Topic:"Capital Expenditures" in M12743

NSEB APPROVAL SHEET Project Title: IT - Identity & Access Management CI Number: C0068714 Date: March 13, 2026 Expenditure Profile Type of Filing Year Budget Amount Project Estimate Capital Project Authorization X Unforeseen and Unbudgeted...

AI summary The document presents an NSEB approval sheet for a capital project related to IT - Identity & Access Management by Nova Scotia Power Incorporated. It includes budget and expenditure details for the years 2024 to 2026, with approval dates and authorized signatories.

Capital Project Detailed Estimate ecution Year: 2025-2026 Cost Support Completed Sin Description Unit Quantity Un it Estimate Total Estimate Reference Projects (FP# Regular La Project Manager Service Now Developer PD PD 190 75 $ 420 420 79...

AI summary The document presents a detailed estimate for a capital project spanning 2025-2026, outlining various roles, quantities, unit costs, and total estimates for IT and security-related personnel and software licenses. The estimate includes labor costs, travel expenses, and software licensing fees.

Table A.1 - Project Costs (CAPEX or OPEX) Project Costs (gross) CAPEX 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Phase 1 - (describe) 530050 Regular Labour CAPEX $ 22,170 $ 170,901 $ 602,514 $ - $ - $ - $ - $ - $ - $ - $ 530200...

AI summary Table A.1 outlines project costs categorized as CAPEX or OPEX, detailing expenses such as labor, consulting, software, and legal services across multiple years from 2024 to 2034. The table provides a breakdown of costs for different project phases and line items.

Table A.4- TCO Financial Summary TCO Total 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total Capital Costs (Line 4) $ 6,756,522 $ 121,418 $ 3,091,122 $ 3,543,983 $ - $ - $ - $ - $ - $ - $ - $ - Total Sustaining Operating Costs (...

AI summary The document presents a financial summary of Total Cost of Ownership (TCO) for various years, including capital costs, sustaining operating costs, operating savings, and net TCO. It also includes a section on Full-Time Equivalent (FTE) requirements, though most data is missing or not provided.

CI C0068714 – IT – Identity and Access Management (NSEB M12743) NSPI Responses to Nova Scotia Department of Energy Information Requests 1 Request IR-1: 8 9 This six-month period is standard procedure for all capital projects and is aligned...

AI summary The text discusses NSPI's response to information requests regarding a six-month standard procedure for capital projects, aligned with NS Power's Board-approved Capital Expenditure Justification Criteria. It also addresses a request for a formal cost-benefit analysis comparing IBM Managed Security Services with in-house identity and access management capabilities.

CI C0068714 – IT – Identity and Access Management (NSEB M12743) NSPI Responses to Industrial Group Information Requests 1 Request IR-3: 24 predefined application blocks, combining one-time integration costs with ongoing license 25 fees, wh...

AI summary NSPI outlines the transition of onboarding costs from CAPEX-heavy to OPEX-driven, based on predefined application blocks and licensing models. Operational cost escalations may occur due to increased user populations, application onboarding volumes, and variability in service consumption. Confidence in OPEX forecasts is moderate to high, grounded in contractual pricing and established licensing models.

Pricing Comparison When a successful proponent is selected, the TCO will undergo a final refinement for the Capital Work Order for NSPI's UARB filing and Business Case presentation to TECO Affiliates Presidents.

AI summary The document outlines post-proponent selection steps involving refinement of the Total Cost of Ownership (TCO) for NSPI's Capital Work Order, UARB filing, and a Business Case presentation to TECO Affiliates Presidents.

REDACTED 1 Request IR-4: 2 3 Refer to Exhibit N-1, the C0068714 Project-Redacted, in the section Contingency Statement, 4 on page 2 of 5 and Reason for Variance, on page 2 of 5 and refer also to Exhibit N-1(C) NS 5 Power Inc. Application f...

AI summary The document discusses responses to information requests regarding the C0068714 Project-Redacted, focusing on the 2026 ACE Plan variance and the capitalization of software costs. It outlines reasons for the increase in the ACE Plan estimate and clarifies that software service agreements are not capitalized, but assets from the project are depreciated over 10 years. Cybersecurity updates are managed by the vendor, with expected updates occurring a few times per year.

1 Request IR-7: 1 • Key stakeholders include IT Operations, IT Security, the Managed Service Provider 2 of NS Power, and select Application teams in scope for IGA. 3 4 3. Work Breakdown Structure (WBS) – Defined on April 30, 2026 5 6 • The...

AI summary The text outlines the status of a project involving IT Operations, IT Security, and the Managed Service Provider of NS Power, highlighting the finalized Work Breakdown Structure (WBS) and ongoing regulatory approval processes. The capital expenditure application (M12743) is under review by the NSEB.

are not met. [13](#page-8-1) As such, NS Power submits that the project cost variance is not attributable to the cybersecurity incident and that there is no basis to disallow AFUDC. 2.3 Contingency Budget The CA submits that the 15% contin...

