Topic:"Capital Expenditures" in M12600

NS Power Cyber Incident Report Appendix B Page 1 of 7 Affected Regulatory Matters Report 2 - October 1 Report 3 - November 3 Report 4 - December 1 Latest update Forecast Restoration of Normal Activities CapitalBudgeting/Finance Data Introd...

AI summary The report discusses the impact of a cyber incident on NS Power's capital budgeting and finance data, particularly affecting the 2025 ACE Plan budget data. The Capital Planning teams used spreadsheets to maintain business continuity, allowing for uninterrupted filings and the development of the 2026 ACE Plan. Full restoration of the PowerPlan system is expected in Q2 2026.

Operations NSPl's earnings are most directly impacted by the range of ROE and capital structure approved by the NSEB, the prudent management and approved recovery of operating costs, electric sales volumes, weather, the approved recovery o...

AI summary NSPI's earnings are influenced by factors such as the ROE range approved by the NSEB, operating costs, electric sales volumes, and capital investment. NSPI expects to earn at the lower end of its allowed ROE range in 2026, with higher earnings compared to 2025. Capital investment for 2026 is projected to be around $720 million, primarily for power system reliability.

Wasoqonatl Transmission Line: On March 5, 2025, NSPI, the Canada Infrastructure Bank ("CIB") and the Wskijinu'k Mtmo'taqnuow Agency ("WMA") announced the Wasoqonatl transmission line project which will create a reliability intertie between...

AI summary On March 5, 2025, NSPI, CIB, and WMA announced the Wasoqonatl transmission line project, a reliability intertie between Nova Scotia and New Brunswick. The project is owned by WTI, a new regulated utility. NSPI has a 50% indirect voting interest in WTI. On November 20, 2025, the NSEB approved a $685 million capital investment for the project, including AFUDC.

Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025 and December 31, 2024, including increases in receivables, income taxes receivable, and regulatory assets, as well as changes in liabilities and equity due to factors like timing of payments, capital investments, and regulatory deferrals.

The Company generates internally sourced cash primarily through the generation, transmission and distribution of electricity. NSPl's customer base is diversified by both sales volumes and rates among customer classes. Circumstances that co...

AI summary NSPI generates cash through electricity generation, transmission, and distribution. Its future liquidity needs include working capital, rate base investment, and debt servicing. In 2026, NSPI plans to invest $720 million, including AFUDC, in capital projects for power system reliability. It has access to $800 million in credit facilities.

Cash Flow used in Investing Activities Net cash used in investing activities increased $148 million to $631 million in 2025 compared to $483 million in 2024 due to higher capital investment.

AI summary Net cash used in investing activities rose to $631 million in 2025, up from $483 million in 2024, driven by increased capital investment.

Cash Flow from Financing Activities Net cash provided by financing activities increased $1,027 million to $513 million in 2025 compared to net cash used in financing activities of $514 million in 2024 primarily due to net borrowings under...

AI summary Net cash provided by financing activities increased significantly in 2025 compared to 2024, mainly due to net borrowings under a revolving credit facility, issuance of short-term debt, and higher proceeds from long-term debt, partially offset by capital returns and debt retirements.

As at December 31, 2025, contractual commitments for each of the next five years and in aggregate thereafter consisted of the following: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Purchased ~ower(1} $ 344 $ 360 $ 347 $ 3...

AI summary The document outlines contractual commitments as of December 31, 2025, including purchased power, long-term debt, interest payments, asset retirement obligations, transportation costs, and other financial commitments over the next five years and beyond.

Forecast 2026 and actual 2025 and 2024 capital investment, including AFUDC, is shown below: 2026 2025 2024 millions of dollars Forecast Actual Actual Distribution $ 195 $ 174 $ 175 Generation 183 216 151 Transmission 247 242 107 General pl...

AI summary The text provides a forecast of 2026 and actual capital investment figures for 2025 and 2024, categorized by distribution, generation, transmission, and general plant and other. It also references a section on debt management.

Share Capital For the year ended December 31, 2025, the Company issued 0.04 million (2024 - 0.04 million) common shares to Emera for total consideration of $0.4 million (2024 - $0.4 million) and returned $340 million of capital (2024 - nil...

AI summary In 2025, NSPI issued 0.04 million common shares to Emera for $0.4 million and returned $340 million of capital to Emera without reducing the number of outstanding shares. As of December 31, 2025, NSPI had 173.5 million common shares issued and outstanding.

