Topic:"Capital Expenditures" in M03413

Nova Scotia Utility and Review Board IN THE MATTER OF Section 35 of The Public Utilities Act, R.S.N.S. 1989, c.380, as amended - and - IN THE MATTER OF An Application by Nova Scotia Power Inc. for Approval of Capital Work Orders: CI 39323,...

AI summary Nova Scotia Power Inc. has applied for approval of capital work orders related to the Digby Wind Project, including substation, network upgrades, and interconnection. The proceeding is under Section 35 of the Public Utilities Act, R.S.N.S. 1989, c.380, as amended.

2 - 3 Nova Scotia Power Inc. (NSPI, the Company) has purchased the assets and development rights - 4 associated with the Digby Wind Project (the Project) located near Gulliver's Cove at the - 5 northeast end of the Digby Neck peninsula, ap...

AI summary Nova Scotia Power Inc. (NSPI) has acquired the Digby Wind Project, a 30 MW wind energy project, and seeks approval from the Nova Scotia Utility and Review Board to proceed with the project at a forecast cost of $82.8 million. The project was originally selected in 2007 and continued after the original developer faced financial difficulties.

jects must be in-service by March 31, 2011 to be eligible for the incentive. Approval of this credit for this project was received in March 2010. This contribution agreement is provided in Appendix 1. 1 The funds allocated for the ecoENERG...

AI summary NSPI seeks approval for the Digby Wind Project, emphasizing its alignment with the 2013 RES and favorable economics despite ecoENERGY program funding exhaustion. The project, with $82.8M capital costs, is expected to be in-service by year-end 2010, with NSPI requesting Board confirmation to proceed pre-work order approval.

1 8.0 PROJECT COST 2 3 NSPI estimates the cost to complete this project will total $82.8 million. The breakdown of the 4 cost components are summarized below.

AI summary NSPI estimates the total cost to complete the project at $82.8 million, with a breakdown of cost components provided in the document.

5 Total $82,771,360 Interconnection $3,270,060 Transmission Line $4,156,325 Substation $4,586,277 Wind Project Development $70,758,698 6

AI summary The text presents a table with financial figures related to various energy infrastructure projects, including interconnection, transmission line, substation, and wind project development costs, totaling approximately $82.77 million.

1 11.0 CONCLUSION 2 3 NSPI's investment in the Project will contribute to the achievement of 2010 in-service dates for 4 six of the original seven 2007 selected PPAs. The Company's ownership of the facility will 5 retain and enhance the be...

AI summary NSPI's investment in the Digby Wind Project will add 30 MW of wind generation by 2010, contributing to RES compliance and generating 110 GWh annually. The project's cost is lower than the original PPA, saving customers $4.9 million. NSPI requests UARB approval for capital applications totaling $82.9 million and confirmation that affiliate transactions comply with the Code of Conduct.

30. APPROPRIA nON - 30.1 The payment of monies by Canada under this Agreement is subject to there being an appropriation by Parliament for the Fiscal Year in which the payment of monies is to be made. - 30.2 Notwithstanding any other provi...

AI summary Section 30 outlines conditions for Canadian payments under the agreement, requiring parliamentary appropriation for each fiscal year. It also allows Canada to reduce or cancel its financial contribution if Department of Natural Resources funding changes, with provisions for amending the agreement accordingly.

FIRST-YEAR REPORTING ON THE PROJECT'S COSTS AND AIR EMISSIONS REDUCTIONS Within three months following the first anniversary date of Commissioned Date of the Project, the Proponent must provide a report containing the following: - a) Infor...

AI summary The Proponent must report final project costs, 20-year O&M cost estimates using a provided spreadsheet, and annual GHG/air contaminant emissions reductions for the ecoENERGY portion of the power plant, measured in MWh/yr, within three months of the project's first anniversary.

The Company's purchase of assets and development rights in this Project is necessary to allow the benefits and value avail~lble from this site to be realized by NSPI's customers. NOVA SCOTIA POWER • An Emera Company UARB APPRO VAL SHEET Pr...

AI summary The Company is purchasing assets and development rights in the Digby Wind Project to realize benefits for NSPI's customers. The project has a budget estimate of $4,586,277, with an estimated start date in May 2010 and an in-service date in December 2010.

Why do this project this way? The line is being built using single pole construction to minimize cost and right of way reqUirements. The routing was established through extensive landholder negotiation to provide the optimal route with min...

AI summary The transmission line uses single-pole construction to reduce costs and right-of-way requirements, with routing determined via landholder negotiations. Labour is sourced through NSPl's existing Power Line Technician Service Agreement with EUS, aligning with NSPl's force planning model for resource optimization.

39628 CINumber Digby Wind Project Interconnection Project Number Parent CI Number Approved Date 800 Cost Centre 800-Services - Admin. Budget Version 201007/05 Forecast Capital Item Accounts Acct Actv Account Activity Forecast Amount Amount...

AI summary The document presents a detailed financial breakdown of the Digby Wind Project Interconnection, including various cost categories such as labor, materials, and interest capitalized, with all amounts forecasted and showing variances.

Request to Proceed in Advance of Work Order Approval It is the Company's plan to file a work order for UARB approval of the Digby Wind Project in the near future. Project construction has already begun by NSPI's affiliate. Wind turbines ha...

AI summary NSPI seeks UARB's non-objection to continue constructing the Digby Wind Project before Capital Work Order approval, noting construction has already begun by NSPI's affiliate. Costs will not be included in rate base until Board approval, with potential changes post-review.

Background NSPI intends to construct and seek approval of the Digby Wind Project on a schedule that should allow the energy to be delivered to NSPI customers no later than December 31, 2010. Similar to the Nuttby Mountain Wind Project, the...

AI summary NSPI seeks approval to construct the Digby Wind Project by December 31, 2010, to access ecoENERGY program funding and meet the 2013 Renewable Energy Standard target. The project faces risks if the Board rejects the Capital Work Order, and construction must proceed amid winter limitations. The federal ecoENERGY program provides $9.2M in benefits over a decade.

Conclusion NSP! seeks to confirm that the UARB has no objection to NSP! continuing with project construction, pending the Capital Work Order review and approval process and before receiving a Board decision on the Capital Work Order Applic...

AI summary NSP! requests UARB's confirmation to proceed with the Digby project construction pending Capital Work Order approval. Customers will not bear costs unless the UARB approves the Capital Work Order Application. The Affiliate Code of Conduct applies due to the affiliate transaction, and NSP! offers to provide additional information if needed.

Nova Scotia Power Inc. - Digby Wind Proiect - P-128.1 0 This letter is further to correspondence from the Board dated April 16, 2010, with respect to NSPl's request involving the above-noted project. The Board has reviewed NSPI's request a...