AI summary NS Power argues that a cybersecurity incident did not impact project AFUDC costs. The CA suggests that the 15% contingency applied to the project is unreasonable, given the project's progress, and recommends reducing it. NS Power explains that contingency covers risks like additional work and infrastructure changes, which are managed through its service provider, OnX.

DATE FILED: July 7, 2026 Page 10 of 17 1 3.0 RESPONSE TO SBA SUBMISSIONS 2 3 The SBA has identified two principal concerns regarding this application. First, it questions 4 whether the cyber incident contributed to cost increases, the over...

AI summary The SBA raises concerns about the impact of a cyber incident on project costs and the completeness of the application. NS Power responds by stating that the project was initially identified in the 2025 ACE Plan and was deferred due to the cyber incident, with resources reallocated to restoration efforts.

trend is expected to accelerate as threats become faster, more sophisticated, and increasingly automated through artificial intelligence. In this environment, identity becomes a core security control. This project enables NS Power to reduc...

AI summary The document discusses the impact of a cybersecurity incident on AFUDC costs, emphasizing the need for modern PAM and IAM capabilities to reduce risk and ensure compliance. It highlights the transition to IBM's MSS and the importance of continuous monitoring and improvement of IAM processes.

used and useful. The SBA questions the relationship between this application and previously approved IT capital projects of similar scope and magnitude, including whether DATE FILED: July 7, 2026 Page 13 of 17

AI summary The document discusses the impact of a cybersecurity incident on Project AFUDC costs, highlighting concerns raised by the SBA regarding the relationship between this application and previously approved IT capital projects of similar scope and magnitude.

NS Power submits that the capital expenditures outlined in this application are reasonable, prudent, and in the best interest of customers. This project is necessary to maintain effective cybersecurity controls and to position NS Power to...

AI summary NS Power argues that the proposed capital expenditures are reasonable, prudent, and in the best interest of customers, emphasizing the need for cybersecurity improvements. The request is for approval of CI C0068714 IT Identity & Access Management.

IN THE MATTER OF the PUBLIC UTILITIES ACT -and- IN THE MATTER OF an application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- Identity & Access Management, $6,756,522 BEFORE: Richard J. Melanson, LL.B.,...

AI summary Nova Scotia Power Inc. seeks approval for a $6.75 million Capital Work Order (CI C0068714) related to IT identity and access management under the Public Utilities Act. The proceeding is before Richard J. Melanson, a regulatory member.

HEARING ORDER Nova Scotia Power Incorporated (NS Power) applied to the Nova Scotia Energy Board on March 13, 2026, for approval of Capital Work Order CI C0068714 – IT- Identity & Access Management, in the amount of $6,756,522. The Board ha...

AI summary Nova Scotia Power Incorporated (NS Power) applied for approval of a Capital Work Order related to IT Identity & Access Management. The Nova Scotia Energy Board has decided to conduct the proceeding as a paper hearing, reserving the right to convert it to an oral hearing if needed.

March 13, 2026 Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax, NS B3J 3S3 Re: Capital Items Filed Outside the Quarter Package Dear Ms. Henwood: Enclosed for your review and approval a...

AI summary A letter dated March 13, 2026, submitted to Crystal Henwood, Clerk of the Board at the Nova Scotia Energy Board, requests review and approval of capital items filed outside the standard quarter package submission process.

2026 ACE Plan Capital Items for Subsequent Approval - CI C0068714 IT Identity & Access Management $6,756,522 2026 ACE amount $4,324,589 $2,478,826 spent as at December 31, 2025 Partially Confidential - CI C0080102 92H-331 Double Circuit Pe...

AI summary The document lists capital items under the 2026 ACE Plan requiring subsequent approval, including IT infrastructure, power line upgrades, turbine refurbishment, and fish passage projects, with details on allocated funds and spending as of December 31, 2025.

IN THE MATTER OF the PUBLIC UTILITIES ACT -and- IN THE MATTER OF an application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- Identity & Access Management, $6,756,522 BEFORE: Richard J. Melanson, LL.B.,...

AI summary Nova Scotia Power Inc. seeks approval for a $6.75 million Capital Work Order (CI C0068714) related to IT identity and access management under the Public Utilities Act. The proceeding is before Richard J. Melanson, LL.B., Member.

HEARING ORDER Nova Scotia Power Incorporated (NS Power) applied to the Nova Scotia Energy Board on March 13, 2026, for approval of Capital Work Order CI C0068714 – IT- Identity & Access Management, in the amount of $6,756,522. The Board ha...

