Topic:"Capital Expenditures" in M03091

Cost Centre 440 - 440-St.Margaret's Hydro System Budget Version - 2010 02/10 Forecast Start .Final Cost 2008 2009 2010 Total: Forecast 10/01/2008 Operational 07/30/2010 07/31/2010 $0.00 $10,638.34 $2,064,910.24 $2,075,548.58 Original Cost....

AI summary The document outlines the budget forecast for Cost Centre 440, which involves replacing the existing woodstave pipeline with High Density Polyethylene (HDPE) along the existing alignment. The forecast includes projected costs for 2008, 2009, and 2010.

CI Number 33942-H555 - U&U Coon Pond Pipeline Replacement Project Number H555 Parent CI Number Approved Date 2/6/2009 Cost Centre 440 440-St.Margaret's Hydro System Budget Version 2010 02/10 Forecast

AI summary The document details the U&U Coon Pond Pipeline Replacement Project (CI Number 33942-H555), referencing its parent CI number approved on February 6, 2009, and provides a budget forecast for the St. Margaret's Hydro System under Cost Centre 440 as of February 10, 2010.

Capital Item Accounts Acct Actv Account Activity Forecast Amount Amount Variance 094 005 094 - Interest Capitalized 005 Indirect Costs 32,487 0 32,487 095 005 095-Hydro Regular Labour AO 005 Indirect Costs 1,683 0 1,683 095 005 095-Thermal...

AI summary The document presents a table outlining capital item accounts with forecast amounts, actual amounts, and variances. The accounts include interest capitalized, labor costs, contracts, materials, and consulting expenses related to environmental and design activities. The total cost is listed as $2,075,549.

Capital Item Justification Justification Criteria: HYDRO Sub-Criteria: Equipment Replacement Name of Report : Document Location: Person Responsible:

AI summary This section outlines the justification criteria for a capital item under the HYDRO category, specifically focusing on equipment replacement. The document includes placeholders for the report name, document location, and the person responsible, indicating that further details are to be filled in.

Why do this project this way? Four options were considered for the refurbishment of the woodstave pipeline: - A. Replacement of the entire pipeline with HD.PE pipe - B. Replacement of all the bands, followed by replacement of pipe in 2015...

AI summary The document outlines four options for refurbishing the woodstave pipeline, with Option B (band replacement) initially recommended as the most cost-effective. However, after further engineering analysis, the cost of Option B increased, making the replacement of the woodstave pipe with HOPE pipe the most cost-effective option.

Reason for Variance lOver Expenditure I Final Costing 14240779 Over Expenditure Variance Explanation: Upon further detailed engineering, it was determined that the pipe bands had to be placed closer together than they presently were, and t...

AI summary The variance in expenditure is due to revised engineering assessments requiring closer placement and larger diameter steel pipe bands, leading to increased costs for the band replacement option. The economic analysis concluded that replacing the woodstave pipe with HDPE pipe is the most cost-effective solution, referencing a similar project from 2009.

Coon Pond Pipeline Replacement Reference Notes Budget Year 2010 Division Power Production Department Hydro Date March 10th CI number 33942 per the attached quote from limited a total of has been allotted for Materials. Note 2 Contracts Ple...

AI summary The document outlines reference notes for the Coon Pond Pipeline Replacement project under the Power Production division of Hydro in 2010. It includes details on contracts, excavation, site drainage, and contingency planning, based on NSPI experience with similar projects.

33942-H555 30-Apr-10 . I - Account Original Revision I Current Revision Variance 001 - Hydro Req. Labour 3,000 8,574 5,574 001 - Reqular Labour (No AO) - 85 85 011 - Travel Expense 75 200 125. 012 - Materials 375,000 013 - Power Prod Contr...

AI summary The document presents a comparison between original and current revisions of various account items, highlighting significant variances in costs such as labour, materials, consulting, and administrative overheads, with total costs increasing substantially from 629,936 to 2,075,549.