AI summary NSPI requests approval to proceed with the Digby Wind Project construction before Capital Work Order (CWO) approval. The Board notes no objection to advance expenditures at shareholders' risk, provided they are not deemed CWO approval. The affiliate transaction with 3240384 Nova Scotia Limited will undergo rigorous review under the Affiliate Code of Conduct.

WHEREAS: - (a) The Company has been actively pursuing the development of a wind energy facility to be constructed near Digby, Nova Scotia (the "Project"); - (b) The Company owns and has certain personal property, rights in and to real prop...

AI summary The document outlines a sale agreement for a wind energy facility near Digby, Nova Scotia, involving the transfer of assets from the Company (Nova Scotia Power Inc.) to a Purchaser. Key terms include payment for development costs and compliance with the Income Tax Act (Canada).

ARTICLE 3 AGREEMENT OF PURCHASE AND SALE - 3.1 Agreement of Purchase and Sale and Payment for Development Costs. Subject to the terms and conditions hereof the Company agrees to sell, assign and transfer to the Purchaser and the Purchaser...

AI summary The Agreement of Purchase and Sale outlines the transfer of Assets from the Company to the Purchaser at fair market value, with the Purchaser responsible for paying Development Costs as of the Closing Date. The transfer becomes effective upon Closing, with the Purchaser becoming the beneficial owner regardless of legal title timing.

PROMISSORY NOTE Principal: WHEREAS Nova Scotia Power Incorporated (the "Undersigned") entered into an asset purchase agreement with 3240384 Nova Scotia Limited (the "Holder"), as seller, dated as of May 28,2010 (the "Agreement") pursuant t...

AI summary Nova Scotia Power Incorporated entered into an asset purchase agreement with 3240384 Nova Scotia Limited in 2010 to purchase certain assets and pay development costs incurred by the Holder.

6. PURPOSE 6.1 The obligations evidenced by this Note have been drawn by the Undersigned as partial payment of the consideration owed to the Holder for the purchase of the Assets (as defmed in the Agreement) and payment of Development Cost...

AI summary This Note serves as partial payment for the purchase of Assets and Development Costs under an Agreement, with obligations adjusted as per the Agreement's terms. The payment structure is tied to the Holder's consideration for acquiring these assets.

5.5 Other Costs Unless otherwise expressly provided herein, the Seller shall pay all taxes, levies, charges, costs and expenses whatsoever in respect of the Facility or the Facility Assets, and shall be solely responsible for all liabiliti...

AI summary The Seller is obligated to pay all taxes, levies, and costs associated with the Facility and its assets, including real property taxes, municipal taxes, land use fees, and expenses related to the Facility's design, construction, and maintenance. This responsibility encompasses all liabilities arising from the Seller's obligations under the agreement.

ssets acquired by the Licensor relating to the Project after the Effective Date; - (ii) all lending, banking, interest, prepayment and breakage costs incurred by the Licensor in relation to the Project or as a result of any payments to any...

AI summary The document outlines terms for asset transfer under an option agreement, including the Licensee's obligation to pay the Option Purchase Price via certified cheque or promissory note, and the Licensor's responsibility to assist with third-party consents for asset transfer. It details costs related to lending, professional services, and asset acquisition post-Effective Date.

6.6 Put Rights of Licensor The Licensor may, in its discretion, by notice in writing to the Licensee (the "Put Notice"), require the Licensee to exercise the Option, in which event the Licensee shall be required to purchase the Optioned As...

AI summary The Licensor may require the Licensee to purchase Optioned Assets if the UARB does not approve the capital expenditure for the Project or imposes unsatisfactory conditions. The Licensee must complete the purchase within 60 days of receiving the Put Notice, with the Option Closing Date determined under this section.

6. PURPOSE 6.1 The obligations evidenced by this Note have been drawn by the Undersigned as partial payment of the consideration owed to the Holder for the purchase of the Assets (as defined in the Agreement) and payment of Development Cos...

AI summary This section outlines the purpose of a note issued by the Undersigned as partial payment for the purchase of Assets and Development Costs under an Agreement. The payment is subject to adjustments as per the Agreement's terms and conditions.

11.1 Interconnection Customer Interconnection Facilities Interconnection Customer shall design, procure, construct, install, own and operate the Interconnection Customer Interconnection Facilities described in Apperidix A (Interconnection...

AI summary The Interconnection Customer is responsible for designing, constructing, and operating interconnection facilities at their own expense, as outlined in Appendix A. This includes network and distribution upgrades required for the project.

Interconnection Details

AI summary The document section focuses on interconnection details for renewable energy projects, including technical specifications, regulatory requirements, and stakeholder involvement. Key elements involve generator interconnection agreements, compliance with standards, and cost considerations for integration into the grid.

Description The acquisition of the Right-of-Way (R.O.W.) and provision of easements for this transmission line are not included in Nova Scotia Power's scope of work. This will be provided by the customer or their agent. The cost estimate i...

AI summary Nova Scotia Power is not responsible for acquiring the right-of-way or providing easements for the 69 kV transmission line. The cost estimate includes engineering, materials, and construction for a 10.6 km line, but not right-of-way clearing or the customer's substation. The line will be built to current Nova Scotia Power standards and the CSA C22.3 No. 1-06 standard.

Response IR-3: (cont'd) The initial Engineer's Estimate was based on a two-site turbine layout, with 14 turbines on the western site and 6 turbines on the eastern site. The two sites were 2.5 kilometers apart. The project was consolidated...

AI summary The project initially had two turbine sites but was consolidated on the western site due to environmental constraints. The Engineer's Estimate was revised to reflect the new layout, updated pricing, and civil works. The revised estimate was approximately 4.8% lower than the initial CBCL estimate, with adjustments for padmount transformers and project management services.

1 Response IR-3: (cont'd) 2 CBCL's Engineer's Estimate SkyPower RFP Low Bid SkyPower RFP High Bid less 4.8% EUS Contract ($) less 4.8% ($) ($) ($) Revised Scope (-4.8%), including contingency Padmount transformers plus contingency Project...

AI summary The text presents a table comparing various cost estimates for the SkyPower Wind Power Project, including the CBCL Engineer's Estimate, SkyPower RFP Low and High Bids adjusted by 4.8%, and the EUS Contract, along with a variance to the EUS Contract. The project number is listed as 090630.00.

Electrical 14. Control Building 15. Power Collection System 16. Substation 17. Commissioning 18. SUBTOTAL COMMISSIONING (D) Estimated Contract Price (Excluding HST) ((A)+(B)+(C)+(D)) Contingency Allowance (E Subtotal [(A)+(B)+(C)+(D)+(E)]...

AI summary This section of the document outlines the components and estimated costs for various electrical infrastructure projects, including control buildings, power collection systems, substations, and commissioning activities, with a subtotal for commissioning and an estimated contract price excluding HST.

GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. Generally accepted accounting principles state that the cost of a capital asset not only includes direct construction or development cost...

