Topic:"Capital Expenditures" in M03088

An Emera Company UARB APPRO VAL SHEET Project Title: Work V ehicle Replacemer nt 52 Capital Project A Authorization Head Office Use: □ ато Project Number: Final Cost Date: April 30, 201 0 , Location: Division: Location. Expenditure Profile...

AI summary This document outlines the Work Vehicle Replacement Project by Nova Scotia Power Incorporated, with a total estimated cost of $6,101,516. The project is expected to start and be completed in 2010. The document includes authorization and approval details, with Mark Savory and Tom as signatories.

Cost Centre 863 - 863-Vehicle Services Budget Version - 2010 04/08 Forecast Forecast Start 10/01/2010 Operational 12/01/2010 Final Cost 12/12/2010 2010 $6,064,000.28 Total: $6,064,000.28 Original Cost: $4,653,000.00 This capital project pr...

AI summary The document outlines the budget forecast for Cost Centre 863-Vehicle Services for 2010, including the purchase of 26 work vehicles, associated costs, and the salvage value of retired trucks. The forecasted total cost is $6,064,000.28, with an original cost of $4,653,000.00.

Cost Centre 863 863-Vehicle SelVices Budget Version 2010 04/08 Forecast Capital Item Accounts Acct Actv Account Activity Forecast Amount Amount Variance 092 092-Vehicle T&D Reg. Labour AO 1,306 0 1,306 095 095-COPS Regular Labour AO 4,510...

AI summary This document outlines the budget forecast for Cost Centre 863-Vehicle Services, including various accounts related to labor, materials, and salvage, with detailed forecasts and variances for the year 2010.

Why do this project? This project is required to maintain NSPI's service levels. The vehicles being replaced exceed NSPI's capital justification criteria as it pertains to vehicle replacement.

AI summary This project is necessary to maintain NSPI's service levels, as the vehicles being replaced no longer meet NSPI's capital justification criteria for vehicle replacement.

Why do this project this way? The life cycle costing model concludes that these vehicles should be replaced rather than carry out extensive repairs to keep them operational. CI Number 38852 Work Vehicle Replacement Project Number Parent CI...

AI summary The document discusses the replacement of work vehicles based on a life cycle costing model, citing a CI number and project details. The variance in costs is attributed to a revised budget since ACE 2010.

NSPI - 2010 Annual Capital Expenditure Plan (2010-2014) - P-128.09 NSPI Responses to DARB Information Requests

AI summary This document outlines NSPI's 2010 Annual Capital Expenditure Plan covering the years 2010 to 2014, in response to DARB information requests. It includes details on capital items and other related expenditures.

REDACTED 1 General Plant Responses 2 3 Request IR-GP14: 4 5 With respect to page 253, CI# 38852, Work Vehicle Replacement, 6 7 _ a) Please provide the average number and the average age of vehicles of this type in 8 service for each year f...

AI summary The document contains an information request related to the replacement of work vehicles, asking for details such as the average number and age of vehicles in service, operating and maintenance costs, justification for the replacement program, and details of vehicles to be purchased and retired.

1 Response IR-GPI4: (cont'd) 2 3 The 2010 contract cost to purchase these work vehicles is confidential. Suppliers seek to 4 keep the terms and conditions of their supply arrangements confidential from their other 5 customers or potential...

AI summary The text discusses the confidentiality of supplier contracts for work vehicles, arguing that disclosure would harm suppliers, NSPI, and customers by compromising competitive advantage and potentially reducing the ability to secure favorable terms.

REDACTED 1 Response IR-GP14: (cont'd) 2 3 f) NSPI has alliances with two aerial manufacturers, Altec Industries and Time Manufacturing 4 for standardized equipment that meets NSPI's operational needs. The costing methodology 5 is cost plus...

AI summary NSPI has alliances with aerial manufacturers Altec Industries and Time Manufacturing for standardized equipment, using a cost-plus methodology with set manufacturer markup. NSPI also has a legal alliance with Altec Industries for refurbishing and reselling used equipment, which exonerates liability from future liabilities.

FEBRUARY 16/2005 VEHICLE NO. DESCRIPTION IN-SERVICI DATE ELOMETER ORIGINAL COST 15% SALVAGE VALUE NET SALE ACCT. 1996 INTL 2674 3176 CHASSIS 1995 PROTEK PTV 1688 BODY 1995 TEL 9247 DIG DERR 200700 0 8910 $99,507.93 $24,385.90 $96,031.78 $1...