U&U Coon Pond Pipeline Replacement ATO 33942-H555 Total Variance: $1,445,613 - 001 Labour An increase of $5,574 is due to increased engineering carried out by NSPI labour. - 011 Travel Expense An increase of $125 is due to the increased co...

AI summary The U&U Coon Pond Pipeline Replacement project experienced a total variance of $1,445,613. Key factors include increased engineering and construction costs, changes in materials, and extended timelines. Decreases in consulting costs were offset by higher administrative overheads and interest expenses.

27-Apr-10 33942 Alternative After Tax WACC PV of EVA / NPV Rank IRR Disc Pay Α Pipe replacement Vs. Do nothing 6.55% 605,634 1 9.68% 19.4 years В Band and Pipe Replacement Vs. Do nothing 6.55% -24,258 3 6.41% 0.0 years c Band/Pipe Replacem...

AI summary The document presents a comparison of alternative pipe replacement strategies with the option of doing nothing, using metrics such as After Tax WACC, PV of EVA/NPV Rank, IRR, and Discounted Payback. The alternatives include full pipe replacement, band and pipe replacement, and a band/pipe replacement program, with varying financial outcomes.

Pipe replacement Vs. Do nothing This option includes an estimated capital cost of $2,075,548 in 2010 to replace 100% of the existing pipe. In addition to the pipe replacement in 2010, an estimated capital cost of $2M is included in 2012 fo...

AI summary This document compares the option of replacing a pipe with doing nothing, detailing capital costs of $2,075,548 in 2010, additional costs for dam restructuring and generator rewinds, and an annual operating budget. The justification is based on avoided energy costs from a de-rating of 3,720 MWh/year over 25 years.

Band and Pipe Replacement Vs. Do nothing This option includes an estimated capital cost of $822,120 for replacement of all bands in 2010, $2M in 2012 for dam restructuring, a capital investment of $500K for generator rotor rewinds in 2014...

AI summary The document outlines the capital costs associated with replacing bands, pipes, and other infrastructure components, including specific figures for 2010, 2012, 2014, 2015, and 2016, as well as the avoided energy costs from the replacement project over 25 years.

Band/Pipe Replacement program Vs. Do Nothing This option includes short-term band repairs on approximately 30% of the existing pipe in 2010, followed by staged replacement of 60% of the existing pipe between 2011 and 2013. The estimated ca...

AI summary The Band/Pipe Replacement program involves staged repairs and replacements of existing pipes between 2010 and 2016, with associated capital costs and energy savings. The option includes dam restructuring and generator rewinds, with avoided replacement energy costs estimated over 25 years.

Band 1/2 and Replace Pipe Vs. Do Nothing This option includes short-term band repairs on approximately 30% of the existing pipe and replacement of 50% of the existing pipe in 2010. The estimated capital cost of band replacements in 2010 is...

AI summary This option involves repairing and replacing portions of existing pipe in 2010 and 2016, with associated capital costs and future energy savings. Additional capital investments are planned for dam restructuring and generator rewinds in subsequent years.

Rand and Pine Replacement Vs. Do nothing Band and l Pipe Replacement \ 2047 - - • 51,908.5 - 16,091.6 16,091.6 0.090 1,444.0 (26,357.8) (26,913.8) 2048 - - - 48,794.0 - 15,126.1 15,126.1 0.084 1,273.9 (25,639.9) 2049 - - - 45,866.3 764,439...

AI summary The document presents a comparison between the Rand and Pine Replacement program and a 'do nothing' approach, with tables showing various metrics and figures for different years, including costs, interest, and other financial data. The table includes some unclear or incomplete entries, and there are mentions of names and numbers that may relate to legal or regulatory matters.

Budget Version - 2008 11/01 Forecast Forecast Start 10/24/2008 Operational 02/01/2009 Final Cost 02/01/2009 2008 $452,090.57 2009 $177,845.88 Total: $629,936.45 QriginaIC9st':'·' $91,970.65 This project includes replacement of the bands, r...