AI summary Overhead costs for capital projects are allocated based on direct labour costs, per a 1982 Public Utilities Board ruling and subsequent UARB approvals. This method ensures fair distribution of overhead expenses across projects.

POLICY 05 The Company should apply "Capital-related Overhead Expenses" to externally contracted capital projects based on the contract costs charged to those projects.

AI summary The document instructs the Company to allocate 'Capital-related Overhead Expenses' to externally contracted capital projects based on the contract costs associated with those projects, ensuring alignment between overhead application and project-specific financial commitments.

IDENTIFICATION OF DIVISIONS 06 The first step in the application of overhead costs to capital projects is the disaggregation of NSPI's Annual Capital Expenditure Plan (ACE Plan) into several broad areas of responsibility with similar proje...

AI summary The document outlines the initial step in applying overhead costs to capital projects by disaggregating NSPI's Annual Capital Expenditure Plan (ACE Plan) into three divisions: Customer Operations, Power Production, and Shared Services, based on similar project types and eligible overhead expenses.

10 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...

AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, and rent, are calculated for divisions with capital-related labor and expenses. These expenses are part of determining rates for the division.

DETERMINATION OF CAPITAL-RELATED OVERHEAD EXPENSES 11 Once the Eligible Overhead Expenses have been determined, the overhead expenses related to the Company's capital activities must be calculated. This calculation involves prorating the r...

AI summary The document outlines a method to calculate capital-related overhead expenses by prorating eligible overhead expenses based on the ratio of contractor labour to total labour. For example, if contractor labour constitutes 10% of total labour, 10% of eligible expenses are allocated to capital activities.

APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230

AI summary The document is an application concerning the administrative and vehicle overhead costs associated with self-constructed assets, likely seeking approval or discussion on the allocation and recovery of these costs within the regulatory process.

GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. Generally accepted accounting principles state that the cost of a capital asset not only includes direct construction or development cost...

AI summary Overhead costs are essential to capital asset construction and must be allocated to projects using methods like direct labour costs. Regulatory approvals from the Public Utilities Board and UARB support this approach.

POLICY 04 The Company should apply "Capital-related Overhead Expenses" to capital projects based on the direct labour costs charged to those projects

AI summary The Company is advised to allocate 'Capital-related Overhead Expenses' to capital projects based on direct labour costs associated with those projects, ensuring accurate cost attribution.

IDENTIFICATION OF DIVISIONS 05 The first step in the application of overhead costs to capital projects is the disaggregation of NSPI's Annual Capital Expenditure Plan (ACE Plan) into several broad areas of responsibility with similar proje...

AI summary The document outlines the initial step in allocating overhead costs to capital projects by disaggregating NSPI's Annual Capital Expenditure Plan (ACE Plan) into three divisions: Customer Operations, Power Production, and Shared Services, each with similar project types and overhead expenses.

DETERMINATION OF CAPITAL-RELATED OVERHEAD EXPENSES 11 Once the Eligible Overhead Expenses have been determined, the overhead expenses related to the Company's capital activities must be calculated. This calculation involves prorating the e...

AI summary The process involves determining eligible overhead expenses and prorating them for the company's capital activities, with a reference to Section 3100 for detailed discussion.

CALCULATION OF OVERHEAD APPLICATION RATE 12 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...

AI summary The overhead application rate is calculated by dividing Capital-related Overhead Expenses by capital labour costs, expressed as a percentage. Separate calculations are conducted for each division after determining the overhead expenses.

9 Category of Equipment Purchases Exceeding $1M Turbine Shipment Project Management Roads Foundations Overhead Line Construction Turbine Installation Incentive Contingency Other Total $22,109,200 REDACTED

AI summary The table lists categories of equipment purchases exceeding $1 million, with a total of $22,109,200. The content is partially redacted, indicating that some details are not publicly available.

NON-CONFIDENTIAL 1 Request IR-19: 2 3 Please provide a comparison of the capital costs of the Digby Project (and associated 4 transmission, substation and interconnection costs) with the other NSPI-owned wind 5 project from the 2007 solici...

AI summary NSPI declined to compare Digby Project capital costs with 2007 wind projects (Nuttby/Point Tupper), stating economic merit is assessed via total project cost per MWh over the project's life, as detailed in levelized cost analyses submitted with applications. Factors influencing costs include project scale, site layout, turbine selection, and geotechnical conditions.

7. PPA Annual Payment If all of the projects in the Recommended Group (a total of about 240 MW) are successful, NSPl's annual payments under the PPA's will total approximately $70 million. These payments will continue for the term of the P...

AI summary If all 240 MW of the Recommended Group projects are successful, NSPI's annual PPA payments will total ~$70M, reducing fuel costs but increasing capital charges. The net impact on revenue requirements could raise or lower customer rates. The Integrated Resource Plan prioritizes DSM and renewables, but wind integration may face technical/economic limits.

those spans. This option could be pursued by the Facility Study. At this time, since the information is not available, a cost estimate for an SPS is included in the total system upgrade cost estimate. The cost estimate for installing the S...

AI summary The text compares the costs of two options for system upgrades: installing an SPS with an estimated cost of $3,000,000, and a lower-cost alternative involving the installation of a switched reactor and capacitor banks with an estimated cost of $1,100,000.

Request to Proceed in Advance of Work Order Approval It is the Company's plan to file a work order for UARB approval of the Digby Wind Project in the near future. Project construction has already begun by NSPI's affiliate. Wind turbines ha...

AI summary NSPI seeks UARB approval to continue constructing the Digby Wind Project before Capital Work Order approval, noting construction has already begun by its affiliate. Costs will not be included in the rate base until Board approval, subject to potential changes.

Nova Scotia Power Inc. - Digby Wind Proiect - P-128.1 0 This letter is further to correspondence from the Board dated April 16, 2010, with respect to NSPl's request involving the above-noted project. The Board has reviewed NSPI's request a...

AI summary NSPI requests approval to proceed with Digby Wind Project construction pending Capital Work Order review. The Board notes this mirrors the Nuttby Mountain case, where advance expenditures were allowed at shareholders' risk. The affiliate transaction with Nova Scotia Limited will undergo rigorous review. Costs will not be passed to customers until Capital Work Order approval.

Construction costs associated with Digby Wind Project Paid by NSPI to 3240384 Nova Scotia Limited 1 Request IR-6: 2 3 Reference Appendix 4, Asset Purchase Agreement 4 5 (a) Page 8 of 50, Section 4.1 Valuation 6 7 (i) Please provide the fai...

AI summary The text outlines a request for information regarding the fair market value of assets and development costs associated with the Digby Wind Project, as determined by NSPI under the Asset Purchase Agreement. The request includes details on valuation processes, independent assessments, and the calculation of development costs.

NON-CONFIDENTIAL 1 Request IR-11: 22 (i) Reference page 51 of 54, Schedule B3 23 24 (i) Please provide a copy of the latest site layout. 1 Request IR-12: (cont'd) 2 3 (j) Reference page 53 or 54, Schedule C 4 5 (i) Please confirm that the...

