Topic:"Capacity Costs" in M11927

Document No: Please request from IM Hydropower Project Cost Estimate Input Checklist and Maturity Matrix Required fields: Estimate Classification Project Name: HYD Ruth Falls Main Dam Refurbishment Maturity Level of Project Definition Deli...

AI summary This document outlines a checklist and maturity matrix for estimating the cost of the HYD Ruth Falls Main Dam Refurbishment project, including project scope, location, requirements, technology selection, and planning considerations.

CI 50518 CA IR-5 Attachment 19 Page 174 of 423 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 3 # Indicators Condition Choices Data Definitions/Explanations Protection and off road vehicles appear to effectively exclude or divert visitors and...

AI summary The text outlines various indicators and condition choices related to environmental protection, consumptive uses, domestic wells, and calcareous fen within a specific area. It includes data on wildlife disturbance, sustainable consumptive uses, proximity of domestic wells, and calcareous fen identification.

18 Description Increase in costs (in Thousands) Offsetting (West River Project) $547 Post-Construction monitoring $309 Fish passage improvements design $192 Fish count $122 Juvenile Gaspereau Entrainment Study $120 3D Hydraulic modelling $...

AI summary The text lists various cost increases related to the Ruth Falls Main Dam Refurbishment project, including fish passage improvements, monitoring plans, and design work. It references a specific regulatory proceeding (CI 50518 - HYD - NSUARB M11927) and mentions responses to information requests from The Consumer Advocate.

REDACTED Environmental Permitting Application fees Environmental maintenance flow assessment $1 Wetland delineation and functional assessment -$1 RFP support by the external Engineering Consultant -$6 KMKNO Capacity payments 1 TOTAL 0F $1,...

AI summary The text includes a table showing environmental permitting application fees and a line item for KMKNO Capacity payments totaling $1,631. Other items include environmental assessments and a payment to an external engineering consultant.

2 Please note that costs associated with KMKNO Capacity Payments were initially budgeted 3 and added to the "Consulting" section of the Original Application, rather than captured in 4 a dedicated "Mi'kmaq Engagement" section of the ATO App...

AI summary The text discusses the budgeting of consulting costs related to KMKNO Capacity Payments and Mi'kmaq Engagement, as well as the offsetting program managed by a third-party consultant for fish habitat restoration on behalf of NS Power.

CI 50518 - HYD - Ruth Falls Main Dam Refurbishment ATO (NSUARB M11927) NSPI Responses to The Consumer Advocate Information Requests 1 However, NS Power does not expect this high end estimate to be required by DFO and, as 2 such, the Compan...

AI summary NS Power estimated a budget of $500,000 for offsetting the environmental impact of the Ruth Falls Main Dam Refurbishment Project, based on feedback from DFO. An additional $500,000 was included as a contingency for potential additional offsetting requirements during the regulatory review and Crown consultation process.

CONCEPTUAL LEVEL - OPINION OF PROBABLE CONSTRUCTION COST ASSUMES (2) 7 MONTH CONSTRUCTION SEASONS (COST IN $2017) ITEM# ITEM DESCRIPTION QUANTITY UNIT PRICE ($) UNIT TOTAL ($) TOTAL ($) A. GENERAL $ 1,065,000 1 MOBILIZATION/DEMOBILIZATION...

AI summary The document presents a conceptual-level estimate of construction costs for a project, assuming a 7-month construction season with costs in 2017 dollars. It includes line items for mobilization, environmental protection, site access, crane operations, dewatering, cofferdam construction, gate modifications, and spillway modifications.

Pre – Offset Table 2 Year 1 (2022) Budget Category Description Amount Salaries and Wages (the CMM) Project Manager (70 hrs @ $80/hr = $ 5,600) Field technicians (3 x technicians for 21 hrs @ $45/hr = $2,835) $8,435.00 Training Environmenta...

AI summary The document outlines the Year 1 (2022) budget for a project managed by the Community Management Corporation (CMM), including expenses for salaries, training, travel, professional services, and administrative costs, totaling approximately $21,520.59.

Table 8: Ruth Falls Archaeological Costs[37](#page-24-2) Description UARB Approved Original Submission ATO Submission Variance Archaeological Reconnaissance and Mitigation for Dewatering of Ruth Falls Reservoir in 2025-2026: To complete ar...

AI summary Table 8 outlines the archaeological costs associated with the Ruth Falls Reservoir project, including reconnaissance, security, and historical analysis. The table shows approved submissions, ATO submissions, and variances between them, with total costs amounting to approximately $248,105.

