Topic:"Asset Retirement Obligation" in M12394

has determined that, due to certain cost projection uncertainties, it is appropriate to apply for a single-year assessment for 2026. Further information on this item is contained in Section 2.0 below. • Collection of Marine Survey Costs: I...

AI summary The document discusses NSPML's 2026 single-year assessment application, including the collection of marine survey costs and the submission of an asset management plan. The Board requested how the 2027 marine survey costs should be collected, and NSPML plans to recover these costs in 2027. The asset management plan includes a 10-year outlook with near-term expenditures such as a cable protection project and HVDC station upgrades.

2.1 Asset Management Cost Uncertainties There are several cost uncertainties that are not practical to manage or mitigate to the benefit of customers several years into the future. These uncertainties and the associated operational conside...

AI summary NSPML faces uncertainties in long-term operational and maintenance costs due to factors like unpredictable vessel availability for marine surveys and ongoing contract negotiations for converter stations. These uncertainties complicate accurate cost estimation for future projects.

20 Vegetation Management 21 22 As anticipated in the 2025 Assessment Application, a larger scope of vegetation 23 management activities is forecasted to be required in 2026 as compared to 2025, 24 increasing the cost in 2026 by approximate...

AI summary The 2025 Assessment Application forecasts an increase in vegetation management costs for 2026 by approximately $0.5 million. NSPML is using LiDAR7F technology for condition-based vegetation management, following an Integrated Vegetation Management approach widely used in the industry.

6.2 ROE Analysis and Asset Complexity - Not a Traditional Transmission Asset Factors which differentiate NSPML's risks from those of the average T&D company, are discussed below including management and maintenance of NSPML's highly comple...

AI summary This section discusses the unique risks associated with NSPML, emphasizing its complex asset management, complex agreements, and current capital structure, which differentiate it from typical transmission and distribution companies.

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.

NON-CONFIDENTIAL 1 f) As explained above, the complexity and risk associated with the Formal Agreements 2 managed by NSPML is in many ways different from the complexity and risk associated 3 with designing, constructing and operating an as...

AI summary The text discusses the complexity and risk associated with the Formal Agreements managed by NSPML, noting that while NSPML has successfully delivered the Maritime Link Project on time and on budget, this does not mitigate the remaining risks under commercial agreements or the operational risks of managing more complex assets compared to traditional T&D assets.

rvice Life; provided however that, for greater certainty, where the service life of a replacement for a major component of a Defined Asset extends beyond the Initial Service Life of the Defined Asset: - (a) if the replacement component is...

AI summary This section defines key terms related to the agreement, including 'Defined Assets,' 'Dispute,' 'Dispute Resolution Procedure,' and 'Emera Affiliate Assignee.' It outlines conditions under which a replacement component's life cycle cost is considered a Defined Asset Life Extension Cost.

1](#page-101-2) ; " Initial LTAMP Cost Estimate " means the estimated cost by year of the O&M Activities contemplated by the Initial LTAMP of each Defined Asset; " Initial Service Life " means: - (a) in respect of the Maritime Link, the Se...

AI summary The text defines key terms related to the Long-Term Asset Management Plan (LTAMP), including Initial LTAMP Cost Estimate, Initial Service Life, In-Service Date, In-Service LTAMP, and Insolvency Event, providing context on asset management and operational definitions within regulatory frameworks.

an O&M Contract with a Manager; " O&M Information " has the meaning set forth in Section [3.3(d)](#page-93-0) ; " O&M Owned IP " means the Emera Foreground IP and the Nalcor Foreground IP; " O&M Standards " means the policies, procedures,...

AI summary The text defines key terms related to operations and maintenance (O&M) in the context of a transmission asset agreement, including O&M Information, O&M Owned IP, O&M Standards, Operating and Maintenance Costs, and Operating Year. These definitions are crucial for understanding the responsibilities and obligations under the agreement.

5.1 Initial LTAMP and LTAMP Cost Estimates - (a) Nalcor Initial LTAMPs By September 30, 2014, Nalcor shall prepare and submit to Emera a preliminary Long-Term Asset Management Plan (" Initial LTAMP ") for each of the Muskrat Falls Plant an...

AI summary The text outlines the requirements for preparing and submitting Initial Long-Term Asset Management Plans (LTAMPs) and their corresponding cost estimates by Nalcor and Emera, including review timelines and submission deadlines.

- (iv) advise Nalcor of any special circumstances which might limit or prohibit cancellation of any O&M Contract. - (d) Obligations at End of Term Immediately upon the expiration or other termination of the Term, Emera shall, as an obligat...

AI summary The section outlines Emera's obligations upon the expiration or termination of the agreement, including the transfer of ML Data, operation and maintenance manuals, materials, and equipment to Nalcor, removal of Emera's employees and contractors, and surrender of possession and control of the Maritime Link to Nalcor.

12.3 Own Property Damage For the avoidance of doubt, it is the Parties' intent that, subject to any right a Party may have to seek compensation from a third party who caused the Loss or from insurance, each Party shall be responsible for a...

AI summary The Parties agree that each is responsible for Losses to its own property, including facilities, equipment, and materials on the site of Defined Assets, regardless of the cause, including O&M Activities or the actions of the other Party or its affiliates. This applies unless compensation from a third party or insurance is available.

REDACTED 1 Request IR-31: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 5 Page 28 6 NSPML states: "In the 2025 Assessment Decision, the Board directed NSPML to file its Asset 7 Management Plan as part of its 2026 Assessment Applica...