AI summary The document contains requests and responses related to a project, including requests for site layouts and clarification on excluded items in project costs. The response discusses contractual mechanisms, such as incentives and penalties, used to ensure timely project completion, referencing past contracts and the nature of the contractor.

REDACTED 1 Response IR-12: (cont'd) 2 3 (iii-iv) No change orders were included in the Project capital cost estimate used in 4 Appendices 16 and 17. 5 (c) Page 3 of 54, Article A3 Contract Price states that the contract price is exclusive...

AI summary The response discusses the exclusion of HST from the contract price and its impact on cost models, noting that HST is not included in levelized cost or EAM models and will be recovered as an input tax credit by NSPI.

Medium Congestion Zone Column I Column II Column III Column IV Column V Column VI Column VII Column VIII Column IX Column X Column XI 3 Reference CONFIDENTIAL Appendix 16, Discounted Cash Flow EAM Analysis 4 5 (a) Please provide an electro...

AI summary The text requests clarification on discrepancies in capital cost figures, the basis of calculations in Appendix 16, justification for tax depreciation assumptions, and the classification of capital costs by NSPI. It also asks for details on 'sustaining capital.'

Failures that occur in the initial period are covered by the manufacturer's warranty. The low-rate of failure that occurs during the useful life period is covered by the O&M arrangements that are in the annual forecast. The budget for sust...

AI summary The text discusses the coverage of turbine failures during different periods, noting that initial failures are covered by warranties, while wear-out failures in the last five years of a turbine's 20-year design life are addressed through O&M arrangements and sustaining capital. Data on older large turbines is limited, and the estimate for sustaining capital is based on industry discussions and experience.

1 Response IR-16: (cont'd) 2 3 (vi) The ecoENERGY rebate is calculated based on $10/MWh, capped at 35 percent 4 of maximum production for 10 years. The Digby Wind Project is a 30 MW farm. 5 The maximum rebate is calculated as: 30 MW 24 hou...

AI summary The response outlines the calculation of the ecoENERGY rebate for the Digby Wind Project, the components of cash taxes, the definition of NOPAT, and the use of the Weighted Average Cost of Capital in financial calculations. It also explains the exclusion of unused CCA from IRR calculations.

price for pipe and related items. SkyPower Corp. Measurement and Section 01 22 00 Digby Wind Power Project Payment Page 3 Contract 090630.00 June 2009 6. Trench Excavation – Unsuitable Material

AI summary This section outlines the pricing for pipe and related items under the Digby Wind Power Project, specifically addressing trench excavation for unsuitable material.

- INSTALLATION .2 Mount cabinets with top not higher than 2 m above finished floor. - .3 Install terminal block as indicated in Type T cabinets. - .4 Only main junction and pull boxes are indicated. Install pull boxes so as not to exceed 3...

AI summary The text outlines specific installation requirements for electrical cabinets and enclosures, including height limitations, terminal block placement, pull box spacing, and the use of galvanized steel support structures. It also references a standard for equipment identification.

INSTALLATION - 3.1 PANEL .1 Install panels as indicated by design drawings. - .2 Install panels and mount plumb, true and square to the building lines.

AI summary The installation guidelines specify that panels should be installed according to design drawings and mounted plumb, true, and square to the building lines.

- .1 Dressing shall include installation of all necessary components shipped loose with the transformer. Contractor shall be responsible for SkyPower Corporation Liquid Filled Power Section 26 12 15 Digby Wind Power Project Transformers Pa...

AI summary The text outlines installation requirements for transformer components and references a contract related to the Digby Wind Power Project. It includes a table with details about transformers and a contract number.

- .1 stantial completion of the work. - .2 (6) months following delivery to the Place of the Installation. - .2 Owner, through the Engineer, shall promptly give the Vendor notice in writing of observed defects and deficiencies that occur d...

AI summary The text outlines warranty obligations and factory test requirements for electrical equipment, including procedures for reporting defects, correcting issues, and assigning warranties. It also specifies testing standards for circuit breakers, current transformers, and bushings.

3.1 INSTALLATION .1 Switches: - .1 Install single throw switches with handle in "UP" position when switch closed. - .2 Install switches in gang type outlet box when more than one switch is required in one location. - .3 Mount toggle switch...

AI summary This section outlines installation requirements for switches, including positioning, gang type outlet boxes, and mounting heights based on specific electrical standards.

- .2 CSA Standards - .1 C156.1, Ceramic and Glass Station Post Insulators - .2 G164, Hot Dipped Galvanized or Irregularly Shaped Articles - .3 W59, Welded Steel Construction (metal-ark welding) - .3 NEMA Standards - .1 Std. SG-6, Power Swi...

AI summary This document outlines the standards and submittal requirements for electrical components, including CSA, NEMA, ANSI/IEEE, and ISO standards, as well as specifications for operation and maintenance data and manufacturer drawings for disconnect switches.

- 2.4.1 Per Diem cost including travel and other expenses for a skilled technical representative to supervise assembly of Reactive Power Static Compensator (STATCOM) System on site (attach schedule of prices if applicable).

AI summary The text outlines a per diem cost for a skilled technical representative to supervise the assembly of a Reactive Power Static Compensator (STATCOM) system on site, with the option to attach a schedule of prices.

- .8 Formwork: - .1 Forms: to CSA-A23.1, plywood and lumber, clean and free of loose knots, splits or metal. - .2 Form Ties: to CSA-A23.1, removable or snap-off metal ties, fixed or adjustable length. Form ties, tie wire, spacers or other...

AI summary The text outlines specifications for formwork and concrete mix, referencing various Canadian standards and testing methods. It details requirements for materials such as form ties, release agents, and curing compounds, as well as specifications for concrete mix proportions and air content.

3.1 Installation END .10 CSA-G40.20/G40.21-04, Rolled or Welded Structural Quality Steels. .11 CSA S164-06, Limit States of Steel Structures. .12 CSA W47.1-03, Certification of Companies for Fusion Welding of Steel Structures. .13 CSA W47....

AI summary This section outlines the installation requirements for metal fabrications, specifying the applicable standards and materials. It includes references to various CSA and ASTM standards for structural steel, welding, and fabrication processes, as well as requirements for shop drawings and material specifications.

.2 Shipment .1 Ship station assembled to the greatest extent possible to reduce installation and start-up costs. Shipped separately from the tank to be the pumps, the controls including the regulators, and a container of miscellaneous conn...

AI summary The text outlines requirements for the shipment and labeling of lift station components, emphasizing cost reduction during installation and start-up, and the necessity of permanent nameplates with the CSA logo on approved components.

6.6 Put Rights ofLicensor The Licensor nlay, in its discretion, by notice in writing to the Licensee (the "Put Notice"), requit:e the Licensee to exerCise the Option, in which event the Licensee shall be required to purchase the Optioned A...

