Topic:"Budgets And Targets" in M12663

Revenue Requirement Application for the 2026/2027 Fiscal Year IESO Nova Scotia is seeking the NSEB's approval for its ongoing operational, maintenance and administrative costs budget for the fiscal year in question, in the amount of $13.08...

AI summary IESO Nova Scotia is requesting the NSEB's approval for its 2026/2027 fiscal year budget, including ongoing operational, maintenance, and administrative costs of $13.08M and transitional costs of $1.77M. The organization notes its limited historical data and that its 2025/2026 revenue requirement is still pending approval (M12412).

- 8 IESO Nova Scotia developed its OM&A budget for 2026/2027 using a multi-faceted approach. - 9 Wherever possible, IESO Nova Scotia relied on historical actual spending information and focused - 10 this knowledge base to reflect the areas...

AI summary IESO Nova Scotia developed its OM&A budget for 2026/2027 using historical data and bottom-up approaches. The budget includes ongoing OM&A costs of $13.08M and transition costs of $1.77M. The document also compares revenue requirements between the 2025/2026 and 2026/2027 fiscal years.

2 (Administration) Category Cost Category 2025/2026 Budget ($) (Millions) 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Millions) (increase)/decrease (A-B) Employees (Admi...

AI summary The document presents a budget comparison for administrative costs, including employees, compensation, and recruitment, between 2025/2026 and 2026/2027, highlighting a slight decrease in some categories.

2 (Administrative) Category Cost Category 2025/2026 Budget ($) (Millions) 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Millions) (increase)/decrease (A-B) Corporate (Admi...

AI summary The table provides a comparison of budget and expenditure figures across various cost categories for the years 2025/2026 and 2026/2027, showing increases and decreases in specific line items such as insurance coverage, communications, and office costs.

3 Cost Category 2025/2026 Budget ($) (Millions) 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Millions) (increase) /decrease (A-B) Governance 0.51M 0.52M 0.49M 0.03M 4 D....

AI summary The table presents budget figures for the Governance category under the Legal and Regulatory section, showing a slight decrease in the proposed 2026/2027 budget compared to the 2025/2026 budget.

Table 8: Comparison Chart Between 2025/2026 and 2026/2027 Budgets for the Legal and Regulatory Category 2025/2026 Budget 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Mill...

AI summary Table 8 compares the 2025/2026 and 2026/2027 budgets for the Legal and Regulatory Category, showing an increase in the proposed budget for Legal and Regulatory Proceedings and Assessments, while Legal and Compliance remains unchanged.

2 Transitional Costs Category Cost Category 2025/2026 Budget ($) (Millions) 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Millions) (increase)/decrease (A-B) Total Transit...

AI summary The document outlines transitional costs for the 2025/2026 and 2026/2027 fiscal years, including expenses related to PMO support, subject matter expertise, and compliance preparedness. Budgets and annualized expenditures are detailed with differences highlighted for each category.

REDACTED 2 Reference: Application, Exhibit B-2 3 (a) IESO NS indicates that for the purposes of preparing its budget, it has "assumed that the 4 23 employees responsible for functional management and administrative matters are fully 5 empl...

AI summary The document contains a request for clarification regarding IESO NS's budget assumptions, specifically concerning the employment status of 23 administrative positions and the use of expert consultants in determining compensation for non-CEO roles.

- IESO Nova Scotia states that "Office costs were not anticipated in the 2025/2026 budget, thus - increasing the total costs in the Office costs subcategory from $nil to approximately $100,000 for - the fiscal year. Additionally, IESO Nova...

AI summary IESO Nova Scotia explains an increase in office costs for the 2025/2026 fiscal year, which was not initially anticipated in the budget. They offset this by reducing external consultancy costs through internal hiring. Questions are raised regarding budgeting methodology, supporting calculations, and variances in corporate administrative costs.

NON-CONFIDENTIAL 20 (e) Why is the "various insurance coverages" subcategory expected to decrease by 63% from 21 2025/2026 budget and annualized amounts? 22 (f) Why is the "communications" subcategory expected to decrease by 43% from 2025/...

AI summary The document outlines responses to information requests regarding budget changes, specifically the expected decrease in 'various insurance coverages' and 'communications' subcategories. The responses explain that budgeting methodology involved reviewing actual costs and expense drivers, and that increased consulting support is expected for stakeholder engagement related to procurement and Phase II initiatives.

NON-CONFIDENTIAL 40 (c) See table below for the breakdown of office costs. None of these expenses were 41 contemplated when the 2025-2026 budget was developed, which was an oversight, leading 42 to the variance in 2026-2027.

AI summary The text mentions an oversight in the 2025-2026 budget development, resulting in unexpected office costs that were not accounted for, leading to a variance in the 2026-2027 budget.

NON-CONFIDENTIAL 1 Request IR - 16 2 Reference: Exhibit B-2 (page 28, lines 11-13, Finance) 3 IESO Nova Scotia states that "The greatest change in the Finance cost category between 4 2025/2026 budget and the 2026/2027 budget is the interes...

AI summary The document outlines a request for information regarding the finance cost budgeting methodology, supporting calculations for payroll and accounting subscription services, and the reasons for significant increases in finance costs and payroll expenses. The request also asks for the impact of temporary financial relief on projected financing costs.

