Topic:"Capital Expenditures" in M03632

Assumptions about Capital Structure and Costs in the Tariff Modeling W in d 0 k W 5 ≤ W in d 0 k W >5 Hy dr o B iom C H P as s T i da l Ca i l S ta tru tu p c re De b t % 5 0 % 5 0 % 6 0 % 6 0 % 0 Eq i ty u 5 0 % 5 0 % 4 0 % 4 0 % 1 0 0 %...

AI summary The text presents a table outlining assumptions about capital structure and costs in the tariff modeling for various energy sources, including wind, hydro, and biomass CHP. It includes details on debt and equity percentages, return on equity, interest rates, amortization periods, and other financial metrics.

Table A - In-Service projects $ 33,462 (Actual) Table B - Proposed Projects with PPAs $ 70,209 (Estimated) Table C - Proposed Projects without PPAs $ 107,464 (Estimated) Ta b le A In- Se ice rv p - j ts ro ec Pro jec t # util iza tion lev...

AI summary The text presents financial data on in-service and proposed projects, including costs for distribution projects with and without power purchase agreements. It outlines project numbers, utilization levels, equipment costs, and statuses, such as pending actions.

Table 1. Summary of Key Information from Modeling ($2012) W in d 5 0 k W ≤ W in d >5 0 k W B iom C H P as s Hy dr o T i da l S ( ) Pr j t ize M W o ec 0. 0 5 1. 5 2. 1 1 0. 5 $ Ca i ta l Co t ( ) p s $ 3 2 1, 6 7 4 $ 3, 7 7 9, 5 5 3 $ 8, 0...

AI summary Table 1 summarizes key information from modeling in 2012, including project sizes, capital costs, and financial metrics for various energy technologies such as wind, biomass CHP, hydro, and tidal. The table highlights differences in capital costs, revenue, and rates for each technology, with specific notes on biomass CHP calculations and COMFIT rates.

Existing Boiler Replaced in Year 10 in Steam-Only Scenario As t io su m p n S te -O ly am n Sc io en ar C H P Sc io en ar Ca lc la t io u n Pr j t Co ts o ec s Pr j de lop t t o ec ve m en $ 4 2, 1 3 4 $ 2 8 0, 2 8 0 In ion t a t p ss um p...

AI summary The document compares the costs of replacing an existing boiler in Year 10 under a steam-only scenario versus a CHP scenario. It outlines various costs including project development, boiler and turbine installation, emissions controls, and equipment installation.

The Effect of Steam Demand on the CHP Rate ($2012) S Ca i Fa te ty to am p ac c r 2 0 % 3 0 % 4 0 % 5 0 % 6 0 % $ / C O I R R 1 5 6 M W h M F I T Ra t te a 6. 0 % 7. 9 % 9. 6 % 1 1. 3 % 1 3 % C O M F I T Ra Ne de d fo 1 3 % I R R te e r $...

AI summary The document analyzes the effect of steam demand on the CHP rate in 2012, presenting a table with various percentages and costs associated with the COMFIT Model, including assumptions and financial details such as capital costs, reserves, and project costs.

03-01-2011 Nov a S ia C OM FIT Mo del cot Win d ≤ 50 kW Ca sh Flo w W ork she Top et: Syn e E aps xhi bit I Res Acc ts erve oun Res s Fu nde d As Par t of Cap ital C ost erve Beg innin g Ba lanc e Up- Fron t Ma inte ce R nan ese rve Ca Wor...

AI summary The text presents a table with financial data, including reserves, capital costs, working capital, and debt service reserves. It outlines various financial metrics and balances, indicating a focus on accounting and financial planning within a regulatory context.

Large Wind (Over 50 kW) Assumptions Notes: General Inflation Factor (revenue and expenses) 1 92% From NSPI 2009 IRP Update Capital Costs (Uses of Funds) 1.0270 Trom Nor 1 2000 INT Opudio Development $500,000 Equipment & Installation $2,565...

AI summary The document outlines the assumptions and financial details for a large wind project over 50 kW, including capital costs, financing structure, debt terms, and tax depreciation allocation. It provides a breakdown of project costs, reserve account sizing, and the capital structure with a 50% debt and 50% equity split.

Total Nov a S ia C OM FIT Mod el cot Lar Win d C ge ash Flo w W ork she et: Top Syn aps e E xhi bit J Less : Ma jor M ainte e Sp endi nanc ng Less : Ma jor M ainte e Re e Fu ndin nanc serv 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0...

AI summary The document presents a table with financial data, including major maintenance spending, principal, and interest figures, spanning multiple years. The data appears to be related to capital expenditures and financial obligations.

Scenarios in $2012 Va lue fo r S On ly tea m- Gr s V alu e f CH P os or Ne t V alu e f CH P or Co t mp on en Sc ari en o Sc ari en o Sc ari en o Pro jec t d elo t ev pm en $ 42 13 4 , $ 28 0, 28 0 $ 23 8, 14 6 $ Bo ile r in lled ( ) sta st...

AI summary The document presents a table with various cost components and scenarios from 2012, including project development, boiler and turbine costs, emissions controls, and other expenses. The data reflects different scenarios with varying values for each category.

Pre-Tax Internal Rate of Return 13.79% Nova Scotia COMFIT Model Biomas s Cash Flo w Worksh eet: Botto m ; Synapse E Exhibit K Debt Service Coverage Ratio 1.8 2 1.80 1.77 1.75 1.72 1.69 1.67 1.64 1.61 1.58 1.55 1.57 1.54 1.51 1.48 .65 .48 R...

AI summary The document presents a Pre-Tax Internal Rate of Return of 13.79% and includes data from the Nova Scotia COMFIT Model, showing Debt Service Coverage Ratio values and details about Reserve Accounts and Working Capital.

Synapse Exhibit L Assumptions: Notes: Operating Inputs Net Generator Capacity (MW) 1.00 Energy Production: Net Capacity Factor Net of plant availability and other loss factors Net Output in MWhs 4,818 Annual Operating Expenses Annual Fuel...

AI summary This exhibit outlines financial and operational assumptions for a project, including net generator capacity, annual operating expenses, revenue assumptions, and tax rates. It includes details on fuel costs, maintenance, and tax implications, as well as metrics such as the 20-year equity IRR and debt service coverage ratio.

In-Stream Tidal NOVA SCOTIA COMFIT MODEL in-Stream I idai Assumptions 1 000/ Notes: General Inflation Factor (revenue and expenses) 1.92% From NSPI 2009 IRP Update Capital Costs (Uses of Funds) #050.000 Development $950,000 Equipment & Ins...

AI summary The document outlines the financial assumptions and cost breakdown for an in-stream tidal project in Nova Scotia, including capital costs, financing structure, depreciation allocation, and initial reserve account sizing. The project is fully funded by equity with no debt or grants.

Synapse Exhibit M Assumptions: Notes: Major Maintenance Reserve Funded Through Opera Beginning Balance Funding Release of Funds Ending Balance ations . 0 11,456 0 11,456 11,456 11,456 0 22,912 22,912 11,456 0 34,367 34,367 11,456 0 45,823...

AI summary The document presents assumptions and notes related to the Major Maintenance Reserve, including beginning balances, funding, release of funds, and ending balances across multiple occurrences. It outlines financial figures associated with maintenance costs and fund management.

- 17. In"1984, when"my"father"and"I"financed"and"built"Black"River"Hydro"Limited's" hydro"plant,"we"were able"to"do so solely based"on"the"fact"that"at"that"time" we"could"borrow"90%"of"the"required"capital.""This"was"in"part"because" Fede...

AI summary The text discusses the challenges of financing renewable energy projects in Nova Scotia, highlighting the lack of government programs that supported small business banking in the 1980s. It contrasts the current situation, where banks only offer 50-60% loans, requiring more equity, and the difficulty in securing returns for investors. The author argues that the COMFIT policy hinders entrepreneurship in renewable energy.

Yearly$Costs$and$Financial$Structure: - ! 60%"debt @"8%"=""$3"million""for"15"year"(approx."yr.)""""""""""""$"""345,000/yr."" - ! Reserve"Fund :"one"year"of"costs"$675,000,"100%""borrowed" as"part"of"finance,"plus"finance"fees"="$700,000"@...

AI summary The document outlines the yearly costs and financial structure for a project, including debt, reserve fund, outside equity, operating costs, and miscellaneous expenses, totaling $775,000 per year before any profit share for the CEDIF.

2nd model example: - ! If"outside"equity"sourced"@15%"! (which"is"impossible"to"find) ="$150,000"year" - ! then"CEDIF gets"$50,000,"minus"admin."costs,"taxes"etc."which"will"be"a"minimum" $20,000."year,"so"$30,000"can"be"given"to"sharehold...

AI summary This example illustrates a financial model where CEDIF's investment generates returns for shareholders, factoring in administrative costs, taxes, and dividend distribution, resulting in a 2% return on a $1.1 million investment.

n financing costs at a rate of 10 %. STFX believes the construction financing period should be for a period of 2 years which more appropriately reflects the time required to construct a CH&PB project. Federal Tax Rate The Boards consultant...

AI summary STFX challenges the Board's assumptions regarding CH&PB project financing, tax rates, and technology considerations. STFX argues for a 2-year construction financing period, a 16.5% federal tax rate (vs. Board's 15%), and inclusion of gasification technology benefits in the Comfit. STFX commits to participating in hearings.

- A BFB Boiler Budget Price - B Steam Turbine Budget Price - C Financial Analysis

AI summary The text lists items related to a financial analysis, including the budget prices for a BFB Boiler and a Steam Turbine.

1 EXECUTIVE SUMMARY The purpose of this report is to evaluate the feasibility of installing an 8 MW gross (7 MW net) biomass cogeneration system in Antigonish. This system would supply electricity to the grid as well as steam to the existi...

AI summary This report evaluates the feasibility of installing an 8 MW biomass cogeneration system in Antigonish, Nova Scotia. It outlines technical and economic considerations, including a 13% return on equity if electricity is sold at 0.213$ per kWh. The report also highlights benefits such as local job creation and reduced dependence on fossil fuels, and references the use of high-efficiency boilers and sensitivity analyses around fuel costs and electricity prices.

Table 1 Capital Cost Summary – Cogeneration Plant 8 MW COGENERATION PLANT CAPITAL COST SUMMARY Boiler – B&W Bubbling Bed $ 12,720,000 Steam Turbine Generator $4,929,000 Condenser $ 1,060,000 Cooling Tower $ 424,000 Water Treatment $ 398,00...

AI summary The document presents a capital cost summary and financial results for a cogeneration plant. The total capital cost is $36.818 million, and the financial summary indicates that the cogeneration option could be feasible if electricity is sold at $0.213 per kWh.

COMMENTS - .1 Scale. At 8 MW (7 MW net) electrical output, the specific capital cost is high. This plant will cost approximately $4,500,000 per 1 MW electrical output. Larger biomass plants can be built for $1.5 - $2.0 million per MW. - .2...

AI summary The comments highlight the high specific capital cost of the biomass plant at $4,500,000 per 1 MW electrical output, the high operating labour costs due to 24/7 staffing requirements, and the potential high cost of fuel, as whole tree chips may not be available and sustainable hardwood is expensive. A sensitivity analysis was conducted on fuel cost, electrical sale price, and capital contribution.

