Topic:"Cap And Trade" in M12451

3.2.17 GHG Emission Compliance Program Costs - The cost of emission allowances (credits) under the Nova Scotia Cap-and-Trade program and GHG emissions compliance programs. - Transaction fees for purposes of purchasing or selling emission a...

AI summary This section outlines the costs associated with GHG emission compliance programs, including the cost of emission allowances under the Nova Scotia Cap-and-Trade program and transaction fees for buying or selling allowances. These costs are recorded in a specific account in NS Power's Chart of Accounts.

3.2.18 GHG Emission Compliance Program Revenue • The revenue from the sale of emission allowances (credits) under the Nova Scotia Cap-and-Trade program or GHG emissions compliance programs. Revenues of this type are normally recorded in th...

AI summary The document discusses revenue generated from the sale of emission allowances under Nova Scotia's Cap-and-Trade program and other GHG emissions compliance programs. This revenue is recorded in a specific account within NS Power's Chart of Accounts.

3.2.17 GHG Emission Compliance Program Costs - The cost of emission allowances (credits) under the Nova Scotia Cap-and-Trade program and GHG emissions compliance programs. - Transaction fees for purposes of purchasing or selling emission a...

AI summary The text discusses the costs associated with GHG emission compliance programs in Nova Scotia, including the cost of emission allowances and transaction fees for buying or selling them. These costs are recorded in a specific account within NS Power's Chart of Accounts.

3.2.18 GHG Emission Compliance Program Revenue • The revenue from the sale of emission allowances (credits) under the Nova Scotia Cap-and-Trade program or GHG emissions compliance programs. Revenues of this type are normally recorded in th...

AI summary This section discusses revenue generated from the sale of emission allowances under Nova Scotia's Cap-and-Trade program and other GHG emissions compliance programs, which is recorded in a specific account in NS Power's Chart of Accounts.

4.15.1 GHG Cap-and-Trade System Compliance Process Compliance with the GHG Cap-and-Trade Program is guided by the use of a GHG emissions shadow price which is calculated by the Portfolio Optimization team and approved by the FST. The GHG s...

AI summary The GHG Cap-and-Trade System Compliance Process involves setting a GHG shadow price based on forecasted surplus or deficit of free allowances. This price influences the dispatch cost of GHG-emitting resources, promoting the use of lower-emitting alternatives.

Numbers in CAD MM Financial/Regulatory Metrics 2019A 2020A 2021A 2022A Q3 2023 LTM 2023F 2024F 2025F Earnings 138 125 141 131 124 150 152 182 Regulated Equity (average) 40% 39% 37% 36% 35% 36% 35% 36% Regulated ROE achieved 9.25% 7.88% 9.0...

AI summary The table presents financial and regulatory metrics including earnings, regulated equity, return on equity (ROE), and credit metrics for various years from 2019 to 2025. Key metrics include earnings, regulated ROE achieved, and credit coverage ratios, with adjustments for non-cash GHG emissions accruals related to Nova Scotia's Cap-and-Trade program.

Figure 1 – Annual Emission Caps for Sulphur Dioxide, Nitrogen Oxides, and Mercury Year(s) SO 2 Tonnes NO x 7 Mercury Kg 2 Unit Maximum Annual 3 Cumulative 3 Annual Cumulative Annual 2021- 2022 17,760 60,900 90,000 14,955 56,000 35 2023- 20...

AI summary Figure 1 outlines annual emission caps for Sulphur Dioxide, Nitrogen Oxides, and Mercury from 2021 to 2030. The table shows decreasing caps over time, with specific values for each year and cumulative limits. A note indicates that excess mercury emissions in 2022 were offset by reductions in subsequent years.

Environmental, Social, And Governance NSPI's main environmental exposure relates to greenhouse gas (GHG) emissions because about 80% of NSPI's owned generation capacity are carbon based, including coal, gas, and petroleum coke (petcoke), w...

AI summary NSPI's main environmental exposure is GHG emissions from its carbon-based generation capacity, though it participates in Nova Scotia's cap-and-trade program and invests in renewable energy. Socially, NSPI provides reliable electricity, and governance factors are considered neutral with an engaged board.

Environmental, Social, And Governance NSPI's main environmental exposure relates to greenhouse gas (GHG) emissions because about 70% of its owned generation capacity is carbon based, including coal, gas, and petroleum coke (petcoke), with...

AI summary NSPI's primary environmental concern is GHG emissions from its carbon-based generation capacity. It participates in Nova Scotia's cap-and-trade program and invests in renewable energy. Socially, NSPI provides reliable electricity, and governance factors are considered neutral with a capable board overseeing risks.

ustomers of $18 million in 2018, $36 million in 2019 and $53 million in 2020. As at September 30, 2017, NSPI collected $12 million, which is recorded above as part of the FAM regulatory liability. - NSPI is required to withhold $10 million...