AI summary The document presents a budget forecast for a project involving repairs and replacements on the Coon Pond pipeline as part of the St. Margaret's Bay Hydro Development. It includes costs for the year 2008 and 2009, with a total projected cost of $629,936.45.

Cost Centre 440 440-St.Margaret's Hydro System Budget Version 2008 11101 Forecast Acct Actv Account Activity Forecast Amount Amount Variance 094 ./ 094 - Interest Capitalized 8,971 0 8,971 095 005/ 095-Hydro Regular Labour AO 005 Indirect...

AI summary The document presents a budget forecast for the St. Margaret's Hydro System under Cost Centre 440 for the year 2008, including various line items such as interest capitalized, labour costs, materials, and consulting expenses, with a total forecast cost of $629,936.

June 22, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor Halifax, NS B3J 3S3 Dear Ms. McNeil: Re: CI# 33942 - Coon Pond Pipeline Replacement NSPI - Responses to In...

AI summary NSPI provides responses to information requests regarding the Coon Pond Pipeline Replacement, explaining that contract costs are confidential to protect competitive advantages and ensure cost-based customer rates. The response emphasizes the importance of maintaining confidentiality for the benefit of customers.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 On November 30, 2007 the Board approved NSPI's request to replace the lower 700 feet of 4 this pipeline at the cost of $927,670 (U&U Work Order CI# 28863). Please provide an 5 update on the completed sc...

AI summary NSPI requested approval to replace a pipeline segment in 2007, with the project completed in 2010. The scope of work included replacing 185 feet of steel pipeline and 550 feet of woodstave pipeline with HDPE pipe, with actual spending totaling $971,003.

NON-CONFIDENTIAL 1 Request IR-3: 2 3 In the justification for CI# 28863 it was stated: 4 5 Tests indicated that the upper portion of the pipe is in relatively good 6 7 condition 8 9 Replace the lower 700 feet section in 2007, and replace t...

AI summary The document discusses the replacement of a woodstave pipeline, including the costs and reasons for the replacement. It notes that the upper portion of the pipe was initially in good condition but has since deteriorated, requiring replacement. The unit cost for the new section is lower due to factors like easier access and installation.

1 Response IR-4: (cont'd) 2 - 3 The unit cost for the total project is estimated to be $755/ft (Total estimate of the project - 4 $2,075,549/ 2750ft of pipe). Date Filed: June 22, 2010 NSPI (UARB) IR-4 Page 2 of 2

AI summary The response provides an estimate of the unit cost for a project at $755 per foot, with a total project cost of $2,075,549 for 2750 feet of pipe. The document was filed on June 22, 2010, by NSPI to the UARB as part of the IR-4 proceeding.

Divi Dep get Year : sion : artment : ginator : POWER PRODUCTION HYDRO PRODUCTION POWER PRODUCTION After Tax Date : CI Number: Project No. : 21-Jun-10 33942 This option includes the actual cost of $971,003 for replacement of the lower secti...

AI summary The text outlines the capital costs associated with the replacement of pipe sections in 2007 and 2010, including an actual cost of $971,003 for the lower section and an estimated cost of $2,075,548 for the upper section, with assumptions consistent with those filed under CI 33942.

July 28, 2010 Nancy McNeil Clerk ofthe Board Nova Scotia Utility and Review Board 1601 Lower Water Street 3rd Floor P.O. Box 1692, Unit "M' Halifax, NS B3J 3S3 Re: CI# 33942 - Coon Pond Pipeline Replacement - NSPI - Responses to Second Set...

AI summary This document is a response to information requests regarding the Coon Pond Pipeline Replacement project, submitted by Thomson-Lutz, Manager of Capital, to the Nova Scotia Utility and Review Board on July 28, 2010. It notes that responses were received on July 14, 2010, and that pictures related to Attachment 2 in response to IR-9 will be submitted on July 29, 2010.

