contains a series of information requests related to asset management cost uncertainties, marine surveys, converter station agreements, and transmission line maintenance costs. It also asks for an assessment of the costs associated with these activities and the reasons for any delays in completing the assessment.

NSPML Responses to Industrial Group Information Requests 1 Request IR-19: 2 3 Reference: Section 7 – Regulated Capital Structure. 4 Please confirm that approval of a revised capital structure of 60% debt (a) 5 and 40% equity in respect of...

AI summary NSPML responds to information requests regarding a revised capital structure and asset management outlook. The response indicates that a 60% debt and 40% equity capital structure would increase NSPML's equity return while reducing debt costs. NSPML also references a prior submission (SBA IR-06) for detailed profit differences and acknowledges the Board's requirement to file a Long-Term Asset Management Plan (LTAMP) by June 30, 2025, as per Matter M11791.

NON-CONFIDENTIAL 1 Request IR-05: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 5 Page 8 6 NSPML states: "NSPML has not completed its assessment for planned transmission line and 7 related inspection and maintenance work into 2027...

AI summary NSPML has not completed assessments for planned transmission line and related inspection and maintenance work into 2027 and beyond, stating that estimating costs beyond 2026 is premature and subject to high uncertainty. The Nova Scotia Energy Board is requesting clarification on the infrastructure involved, the nature of the uncertainties, and the alignment of this work with NSPML's Long-Term Asset Management Plan.

1 Response IR-05: 2 3 a) Confirmed. 4 9 b) NSPML's transmission line maintenance program mainly consists of inspections, execution of vegetation management, and corrective maintenance. The table below provide commentary on the degree of un...

AI summary NSPML's transmission line maintenance program includes inspections, vegetation management, and corrective maintenance. The text mentions a table that provides commentary on the degree of uncertainty related to these activities.

2 c) These activities are part of NSPML's LTAMP. Please refer to NSEB IR-31. 3 4 d) NSPML received the following summary description from NS Power regarding how they 5 conduct their transmission line assessments: 6 The objective of the tra...

AI summary The document outlines NSPML's Long-Term Asset Management Plan (LTAMP) and describes NS Power's transmission inspection program. The program aims to ensure system integrity, regulatory compliance, and public safety through various inspection methods, including foot patrols, drone inspections, and LiDAR surveys. Inspection frequency varies based on line criticality and accessibility.

NSPML Responses to Nova Scotia Energy Board Information Requests 1 Request IR-15: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 5 Page 12 6 NSPML states: "As also noted in the 2025 Assessment, NSPML has adopted a condition 7 based...

AI summary NSPML has conducted a LiDAR survey in 2024 for vegetation management on transmission lines and is analyzing the results to determine near-term vegetation management needs. The survey cost in 2024 is disclosed, with a budget for 2025 analysis and planned future surveys in 2026 and 2028.

4 Year # IGBTs Failed IGBT Annual Failure Rate IGBT Spares Rec'd IGBT Inventory Year End Sustaining Capital IGBT in Assessment $M Sustaining Capital IGBT - Expenditure $M 2018 6 0.11% 74 2019 8 0.15% 74 2020 8 0.15% 74 2021 3 0.06% 74 2022...

AI summary The table provides data on IGBT failures, annual failure rates, spares received, inventory levels, and sustaining capital expenditures related to IGBTs from 2018 to 2026. It includes projections for 2026 and notes that spares are not expected to be received until 2026.

2.1 Transmission Asset Managers - (a) Operation and Maintenance of NL Transmission Assets From and after the completion of Commissioning, Nalcor shall, with respect to the NL Transmission Assets: - (i) develop and maintain a Long Term Asse...

AI summary The text outlines the operational and maintenance responsibilities of Nalcor and Emera for the NL Transmission Assets and Maritime Link, respectively, including the development of Long Term Asset Management Plans, performance of O&M activities, and compliance with applicable laws.

5.3 No Role of JDC-ML For greater certainty, the Parties agree that the joint development committee established pursuant to the ML-JDA will have no role in the approval of the Initial LTAMPs, the Initial LTAMP Cost Estimates, the In-Servic...

AI summary The parties agree that the joint development committee (JDC-ML) established under the ML-JDA will not be involved in the approval of various LTAMP-related documents, including initial and in-service plans and cost estimates.

9.9 Site Visits The Manager will provide to the other Party evidence of liability and automobile insurance in anticipation of any visits to the site of any Transmission Assets managed by the Manager pursuant to this Agreement.

AI summary The Manager is required to provide evidence of liability and automobile insurance to the other Party prior to any site visits to Transmission Assets managed under the Agreement.

REDACTED 1 "Long Term Asset Management Plan" or "LTAMP" means, for each of the Defined Assets, 2 a plan describing and quantifying the O&M Activities, in the case of the Transmission Assets, 3 or the MFP Operating and Maintenance Activitie...

