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Topic/Matter Intersection

Topic:"Asset Management" in M12665

Matter: Nova Scotia Power Inc. - Fuel Adjustment Mechanism (FAM) Audit, conducted by Bates White for 2024 and 2025
10 passages 2 documents

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N-42022-2023 FAM Audit Action Plan Update Attachment 1 - Redacted 1 passage
Row Recommendation
REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 7 of 18 Row Recommendation Action Plan Response from NS Power July 2026 Update Biomass Inventory Processes recommendation and targets to complete its investigation and ident...

AI summary The document discusses NS Power's action plan to improve biomass inventory processes, including expanding the woodyard to accommodate additional fuel piles and mitigate risks of material co-mingling, with a focus on improvements from Q4 2024 through Q4 2025.

N-52024-2025​ Bates White FAM Audit Report - Redacted 9 passages
Preamble
NSPI also aims to control inventories of adder fuels—i.e., inferior fuels unable to support plant loading requirements but used in blending to provide economic benefits—entering the winter months so as to not constrain coal pile building a...

AI summary NSPI aims to manage adder fuel inventories during winter to avoid constraining coal pile building and year-end targets. Inventory levels are monitored with guardrails, and corrective actions are required if levels exceed 13 weeks or drop below 4 weeks of consumption.

Audit Period Results
Audit Period Results NSPI's actual inventories are provided in the following set of figures. Figure V-3 and Figure V-4 show solid fuel inventory, by month, at the two NSPI circuits for 2024. Figure V-5 provides NSPI's 243 NSPI Fuel Manual...

AI summary NSPI's solid fuel inventory levels in 2024 and 2025 were generally stable and within historical ranges, with no excess inventory identified. In 2025, two coal shipments were deferred due to compliance requirements, not inventory levels. Inventory levels at Point Tupper and Sydney circuits met or exceeded winter readiness targets in both years.

VI.B.1.e. Fourth Quarter 2024
equal to NSPI's updated 2025 forecast need. The primary biomass fuel was not needed, and would result in an overprocured position of GMT relative to NSPI's updated primary biomass fuel needs in 2025. In addition to the supply surplus, NSPI...

AI summary NSPI is facing a surplus of biomass fuel and inventory storage limitations at the PHB facility, which is partly owned by PHP. NSPI is working with PHP to optimize space and has modeled incremental inventory management costs due to bark storage risks. The FST approved a biomass transaction in December 2024, with contract terms aligned with the ROA.

Figure X-7: Percentage of Hours NSPI's Thermal Units Operated at Economic Minimum (or Lower) During Audit Period 398
Figure X-7: Percentage of Hours NSPI's Thermal Units Operated at Economic Minimum (or Lower) During Audit Period 398 Thermal Plant Economic Minimum (MW) % of Hours Operating at Eco Min or Below Lingan 1 60 37.3% Lingan 2 60 82.3% Ligan 3 6...

AI summary The data in Figure X-7 shows that NSPI's thermal generators operated below economic minimum levels for a significant portion of the audit period. The text discusses the implications of this, noting that NSPI continues to generate less energy due to the rise of wind generation in Nova Scotia. NSPI maintains various operating reserves to ensure reliability, and surplus reserves were observed during the audit period, except for a period affected by a cyber event.

X.B.3.b.vi. Root Cause Analysis Review
SPI elected to perform a 100% eddy-current (electromagnetic) inspection to determine the extent of degradation and mitigate future risk. This led to the plugging of approximately 500 additional tubes. The investigation found that all conde...

AI summary SPI conducted a 100% eddy-current inspection of condenser tubes at Tufts Cove 3, identifying internal leaks caused by seawater-side erosion-corrosion. NSPI's maintenance program was found to be effective, but the Root Cause Analysis recommended significant refurbishment due to extensive degradation. NSPI plans to address this through its ACE plan with capital investments in 2026 and retubing in 2027.

Maintenance and Condition Review
Maintenance and Condition Review No indications from the PDM or PDP programs prior to the failure date were observed. Vibrations and temperatures were normal on both motors prior to the failure. Compliance with PMs associated with the CW m...

AI summary The maintenance and condition review discusses the failure of the West CW motor due to moisture management issues and non-functional cabinet heaters, leading to a 38-day forced outage. The East CW motor was in better condition after refurbishment. NSPI recommends calculating the FAM costs of the outage. A second Root Cause Analysis addressed air ingress into heat exchangers, which was repaired and has not recurred.

X.B.3.h.ii. Root Cause Analysis Review
X.B.3.h.ii. Root Cause Analysis Review We were provided and reviewed one Root Cause Analysis related to PHB. The Root Cause Analysis, published December 3, 2025, addressed an event on May 31, 2024, when the PHB unit was forced offline due...

AI summary A root cause analysis was conducted following an event where a critical spare part, the Low-Pressure Steam Extraction Control Valve Rod, broke at the PHB unit, causing an 18-day forced outage. NSPI was unable to locate the spare Rod in inventory, leading to temporary repairs and procurement delays. NSPI has since implemented inventory control improvements, but has not yet calculated the FAM costs of the event.

X.B.6. Power Plant Visits
X.B.6. Power Plant Visits The FAM POA requires the fuel auditor to "[c]onduct on-site inspection for fuel handling, quality control, inventory management and performance monitoring." In May 2026, we completed the following in-person site v...

AI summary The FAM POA requires on-site inspections of fuel handling and inventory management. In May 2026, site visits were conducted at several Nova Scotia Power facilities, including biomass and coal plants, as well as inventory locations. These visits included interviews and facility tours.

X.C. Conclusions
ere derated decreased 19 percent from the prior audit period, though the size of the average derate increased by 8 MW (or 11.8%), as did the average duration of the derates (by 59 hours, or by 88.2%). Conclusion X-8: Heat rate performance...

AI summary The audit period saw a 19% decrease in derated capacity, with increased average derate size and duration. NSPI's heat rate performance improved in 2025, with five coal-fired units exceeding industry averages. Utilization factors were higher than forecast, indicating potential increases in capital and O&M costs. NSPI's asset management and outage planning remain effective.

Disclaimer: These summaries were generated by AI from the filings they describe. We take care to make them accurate, but errors are possible - and they aren't advice. Only the filings themselves are the record: if you're relying on something here, confirm it against the source documents or the Nova Scotia Energy Board's own record. Full disclaimer →