4.3 Residential Time-of-Day Most of the energy usage in this class is consumed during the off-peak period, and the rate is designed to encourage this behaviour. Comparing the average annual unit revenue to the average annual marginal cost is not meaningful for specific Time-of-Day (TOD) periods, since the average marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods. To make the test meaningful, individual TOD rates are compared to average marginal costs calculated for the hours in which the TOD rates are in effect. The TOD rate has passed the test under all three pricing periods. 4.4 Time-Varying Pricing The TVP Pilot Program offers two types of tariffs: CPP and TOU tariffs, available to a limited number of eligible customers in the Domestic Service, Small General, and General Classes.[16](#page-22-2) The rates in these tariffs are designed to encourage customers to shift energy consumption from peak to off-peak hours when the cost of electricity is lower and to reduce peak load thereby reducing upward pressure on system capacity. The TVP tariffs were approved for use to a limited number of customers on June 22, 2021, as a pilot program beginning November 1, 2021. The SRMC test for these classes was conducted for the first time in the 2022 Report. The Multi-Unit Residential Building Time-Of-Use (MURB TOU) available to General Class customers was approved effective November 1, 2024. The SRMC test for the MURB TOU class is conducted for the first time in the 2025 Report. As is the case with the TOD rate, comparing the average annual unit revenue to average marginal cost is not meaningful for specific time-varying periods, since the average annual marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods.
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ustomer's generation is shut down for scheduled maintenance, forced outage or loss of fuel supply. The service is priced at NS Power's incremental cost of generation at the hour the energy is required DATE FILED: May 29, 2026 Page 24 of 26
AI summary The text outlines that during customer generation outages (scheduled maintenance, forced outages, or fuel loss), service is priced at NS Power's incremental generation cost at the hour energy is required. This pricing mechanism directly ties costs to real-time generation expenses during service interruptions.