Topic:"Capacity Costs" in M08929

d disposal costs. x Land Ownership - compensation to land owners related to depreciated land values and altered uses. x Lost or altered recreational uses. x Loss of revenue to local businesses. x Protection and/or moving cultural heritage...

AI summary The text outlines various costs associated with the decommissioning of a dam, including disposal costs, compensation to landowners, loss of revenue to local businesses, and environmental considerations. It also mentions the need for studies and consultations to quantify environmental impacts.

-$500.00 Allowance General Parts -$1,000.00 Allowance Insulated Wire and Cables No. 1 -$1,000.00 Allowance Insulated Wire and Cables No. 2 -$1,000.00 Allowance ENGINEERING & PROJECT MANAGEMENT Engineering & Project Management $87,126.00 Si...

AI summary The text presents a cost breakdown for a site decommissioning estimate, including allowances for various materials and engineering management costs, with a subtotal of $890,993.60. Notes mention that HST is additional and that some infrastructure will be removed by others.

-$500.00 Allowance General Parts -$1,000.00 Allowance Insulated Wire and Cables No. 1 -$1,000.00 Allowance Insulated Wire and Cables No. 2 -$1,000.00 Allowance ENGINEERING & PROJECT MANAGEMENT Engineering & Project Management $84,339.00 Si...

AI summary The text outlines various allowances and costs associated with a site decommissioning estimate, including allowances for general parts, insulated wire and cables, and engineering and project management expenses, with a subtotal for the Avon No. 2 Development and additional notes on HST.

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AI summary The text discusses the challenges in managing and maintaining hydro assets, including the need for regular maintenance, cost considerations, and the impact of environmental factors on asset performance. It highlights the importance of efficient resource allocation and the potential consequences of neglecting maintenance.

n estimate of off-site disposal costs. Auxiliary Buildings Removals (not associated with Production Plant) $1,000.00 Remove steel structure over unit four downstream fish passage.

AI summary The text provides an estimate of off-site disposal costs, specifically mentioning the removal of a steel structure over unit four downstream fish passage, associated with auxiliary buildings removals not linked to the production plant.

of the powerhouse with site generated granular material and an estimate of off-site disposal costs.

AI summary The text discusses the off-site disposal costs of granular material generated from the powerhouse site, highlighting the need for an estimate of these costs.

NOVA SCOTIA POWER INC. ‐ HYDRO PRODUCTION ANNAPOLIS TIDAL POWER GENERATION STATION POWERHOUSE DEMOLITION STUDY EXECUTIVE SUMMARY Examinations and derivations of conceptual plans and related cost estimates for decommissioning of the Annapol...

AI summary This document outlines the decommissioning plan and cost estimates for the Annapolis Tidal Power Generating Station, focusing on structural demolition and removal of generating equipment. The report details the use of existing infrastructure and the necessity of permanent structural enhancements due to the facility's exposure to high tides. The total estimated cost is approximately $6,458,390 CAN, plus applicable taxes.

Total Contiguouse Wetland Permit Reporting and Total Expenses Hydrosystem Water Body Contiguouse Wetland Area (ha) Field Costs Total Permitting Cost Followup Monitoring Cost Total (Permiting+ Monitoring) Cost Area (ha) Submission Costs Cos...

AI summary The text presents a table detailing permitting and monitoring costs for various wetland areas in Nova Scotia, including total contiguous wetland areas, field costs, submission costs, and total permitting and monitoring costs for specific water bodies.

1 In its letter dated October 5, 201828 the UARB directed NS Power to complete a number 2 of pre-IRP analyses by July 31, 2019. One of these pre-IRP deliverables is a Capacity 3 Study which will calculate the ELCC of wind and other renewab...

AI summary The UARB directed NS Power to complete a Capacity Study as part of the pre-IRP analyses, which includes calculating the ELCC of wind and other renewable energy generators, evaluating the role of energy storage, and updating system capacity values for future planning. The study will influence future 10-Year System Outlook Reports and long-term resource planning.

1 peak load in the near term. The Company expects to be able to manage through this 2 upcoming winter period, and can also find near-term solutions for access to firm capacity 3 if required. NS Power will continue to monitor potential defi...