AI summary The Licensor has the right to require the Licensee to purchase Optioned Assets if the DARB does not approve or imposes unsatisfactory conditions on the Licensor's capital expenditure application for the Project. This right is subject to specific terms and timelines outlined in the agreement.

~TILI~ NOTICE OF PUBLIC HEARING '~[e1Tl·J;.1tlio"·J:l.11!j3iilINC. DIGBY WIND PROJECT Notice is hereby given thaf';mn.,.,.il!i\Wi!I'j Incorporated (UN8PI") has made an Application to the iAi-WUJtiHtyfii;§l§W'=g (the "Board") for approval o...

AI summary Nova Scotia Power Inc. (NSP) has applied to the Board for approval of capital work orders related to the Digby Wind Project, including substation, network upgrades, and interconnection costs totaling $82,771,360. A public hearing is scheduled for January 5, 2011, with details on how to participate provided.

NOVA SCOTIA UTILITY AND REVIEW BOARD NOTICE OF PUBLIC HEARING NOVA SCOTIA POWER INC. DIGBY WIND PROJECT Notice is hereby given that Nova Scotia Power Incorporated ("NSPI") has made an Application to the Nova Scotia Utility and Review Board...

AI summary Nova Scotia Power Inc. (NSPI) has applied to the Nova Scotia Utility and Review Board for approval of capital work orders related to the Digby Wind Project, with a total cost of $82,771,360. A public hearing is scheduled for January 5, 2011, with details on how to participate provided.

NOVA SCOTIA UTILITY AND REVIEW BOARD NOTICE OF PUBLIC HEARING NOVA SCOTIA POWER INC. - DIGBY WIND PROJECT Notice is hereby given that Nova Scotia Power Incorporated ("NSPI") has made an Application to the Nova Scotia Utility and Review Boa...

AI summary Nova Scotia Power Incorporated has applied for approval of capital work orders related to the Digby Wind Project, with a total cost of $82,771,360. A public hearing is scheduled for January 5, 2011, with details on how to participate provided, including deadlines for filing evidence and notifications.

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AI summary Nova Scotia Power Incorporated (NSPI) has applied to the Nova Scotia Utility and Review Board for approval of capital work orders related to the Digby Wind Project, with a total cost of $82,771,360. A public hearing is scheduled for January 5, 2011, with details on how to participate provided.

NOVASCOTIA_ NOTICE OF PUBLIC HEARING H.~-reI'll1.?Cl.~ INC. - DIGBY WIND PROJECT Notice is hereby given that ·~mmw.."'!il'ilmr..liWl§1llncorporated("NSPI") has made an Application to the ~!iW!J,,1§W'iIJtllltyl!mI:JW'¥i!I;P (the "Board") fo...

AI summary Nova Scotia Power Incorporated (NSPI) has applied for approval of capital work orders totaling $82,771,360 for the Digby Wind Project. A public hearing is scheduled for January 5, 2011, with procedures for formal standing, evidence filing, and public participation outlined. The matter is referenced as M03413.

o report began putting energy on the grid in the fall and reached commercial operation last month – on time and again within budget. In both cases, the Board's decision cited that the projects were in the best interest of customers and sho...

AI summary Nova Scotia Power Inc. (NSPI) is seeking approval for capital work orders related to the Digby Neck Wind Farm project, which faced risks due to SkyPower Corporation's financial downturn. NSPI acquired the project to ensure timely execution and preserve PPA value, with the project now on track and within budget. The Board has previously supported similar projects, citing customer interests and cost savings.

Objectives To maintain a capital structure for NSPI which is in accordance with applicable Board decisions.

AI summary The objective is to maintain a capital structure for Nova Scotia Power Inc. that aligns with applicable decisions made by the Nova Scotia Utility and Review Board.

Protocols - 5.1 NSPI's capital structure will reflect the Board approved capital structure. - 5.2 NSPI's capital structure will not be used to subsidize affiliate activities. Affiliate risks or losses will not be borne by NSPI's customers....

AI summary The document outlines protocols regarding NSPI's capital structure and restrictions on affiliate activities. It specifies that NSPI's capital structure must align with the Board's approval and prohibits using it to subsidize affiliates or bear their risks and losses.

IN THE MATTER OF THE PUBLIC UTILITIES ACT and - IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated ("NSPI") for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Subst...

AI summary Nova Scotia Power Incorporated has applied for approval of capital work orders related to the Digby Wind Project, including substation, network upgrades, and interconnection, with a total cost of $82,771,360.

ORDER BEFORE: Margaret A. M. Shears, a.c., Vice-chair WHEREAS Nova Scotia Power Inc. ("NSPI") made Application to the Nova Scotia Utility and Review Board (the "Board") on July 23, 2010, for approval of capital work orders CI# 39323, Digby...

AI summary The Nova Scotia Utility and Review Board has ordered a hearing for NSPI's application to approve capital work orders related to the Digby Wind Project, with a detailed timetable for the proceeding and publication schedule for the hearing notice.

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and- IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Substation ($...

AI summary Nova Scotia Power Incorporated has applied for approval of capital work orders related to the Digby Wind Project, including substation upgrades, network improvements, and interconnection, with a total cost of approximately $82.77 million.

ORDER BEFORE: Margaret A. M. Shears, a.c., Vice chair Kulvinder S. Dhillon, P. Eng., Member .Roberta J. Clarke, a.c., Member WHEREAS Nova Scotia Power Inc. ("NSPI") made Application to the Nova Scotia Utility and Review Board (the "Board")...

AI summary The Nova Scotia Utility and Review Board approved NSPI's application for the Digby Wind Project, subject to a $3 million reduction, including a $1 million disallowance of a bonus payment to Emera Utility Services and a further reduction based on final construction costs.

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and· IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Substation ($...

AI summary Nova Scotia Power Incorporated applied for approval of capital work orders related to the Digby Wind Project, totaling $82,771,360. The application was approved, but with a $3 million reduction due to disallowance of a bonus payment to an affiliate and potential further reductions based on final construction costs.

just and reasonable. RS., c. 380, s. 52 - [3] NSPI is a regulated public utility and is the successor to Nova Scotia Power Corporation, a Crown Corporation which was privatized in 1992. As of January 1, 1999, NSPI became the principal subs...

AI summary NSPI, a regulated public utility and subsidiary of Emera, must file for Board approval of capital expenditures over $250,000 to include them in its rate base. The Board aims to improve transparency and public comment on capital work orders, with examples like Nuttby Mountain and Water Street, by initiating consultations through hearings or written submissions.

II BACKGROUND [8] On April 16, 2010, NSPI filed a letter with the Board requesting that: NSPI seeks to confirm that the UARB has no objection to NSPI continuing with project construction, pending the Capital Work Order review and approval...