AI summary The Nova Scotia Energy Board (NSEB) is requesting clarification on how Attachment 2 meets the definition of the Long Term Asset Management Plan (LTAMP) and the costs incurred by NSPML in preparing the LTAMP from 2021 to 2026. NSPML responds that the Asset Management Outlook is a subset of the Company's asset management plans, created for regulatory purposes while balancing disclosure and commercial negotiations.

- "Debt Rating Initiations: Natural Evolution or Opportunistic Behavior?" 2013. Co-authored with Laurence Booth, University of Toronto, and Lynnette Purda, Queen's University. Journal of Modern Accounting and Auditing, Vol. 9 (No. 12), 157...

AI summary The text lists several academic publications focusing on financial management, investment strategies, and capital markets. These works explore topics such as debt rating initiations, institutional investment horizons, and the cost of equity capital, authored by various researchers including Laurence Booth and others.

Assessment decision: [31] NSPML's LTAMP aims to identify and document appropriate asset management strategies and techniques to adequately maintain NSPML's assets over the long-term. The LTAMP is specifically defined in the "Nalcor Energy...

AI summary NSPML's Long Term Asset Management Plan (LTAMP) is defined in the 'Nalcor Energy and Emera Inc. Amended and Restated Joint Operations Agreement' and outlines O&M activities for the Defined Assets, including Transmission Assets and MFP. The LTAMP must be developed and maintained by Emera for the Maritime Link's service life, starting from August 15, 2021.

specifically direct single year assessments. The completion of the LTAMP is important to the Board's oversight role and the certainty needed to proceed with multi-year assessments. [2024 NSUARB 199] - [29] Despite the NSUARB's direction fo...

AI summary The NSUARB directed NSPML to file its LTAMP by June 30, 2025, but it instead filed a 10-year Asset Management Outlook. NSPML claims there are two meanings of LTAMP: one as a confidential commercial process under the Joint Operating Agreement with NLH, and another as a regulatory filing required by the NSUARB.

Request IR-5: - Page 8 - NSPML states: "NSPML has not completed its assessment for planned transmission line and - related inspection and maintenance work into 2027 and beyond following recent years' activities. - This work will be complet...

AI summary NSPML has not completed its assessment for planned transmission line and related inspection and maintenance work into 2027 and beyond. The assessment is expected to be completed by 2026, but estimating costs beyond 2026 is premature and uncertain. Questions are raised about the uncertainty, the LTAMP, and the assessment process.

Request IR-15: - Page 12 - NSPML states: "As also noted in the 2025 Assessment, NSPML has adopted a condition-based - approach to vegetation management for transmission lines. NSPML's current practice is using - LiDAR technology to measure...

AI summary NSPML is conducting LiDAR surveys for vegetation management on transmission lines, with analysis ongoing and expected to be completed in 2025. The request seeks details on the costs of the 2024 survey, projected costs for 2025, and the frequency of future LiDAR surveys.

1 2025 M12394 2 NOVA SCOTIA ENERGY BOARD 3 IN THE MATTER OF: The Public Utilities Act , and the Maritime Link Act , and the 4 Maritime Link Cost Recovery Process Regulations 5 IN THE MATTER OF: An Application by NSP Maritime Link Incorpora...

AI summary The Nova Scotia Energy Board has issued information requests to NSP Maritime Link Incorporated regarding asset management cost uncertainties, the marine survey RFP, contractual terms with Hitachi for converter stations, and annual payments under the contract since the Maritime Link has been in service.

1 (e) Regarding the transmission line and related inspection and maintenance 2 work, please outline the steps to complete the "assessment" in order to 3 estimate the cost this work. 4 (f) If it is "premature and subject to high uncertainty...

AI summary The document contains a series of requests for information related to transmission line inspection and maintenance costs, the impact of testing and alignment on future assessments, material contracts affected by uncertain tariffs, and the pros and cons of single-year versus multi-year assessments. Specific requests include quantifying uncertainty risks and providing detailed O&M cost breakdowns.

but interrelated, commercial negotiation process as described in the response to NSEB IR-06(a) - a process that will be brought in full before the Nova Scotia Energy Board for review upon completion. In referencing LTAMP in its prior asses...

AI summary NSPML clarifies that its 'Outlook' document differs from its LTAMP and was prepared to support the Board's determination while avoiding harm to ongoing commercial negotiations with Nalcor. It also acknowledges confusion in using similar technology terms and references NS Power's long-term planning documents.

specifically direct single year assessments. The completion of the LTAMP is important to the Board's oversight role and the certainty needed to proceed with multi-year assessments. [2024 NSUARB 199] - [29] Despite the NSUARB's direction fo...

AI summary The NSUARB directed NSPML to file its LTAMP by June 30, 2025, but NSPML instead submitted a 10-year Asset Management Outlook. NSPML claims there are two meanings of LTAMP: one as a confidential commercial process between NSPML and NLH, and another as a regulatory filing required by the NSUARB.