AI summary The Company is managing near-term peak load and has not accounted for the return of the Tusket CT’s 33 MW capacity in its forecasts. A medium-term outlook is provided in Figure 22, showing available capacity resources compared to customer demand. The planning reserve margin (PRM) is discussed as a measure of generation capacity relative to the NPCC 20% requirement, though it does not account for all system needs such as wind-following and emissions compliance.

ge 7 of the TOR and discussed with stakeholders. CA Constraints / We appreciate the goal of “a robust, This is covered as part of the Process & Assumptions risk-weighted least-cost long-term Deliverables Step 1 – Establish Analysis electri...

AI summary The text discusses the Integrated Resource Plan (IRP) and its need to address two types of risks: those adaptable through future plan adjustments (e.g., gas price fluctuations) and those that alter post-decision economics (e.g., solar adoption stranding 2020s capacity). The IRP must prioritize the latter risks while acknowledging supply plan differences in accommodating the former.

rces in the province (gas, oil, imports) and the IRP must fully reflect this resource option. [Note that EfficiencyOne has been directed to file a DSM Potential Study by July 31,2019.] 2. Determine costs and achievable potential for peak-l...

AI summary The document outlines several key tasks related to resource planning, including incorporating various energy sources into the Integrated Resource Plan, analyzing demand response costs, evaluating bulk-scale battery storage, and monitoring sustaining capital costs for the thermal fleet.

& Capacity Study 4. Monitor, track and project sustaining capital costs for the thermal fleet. Supply Options Study 5. Establish requirements to allow increased levels of wind on NSPI system. … NSPI should Renewables Stability Synapse dete...

AI summary The text outlines a series of actions related to capacity studies, renewable energy integration, and regional collaboration. Key points include monitoring sustaining capital costs for thermal fleets, increasing wind energy on the NSPI system, and exploring coal retirement alternatives after Lingan 2.

IRP Update Appendix 1 Page 358 of 487 Attachment 18 - Pre-IRP Deliverables Page 77 of 82 ADDENDUM TO SUPPLY OPTIONS STUDY: COSTS FOR EXISTING ASSETS J U LY 3 1 , 2 0 1 9 IRP Update Appendix 1 Page 359 of 487 Attachment 18 - Pre-IRP Deliver...

AI summary This document outlines preliminary cost projections for existing supply-side assets on the NS Power system, referencing the 2019 10 Year System Outlook Report and a Hydro Asset Study conducted during the 2019 ACE Proceeding. Further detailed assumptions will be developed during the Assumptions Development phase of the IRP.

Party Question/Comment & Response 2.1 Bates White ...we recommend that NSPI apply more conservative – i.e., lower – PRM values in its IRP evaluations… It is our view that the IRP process should be focused on ways to minimize the costs impo...

AI summary Bates White recommends NSPI use lower PRM values in its IRP to minimize customer costs and avoid excess capacity risks. NS Power responds that lower PRM may not reduce costs due to factors like emissions constraints, citing Synapse GUO modeling showing optimal portfolios often include excess capacity for economic or emissions benefits.

Party Question/Comment & Response 5.1 Bates White Please explain the components of each year’s sustaining capital cost. As discussed in Section 3.3.2, the annual 10 Year System Outlook Report IRP Update Appendix 1 Page 458 of 487 Appendix...

AI summary Bates White inquires about the components of each year’s sustaining capital cost. NSP explains that the sustaining capital forecast is developed based on the condition of unit assets and their expected utilization, as outlined in the 10 Year System Outlook Report. The forecast is broken down by asset class, and changes in assumptions can affect the sustaining capital requirements.

77,478 VictoriaJunctionCommonPlant $80,145 $21,627 $ 3,986 $59,574 $25,180 $ 3,584 $322,603 $168,887 GrandTotalͲCombustion...

AI summary The text presents a table with financial figures related to Victoria Junction Common Plant and Grand Total Combustion Turbine, including various cost categories and totals. It appears to be part of a regulatory proceeding involving financial data and cost analysis.

to substitute for firm capacity resources is limited by its relatively short duration. Up to 120 MW of storage by 2045 is selected in the portfolios with deployments of 30-60 MW by 2025 in many plans. For each scenario modeled, the IRP ide...