- IESO Nova Scotia states that "The difference between the estimated annualized expenditures under - the 2025/2026 test year and the proposed 2026/2027 budget are based on differences in estimated - personnel costs. Specifically, the 2025/...

AI summary The document discusses discrepancies between the 2025/2026 and 2026/2027 budgets for operations (system planning) costs, specifically highlighting differences in personnel costs, compensation increases, and burden assumptions. It requests detailed budgeting methodologies and supporting calculations for various cost categories.

10 Explanations for variance to 2025/2026 budget: 11 • PMO Support includes Program and project management, HR transition planning, 12 and change management and accounting setup. These items are 0.17M over budget 13 as of December 31, 2025...

AI summary The text outlines explanations for variances in the 2025/2026 budget, specifically mentioning PMO support and increased operational scope. It also references responses from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from Doane Grant Thornton LLP (DGT).

IESO Nova Scotia Budget vs. Actuals: Budget_FY26_P&L - FY26 P&L

AI summary The document presents a comparison between the budget and actual financial performance for FY26, focusing on the Profit and Loss (P&L) statement under the IESO Nova Scotia.

April 2025 - March 2026 Year to Dec 31, Fiscal 202 Q4 - FORECAST TO END ( ACTUAL BUDGET Forecast BUDGET Forecast BUDGET Total Income 2,675,000 2,675,000 500,000 537,500 3,175,000 3,212,500 Total Expenses 3,755,146 5,268,215 4,184,165 3,250...

AI summary The document presents a financial summary for the period April 2025 to March 2026, including income, expenses, and procurement figures. It also includes an A/P Aging Summary Report related to the IESO Nova Scotia.

NON-CONFIDENTIAL 1 Request IR - 16 2 Reference: N-1(i), Exhibit B-2, pdf p.15-16 and p.32-33 which compares 2025/26 annualized to 3 2026/27 for administrative and operations categories. 4 (a) Please reconcile the 23 administrative and 21 t...

AI summary The document includes a request and response regarding the reconciliation of FTEs and organizational changes between 2025/26 and 2026/27, referencing prior proceedings and specific exhibits.

NON-CONFIDENTIAL 1 Request IR - 28 2 Reference: N-1(i), Exhibit B-3, pdf p.36-37, Table 2, shows PMO down from $1.29 million 3 (annualized) to $0.57 million, SME up from $0.12 million to $0.86 million and compliance down 4 from $0.44 milli...

AI summary The document discusses budget changes between fiscal years 2025/26 and 2026/27, specifically the decrease in PMO costs and increase in SME costs. It references a prior response to DGT IR-22 and attributes the SME increase to a shift in focus to Phase II readiness and transition planning.

Financial Forecast - Procurement April 1 2026 - March 31, 2027 ІТЕМ 'otal Estimate REOI for Additional Capacity Technical Experts 160,000 30,000 30,000 30,000 30,000 40,000 160,000 Legal 85,000 30,000 30,000 10,000 15000 85,000 Documentati...

AI summary The document outlines financial forecasts and budget allocations for the procurement process in Nova Scotia from April 1, 2026, to March 31, 2027. It includes estimates for various costs associated with the REOI for Additional Capacity and consulting services provided by the Procurement Department.

NON-CONFIDENTIAL 48 • Transition and operational planning costs to December 31, 2025 are $0.28 (38%) higher 49 than the prorated budget primarily due to higher consulting costs for program and project 50 management as well as financial adv...

AI summary The document highlights that transition and operational planning costs to December 31, 2025, are 38% higher than the prorated budget due to increased consulting and financial advisory costs. In contrast, operations (Systems Planning) costs are 61% lower than the prorated budget due to a later-than-expected start.

29 (b) Yes. The CEO is included in the Operational Oversight categorical function. Please also 30 refer to part (e). 31 32 (c) Confirmed. The IESO continues to hire for the roles noted on page 12 of the Application, 33 which is expected to...

AI summary The IESO Nova Scotia confirms the CEO's inclusion in the Operational Oversight function and outlines hiring status for roles noted in the Application. The 2025/2026 budget included 13 FTEs, with one position outsourced and two roles delayed due to financial considerations.

9 Response IR - 12 - 10 Table 3: Comparison Chart Between 2025/2026 and 2026/2027 Budgets for the Employees

AI summary This section presents a comparison chart between the 2025/2026 and 2026/2027 budgets for employees, highlighting changes in financial planning over the two fiscal years.

1 Request IR - 13 - 2 (a) Regarding Table 5 on page 18 of the application, please provide a version adding a - 3 column for actual 2025/2026 to date. 5 Response IR - 13 4 6 (a) Table 5: Comparison Chart Between 2025/2026 and 2026/2027 Budg...

AI summary The document contains an information request (IR - 13) asking for an updated version of Table 5 with an additional column for actual 2025/2026 data. A response is referenced, indicating that a revised table comparing the 2025/2026 and 2026/2027 budgets has been provided.

7 Corporate (Administrative) Category 2025/2026 Actual 2025/2026 2026/2027 budget ($) 2025/2026 Annualized Proposed Difference ($) (Millions) at Dec 31 Expenditures Budget ($) (Millions) Cost category ($) ($) (Millions) (Millions) (increas...

