Topic:"Capital Expenditures" in M12663

irements. - 14 Subject to the completion of the detailed transition planning work, the Phase II transition is targeted - to commence in Q2 of the 2027 calendar year. - 16 Additional Cost Categories 8 - 17 As a result of IESO Nova Scotia's...

AI summary IESO Nova Scotia will include capital and energy procurement costs in future revenue applications, pending NSEB approval. Regulatory pathways for these costs will be assessed in 2026, with Phase II transition starting in Q2 2027.

- 4 Various Insurance Coverages: IESO Nova Scotia has secured regular and customary 5 insurance to cover commercial risks affecting the enterprise, arising from IESO Nova 6 scope of operations. - 7 Communications: These costs are associate...

AI summary The text discusses various insurance coverages, communication costs, stakeholder engagement, and office costs for IESO Nova Scotia. It highlights a shift in website development costs from operational to capital, and notes a budget increase due to unforeseen office costs, which were offset by internal hiring.

& lt;sup>17 This figure adjusted from the 25/26 application to account for rounding. & lt;sup>18 Named "Procurement and Project Management (50%)" in the 25/26 application. Formerly covered 50% of "Procurement and Project Management" in the...

AI summary The text discusses adjustments to figures in a 25/26 application, including rounding adjustments and the reclassification of procurement and project management costs. It also references the consolidation of a '300MW RFP' into a 'Capacity Procurement' line item, which combines this with 'Additional Capacity Procurement'.

2 and Technology Cost Category Cost Category 2025/2026 Budget ($) (Millions) 2025/2026 Annualized Expenditures ($) (Millions) (A) 2026/2027 Proposed Budget ($) (Millions) (B) Difference ($) (Millions) (increase)/decrease (A-B) Facilities a...

AI summary The table outlines budget and expenditure figures for various technology and facilities cost categories from 2025/2026 to 2026/2027. It shows differences between proposed budgets and annualized expenditures, highlighting increases and decreases in specific areas.

NON-CONFIDENTIAL 21 • Corporate Administrative – Insurance costs were revised lower based on the actual 22 premium costs for policies bound in 2025. 23 • Corporate Administrative – Office costs were added to the 2026/2027 revenue requireme...

AI summary The document outlines various cost adjustments and assumptions for 2026/2027, including revisions to insurance, office, governance, legal, procurement, facilities, finance, and transition costs based on actual 2025 results and expected future activities.

NON-CONFIDENTIAL 1 Request IR - 15 2 Reference: Exhibit B-2 (page 25, lines 13-15, Facilities and technology) 3 IESO Nova Scotia states that "The Employee Technology Hardware and Software subcategory 4 was removed from this Application as...

AI summary IESO Nova Scotia explains that costs under the Employee Technology Hardware and Software subcategory, including laptops, servers, and software, will be treated as capital expenditures for the 2026/2027 fiscal year. These costs have been capitalized in accordance with the IESO's draft capitalization policy.

NON-CONFIDENTIAL 20 interfaces, and related system integration tools necessary to support real-time operations 21 and reliability compliance. 22 23 These capital requirements are dependent on the outcomes of the Phase II transition 24 plan...

AI summary IESO Nova Scotia cannot provide reliable capital cost estimates for Phase II due to incomplete design work. Estimates will be updated after consultant deliverables, with major costs subject to Nova Scotia Energy Board review.

NON-CONFIDENTIAL 1 Request IR - 17 2 Reference: N-1(i), Exhibit B-2, pdf p.16-18 (Corporate Administration) notes office costs 3 increase to ~$0.10 million and website development is now treated as capital; and N-1(i), Exhibit 4 B-2, pdf p...

AI summary The document discusses a request for IESO-NS's capitalization policy regarding the reclassification of technology and website spend, and the reconciliation of operating to capital expenses between 2025/26 and 2026/27. IESO-NS responded by providing a draft policy and stating that capital purchases in 2025/26 were in accordance with the policy, with no reconciliation needed between fiscal years.

NON-CONFIDENTIAL 19 Computer Hardware $665,567 Furniture and Fixtures $6,461 Leasehold Improvements $21,249 Website development $10,000 20

AI summary The document includes a table listing capital expenditures with line items such as Computer Hardware, Furniture and Fixtures, Leasehold Improvements, and Website Development, each with associated dollar amounts. These details are part of a regulatory proceeding's financial data.

Capitalization Policy - Property, plant and equipment

AI summary The document outlines a capitalization policy for property, plant, and equipment but contains no detailed content or arguments. No specific claims, entities, or references are provided in the given text.