AI summary NSPI requested the UARB's approval to proceed with the Digby project before a Capital Work Order decision, noting that customers would not bear costs unless approved. The Board referenced a prior case and stated it had no objection to NSPI spending at shareholders' risk, but emphasized that the affiliate transaction would be rigorously reviewed.

3) Did the May 28, 2010 transaction between NSPI and 324 NSL comply with the Code? [79] The transaction by which NSPI acquired the DWP from 324 NSL is a complex one. It must be examined as a whole. The same fair dealing principles and proc...

AI summary The Board found that the May 28, 2010 transaction between NSPI and 324 NSL did not comply with the Code. However, due to the unique circumstances of the Project, the Board approved the capital expenditure with a reduction in costs.

ob, that's what I try to do every day and that's what we're trying to do here. We're trying to put this project in service in a way that brings the best value to customers. [Transcript, pp. 183-190] [98] While the Board is prepared to appr...

AI summary The Board approves capital expenditures but disapproves a $1 million affiliate bonus payment to EUS, reducing the rate base by that amount. Fees paid to EES are considered justifiable despite concerns about RES compliance and PPA preservation.

c. Power Purchase Agreement - NSPI and SkyPower [109] As a result of negotiations after its RFP to Independent Power Producers ("IPP"), NSPI entered into a PPA with SkyPower on March 31, 2008. As part of this Application, the PPA was filed...

AI summary NSPI entered into a PPA with SkyPower in 2008, which became an excluded asset in a subsequent asset purchase agreement. The PPA's termination is conditional on the Board's approval of a capital expenditure application. If not approved, 324 NSL may repurchase or sell the PPA.

[119] NSPI's Application, as noted earlier, includes four work orders to complete the Project, with a total forecast construction cost of: Digby Wind Project- CI# 39323 $70,758,698 Digby Wind Project Substation - CI# 39626 $4,586,277 Digby...

AI summary NSPI's application includes four work orders for the Digby Wind Project, with a total forecast construction cost of $82,771,360. The costs are itemized for various components of the project, including the wind project, substation, transmission line, and interconnection.

Submissions - Intervenors [133] Avon commented on the embedded costs in the overall cost of the DWP and their affect on NPV and levelized energy cost: Since the time of the filing, NSPI entered into an Operation Support Agreement with GE,...

AI summary Avon discusses the impact of updated costs and production forecasts on the Net Present Value (NPV) of the DWP project. While lower operation and construction costs improved NPV, using the PPA's energy output instead of the P50 forecast reversed the economic advantage, favoring the original PPA. The Board acknowledges the traditional use of P50 for equity and P90 for debt sizing but does not take a stance on future applications.

[134] Avon suggested that: .... it may be appropriate to reduce the percentage contingency allowance used in the CBCL engineering estimate to the comparable level allocated to the bids, noting that none of the bids had an allowance which a...

AI summary Avon suggests reducing the contingency allowance in the CBCL engineering estimate, citing that the Digby Wind Project came in under budget. Avon also recommends the Board request NSPI to report actual wind output compared to assumed output for economic analysis. NSPI disagrees, arguing that the Garrad Hassan report provides the best evidence for long-term wind production.

Nova Scotia Utility and Review Board Mailing address PO Box 1692, Unit II M" Halifax, Nova Scotia B3J 353 [email protected] Web www.nsuarb.ca Office 3rd Floor 1601 Lower Water Street Haiifax, Nova Scotia B3J 3P6 902 424-4448 t 902424-39...

AI summary Nova Scotia Power Inc. (NSPI) requested approval for $82.8 million in capital expenditures related to the Digby Wind Project. The request is subject to the Affiliate Code of Conduct and the Capital Work Order review process. Customers will not be responsible for these costs until the UARB approves the Capital Work Order Application and its inclusion in the rate base.

he Board to confirm compliance with the Code of Conduct and approve the affiliate transaction. [NSPlletter to Board, April 16, 2010, p. 3] In the Board's April 23, 2010 response, it determined that: ... since the Digby Wind Project involve...

AI summary The document discusses the Nova Scotia Utility and Review Board's review of NSPI's request for approval of a $82.8 million capital work order for the Digby Wind Project, which involves an affiliate transaction with 3240384 Nova Scotia Limited. The Board has determined that a public hearing is necessary to ensure compliance with the Code of Conduct and to serve the public interest.

illion of the capital expenditures proposed for this project and the fact that it involves an affiliate transaction, the public interest is best served by holding a public hearing on this application. The Board's hearing schedule for the f...

AI summary The document discusses the need for a public hearing regarding significant capital expenditures and an affiliate transaction by NSPI. Due to a busy hearing schedule, a decision by December 20, 2010, is unlikely. NSPI is advised to consult with Board Counsel, S. Bruce Outhouse, on an appropriate timeline.

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 902 424-4448 t 902424-3919...

AI summary The Nova Scotia Utility and Review Board is processing a request from Nova Scotia Power Inc. for approval of $82.8 million in capital expenditures related to the Digby Wind Project. Preliminary discussions have taken place between Board Counsel and NSPI regarding the timeline for processing the matter, and the Board will consider these discussions when setting the hearing.

NOVA SCOTIA POWER INC. - DIGBY WIND PROJECT Notice is hereby given that Nova Scotia Power Incorporated ("NSPI") has made an Application to the Nova Scotia Utility and Revie,,-, Board (the "Board") for approval of capital work orders CI# 39...

AI summary Nova Scotia Power Inc. (NSPI) has applied to the Nova Scotia Utility and Review Board for approval of capital work orders related to the Digby Wind Project, with a total cost of $82,771,360. The hearing is scheduled for January 5, 2011, with details on how to participate in the proceeding provided.

IN THE MATTER OF THE PUBLIC UTILITIES ACT and - IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated ("NSPI") for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Subst...

AI summary Nova Scotia Power Incorporated has applied for approval of capital work orders related to the Digby Wind Project, including substation, network upgrades, and interconnection, with a total cost of $82,771,360.

ORDER BEFORE: Margaret A. M. Shears, a.c., Vice-chair WHEREAS Nova Scotia Power Inc. ("NSPI") made Application to the Nova Scotia Utility and Review Board (the "Board") on July 23, 2010, for approval of capital work orders CI# 39323, Digby...

AI summary The document outlines an order by the Nova Scotia Utility and Review Board to hold a hearing regarding Nova Scotia Power Inc.'s application for capital work orders related to the Digby Wind Project. The hearing is scheduled for January 5, 2011, and a detailed timetable for the proceeding is provided.

NOVA SCOTIA UTILITY AND REVIEW BOARD IN THE MATTER OF: THE PUBLIC UTILITIES ACT - and- IN THE MATTER OF: AN APPLICATION by Nova Scotia Power Incorporated ("NSPI") for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,6...