AI summary The document presents a table outlining corporate administrative costs for 2025/2026 and related financial figures, including budget, actual, and proposed expenditures. It also references responses from the IESO Nova Scotia to information requests from the NSEB.

1 Request IR - 14 - 2 (a) Regarding Table 6 on page 19 of the application, please provide a version adding a - 3 column for actual 2025/2026 to date. 5 Response IR - 14 4 - 6 (a) Table 6: Comparison Chart Between 2025/2026 and 2026/2027 Bu...

AI summary The document contains a request and response related to the submission of a table comparing the 2025/2026 and 2026/2027 budgets, with a request to add a column for actual 2025/2026 to date.

- 7 Governance Category 2025/2026 Actual 2025/2026 2026/2027 budget ($) 2025/2026 Annualized Proposed Difference ($) (Millions) at Dec 31 Expenditures Budget ($) (Millions) Cost category ($) ($) (Millions) (Millions) (increase)/decrease (M...

AI summary The document presents a table comparing budget figures for the Governance category across different fiscal years, including actual expenditures and proposed budgets. It also references responses from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Nova Scotia Energy Board (NSEB).

1 Request IR - 15 - 2 (a) Regarding Table 8 on page 20 of the application, please provide a version adding a - 3 column for actual 2025/2026 to date. 5 Response IR - 15 4 6 (a) Table 8: Comparison Chart Between 2025/2026 and 2026/2027 Budg...

AI summary The document contains a request (Request IR - 15) asking for an updated version of Table 8 in the application, which compares the 2025/2026 and 2026/2027 budgets, with an additional column for actual 2025/2026 to date. A response (Response IR - 15) acknowledges the request and refers to Table 8: Comparison Chart Between 2025/2026 and 2026/2027 Budgets for the Legal.

1 Request IR - 19 - 2 (a) Regarding Table 12 on page 26 of the application, please provide a version adding a - 3 column for actual 2025/2026 to date. 5 Response IR - 19 4 6 (a) Table 12: Comparison Chart Between 2025/2026 and 2026/2027 Bu...

AI summary An information request (IR - 19) is made regarding Table 12 on page 26 of the application, asking for a version with an additional column for actual 2025/2026 to date. A response is provided, referencing Table 12, which compares the 2025/2026 and 2026/2027 budgets.

7 Facilities and Technology Cost Category 2025/2026 Actual 2025/2026 2026/2027 budget ($) 2025/2026 Annualized Proposed Difference ($) (Millions) at Dec 31 Expenditures Budget ($) (Millions) Cost category ($) ($) (Millions) (Millions) (inc...

AI summary The document provides a table detailing budget and actual costs for the Facilities and Technology Cost Category for various years, including differences between proposed and actual expenditures. It highlights discrepancies such as a $0.41M decrease in the Facilities and Technology category and a $0.89M difference in IT Application costs.

7 Response IR - 22 - 8 (a) Table 16: Comparison Chart Between 2025/2026 and 2026/2027 Budgets for the

AI summary The document provides a comparison chart between the 2025/2026 and 2026/2027 budgets, highlighting differences in financial planning and resource allocation for the relevant entity.

- 9 Operations (System Planning) Cost Category Cost category 2025/2026 budget ($) (Millions) Actual 2025/2026 at Dec 31 ($) Annualized 2025/26 based on budget not 2026/2027 Proposed Budget ($) (Millions) Difference ($) (Millions) (increase...

AI summary The document presents a budget and actual spending comparison for the Operations (System Planning) cost category in Nova Scotia, highlighting discrepancies between budgeted and actual figures. It also mentions responses from the Nova Scotia Independent Energy System Operator to information requests by the Nova Scotia Energy Board.

NON-CONFIDENTIAL 1 Request IR - 11 50 Power to IESO Nova Scotia; rather the transition of responsibility for Integrated Resource 51 Planning from NS Power to IESO Nova Scotia offers the opportunity to examine the IRP 52 process anew, and t...

AI summary The document discusses the transition of Integrated Resource Planning (IRP) responsibilities from NS Power to the IESO Nova Scotia, emphasizing the ongoing nature of IRP work and the budgetary considerations for the 2025/2026 fiscal year, including consulting expenses.

NON-CONFIDENTIAL 61 62 (g) No. As shown in Table 16, the 2025/2026 budget for IRP consulting fees was $500,000. 63 Since the 2025/2026 budget was for a six-month period, this amount was prorated for 64 twelve months to develop the 2026/202...

AI summary The 2025/2026 Integrated Resource Plan (IRP) consulting fees budget was prorated for twelve months, resulting in a total of $1.5M if fully spent. Neither of the IRP consultants are using subcontractors, though IESO Nova Scotia engaged Barrington Consulting for a stakeholder workshop and an independent contractor for audio-visual services.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Small Business Advocate (SBA) Information Requests 1 Request IR - 1 2 Refer to M12663, Exhibit N-1-(i), IESO-NS application for an order made pursuant to Sectio...

AI summary IESO Nova Scotia is seeking approval for its 2026/2027 OM&A costs budget of $14.85M, including $13.08M for ongoing operations and $1.77M for transitional costs. The application overlaps with the ongoing review of the 2025/2026 application, and IESO-NS acknowledges that elements of this application may change following the Board's review of the 2025/2026 application.