- 4 Two submitted applications (the original Gaspereau and Tusket applications) in which refurbishment 5 or remediation of a dam was associated with archaeological costs on the order of $150,000 - 6 $200,000. - 7 Was likely well into its p...

AI summary The text refers to two applications involving the refurbishment or remediation of dams (Gaspereau and Tusket) where archaeological costs were estimated between $150,000 and $200,000. These costs were later significantly increased in the ATO applications.

13 4.2.3 Conclusion - 14 Midgard concludes that the "Additional KMKNO Capacity Payments" increased costs are reasonable, as NS - 15 Power was required to continue consultation with KMKNO as the Project changed. 43 M11927, Exhibit N-3(C), C...

AI summary Midgard concludes that the Additional KMKNO Capacity Payments are reasonable due to ongoing consultation with KMKNO as the Project changed. It also notes that while NS Power may have underestimated archaeological costs, including Mi'kmaq observer costs, these were unlikely to have significantly impacted the original decision.

5.1.1 NS Power Submission - The Project involves the refurbishment of the Ruth Falls Main Dam's water-retaining structures, with five - alternatives reviewed during the conceptual design phase: [45](#page-29-1) - 1. Option 1: Replace the e...

AI summary NS Power submitted a proposal for the refurbishment of the Ruth Falls Main Dam, presenting five design alternatives. Option 4 was selected due to its cost-effectiveness. NS Power argues that re-evaluation of the options was unnecessary because all would be similarly impacted by delays in the Fisheries Act Authorization and environmental permitting.

5.2.4 Analysis – Geotechnical Issues - Geotechnical issues have only been explored in limited fashion thus far on the project. NS Power has not yet - completed a detailed geotechnical investigation at the Project site: - "NS Power has not...

AI summary Geotechnical issues at the Project site have not been thoroughly investigated, raising concerns about potential cost overruns similar to those experienced on the Tusket Falls project. NS Power proceeded with detailed design based on conceptual reviews, but this remains a risk area.

6.2.2 Scope Increases - Overall Midgard concludes that the cost increases due to scope change are reasonable. Fish passage - modifications and additions are the result of DFO requirements, and therefore out of NS Power control. This - acco...

AI summary Midgard concludes that cost increases from scope changes are reasonable, primarily due to DFO requirements for fish passage modifications, which are outside NS Power's control.

PRELIMINARY ENGINEERING & PROJECT DEVELOPMENT - § Design of preliminary project layouts evaluating for energy potential, capital cost, permitability, & constructability. - § Financial feasibility analysis. - § Project permitting and enviro...

AI summary The section outlines the preliminary engineering and project development process, including project layout design, financial feasibility analysis, permitting, environmental certificates, and preparation of tender documents and specifications.

REASON FOR VARIANCE: ENVIRONMENTAL PERMITTING REQUIREMENTS In the ATO Application, NS Power cites "Environmental Permitting Requirements" as one of three reasons for variance, stating: "Additional project costs of approximately $4.4 millio...

AI summary NS Power cites environmental permitting requirements as a reason for a $4.4 million cost variance, citing additional work needed to obtain permits from DFO, NSECC, and Transport Canada for the Ruth Falls Reservoir project. Midgard evaluates this reason for variance.

4.2.1 NS Power Submission - NS Power states that these costs are: - "…required to cover additional monthly KMKNO capacity payments as a result of the project's extended timeline and service of the Mi'kmaq observer as a result of evolving e...

AI summary NS Power outlines that additional costs are necessary to cover extended KMKNO capacity payments and the service of the Mi'kmaq observer due to evolving expectations related to the project timeline.

- NS Power's IR response also provides reasons, by year, for the overages. The regular and term labour - variances are primarily attributed to efforts associated with managing permitting and associated project - activities: [49](#page-28-6...

AI summary NS Power's IR response outlines reasons for labour overages, including managing permitting activities with agencies like DFO, contract work, and environmental studies. Regular and term labour variances are attributed to project execution and compliance activities, while overtime labour is noted as not material to the overall conclusion.

2 5.2.2 Analysis – Additional Scope - 3 NS Power attributes $667k of costs to new scope, in the form of fish passage upgrades. This amount appears - 4 reasonable, and the DFO requirement for these upgrades is well documented.