AI summary NS Power applied for approval of a Capital Work Order related to IT Identity & Access Management. The Energy Board will conduct a paper hearing, with the option to convert to an oral hearing if needed.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act - and - IN THE MATTER OF: An application by Nova Scotia Power Inc. for the approval of Capital Work Order CI C0068714 - IT - Identity & Access Management, $6,756,522

AI summary Nova Scotia Power Inc. has applied for approval of a Capital Work Order (C0068714) under the Public Utilities Act, seeking $6,756,522 for Identity & Access Management. The Energy Board is reviewing the request as part of the regulatory process.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act , R.S.N.S. 1989, c.380 as amended - and - IN THE MATTER OF: M12743 – Capital Work Order – C0068714 – IT – Identity and Access Management

AI summary The Nova Scotia Energy Board is addressing a matter under the Public Utilities Act (R.S.N.S. 1989, c.380) involving a Capital Work Order (C0068714) for Identity and Access Management, referenced as M12743.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The PUBLIC UTILITIES ACT -and- IN THE MATTER OF: An application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- Identity & Access Management, $6,756,522

AI summary Nova Scotia Power Inc. seeks approval for a $6.75 million Capital Work Order (CI C0068714) related to Identity & Access Management under the Public Utilities Act. The proceeding involves regulatory approval of the expenditure.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act , RSNS 1989, c 380 as amended - and - IN THE MATTER OF: an application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- Identity & Access...

AI summary Nova Scotia Power Inc. has applied for approval of a Capital Work Order (CI C0068714) for IT Identity & Access Management costing $6,756,522 under the Public Utilities Act, RSNS 1989, c 380 as amended.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act IN THE MATTER OF: An application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- Identity & Access Management, $6,756,522

AI summary Nova Scotia Power Inc. has applied under the Public Utilities Act for approval of a $6.75 million Capital Work Order (CI C0068714) related to Identity & Access Management. The proceeding involves regulatory evaluation of the proposed capital expenditure.

Request IR-8: - In reference to the Capital Project Detailed Estimate: - a) Please explain the basis of the unit estimate for Regular Labour. - b) Why is HR/HR IT included in Regular Labour for implementing a capital project? - c) What is...

AI summary Request IR-8 seeks explanations on the Capital Project Detailed Estimate, including labor cost bases, HR/IT inclusion, IAM roles, travel expenses, license useful life, consulting expenses, and internal staff limitations. Questions focus on cost breakdowns, roles, and justification for external consulting.

1 2026 M12743 2 NOVA SCOTIA ENERGY BOARD 3 IN THE MATTER OF: The Public Utilities Act 4 IN THE MATTER OF: An application by NOVA SCOTIA POWER INC. for the approval 5 of Capital Work Order CI C0068714 - IT- Identity & Access 6 Management, $...

AI summary Nova Scotia Power Inc. (NSPI) seeks approval for a $6.75 million Identity & Access Management project under the Public Utilities Act. The Industrial Group requests details on the 2024 RFP scope, vendor selection, and cybersecurity incident impacts on procurement timelines and contractual arrangements.

- Information Requests in the matter M12743 – Approval of the Capital Work Order CI C0068714 - IT-Identify & Access Management, $6,756,522 - IR-1. The ACE Plan 2025 budget for C0068714 was $1.27M. Please explain the change in scope of work...

AI summary The document contains information requests related to the approval of a capital work order for IT-Identify & Access Management, including questions about budget changes, contingency justification, project maturity status, and the final cost date. The requests aim to understand the scope changes, risk management, and financial planning.

c) Please explain which specific investments areas in these prior projects failed to provide the 'automated credential lifecycle management' and 'credential vaulting', now deemed critical in this application. d) Given that NSPI has frequen...

AI summary The text includes a series of questions related to identity and access management (IAM) and privileged access management (PAM) systems, including past investments, current capabilities, and future capital needs. It also asks about post-breach audit findings, depreciation accounting, and the reasons for not including certain capabilities in earlier IAM projects.

1 M12743 2 3 NOVA SCOTIA UTILITY AND REVIEW BOARD 4 5 6 IN THE MATTER OF: The Public Utilities Act 7 8 – and – 9 10 11 12 IN THE MATTER OF: An application by NOVA SCOTIA POWER INC. for the approval of Capital Work Order CI C0068714 - IT- I...

AI summary The Nova Scotia Utility and Review Board has issued an information request to Nova Scotia Power Inc. regarding a $6.75 million Capital Work Order (CI C0068714) for IT infrastructure under the Public Utilities Act. The Consumer Advocate seeks responses by May 26, 2026, with copies to the Board and legal counsel.

1 Request IR-1: 2 3 Please provide a table or list of all capital projects related to Identity and Access Management, 4 such as CI 49094 approved in the 2021 ACE Plan. Please include any that have been included in 5 an ACE Plan or other ca...