NON-CONFIDENTIAL 1 Request IR - 11 2 Refer to the Application and Exhibit B-1 – Ongoing OM&A Cost Category Detail, page 15, 3 Table 3: Comparison Chart Between 2025/2026 and 2026/2027 Budgets for the Employees 4 (Administration) Category:...

AI summary The document contains a request and response regarding the calculation of the annualized amount for the 2025/2026 revenue requirement, with the response directing the requester to refer to DGT IR-10 part (b) for further details.

- 4 Figure 1 Summary of findings, observations and conclusions # Report section Findings, observations, and conclusions and the 2025/2026 prorated budget.2 We note that 2025/2026 actuals were 2% lower than the prorated budget. This was lar...

AI summary The 2025/2026 actuals were 2% lower than the prorated budget, mainly due to lower administrative and procurement costs. The actuals were unaudited, but the NSEB has requested audited financial statements in future applications.

8 10 ($ millions) 2025/2026B1 Prorated 2025/2026B at Dec 31, 20252 2025/2026 actuals at Dec 31, 2025 2025/2026 actuals vs prorated 2025/2026B % change Employees (administration) 1.57 0.87 0.71 (0.16) -18% Corporate administration 0.29 0.23...

AI summary The table shows a comparison of various expense categories for 2025/2026, including prorated and actual figures, highlighting significant changes such as a 115% increase in facilities and technology expenses and an 86% decrease in finance expenses.

10 Figure 7 – Employees (administration) ($ millions) 2025/2026B 2025/2026A 2026/2027B 2025/2026A vs 2025/2026B % change 2026/2027B vs 2025/2026B % change 2026/2027B vs 2025/2026A % change Compensation 1.45 4.21 4.33 2.76 190% 2.88 199% 0....

AI summary The table shows budget figures for employee administration costs, including compensation and recruitment, with significant percentage changes between different fiscal periods. The budgeting approach involved peer reviews and market information.

20 Based on the table above, we note the following observations: 16 - 21 2026/2027B is 13% higher than 2025/2026B. This variance is largely driven by the increase in "office 22 costs" and "web hosting" sub-categories. - 23 o Per IESO Nova...

AI summary The 2026/2027 budget is 13% higher than the 2025/2026 budget, primarily due to increased 'office costs' and 'web hosting' expenses. The IESO Nova Scotia indicated that some office costs were not accounted for in the 2025/2026 budget, leading to the variance.

3 o The web hosting sub-category was budgeted at $5,000 per month for a total of $60,000 in 4 2026/2027B. This is a result of the anticipation that an upgraded website is to be developed and hosting will be complex.[23](#page-18-0) 5 6 • 2...

AI summary The document outlines budgetary differences between fiscal years 2025/2026A, 2025/2026B, and 2026/2027B, highlighting increases in web hosting and stakeholder engagement costs and significant decreases in insurance and communications costs. These changes are attributed to various factors, including the need for additional consulting and internal resource additions.

20 The following table details the breakdown of operations (system planning) costs by sub-category for 2025/2026B, 21 2025/2026A, and 2026/2027B. ($ millions) 2025/2026B 2025/2026A 2026/2027B 2025/2026A vs 2025/2026B % change 2026/2027B vs...

AI summary The text presents a table showing the breakdown of operations (system planning) costs for different periods, including changes in salaries, third-party recoveries, and consulting fees. The budgeting methodology assumes roles transferred from NS Power are compensated at least the same rate as before.

- 16 Based on the table above, we note the following observations: - 17 2026/2027B is 21% lower than 2025/2026B and 56% lower than 2025/2026A . IESO Nova Scotia 18 explained that this a result of the 2025/2026 PMO budget including the cost...

AI summary The text discusses budget differences between fiscal years 2025/2026 and 2026/2027, explaining that 2026/2027B is significantly lower due to initial setup costs in 2025/2026, while 2025/2026A is higher due to annualized costs for Phase II transition work. IESO Nova Scotia provided details on how these figures were calculated.

on actual spend at time of preparation of the budget. [60](#page-27-3) 33 - 34 IESO Nova Scotia stated that there are certain PMO support activities that are expected to continue in 2026/2027. - 35 This includes core functions however, the...

AI summary The text discusses the evolving role of the PMO (Project Management Office) in IESO Nova Scotia as the organization transitions from initial setup to Phase II, emphasizing increased subject matter expertise and oversight within a more mature governance framework. Budgeting is tied to actual spending at the time of preparation.

- 4 Figure 20 Summary of subject matter expertise Phase II ($ millions) 2025/2026B 2025/2026A 2026/2027B 2025/2026A vs 2025/2026B % change 2026/2027B vs 2025/2026B % change 2026/2027B vs 2025/2026A % change Subject matter expertise- Phase...

AI summary The document discusses the budgeting methodology used by IESO Nova Scotia to estimate the cost of Phase II at $0.86M for 2026/2027B. The cost consists of two pieces of work, though the exact scope of work remains uncertain.

IESO Nova ScotiaMarch 31, 2026 DRAFT 20 25 /26 Re e A lica tio ve nu pp n Bu dg et Ma rch 31 20 26 , Ac tua l Ac tua l-B ud t ge ( Un de r) /Ov er Dif f % ( Un de r) / Ov Bu dg et er Ad mi nis tra tio n S ala rie nd W s a ag es $ 1, 57 2,...