AI summary The Integrated Resource Plan (IRP) identifies the lowest-cost solutions to meet firm capacity and energy needs while retiring fossil fuels and adding gas capacity for reliability. By 2045, all coal units are retired, with diverse resources added to reduce GHG emissions. Scenario 2.0C (SDGA-compliant) minimizes revenue requirements over a 25-year horizon.

Resource Screening - Diesel Combustion Turbines 4.2.2.1 The Screening Analysis evaluated the existing fleet of seven diesel combustion turbines (CTs) by comparing the cost of retirement (and replacement with alternatives) to the cost of su...

AI summary The Screening Analysis evaluated the cost of sustaining versus retiring seven diesel combustion turbines, concluding that sustaining them is the lowest-cost option for meeting system capacity requirements. Replacing them with gas turbines was significantly more expensive over a 25-year NPV. Sensitivity analyses at Victoria Junction also supported sustaining the existing units.

reliable. An update of the pre-IRP capacity study to account for assumptions that were revised during the IRP also validated the 9% UCAP PRM Target as being appropriate. The SDGA-compliant key scenario which minimizes the cumulative presen...

AI summary The 9% UCAP PRM Target was validated as appropriate following an update to the pre-IRP capacity study. The SDGA-compliant key scenario that minimizes the cumulative present value of the annual revenue requirement over a 25-year planning horizon is 2.0C (Low Electrification / Base DSM / Net-Zero 2050 / Regional Integration).

2038 2040 2042 2044 Input Low Capacity Factor High Capacity Factor Capacity Factor 12% 19% $/kW2020 $3405 $3405 FO&M ($/kW-Yr) 17.50 17.50 Financing Lifetime (Years) 25 25

AI summary The text presents a table comparing low and high capacity factors for a given input, with values such as capacity factor, $/kW2020, FO&M ($/kW-Yr), and financing lifetime (Years) provided for both scenarios. The capacity factors are 12% and 19%, with all other values remaining constant across both scenarios.

2.1C.CAPEX-1 (High Sustaining C MW/units Generator Year 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Existing Coal Retirements 0 0 1 Unit 1 Unit 1 Unit 1 Unit...

AI summary The text presents a detailed table outlining the planned retirement and addition of various types of generators over the years, including coal, gas, and biomass, with specific numbers for units and capacities. It highlights the transition from coal and gas retirements to new gas generation and the phased introduction of new units.

2037 2039 2041 2043 2045 Input Low Capacity Factor High Capacity Factor Capacity Factor 12% 19% $/kW2019 $3492 $3492 FO&M ($/kW-Yr) 21 22 Financing Lifetime (Years) 25 25 Degradation (%/year) 0.5% 0.5%

AI summary The text presents a table comparing low and high capacity factors for a given input, with values for capacity factor, $/kW2019, FO&M, financing lifetime, and degradation. The capacity factors are 12% and 19%, with all other values remaining constant across both scenarios.

NSPI system is measured by the marginal ELCC and is currently at 11%, meaning that each additional MW of wind contributes 0.11 MW of firm capacity to PRM requirements. In its recent 2020 Annually Adjusted Rates Application filed with the N...

AI summary The NSPI system's marginal ELCC is currently at 11%, indicating that each additional MW of wind contributes 0.11 MW of firm capacity to PRM requirements. NS Power proposed using a 32% capacity contribution factor for wind generation in 2020, based on past approvals, but has since revised its methodology to a 17% factor for existing wind resources. A pre-IRP study on ELCC calculations will influence future capacity contribution factors for billing purposes.

rid resources) can be relevant to the capacity need. These resources can provide relatively inexpensive regulating and operating reserves during many hours of the year. Adding these resources to the 1 This may be inconsistent with NS Power...

AI summary The text discusses the relevance of flexible resources, such as solar and storage, to capacity needs and their potential to provide inexpensive reserves. It references studies and responses from NS Power on accounting policies, resource options, and utility-managed curtailment.