AI summary NSPI collected significant amounts from customers through the FAM regulatory liability in 2018, 2019, and 2020. The company must withhold a portion of its interim assessment payments annually, contingent on demonstrating benefits from the Maritime Link Project. The Province introduced amendments to the Environment Act for a cap-and-trade program, with NSPI anticipating recoverability of prudently incurred carbon reduction costs. DBRS assessed the regulatory environment for NSPI based on eight factors.

Regulation (CONTINUED) - NSPI is required to withhold $10 million from the interim assessment payment each year. The release is subject to providing evidence to the NSUARB that, at least, the amount of benefit from the Maritime Link Projec...

AI summary NSPI must withhold $10 million annually from interim payments until benefits from the Maritime Link Project are realized. The Province amended the Environment Act to establish a cap-and-trade program for carbon emissions starting in 2019. NSPI expects to recover prudently incurred carbon reduction costs from customers. DBRS evaluates the regulatory environment for NSPI based on eight factors.

llenges associated with its high electricity rates, which could make it increasingly challenging to fully pass costs onto the ratepayers in a timely manner if costs rise more quickly than anticipated. In June 2019, NSPI filed a new three-y...

AI summary NSPI filed a three-year fuel stability plan in 2019, seeking an average annual fuel rate increase of 1.9%. The company expects to recover emission allowance costs under the Province's carbon cap-and-trade program, which took effect in 2019. The Equivalency Agreement with the federal government allows NSPI to comply with federal emission regulations through 2029. DBRS Morningstar expects NSPI to maintain adequate cash flow and a flexible dividend policy.

- Because of the delayed energy delivery from the Muskrat Falls Project, the approved interim assessment payment reflects NSPML's proposal to reduce the assessment by deferring $53.0 million in 2018 and 2019, which is related to the deprec...

AI summary The document discusses NSPML's proposal to defer costs related to the Muskrat Falls Project, including a credit of $53.0 million to customers in 2020, and the NSUARB's interim cost assessment of $140.0 million in 2020. It also mentions the Province's amendments to the Environment Act for a cap-and-trade program.

ecision is expected by YE2019. - In October 2017, the Province passed amendments to the Environment Act for the development of a cap-and-trade program for carbon emissions, which became effective on

AI summary The Province of Nova Scotia amended the Environment Act in October 2017 to develop a cap-and-trade program for carbon emissions, which became effective shortly thereafter.

- Because of the delayed energy delivery from the Muskrat Falls Project, the approved interim assessment payment reflected NSPML's proposal to reduce the assessment related to the depreciation expense. - As NSPI recovered these costs as pa...

AI summary The document discusses NSP's financial adjustments related to the Muskrat Falls Project, including customer credits and withholding requirements tied to the Maritime Link Project. It also covers NSPI's compliance with carbon emission regulations, including the cap-and-trade program and the Equivalency Agreement with the federal government.

- In October 2017, the Province passed amendments to the Environment Act for the development of a capand-trade program for carbon emissions, which became effective on January 1, 2019, with an initial compliance period of four years (2019–2...

AI summary Nova Scotia has implemented various environmental regulations, including a cap-and-trade program, renewable electricity mandates, and coal phase-out requirements. NSPI is allowed to comply with federal GHG regulations through an Equivalency Agreement with the federal government, which was renewed in 2019.

Environmental Regulation • In October 2017, the Province passed amendments to the Environment Act for the development of a capand-trade program for carbon emissions, which became effective on January 1, 2019, with an initial compliance per...

AI summary Nova Scotia passed amendments to the Environment Act in 2017 to implement a cap-and-trade program for carbon emissions, effective from 2019. The Province also mandated 80% renewable electricity sales by 2030 and phased out coal-fired generation by 2030. An Equivalency Agreement with the federal government was renewed in 2019, allowing NSPI to comply with federal regulations until 2029. Due to the pandemic, NSPI faced delays in meeting renewable energy targets, prompting an alternative compliance plan.

- In October 2017, the Province passed amendments to the Environment Act for the development of a capand-trade program for carbon emissions, which became effective on January 1, 2019. - In July 2021, the Province amended the RER to mandate...

AI summary Nova Scotia has implemented several environmental policies, including a cap-and-trade program for carbon emissions starting in 2019, and mandated that 80% of electricity sales be from renewable sources by 2030. The Province also entered into an Equivalency Agreement with the federal government to align provincial and federal GHG regulations, which was renewed in 2019 and will expire in 2024, with potential renewal until 2029.

Environmental Regulation - In October 2017, the Province passed amendments to the Environment Act for the development of a cap-and-trade program for carbon emissions, which became effective on January 1, 2019. - In July 2021, the Province...

