N-52024-2025 Bates White FAM Audit Report - Redacted
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Figure VI-2: NSPI's Biomass Consumption, Net System Requirement vs. Prior Audit Periods (GMT, MWh)258 Audit Period Biomass Consumption (MT) Net System Requirement (MWh) Biomass Consumed per MWh 2018-2019 2020-2021 2022-2023 2024-2025 Figur...
AI summary The text presents a table and reference to figures showing NSPI's biomass consumption and net system requirements across audit periods, noting changes in fuel heat content and moisture levels in 2023 that impacted 2024 and 2025 data.
Figure VI-3: Annual Biomass Consumption, Green Metric Tonnes and MMBtu (2018-2025)259 Year Actual (tonnes) Actual (MMBtu) MMBtu/Tonne 2018 2019 2020 2021 2022 2023 2024 2025 VI.B.3. Biomass Fuel Sources and Types
AI summary The document includes a figure showing annual biomass consumption from 2018 to 2025, measured in green metric tonnes and MMBtu, along with a section discussing biomass fuel sources and types.
VI.B.5. NSPI's Biomass Fuel Procurement Process Assessment NSPI's biomass fuel procurement processes are contained in NSPI's Fuel Manual. The Fuel Manual calls for use of multiple procurement strategies, including 262 and since " '"263 The...
AI summary NSPI's biomass fuel procurement processes are outlined in the Fuel Manual, which details competitive evaluation criteria such as commodity cost, transportation, and fuel quality. The manual also allows for the procurement of alternative biomass sources.
VI.B.6. NSPI's Suppliers of Biomass Fuel During the Audit Period, NSPI contracted with suppliers of biomass fuel. These included sawmills, plus Some supply agreements effective during the Audit Period were executed in 2023, with others exe...
AI summary NSPI contracted with biomass fuel suppliers during the Audit Period, including sawmills, with agreements executed in 2023, 2024, and 2025. Contracts included volume requirements, fuel categories, prices, payment terms, quality standards, and supplier certifications. Figure VI-6 summarizes the suppliers of solid fuel.
VI.B.1.d. Third Quarter 2024 NSPI entered into no new contracts for biomass supply in the third quarter of 2024.
AI summary NSPI did not enter into any new contracts for biomass supply during the third quarter of 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.
VI.B.1.f. First Quarter 2025 NSPI entered into no new contracts for biomass supply in the first quarter of 2025.
AI summary In the first quarter of 2025, NSPI did not enter into any new contracts for biomass supply.
VI.B.1.g. Second Quarter 2025 NSPI entered into one new contract for biomass supply in the second quarter of 2025. This is shown in Figure VI-10.
AI summary In the second quarter of 2025, NSPI entered into a new biomass supply contract, as depicted in Figure VI-10.
Figure VI-10: NSPI new biomass supply contracts (Q2 2025) Supplier Product Quantity (GMT) Term Primary Fuel Log Chips Primary Forest Fuel Chips Secondary Forest Biomass (Bark) In the second quarter of 2025, NSPI reported its new biomass fu...
AI summary NSPI reported a new biomass fuel supply agreement effective January 1, 2026, through December 31, 2026. However, the execution date of January 1, 2026, conflicts with the timing of its reporting in a quarterly FAM report. A recommendation is made for NSPI to include execution dates for all contracts.
VI.B.1.h. Third Quarter 2025 NSPI entered into no new contracts for biomass supply in the third quarter of 2025.
AI summary In the third quarter of 2025, NSPI did not enter into any new contracts for biomass supply.
VI.B.1.i. Fourth Quarter 2025 278 " Biomass Supply Agreement." 279 " Biomass Supply Agreement." 280 " Biomass Supply Agreement."
AI summary The text mentions the 'Biomass Supply Agreement' three times, likely referring to a contractual agreement related to biomass supply, possibly in the context of energy generation or resource procurement.
ludes a revised storage configuration that uses smaller and lower height biomass fuel storage piles, rather than fewer larger piles, in order to improve ventilation and reduce compaction in the piles. Revisions to, Extension of Shared Serv...