Category Participant Assumption Comment NS Power Response 12. Fuel Pricing CanWEA/SIA Consider natural gas constraints through NE The 3 tiers of gas pricing based on incremental volumes (Gas) and adjusted for seasonality are designed to ca...

AI summary The text discusses fuel pricing assumptions related to natural gas constraints and the role of Canaport LNG in addressing peak demand changes with increased LNG proliferation in the US. It also addresses sustaining capital costs and utilization factors, with NS Power confirming that high utilization refers to the most demanding historical experience of a unit rather than a uniform metric.

Use stochastic analysis capability to determine how NS Power will consider opportunities to run driver uncertainty affects portfolio cost; calculate stochastics if appropriate risk/benefit ratio by comparing cost of greater than average co...

AI summary The document outlines NS Power's approach to using stochastic analysis to evaluate portfolio costs and risk/benefit ratios, while also emphasizing the importance of quantifying total emissions per plan rather than comparing to an undefined base case. Emissions reductions are measured relative to 2005 actual emissions.

removal of the anomalously high DAFOR for TUC1 in 2016. These updated DAFOR forecasts were used in the reliability/operability study using E3s RECAP tool, which evaluate the required Planning Reserve Margin to meet the reliability standard...

AI summary The text discusses the removal of an anomalously high DAFOR for TUC1 in 2016 and the use of updated DAFOR forecasts in a reliability/operability study using the E3s RECAP tool. It also addresses modeling assumptions for inertia constraints, including how different resources contribute to meeting these constraints and any operational restrictions.

or cost) of the diesel CTs Outputs: System Costs (RR), Capacity Additions, Energy Generation, Retirements, etc. 3 The incremental cost of the portfolio (or savings) reflects the net system benefit (or cost) associated with the diesel CTs A...

AI summary Diesel CTs provide capacity value by maintaining existing fleet and avoiding new investments, contributing to peak load capacity. They also offer non-spinning reserve capacity, though they are not frequently used due to higher fuel costs. Replacement energy is not factored into calculations.

 On aggregate, maintaining the existing diesel CTs is worth about ~$186 MM (no end effects) and ~$240 MM (with end effects) to the system on an NPV basis Effective Load Carrying Capacity 14 System Value of Diesel CTs - 1.0.A Nova Scotia P...

AI summary The analysis indicates that maintaining existing diesel combined cycle (CT) units is more cost-effective than replacing them with alternative resources over the planning horizon, with system values estimated at ~$186 MM and ~$240 MM on an NPV basis, considering and without considering end effects respectively.

lacement builds required to provide required system capacity Cost to Replace Diesel CT vs Sustaining Capex Sustaining Capex vs Replacement Cost by Years Replacement energy and capacity costs reflect net system savings adjusted for avoided...

AI summary The document discusses the cost implications of replacing diesel combined cycle (CT) units with new gas CTs under different planning scenarios, including the impact on system costs and net present value (NPV). It also references resource screening results for hydro resources.

16,000 DR Capacity Addition and Retirement (MW) Energy Balance (GWh) Pumped Storage 14,000 Battery 2,500 DR Wind 12,000 Pumped Storage Tidal 2,000 Battery Solar

AI summary The text presents data on capacity addition and retirement in megawatts and energy balance in gigawatt-hours, including contributions from various sources like wind, tidal, solar, pumped storage, and battery, along with demand response (DR).

Natural gas price capacity plan sensitivity: The most recent FAM report suggests that there has been a shift from coal to gas driven by changes in fuel price. We suggest that NS Power should develop a capacity expansion plan that explores...

AI summary The document discusses the need for NS Power to develop capacity expansion plans that consider fuel price changes, transmission sensitivities, and hydro avoided costs. It also references the HalifACT 2050 plan and its alignment with the Integrated Resource Plan (IRP).

port Appendix J Page 185 of 245 would have to be built out in tandem with the wind. This could result in a premature and/or unnecessary level of capital expenditure, increasing costs to consumers. Interconnector Flows; treatment of exports...