April 1 2026 - March 31, 2027 2026 / 2027 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Jan-27 Fe b-27 Mar-27 TOTAL BUILDING TD Building $ 28,154 28,154 $ 28,154 $ 28,154 $ 28,154 $ 28,154 $ 28,717 $ 28,717 $ 28,717 $ 28,7...

AI summary The document presents a detailed financial breakdown of building and technology costs for the period April 1, 2026, to March 31, 2027, including line items such as building updates, cell phone contracts, internet services, and IT application fees. The total costs for building and technology combined are listed as $1,564,552.

2% Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Total Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Payworks for payroll 1,250 1,250 1,250...

AI summary The table outlines forecasted financial figures for payroll, accounting services, and loan interest for the months of April 2026 to March 2027. Payroll and accounting services are consistently forecasted at $1,250 and $1,000 respectively each month, totaling $27,000 annually. The loan balance is forecasted at $10,000,000 for each month.

12 4.3.8 Facilities and technology - 13 The following table details the breakdown of facilities and technology costs by sub-category for 2025/2026B, 14 2025/2026A, and 2026/2027B. - 15 Figure 14 Summary of facilities and technology costs

AI summary The section outlines the breakdown of facilities and technology costs for different periods, including 2025/2026B, 2025/2026A, and 2026/2027B, as detailed in a table and summarized in Figure 14.

16 ($ millions) 2025/2026B 2025/2026A 2026/2027B 2025/2026A vs 2025/2026B % change 2026/2027B vs 2025/2026B % change 2026/2027B vs 2025/2026A % change Technology needs assessment and 0.50 0.50 - - 0% (0.50) -100% (0.50) -100% Office lease...

AI summary The document outlines budgeting for facilities and technology costs, considering actual 2025/2026 expenses, lease agreements, and planned employee numbers for the 2026/2027 fiscal year. The table highlights changes in various cost categories, including a 100% decrease in some items and increases in others.

- 22 Based on the table above, we note the following observations: - 23 2026/2027B is 79% higher than 2025/2026B and 36% higher than 2025/2026A. Per IESO Nova Scotia, 24 these differences are largely attributable to changes in "IT applicat...

AI summary The text discusses the significant increase in 2026/2027B compared to previous fiscal years, primarily due to IT application software, office lease, and other tech costs. These increases are attributed to the full-year inclusion of these expenses and the annualization of certain sub-categories. The 'employee technology hardware and software' sub-category was moved to capital expenditures under a provincial grant.

19 5.3.6 Capital requirements - 20 Given that there remains considerable work to be done to build out the Phase II transition roadmap, IESO Nova 21 Scotia stated that there may be additional costs that have not been anticipated. Specifical...

AI summary IESO Nova Scotia anticipates unanticipated capital requirements for Phase II transition, including control room facilities, dispatch systems, and cybersecurity infrastructure. These costs depend on ongoing third-party planning and have not yet been quantified due to incomplete technical designs. Final estimates will be submitted to the Nova Scotia Energy Board for approval.

6.3.3 Good utility practice and comparable organizations – deferral of capital costs - As part of our initial review of the Net OM&A Variance Deferral Account as proposed in M12412, we considered GUP - and other deferral accounts implement...

AI summary The document reviews the Net OM&A Variance Deferral Account proposed in M12412, comparing Nova Scotia's approach with Canadian ISOs. It notes that capital cost deferral is uncommon among Canadian ISOs due to lack of transmission ownership, but analyzes Ontario IESO's FVDA and AESO's DAR mechanisms. The AESO indirectly addresses capital cost variances through tariff reconciliations.

Response - IR-10 - (a) Yes. Utilities typically own and operate transmission and generation assets and recover capital investments over time. This allows utilities to stabilize customer rates when expenses differ from forecasted amounts, m...

AI summary The response discusses the differences between utilities and ISOs regarding capital deferral practices, emphasizing the need for governance and control measures. It references prior Board direction for the IESO to develop guidelines and highlights the importance of prudence reviews and accounting policies.

10 Request IR-17: - 11 Reference: N-1(i), Exhibit B-2, pdf p.16-18 (Corporate Administration) notes office costs - 12 increase to ~$0.10 million and website development is now treated as capital; and N- - 13 1(i),Exhibit B-2, pdf p.25-26 m...

AI summary Request IR-17 seeks IESO-NS's capitalization policy for reclassifying office costs, website development, and technology expenses (e.g., hardware/software) from operating to capital expenses, requiring reconciliation between fiscal years 2025/26 and 2026/27.

dentify any changes in role counts or scope. 2. Please identify any roles that were expected in 2025/26 but were not transferred/hired or were re-scoped for 2026/27 and quantify the variance impact. Reference: N-1(i), Exhibit B-2, pdf p.16...