AI summary The request seeks a list of capital projects related to Identity and Access Management from 2016 to 2025, including details like project IDs, budgets, and dispositions, with a specific example referencing CI 49094 from the 2021 ACE Plan.

22 Request IR-2: 23 24 Please explain why this project is needed in addition to CI 409094. If any investments made under 25 CI 409094 are being made redundant or being decommissioned as a result of this project, please 26 provide a full fi...

AI summary The request seeks clarification on the necessity of the project alongside CI 409094 and requires financial details about investments made under CI 409094, including their expected life, amortization, and unamortized balances at decommissioning.

40 Request IR-8: 41 42 With respect to Appendix A, please provide the following information: 43 44 a) Working copy of the TCO Project Financials. 45 b) Identify sources of each figure included in the analysis, and provide supporting 46 doc...

AI summary Request IR-8 asks NSPI to provide TCO Project Financials, source documentation, trend explanations for Table 2 A.2 items, and details on cost minimization steps taken during project design and implementation.

Referring to M12743, Exhibit N-1, NS Power Inc. Application for Approval of Capital Work Order CI C0068714 – IT – Identity & Access Management, $6,756,522, Redacted, dated March 13, 2026, (the "C0068714 Project - Redacted"), page 1 of 5, a...

AI summary The text refers to a capital work order application by NS Power Inc. and asks for an explanation of the difference between 'IAM procedures and tools' and 'Core deliverables'.

Request IR-4: Refer to Exhibit N-1, the C0068714 Project-Redacted, in the section Contingency Statement, on page 2 of 5 and Reason for Variance, on page 2 of 5 and refer also to Exhibit N-1(C) NS Power Inc. Application for Approval of Capi...

AI summary The text references Exhibit N-1, specifically the Contingency Statement and Reason for Variance on page 2 of 5, and Exhibit N-1(C), which details NS Power Inc.'s application for approval of a $6,756,522 Capital Work Order for IT Identity & Access Management. The document highlights a partially confidential attachment related to the project.

Request IR-5: Refer to the C0068714 Project-Redacted which states on page 1 of 5 that the Estimated Life of the Asset is 10 Years and please confirm: - a) That NS Power is capitalizing the software service agreement due to the Estimated Li...

AI summary Request IR-5 seeks confirmation from NS Power on two matters: (a) whether the 10-year estimated asset life justifies capitalizing a software service agreement, and (b) if cybersecurity updates are required for the software and their expected frequency, referencing the C0068714 Project-Redacted document.

arly in the project alternative review process. Just four years later – and only two to three years after the PAM projects' assets were placed in service – NS Power issued the RFP for the IAM project. Given the circumstances identified abo...

AI summary The Consumer Advocate raises concerns about NS Power's decision to pursue the PAM project, suggesting that SaaS could have been a more reasonable option at the time. Additionally, concerns are raised regarding the proposed amortization accounting for PAM assets and whether it aligns with NS Power's accounting policies.

Contingency Budget: As noted above, NS Power's application proposes a 15% contingency budget based on the project being in decision gate 4 (DG4) which it states "corresponds to an industry-standard contingency range of 10 to 30%."[21](#pag...

AI summary NS Power's application proposes a 15% contingency budget for a project in decision gate 4, citing industry standards. Actual spending through February 2026 is $2.7 million, about 45% of the project budget less contingency. The Consumer Advocate suggests adjusting the contingency based on the project's increased maturity and spending progress.

Total Cost of Ownership: The forecast operating costs for software acquired by the IAM project are 78% of the Total Cost of Ownership (TCO), while the capital costs being submitted for approval in this application represent just 33% of the...

AI summary The text discusses the Total Cost of Ownership (TCO) for software acquired by the IAM project, noting that operating costs make up 78% of TCO, while capital costs are 33%. NS Power has confidence in its operating expense forecast but did not outline steps to reduce these costs. The Consumer Advocate submitted these comments for the Board's consideration.

June 16, 2026 VIA EMAIL Ms. Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12743 - Nova Scotia Power Incorporated's application for approval of Capit...

AI summary Nova Scotia Power Incorporated has applied for approval of a capital work order to update its IT Identity & Access Management system, citing cybersecurity and regulatory compliance needs. The project involves engaging IBM to implement a Privileged Access Management ecosystem and related tools, with an estimated cost of $6,756,522.

2. Previous Projects: Other capital investment projects have come before the Board in recent years that are related to IT system upgrades similar in cost level to this Application, i.e., in the million-dollar range, and bearing similar des...

AI summary The Small Business Advocate raises concerns about the incomplete cost picture of the proposed PAM system replacement, noting that prior IT investments may still have value and that full deployment costs should be disclosed. The application is compared to previous similar projects, and depreciation timelines are referenced.