AI summary The text discusses concerns about the capital expenditure required for interconnector projects and the potential impact on consumers. It requests clarification on interconnector energy flows and export pricing assumptions. It also questions the assumption in the IRP model that only firm imports contribute to ELCC, noting that other regions, such as Europe, use a different approach.

Category Participant Comment NS Power Response these costs were reduced by 50%, the economic decision would not change to retain the Small Hydro Fleet. The actual change would be expected to be less, as some components of replacement energ...

AI summary The Consumer Advocate (3d) points out that NS Power omitted potential limestone quarry expansion costs from the sustaining capital estimates for Point Aconi. NS Power responds that based on forecast capacity factors and available resources, no significant investment will be required for quarry expansion prior to 2040.

throughout the IRP process. As others have noted, it is not clear that NSPI’s work to date is “sufficient to demonstrate that NS Power has achieved an ‘optimal’ planning reserve margin.”12 We tend to 7 Audit Report, Recommendation IX-1. 8...

AI summary The text critiques NSPI's Integrated Resource Plan (IRP) reserve margin, citing E3's studies showing lower margins could meet reliability targets. It highlights that 2045 scenarios under the IRP demonstrated excess capacity (32-77 MW), suggesting over-planning. References to audit reports and IRP sections support these claims.

e scenarios, the achieved Planning Reserve Margin was in excess of the target.15 Thus, in all three cases, the system had more capacity than it needed in 2045; the excess ranged from 32 MW to 77 MW.16 It becomes a matter of interpretation...

AI summary The text discusses NSPI's Planning Reserve Margin (PRM) targets in its Integrated Resource Plan (IRP), noting that achieved PRM exceeded targets in scenarios, resulting in excess capacity (32-77 MW). It questions whether NSPI's 20% PRM is economically optimal, suggesting a lower target like 17.8% might be better, though NSPI has not explicitly claimed 20% is optimal.

mality means the economically lowest cost solution that meets the reliability criteria to which NSPI is subject. In fact, NSPI has never made such a claim, so it is not clear that NSPI would disagree. We do not believe that NSPI’s 2020 IRP...

AI summary The text discusses NSPI's 2020 Integrated Resource Plan (IRP) and the importance of the Planning Reserve Margin (PRM) in capacity planning. While accepting NSPI's approach as not fatally flawed, it emphasizes that PRM monitoring is critical for balancing reliability and cost. A lower PRM (e.g., <9%/20%) may be more optimal and should be evaluated in future procurement and IRP updates.

o NSPI’s firm peak load “and are not included in the firm peak load demand forecast in the IRP;” thus, “these customers do not impact capacity planning requirements in the long-term resource plans.”30 We recognize that the landscape has sh...

AI summary NSPI's firm peak load is excluded from the IRP's demand forecast, impacting capacity planning. The audit considers its recommendation closed due to the defunct LRT and ELIADC Tariff's role in preventing PHP contributions to peak load, though ELIADC's effectiveness remains unproven. A separate recommendation urges NSPI to evaluate full costs and benefits of maintaining its existing generating assets, including environmental and decommissioning factors.

l transportation and handling infrastructure, decommissioning costs, NSPI’s return of and on capital related to each plant, and FAM cost impacts, among potentially many others.31 In our view, NSPI complied with this aspect of our recommend...

AI summary The text discusses NSPI's compliance with recommendations regarding sustaining capital costs, O&M costs, and decommissioning. NSPI adjusted forecasts, including a high-cost scenario advancing coal retirement and retiring a gas unit. The importance of these assumptions in shaping the optimal resource plan is emphasized, with examples like Trenton 5's low capacity factors and high sustaining costs.

e Margin and Capacity Value Study,” July 2019. 37 Audit Report, Recommendation IX-1. 12 Bates White Comments On NSPI Final IRP Report Recommendation XIV-5: NSPI should perform a standalone analysis to determine the value of the Biomass Pla...

AI summary The text recommends NSPI conduct a standalone analysis to assess the Biomass Plant's value to FAM customers without PHP load, ensuring FAM customers aren't burdened by costs tied to PHP load. It also highlights the need for economic evaluation of NSPI's diesel-fired combustion turbines.

ommendation XIV-6: Combustion Turbine Analysis The third and final additional recommendation related to the IRP addressed the economics of NSPI’s seven existing diesel-fired combustion turbines: Recommendation XIV-6: In the Power Plant Per...