AI summary The document discusses revisions to the storage configuration of biomass fuel piles to improve ventilation and reduce compaction. It also outlines the Shared Services Agreement between NSPI and PHP, including the energy balance process for allocating fuel consumption between the two entities.
VI.B.1.j. Contract Quantities NSPI received biomass fuel from entities during the Audit Period: The tables below show, for each supplier, the total contracted minimum volume, total received volume, and the resulting overage or underage for...
AI summary NSPI received biomass fuel from various entities during the Audit Period, with tables detailing contracted minimum volumes, received volumes, and overage or underage for each biomass product. References to the NSPI Fuel Manual and related agreements are provided for context.
Figure VI-12: 2024 Biomass Volumes Received from Suppliers vs. Contractual Volumes Counterparty Product Contractual Volume (GMT) Actual Volume (GMT) Overage or Underage (GMT) Bark Bark Forest Chips Fuel-Logs Bark Sawmill Chips Forest Chips...
AI summary In 2024, NSPI received an excess volume of bark from a supplier, exceeding the limit set in a prior supply agreement. NSPI internally reviewed the issue, notified the supplier, and agreed to pay the same pre-existing rate for the excess volume. The overage was considered economically beneficial and helped minimize overall bark underdeliveries for the year.
Figure VI-13 shows this data for 2025. Sawmill Chips Forest Chips Bark Forest Chips Fuel-Log Chips Bark Sawmill Chips Counterparty Product Contractual Volume (GMT) Actual Volume (GMT) Overage or Underage (GMT) Bark Bark Forest Chips Fuel-L...
AI summary In 2025, biomass supply was affected by wildfires, U.S. tariffs on lumber, and a heavy equipment incident at PHB. These factors led to reduced biomass deliveries and operational challenges for NSPI.
milar to those specifically enumerated above."306 Figure VI-14 shows the total amount of primary biomass fuel (chips) and secondary biomass fuel (bark) delivered to the biomass unit on NSPI's behalf. 305 " - 20231231 First Amending ag...
AI summary The text references a First Amending Agreement dated 20231231, specifically sections 4 and 14, and mentions Figure VI-14, which illustrates the delivery of primary and secondary biomass fuel to NSPI's biomass unit.
Figure VI-14: NSPI's 2024, 2025 Primary and Secondary Biomass Fuel Deliveries (Metric Tonnes) Month Primary (MT) Secondary (MT) January-24 February-24 March-24 April-24 May-24 June-24 July-24 August-24 September-24 October-24 November-24 D...
AI summary The text discusses a table showing NSPI's planned biomass fuel deliveries for 2024 and 2025, with no discrepancies found between invoice prices and contract prices upon sampling.
VI.B.12.a. Contract Quality The quality of biomass fuel is specified in each supplier contract, typically containing targets and limits on the size, lack of contamination (i.e., free of rock, plastic, etc.), and the type of wood (natural,...
AI summary The document discusses the quality specifications for biomass fuel in supplier contracts, emphasizing moisture content as the primary metric. NSPI has clauses allowing cost recovery for non-compliance but did not take action during the audit period due to occasional, seasonal moisture content increases.
VI.B.12.b. Bates White's Contract Samples To test the contractual compliance of NSPI's solid fuel suppliers, we sampled 27 biomass deliveries across the Audit Period. We reviewed quality results for these deliveries. Specifically, we exami...
AI summary Bates White sampled 27 biomass deliveries from NSPI's solid fuel suppliers to assess contractual compliance. The analysis focused on moisture content, with three samples slightly exceeding the moisture target by less than one percentage point.
513 NSPI, "Port Hawkesbury Biomass Plant 2024-2025 Biomass Performance Testing Results," September 26, 2025, slides 4, 8. 514 NSPI, "Port Hawkesbury Biomass Plant 2024-2025 Biomass Performance Testing Results," September 26, 2025, slide 4....
AI summary The document discusses the impact of moisture content on the performance of the Port Hawkesbury Biomass Plant (PHB). Higher moisture levels in biomass fuel reduce useful energy, increase fuel feed rates, lower boiler efficiency, strain components like the induced draft fan, and reduce electrostatic precipitator performance. Test results show a 25% reduction in steam flow output as moisture content increased from 50.38% to 55%.