AI summary The Nova Scotia Energy Board is questioning NSPML about its submission of an Asset Management Outlook, asking whether it constitutes the required Long-Term Asset Management Plan (LTAMP) and why it was not filed earlier. The Board also inquires about the naming difference and the focus on a 10-year outlook rather than the full 35-year term of the Maritime Link.

7.5 Overall assessment of business risk - 251. In this section of the decision, the Commission considers whether business risk factors impacting all the utilities, or a particular segment of the utilities, require the Commission to adjust...

AI summary The Commission evaluates business risk factors affecting utilities, including cybersecurity, decarbonization policies, and macroeconomic factors, and considers whether these justify adjusting deemed equity ratios. Utilities argue for higher equity ratios due to increased risks, while interveners suggest maintaining or reducing them. Stranded asset risks and a recent court decision are also discussed.

7.5.3 Utility asset disposition risk and the impact of the Court of Appeal decision in ATCO Electric Ltd. v Alberta Utilities Commission , 2023 ABCA 129 - 260. In a letter dated June 6, 2023, 250 the Commission requested that parties provi...

AI summary The Commission requested submissions on the impact of the Wildfires Decision on stranded asset recovery risks. Most parties argued it was premature to assess the impact, as the decision was sent back for reconsideration. The CCA noted the decision may reduce business risk by increasing the likelihood of cost recovery from customers due to weather events. The Commission also stated that UAD-related risk has not significantly changed since the 2018 GCOC decision.

4.0 LONG-TERM ASSET MANAGEMENT PLAN (LTAMP) [23] The background of the LTAMP was discussed in the NSUARB's 2025 Cost

AI summary The document introduces the Long-Term Asset Management Plan (LTAMP) and references the NSUARB's 2025 Cost report as background. It sets the stage for discussions on asset management strategies.

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.

asset, the Industrial Group referred to recent evidence from Cable Consulting International in Board proceedings relating to NSPML's operation and maintenance of the Maritime Link. It then submitted: So what we know from here is that NSPML...

AI summary The Industrial Group submitted that NSPML is maintaining the Maritime Link cable effectively, minimizing risks through good operational practices. It also recommended a return on equity for NSPML between 8% and 8.5% and referenced a 2013 NSUARB decision regarding flexibility in capital structure.

Request IR-25: - Page 22 - NSPML states: "The converter technology housed inside the converter stations at both ends of - the interconnection in Nova Scotia and Newfoundland includes thousands of components, - including multiple layers of...

AI summary NSPML outlines the unique risks and spares requirements associated with converter stations in the Maritime Link project, emphasizing their complexity compared to traditional HVAC transmission assets. The request asks NSPML to detail these risks, explain their differences from HVAC systems, and confirm if increased O&M costs and sustaining capital projections account for these factors.

Request IR-31: - Page 28 - NSPML states: "In the 2025 Assessment Decision, the Board directed NSPML to file its Asset - Management Plan as part of its 2026 Assessment Application. Please see partially confidential - Attachment 2 for NSPML'...

AI summary The document outlines a regulatory inquiry (Request IR-31) regarding NSPML's submission of its Long-Term Asset Management Plan (LTAMP) as part of its 2026 Assessment Application. It questions whether the submitted 10-year Asset Management Outlook meets the definition of an LTAMP, the timeline for its preparation, and the costs incurred in its development.

- 3 Management Outlook. - 4 Preamble: NSPML has acknowledged the Board's direction to file its Asset - 5 Management Plan ("LTAMP") as part of the 2026 Assessment Application and has filed a - 6 "10-year Asset Management Outlook" for inform...

AI summary NSPML is asked to confirm its understanding of the Board's requirement to file the LTAMP by June 30, 2025, and whether the '10-Year Asset Management Outlook' is the LTAMP. It is also asked if the document has been signed off by NLH and to provide an update on the status of the LTAMP.

4.0 LONG-TERM ASSET MANAGEMENT PLAN (LTAMP) [23] The background of the LTAMP was discussed in the NSUARB's 2025 Cost

AI summary This section introduces the Long-Term Asset Management Plan (LTAMP) and references the NSUARB's 2025 Cost document as background context for the plan.

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) aims to document strategies for maintaining assets over the long-term, as defined in the Nalcor Energy and Emera Inc. Amended and Restated Joint Operations Agreement. The plan includes details on operations and maintenance activities and their expected annual costs.

debit between the parties, which may ultimately affect ratepayers. Mr. Dimmell further noted that the inservice LTAMP is an ongoing commercial process between NSPML and NLH that remains confidential. [31] NSPML's other meaning of LTAMP, ac...

AI summary The document discusses NSPML's interpretation of the LTAMP, distinguishing between its internal asset management planning system and the confidential commercial in-service LTAMP. NSPML argues that filing the in-service LTAMP would compromise the confidentiality of ongoing negotiations and potentially waive privilege.

asset, the Industrial Group referred to recent evidence from Cable Consulting International in Board proceedings relating to NSPML's operation and maintenance of the Maritime Link. It then submitted: So what we know from here is that NSPML...

AI summary The Industrial Group submitted that NSPML's maintenance practices effectively mitigate risks to the Maritime Link cable, even though it is a single asset. It also recommended a return on equity range of 8% to 8.5% for NSPML, citing no evidence of increased risk, and referenced a 2013 NSUARB decision regarding flexibility in capital structure.