Topic:"Cap And Trade" in M08059

as a significant difference of opinion between NSP! and the Board Staff consultants, Liberty and Synapse, on the issue of the approach to determining the future use of NSPI’s thermal generation fleet. In essence, NSPI's position appears to...

AI summary NSPI and Board consultants (Liberty, Synapse) disagree on analyzing NSPI’s thermal fleet future. NSPI argues delaying analysis due to unresolved issues (cap-and-trade, interprovincial transmission) is prudent. Consultants advocate immediate rigorous analysis. PHP supports NSPI’s goal of least-cost long-term solutions. Tufts Cove Unit 3 issues remain unresolved.

yet clear with respect to Tufts Cove Unit3 in particular. All parties appear to agree that the goal is to determine the least cost long term solution with respect to NSPI’s thermal fleet. PHP agrees. Thus, the issue does not appear to be t...

AI summary PHP supports NSPI's approach to reviewing Tufts Cove Unit3 but emphasizes the need for solid assumptions and stakeholder collaboration. They prioritize advancing the provincial cap-and-trade regime, federal equivalency agreements, and clarity on the Muskrat Falls project, while advocating for rigorous analysis in planning.

ed to serve firm peak demand and maintain the system’s planning reserve margin.2 (emphasis added) 1 NSPI 10-year System Outlook Report, p.18 2 NSPI 10-year System Outlook Report, p. 25 3090853 v1 Doreen Friis April 27, 2017 Page 2 In other...

AI summary The text discusses NSPI's capacity factors for power plants, discrepancies in data provided, and planning challenges due to federal policies like carbon pricing. It highlights the need for accurate information and flexibility in planning amid regulatory uncertainty.

a through a cap and trade program) and a planned natural gas regulation. NSPI has therefore indicated that it is making decisions with a strategy of achieving the “utmost flexibility” in its planning. NSPI outlined in the Technical Confere...

AI summary NSPI emphasizes flexibility in planning through cap-and-trade programs and natural gas regulations, while the Industrial Group supports optimizing thermal fleet investments. Cost allocation for legacy thermal units is debated, with the Industrial Group arguing for 100% Demand classification. The 2013 COS proceeding and pending IRP are referenced.

ot designed to follow load to the degree expected over the coming years. The magnitude of this load following can be up to the full nameplate capacity of the wind on the system (approximately 600 MW). Retaining the thermal units offers fle...

AI summary NSPI proposes retaining thermal units for flexibility amid environmental regulations and cap-and-trade commitments, requiring $400M over ten years. Questions challenge the plan's customer advantage, wind capacity limits, alternative energy sources, capital forecasts, and renewable integration costs.

Fueled Thermal Fleet To and Beyond 2030 – M08059, Synapse Energy Economics Inc. (the Synapse Report), May 1, 2018, page 1. 3 Supra, The Synapse Report, page 2. 4 The Synapse Report, page 3. Page 3 of 8 REDACTED (CONFIDENTIAL INFORMATION RE...

AI summary Synapse Energy Economics Inc. concludes that retaining Nova Scotia Power's coal fleet through 2030 is cost-effective for rate-payers, though uncertainty remains about the carbon regime's impact. NS Power expects clarity on carbon policy by late 2018, enabling an Integrated Resource Planning (IRP) exercise in 2019, contingent on updated demand-side management (DSM) studies.

tive option for rate payers is the retention of the coal fleet through 2030, and possibly beyond. Synapse confirmed this interpretation of the results at the Technical Conference on March 28, 2018. The Draft Report circulated on March 2, 2...

AI summary NS Power argues that retaining the coal fleet until 2030 is the lowest-cost option, confirmed by Synapse at a technical conference. The Draft Report lacks a conclusion on the Board’s objective, but NS Power expects the Final Report to affirm this. Uncertainty around Nova Scotia’s carbon regime and federal/provincial policy clarity will influence long-term planning, with a potential 2019 IRP exercise pending policy resolution.

lan (M08350): Page 3 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) April 18, 2018 Appendix B - NSPI Response to Synapse GU&O Technical Conference Page 4 of 9 D. Friis Both the CA and the SBA comment in their respective Closing Submissio...

AI summary The CA and SBA argue for an updated Integrated Resource Plan (IRP) to inform capital expenditures and DSM. NS Power agrees on the value of an IRP but defers action until after the Generation Utilization and Optimization proceeding (M08059) concludes, citing pending clarity on federal emissions rules and provincial cap-and-trade requirements.

pril 9, 2018, page 2. Page 8 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) April 18, 2018 Appendix B - NSPI Response to Synapse GU&O Technical Conference Page 9 of 9 D. Friis fleet through 2030, and possibly beyond. A clear statement co...

AI summary NSPI emphasizes the need for the Final Report to address long-term DSM modeling, gas-fired generation potential, and implications of additional wind for resource planning. The long-term viability of thermal fleet investments depends on the Province's carbon regime, with a comprehensive IRP expected in 2019 once clarity on the regime is achieved.