AI summary The Nova Scotia Utility and Review Board is handling an application by Nova Scotia Power Incorporated for approval of capital work orders related to the Digby Wind Project, including substation and network upgrades, with a total cost of $82,771,360. The Board has requested redacted information from Nova Scotia Power Inc. by November 3, 2010.

Reference, Application - a. Page 4, line 11, where and how will the ecoENERGY benefit be credited? - b. Page 4, line 14, on what basis does the Company state that "The Project will qualify for inclusion in the Company's 2013 RES portfolio....

AI summary This document contains a series of questions raised in a regulatory proceeding regarding the Digby Wind Project. The questions pertain to financial aspects, contract details, legal compliance, and project specifics such as leases, easements, and cost allocations.

Request IR-6: - Reference Appendix 4, Asset Purchase Agreement - a. Page 8 of 50, Section 4.1 Valuation - i. Please provide the fair market value of the assets as determined by the parties. Include any adjustments to valuation as covered b...

AI summary The document requests detailed information regarding the fair market value of assets, the valuation process, and development costs as outlined in the Asset Purchase Agreement. Specific attention is given to whether NSPI used independent parties for valuation and the documentation supporting these determinations.

NON-CONFIDENTIAL 1 Request IR-18: 2 3 4 Please provide the spreadsheet(s) from which Appendix 17 was derived, with all formulae intact. 5 6 Request IR-19: 7 8 9 10 Please provide a comparison of the capital costs of the Digby Project (and...

AI summary The document contains several requests for information related to NSPI's projects, including requests for spreadsheets, capital cost comparisons, and quarterly development reports. These requests are part of a regulatory proceeding.

NON-CONFIDENTIAL 1 Undertaking U-3: 2 3 Inquire whether NSL, Emera, or anyone followed up on the suggestion referenced in CA 4 IR 3, CONFIDENTIAL Attachment 1 that doing a comprehensive value engineering 5 analysis would likely result in a...

AI summary The document discusses a follow-up on a suggestion for a comprehensive value engineering analysis, which led to a significant reduction in construction costs for a project. NSPI confirmed that NSL conducted this analysis through CBCL, resulting in lower costs than initial tender responses.

NON-CONFIDENTIAL 1 Undertaking U-8: 2 3 Provide a comparison of the achieved cost in the O&M contract with the embedded cost in 4 the financial model and advise if it affects the application in any way. 5 6 Response U-8: 7 8 Please refer t...

AI summary NSPI provided a response to Undertaking U-8, comparing the achieved O&M contract costs with the embedded financial model costs. The updated contract, signed in November 2010, has lower costs than originally forecast, increasing the project's NPV by $1.5 million and reducing the levelized cost by $1.79/MWh.

REDACTED 1 Undertaking U-13: 2 3 IN CAMERA - Provide what the pricing of the PPA energy would be at the projected 4 incremental rate. 5 6 Response U-13: 7 8 As requested by the UARB, NSPI adjusted the models as filed by updating the PPA pr...

AI summary NSPI adjusted the PPA price for incremental energy rate as requested by the UARB, resulting in a revised NPV of $3.7 million and a levelized cost of $86.71/MWh. Further updates to construction and O&M costs resulted in an NPV of $6.6 million and a levelized cost of $83.22/MWh, with the comparison PPA price remaining unchanged at $XXX/MWh.

Delivered by E-mail Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 3rd Floor 1601 Lower Water Street PO Box 1692 Unit "M" Halifax NS B3J 3S3 Dear Ms. McNeil: Re: An Application by NSPI for Approval of Ca...

AI summary This letter, filed on behalf of the Avon Group, addresses concerns regarding the economics of the Digby Wind Project and compliance with the Code of Conduct for the application by NSPI for approval of capital work orders.

ECONOMIC ANALYSIS If NSPI's economic analysis is accepted, the levelized cost of energy for the next 20 years compares favourably to the SkyPower PPA. However, prudence requires careful scrutiny of the embedded costs. NSPI asserts that acc...

AI summary NSPI's economic analysis shows a favorable NPV of $4.9 million for a capital project compared to the SkyPower PPA, but this changes when using a comparable output level. The use of P50 versus P90 assumptions in energy production forecasts is discussed, with the Board expressing hesitation to make a general ruling on the matter.

CONCLUSION If the Board is satisfied with the P50 assumption such that the economic analysis is in favour of this project, then subject to the disallowances recommended, the Avon Group does not object to NSPI's request for approval of thes...

AI summary The Avon Group does not object to NSPI's capital expenditures request if the P50 assumption is valid, but requests a report on its validity, disallowance of the affiliate bonus and $1.5 million contingency, and submission of final costing net of these sums.

pectfully, that the question falls into the fold as that old saw "When did you stop beating your wife?" It can't be answered. Bids from others were available and the bid chosen was below all of them. The practice of using the bid evaluatio...

AI summary The text discusses concerns about the bid evaluation process in procurement, arguing that asking bidders to adjust their offers after the fact undermines the integrity of the process. It emphasizes the importance of fair competition and adherence to best practices in contract management, suggesting consultation with industry experts and reviewing contract terminology for alignment with long-term best practices.

pplication. As a result, the project economics are more 9 favourable than originally suggested. The NPV is improved by $1.5 million and the levelized costs are lower by $1.79/MWh. 3 10 11 12 NSPI's financial analysis provided with its Appl...

AI summary NSPI's financial analysis for its application shows improved project economics due to updated assumptions, including higher production levels and lower costs. The NPV is improved by $1.5 million, and levelized costs are reduced by $1.79/MWh. These updates reflect more favorable outcomes than originally suggested.

10 Exhibit N-8, NSPI Revised Code of Conduct governing Affiliate Transactions, as approved by UARB order dated February 24, 2009, section 7.6. PPA between NSPI and 324 NSL (as assignee of SkyPower Corp.) License to Use Assets and Option Ag...

AI summary The document references Exhibit N-8, the NSPI Revised Code of Conduct for Affiliate Transactions, approved by the UARB in 2009. It outlines an affiliate transaction involving a PPA between NSPI and 324 NSL, as well as a transmission line construction project. The transaction triggers Section 6.10 of the Code of Conduct, and NSPI notified the UARB of its intention to file a capital work order for the project.

the April of 2010, prior to purchasing the Project from 324 NSL, NSPI required that 324 NSL engage CBCL to reestimate the scope of work, accounting for updated pricing, the new turbine layout and _ & lt;sup>11 NSPI Application, Appendix 3,...

AI summary In April 2010, NSPI required 324 NSL to engage CBCL to reestimate the Project's scope of work, considering updated pricing and turbine layout changes. The revised estimate showed reduced costs for civil works and the substation, while turbine-related costs remained unchanged. NSPI adjusted SkyPower tender results based on these estimates and found the EUS price to be significantly lower.

1 2.0 SUMMARY AND REQUEST FOR PROJECT APPROVAL 2 3 By this Application, Nova Scotia Power Inc. seeks approval from the Utility and Review 4 Board for four capital work orders: 5 6 1. CI 39323, Digby Wind Project, in the amount of $70.8 mil...