4.3 General Criteria for Options All options chosen for comparative analysis had to meet the following criteria: - available as new equipment from commercial vendors; - low emission combustors; - high overall efficiency; and - reasonable c...

AI summary The general criteria for options include availability from commercial vendors, use of low emission combustors, high overall efficiency, and reasonable capital costs.

6 FINANCIAL FEASIBILITY ANALYSIS – COGENERATION

AI summary This section of the document discusses the financial feasibility analysis of cogeneration, focusing on the economic viability and potential return on investment for cogeneration projects.

6.2 Cost Estimate The following is the capital cost estimate for the 8 MW cogeneration plant. The breakdown of costs below includes budget pricing on major equipment such as the boiler, steam turbine and condenser. All prices are in Canadi...

AI summary This section provides a capital cost estimate for an 8 MW cogeneration plant, including budget pricing for major equipment such as the boiler, steam turbine, and condenser, with all prices listed in Canadian dollars and taxes not included.

Table 7 Capital Cost Estimate 8 MW COGENERATION PLANT CAPITAL COST SUMMARY Boiler – B&W Bubbling Bed $ 12,720,000 Steam Turbine Generator $4,929,000 Condenser $ 1,060,000 Cooling Tower $ 424,000 Water Treatment $ 398,000 Boiler Feed Pumps...

AI summary Table 7 presents a detailed capital cost estimate for an 8 MW cogeneration plant, including components such as the boiler, turbine, condenser, and other infrastructure, with a total estimated cost of $36,818,000. Section 6.3 discusses the financial analysis results related to this project.

The financial analysis indicates that at current and projected fuel and electricity costs a biomass fired cogeneration plant is a marginal investment. The assumptions for the financial analysis are: - Plant Life 20 Years; - Capital costs d...

AI summary The financial analysis suggests that a biomass-fired cogeneration plant is a marginal investment under current and projected fuel and electricity costs, with assumptions including a 20-year plant life and excluding land costs from capital expenses.

7 CONCLUSIONS AND RECOMMENDATIONS Biomass cogeneration is a well established technology that is widely used in industrial applications such as pulp and paper mills and sawmills where an abundant and cheap source of biomass is available as...

AI summary The document discusses the feasibility of a biomass cogeneration plant, highlighting its economic and environmental benefits, including job creation and reduced dependence on fossil fuels. It outlines a preliminary business model and indicates that the project could be viable at a 13% Return on Equity with specific pricing assumptions for electricity and thermal energy.

SCOPE OF SUPPLY BY B&W The scope of supply is as follows for either boiler unless noted: - Pressure parts including membrane furnace, boiler bank & drums - BFB combustor c/w hoppers - Air pipes and bubble caps - Air swept spouts c/w balanc...

AI summary The document outlines the scope of supply by Babcock & Wilcox Canada (B&W) for boiler systems, including components such as pressure parts, combustion systems, valves, and installation services. The scope covers various parts of the boiler and associated systems.

100.0% Total annual revenue - amount in A/R at end of year 50 8.3% 4 Capital Costs Non depreciable Depreciable 0 36,818,040 Total 36,818,040 Depreciation Rates - Straight line - years 30.0 Capital Additions Year -Depreciation on capital ad...

AI summary The text presents a detailed breakdown of financial and capital-related data, including total annual revenue, capital costs, depreciation rates, financing structures, debt terms, and corporate tax rates. It outlines the distribution of capital costs between debt and equity, interest rates on loans, and the timeline for debt repayment.

justment and shared-savings incentive mechanisms for Union Gas DSM programs. Standards for review of targets and achievements, computation of lost revenues. Need for DSM expenditure true-up mechanism. 177. NY PSC 99-S-1621; Consolidated Ed...

AI summary The text discusses regulatory proceedings related to energy and utility matters, including DSM programs, rate adjustments, mergers, and asset sales. It references various regulatory bodies and proceedings, focusing on topics such as cost allocation, rate design, and performance-based ratemaking.

NOTE: Green Fields are the assumptions differences which we believe to bee more reasonable. TEMPLATE COMPARISON TO CBCL ST> FX BIOMASS REPORT CBCL MODEL CBEX MODEL EXHIBIT-B-5 Boiler Steam Turbine Generator Condenser Cooling Tower Water Tr...

AI summary The document presents a comparison between the CBCL model and the CBEX model in relation to a biomass report, highlighting differences in assumptions and costs for various components of a boiler system. The CBEX model includes contingency costs, while the CBCL model does not.

1. The text above is taken from an email of February 9, 2011 from Synapse to Jonathan Barry of Seaforth Energy which included a Word document attachment, the text of which appears exactly as above. Nova Scotia Utility & Review Board FIT Mo...

AI summary The document outlines the assumptions and financial details for a small wind project under the Nova Scotia Utility & Review Board FIT Model. It includes capital costs, operating expenses, inflation factors, and energy production estimates.

Dear Mr. Christmas: We understand that you are making a submission to the Nova Scotia Utility and Review Board (UARB) on behalf of the Assembly of Nova Scotia Mi'kmaq Chiefs in relation to the hearing to determine Renewable Energy Communit...

AI summary The submission to the UARB by the Assembly of Nova Scotia Mi'kmaq Chiefs seeks comments on the proposed capital structure for wind projects on reserve lands. The consultants suggest a 50% debt to 50% equity ratio, but the Indian Act's regulations on First Nation property may affect the ability to secure financing on these lands.

Legislation for Financial Institutions in Canada There are also several pieces of legislation that are specific to the financial services industry that have to be considered in developing the structure of an Aboriginal financial services i...

AI summary This text outlines the legislative and regulatory framework governing financial institutions in Canada, particularly for Aboriginal groups. It highlights key legislation such as The Bank Act, The Trust and Loan Companies Act, and compliance requirements enforced by OSFI. The discussion emphasizes the complexity of starting a bank or trust company and the importance of meeting capital and liquidity requirements.

Operation and Maintenance Scotian WindFields Inc believes that the operation and maintenance costs assumed for small wind are too low. While the figures included in the models may be accurate for the physical maintenance required on the tu...

AI summary Scotian WindFields Inc. argues that the operation and maintenance (O&M) costs for small wind projects in the COMFIT program are underestimated, as they do not include site maintenance, land leases, and administrative costs. They recommend increasing O&M costs to 1.8% of capital costs, which is still below the standard range of 2%-4%.

Q. WHAT ARE YOUR FINDINGS AND RECOMMENDATIONS? A. Synapse assumed 60% debt 1 , 9.5% cost of debt 2 , and 13% after-tax cost of equity 3 . In my opinion it is unrealistic to assume such a project will secure 60% of its financing through deb...

AI summary The expert recommends adjusting the capital structure and return on equity assumptions for a biomass CHP project, arguing that 60% debt financing is unrealistic and suggests 100% equity. A 17.5% return on equity is recommended without an effective fuel cost hedge, or 13% with one.

DEBT-EQUITY RATIO

AI summary The section introduces the topic of the debt-equity ratio, which is a financial metric used to assess a company's leverage and financial health. It is relevant in regulatory proceedings as it impacts cost-of-capital considerations and rate-setting decisions.

Q. WHAT IS THE BASIS FOR YOUR OPINION THAT 100% EQUITY IS REALISTIC FOR A 2.0 MW BIOMASS CHP PROJECT? A. Synapse assumes a capital structure that is 40% equity and 60% debt for a 2.0 MW biomass-fired facility. 4 Due to the risks of biomass...

AI summary The response argues that a 100% equity capital structure is realistic for a 2.0 MW biomass CHP project due to the risks and small size of the facility, while questioning the viability of debt financing. Synapse proposes a fuel cost index, but B&Co doubts its effectiveness in mitigating fuel cost risk.

ect. Legal costs are substantial due to the many agreements and permits that need to be evaluated and negotiated or obtained. The costs of this analysis often cripple the economics of a small project. Synapse found that: " Project size may...

AI summary Legal costs are significant for small biomass CHP projects due to the complexity of agreements and permits. Synapse found that project size may deter lenders, as their minimum lending thresholds are often above the scale of such projects. Large lenders typically avoid smaller deals, with B&Co noting that projects under $50 million are often passed over.

COST OF EQUITY

AI summary The section titled 'COST OF EQUITY' introduces the topic of determining the appropriate cost of equity for regulatory proceedings. It sets the stage for discussions on return on equity, capital expenditures, and other financial considerations relevant to utility regulation.

Q. DO YOU AGREE WITH SYNAPSE'S JUSTIFICATION FOR RECOMMENDING 13% RETURN ON EQUITY? A. No. There are flaws in the logic above. Although the bases for Synapse' assertions are not clear, asserting that either size or "financing off a balance...

AI summary The respondent disagrees with Synapse's recommendation of a 13% return on equity for CHP biomass projects, citing flaws in financial logic. They argue that the cost of equity should be based on project risks, not financing methods or balance sheet status. They also question the effectiveness of indexing and note that fuel risk significantly impacts lenders' returns.

Q. WHAT IS CAPM AND YOUR CAPM-RELATED EVIDENCE? A. Although it is based on strong assumptions and the subject of much controversy, the capital asset pricing model ("CAPM") is an often-employed theoretical method of estimating the cost of e...

AI summary The response explains the Capital Asset Pricing Model (CAPM), which is used to estimate the cost of equity. It notes that while CAPM is widely used, it is based on strong assumptions and is controversial. The NSUARB has previously considered CAPM-related evidence in rate approval proceedings. The speaker presents CAPM evidence for completeness but considers market-based evidence more reliable.

Beta, ß: - A statistical measure that evaluates the risk of a particular security relative to the systematic risk of a market portfolio of stocks. When CAPM is employed to estimate an unlevered cost of capital, ß must reflect the underlyin...

AI summary The text discusses the use of beta (ß) in financial analysis, particularly in the context of biomass CHP projects. It highlights that beta values for companies in the forest, lumber, and housing industries tend to be high, while utilities have lower betas. Variability in biomass project EBITDA is influenced by fuel costs tied to these industries.

Q. WHAT IS THE BASIS FOR YOUR FINDING THAT 13.0% IS A REALISTIC AFTER TAX COST OF CAPITAL WITH A FUEL COST HEDGE? A. In addition to the analysis above, ANSS asked B&Co to evaluate the cost of capital for a biomass CHP project whose rate st...

AI summary The response explains that a 13.0% after-tax cost of capital is realistic for a 2 MW biomass CHP project with a fully effective fuel cost hedge. It references market data, risk adjustments, and Synapse's estimate. The analysis contrasts biomass projects with natural-gas fired projects and accounts for development and construction risks.

Q. WOULD YOU PLEASE SUMMARIZE YOUR FINDINGS? A. Yes. I disagree with Synapse' assumed 60% debt, 9.5% cost of debt, and 13% after-tax cost of equity. In my opinion, 100% equity is a realistic capital structure for 2.0 MW biomass CHP project...

AI summary The respondent disagrees with Synapse's assumptions about the capital structure and cost of capital for 2.0 MW biomass CHP projects, suggesting 100% equity is more realistic and a 17.5% after-tax average cost of capital is appropriate without an effective fuel cost hedge.

Q. Please summarize your recommendations and conclusions. - A. The following are general statements summarizing the more detailed explanations provided herein and in the attachements. - i. A condensing / extracting turbine model should be...