AI summary NS Power has attributed $667k in costs to new scope, specifically for fish passage upgrades, which are deemed reasonable and well-documented by DFO requirements.

Table 14: 2019 ACE Costs – Contracts[53](#page-33-1) Description Total Estimate ($) Contractor Costs (Mob/Demob, etc.) XXXXXXXX Environmental Controls XXXXXXX Site Access (Roads, Laydown Areas, XXXXXXXX Staging, etc.) Crane Rental and Oper...

AI summary Table 14 outlines the 2019 ACE Costs – Contracts, detailing various contractor and construction-related expenses, including environmental controls, site access, and infrastructure upgrades. The total estimated cost is listed as $3,652,031.

Table 15: ATO Application Costs – Contracts[54](#page-34-1) Description Total Estimate ($) General Contract - LNTP $1,136,916 Mobilization / Demobilization $125,000 Environmental Management $25,000 Water Controls $60,000 Concrete Works $1,...

AI summary Table 15 presents the estimated costs for various contracts related to the ATO application, including items like general contracts, environmental management, construction supervision, and upgrades to fishway systems. The total estimated cost is approximately $6.25 million.

Table 17: Contracting Cost Increase Breakdown[55](#page-35-2) Description New Scope Items ($k) Fish Passage upgrades $1,630 Limited Notice to Proceed $331 Construction supervision $241 Security services during archaeological mitigation $13...

AI summary Table 17 provides a breakdown of contracting cost increases, including items such as fish passage upgrades and archaeological mitigation. A discrepancy is noted between the ATO Application and IR responses, with Midgard relying on the ATO Application value for consistency.

2 1. Fish Passage Upgrades ($1,630,000): Updated environmental permit requirements, including design, 3 construction, and installation 4 2. Construction Supervision ($241,000): Extended timeline and project execution delays 5 3. Security S...

AI summary The document outlines increased contracting costs for a project due to expanded scope items, including fish passage upgrades, construction supervision, and security services. These increases are attributed to changes in design, environmental permit requirements, and compliance with regulations. NS Power attempted to minimize costs through a Limited Notice to Proceed (LNTP), but this resulted in additional expenses.

PRELIMINARY ENGINEERING & PROJECT DEVELOPMENT - § Design of preliminary project layouts evaluating for energy potential, capital cost, permitability, & constructability. - § Financial feasibility analysis. - § Project permitting and enviro...

AI summary The text outlines the preliminary engineering and project development process, including project layout design, financial feasibility analysis, permitting, environmental certificates, and preparation of tender documents and specifications.

CI 50518 – HYD Ruth Falls Main Dam Refurbishment - $15,445,508 (ATO) (NSUARB M10632) Midgard Consulting Inc. Responses to Industrial Group Information Requests 1 Request IR-4: 11 Midgard's report? 12 (d) Please provide a copy of any notes...

AI summary Midgard Consulting Inc. responded to information requests regarding the site visit for the Ruth Falls Main Dam refurbishment project. The visit aimed to understand project conditions and clarify NS Power's positions on the ATO application and ACE timeline. Photos and evidence were provided as part of the response.

NON-CONFIDENTIAL 1 2 drawdown, the duration of the drawdown, and an average cost of $25/m 2 of offsetting to impact area using other NS Power projects which have undergone offsetting. 3 4 5 However, NS Power does not expect this high end e...

AI summary NS Power estimates the cost of compensatory fish habitat offsetting at 20,000 m², based on past experience and feedback from DFO. Midgard supports this estimate as reasonable, aligning with DFO recommendations and similar projects. However, there is uncertainty about whether this estimate will be sufficient if higher offsetting requirements are mandated.

- Response IR-31: - a) Midgard considers NS Power's July 2025 start time reasonable, despite the reported six-month FAA - delay. As noted in Midgard's response to IR-11(b), NS Power's phased approach mitigates evolving - DFO requirements,...

AI summary Midgard finds the July 2025 start time for NS Power's project reasonable despite a six-month FAA delay, noting a phased approach helps manage evolving DFO requirements. However, Midgard expresses concerns about potential delays, environmental offsetting costs, and the possibility of significant cost overruns, citing historical examples like Tusket and Gaspereau.

Figure 1: Breakdown of Additional Scope Items Description Comments Additional scope items: New Permitt ing Requirements Fish passage upgrades In 2022, new scope was required as a condition of permit approval. In the ATO submission, costs w...