AI summary The document presents a budget comparison for the IESO Nova Scotia as of March 31, 2026. Actual spending is compared against the budget for various categories, highlighting significant under-spending in administration salaries and wages, facility and technology, and over-spending in corporate administration and legal and regulatory expenses.

Preventive controls - Board approved budget requirement. All procurement must be included in the Boardapproved annual budget or supported by an approved budget amendment. This control prevents unauthorized and unfunded spending ensuring al...

AI summary The document outlines preventive controls implemented by the Board to ensure financial accountability and prevent unauthorized spending. These include budget requirements, approval thresholds, purchase orders, segregation of duties, procurement methods, credit card restrictions, and expense report procedures.

- 4 (a) Please reconcile the 23 administrative and 21 technical FTEs to the 5 organizational chart referenced in the prior proceeding (M12412) and 6 identify any changes in role counts or scope. - 7 (b) Please identify any roles that were...

AI summary The text requests a reconciliation of FTEs between administrative and technical roles with prior organizational charts and identifies any changes in role counts or scope, as well as roles expected in 2025/26 that were not transferred, hired, or re-scoped for 2026/27, along with the variance impact.

l planning FTEs; and Exhibit A-1, pdf p.6-8 describes IRP and consultant selection. Please explain why $1 million in external IRP consulting remains necessary given the increased internal staffing. Reference: N-1(i), Exhibit B-2, pdf p.30-...

AI summary The text outlines questions raised regarding the budget for system planning, including the justification for external IRP consulting costs, reconciliation of interconnection study recoveries, and changes in budget allocations for compliance and other activities. It also asks for documentation to ensure no duplication of work.

Request IR-11: - Reference: Exhibit B-2 (page 17, lines 3-7, Corporate Administration) - IESO Nova Scotia states that " Office costs were not anticipated in the 2025/2026 budget, thus - increasing the total costs in the Office costs subcat...

AI summary The document outlines questions regarding the 2025/2026 and 2026/2027 budgets for corporate administrative costs, including explanations for variances in subcategories such as 'office costs,' 'web hosting,' and 'various insurance coverages.' It also requests details on budgeting methodologies and supporting calculations.

Request IR-12: - Reference: Exhibit B-2, page 20 (lines 11-13, Legal and regulatory) - IESO Nova Scotia states that "This cost category increased $300,000 from IESO Nova Scotia's - 2025/2026 Revenue Requirement Application to cover the ant...

AI summary The document requests detailed information on the budgeting methodology and supporting calculations for legal and regulatory costs, particularly in relation to the Phase II transition. It also asks for an explanation of the significant increase in the 2026/2027 budget and whether future costs are expected to change as Phase II progresses.

Request IR-13: on this variance. - Reference: Exhibit B-2 (page 22, lines 13-17, Procurement) - IESO Nova Scotia states that "The costs in this category have reduced slightly as the capacity - contract is anticipated to move to the project...

AI summary The document discusses the 2026/2027 procurement budget, noting a 10% decrease from the previous year, primarily due to reduced costs from the capacity contract and 300 MW RFP. A new subcategory, 'additional procurement,' is introduced with a budget of $0.48 million, requiring further details on roles and costs.

Request IR-14: - Reference: Exhibit B-2 (page 23, lines 4-7, Facilities and technology) - IESO Nova Scotia states that "IESO Nova Scotia is budgeting $1.56M in ongoing expenses as - part of the facilities and technology cost category. This...

AI summary The document requests detailed explanations regarding the budgeting methodology and cost variances for the 'facilities and technology' category, specifically addressing the 2025/2026 and 2026/2027 budgets, with a focus on subcategories like 'office lease' and 'managed IT services'.

oyed from April 1, 2026 to March 31, 2027 are expected to represent the staffing level going forward. If not, please explain why. Reference: Exhibit B-2 (page 17, lines 3-7, Corporate Administration) IESO Nova Scotia states that " Office c...

AI summary The text discusses budgeting methodology and variances in corporate administrative costs for IESO Nova Scotia, including unexpected office costs, changes in subcategories such as 'web hosting' and 'stakeholder engagement', and reductions in 'various insurance coverages' and 'communications'. Questions are raised regarding the reasons for these changes and the supporting calculations.

ent process for additional capacity and/or storage in 2026/2027. For the 2026/2027 budget, the procurement costs include technical experts, legal, communication support, and a procurement consultant." 1. Please provide the budgeting method...

AI summary The document discusses the 2026/2027 budget for procurement and facilities and technology costs, including a 10% decrease from the previous year's budget and a new subcategory for 'additional procurement' costs. It requests details on budgeting methodology, cost variances, and new subcategory expenses.

n the process for removing these costs from the Employee Technology Hardware and Software subcategory and treating them as capital expenditures. Reference: Exhibit B-2 (page 28, lines 11-13, Finance) IESO Nova Scotia states that "The great...

AI summary The document discusses the budgeting process for finance costs, specifically the increase in financing costs related to the operating line of credit from the Province and the reasons for the increase in payroll and accounting subscription services. IESO Nova Scotia highlights the impact of interest costs on the 2026/2027 budget.

2025/2026 annualized amount based on the 2025/2026 budget and not adjusted based on “the most recent assumptions on the number of employees and salaries as currently planned by the end of 2025/2026.” Regarding the Phase II readiness assura...

