N-52024-2025 Bates White FAM Audit Report - Redacted
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Figure III-10: Comparison of Forecast Budgets vs. Actual Supply by Resource (2025) (MWh) 127 Detail Actual FAM Budget Variance Variance (%) Generation Lingan 2,195,760.27 1,413,123.10 782,637.16 55.38% Tufts Cove 978,803.66 1,310,053.96 (3...
AI summary Figure III-10 compares forecast budgets with actual supply by resource for 2025, showing significant variances across different generation and purchased power sources. Some resources, like Lingan and Point Tupper, had large positive variances, while others, like Tufts Cove and Point Aconi, had negative variances. The total generation and purchases show small overall variances. The section also references Bates White's 2022-2023 audit recommendations.
Pictou County Bulk Carriers Inc - 20240225 Trucking Services Agreement." surcharge" was based on a variable rate.184 (As we explain below, NSPI would have to terminate this contract during its term.) To give a sense of the volumes of coal...
AI summary NSPI delivered 3,662 railcars of coal to Trenton in 2024, below the 2025 volume, due to operational and inventory constraints. After a broken-axle incident, NSPI terminated a contract due to unsatisfactory safety performance, having transported just under 9,000 tonnes of coal out of 80,000 tonnes contracted.
loaded at PTMT, railed to Trenton, and unloaded. NSPI indicated that "[o]nly minor issues were observed, requiring small modifications to car inspection and coal release protocols." NSPI and its contractors ( ), therefore, "anticipate[d] a...
AI summary NSPI transitioned to a full fleet of 60 aluminum railcars, scrapping remaining steel railcars and terminating a lease. The lease cost was based on a 36-month term, but the actual lease agreement was for five years with options for early termination. The mobilization cost did not match Progress' offer, and the trial period for the railcars was abbreviated.
Figure V-2: NSPI's Historical Approximate Winter Readiness Inventory Targets (Metric Tonnes) Inventory Location Circuit Amount Max Physical Storage International Pier Sydney 0 240,000 Lingan Sydney 385,000 500,000 Point Aconi Sydney 115,50...
AI summary Figure V-2 outlines NSPI's historical winter readiness inventory targets for various locations, showing the amount of inventory stored versus the maximum physical storage capacity. The data includes specific details about the Point Tupper Marine Terminal's operating limits and coal storage restrictions.
96,000 metric tonnes, consistent with a prior recommendation, but allowed capacity to reach as high as 120,000 metric tonnes if required and subject to the review and approval by the Director of ERM. Conclusion V-16: On October 6, 2025, th...
AI summary The text discusses a derailment on the Sydney Coal Railway, capital projects at the Transportation and Railway Maintenance Centre due to petroleum hydrocarbon releases, and inventory adjustments related to fuel inventory. These events are relevant to NSPI's coal supply chain and FAM processes.
requirement is %. As it relates to biomass fuel, the energy balance process assigns "costs" between PHP and NSPI by adjusting NSPI's inventory levels and assigning debits or credits on PHP's invoices. As an initial matter, NSPI has been fu...
AI summary The text discusses the energy balance process between PHP and NSPI, emphasizing its complexity and the need for agreement between the two parties for modifications. The Energy Balance Worksheet is not included in the Shared Services Agreement due to its technical nature, and the audit period results have been reviewed.
The TCPL and PNGTS Open Seasons In July and August of 2025, TCPL and PNGTS issued coordinating Open Seasons for new FT capacity on their respective systems.320 The TCPL open season invited prospective shippers to bid on up to MMBtu/day of...
AI summary In 2025, TCPL and PNGTS launched coordinated open seasons for new FT capacity. NSPI modeled the economic implications of this opportunity, considering factors like generation capacity, gas prices, and pipeline costs. The analysis concluded that the increased costs of additional pipeline capacity make bidding unwise, with future open seasons to be evaluated using updated assumptions.
X.B.2.a.i. Capacity Factor Figure X-4 provides the capacity factors for each thermal unit over the two years of the Audit Period, as well as the capacity factors of the diesel-fired combustion turbines and NSPI-owned renewable resources. C...