AI summary The recommendations include using a condensing/extracting turbine model for small steam users, splitting steam generation costs between users, adjusting Synapse's capital and O&M cost estimates, including parasitic load in the model, and correcting boiler efficiency from 80% to 69.9% for accurate fuel cost calculation.

Q. How should capital cost be allocated between the electricity generated and steam used for process heat? - A. We do not agree with the rationale that the base cost of the boiler should be borne solely by the steam host. The evidence pres...

AI summary The response argues against allocating the boiler's base cost solely to the steam host, suggesting instead that both the steam and electrical users should share the capital cost and fuel expenses. The rationale is based on the intent of the COMFIT program to promote renewable energy and the risk of relying on steam sales for revenue.

IV. CAPITAL COSTS

AI summary This section discusses capital costs, which are essential in evaluating the financial health and investment requirements of energy projects. It highlights the importance of accurately assessing and managing these costs to ensure sustainable and efficient operations.

Q. How did you develop the capital costs for a generic CHP facility? A. ESI ran detailed mass and energy balance models for the facility. Using this information we developed specifications and solicited quotes for the major pieces of equip...

AI summary ESI developed capital cost estimates for a generic CHP facility by using mass and energy balance models, vendor quotes, and historical data. The estimate includes engineering, procurement, construction, and overhead costs, with a total of $15,846,150 CAD. The accuracy range for the estimate is ±20% due to unknown site-specific conditions.

3 Table III: Capital Cost Comparison of Condensing / Extracting Facility Category Synapse ESI Delta Boiler Installed Cost 3,057,600 Foundations assumed incl 472,921 Steel assumed incl 660,210 Boiler assumed incl 1,718,000 Fans assumed incl...

AI summary The text discusses a capital cost comparison table for a condensing/extracting facility, highlighting differences between Synapse and ESI estimates. It notes that Synapse may have omitted or undervalued certain categories such as material handling systems, water treatment, and construction expenses.

In addition it appears that the contingency, engineering, project management, construction management, and EPC profit were not considered. These services are required for every project of this type and must be considered in the capital cos...

AI summary The text discusses the need to include contingency, engineering, project management, construction management, and EPC profit in the capital cost for a CHP project. It references exhibits H and I and provides a detailed calculation of the CHP cost per MW based on the ESI capital estimate and Synapse financing costs.

(condensing / extracting facility) Marwood Biomass CHP 16 FUEL HANDLING SYSTEMS (Misc) $102,705 $39,000 $141,705 $102,705 $39,000 $141,705 17 ASH HANDLING SYSTEMS $0 $30,000 $30,000 $0 $30,000 $30,000 18 WATER TREATMENT $140,250 $40,800 $1...

AI summary The document presents a detailed breakdown of costs for various systems and components related to the Marwood Biomass CHP facility, including fuel handling, ash handling, water treatment, storage tanks, and generating systems, with comparisons between different cost estimates.

Exhibit H – Scope of Work for Capital Cost Estimate (condensing / extracting facility)

AI summary This exhibit outlines the scope of work for a capital cost estimate related to a condensing or extracting facility.

General Scope ESI has made an effort to minimize capital cost and maximize conservative equipment selection for this project. We have selected equipment from manufacturers who are industry leaders in the design and manufacture of industria...

AI summary ESI has prioritized minimizing capital costs and selecting conservative equipment for a combined heat and power generation facility, ensuring long-term reliability and efficiency. Equipment is sourced from industry leaders, with design parameters optimized for performance and longevity.

Capital Estimate Once this determination was made, ESI ran detailed mass and energy balance models for the facility. Using this information ESI developed specifications and solicited quotes for the major pieces of equipment. The balance of...

AI summary ESI developed a capital cost estimate for a biomass facility using vendor quotes and historical data, acknowledging ±10% accuracy for equipment and ±20% for construction. Due to unknown site conditions, the estimate is considered ±25% for risk analysis.

Plant Description The Option 1 plant design utilizes a backpressure turbine to generate power and deliver process steam to the host. This eliminates the capital cost of the equipment associated with a condensing turbine (surface condenser,...

AI summary The Option 1 plant design uses a backpressure turbine to generate power and provide process steam, reducing capital costs but limiting power generation when process steam is not needed. It also results in a 20% lower boiler steam output compared to Option 2, affecting auxiliary equipment sizing and cost.

General Scope ESI has made an effort to minimize capital cost and maximize conservative equipment selection for this project. We have selected equipment from manufacturers who are industry leaders in the design and manufacture of industria...

AI summary ESI has prioritized minimizing capital costs and selecting conservative equipment for a combined heat and power generation facility, ensuring long-term reliability and efficiency. Equipment is sourced from industry leaders, with design parameters optimized for performance and longevity.

CAPITAL COST ESTIMATE

AI summary The text introduces a section titled 'Capital Cost Estimate,' indicating the start of a discussion or analysis related to estimating capital expenditures.

Option 1 ESI, Inc. of Tennessee estimates the budget capital cost for the complete engineering, procurement, and construction of this new CHP facility as described herein, to be THIRTEEN MILLION, FOUR HUNDRED SEVEN THOUSAND, FOUR HUNDRED S...

AI summary The estimated budget capital cost for the new CHP facility, as provided by ESI, Inc. of Tennessee, is $13,407,470 CAD, with a spreadsheet detailing the approximate cost breakdown of the EPC estimate.

Option 2 ESI, Inc. of Tennessee estimates the budget capital cost for the complete engineering, procurement, and construction of this new CHP facility as described herein, to be FIFTEEN MILLION, EIGHT HUNDRED FORTY-SIX THOUSAND, ONE HUNDRE...

AI summary ESI, Inc. of Tennessee provides an estimate of the capital cost for the construction of a new CHP facility, totaling $15,846,150 CAD. A spreadsheet is referenced for a detailed cost breakdown of the EPC estimate.

Capital Cost Estimate Page VI-1 Marwood Biomass CHP Option 1 ‐ Backpressure Option 2 ‐ Condensing/Extracting BREAKDOWN EQUIP $ LABOR $ TOTAL $ EQUIP $ LABOR $ TOTAL $ 1 SITEWORK $25,392 $0 $25,392 $30,861 $0 $30,861 2 CONCRETE AND FOUNDATI...

AI summary The document presents a capital cost estimate for two options of a biomass combined heat and power (CHP) project, detailing equipment and labor costs for various components such as site work, concrete foundations, plumbing, steel structures, HVAC, and emissions control systems.

ASSUMPTIONS AND CLARIFICATIONS - 1. ESI has not included use taxes, property taxes, or Owner's insurance as part of this project budgetary pricing. We assume owner will provide this information. - 2. ESI assumes that the site is level with...

AI summary The document outlines various assumptions and clarifications made by ESI regarding the project budget, including the exclusion of certain taxes, site conditions, utilities, and environmental compliance measures. It highlights the assumptions made about site access, soil conditions, and the availability of resources during construction and commissioning.

Q. Were there any particular concerns identified by ANSS in its submissions to Synapse in the development of a biomass CHP tariff? A. Yes. We outlined at the outset that current information on capital cost, fuel supply, O&M estimates and o...

AI summary ANSS expressed concerns about the development of a biomass CHP tariff, emphasizing the importance of accurate capital cost, fuel supply, and O&M estimates. They noted that fuel supply risk is the largest risk to CHP plants and plan to conduct an engineering study with a Nova Scotia-based firm to determine generation costs.

A. In part. - 1. Significant components of the capital cost estimate for the CHP plant appear to be missing from the Synapse estimate as identified in the ESI Study. - 2. Costs for producing the extraction steam in the Synapse model are fu...

AI summary The document outlines several discrepancies and recommendations regarding the capital cost estimate for a CHP plant. Key issues include missing components in the Synapse estimate, incorrect allocation of steam costs, absence of parasitic power losses, and overestimation of boiler efficiency. ANSS provides alternative figures and recommends adjustments to financing assumptions and equity cost based on expert testimony.

Q. How does the Synapse capital cost estimate compare with the ESI estimate in its Study? A. The ESI Study evaluates a 2.414 MW condensing turbine while the Synapse analysis is for a 2.05 MW condensing turbine, therefore, an adjustment is...

AI summary The Synapse capital cost estimate for a 2.05 MW condensing turbine is significantly lower than the adjusted ESI estimate for a comparable turbine, due to Synapse omitting several items in its calculation, as noted by ESI.

Q. What did ANSS do to address the financial variables in the CHP COMFIT model? A. We met with individuals from Scotia Capital to obtain their advisement regarding the financing of a biomass CHP plant at the proposed scale. Scotia Capital...

AI summary ANSS sought advice from Scotia Capital regarding financing a biomass CHP plant but was advised that the project was too small for Scotia Capital to finance. They were recommended to consult Bodington & Company, and Jeff Bodington was retained to provide investment banking services related to the project.

Evaluation of Criteria for FIT Rate Model In determining how the model should be developed to calculate the COMFIT rate for the various technologies, we believe the model should be developed with a reasonable level of detail to ensure that...

AI summary The document discusses the development of a FIT rate model for COMFIT technologies, emphasizing the need for detailed models that reflect actual costs and considering project size limitations. It argues for separate models for different technologies due to varying risks and financial considerations.

Data Sources The Vermont model appears to provide reasonable sources to derive data for the model. It is important that capital cost estimates, O&M costs, capital structure estimates, borrowing rates and all other variables are drawn from...

AI summary The text discusses the importance of using current and local data for modeling, particularly for Combined Heat and Power (CHP) generation costs in Nova Scotia. It outlines plans to conduct an engineering study with a local firm and consult the Canadian financial community and the forestry industry to determine key parameters such as fuel costs and capital structure.

Capital Structure The capital structure will vary based on the different technologies and their respective levels of risk. Lower risk technology such as wind will presumably require lower levels of debt than a biomass CHP plant that has a...

AI summary The capital structure of energy projects depends on the technology's risk profile, with lower-risk technologies like wind requiring less debt than higher-risk projects like biomass CHP. Canadian lenders, particularly those involved in Ontario FIT projects, are recommended for guidance on appropriate capital structures.

ANSS IR 10. Reference p.10, preconstruction development costs (cell B5) Please describe all factors and data reviewed to estimate these costs including environmental engineering consultation, environmental impact study, site selection, con...

AI summary The entity provided a preliminary estimate of preconstruction development costs as 20% of Equipment and Installation costs, acknowledging that detailed research was not conducted prior to draft rate distribution. They are now researching these costs with stakeholders.

ANSS IR 11. Reference p.11, (cell B44 and Tax Depreciation Worksheet) - (a) Why is it assumed that biomass CHP plants benefit from accelerated depreciation while other technologies do not? - Answer: The biomass CHP rate was calculated assu...

AI summary The document addresses depreciation assumptions for biomass CHP projects under COMFIT, insurance cost assumptions for COMFIT projects, and the allocation of steam-related costs between host facilities and electric ratepayers. Answers clarify that accelerated depreciation applies to taxable corporations, insurance costs are based on preliminary data, and some steam benefits may be shared with ratepayers.

Table 1. Components of Equipment and Installation Costs Component Cost Turbine $450,500 Balance of electric plant $360,400 Installation $81,090 Interconnection $110,000 Total $1,001,990 (b) Provide all underlying data, variables, numbers a...