AI summary Recommendation XIV-6 evaluates the economics of NSPI’s diesel combustion turbines versus replacement options. E3’s RESOLVE model analysis showed maintaining the existing fleet is cheaper than replacing with gas peakers, even with adjusted planning reserve margins. This involved detailed discussions between NSPI and E3 on scenario modeling.

peakers. 38 Audit Report, Recommendation XIV-5. 39 Audit Report, Recommendation XIV-6. 13 Bates White Comments On NSPI Final IRP Report Overall, NSPI’s work in this area was responsive to our recommendation, and we agree that the outcome o...

AI summary Bates White acknowledges NSPI's response to audit recommendations but cautions against interpreting IRP results as a mandate to sustain aging combustion turbines indefinitely. The analysis highlights overly simplistic modeling assumptions, potential performance discrepancies, and the need for more nuanced capital investment evaluations, aligning with Resource Insight's 2020 recommendations.

3, 2020, page 14. 14 Bates White Comments On NSPI Final IRP Report A. Areas in IRP Report Requiring Additional Context 1. Coal retirements also mean savings on Sustaining Capital, Fixed O&M costs. NSPI appropriately explains that it will “...

AI summary Bates White highlights that NSPI's Final IRP Report omits cost savings from retiring coal plants, specifically sustaining capital and fixed O&M costs. While environmental benefits are noted, the financial implications of mothballing or shutting down high-cost coal units are not analyzed, potentially impacting overall system reliability and cost efficiency.

e likely not an intentional omission, it is worth underscoring the fact that sustaining the existing thermal units incurs costs that are otherwise avoidable if those units are mothballed or shut down. The IRP modeling made certain assumpti...

AI summary The text discusses NSPI's Integrated Resource Plan (IRP) assumptions about sustaining existing thermal units, noting that higher-than-expected sustaining costs could undermine the IRP's preferred portfolio, shifting retirement timelines for coal and gas steam units. It also highlights differences between NSPI's existing and new combustion turbines in cost and capacity roles.

ge 1. 60 Ibid. 61 Ibid., Figure ES-1. 62 2020 IRP Report, pages 112 to 113. 19 Bates White Comments On NSPI Final IRP Report As for the pursuit of “beneficial” electrification, we see this as an issue that may be exogenous to NSPI’s decisi...

AI summary Bates White comments on NSPI's Final IRP Report, noting that beneficial electrification depends on legislative and regulatory actions, while NSPI's evaluation framework for electrification is reasonable. Stakeholders debated resource cost assumptions in the IRP, prompting sensitivity analyses on wind and battery storage costs.

us condensers to support additional wind and provide inertia.71 These findings underscore the importance of our discussion of the Reliability Tie and NSPI’s regional coordination efforts in B.1 above. 4. Lingering discomfort with IRP assum...

AI summary The text highlights concerns about NSPI's Integrated Resource Plan (IRP) assumptions regarding technology costs and benefits, noting potential overestimation of costs and underestimation of renewable energy benefits. It emphasizes the need for competitive procurement to address discrepancies and acknowledges that IRP assumptions may become outdated due to rapid technological advancements.

lios with significant resource differences (e.g. high levels of renewables or major unit retirements), to provide insight on how the required PRM may change with different resource mixes.” Page 11. Synapse Energy Economics, Inc. Analysis o...

AI summary Synapse Energy Economics, Inc. analyzed NSPI's 2020 Integrated Resource Plan, recommending expansion of studies on renewable integration, PRM, and capacity value. They emphasized enhancing scenario analysis, incorporating diverse resource mixes, and ongoing ELCC effect evaluations to improve IRP accuracy and reliability.

360 million Reliability Tie) as soon as is practically feasible is reasonable. The Action Plan should support concerted efforts by NSPI to expedite processes required to allow the tie to be completed. Mersey The planning horizon scenario (...