AI summary The text includes questions and comments regarding the 2025/2026 budget, consultant readiness for Phase II, the Net OM&A Deferral and Variance Account, and the use of a provincial grant. It also requests additional information on the account's rationale, balance, and recovery, as well as clarification on the application of grant funds.

- 43 i. Lease arrangements and use of facilities (including, for example, whether 44 IESO NS and NS Power discussed the possibility of IESO NS leasing 45 space at any properties owned by NS Power) 1 2 3 4 ii. Employee compensation (includi...

AI summary The document discusses lease arrangements between IESO NS and NS Power, as well as employee compensation and benefits, including the 'fringe rate' of 15% and budget information from IESO Nova Scotia.

1. IESO NS indicates that for the purposes of preparing its budget, it has “assumed that the 23 employees responsible for functional management and administrative matters are fully employed during the 26/27 fiscal year.” Please confirm whe...

AI summary The text outlines a series of questions directed at IESO NS regarding its budget assumptions, staffing, compensation, fringe benefits, salary increases, turnover rates, stakeholder engagement, procurement processes, office costs, and governance expenses for the 26/27 fiscal year.

ons will not all be filled for the entire duration of the 26/27 fiscal year, then please confirm whether the budget takes that into account. Request IR-8: Reference: Application, Exhibit B-3 1. If much of the work to stand up IESO NS’s HR...

AI summary The text includes several requests for information regarding IESO NS's budget planning, remaining work on HR systems, change management costs, ongoing projects, and the implications of approving a Net Revenue Requirement Deferral and Variance Mechanism, including potential prudence reviews for cost overruns.

Refer to M12663, Exhibit N-1-(i), IESO-NS application for an order made pursuant to Section 29 of the Act for the review of its proposed expenditure and revenue requirements and the fees it proposes to charge for the fiscal year between Ap...

AI summary IESO Nova Scotia is seeking approval for its 2026/2027 OM&A budget of $14.85M, including transitional costs. The application is submitted before the approval of the 2025/2026 revenue requirement application, and there may be changes following the Board's review. Questions are raised about potential changes, staffing, organizational structure, and management team stability.

15 2) IESO's Lack of Transparency in the Regulatory Process 16 17 The CA is concerned about the level of detail provided by the IESO in the course of this hearing, 18 and whether the IESO has provided a sufficient evidentiary record upon w...

AI summary The Commissioner of the Environment and Sustainable Resource Development (CA) is concerned about the lack of transparency and insufficient evidentiary record provided by the IESO in its application for OM&A costs and transitional planning costs. The IESO did not provide detailed work papers or background costing information to support its estimates.

"page-16-2"> [ 15 ](#page-16-3) CA RIR-3; SBA RIR-7; NSEB RIR-7. [ 16 ](#page-16-5) Hearing Transcript, June 17, 2026, pp. 116-117. 20 29 41 44 2 Q. I guess what would you say to the concern that, you know, the Board approves 3 X-dollars t...

AI summary The witness addresses concerns about forecast accuracy and budget management, explaining that while some categories may be underspent, the organization ensures that funds are reallocated appropriately within the overall budget, without random spending not approved by the Board.

18 i. Staffing Assumptions 19 20 As noted above, the IESO has sought approval for a budget that anticipated having 44 full-time 21 employees for the entire duration of the 2026-2027 fiscal year. 22 23 However, at present, the IESO has not...

AI summary The IESO has applied for a budget assuming full staffing, but currently only 9 of 23 management and administrative positions are filled. The organization expects to complete recruitment by mid-September 2026, though it acknowledges the assumption of full staffing was made for expediency due to limited resources at the time of the application.

nd there's really no risk to the organization. 30 31 So what are the internal controls and mechanisms that are going to be in place to 32 make sure that we have our checks and balances for that? 33 34 A. (Johnston) So I hope the record sho...

AI summary The discussion focuses on internal controls and mechanisms to ensure prudent budgeting and accountability. The organization emphasizes its commitment to financial responsibility and the importance of the Board's oversight in ensuring compliance with the More Access to Energy Act .

5 ATCO Gas and Pipelines Ltd. v. Alberta (Utilities Commission) 2015 SCC 45 ("ATCO 2015"), para 38. 119 IESO Nova Scotia submits that, in its decision approving its 2025/26 Revenue Requirements (2026 142 ("NSPI") to IESO Nova Scotia in acc...

AI summary IESO Nova Scotia argues that the budgeting of the Operations category is not a material issue in the proceeding, as the costs of employees are mandated by legislation and budgeted predictably. The accuracy of the Employees (Administration) budget depends on predictable compensation and full staffing.

8 IESO Nova Scotia response to CA IR-7, M12663, March 10, 2026. 172 173 As noted in the response to CA IR-7, for budgeting purposes, the 2026/2027 budget assumes all 174 positions are in place for the full fiscal year. 175 176 Mr. Johnston...

AI summary IESO Nova Scotia responds to CA IR-7, explaining that the 2026/2027 budget assumes all 44 roles are filled, despite 13 vacancies. They argue that adjusting the budget for these vacancies is not prudent or necessary, citing the early stage of operations and reliance on external support.