AI summary The document presents Table 1, which outlines the equipment and installation costs for a project, including turbine, balance of electric plant, installation, and interconnection. It also requests underlying data, variables, numbers, and assumptions regarding the O&M cost estimate from the FIT Model, line 20.

2. Investment 2.1. The final investment 2.6 million CAD / MW, even if a market base, would be more of a utility sized unitary investment benchmark value. We would suggest to use at least a 2.8 overall investment assumption 2 .

AI summary The text discusses an investment benchmark of 2.6 million CAD per MW, suggesting a higher assumption of at least 2.8 million CAD per MW for a utility-sized unitary investment.

Capital Structure 3.2. Assumption 40/60 "equity/debt" could be reachable with loan guarantees but slightly aggressive for a 1.5 MW wind farm

AI summary The text discusses the assumption of a 40/60 equity/debt capital structure for a 1.5 MW wind farm, noting that it may be achievable with loan guarantees but is considered slightly aggressive.

7.2. After introducing the aforementioned considerations to the worksheet3 we would obtain the following tariff values for "Large Wind": After Tax Return (year 20) Pre-Tax Return (year 20) Feed in Tariff (year 1) Escalation as of General I...

AI summary The text outlines the calculation of tariff values for 'Large Wind' in worksheet3, including financial details such as debt, equity, grants, interest rates, and depreciation allocations. It provides a breakdown of capital structure, debt terms, and tax depreciation allocation methods for a wind project.

Nova Scotia Utility & Review Board FIT Model Op ting Ye era ar 0 1 2 3 4 5 6 7 8 9 10 11 12 P& I 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , 268 708 , De bt S ice Co Ra tio...

AI summary The document presents a table outlining financial metrics for the Nova Scotia Utility & Review Board FIT Model over a 13-year period, including debt-service coverage ratios and capital costs. The data shows consistent figures for capital costs and fluctuations in the debt-service coverage ratio.

2. Interest During Construction – 20% is 'market' in NS The Synapse evidence on interest during construction is based on their own assumptions and does not cite any consultation with experienced providers of construction financing. Our exp...

AI summary The text argues that Synapse's assumption of a lower interest rate during construction is not aligned with the actual market rate in Nova Scotia, citing the Watt Section project's experience where a 20% interest rate was necessary due to the inability to secure traditional financing.

- 2. By and large, the tariffs proposed by Synapse stand up to financial analysis, and are in the right range to allow projects to be profitably developed. This is supported by evidence from projects in other jurisdictions throughout North...

AI summary The submission by E3 Analytics evaluates Synapse's proposed tariffs, acknowledging their financial viability but highlighting concerns, particularly regarding the equity weighting assumption and challenges in securing financing for renewable energy projects in Nova Scotia due to limited developer track records and capital availability.

Outline of Significant Differences Between the Synapse Model and ANSS Model In cell B6 we can see the single biggest and most influential difference between the two models in the capital cost estimates between Synapse and ESI. On a per MW...

AI summary The text outlines key differences between the Synapse model and the ANSS model, including capital cost estimates, handling of steam-only scenarios, financing assumptions, plant size, capacity factors, fuel requirements, O&M expenses, and overall COMFIT prices. These differences significantly impact the financial and operational analysis of the project.

- 4. If ESI performed a study to determine the capital cost and O&M costs for an 18,000 pph boiler than one could address all ofthe above issues. Nova Scotia COMFIT Model Biomass CHP (condensing turbi Assumptions 10.00 Notes: General Infla...

AI summary The text discusses a study by ESI to determine the capital and O&M costs for an 18,000 pph boiler, which could address several issues. The table provides details on the Nova Scotia COMFIT Model, including assumptions, project costs, capital structure, and debt terms related to a biomass CHP project.

Scenarios in $2012 Scenarios in $2012 Value for Steam-Only Shared Value Steam Gross Value for CHP Net Value for CHP Component Scenario Only Scenario Scenario Scenario Project development $42,134 $280,280 $238,146 Boiler installed cost ($)...

AI summary The document presents a table with various cost scenarios for 2012, including project development, boiler and turbine installed costs, emission controls, interconnection, maintenance reserves, and other expenses related to steam-only and combined heat and power (CHP) systems. The table outlines different financial components and their respective values for each scenario.

OPENING STATEMENT OF THE SYNAPSE CONSULTING TEAM Good morning Mr. Chairman, members ofthe Panel, other parties. We appear before you today to propose Community Feed-In Tariffs (COMFIT's). Our prefiled evidence presents our specific proposa...

AI summary Synapse Consulting proposes Community Feed-In Tariffs (COMFITs) with specific rates for wind, biomass CHP, hydro, and in-stream tidal projects. They developed the rates using a three-step utility ratemaking process, considering capital costs, operating expenses, and required revenues, and aligned their approach with relevant legislation and the Renewable Electricity Plan.

project costs. This allowed electricity to be generated at times when there was no use for the waste heat, while ensuring that use ofthe waste heat, a hallmark of CHP, was a significant "cost center." To convert investment costs and operat...

AI summary The text discusses the treatment of capital costs in COMFIT projects, emphasizing that capital is treated as a cost comparable to other project costs. It outlines the methodology used to determine capital structures and debt and equity costs, referencing Exhibit C and the influence of risk perception on different types of renewable energy projects.

The Alliance ofNova Scotia SawlnillersOpeningStatell1ent Mr. Chair, Melnbersofthe Board, thank you for opportunity to provide this Opening Statement...The ANSS is a group ofsawmillers in the province of Nova Scotia with an interestin the d...

AI summary The Alliance of Nova Scotia Sawmillers (ANSS) presents an opening statement emphasizing the need for a reasonable rate to support biomass combined heat and power (CHP) projects. They collaborated with ESI Tennessee and Mr. Jeff Bodington to analyze engineering and financing aspects of a small CHP plant in Nova Scotia.

ass power projects. Mr. Bodington was asked to take into consideration all ofthe variables for a small CHP plant in the 2MW range and to determine what the terms offinancing would be. Capital Cost TheANSSworkhas demonstrated two areasofsub...

AI summary The text discusses differences in capital cost estimates and financing terms for a CHP plant between ANSS and Synapse. ESI argues that Synapse's lower capital cost estimate is due to not accounting for balance of plant costs, while Synapse's boiler efficiency estimate is higher than ESI's. Other O&M expenses are also not included in Synapse's analysis.

Table 1 – Differences Between ANSS and Synapse Differences Between ANSS and Synapse Item ANSS Synapse Capital Cost ($/MW) $6.56 million $3.77 million Equity Assumption 100% at 17.5% 40% at 13% Debt Assumption 0% 60% at 9.5% Labour ($/yr) $...

AI summary The text compares the capital cost and financing assumptions between ANSS and Synapse, highlighting that these differences significantly impact the COMFIT rate for small-scale biomass CHP plants. ANSS aimed to establish an accurate cost to support the construction of these plants, supported by expert evidence and analysis.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , General Inflation Factor (revenue and expenses) 1 02% From NSPI 2009 IRP Update Capital Costs (Uses of Funds) 1.52% 1 1511 1401 1 2005 INF...

AI summary The document outlines the assumptions and financial details for a biomass CHP project with a condensing turbine and a new boiler in a steam-only scenario in year 10, including inflation factors, capital costs, and funding sources, which are all net of the steam-only scenario.

Scenarios in $2012 r S On Va lue fo ly tea m- Sh e S d V alu tea are m Gr CH s V alu e f P os or CH Ne t V alu e f P or De bt Clo sin Co & Fe sts g es $ 10 9, 64 6 $ 0 $ 0 C C Eq uity los ing & F ts os ee s $ 48 71 8 , $ 24 35 9 , $ 66 5,...

AI summary The text presents a table of financial scenarios from 2012, including values related to debt closure costs, equity losses, interest during construction, routine maintenance, ash disposal, water, sewer, and labor costs. These figures appear to be part of a financial analysis or planning process.

Mr. Pynn's Evidence Mr. Pynn suggests that large wind requires 10-year loan amortization, 20% interest during construction, equity "returns in excess of 20-30%," and a capital costs of $4.2 million, rather than Synapse's $3.7 million, base...

AI summary Mr. Pynn presents evidence that large wind projects require specific financial parameters, including 10-year loan amortization and high equity returns, citing the Watts Section CEDIF-financed plant as an example. He compares the Watts Section's costs and contract prices to Synapse's estimates, suggesting lower returns.

CAPTIAL COST· BALANCED CASE Chernick Data Synapse Cost Capital Total (MW) ($/kW) ($ Million) Smail Wind 5 6,427 32.1 Large Wind 50 2,520 126.0 Biomass CHP 20 3,92.6 78.5 Hydro 20 4,447 88.9 Tidal Q 10,079 50.4 Total 1QO 315,8

AI summary The table presents capital costs for various energy generation projects in Nova Scotia, including wind, biomass, hydro, and tidal, with total costs and per-kilowatt pricing. The data highlights the financial implications of different energy sources.

[86] This was explored by Keith Tawse, who in his reply argument stated: ...However, in cross-examination, (transcript of Hearings April 7th, 2011, pages 946-947), the Consumer Advocate was unable to provide any evidence as to the existenc...

AI summary Keith Tawse argues that without mechanisms to provide capital for large wind projects at less than market rates, Synapse's proposed rates should be accepted. Toby Couture suggests a return on equity of 13% is reasonable and that current tariffs are sufficient to attract investors.

9.3 Capital Costs [162] Synapse developed a capital cost of $7,888,608 for a Biomass CHP. ANSS developed a capital cost of $15,846,150 (increased to $16,150,398 in response to Undertaking U-10). ANSS analyzed the difference between the two...

AI summary Synapse and ANSS provided different capital cost estimates for a Biomass CHP project. ANSS identified five areas of material disagreement in their analysis.

[163] When Synapse was questioned by Ms. Rubin about these differences, they responded: - Q: ... the balance of the plant, the sewer, HVAC, pre-engineering, building, painting, fire protection, water treatment, storage tanks, air compresso...

AI summary The document discusses discrepancies in cost estimates for CHP projects between Synapse and ANSS, with Synapse noting uncertainty in actual costs and ANSS pointing out the inconsistency in Synapse's capital cost assumptions for a 2-megawatt project compared to a 25- to 40-megawatt project.

[177] As for DIE ratios Mr. Bodington stated: I'm saying that Canadian investors without some of the benefits of the U.S. will have to raise more equity, and that will make the project more costly. But that doesn't make a project impossibl...

AI summary Mr. Bodington discusses the challenges of financing biomass projects in Nova Scotia, emphasizing the need for equity over debt due to high cost of capital and the reluctance of sawmills to invest in side businesses. He also notes that smaller projects (e.g., 2 MW) are not economically viable under current rate schemes.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) Assumptions General Inflation Factor (revenue and expenses) 1.92% Notes: From NSPI 2009 IRP Update Capital Costs (Uses of Funds) 1.5270 Trom Nor 1 2003 INT Op...