AI summary The document presents a table detailing vehicle information, including vehicle numbers, descriptions, in-service dates, costs, salvage values, and accounting details. It includes data for various vehicles, their associated costs, and financial information related to their sale and accounting entries.

NON-CONFIDENTIAL 1 Request IR-2: 2 3 This project was identified on page 254 of the 2010 ACE Plan for the amount of $3,446,332. 4 NSPl's request is asking for approval of $1,723,031 to cover the purchase of 64 5 transportation vehicles. NS...

AI summary NSPI requested approval for $1,723,031 to purchase 64 transportation vehicles, noting a variance due to the project being one year instead of two. The variance represents the 2011 vehicle purchase budget, which will be funded through a new routine.

9 2007 2008 2009 Vehicle Class Number Purchased Cost ($) Number Purchased Cost ($) Number Purchased Cost ($) Transportation Vehicles 65 1,473,142.30 76 1,609,073.00 19 442,458.00 Leased Work Vehicles 0 0 19 3,645,701.60 16 Only Class 3 Lig...

AI summary The text provides a table outlining the number of vehicles purchased and their associated costs for different years and vehicle classes, including transportation vehicles, work vehicles, and light work vehicles.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 According to the information provided, 16 work vehicles had been purchased in 2009: 4 5 (a) Please explain the meaning of "Leased Only", found under the column "Cost ($)". 6 7 (b) There is no cost assig...

AI summary The document addresses an information request regarding the purchase of 16 work vehicles by NSPI in 2009. It explains that the vehicles were obtained through a capital lease rather than a purchase, and no purchase price was assigned. The cost of the lease was $3,536,236.19.

9 2007 2008 2009 Number Cost Number Cost Number Vehicle Class Purchased ($) Purchased ($) Purchased Cost Transportation Vehicles 65 1,393,378.71 76 1,566,484.93 25 710,914.24 Work Vehicles 0 0 19 3,536,230.59 0 0 Class 3 Light Work Vehicle...

AI summary The document presents a table showing the number and cost of vehicles purchased by Nova Scotia Power Inc. (NSPI) from 2007 to 2009, categorized into transportation vehicles and work vehicles, including Class 3 Light Work Vehicles.

September 28, 2010 Nancy McNeil Clerk of the Board Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor P.O. Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: NSPI - Responses to Information Requests (IRs -3 rd Set) - P - 128....

AI summary The document discusses the confidentiality of commercial terms related to a work vehicle replacement project by NSPI, emphasizing the need to protect pricing details to prevent competitive disadvantages and higher costs for customers.

REDACTED 1 Request IR-4: 2 3 On November 21, 2007 the Board approved NSPI's request for the planned purchase of 31 4 work vehicles. According to the response to IR-1, filed on August 10, 2010,16 of these 5 vehicles were obtained through a...

AI summary NSPI requested approval to purchase 31 work vehicles, with 16 obtained via a capital lease from ARI Fleet Management. The decision to lease was based on cash flow considerations, and a cost-benefit analysis was not conducted.

REDACTED 1 Request IR-8: 2 3 The current capital expenditure request covers the cost for the purchase of 26 work 4 vehicles: 5 6 (a) Please explain the decision to purchase, and not to lease these vehicles. 7 8 (b) Please provide a cost be...

AI summary The response to IR-8 explains that purchasing 26 work vehicles is the least cost option compared to leasing, with a cost-benefit comparison provided in a confidential attachment.

By E-mail and Courier Ms. Lee Thomson-Lutz Manager, Capital Nova Scotia Power Inc. 14 th Floor, Barrington Tower Halifax, NS B3J 2W5 Dear Ms. Thomson-Lutz: NSPI Request for Approval of 2010 ACE Plan Work Order Greater Than $1 Million: CI #...

AI summary Nova Scotia Power Inc. (NSPI) requested approval for a $6,064,000 work vehicle replacement under the 2010 ACE Plan. The Board approved the request but expressed concerns about the quality of information submitted and directed NSPI to explain the delay in vehicle purchases and leasing decisions due to cash flow issues.

Nova Scotia Utility and Review Board Mailing address PO Box 1692, Unit "M" Halifax, Nova Scotia B3J 353 [email protected] Web www.nsuarb.ca Office 3rd Floor 1601 Lower Water Street Halifax, Nova Scotia B3J 3P6 902 424-4448 t 902 424-391...