14 M12633 Transcript, June 25, 2026, pages 120 - 122. 297 Undertaking U-7. 298 299 The not-for-profit nature of IESO Nova Scotia is a significant factor that must be taken into 300 account. If IESO Nova Scotia does not have the funding to...

AI summary The not-for-profit nature of IESO Nova Scotia is highlighted as a critical factor in its operations. If IESO Nova Scotia lacks funding, it cannot fulfill its mandate, which would negatively impact energy system planning, resource procurement, and electricity supply reliability. Mr. Johnston emphasized the importance of accurate forecasting in budgeting.

s Application. Administration employees' salaries are 409 reasonable based on the best information and market research made available to IESO Nova Scotia 410 through its compensation consultants. 411 With respect to budgeting, IESO Nova Sc...

AI summary The application's employee salary figures are deemed reasonable by IESO Nova Scotia, based on market research and compensation consultants. The 50th percentile salary was used at the top of each band to simplify budgeting and account for indirect costs like travel and training, due to a lack of historical data.

41 NSEB Decision, M12412, February 25, 2026, p.20. 875 that circumstance, the variance is subject to a further reasonableness review by the NSEB. IESO 876 Nova Scotia submits that the threshold balances operational flexibility for IESO Nov...

AI summary The NSEB decision discusses the reasonableness of the DVM variance thresholds in managing routine variances, acknowledging that while exceptional circumstances may arise, the thresholds provide a practical framework for variance management. Nova Scotia emphasizes the need for fiscal responsibility, while IESO Nova Scotia notes that actual expenditures may vary from forecasts.

1 Office Costs - 2 Throughout the Application, the IRs and during the hearing, a great deal of time was spent - 3 reviewing the 2025/2026 expected results, with the acknowledgment that the final audited - 4 financials had not been complete...

AI summary The document discusses concerns raised about the IESO-NS 2026/2027 budget, particularly the allocation of Office Costs, including a significant 'Other Expense' category. The SBA argues for greater transparency and accountability by separating travel-related expenses into a distinct category. The discussion also highlights the need for an accounting policy review to ensure clarity in budget breakdowns.

17 The SBA provided the following regarding recruitment fees: 18 Within the 2026/2027 proposed budget, there is $100,000 allocated for "recruitment 19 fees", which is detailed as potentially including a signing bonus. IESO-NS confirmed 20...

AI summary The SBA raises concerns about the allocation of $100,000 for recruitment fees in the 2026/2027 budget, including potential use for signing bonuses, which may lead to total compensation exceeding expert recommendations. IESO-NS clarified no funds were allocated for signing bonuses or retainers.

- 5 category: - 6 Travel and associated expenses should be identified under a separate category within - 7 the budgets going forward and not lumped together under 'Other Expenses' in the - Office Costs category;62 8 9 - 10 IESO Nova Scotia...

AI summary The document discusses the need to categorize travel and associated expenses separately within budgets, rather than grouping them under 'Other Expenses' in the Office Costs category. IESO Nova Scotia acknowledges stakeholder feedback and indicates that the next revenue requirement application may be structured differently to improve clarity.

IESO NOVA SCOTIA PANEL 59 Cr-ex, (Murphy) 1 that period as well. So that would get us back to 19. 2 Okay. And I guess with all of Q. 3 that in mind, the budget, as I understand it, assumes a 4 full complement even though there isn't, right...

AI summary The discussion centers on projected costs for unfilled roles within the IESO, with concerns about budget assumptions and potential recovery mechanisms. The IESO acknowledges the assumption of a full complement of staff in its budget, despite roles not yet being filled.

1 We're waiting, like Nova Scotia Power, I think, for any 2 change in direction. 3 Q. CA IR-3. We had asked the IESO 4 to explain what is meant by "Materially tracking" because 5 the reference there was that: 6 7 8 9 10 IESO Nova Scotia no...

AI summary The discussion revolves around the IESO Nova Scotia's explanation of 'Materially tracking' in relation to its 2025/2026 actual expenditures compared to its proposed revenue requirement. The entity is questioned on whether the term implies alignment with the budget and whether the variances observed are significant.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS Q. I guess what would you say to the concern that, you know, the Board approves X-dollars to be spent in a certain category, based on a forecast or an estimate that IESO Nova Scotia pr...

AI summary The concern is raised that the Board may approve funds for specific categories based on forecasts that may be inaccurate, allowing shortfalls in one area to be covered by underspends in another. The response acknowledges the concern and emphasizes the need for accurate forecasting and managing overall operational costs.

IESO NOVA SCOTIA PANEL 119 Cr-ex, (Murphy) the example earlier, there's areas where we've been under able to be underspent, for example in our employee cost, because we didn't have employees, but we were then over in sort of contractor/con...

AI summary The discussion revolves around budget management and the use of contractor/consulting costs versus employee administration costs. Concerns are raised about using funds approved for one purpose for another, and the response emphasizes prudent budgeting and alignment with legislative mandates.

IESO NOVA SCOTIA PANEL 169 Cr-ex, (MacAdam) process, such as review of things like bird studies and other things of that nature. That would be characteristic of the type of site development work that's been undertaken. Q. And are those cos...

AI summary The discussion focuses on the process of site development, including costs related to studies such as bird studies, and whether these costs are included in the 2025/2026 or 2026/2027 budgets. It is explained that these costs are repaid by the awarded proponents, and there is a mention of the SGIP administration process and its schedule.