AI summary This document provides a detailed financial breakdown of the Nova Scotia COMFIT Model for Large Wind (Over 50 kW) projects, including assumptions, capital costs, financing structures, debt terms, and reserve account sizing. It outlines the total project cost, capital structure, and various financial components such as development, equipment, interconnection, and maintenance.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Dep recia tion

AI summary The document appears to be a table from a regulatory proceeding, likely related to financial and accounting considerations, with references to Nova Scotia's Community Based Feed-in Tariffs (COMFIT) model and Large Wind projects. The table includes columns such as depreciation and cash flow, indicating financial analysis.

Page 2 Large Wind 8-2-11 taxed Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d, Tax abl e O wn er Res Ac nts erve cou Res s Fu nde d As Pa rt of Ca pita l Co st erve Beg innin g Ba lan...

AI summary The text presents a table related to financial accounting and capital costs for a wind energy project in Nova Scotia. It includes entries for reserves, capital expenditures, and debt service costs. The table appears to be part of a regulatory proceeding related to energy generation and financial reporting.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Capital Costs (Uses of Funds) 11.0270 r tom their 12000 in the opti...

AI summary This document presents a depreciation worksheet for a large wind project in Nova Scotia, detailing capital costs and related expenses such as equipment installation and interconnection fees. It is part of the COMFIT model used for financial and taxation purposes.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Res e A unt erv cco s Res s Fu nde d A s Pa rt of Ca ital Cos t erve p Beg inni Bala ng nce Up- F...

AI summary The text presents a cash flow worksheet for a small wind project, including figures related to capital costs, debt service reserves, and tax considerations. The data reflects financial planning and accounting for the project.

Page 2 Small Wind 8-2-11 taxed a S ia C Nov cot OM FIT Mo del Ca sh Flo w W ork she et: Bot tom Syn e C aps lian om p ce Sm Win all d T ble axa Ow ner Res Ac nts erve cou Res s Fu nde d As Pa rt of Ca pita l Co st erve Beg innin g Ba lanc...

AI summary The text presents a table related to financial and capital planning, including items such as capital costs, debt service, and reserves. It appears to be part of a financial analysis or planning document, likely associated with a utility or regulatory proceeding.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Closing Costs 247,420 (5% of loan value)

AI summary The document presents a depreciation worksheet for a small wind taxable owner in Nova Scotia, focusing on closing costs amounting to 247,420, which is 5% of the loan value.

Page 2 Biomass 8-2-11 85% availability no fuel Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto om Synapse Complian ice 85% A vailability No Fuel Less: Major Maintenance Reserve Funding (39,222) (39,222) (39,222) (39,222) (39,222) (39...

AI summary The text presents a financial analysis of a biomass project in Nova Scotia, showing cash flow figures, debt service coverage ratios, and reserve account balances. The data includes a COMFIT model with various financial metrics, such as cash available for debt service, P&I, and reserve accounts.

Biomass CHP Cost Scenarios Synapse Compliance 85% Availability No Fuel Capacity I act 013. Extraction 60% Condensing 25% Total 85% Calculation of fuel costs: extraction Condensing turbine size (kW): 1550 2050 Boiler efficiency (%) 70% 70%...

AI summary The document presents a detailed analysis of biomass CHP cost scenarios, including fuel use, efficiency, and capital costs. It outlines various components such as turbine size, boiler efficiency, and fuel use in mmBtu, alongside assumptions and cost calculations for the project.

Page 2 Biomass 8-2-11 90% availability no fuel Nova Scotia COMFIT Model Cash Flov w workshe et: Botton n Synaps e Complia ance 90% / Availabilit / no Fuel Reserve Accounts Reserves Funded As Part of Capital Cost Beginning Balance Up-Front...

AI summary The text presents a table from the Nova Scotia COMFIT Model, focusing on reserve accounts and capital costs, including figures for reserves funded as part of capital costs, beginning balances, and various reserve categories such as maintenance, working capital, and debt service reserves. The table includes detailed financial figures and calculations.

Scenarios in $2012 $ Sc ios in 2 0 1 2 en ar Va lue for S On ly tea m- Gro Va lue for C H P ss Ne Va lue for C H P t Co t mp on en Sc io en ar Sc io en ar Sc io en ar Pro j dev lop t nt ec e me $ 4 2, 1 3 4 $ 2 8 0, 2 8 0 $ 2 3 8, 1 4 6 $...

AI summary The document presents financial scenarios from 2012, including projected development costs, boiler and turbine installation costs, emissions, and equipment installation costs, with various figures and percentages provided for different scenarios.

4/12/11 Exhibit K with corrected heat content of steam Nova Scotia COMFIT Model Biomass CHP (condensing turbine; new b Assumptions Notes: General Inflation Factor (revenue and expenses) 1.92% From NSPI 2009 IRP Update Capital Costs (Uses o...

AI summary The document outlines the financial details of a biomass combined heat and power (CHP) project, including capital costs, financing structure, and debt terms. It includes assumptions such as a general inflation factor, capital expenditures, and the distribution of funding between debt and equity.

After-Tax Internal Rate of Return 13.03% Nova Scotia COMFIT Model C ash Flow workshee t: Bottom Syr apse U-2 Operating Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Debt Loan Balance 4,870,769 4,711,282 4,536,644 4,345,415 4,13...

AI summary This table presents the after-tax internal rate of return of 13.03% and details the loan balance, interest, and principal payments over 20 years for a project modeled using the Nova Scotia COMFIT tool. It outlines the debt service coverage ratio and annual cash flow distribution.

Nova Scotia COMFIT Model Depreciation worksheet: Top Synapse U-2 Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 40-y r SL 1.25 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2.50 % 2....

AI summary The document presents a depreciation worksheet from the Nova Scotia COMFIT Model for the Top Synapse U-2, outlining depreciation rates and capital allocations over a 20-year period, including straight-line and double-declining methods.

Scenarios in $2012 Va lue for S On ly tea m- Gr Va lue for C H P os s Ne Va lue for C H P t Co t mp on en Sc io en ar Sc io en ar Sc io en ar Pro j de lop t t ec ve me n $ 4 2, 1 3 4 $ 2 8 0, 2 8 0 $ 2 3 8, 1 4 6 $ ( ) Bo i ler ins l le d...

AI summary The text presents a table with various cost and value figures related to different components and scenarios in 2012, including project development, boiler and turbine installation costs, emissions, and equipment installation. The data highlights differences in values for different scenarios.

4.0 Study Deliverables The cost of generating electricity can be categorized into 4 principal components; capital cost, non-fuel O&M, fuel cost and financing. The purpose of this study is to determine values for the capital cost, non-fuel...

AI summary This section outlines the study's deliverables, focusing on determining capital cost, non-fuel O&M, and operating parameters of the plant. Wood fuel cost and financing details will be sourced externally, including target return on equity, capital structure, amortization, and tax considerations.

4.1 Capital Cost Estimate The capital cost estimate should cover all equipment supply, materials, labor and supervision required to provide a fully functional CHP plant as described. The expected level of accuracy regarding the capital cos...

AI summary The capital cost estimate for a combined heat and power (CHP) plant must include all equipment, materials, labor, and supervision, with an expected accuracy of +/- 20%. It should also account for the premium required by the EPC contractor for a fixed cost turnkey price, performance guarantees, and related services.

Capital Cost Items - Boiler - Particulate Removal (As required by the Province of Nova Scotia) - Emissions Monitoring/Emissions Controls (As required by the Province of Nova Scotia) - Controls - Steam Turbine & Generator - Materials Handli...

AI summary The text lists capital cost items related to a project in Nova Scotia, including equipment, infrastructure, and associated expenses. These items are categorized under boiler systems, emissions control, construction, and other infrastructure-related costs.

Assumptions regarding capital cost estimate - The plant location will be on an existing brown field site where the sawmill is currently located - For civil engineering, assume average soil conditions for Nova Scotia - The estimate is based...

AI summary The capital cost estimate assumes a brownfield site for the plant, average soil conditions in Nova Scotia, and a turnkey project with a fixed cost guarantee from the EPC company. Costs for equipment outside the plant, such as dry kiln heaters, are excluded.

ESI is also currently under contract with a developer helping them to perform the preliminary design and capital cost estimate of a nominal 5 MW biomass fired power plant facility located in Hawaii. ESI is uniquely qualified to perform the...

AI summary ESI is qualified to provide engineering and cost estimation services for a biomass power plant in Hawaii due to its expertise in designing and constructing steam and cogeneration facilities, as well as its unique business model focused on integrating commercially available technology for optimal project outcomes.

3. Cost estimate for steam turbine

AI summary This section provides a cost estimate for a steam turbine, likely as part of a regulatory proceeding related to energy infrastructure or generation.

4. Cost estimate for air-cooled condenser Forwarded Message From: "[email protected]" To: [email protected] Cc: [email protected] Sent: Fri, February 18, 2011 4:41:09 PM Subject: Re: air-cooled condenser in Nova Scotia(11-1101) Susa...

AI summary This email discusses the cost estimate for an air-cooled condenser (ACC) proposed by SPX for a project in Nova Scotia. The email outlines the technical and commercial scope of the ACC, including components such as the steam duct, condensate tank, and evacuation system, and notes that the proposed price is based on current material and labor costs with an escalation factor to be applied.

6.2 Capital Structure and Cost ANSS recommends assuming 100% equity financing and a return on equity of 17.5%. We have analyzed the impact of this change in the Excel file "Synapse U-6 Capital Structure." To examine this, we removed debt f...

AI summary ANSS recommends 100% equity financing with a 17.5% return on equity, which impacts the fixed portion of the rate. Changes to assumptions such as debt service reserve account and interest during construction were made in the 'Synapse U-6 Capital Structure' Excel file, resulting in a fixed rate of $128 per MWh.

Table 1. The Impacts of the Changes Analyzed in U-2, U-6 and U-6(a) Change Analyzed Fixed Component ($/MWh) Variable Component ($/MWh) Full 2012 Rate ($/MWh) Rate Proposed by Synapse 3/2/11 $94 $62 $156 U-2: Offsetting Errors in Fuel Cost...

AI summary This table outlines the impacts of various changes analyzed in U-2, U-6, and U-6(a) on fixed and variable components of costs, as well as full 2012 rates, with specific figures provided for each change and associated assumptions.

Scenarios in $2012 Val for Ste -On ly ue am Gro ss V alu e fo r C HP Net Va lue for CH P Co nt mp one Sce io nar Sce io nar Sce io nar Pro jec t de vel opm en $ 21, 067 $ 280 280 , $ 259 213 , st ( $ B oile r in sta lled co $ 842 685 , $ 3...

AI summary The text presents a table of financial scenarios from 2012, including project development, boiler and turbine installation costs, emissions controls, cooling townships, equipment installation, maintenance reserves, and working capital reserves. These figures are part of a regulatory proceeding analysis.

Nova Scotia COMFIT Model Synapse U-6 Capital Structure Assumptions Natas. Assumptions: Synapse 0-0 Capital Structure

AI summary The document outlines the Nova Scotia COMFIT Model, specifically focusing on the Synapse U-6 Capital Structure assumptions, with references to Natas. and Synapse 0-0 Capital Structure.

4/12/11Synapse U-6 Parasitic Loads 14% Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto m Synapse e U-6 Para sitic Load s at 14% Reserve Accounts Reserves Funded As Part of Capital Cost Beginning Balance Up-Front Maintenance Reserve W...