AI summary The text discusses the capacity factors of thermal units, diesel-fired combustion turbines, and NSPI-owned renewable resources over the Audit Period. It also introduces the Generator Availability Database System (GADS), which tracks the operating histories of large generating units in North America.
ntil June 2026. (2025 FAM Annual Report, tab A-10(9).) We round this value up to a potentially conservative value of 300 GWh/year. 479 Q4 2024 FAM Report, tab 1(3). 480 Q4 2025 FAM Report, tab 1(3). We understand that capital projects at t...
AI summary The text discusses the performance of NSPI's hydro projects, including Tusket Falls and Gaspereau, during the Audit Period. NSPI claims that delays in dam refurbishment did not impact generation as the hydroelectric generators remained operational. Performance data shows mixed results, with some projects underperforming relative to forecasts and fleet averages.
er, NSPI should confirm that no incremental FAM costs were incurred, and if they were, to refund those costs to customers, who should bear no costs associated with this event. (Recommendation X-3) Conclusion X-20: Lingan 2 was sustained th...
AI summary NSPI is advised to refund any incremental FAM costs incurred during the audit period. Lingan 2 is expected to remain operational until 2029/2030, a revision from NSPI's previous forecast. Point Aconi experienced multiple outages due to expansion joint failures linked to experimental coal blends, which may pose future challenges as emissions constraints increase.
XI.B.10.a. Unit Loading Levels and Start-up Costs NSPI's coal and gas-fired units achieve their lowest average cost when operated near maximum output. Operating fewer units at higher levels, when possible, can reduce costs to FAM customers...
AI summary NSPI's coal and gas-fired units operate most efficiently at maximum output. However, capacity factors for some units have decreased, potentially indicating inefficiencies. Data glitches were identified during the audit period, and the use of the new Economic Dispatch Optimization Solution may improve efficiency.
XI.B.10.b. Start-up and Cycling Costs Unit start-up and cycling costs in 2024 and 2025 are summarized in Figure XI-27. There are three cost categories for start-up costs depending upon whether the state of the unit is cold, warm, or hot. A...
AI summary The text discusses start-up and cycling costs for units in 2024 and 2025, categorizing them as cold, warm, or hot based on the duration the unit has been offline. Cold starts are significantly more expensive than hot starts and are factored into the PortOps unit commitment optimization process.
Figure XI-27: Start-up and cycling maintenance costs, 2024 and 2025 Unit Number of Start-Ups (Cold, Warm, Hot) Average cost per Total start-up start-up costs Total cycling and maintenance costs Total start-up and cycling and 2024 2025 main...
AI summary The text discusses start-up and cycling maintenance costs for various power units in 2024 and 2025. It highlights that frequent cycling of baseload units increases maintenance costs, and NSPI reports a significant reduction in these costs compared to the prior audit period.
Long-Term Purchases Figure XII-3 shows that COMFIT resources cost, on average, about $135.10/MWh during the Audit Period and can cost several hundred dollars per MWh depending on the type of COMFIT resource. As noted above, COMFIT rates ar...
AI summary The text discusses COMFIT resources, noting their average cost during the Audit Period and the fact that NSPI received slightly less than forecasted. It also mentions that COMFIT rates are set by the Nova Scotia Department of Energy and not subject to negotiation, and that no new COMFIT contracts were executed during the Audit Period.
Figure XII-3: Output, Cost of COMFIT Resources (by project) 602 Canacity l Total Cost Counterparty Location Capacity (MW) 2024 MWh 2025 MWh Cost (2024) Cost (2025) ($/MWh) Colchester-Cumberland Wind Field Spiddle Hill (Large Wind) COMFIT 0...
AI summary The table presents the output and cost of COMFIT resources by project, including capacity, energy production, and associated costs for various locations in Nova Scotia. It includes details for wind fields, municipalities, and other entities involved in the COMFIT program.