AI summary Nova Scotia has implemented several environmental regulations, including a cap-and-trade program, renewable energy mandates, and coal phase-out requirements. The province also amended the RER to require 80% renewable electricity sales by 2030 and established the NSIESO for grid operations. NSPI faced a penalty for noncompliance and appealed it. The 2030 Clean Power Plan aims to expand renewable generation and improve grid reliability.

The regulatory asset or liability balance associated with these deferrals as at December 31, 2024 (refer to the "Regulatory Assets and Regulatory Liabilities" section) includes associated interest which is recorded as "Interest expense, ne...

AI summary The text discusses the regulatory asset or liability balance related to deferrals as of December 31, 2024, including interest recorded as 'Interest expense, net.' It also mentions a $166 million under-recovery of fuel costs in Q1 2023 due to the reversal of Nova Scotia Cap-and-Trade Program compliance costs.

6. INTEREST EXPENSE, NET For the Year ended December 31 millions of dollars 2024 2023 Interest on debt $ 197 $ 202 Interest on FAM balance (19) (11) Interest revenue, net (9) (10) Reserve on interest on FAM balance (1) - (8) Allowance for...

AI summary The interest expense, net, for 2024 was $168 million, compared to $170 million in 2023. Key items include interest on debt, interest on FAM balance, and a reserve related to the Cap-and-Trade program. The reserve was reversed in Q1 2023 after NSPI received additional emissions allowances.

Average fuel costs per MWh decreased significantly in Q4 2024 compared to Q4 2023, primarily due to a refund of previous NSPML assessment payments. For further details refer to the "Developments" section above. Lower commodity pricing driv...

AI summary Average fuel costs per MWh decreased in Q4 2024 compared to Q4 2023 due to a refund of previous NSPML assessment payments and lower commodity pricing from changes in solid fuel. These decreases were partially offset by an unfavourable generation mix and increased compliance costs from the Cap-and-Trade program.

Highlights of the changes are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Fuel for generation and purchased power – 2023 $ 234 $ 777 2023 Nova Scotia Cap-and-Trade Pr...

AI summary The document highlights changes in fuel costs for generation and purchased power in 2023 and 2024, including a reversal of the 2023 Nova Scotia Cap-and-Trade Program provision, which resulted in a fuel cost recovery of $166 million due to additional emissions allowances provided to NSPI.

Environmental Regulation - In October 2017, the Province passed amendments to the Environment Act for the development of a cap-and-trade program for carbon emissions, which became effective on January 1, 2019. - In July 2021, the Province...

AI summary Nova Scotia has implemented several environmental regulations, including a cap-and-trade program and renewable energy targets. The Province amended the RER to require 80% renewable electricity by 2030 and phased out coal by 2030. An Equivalency Agreement with Canada was renewed in 2024, allowing compliance with federal GHG regulations until 2029. NSPI faced a $10 million penalty in 2023 for noncompliance and filed an appeal. The 2030 Clean Power Plan and Bill 404 aim to expand renewable generation and transition to the NSIESO for grid operations.

paragraphe 207.71(3) relativement à la convention déterminée pour l’année et une année précédente; (2) Subsection (1) applies to the 2024 and subse- (2) Le paragraphe (1) s’applique aux années d’im- quent taxation years. position 2024 et s...

AI summary The text discusses amendments to the Income Tax Act, specifically adding a new Part XII.7 related to Carbon Capture, Utilization, and Storage (CCUS), including definitions under this part and section 127.44.

3.2.17 GHG Emission Compliance Program Costs - The cost of emission allowances (Fund cCredits) under the Nova Scotia Cap-and- Trade program and GHG Output Based Pricing System (OBPS) emissions compliance programs. - Transaction fees for pu...

AI summary The text outlines the costs associated with GHG emission compliance programs, specifically the Nova Scotia Cap-and-Trade program and the GHG Output Based Pricing System (OBPS), including the costs of emission allowances and transaction fees for their purchase or sale.

3.2.18 GHG Emission Compliance Program Revenue The revenue from the sale of emission allowances (credits) under the Nova Scotia Cap-and-Trade program or GHG emissions compliance programs. Revenues of this type are normally recorded in the...

AI summary This section discusses revenue generated from the sale of emission allowances under Nova Scotia's Cap-and-Trade program or other GHG emissions compliance programs, and notes the accounting treatment for such revenues within NS Power's Chart of Accounts.

1 balances occur interest, that it's also beneficial to the 2 customers to have those balances addressed promptly as 3 well? 4 A. (Coyne) Yes. And that's the 5 thing with FAMs; they're generally deemed to be in the 6 best interest both of...

AI summary The discussion highlights the importance of addressing FAM balances promptly for the benefit of both customers and shareholders. It also raises concerns about competition when Nova Scotia Power does not fully account for fuel costs. The conversation includes questions about summing financial assistance items, including cap-and-trade forgiveness, loans, and guarantees.