AI summary The text evaluates the economic rationale for retiring the Mersey power plant, noting that decommissioning costs significantly impact NPV benefits. It recommends retiring coal units by 2030, emphasizing the need for continuous review of cost-benefit assumptions in NSPI’s Action Plan and Roadmap. Synapse Energy Economics, Inc. supports expediting the NS-NB Reliability Tie project.

rics considered in the IRP. The SBA provides comments above about the need for NSPI to increase the degree of integration of the DSM resource into its planning. Please see the prior DSM discussion. 3b. Nova Scotia Power's existing combusti...

AI summary The SBA emphasizes the need for NSPI to better integrate DSM into its planning, noting that while existing combustion turbines are economically viable, the IRP screening analysis lacks sufficient justification. Battery storage is highlighted as a tool for wind integration but limited by duration constraints.

Combustion Turbine Fleet Throughout the IRP process, Heritage Gas has raised concerns regarding the continued reliance on the aging infrastructure of the 1970's-era Light Fuel Oil fired Combustion Turbine ("CT") fleet. NSPI has indicated t...

AI summary Heritage Gas raises concerns about NSPI's reliance on aging 1970s-era combustion turbines, while NSPI argues sustaining investments are cheaper than replacement. Bates White's FAM audit highlights reliability issues, uncertain performance improvements from repairs, and potential higher O&M costs if CTs are used more than modeled. Economic retirement of the fleet before 2045 is recommended.

ates, a markup in prices is being considered by the utility for the NS Smart Grid project in Amherst. At minimum, a Universal Service 5 program should be explored as a next step opportunity. IRP Economics (Economies of Scale): The IRP shou...

AI summary The text discusses proposals for the NS Smart Grid project, advocating for a Universal Service program. It critiques the IRP's handling of coal retirement, investor return calculations, and stranded assets, recommending performance-based regulation and repurposing coal infrastructure for non-fossil fuel uses.

C. Recommendation XIV-6: Combustion Turbine Analysis In the Power Plant Performance chapter of this report, we have a recommendation to implement more regular and robust IRP planning. Subject to identifying the need for peaking and fast ra...

AI summary The NSUARB recommends NSPI conduct regular IRP planning to compare the economics of maintaining existing combustion turbines (CTs) versus replacing them. While NSPI's analysis supports sustaining current units, the Board cautions against treating IRP results as a mandate for perpetual operation or full customer funding of capital investments. (Exhibit N-10, page 14)

Sustaining Capital and O&M Roadmap (3) Notably, in the high sustaining capital cost scenario, a coal retirement is advanced by ten years (from 2040 to 2030) and one additional gas steam unit is retired in 2026. NSPI is correct that in this...

AI summary The text discusses NSPI's Integrated Resource Plan (IRP) and the impact of sustaining capital and fixed O&M costs on the optimal resource plan. It notes that in a high sustaining capital cost scenario, coal retirement is advanced and an additional gas steam unit is retired. NSPI emphasizes the importance of assumptions around sustaining capital and fixed O&M costs in shaping the resource portfolio. NS Power agrees that careful planning and analysis are required for continued investment in the thermal coal fleet.

AVOIDED COSTS — METHODOLOGY FOR CAPACITY & ENERGY ALLOCATION CATEGORY ENERGY ALLOCATION CAPACITY ALLOCATION New Build - Capital Costs Non dispatchable renewables 1- marginal ELCC % Marginal ELCC % Battery/Storage 1- marginal ELCC % Margina...

AI summary The document outlines a methodology for allocating avoided costs between energy and capacity, using metrics such as Equivalent Load Carrying Capability (ELCC) and System Load Factor (LF). Different categories of resources, including renewables, storage, and transmission, are assigned varying percentages of energy and capacity allocation.

SUMMARY RESULTS- CAPACITY \ Escalating series reflects levelized avoided costs starting in 2021, escalating annually at the assumed inflation rate to create a nominal dollar profile

AI summary The summary results section on capacity includes figures illustrating escalating series of levelized avoided costs starting in 2021, escalating annually at the assumed inflation rate to create a nominal dollar profile. Visual representations are provided for reference.