Liquidity and Capital Market Risk Liquidity risk relates to NSPl's ability to ensure sufficient funds are available to meet its financial obligations. NSPl's access to capital and cost of borrowing is subject to several risk factors, inclu...

AI summary The text discusses liquidity and capital market risks faced by NSPI, including the impact of financial market conditions, credit ratings, and interest rate changes on its ability to access capital and fund operations. A decrease in credit ratings could lead to higher borrowing costs and the need to post collateral for derivative instruments.

Project Development and Land Use Rights Risk The Company's capital plan includes significant investment in generation, infrastructure modernization and customer-focused technologies. Any projects planned or currently in construction, parti...

AI summary The Company's capital plan involves major investments in generation and infrastructure, which face risks such as cost overruns, regulatory delays, and land use challenges, especially with Indigenous lands. Failure to secure land-use rights or regulatory approvals could lead to significant costs and make projects uneconomical.

Supply Chain Risk NSPl's ability to meet customer energy requirements, respond to storm-related disruptions and invest in capital in a cost-effective and timely manner are dependent on maintaining an efficient supply chain. Domestic and gl...

AI summary NSPI's ability to meet energy demands, manage disruptions, and invest in capital is dependent on an efficient supply chain. Supply chain issues, trade restrictions, inflation, labor shortages, and international conflicts could delay deliveries, increase costs, or cause shortages of critical materials and resources.

Q3 2025 compared to Q3 2024 Q3 2025 net income decreased by $11 million compared to Q3 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q3 2025 net income decreased by $11 million compared to Q3 2024 due to increased OM&G expenses and depreciation and amortization from higher PP&E in service, driven by higher transmission, distribution, and power generation costs, partially offset by higher administrative overhead.

Financial Enterprise Resource Planning The Incident disrupted the Company's Enterprise Resource Planning (ERP) systems. The ERP systems are comprised of core financial management functions, including general ledger, capital accounting, and...

AI summary The Incident disrupted the Company's ERP systems, leading to manual processes for payroll and financial reporting. Payroll has since stabilized, but capital accounting and reporting remain on interim solutions. Core finance functionality is expected to return in time for statutory reporting.

Capital Budgeting/Finance Data In general, capital budgeting and finance data has been affected by the Incident. For example, detailed 2025 ACE Plan budget data by CI is unavailable, resulting in an inability to produce detailed variance a...

AI summary The Incident has impacted NS Power's capital budgeting and finance data, with detailed 2025 ACE Plan data unavailable and capital asset accounting systems offline. NS Power has created spreadsheets for business continuity, and this is not expected to affect customers.

NS-NB Reliability Intertie In the NS-NB Reliability Intertie capital project proceeding (M12217), NS Power, on behalf of Wasoqonatl Transmission Incorporated, produced various sensitivity analyses in response to IRs. Midgard, the consultan...

AI summary In the NS-NB Reliability Intertie capital project proceeding (M12217), NS Power, on behalf of Wasoqonatl Transmission Incorporated, resubmitted sensitivity analyses after a cyber incident affected their IT systems. Despite minor differences in results, the cost variance was less than 0.5% of the System NPVRR, and the reliability intertie was confirmed as the lowest cost long-term solution for the NS electricity system.

Miscellaneous Nova Scotia Power Maritime Link Q2 2025 Quarterly Report As noted by the NSEB in its letter of September 17, 2025, the detailed allocation between the Maritime Link Project and sustaining capital costs is unavailable at this...

AI summary The cybersecurity incident at NS Power affected NSPML's ability to provide a detailed allocation between the Maritime Link Project and sustaining capital costs. NSPML confirmed that the incident did not impact operations but limited IT access to data. Restoration efforts are ongoing, and no O&M costs for 2026 are expected to be affected.

Capital and ACE Plan

AI summary The text introduces the 'Capital and ACE Plan,' which likely relates to capital expenditures and the 2025 ACE Plan, indicating a focus on energy efficiency and capacity management strategies.

Capital Budgeting/Finance Data As noted in the Second Monthly Update Report, capital budgeting and finance data was affected by the Incident, including detailed 2025 ACE Plan budget data by CI being unavailable, resulting in an inability t...

AI summary The Incident impacted capital budgeting and finance data, including the unavailability of 2025 ACE Plan budget data. NS Power used spreadsheets to maintain business continuity while PowerPlan was unavailable, allowing for continued financial reporting and the development of the 2026 ACE Plan.