Figure XII-12: Supplemental Block Volumes (MWh) Contract Hourly Deliveries up to Make-Up Energy Total Supplemental Block Net Over/(Under) Cumulative Undelivered Month Volume (MWh) Contract (MWh) (MWh) Deliveries (MWh) Deliveries (MWh) Supp...
AI summary The document presents a table showing supplemental block volumes (MWh) for various months, including contract volumes, make-up energy, and cumulative undelivered amounts. The summary indicates that NSPI's accounting for these volumes was reviewed and found to be without concerns, with an hourly tracker used to reconcile deliveries against contractual obligations.
Our third recommendation read: Recommendation XII-3: NSPI should continue its efforts to accurately value the missing and makeup NS Block energy volumes. NSPI should maintain its existing reporting to the Board but should enhance that repo...
AI summary The third recommendation urges NSPI to continue valuing missing and makeup NS Block energy volumes using the Hourly Replacement Method and enhance reporting. NSPI accepted the recommendation and plans to complete the valuation for Bates White review. The fourth recommendation suggests NSPI consider the long-term capacity value of undelivered NS Block energy from NLH, conservatively estimated at the carrying cost of Lingan 2.
XIII.B.1.c.i. 2024 (First Quarter) Period in the discussion below. NSPI completed its quarterly rebalance for the first quarter of 2024 in March. NSPI's forecast of EAA Surplus Energy was limited to approximately GWh in 2024, and between a...
AI summary NSPI completed its first quarter 2024 rebalance, adjusting its forecast of EAA Surplus Energy and incorporating PHP's load into its 2026 hedging decisions. Uncertainty around full rating tests and software updates influenced the reduced forecast. NSPI also purchased power hedges for 2026 and updated its load forecast, leading to changes in fuel exposure and expected imports.
XIII.B.1.c.iii. 2024 (Third Quarter) Entering the Audit Period, NSPI was in the midst of a two-year sulfur emissions compliance period, which limited NSPI's total SO2 emissions to 31.6 kt in 2024. In November 2023, NSPI implemented a compl...
AI summary NSPI faced challenges in complying with sulfur emissions limits in 2024 and implemented a compliance buffer. It also adjusted its load and surplus energy forecasts, leading to a portfolio rebalancing. NSPI increased its compliance buffer to 6 kt in 2025 and 2026 due to forecast changes and uncertainty around LIL maintenance.
VCC NSPI forecasts the Variable Capital Charge annually by comparing NSPI's generation fleet dispatch with and without PHP on the system, and determining the change in required sustaining capital. The comparison and calculations are done p...
AI summary NSPI calculates the Variable Capital Charge (VCC) annually by comparing its generation fleet's dispatch with and without PHP on the system, using a utilization factor. The VCC for 2020 through 2025 is presented in Figure XV-2, with the 2023 VCC increased to $3.00/MWh on June 7, 2023.
Figure XV-2: Variable Capital Charge, $/MWh824 Tariff Period VCC 2020 $1.13 2021 $1.79 January 1 2022 - June 6 2023 $1.81 ELIADC June 7 2023 - February 29 2024 $3.00 March 1 2024 - January 31 2025 $4.64 February 1 2025 - December 31 2025 $...
AI summary Figure XV-2 outlines the Variable Capital Charge (VCC) over different periods, showing an increase from $1.13 in 2020 to $4.64 in March 2024. The VCC increase is attributed to sustaining capital costs for various power plants, with a total estimated increase of $4,725,384. The cost per MWh for PHP's load was initially estimated at $5.81 but was later revised to $4.64, leading to total VOC costs of $3,380,089.
due to the inability of the PortOps model to converge, - iii. Calculation of costs/benefits would be highly dependent on assumptions, if load rebalancing post deviation is required for the analysis, - iv. Costs associated with the initial...
AI summary The document discusses challenges in calculating costs and benefits related to load rebalancing and dispatch decisions due to limitations in the PortOps model and lack of logged deviation data. It also highlights the inability to quantify load shifting benefits for real-time ADC and the potential for net costs from real-time load deviations.