AI summary Nova Scotia Power Inc. (NSPI) seeks approval from the Utility and Review Board for four capital work orders totaling $82.8 million for the Digby Wind Project. The project is economically justified, providing lower costs and positive NPV compared to original proposals. NSPI asserts that affiliate transactions comply with the Code of Conduct and have preserved benefits for customers.

3 On January 14, 2011, Nova Scotia Power Inc. (NSPI, the Company) and the intervenors 4 filed their closing submissions in this proceeding. 6 On behalf of customers, NSPI has worked diligently and in the interests of customers to 7 comply...

AI summary Nova Scotia Power Inc. (NSPI) and intervenors submitted closing arguments supporting the inclusion of the Digby Wind Project in the utility rate base. NSPI asserts the project was completed on time and under budget, with no opposing evidence challenging its value. All intervenors support approval of the capital work order.

1 3. The regulatory process includes a final costing. 2 3 The Avon Group has referred to a contingency amount found in the revised CBCL 4 engineering estimate. The Avon Group states, on page 6, that given construction has 5 come in under b...

AI summary The Avon Group requests disallowance of $1.5 million from the CBCL engineering estimate, but NSPI argues that CBCL's estimate is not part of its capital costs. NSPI emphasizes that contingency planning is prudent and that the final costing will be filed with the UARB for approval, reflecting actual incurred costs.

22 4.0 CONCLUSION 23 24 NSPI has brought forward a low cost renewable project which is required for 2013 RES 25 compliance. NSPI's evidence confirms that its actions and those of its affiliates have 26 preserved the value in an otherwise f...

AI summary NSPI has completed a low-cost renewable energy project ahead of schedule and under budget, benefiting customers. The affiliate transactions associated with the project align with the Code of Conduct, which emphasizes demonstrable benefits to customers. NSPI requests approval for a $82.8 million capital expenditure and confirmation of compliance with the Code of Conduct.

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and- IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Substation ($...

AI summary Nova Scotia Power Incorporated has applied for approval of capital work orders related to the Digby Wind Project, including substation, network upgrades, and interconnection, with a total cost of approximately $82.77 million.

ORDER BEFORE: Margaret A. M. Shears, a.c., Vice chair Kulvinder S. Dhillon, P. Eng., Member .Roberta J. Clarke, a.c., Member WHEREAS Nova Scotia Power Inc. ("NSPI") made Application to the Nova Scotia Utility and Review Board (the "Board")...

AI summary The Nova Scotia Utility and Review Board approved Nova Scotia Power Inc.'s application for the Digby Wind Project, subject to a $3 million reduction in costs. This includes disallowing a $1 million bonus payment to an affiliate company and further reductions based on final construction costs.

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and· IN THE MATTER OF AN APPLICATION by Nova Scotia Power Incorporated for approval of capital work orders CI# 39323, Digby Wind Project ($70,758,698); CI# 39626, Digby Wind Project Substation ($...

AI summary Nova Scotia Power Incorporated applied for approval of capital work orders for the Digby Wind Project, totaling $82,771,360. The application was approved but with reductions: $1 million from a bonus payment to an affiliate and up to $2 million based on final construction costs.

just and reasonable. RS., c. 380, s. 52 - [3] NSPI is a regulated public utility and is the successor to Nova Scotia Power Corporation, a Crown Corporation which was privatized in 1992. As of January 1, 1999, NSPI became the principal subs...

AI summary NSPI, a regulated public utility and successor to a privatized Crown Corporation, is required to seek Board approval for capital expenditures over $250,000. These expenditures are included in the rate base, which influences the rates charged to customers. The Board has implemented procedural changes to increase transparency and public comment on capital work orders.

II BACKGROUND [8] On April 16, 2010, NSPI filed a letter with the Board requesting that: NSPI seeks to confirm that the UARB has no objection to NSPI continuing with project construction, pending the Capital Work Order review and approval...

AI summary In 2010, NSPI requested the Board's confirmation to proceed with the Digby project construction before the Capital Work Order review. The Board responded, referencing a previous case, stating it had no objection to NSPI undertaking advance expenditures at shareholders' risk, provided the affiliate transaction with 3240384 Nova Scotia Limited would be rigorously reviewed.

[73] Section 7.9 provides: 7.9 In the event that solicitation of third-party offers is not used for a Large Transaction, NSPI shall prepare a description of: (a) the justification for failing to use such solicitations, (b) a description of...

AI summary Section 7.9 of the Code requires NSPI to justify not using third-party solicitations for Large Transactions and to detail the process for choosing affiliates. The Board questions whether NSPI's payment of a bonus to EUS subsidizes affiliate activities, violating fair dealing principles. The Board also notes that the bonus was not for early completion but for on-time completion, and finds that the EUS contract does not comply with the Code, though it may consider approving the capital expenditure.

3) Did the May 28, 2010 transaction between NSPI and 324 NSL comply with the Code? [79] The transaction by which NSPI acquired the DWP from 324 NSL is a complex one. It must be examined as a whole. The same fair dealing principles and proc...

AI summary The transaction by which NSPI acquired the DWP from 324 NSL is deemed non-compliant with the Code. However, due to the unique circumstances of the Project, the Board approves the capital expenditure with a reduction in costs.

ob, that's what I try to do every day and that's what we're trying to do here. We're trying to put this project in service in a way that brings the best value to customers. [Transcript, pp. 183-190] [98] While the Board is prepared to appr...

AI summary The Board has approved capital expenditures but with conditions, specifically disapproving a $1 million payment to EUS due to concerns over affiliate transactions. The Board also evaluated fees paid to EES, finding them justifiable despite recommendations to disallow them. The compliance of the EUS transmission line contract with the Code is under review.

t is re-capitalized and the value of the infrastructure will have a useful life beyond the term of the PPA. This would result in certain assets being recapitalized a number of times. Mr. Bennett said: In the case of a utility owned project...

AI summary The discussion focuses on the financial implications of re-capitalizing infrastructure at the end of a Power Purchase Agreement (PPA) term. Mr. Bennett highlights that while recapitalization may occur, the infrastructure will have a useful life beyond the PPA term, and customers will have already realized value from the initial investment. The Board concludes that any advantages of a PPA are offset in this case.

Submissions - Intervenors [133] Avon commented on the embedded costs in the overall cost of the DWP and their affect on NPV and levelized energy cost: Since the time of the filing, NSPI entered into an Operation Support Agreement with GE,...

AI summary Avon Group comments on the DWP project's embedded costs and their impact on NPV and levelized energy cost. NSPI has updated its costs, but Avon argues that using the PPA's output level results in the original PPA being more economically favorable. The Board acknowledges the use of P50 estimates but does not take a position on whether P50 or P90 should be used for future applications.