Topic:"Best Interests Of Customers" in M06733

7 Navigant, 2014 IRP, Nova Scotia 2015 ‐ 2040 Demand Side Management (DSM) Potential Study , Presented to Efficiency Nova Scotia Corporation, NSUARB M05522/P-884.14, January 7, 2014. 1 period, customer impacts can be mitigated by implement...

AI summary NS Power is seeking approval for a Supply Agreement for the provision of Energy Efficiency Conservation Agreements (EECAs) and emphasizes the need for transparency and accountability from E1, now a regulated public utility, in justifying its DSM Plan. The Act requires that the Board ensure the agreement is in the best interests of customers.

NON-CONFIDENTIAL The Company's recommendations for autonomy and flexibility are listed under transparency and accountability and specifically state: 2.1 Transparency and Accountability The new franchise system created under the Act for the...

AI summary The document outlines the need for transparency and accountability in E1's proposed DSM Plan, emphasizing that E1, now a regulated public utility, must demonstrate the prudency of its expenditures, particularly given the proposed spending of $121.5 million from NS Power customers. The Board must ensure that the agreement is in the best interests of customers and is affordable.

1 1.0 OVERVIEW 2 3 Nova Scotia Power Inc. (NS Power or Company) is required under the Public Utilities 4 Act (Act) to enter into a supply agreement with EfficiencyOne (E1) for the supply of 5 cost-effective and affordable demand side manag...

AI summary Nova Scotia Power Inc. (NS Power) is required to enter into a supply agreement with EfficiencyOne (E1) for demand side management (DSM) from 2016 to 2018. E1 applied for approval of its DSM Resource Plan, proposing 405.9 GWh of energy savings over three years at a cost of $121.5 million. The Act mandates that the DSM plan must be affordable and in the best interests of NS Power's customers.

24 In the face of these challenges to affordability, NS Power has, amongst other things, 25 significantly reduced its workforce and its capital expenditure program. These efforts 26 have been very challenging for NS Power and for those Nov...

AI summary The text discusses the financial challenges faced by NS Power due to aggressive policies such as renewable energy standards, demand-side management, and emission reductions, which have increased costs for ratepayers. Efforts to control costs, including workforce reductions and capital expenditure cuts, have been made with the goal of maintaining affordability for Nova Scotians.

DATE FILED: July 8, 2015 Page 8 of 50 1 3.0 LEGISLATIVE REQUIREMENTS 2 3 Unlike the Company's environmental and renewable generation requirements, the 4 expenditure level of DSM has not been legislatively mandated. There is nothing in the...

AI summary The document discusses the legislative requirements for Demand Side Management (DSM) in Nova Scotia, noting that DSM expenditure levels are not mandated by law. It outlines the responsibilities of EfficiencyOne (E1) and Nova Scotia Power Inc. (NS Power) under the Public Utilities Act, emphasizing the need for DSM programs to be affordable and in the best interests of customers.

33 Power's customers. Subsection 79L(6) states: DATE FILED: July 8, 2015 Page 9 of 50 Q _ (6) Notwithstanding subsection (5), in the application, the franchise holder is primarily responsible to provide information and evidence to the Boar...

AI summary The document discusses the lack of sufficient evidence provided by E1 to justify the affordability of its DSM programs. E1 did not present a lower-cost plan or alternative options to the Board, despite requests from NS Power. E1's preliminary scenario was not introduced as evidence and thus could not be used to assess affordability.

Exhibit E-60, Best Practices in Electric Utility Integrated Resource Planning Examples of State Regulations and Recent Utility Plans (Synapse), filed by NS Power, June 15, 2015. 1 examination from the Board that industry capacity was one o...

AI summary NS Power argues that the impact of DSM infrastructure on industry capacity should not be considered when determining DSM spending levels, citing the Public Utilities Act's focus on customer affordability and best interests. NS Power's expert testified that DSM capacity should fluctuate based on demand, similar to generation capacity.

22. E1's reliance on past practices, however, fails to account for the legislative changes to the DSM system in Nova Scotia. First, the Act now creates a new franchise system and deems the franchise holder to be a public utility for the pu...

AI summary E1's reliance on past practices is criticized for not accounting for legislative changes to the DSM system in Nova Scotia, which now require the Board to ensure affordability and customer interests. NS Power argues that E1 is unwilling to consider lower annual expenditure amounts, potentially increasing DSM costs in the future.

25 AFFORDABILITY 26 27 Section 79L of the Public Utilities Act deals with the Board's requirement for approval of 28 agreements. Significant amongst these requirements, as it relates to this Application, are ss 79L 29 (8) and (9): 48 Trans...

AI summary Section 79L of the Public Utilities Act requires the Board to consider the best interests of customers and affordability when approving agreements, particularly those involving electricity efficiency and conservation activities. EfficiencyOne argues that these considerations have been central to previous approvals and are not new requirements.