AI summary The text requests information on changes in role counts and scope, capitalization policy for technology and website spend, regulatory proceedings breakdown, and standard RFP clauses for reimbursement. It references specific exhibits and pages in the document.

If so, please file or at minimum, describe. 4. If Phase II slips beyond Q2 2027, which subscriptions may be deferred or paused? Please quantify monthly savings under a six-month and 12-month delay. Reference: N-1(i), Exhibit B-2, pdf p.24-...

AI summary The text outlines several questions and requests for clarification regarding lease agreements, control room location, financing costs, interest rate assumptions, draw profiles, and the necessity of external IRP consulting. Specific references are provided to exhibits and pages in the document.

.56M in ongoing expenses as part of the facilities and technology cost category. This cost category consists of costs incurred in respect of IESO Nova Scotia's physical premises and technology needs." 1. Please provide the budgeting method...

AI summary The document outlines inquiries regarding budgeting methodology, supporting calculations, and variances in the 'facilities and technology' cost category for IESO Nova Scotia. It also references the removal of the 'Employee Technology Hardware and Software' subcategory from operational expenses and its treatment as a capital expenditure.

n the process for removing these costs from the Employee Technology Hardware and Software subcategory and treating them as capital expenditures. Reference: Exhibit B-2 (page 28, lines 11-13, Finance) IESO Nova Scotia states that "The great...

AI summary The document discusses the budgeting process for finance costs, specifically the increase in financing costs related to the operating line of credit from the Province and the reasons for the increase in payroll and accounting subscription services. IESO Nova Scotia highlights the impact of interest costs on the 2026/2027 budget.

26/2027 budget for payroll and accounting subscription services is 50% higher than the 2025/2026 budget. What is the reason for this increase? Reference: Exhibit B-2 (page 31, lines 8-18, Operations) IESO Nova Scotia states that "The diffe...

AI summary The document discusses the increase in the 2026/2027 budget for payroll and accounting subscription services compared to the 2025/2026 budget, citing differences in estimated personnel costs, compensation increases, and burden assumptions. It also requests detailed budgeting methodologies and supporting calculations for various cost categories.

ate actual results for all the transitional costs detailed in Table 2. In your response, provide explanations for any variances from the 2025/2026 budget. Reference: Exhibit B-3 (page 33, lines 9-12) IESO Nova Scotia states that "As there...

AI summary IESO Nova Scotia acknowledges potential additional capital costs for Phase II implementation, including technology requirements and market rule adjustments. Specific estimates include $0.36M for control room readiness and $0.5M for market rule changes, with costs being estimates as of the application date and subject to variance mechanisms.

or conducting an IRP analysis. On page 8 of its application, IESO Nova Scotia states it will incur capital-related costs and expects to incur costs associated with future energy resource procurement. 1. Please describe the nature of the ca...

AI summary The document outlines questions regarding IESO Nova Scotia's capital-related costs, procurement strategies, cost recovery methods, and regulatory pathways for cost categories. It also references Table 3 on page 12 of the application.

diness (including reliability compliance), and space requirements.” If so, what is IESO NS’s current assessment of these requirements. Request IR-5: Reference: Application, p. 8, lines 17-26 As a result of IESO Nova Scotia’s mandate and as...

AI summary The document discusses IESO Nova Scotia's incurred and expected capital-related costs, including those from energy resource procurements, and the need for regulatory approval of these costs. It also references the regulatory pathways for future review and approval in 2026.

3. Retroactivity of Payments The interim monthly fees are sought effective February 1, 2026, owing to the urgency of IESO Nova Scotia's financial circumstances. In the absence of interim funding, IESO Nova Scotia projected that available c...

AI summary IESO Nova Scotia seeks interim monthly fees effective February 1, 2026, due to urgent financial needs. Without interim funding, cash reserves would be exhausted by April 2026. Setting the effective date ensures stable forecasting, avoids volatility, and provides certainty for cash planning while the Board considers interim relief.

ance Mechanism and its governance, and issues raised in relation to the request for interim funding, among others. On April 15, 2026, IESO-NS responded to the requests. In its submissions, it stated: IESO Nova Scotia acknowledges the SBA's...

AI summary IESO-NS acknowledges concerns from SBA regarding insufficient information in its 2026/2027 Revenue Requirement application, attributing gaps to its first year of operation and recent staffing. It asserts efforts to strengthen evidence and suggests remaining issues can be resolved through oral argument. The proceeding involves Board decision M12412 and is chaired by Stephen T. McGrath, Roland A. Deveau, and Jennifer L. Nicholson.

