Topic:"Audit Processes" in M12665

REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 1 of 18 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Row Recommendation Action Plan Response from NS Power February 2026 Update processes in place pre-codification were devel...

AI summary NS Power responded to an audit recommendation by improving processes related to energy balance calculations. They engaged senior engineering staff and external consultants to itemize processes and create a stepwise approach, without altering the underlying science or math.

PO Box 910 Halifax, Nova Scotia Canada B3J 2W5 March 27, 2026 REDACTED Ms. Crystal Henwood Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3rd Floor P.O. Box 1692, Unit "M" Halifax, NS B3J 3S3...

AI summary Bates White Economic Consulting recommended that Nova Scotia Power Incorporated (NS Power) update the Nova Scotia Utility and Review Board on progress with Nalcor regarding undelivered NS Block quantities and makeup energy valuation. NS Power accepted the recommendation and committed to quarterly updates starting Q1 2023.

n recordkeeping. While these systems themselves required some degree of manual data entry, the loss of those systems meant the loss of one additional source of potential quality control and assurance. Conclusion II-12: In this Audit Period...

AI summary The audit period saw no violations of NSPI's risk management policies. Internal audits were conducted, and while one audit was limited due to a cyber event, it was deemed acceptable. It is recommended that the audit be completed when data access is restored.

re caused by testing and commissioning activities on the Labrador Island Link.655 The Acceleration Agreement further stated that the first contract year of the EAA would begin on September 1, 2022.656 In the 2020-2021 audit period, portion...

AI summary The text discusses the background of transactions over the Maritime Link, including the Acceleration Agreement and its impact on the NS Block and Surplus Energy. It references audit reports and the Board's review of cost recovery applications and the prudence of the Acceleration Agreement.

XIII.B.1.c. Compliance with Quarterly Rebalancing Provisions of Fuel Hedging Plan The Fuel Hedging Plan calls on NSPI to actively update and manage its hedge portfolio throughout the hedging plan. Specifically, the Fuel Hedging Plan states...

AI summary The Fuel Hedging Plan requires NSPI to perform quarterly rebalancing of its hedge portfolio, using updated fuel consumption forecasts from Plexos. NSPI conducted quarterly rebalancing in all eight quarters during the Audit Period, with an interim rebalance in Q1 2025 due to changes in fuel mix expectations. The impact of energy flows from NLH on hedging activities is highlighted as a major theme from the prior audit period.

- The Nova Scotia Energy Board (NSEB, Board) approved Nova Scotia Power Incorporated's (NS - Power, Company) Fuel Adjustment Mechanism (FAM) effective January 1, 2009. The FAM - ensures power rates reflect the actual cost of fuel. This mea...

AI summary The Nova Scotia Energy Board (NSEB) approved the Fuel Adjustment Mechanism (FAM) in 2009 to ensure customers pay actual fuel costs. The FAM is audited every two years by an independent firm, such as Bates White, to assess the accuracy of fuel cost recovery and compliance with utility practices.

3. CONCLUSION - Bates White has conducted audits of NS Power's Fuel Adjustment Mechanism (FAM) and fuel - procurement practices on behalf of the Nova Scotia regulator across four consecutive audit cycles. - NS Power appreciates Bates White...

AI summary NS Power has engaged Bates White to audit its Fuel Adjustment Mechanism (FAM) and fuel procurement practices over four audit cycles. NS Power appreciates the audit's role in promoting transparency and public confidence. The company has accepted most recommendations and is implementing process improvements. NS Power requests the Board's approval of its FAM Audit Action Plan outlined in Appendix A.

REDACTED FAM 2024-2025 Audit Reply Evidence Appendix A Page 1 of 16 Row Recommendation NS Power Position/Response Status 17 Chapter VII - Natural Gas Supply Planning Recommendation VII-1: NSPI should conduct the analysis described in Recom...

AI summary NS Power accepts audit recommendations related to natural gas supply planning and re-analyzing Freepoint FT capacity offers. They plan to address these in future reports and engage with Bates White for further analysis. NS Power argues against allowing existing FT capacity to expire, suggesting instead an extension at a discount.

REDACTED FAM 2024-2025 Audit Reply Evidence Appendix A Page 10 of 16 Chapter XI - Commitment and Dispatch the need for robust analysis, review, and governance. Attempting to materially compress the hedge rebalancing process timeline could...

AI summary The document provides responses to audit recommendations related to NS Power's financial processes, including hedge rebalancing timelines, detailed invoice listings for audit trails, and reporting practices for the ELIADC (PHP Tariff). NS Power has accepted all recommendations and considers them complete.

REDACTED FAM 2024-2025 Audit Reply Evidence Appendix A Page 15 of 16 40 Recommendation XV-7: The NSPSO or successor SO should be required to identify and record PHP real-time deviations from schedule, and the reason for each deviation usin...

AI summary NS Power agrees with the objective of recording real-time deviations from schedule by PHP but argues that the System Operator is not the appropriate entity to perform this function. PHP is the source of operational information, and requiring the System Operator to independently determine deviation causes would create an unnecessary administrative layer without improving record quality.