N-1Application - Redacted
12 passages
1 1.0 INTRODUCTION 2 3 NSP Maritime Link Incorporated (NSPML, Company) makes this Application for 4 approval of an assessment from Nova Scotia Power Incorporated (NS Power) for 5 recovery by NSPML of its 2027 and 2028 revenue requirements....
AI summary NSP Maritime Link Incorporated (NSPML) is seeking approval to recover its 2027 and 2028 revenue requirements, totaling $200.3 million and $191.5 million respectively. The request includes operating and maintenance costs, depreciation, interest, and financing costs, with adjustments to debt and equity financing costs and inflationary impacts. NSPML also proposes an alternate approach for the 2027 marine survey due to its materiality and prudence for customers.
10 11 12 13 14 15 As has been the case since 2018, NSPML will continue to invoice NS Power for recovery of its approved 2027 and 2028 assessments in equal monthly instalments ($13.46 million per month for 2027, and $12.79 million per month...
AI summary NSPML will continue to invoice NS Power for the recovery of its approved 2027 and 2028 assessments in equal monthly instalments, with specific adjustments for FLG2 costs and marine survey costs. The depreciation costs are increasing due to the full-year expense of the rock protection campaign in 2027 and the implementation of the station control monitoring system update in 2028.
3 2.3.1 Original Capital Costs 4 5 In the Final Project Costs Decision (M10206), the NSEB approved NSPML's 6 depreciation policy as developed from the depreciation study conducted by Gannett 7 Fleming. This policy is built on the overridin...
AI summary The NSEB approved NSPML's depreciation policy based on a 2021 study by Gannett Fleming. NSPML plans to update the study within six months of completing the Cable Protection Project in Q3 2026, following a recommendation from Grant Thornton in the 2025 Assessment Decision.
21 2.3.2 Sustaining Capital 22 23 NSPML anticipates that it will incur capital expenditures in 2027 of $0.5 million for 24 routine capital expenditures and $ in 2028. $ (pending 25 application and approval) in 2028 relates to upgrades to t...
AI summary NSPML anticipates capital expenditures of $0.5 million in 2027 and additional costs in 2028 for the Station Control Monitoring System (SCM) upgrade. Routine capital expenditures are being sought for approval in this Application, while a separate application will be filed for the full project costs due to exceeding the $1 million threshold.
Table 3 Capital Initiatives Comments 2027 2028 (Amounts in $millions) Recurring, smaller expenditures including Routine Capital 0.5 1.5 any maintenance, repairs, alterations, & Routine Spares improvements, replacements, renewals and additi...
AI summary Table 3 outlines capital initiatives for 2027 and 2028, highlighting recurring expenditures such as maintenance, repairs, and replacements. The increase in 2028 is attributed to the purchase of IGBT spares, with a total of $0.5 million allocated for the Station Control Monitoring System.
2.3.3 Capital Depreciation 12 13 14 15 16 17 11 Consistent with the Final Costs Decision and its approved depreciation policy, NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028 which is calculated in ac...
AI summary NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028, consistent with the Final Costs Decision. The increase in 2027 is due to the Cable Protection Project, and the increase in 2028 is due to the SCM upgrade. Adjustments from close-out matters are not expected to have a material impact.
12 2.4.1 Annual Net Interest Costs 13 14 The requested recovery of annual net interest costs in 2027 is $36.7 million. This 15 represents total coupon interest costs of $36.1 million, letter of credit fees of $0.4 16 million, interest on d...
AI summary The document discusses the requested recovery of annual net interest costs for 2027 and 2028, including coupon interest, letter of credit fees, and interest on debt financing, partially offset by interest revenue and disallowed expenses. It also outlines the financing structure for the Maritime Link project, including bond guarantees and repayment schedules.
15 Key considerations include: 16 17 NSPML's borrowing rates are higher than NS Power's due to the absence of a credit 18 rating and the pledging of all assets under FLG and FLG2. 19 Based on NSPML's understanding of the traditional applic...
AI summary NSPML faces higher borrowing rates due to the absence of a credit rating and asset pledging under FLG and FLG2. Smoothing mechanisms may lead to adverse WACC impacts for customers, and NSPML lacks a balancing mechanism like FAM, complicating debt-to-equity ratio management. NSPML would comply with smoothing if directed by the Board but requests flexibility to adjust DER impacts and revisit the approach if needed.
1 5.0 ASSET MANAGEMENT OUTLOOK 2 3 Similar to NSPML's update in the 2026 Assessment Application, material near to midterm expenditures continue to be the Cable Protection Project23 4 and updating or 5 replacement of HVDC station controls....
AI summary The document discusses the asset management outlook for the Maritime Link, highlighting planned sustaining capital projects and maintenance activities. It notes that the Maritime Link has been in service since 2018 and outlines the need for periodic capital expenditures due to factors like obsolescence and performance degradation.
24 5.1 Five Year Outlook - Planned Sustaining Capital Projects (2027-2032) 25 26 There are two material sustaining capital initiatves in progress and under development 27 in the near term; the first is the Submarine Cable Protection Projec...
AI summary The document outlines two major sustaining capital initiatives: the Submarine Cable Protection Project and the replacement of the Station Control Monitoring system. Other sustaining capital requirements are expected to be routine over the 2027-2032 period.
23 NSPML Cable Protection Project (M12285). 1 5.2 2026 Submarine Cable Protection Project 2 3 NSPML received approval by the NSEB of this initiative under Board Matter number 4 M12285 in Q4 2025. A portion of the work was accelerated from...
AI summary NSPML received approval for the 2026 Submarine Cable Protection Project under Board Matter M12285 in Q4 2025. Some work was accelerated into 2025 due to vessel availability, with the remaining scope expected to be completed in Q3 2026. The project is currently within budget. Additionally, NSPML plans to update the Station Control and Monitoring (SCM) system in 2028 due to obsolescence, with further details to be submitted in a future capital application.
1 5.4 Routine – General 2 3 NSPML's routine capital program is for recurring annual expenditures of like-for-like 4 replacement of small pieces of equipment, upgrades or restoration to property and other 5 small additions as required. The...
AI summary NSPML's routine capital program involves annual expenditures for replacing and upgrading small equipment and property, with an estimated annual budget of $0.5 million. The exact amount may vary each year based on operational needs.