IESO NOVA SCOTIA PANEL 175 Cr-ex, (MacAdam) 1 undertake to investigate the difference between the 5.05 2 and then the table number of 5.48, because at the moment I 3 don't know exactly why those two numbers are different. 4 Q. Okay. 5 MS....

AI summary The text discusses an undertaking (U-3) to explain the discrepancy between two numbers (5.05 and 5.48), and includes a question about the timing of the decision to use professional recruitment for the management team of a new organization.

- had we had roughly six months of operations in '25/'26 and - had it been 2 million, it would have been 4 million in the - annualized number, but because it was zero, it could only - be zero. - Q. So the difference in the final - column i...

AI summary The discussion focuses on budget variances between two fiscal years, specifically addressing the difference between anticipated spend and proposed budgets for 2026/2027, with an emphasis on the impact of incomplete operations in the prior year.

- that we then had to add it in. 1 THE CHAIR: Just in terms of that 2 response, I see you can see on the screen here there's 3 a couple of non zero entries that haven't changed either. 4 So the Technology Needs and Assessment and Business...

AI summary The discussion revolves around budget allocations for Technology Needs and Assessment, Business Case, and Control Centre Planning, with a focus on one-time versus ongoing costs. The conversation includes references to a comparison chart between 2025/2026 and 2026/2027 budgets for Operations System Planning Cost Category.

December was zero. And then annualized was 1.08 million. Did you receive anything between December 31st and the end of the fiscal year? A. (Johnston) We believe we've accrued about $450,000. Q. And what are those third-party recoveries? A....

AI summary The discussion revolves around third-party recoveries related to studies completed under generation or connection procedures, with a focus on accrued costs and budget figures for the 2025/2026 fiscal year.

- Q. If we go onto page 19 of 45 of 1 the same document, Table 5 actually, I'll just go down 2 to the very bottom of that page 19 where the footnotes 3 are, and it does say, "Web Hosting line item was omitted 4 in the '25/'26 Application i...

AI summary The text discusses a discrepancy in the '25/'26 Application regarding the omission of a web hosting line item and mentions the development of guidelines for the OM&A Deferral and Variance Account. It also references the compensation philosophy for IESO Nova Scotia, targeting the 50th percentile of the market for roles in Atlantic Canada.

IESO NOVA SCOTIA PANEL 227 Cr-ex, (MacAdam) 1 employee salary costs, you have things like travel, 2 training and other things that you won't see anywhere in 3 the budgeted items because we have no historical data to 4 put that data into ou...

AI summary The discussion revolves around budgeting for employee salary costs, including travel and training expenses not accounted for in the initial budget due to lack of historical data. The 15% figure is tied to benefits costs, and there is uncertainty about the 'Other Expense' category, which is the highest expense item in the budget.

IESO NOVA SCOTIA PANEL 363 Cr-ex, (Rudderham) 1 PDF page 21. 2 MR. FUREY: Mr. Chair, I apologize. 3 Before we move on, I wondered and I don't know the 4 practice here, I wondered if the document that was 5 referred to would be marked for i...

AI summary A proceeding involving the IESO Nova Scotia Panel discusses the marking of a document related to an IT and OT Cybersecurity Roadmap as Exhibit N-17. The discussion involves confirming the procurement budget categories of capital and operating, and the need for clarification on the application.

IESO NOVA SCOTIA PANEL 407 Cr-ex, (Rudderham) 1 Q. What I'm wondering, is that 7 Yes. And so the budget currently Q. 8 includes the salaries for 44 employees; correct? 9 (Johnston) That would be correct. A. 10 Q. But currently there's 13 1...

AI summary The IESO is explaining that its current budget includes salaries for 44 employees, despite having 13 vacancies. The IESO did not include a vacancy rate or adjustment in its labour expenses because the budget was based on the assumption that roles would be filled, and any delays in hiring would be offset by consulting support.

IESO NOVA SCOTIA PANEL 435 Cr-ex, (Rudderham) 1 passed on their cost the customers, would still be having 8 we'd have two days here at oral hearings that were part of 9 that bottoms-up build but, of course, there's costs 10 associated with...

AI summary The text discusses the inclusion of regulatory costs in the budget, specifically mentioning the annual report required under the Act. It highlights the need to track costs associated with hearings and report on variances at the end of the year.

- been a broad activity that was anticipated, but I think to the the way you're asking the questions is if we sort of detailed out every activity, and we haven't. - Q. What I'm trying to understand is whether the costs for these items that...

AI summary The discussion revolves around whether additional costs beyond the current revenue requirement or budgeted amounts will be incurred. The speaker indicates that while actuals may differ from forecasts, there is no indication of significant costs requiring new evidence or changes to the application, and the current budget is viewed as prudent.

IESO NOVA SCOTIA PANEL 503 Questions, (Chair) 1 that would be impactful and that are outside of the 12 budget, assuming that that's approved by the Board, to 13 then live within the means of that. 14 And, you know, whilst we've talked 15 a...

AI summary The CEO emphasizes the importance of accountability and prudent financial management, highlighting internal controls and budgeting processes to ensure spending aligns with the More Access to Energy Act. The CEO also stresses that the organization is committed to operating within approved budgets and being held accountable by both the board of directors and the regulatory body.