AI summary The text presents a table from the Nova Scotia COMFIT Model, focusing on reserve accounts, capital costs, and financial reserves, including figures related to maintenance, working capital, and debt service reserves. The data highlights the distribution and changes in these reserves over time.

Nova Scotia COMFIT Model Depreciation worksheet: Bottom Synapse U-6 Parasitic Loads at 14% Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Majo r Ma inten ance Timi f Sp endi ng o ng Occ 1 urre nce Occ 2 urre nce Occ...

AI summary The document presents a depreciation worksheet for the COMFIT Model, focusing on Bottom Synapse U-6 Parasitic Loads at 14%. It outlines major maintenance spending over a 21-year period, with significant expenditures occurring starting in year 10.

Scenarios in $2012 fo r S On Va lue tea ly m- Gr e f CH s V alu P os or e f CH Ne t V alu P or Calculation of fuel costs: extraction Condensing turbine size (kW): 1550 2050 Boiler efficiency (%) 80% 80% Adjusted turbine size (kW): Adjusted...

AI summary The document outlines scenarios from 2012 involving fuel cost calculations for different turbine types (extraction and condensing), including turbine sizes, boiler efficiency, fuel use in mmBtu, and heat input. It also references the Nova Scotia COMFII Model and includes general inflation factors and capital costs assumptions.

Biomass CHP Cost ScenariosSynapse U-6 All

AI summary The document discusses biomass combined heat and power (CHP) cost scenarios, focusing on the financial implications and potential costs associated with implementing biomass CHP projects.

Beginning Balance 0 7,702,001 7,296,632 6,891,264 6,485,895 6,080,527 5,675,158 5,269,790 4,864,421 4,459,053 4,053,685 3,864,037 3,350,808 2,891,509 2,459,176 2,040,325 1,628,215 1,219,476 812,422 406,211 Original Book Value 8,107,369 000...

AI summary The document presents financial data and assumptions related to the Nova Scotia COMFIT Model for a Biomass CHP project, including beginning balance, original book value, depreciation, net book value, and project cost details. It outlines capital costs, financing, and reserve account sizing assumptions.

Scenarios in $2012 Val for Ste -On ly ue am Gro ss V alu e fo r C HP Net Va lue for CH P Co nt mp one Sce io nar Sce io nar Sce io nar Pro jec t de vel ent opm $ 42, 134 $ 280 280 , $ 238 146 , $ B oile r in lled st ( ) sta co $ 1, 685 370...

AI summary The text presents a table of financial scenarios from 2012, detailing project development, boiler installation, turbine installation, emissions, cooling townships, equipment installation, connection costs, maintenance reserves, and working capital reserves. These figures are likely related to energy projects involving Combined Heat and Power (CHP).

Nova Scotia COMFIT Model Large Wind (Over 50 kW) Synapse U-7 Nova Scotia Comfit Model Large wind (Over 50 kw) 1 Synapse U-7 Assumptions Notes: Assumptions: Notes: General Inflation Factor (revenue and expenses) 1.92% From NSPI 2009 IRP Upd...

AI summary The document outlines the financial assumptions and costs associated with a large wind energy project in Nova Scotia, including capital costs, operating expenses, and inflation factors. It details the project's net capacity, energy production, and various financial components such as debt service, reserves, and maintenance costs.

After-Tax Internal Rate of Return 16.50% Nova Scotia COMFIT Model Cash Flow worksheet: Bottom Sy Synapse U-7 Debt Loan Balance Interest 8.00% Principal Annual payment 1,889,000 (1,421,365) (1,889,000) 1,819,429 (151,120) (69,571) (220,691)...

AI summary The document presents a cash flow worksheet from the Nova Scotia COMFIT Model, illustrating debt loan balances, interest rates, principal amounts, and annual payments over time. The after-tax internal rate of return is listed as 16.50%, indicating the financial performance of the modeled investment.

serve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image: Reserve ($AVI) Image:...

AI summary The text contains a list of financial terms and values, including 'Interest During Construction' and 'Insurance' with a value of 8,379, which escalates at inflation. The content appears to be part of a financial or accounting report related to a wind energy project.

Nova Scotia COMFIT Model Depreciation worksheet: Top Synapse U-8 Ope ratin g Ye ar Cale nda r Ye ar 0 2010 1 2011 2 2012 3 2013 4 2014 5 2015 6 2016 7 2017 8 2018 9 2019 10 2020 11 2021 12 2022 13 2023 14 2024 15 2025 16 2026 17 2027 18 20...

AI summary The document presents a depreciation worksheet for the Nova Scotia COMFIT Model, detailing the depreciation rates and capital cost allocations for the Top Synapse U-8 over multiple years, using a 50% double declining method.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , General Inflation Factor (revenue and expenses) 1 02% From NSPI 2009 IRP Update Capital Costs (Uses of Funds) 1.52% 1 1511 1401 1 2005 INF...

AI summary This document outlines the financial and capital assumptions for a biomass CHP project, including inflation rates, capital costs, and funding sources. It details project costs, reserves, and capital structure, with all financing coming from equity and no debt or grants involved.

Nova Scotia COMFIT Model O tin Ye pe ra g ar Ca le nd Y ar ea r 0 20 10 1 20 11 2 20 12 3 20 13 4 20 14 Ot he r 0 0 0 0 0 M ajo r M ai nt en an ce An al De iat ion nu pr ec 13 ,52 7, 11 2 0 3, 27 4, 02 8 0 4, 91 1,0 42 0 2, 45 5, 52 1 0 1,...

AI summary The Nova Scotia COMFIT Model table outlines maintenance and occurrence expenses over several years, showing changes in major maintenance analysis, occurrence classifications, and deviation percentages from 2010 to 2014. The data highlights increasing deviation percentages and associated financial figures.

Scenarios in $2012 r S On Va lue fo ly tea m- Sh e S d V alu tea are m Gr CH s V alu e f P os or CH Ne t V alu e f P or Co t mp on en Sc ari en o On ly Sc ari en o Sc ari en o Sc ari en o Pro jec t d elo t ev pm en $ 42 13 4 , $ 28 0, 28 0...

AI summary The text presents a table of financial scenarios from 2012, including projected development costs, equipment installation, maintenance reserves, and other related expenses, with various scenarios outlined for analysis.

April 14, 2011 Nova Scotia Utility and Review Board 3 rd Floor 1601 Lower Water Street Halifax, Nova Scotia B3J 3P6 Attention : Nancy McNeil Regulatory Affairs Officer/Clerk Dear Ms McNeil: RE: Renewable Energy Community Feed-in Tariffs –...

AI summary CBCL provided a Synapse model analysis to determine the COMFIT rate required to meet a 13% rate of return for a biomass-fired heating plant and an 8 MW CHP plant. CBCL argues that the Synapse model's cost allocation method is flawed and proposes a fuel consumption-based allocation instead, resulting in a higher COMFIT rate.

Darren Hartlen P.Eng Direct: 902 421 7241 E-Mail: [email protected] Nova Scotia Utility & Review Board FIT Model Biomass CHP condensing turbine; Biomass CHP condensing turbine Net Value of Grants 0 State/Provincial Income Tax Debt Terms Tax...

AI summary The document provides financial and operational details for a biomass CHP condensing turbine project, including loan terms, tax depreciation classifications, and cost allocations. It outlines the project's financial structure, depreciation methods, and associated maintenance and replacement costs.

Page 5 of 6 NS_COMFIT_Biomass_45% Cost Allocation.xls Component Scenario Scenario Scenario Project development $0 $275,000 $275,000 Boiler installed cost ($) $20,298,000 $36,818,000 $16,520,000 Turbine installed cost ($) $0 $0 $0 Emission...

AI summary The document presents a cost allocation analysis for a biomass project under the Community Feed-in Tariff (COMFIT) program, comparing different scenarios including steam-only, gross CHP, and net CHP. It outlines various financial components such as equipment costs, reserves, insurance, and fuel expenses, as well as project details like boiler and turbine specifications.

Page 4 of 6 NS_COMFIT_Biomass_87% Cost Allocation.xls Beginning Balance 0 36,811,033 34,873,610 32,936,188 30,998,765 29,061,342 27,123,919 25,186,496 23,249,074 21,311,651 19,581,898 17,540,640 15,551,300 13,587,918 11,637,516 9,693,604 7...

AI summary The text provides a detailed breakdown of the beginning balance, original book value, major maintenance, depreciation, and net book value over multiple periods. It reflects financial tracking for a specific asset, likely related to a regulatory proceeding involving cost allocation.

Page 5 of 6 NS_COMFIT_Biomass_87% Cost Allocation.xls Value for Steam-Only Gross Value for CHP Net Value for CHP Component Scenario Scenario Scenario Project development $0 $275,000 $275,000 Boiler installed cost ($) $20,298,000 $36,818,00...

AI summary The document presents a cost allocation analysis for a biomass project, comparing steam-only and combined heat and power (CHP) scenarios. It details various costs such as installation, maintenance, debt and equity reserves, and fuel expenses, along with financial metrics like loan values and equity amounts for different project configurations.

4 Response U-13: 5 3 6 See workbook "Undertaking U-13.xlsx". This spreadsheet contains two examples, on separate 7 sheets. Both examples are based on a 1.5 MW turbine, as used in Synapse's computations, rather 8 than the 2 MW turbine Mr. L...

AI summary The response discusses the assumptions and calculations related to a 1.5 MW turbine used in Synapse's computations, as well as the impact of different capital costs and equity funding scenarios on the CEDIF's ability to raise funds for a project.

The Assumptions Worksheet Assumptions: General Inflation Factor (revenue and expenses) 2.50% % of Base Price Escalating @ Infl. 0% Uses of Funds Debt Reserve 109,500 Maint. Reserve 30,000 Working Capital 14,749 Total Working Capital & Reve...

AI summary The Assumptions Worksheet outlines key financial and operational assumptions for a project, including inflation factors, funding sources, tax rates, capital structure, and operating inputs. It provides details on project costs, revenue assumptions, and return metrics such as the internal rate of return and debt service coverage ratio.

Resource-Sp p ecific Assumptions - •Asset Life - •Major capital additions - •Capacity factor - •Output degradation - •Interconnection issues - •Others… you tell us

AI summary The document outlines resource-specific assumptions related to asset life, major capital additions, capacity factor, output degradation, interconnection issues, and other factors that need to be considered.

Input complexity Ontario Vermont Germany Data granularity Capital Costs -One input for installed costs Operating Costs -Variable O&M -Fixed O&M -Other costs -Fuel costs -Property tax Capital Costs -Debt reserve -Maintenance reserve -Workin...

AI summary The table compares input complexity across Ontario, Vermont, and Germany, focusing on data granularity for capital and operating costs. Ontario has a structured approach with specific inputs, while Vermont includes a range of cost factors and Germany provides highly detailed listings of costs.

Capital Structure Ontario Vermont Germany Capital Structure Fixed (70/30 debt/equity) Varies by technology. (Ranges from 75/25 for farm methane to 30/70 for 100 kW wind) Varies by technology

AI summary The text discusses capital structure differences across Ontario, Vermont, and Germany, highlighting variations based on technology and fixed debt/equity ratios in Ontario.

• Significant Issues and Ouestion There have been significant changes from the initial draft tariffs circulated by Synapse with respect to Biomass CHP and the final tariff. ANSS and other Intervenors had the opportunity to ask IRs on the i...