Nova Scotia Power Maritime Link Q2 2025 Quarterly Report As noted by the NSEB in its letter of September 17, 2025, the detailed allocation between the Maritime Link Project and sustaining capital costs is unavailable at this time due to th...

AI summary The NSEB requested detailed allocation of capital costs for the Maritime Link Project, which was delayed due to an incident affecting NS Power's IT systems. NSPML has since provided the allocation in its October 15, 2025, report following the resolution of the IT system issue.

Joint-Use Agreement Proceeding The Joint-Use Agreement Proceeding (M12149) has been affected by the cybersecurity incident. NS Power's response to NSEB IR-2 part (b), submitted to the Board on June 16, 2025, provided the following: The cos...

AI summary The Joint-Use Agreement Proceeding (M12149) has been impacted by a cybersecurity incident. NS Power has not completed an analysis of annual OM&G costs for poles covered by the JUA due to the incident. Additionally, NS Power is unable to access historical data and create new tracking data for service times due to application unavailability.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Rates-Related Matters Capital and Ace Plan Capit...

AI summary The document outlines adjustments to project timelines related to capital budgeting, finance data, and the CIS Replacement Project. The CIS project is expected to be submitted to the NSEB in 2026 as part of the 2026 ACE Plan.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Affected Regulatory Matters Report 2 - October 1...

AI summary The document outlines adjustments to the completion timelines of various projects related to regulatory matters and capital budgeting. The CIS Replacement Project is expected to be submitted to the NSEB in 2026 as part of the 2026 ACE Plan. Full PowerPlan restoration is anticipated in Q2 2026.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Customer Billing Introduced NA Updated - Pulled...

AI summary The document outlines timeline adjustments for various projects, including billing operations and the Capital and ACE Plan. NS Power announced the resumption of late fees in October 2026 and the restoration of the PowerPlan in Q2 2026. The CIS Replacement Project is expected to be submitted to the NSEB in 2026.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 again, if you have a specific cost in mind ––– 2 Q. Right. 3 A. (Williams) ––– or a type of cost, 4 I'm having to have the discussion. But I'm not entirely 5 clear on what you mean....

AI summary The discussion revolves around the incremental costs of delaying a capital project and whether costs from a cybersecurity attack above what is currently embedded in rates would be recoverable from ratepayers. The witness suggests that such costs would be evaluated in a future capital application.

NOVA SCOTIA POWER PANEL 271 Cr-ex, (Rudderham) 1 consistent with the rebuttal evidence. 2 Yeah, and I'm asking if any of Q. 3 those concerns have been realized to date or do you have 4 any indication 5 (Williams) Not to my knowledge. A. 6...

AI summary The discussion focuses on the potential impacts of delaying capital projects, including increased costs due to inflation and remobilization, but also the possibility of reduced costs for customers. The conversation references the 2026 ACE Plan proceeding and the delay or cancellation of approximately 60 projects in 2025.

NOVA SCOTIA POWER PANEL 275 Cr-ex, (Rudderham) 1 to be June of last year. So despite the fact that that 2 project came in nine months later, we did come in under 3 the budget for that still. So it's an example where the 4 investment had be...

AI summary The discussion centers on the impact of a cybersecurity attack on capital projects, with NSPI stating that while delays occurred, the financial impact has not been analyzed or quantified on a general level due to the unique nature of each project.

NOVA SCOTIA POWER PANEL 309 Cr-ex, (Rudderham) 1 having the cybersecurity incident; correct? 17 would be presented to the Board and what authority the 18 Board would have. 19 THE CHAIR: So I agree with Mr. INTERNATIONAL REPORTING INC. CERT...

AI summary The discussion revolves around the handling of increased costs from ongoing projects, potentially requiring an ATO Application for review. The Chair suggests that such costs would be addressed through an ATO Application if they exceed the threshold, though this is not currently the focus of the proceeding.

NOVA SCOTIA POWER PANEL 611 Questions, (Chair) 1 levels in terms of invoice payments? 16 9.25 and 40 band, then would money be returned to 17 customers. And in my mind, sir, that's a hypothetical 18 that I don't know that I'm in a position...

AI summary The discussion revolves around the treatment of capital costs in Nova Scotia Power's filings, with the utility clarifying that these costs have been incurred and will not be passed on to customers. The conversation includes references to CA-6 and the handling of costs in the context of regulatory proceedings.