AI summary The document details additional scope items related to a project, including fish passage upgrades, extended construction timelines, and new requirements identified after the original filing, such as the procurement of a propane-fueled generator for backup power. Costs and allocations are discussed in relation to ATO submissions and UARB filings.

CI 50518 – HYD – Ruth Falls Main Dam Refurbishment ATO – Reply Evidence Redacted 1 previous archaeology completed on the Sheet Harbour Hydro System, a low density of submerged 2 archaeological sites were identified. 3 4 The Wright's Dam Re...

AI summary The document discusses the archaeological costs associated with the Ruth Falls Main Dam Refurbishment ATO, noting that these costs were necessary to put the asset into service and were not unreasonable. It highlights collaboration with the Mi'kmaq of Nova Scotia and lessons learned from previous projects.

CI 50518 – HYD – Ruth Falls Main Dam Refurbishment ATO – Reply Evidence Redacted 1 2022 dollars. Please refer to Appendix A for a detailed breakdown of the costs associated with the 2 removal of the Ruth Falls Main Dam and Powerhouse. 3 4...

AI summary The document outlines the costs associated with the removal of the Ruth Falls Main Dam and Powerhouse, including environmental assessment, permitting, sediment management, and archaeological reconnaissance. These costs are based on the 2022 Tusket Decommissioning Cost Estimate report and are detailed in Appendix A.

10. Mi'kmaq Engagement Item Current Execution Cost Source of costs / Assumptions Sipekne'katik First Nation capacity payments Costs for 2026-2031 First Nation monitors / security during Costs for 2029-2033 archaeological reconnaissance C03...

AI summary The document outlines various financial and administrative costs associated with the Mi'kmaq engagement, contingency reserves, and administrative overheads. It includes specific items such as capacity payments to First Nations, contingency and management reserves derived from simulations, and historical overhead costs related to engineering work for dam redevelopment.

1.1 Project Background [5] In 2015, NS Power engaged Kleinschmidt as a consultant to assess the design adequacy of NS Power's Sheet Harbour Hydro System's water retaining structures. The assessment evaluated the structures' stability under...

AI summary In 2015, NS Power commissioned Kleinschmidt to assess the Sheet Harbour Hydro System's water retaining structures, which led to a 2019 ACE Plan approval for a project addressing deficiencies in the Ruth Falls Dam. The current ATO application requests an increase from the originally approved amount due to increased environmental permitting, extended timelines, and archaeology and Mi'kmaq engagement costs.

2.0 EVIDENCE AND SUBMISSIONS [8] One of the three primary reasons identified by NS Power in the ATO application for the project cost variance is related to additional environmental permitting requirements. Out of the total $8.2 million ATO...

AI summary NS Power's ATO application includes a request for additional funds due to environmental permitting requirements, particularly related to the Ruth Falls Reservoir project. The changes to the Fisheries Act in 2018 necessitated obtaining a Fisheries Act Authorization (FAA). The project's cost was submitted for Board approval in 2019, even though permits had not yet been obtained, as this is a common practice during the preliminary design phase.

3.3 Approval of Refurbishment Project Costs [67] The Board recognizes that the current ATO application represents a significant cost increase compared to the original Board-approved project cost. However, Midgard concluded that project cos...

AI summary The Board acknowledges a significant cost increase in the ATO application for the refurbishment project but finds that increases related to environmental permitting and the FAA are reasonable. However, Midgard highlights ongoing risks related to environmental, archaeological, and geotechnical costs that could exceed the contingency allocation.

Request IR-5: In response to NSUARB IR-65d) in the 2019 ACE Plan Proceeding (M08994), NS Power stated: The new structure will be constructed on the footprint of the existing structure with only a small extension of the footprint on the dow...

AI summary NS Power provided details about the construction of a new structure on an existing dam, including a small downstream extension. The request seeks confirmation of this information and clarification if there have been any changes or associated costs.

Although the costs of the Project have increased since receiving Board approval, the primary justification of the Project remains the same: refurbishment of the Ruth Falls Main Dam water-retaining structures (embankments, spillway and slui...

AI summary The text discusses the increased costs of a dam refurbishment project and requests clarification on the justification for the project, the consideration of alternative options such as selling or decommissioning the asset, and the calculation of additional contingency costs related to potential offsetting costs from DFO.

- 28 (f) How are offsetting measurements usually determined on hydro projects 29 such as this? (g) Has Midgard considered the DFO's concerns with respect to "high 7 8 (d) If there are additional delays in receiving the FAA, would this furt...