AI summary The text discusses concerns raised by ANSS regarding the final biomass CHP tariff, including reliance on outdated data and lack of current evidence supporting financial assumptions. ANSS plans to provide expert evidence on capital costs and financing, while noting insufficient time for review and discussion of Synapse's final model.

3) Biomass: Similar to small wind, there seems to be a significant risk to the ratepayers from biomass generated power. As well, environmental considerations are significant and serious in relationship to biomass wood supply, and are contr...

AI summary The document raises concerns about the risks of biomass-generated power to ratepayers, environmental issues, and policy changes that created an unfair playing field. It also highlights challenges in financing renewable energy projects, particularly large wind, and criticizes the government for not adequately addressing these issues in policy design.

apse Evidence, Exhibit B-1, p.3, lines 10-11 and 28-30. 4 Evidence of Patrick M. Hayes, Exhibit B-11, p.5 and Exhibit B, Standard Qualifications Package for ESI.

AI summary The text references evidence from Patrick M. Hayes and exhibits related to capital costs, including a standard qualifications package for energy service integration.

6.3.1 Submissions [76] In developing the model to determine the COMFIT rates, Synapse considered financing. Financing has three main costing components, the debt to equity ratio ("DIE ratio"), cost of debt and a return on equity ("ROE"). S...

AI summary Synapse developed a model to determine COMFIT rates, considering financing components such as debt-to-equity ratios, cost of debt, and return on equity. Different ratios and rates were applied based on the type of project, and assumptions were made regarding loan amortization, fees, and reserve accounts.

9.3 Capital Costs [162] Synapse developed a capital cost of $7,888,608 for a Biomass CHP. ANSS developed a capital cost of $15,846,150 (increased to $16,150,398 in response to Undertaking U-10). ANSS analyzed the difference between the two...

AI summary Synapse and ANSS provided different capital cost estimates for a Biomass CHP project. ANSS identified five areas of material disagreement in their analysis.

Material Handling Systems $1,145,725 Balance of Plant 1,158,566 Commodity Construction 2,986,369 Engineering and Project Management 715,060 EPe Profit 1,267,692 $7,273,412 [Extracted from ANSS Evidence, Exhibit 8-11, pp. 12-13]

AI summary The document presents a table of costs related to material handling systems, balance of plant, commodity construction, engineering, and project management, with a total of $7,273,412. The information is extracted from ANSS Evidence, Exhibit 8-11, pages 12-13.

[163] When Synapse was questioned by Ms. Rubin about these differences, they responded: - Q: ... the balance of the plant, the sewer, HVAC, pre-engineering, building, painting, fire protection, water treatment, storage tanks, air compresso...

AI summary The text discusses discrepancies between Synapse and ANSS regarding the costs of CHP projects, with Synapse noting uncertainty and ANSS highlighting the infeasibility of Synapse's estimates. ANSS also comments on the higher costs of smaller electricity projects and the inadequacy of Synapse's capital cost estimates for a 2-megawatt project.

following comments were made: Scale. At 8 MW (7 MW net) electrical output, the specific capital cost is high. This plant will cost approximately $4,500,000 per 1 MW electrical output. Larger biomass plants can be built for $1.5 - $2.0 mill...

AI summary The text discusses the high specific capital cost of a small biomass CHP plant at 8 MW (7 MW net) with a cost of approximately $4,500,000 per 1 MW electrical output, compared to larger plants costing $1.5 - $2.0 million per MW. The Board explored the ability to construct small MW CHP plants.

9.4.1 Findings on Financing [183] The Board accepts the wide experience of Mr. Bodington in financing various electric generation projects, of which some are biomass. However, the Board finds it difficult to conclude a Nova Scotia sawmille...

AI summary The Board accepts Mr. Bodington's expertise in financing electric generation projects, including biomass, but finds it unlikely that a Nova Scotia sawmiller would finance a Biomass CHP project solely with third-party equity. Instead, a mix of debt and equity is expected. The Board also accepts the use of a fuel escalator mechanism and a 13% ROE for the project, aligning with Synapse's calculations.

[188] Synapse projected operating costs were based on the following: Steam Combined Net Routine Maintenance ($/yr) $130.557 $173.264 $42.707 Labour ($) $305,760 $356,720 $50,960 General & Admin. $0 $0 $0 Insurance $9,691 $39,443 $29,752 Pr...

AI summary Synapse projected operating costs for Steam, Combined, and Net systems, including routine maintenance, labour, insurance, and overhaul costs for turbines and boilers in Year-10. The data is sourced from Synapse Report, Exhibit B-1, and Exhibit K.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) Assumptions General Inflation Factor (revenue and expenses) 1.92% Notes: From NSPI 2009 IRP Update Capital Costs (Uses of Funds) 1.5270 Trom Nor 1 2003 INT Op...

AI summary The document outlines the financial assumptions and costs associated with large wind projects in Nova Scotia, including capital costs, financing structures, and tax considerations. The COMFIT model is referenced, and details on debt, equity, and grants are provided.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Deb t Loa n Ba lanc e Inte 8.00 % rest Prin cipa l Ann ual t pay men 1,88 9,80 0 (1,4 21,9 67)...

AI summary The document presents a financial model related to a large wind project in Nova Scotia, focusing on debt loan balances, interest rates, principal amounts, and annual payments over time. It outlines the cash flow and financial structure of the project, including tax considerations.

Page 2 Large Wind 8-2-11 taxed Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d, Tax abl e O wn er Deb t Loa n Ba lanc 1,88 9,80 0 e Inte 8.00 % (1,4 21,9 67) rest Prin cipa l (1,8 00)...

AI summary The text presents a table with financial data related to debt, loan balances, interest rates, and annual payments for a large wind project in Nova Scotia. The information includes figures for various years, detailing the loan balance, interest, principal, and annual payments.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Cale nda r Ye ar D ciati er C epre on p Yea r On e Ca pital Cos t A...

AI summary The document presents a depreciation worksheet for a large wind project under the Nova Scotia COMFIT Model, detailing capital costs and depreciation methods such as 30% double declining, 50% double declining, 20-year straight line, and 40-year straight line, along with major maintenance costs over a 20-year period.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Res e A unt erv cco s Res s Fu nde d A s Pa rt of Ca ital Cos t erve p Beg inni Bala ng nce Up- F...

AI summary The text presents a financial table related to a small wind project, including entries for cash flow, capital costs, debt service reserves, and other financial metrics. The table indicates a balance of $17,874 and includes figures for various financial components, with some entries showing negative values.

Page 2 Small Wind 8-2-11 taxed a S ia C Nov cot OM FIT Mo del Ca sh Flo w W ork she et: Bot tom Syn e C aps lian om p ce Sm Win all d T ble axa Ow ner Res Ac nts erve cou Res s Fu nde d As Pa rt of Ca pita l Co st erve Beg innin g Ba lanc...

AI summary The text presents a table with financial data related to small wind tax and capital costs. It includes details on reserves, capital expenditures, debt service, and other financial categories. The table appears to be part of a regulatory proceeding related to energy and financial planning.

Page 2 Biomass 8-2-11 85% availability no fuel Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto om Synapse Complian ice 85% A vailability No Fuel Less: Major Maintenance Reserve Funding (39,222) (39,222) (39,222) (39,222) (39,222) (39...

AI summary The document presents financial data from the Nova Scotia COMFIT Model, focusing on cash flow, debt service coverage ratios, and reserve accounts. It includes figures such as cash available for debt service, principal and interest (P&I), and debt service coverage ratios, with a minimum ratio of 1.64 and an average of 1.68. The data also highlights reserve accounts and beginning balances.

Biomass CHP Cost Scenarios Synapse Compliance 85% Availability No Fuel Capacity I act 013. Total Project Cost ($/kW) Net of steam-only scenario Initial Reserve Account Sizing 1,011 That or disam only sections Upfront Maintenance (months of...

AI summary The text presents a detailed financial and depreciation breakdown for a biomass combined heat and power (CHP) project, including capital structure, funding sources, grant allocations, loan terms, and depreciation methods. The project is analyzed under the context of 85% availability and no fuel costs.

Page 2 Biomass 8-2-11 90% availability no fuel Nova Scotia COMFIT Model Cash Flov w workshe et: Botton n Synaps e Complia ance 90% / Availabilit / no Fuel Operating Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

AI summary This document presents a COMFIT Model table related to a biomass project in Nova Scotia with 90% availability and no fuel. It outlines cash flow projections over a 20-year period, likely for regulatory analysis purposes.

Scenarios in $2012 $ Sc ios in 2 0 1 2 en ar Va lue for S On ly tea m- Gro Va lue for C H P ss Ne Va lue for C H P t Co t mp on en Sc io en ar Sc io en ar Sc io en ar Pro j dev lop t nt ec e me $ 4 2, 1 3 4 $ 2 8 0, 2 8 0 $ 2 3 8, 1 4 6 $...

AI summary The document presents financial scenarios from 2012, including various costs and values associated with different components such as boiler and turbine installations, emissions, and equipment installation. It includes figures for different scenarios and an extension traction factor of 60%.

- generation. Unfortunately, none of the materials we - reviewed provided a definition of CHP. We addressed this - issue by assigning capital and operating costs so that the - steam host was responsible for a substantial portion of - the t...

AI summary The text discusses the treatment of combined heat and power (CHP) projects, including the allocation of capital and operating costs, the use of capital structures and financing costs, and references to the Renewable Electricity Plan and COMFIT rates for cost recovery.

- particular technology. 1 Page 98 NSUARB-BRD-E-R.10 Without getting into the issue of the 17 THE CHAIR: Thank you, Mr. Merrick. 18 Ms. Rubin? 19 MS. RUBIN: Thank you, Mr. Chair. 20 CROSS-EXAMINATION BY MS. RUBIN 21 MS. RUBIN: Now I'm goin...

AI summary The text discusses a regulatory proceeding involving the NSUARB, with cross-examination focused on capital costs and biomass CHP projects. Ms. Shaw provided input on equipment assumptions for the biomass CHP tariff, though she did not claim sole responsibility for the decisions made.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: Right. Because that risk Page 126 NSUARB-BRD-E-R.10 22 said three of them are in the queue, none of them have DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS 1 Page 130 NSUARB-BRD-E-...

AI summary The discussion revolves around the uncertainty of capital costs for renewable energy projects, with one party expressing concern over the lack of consideration for these costs in rate-setting processes. The other party acknowledges uncertainty but argues it is not extreme, noting that capital costs vary based on project risk.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Now, Table 1 is a capital costs summary. And if you take NSUARB-BRD-E-R.10 Page 135 1 the total capital cost, so that's equipment and 2 installation, of 36,618,000 and divided that by the 8 3...

AI summary The text discusses the capital cost calculation for a 8 megawatt plant, yielding a per megawatt cost of approximately 4.6 million. It references a document from Nova Scotia Power's responses to Liberty Information Requests, which were used by the Board's consultants in the approval process for the Nova Scotia Power Port Hawkesbury Biomass Project.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: So your cost per megawatt 1 NSUARB-BRD-E-R.10 Page 137 is lower than plants of the scale 10 times to 20 times 22 MS. RUBIN: Okay, I'm not talking DICTUM DIGITAL INC. CERTIFIED COUR...