NON-CONFIDENTIAL 1 Request IR-6: 2 3 This project had been approved by the Board as a U&U work order on February 5, 2009 4 for the amount of $629,936. According to the UARB Approval Sheet, it appears that only 5 $10,638 was spent in 2009....

AI summary The document discusses a request regarding the spending of a project approved by the Board in 2009, noting that only $10,638 was spent in 2009. The response explains that delays were caused by a blowout in a woodstave pipe in 2008, leading to a reevaluation of the pipeline design.

B R EPLACE EN ITIRE PIP ELINE IN 2008 6.66% -1,211,932 2 N/A 0.0 years

AI summary The document presents a summary of alternatives for the Coon Pond Pipeline Replacement, including a breakdown of costs and other metrics for the year 2008, with a rate of return of 6.66% and a net cost of -1,211,932.

NON-CONFIDENTIAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Request IR-8: In relation to the response to IR-5, economic analysis spreadsheet provided for Alternative A shows an amount of $3,085,000 as Total Revenue in 2007...

AI summary In response to a request regarding economic analysis spreadsheets, NSPI explains that the $3,085,000 in 2007 represents avoided costs from not completing a project, while the $6,640,567.70 in 2032 was removed due to an error. NSPI confirms that replacing the pipe sections in 2007 and 2010 remains the most economical option.

August 30, 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: CI# 33942 - Coon Pond Pipeline Replacement - NSPI - Responses to Third...

AI summary This document is a response from Lee Thomson-Lutz, Manager Capital, to information requests regarding the Coon Pond Pipeline Replacement project under CI# 33942. The response was submitted to the Nova Scotia Utility and Review Board on August 30, 2010.

NON-CONFIDENTIAL 1 Request IR-10: 2 3 In its response to IR-6 it is stated: NSPI had to reevaluate the design of the pipeline, due to 4 a blowout in the woodstave pipe in 2008. This caused a delay in the spending of this 5 project". 6 7 (a...

AI summary NSPI explained that a blowout in a woodstave pipe in 2008 led to a reevaluation of the pipeline design, which delayed spending on the project. This reevaluation was completed by May 2009, but Board approval for overspending was not requested in 2009 as NSPI opted to reforecast the item as part of the 2010 ACE Plan.

NON-CONFIDENTIAL 1 Request IR-12: 2 3 In the response to IR-9 (a), referring to a reference from the 1998 Canbar Report, NSPI 4 states: "As a result, the original project submitted to the Board for approval was based on 5 replacing the ban...

AI summary NSPI describes the 'original project' as a UARB capital application to extend the life of woodstave pipe by replacing bands at existing spacing, filed in 2008. The scope was based on the 1998 Canbar Report and 2007 woodstave core sampling, which indicated generally good conditions, allowing the project to extend the pipe's life by about 5 years.

Approved Amount Revised Amount ATO Amount CI # 33942 - Coon Pond Pipeline Replacement $629,936 $1,445,612 $2,075,549 This Work Order was originally approved by the Board on February 5, 2009, as an Unknown and Unforeseen ("U&U") capital ite...

AI summary The document discusses a request for approval to replace a section of the Coon Pond to Mill Lake Pipeline in 2010, originally approved as an Unknown and Unforeseen capital item in 2009. The replacement was initially planned for 2014, but NSPI is now seeking to accelerate the project.

Approved Amount Revised Amount ATO Amount CI # 33942 - Coon Pond Pipeline Replacement $629,936 $1,445,612 $2,075,549 This Work Order was originally approved by the Board on February 5, 2009, as an Unknown and Unforeseen ("U&U") capital ite...

AI summary The document discusses a request by NSPI to replace a section of the Coon Pond to Mill Lake Pipeline in 2010, originally approved as an Unknown and Unforeseen capital item in 2009. The pipeline was initially repaired with the expectation of a full replacement in 2014.