AI summary The text includes questions about offsetting measurements on hydro projects, concerns from the Department of Fisheries and Oceans (DFO), potential delays in receiving the Federal Assessment Agreement (FAA), and the reasonableness of refurbishment costs. It also references a request for information (IR-32) and a specific page reference.

2.0 EVIDENCE AND SUBMISSIONS [8] One of the three primary reasons identified by NS Power in the ATO application for the project cost variance is related to additional environmental permitting requirements. Out of the total $8.2 million ATO...

AI summary NS Power attributed part of its ATO request to additional environmental permitting requirements, including a Fisheries Act Authorization. Bill C-68, passed in 2019, required these permits. NS Power submitted the project cost for approval in 2019 before obtaining necessary permits, a common practice during the preliminary design phase.

3.3 Approval of Refurbishment Project Costs [67] The Board recognizes that the current ATO application represents a significant cost increase compared to the original Board-approved project cost. However, Midgard concluded that project cos...

AI summary The Board acknowledges a significant cost increase in the ATO application for the refurbishment project but accepts that increases related to environmental permitting and the FAA are reasonable. However, risks such as environmental compensation, archaeological, and geotechnical costs remain, which could add millions to the project cost beyond the allocated contingency.

3.2 Midgard Analysis - Review of NS Power's submissions as part of the ATO and its recent letter shows that Project costs have been

AI summary The Midgard Analysis section reviews NS Power's submissions related to the Authorization To Overspend (ATO) and a recent letter, focusing on project costs.

- has an NPV that is approximately $50.4 M greater than the decommissioning alternative: Alternative After Tax WACC PV of Revenue Requirement PV of EVA / NPV Rank (based on PV of RR) IRR Disc Pay Α Dam Refurbishment 5.81% -21,926,086 12,51...

AI summary The text presents a comparison of two alternatives—Dam Refurbishment and Partial Decommissioning—based on financial metrics such as NPV, IRR, and discount payback period. The Dam Refurbishment alternative has a significantly higher NPV compared to the decommissioning option, which is highlighted as a key consideration in the analysis.

- alternative capital costs and the costs of replacement energy as follows: Replacement Energy Cost Adjustment Decommissioning Alternative Capital Cost Adjustment No Change $50.4 M -50% No Change $30.6 M No Change -75% $22.0 M -50% -75% $2...

AI summary The text presents scenarios for alternative capital costs and replacement energy costs, including extreme decreases of 50% and 75%, with corresponding monetary impacts ranging from $2.2M to $50.4M. These scenarios are used to model potential changes in costs.

Fisheries Act Authorization Midgard indicates that the issuance of an FAA for the Ruth Falls project removes a significant area of risk to the project and has reduced the estimated cost to complete the project. Midgard also indicates that...

AI summary Midgard indicates that the issuance of an FAA for the Ruth Falls project reduces risk and cost, but also notes that external factors could affect the project's timeline. Deferring construction would introduce additional costs and not mitigate the challenges of the construction window.

Economic Analysis Results Midgard indicatesthat its review of the EAM suggests the outcome is reasonable, given the inputs. Midgard also indicates that it completed a sensitivity analysis where it made extreme adjustments to the decommissi...

AI summary Midgard's economic analysis of the EAM concludes that the outcome is reasonable, and sensitivity analysis shows that refurbishment remains the preferred option even with extreme adjustments to decommissioning and replacement energy costs.

REDACTED Ruth Falls Main Dam Refurbishment Contingency Report 1 Appendix A Page 1 of 2 REDACTED (CONFIDENTIAL INFORMATION REMOVED) NSEB Approved Contingency/ Unbudgeted Spend Additional travel costs incurred during community engagement ses...

AI summary The contingency report outlines additional costs for the Ruth Falls Main Dam refurbishment, including travel, materials, and contractor labour. These costs are due to community engagement, site visits, and adjustments needed for the rubber dam system. The report also mentions water supply challenges and deferral costs.

REDACTED Ruth Falls Main Dam Refurbishment Contingency Report 2 Appendix A Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Account NSEB Approved Amount Spend-to-Date Contingency/ Unbudgeted Spend-to-Date Comments Freight/Postage/De...

AI summary The document outlines contingency and unbudgeted spending for the Ruth Falls Main Dam Refurbishment project, including freight, consulting, legal, and meal expenses. It details additional costs incurred due to unforeseen circumstances and adjustments in cost codes.