AI summary The discussion revolves around capital costs of power generation projects, with reference to the Department of Energy (DOE) benchmark and a comparison of estimates provided by Synapse. The conversation includes clarification about the analysis of data and the inclusion of certain systems in cost estimates.

process would be working as well. 1 Page 172 NSUARB-BRD-E-R.10 maybe you can help me out then. The only way I can assess 7 we used was were the bids that were received by NSPI 8 and the fit rates established in other places and the 9 uptak...

AI summary The discussion revolves around the assessment of bids for a biomass plant by NSPI and the comparison of costs for a larger project versus a smaller 2-megawatt project. The conversation also touches on the allocation of capital costs between steam and CHP scenarios.

into small wind were reliable. 1 NSUARB-BRD-E-R.10 Page 225 So in the model that I developed, it 10 at 8 percent? 11 Yeah. That's the MR. LIVINGSTON: 12 that's what you were using in your large model, I think. 13 Yeah. MR. KEITH: 14 Same t...

AI summary The discussion revolves around financial modeling for small wind projects, focusing on borrowing costs, reserve requirements, and equity contributions. The model presented by Mr. Livingston suggests a 12-month reserve period, compared to six months suggested by Mr. Keith, and includes additional financing costs.

we're actually not clear what government's ultimate plan Page 262 NSUARB-BRD-E-R.10 7 I guess my comment was, we presumed 8 that either those managing the SDIF or the facilitation, 9 technical assistance, and financial services the 10 gove...

AI summary The discussion centers on the uncertainty surrounding the government's plan regarding the SDIF and its role in financing the EON Electric project, highlighting risks and the need for clarity on capital costs and project funding mechanisms.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. SHAW: I would say that that was 1 NSUARB-BRD-E-R.10 Page 273 outside of what we were asked to do, which was to come up 9 you're producing both steam and electricity at the same 10 time, a...

AI summary The discussion revolves around the capital costs and operational considerations of generating both steam and electricity simultaneously, with emphasis on the financial implications for biomass projects and the feasibility of alternative steam hosts in Nova Scotia and other regions.

- was the 1.5 percent as well? Page 388 NSUARB-BRD-E-R.10 17 hundred or $400,000 small wind project that's a huge cost 18 and a long time to wait. 19 So my concern is that the information 20 that you received was going to be contingent on...

AI summary The discussion revolves around concerns about capital costs and financing for small wind projects, with a focus on whether financial institutions would provide financing without met tower data. A rate of 8% was independently suggested by financiers and stakeholders as a reasonable and representative rate.

which is not quite the way you did it. 1 Page 464 NSUARB-BRD-E-R.10 well as a separate calculation 18 that we're now setting that could be around for 20 years 19 or whatever the number is, they're based on capital costs 20 that would be pr...

AI summary The discussion revolves around the long-term capital cost considerations for energy projects, the need for adjustments in rate calculations to account for changing market conditions, and the uncertainty surrounding future cost reductions for emerging technologies like tidal energy.

B-15. Page 530 NSUARB-BRD-E-R.10 17 the capital cost estimate and the terms of financing for 18 the project. 19 ESI has estimated that the capital 20 cost required to construct a plant in the 2.4-megawatt 21 range is $6.56 million per mega...

AI summary The document discusses the capital cost estimates for constructing a 2.4-megawatt plant, with ESI estimating $6.56 million per megawatt and Synapse estimating $3.77 million per megawatt.

- ESI believes the source of the error - and resultant low capital cost estimate stems from - acquiring individual price quotations for major equipment - and not adequately accounting for balance of plant - construction costs to actually i...

AI summary ESI argues that Synapse's capital cost estimate for the COMFIT project is too low, citing issues with how balance of plant costs were accounted for. ESI's estimate includes a complete, turnkey power plant and references prior studies and evidence to support its claim.

Page 534 NSUARB-BRD-E-R.10 1 project financing assumptions. 11 capital and fuel costs are typically shared. While the 12 proportion of sharing may be debatable, the sharing should 13 not be. 14 With respect to boiler efficiency, 15 Synapse...

AI summary The text discusses differences in project financing assumptions, particularly regarding capital and fuel cost sharing, and highlights discrepancies in boiler efficiency estimates between Synapse and ESI. It also mentions the importance of including various O&M expenses and outlines the purpose of determining accurate generation costs for biomass CHP plants.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS recently, the capital structure of a project, how you get NSUARB-BRD-E-R.10 Page 543 1 all the money and what you use to pay off what. 2 That doesn't alter the fundamental risk profile of a b...

AI summary The text discusses the capital structure of a biomass power project and emphasizes that the method of financing does not change the project's fundamental risk profile.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS set by the Board; is that possible the way you see it? 1 NSUARB-BRD-E-R.10 Page 549 MR. TRAVIS: Well, no. I mean, we 2 plan on investing in these plants, our sawmills, so 100 3 percent equity...

AI summary The text is a transcript of a regulatory proceeding discussing capital expenditures and the distinction between a conventional power plant and a combined heat and power (CHP) plant. The discussion includes the percentage of capital investment required for CHP and the impact of steam extraction on system performance.

id our - DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS comparison, we didn't have we didn't do a capital cost Page 598 NSUARB-BRD-E-R.10 we weren't able to do there was a lot of missing - information on that side of the equation. - When yo...

AI summary The discussion revolves around the challenges in accurately estimating capital costs and their impact on rate calculations. The speaker notes that missing information and errors in analysis could significantly affect the final rate, but an exact figure is not yet determined.

- And so those have to be worked in and accounted for to - come up with the rate. - And we didn't do a we unfortunately - didn't do a capital cost assessment on the boiler-only - scenario with ESI, so we don't have our information, we - we...

AI summary The discussion revolves around the challenges of accurately assessing capital costs for a boiler-only scenario, with concerns raised about the reliability of existing data from a combined heat and power plant. The conversation highlights the urgency of the hearing and the need for precise information to make a decision.

- table at the moment. 1 Page 600 NSUARB-BRD-E-R.10 MR. TRAVIS: The number we provided is 2 we believe that it has it could be if given a bit 3 more time we could refine it and make it improve the 4 accuracy of it, I guess is what I'm sayi...

AI summary The discussion revolves around the accuracy of capital cost estimates for a boiler-only scenario, with concerns that they may be understated. Mr. Travis acknowledges that a more detailed analysis by Mr. Hayes' firm would improve accuracy but notes it would take time. The Chair emphasizes the need to finalize a rate after the hearing.

hand that I was supposed to assume that it was non- NSUARB-BRD-E-R.10 Page 631 2 between 33 and 40 percent more steam than the existing 3 facility would, which means that the existing air 4 compressors, water treatment, ash handling, thing...

AI summary The text discusses the challenges and costs associated with upgrading an existing facility to handle high-pressure and high-temperature steam, requiring significant capital expenditures and system replacements. It also touches on the comparison between renovating an old facility versus building a new one, with a focus on the additional costs involved in decommissioning and upgrading existing infrastructure.

There is no theoretically correct way - to allocate costs for joint products. That principle - applies to Mr. Hayes' capital costs as well as it applies - to my cost of capital. - So it's a consideration. There is no - great answer. Maybe...

AI summary The discussion addresses the allocation of costs for joint products, emphasizing the need to reflect risks associated with generating electricity for export and using biomass fuel in the cost of capital. It also considers the implications of recourse financing on this allocation.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS pressure and steam loads and those kind of things. If the 1 NSUARB-BRD-E-R.10 Page 759 Board would like, we have someone in the room who can 12 as I I'm not an expert to answer those question...

AI summary The discussion revolves around how universities finance residential projects, with a focus on debt financing, fundraising, and the absence of strict return-on-earnings requirements. The conversation highlights that universities typically fund projects as they go, with government contributions and fundraising playing significant roles.

- So you'd suggested as alternatives - also Labrador Hydro and NSPI construction. If you were - requested to do so, could you provide capital cost - information with regards to these suggestions, in - particular Labrador Hydro, in comparis...

AI summary The discussion revolves around alternative energy projects, including Labrador Hydro and NSPI construction, with a focus on capital costs and the exclusion of new coal plants as alternatives. The conversation also touches on the phase-out of existing coal plants.

them. 1 Page 918 NSUARB-BRD-E-R.10 MR. MORIN: No, I wanted to just point 2 out three of those requirements as relevant to the 3 discussion this morning. 4 One is the requirement for a business 5 case that's viable, and part of that is unde...

AI summary The discussion centers on the requirements for a viable business case for tidal energy projects, including community support and development costs. The participants acknowledge the need to understand the specific financial and regulatory challenges associated with tidal energy, such as permitting and licensing differences compared to other renewable projects.

- successful is the amount of huge amount of volunteer - time. We all serve as Board members with corporate - expertise, community expertise, travel, conferences. It's - been five years to get to today and setting these rates. - And it is...

AI summary The speaker discusses the challenges of hitting hard costs, including development and capital costs, which exceed community contributions. They also mention the importance of advocacy and policy making to ensure communities can own their resources, and highlight the complexity of tidal energy site determination compared to wind energy.

- that kind at that kind of level. 1 Page 942 NSUARB-BRD-E-R.10 When something outside of their core 7 going to be the major driving force behind financing these 8 projects I would have said you would have 100 percent debt 9 at 6 percent....

AI summary The discussion revolves around the financing of renewable energy projects, with a focus on the debt/equity ratios and the potential for community members or institutions to provide debt outside traditional financial institutions. The conversation includes estimates of capital requirements and debt levels for large-scale projects.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. TOWSE : Thank you. Thank you for 1 Page 950 NSUARB-BRD-E-R.10 MR. CHERNICK: Yes. 2 MR. TOWSE: We will go on to look at 3 the amount of equity that you that would be required. 4 The assumi...

AI summary The discussion centers on the equity required for COMFIT projects and the ability of communities to invest in wind projects through CEDIFS. Mr. Chernick admits he is not aware of the amount of money CEDIFS has raised, and Mr. Towse offers to provide a link to relevant government websites.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS difference, but there may be some, depending upon how you 2 MR. PYNN: Okay, that's all I have. 10 MR. OUTHOUSE: And you've then gone 11 through various scenarios of blending who's going to 12...

AI summary The discussion revolves around a balanced case scenario for generating 100 megawatts of power, with contributions from various sources such as small wind, large wind, biomass, hydro, and tidal. The conversation focuses on capital costs and the application of an 8.5% blended rate for equity and debt.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS record, we'll note it and then we'll come back we'll 1 clear the room at the end of your cross-examination and 3 yesterday, that equity is where costs of projects often go 4 up because of the...

AI summary The text discusses the cost of equity in projects, suggesting that government involvement as an equity partner could reduce the financial burden on ratepayers and provide returns to investors. It mentions the Industrial Expansion Fund at NSPI and the potential for high returns on renewable energy projects.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Thunder Bay we were involved in the 1 NSUARB-BRD-E-R.10 Page 1323 development side of that. That was 100 megawatts. Digby 2 Neck we were owners/engineers for Nova Scotia Power on 3 that one....

AI summary The testimony discusses the involvement of the speaker in various energy development projects in Nova Scotia, including the Watts project, which recently went into operation. The speaker mentions their role as owners/engineers and highlights the financing of the Watts project, though some details are confidential.