AI summary The Nova Scotia Utility and Review Board is requesting detailed information from Nova Scotia Power Inc. regarding its decision to lease rather than purchase 16 work vehicles, the terms of the lease, and a cost-benefit analysis of the alternatives. The Board also seeks clarification on the reduction in the number of vehicles planned for purchase due to changes in the North American automobile industry and uncertainty from the truck supplier.

1 IR 6 In the response to IR-3, as it relates to transportation vehicles, NSPI also states: At this time, NSPI's supplier of trucks was uncertain if they would be manufacturing trucks in the future. In its response to IR-GP15, filed on Mar...

AI summary The document contains inquiries from the Nova Scotia Utility and Review Board regarding NSPI's transportation vehicle procurement, including its alliance with Ford Canada, reevaluation of vehicle purchases, and capital expenditure decisions. Responses are requested by September 28, 2010.

Nova Scotia Utility and Review Board Mailing address PO Box 1692, Unit "M" Halifax, Nova Scotia B3J 3S3 [email protected] Web www.nsuarb.ca Office 3rd Floor 1601 Lower Water Street Halifax, Nova Scotia B3J 3P6 902424-4448 t 902 424-3919...

AI summary The Nova Scotia Utility and Review Board is requesting clarification from Nova Scotia Power Inc. regarding discrepancies in the reported costs and numbers of work vehicles purchased in 2009, including the meaning of 'Leased Only' and the difference between forecasted and actual figures.

By E-mail and Courier Ms. Lee Thomson-Lutz Manager, Capital Nova Scotia Power Inc. 14 th Floor, Barrington Tower Halifax, NS B3J 2W5 Dear Ms. Thomson-Lutz: NSPI Request for Approval of 2010 ACE Plan Work Order Greater Than $1 Million: CI #...

AI summary Nova Scotia Power Inc. (NSPI) requested approval for a $6,064,000 work vehicle replacement under the 2010 ACE Plan. The Board approved the request but expressed concerns about NSPI's past filings and the justification for leasing vehicles in 2009 due to cash flow issues. NSPI was directed to provide a detailed explanation by November 12, 2010.

Work Vehicles Board Approval Year 2007 Forecast # of Vehicles Cost per Unit 2008 $3,598,950 16 $224,934 2009 $3,341,589 15 $222,773 $6,940,539 - Actual Year Actuals # of Vehicles Cost per Unit 2007 ($11,500) 2008 $3,536,231 19 $186,117 200...

AI summary The document outlines the forecast and actual expenditures for the purchase and leasing of work vehicles by NSPI from 2007 to 2010. The original ACE forecast for 2008 and 2009 was 31 vehicles, but NSPI purchased 19 in 2008 and leased 16 in 2009.

Class 3 Light Work Vehicles Board Approval Year Forecast # of Vehicles Cost per Unit Year 2009 $521,457 $521,457 Actual Actuals # of Vehicles Cost per Unit 5 $104,291 2009 o o N/A o In the 2009 4th Quarter Report, NSPI confirmed that the C...

AI summary The 2009 4th Quarter Report confirmed that NSPI cancelled the Class 3 Light Work Vehicles capital application. Financial data from 2009 shows a forecasted cost of $521,457, but actual figures are not fully provided, with only partial data for 2009 showing $104,291.

NSPI forecasted the number of Transportation and Class 3 Light Work vehicles to be purchased in 2009 (and submitted in the 2009 ACE Plan) in late summer of2008. At that point in time, as a result ofthe global financial downturn, there was...

AI summary NSPI canceled the purchase of Class 3 vehicles in 2009 due to the automotive industry crisis caused by the global financial downturn. Instead, NSPI opted to lease vehicles to maintain cash flow flexibility, resulting in lower annual costs compared to purchasing outright.

April 08, 2011 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: CI 38852 – Work Vehicle Replacement NSPI Responses to Board...

AI summary The Nova Scotia Power Inc. (NSPI) leased 16 work vehicles in 2009 due to cash flow issues, which the Board requested a cost-benefit analysis for. NSPI argued that leasing was more cost-effective than purchasing based on a comparison of life cycle costs and the need for financial flexibility, especially considering potential changes in environmental regulations.

of cash flow flexibility was important to the Company in 2009, as considerations about the increase of the capital requirement arising from changing environmental related regulation was not yet known. As a follow up to this discussion, NSP...

AI summary NSPI updated its Net Present Value analysis for a vehicle leasing and buyout decision, aligning purchase timing with lease terms and adjusting the discount factor. The buyout in 2010 was based on cash flow considerations and saved customers $50,000 from a weighted average cost of capital perspective, though not based on detailed financial analysis.