27 DGT Report, Review of Revenue Requirement Application by the Nova Scotia Independent Energy System Operator (M12663), March 31, 2026, page 6. 596 direction to the new DVM, along with any other new direction, is ultimately at the discret...

AI summary The document discusses the treatment of capital costs within the Net Revenue Requirement Deferral and Variance Mechanism (DVM) as proposed by the Independent Energy System Operator of Nova Scotia (IESO Nova Scotia). The DVM is intended to account for variances from the approved revenue requirement, including capital costs and energy resource procurements. The Nova Scotia Energy Board (NSEB) has discretion over the direction of the DVM.

29 IESO Nova Scotia 2026/27 Revenue Requirement Application (M12663), January 20, 2026, p.37. 622 623 624 625 626 627 628 Specific types of costs to be included or excluded – at this time, the only costs to be • included are OM&A cost vari...

AI summary The document discusses the inclusion of specific costs in the DVM, emphasizing that only OM&A cost variances from the 2025-2026 and 2026-2027 revenue applications are included at this time. Capital costs will be considered in the future, but only after NSEB approval. The IESO Nova Scotia aims to recover all actual costs, regardless of type, due to its not-for-profit status.

IESO NOVA SCOTIA PANEL 175 Cr-ex, (MacAdam) 1 undertake to investigate the difference between the 5.05 2 together. 3 Q. So was it just more work than 4 anticipated, rather than different work than anticipated? 5 A. (Johnston) I would say t...

AI summary The text discusses a variance in budgeting related to computer hardware costs during a transition, which was not fully accounted for in the initial budget, leading to a 115% increase in costs for facilities and technology. The discussion centers on unanticipated volume of work rather than different types of work.

1 concluded, that would be the final approval for that 2 would include these policies. 3 Q. Okay. So on page 48, it talks 4 about "Capitalization Policy Intangible Assets." It 5 talks about, "Intangible assets are recorded at cost less 6 a...

AI summary The discussion centers on the capitalization policy for intangible assets, specifically how they are recorded at cost less accumulated amortization. It also touches on the depreciation being accumulated for the '25/'26 financial period and how provincial funding covers capital expenditures, preventing customer impact from these costs.

IESO NOVA SCOTIA PANEL 237 Cr-ex, (Rudderham) 1 the deferral, a need for us to have depreciation on an 2 asset that we hadn't intended to buy but circumstances 3 laid out that it needed to happen. 4 Okay. Let's bring it back to Q. 5 anothe...

AI summary The discussion revolves around the deferral of capital costs related to synchronous condensers. The IESO NS does not intend to include these costs in the deferral account unless there is a directive for them to purchase such assets, which is currently not expected.

IESO NOVA SCOTIA PANEL 345 Cr-ex, (Rudderham) 1 the possibility it could end up in the deferral account. 2 And sorry Q. 3 THE CHAIR: Sorry; can I just I'm a 4 little unclear in terms of the distinction there with the 5 implementation budge...

AI summary The discussion centers on the potential capitalization of implementation costs for Phase II and the timeline for submitting an application to the ISEO Board. The ISEO anticipates submitting the application by the end of July, with subsequent steps dependent on approval.

IESO NOVA SCOTIA PANEL 347 Cr-ex, (Rudderham) 1 factor that in before we could bring it forwards. So 2 within three months of an approval. 3 So then this Q. 4 THE CHAIR: Sorry; just on that, in 5 terms of the approval of capital costs by t...

AI summary The discussion revolves around the approval of capital costs by the Board under the Public Utilities Act and the More Access to Energy Act. The IESO clarifies that while the Board does not have direct jurisdiction to approve capital costs, such costs may be addressed through revenue requirements as depreciation or interest expense under section 29 of the Act.

IESO NOVA SCOTIA PANEL 371 Cr-ex, (Rudderham) 1 Q. So this is a table of spending by 5 there's this is being a cashflow forecast will be 6 different from accrual accounting and how those costs are 7 then accrued into the fiscal year would...

AI summary The discussion revolves around the difference between cashflow forecasts and accrual accounting, highlighting capital costs and their recovery. It also addresses whether the IESO NS is on track with a specific budget figure of $820,000.

BROWN In-ch, (Mahody) 1 Q. So for costs, particularly of any 1 were describing was really the way that those capital 2 costs come into revenue requirement over time, such as 3 through depreciation or interest expense. So that 4 clarificati...

AI summary The discussion focuses on the deferral of capital costs and their inclusion in revenue requirements over time, particularly through depreciation or interest expense. The speaker emphasizes that while clarification on deferral mechanisms is important, it does not materially change prior statements or responses.