Topic:"Capital Expenditures" in M13133

22 2.1 Thermal Assets - 24 NS Power seeks to securitize $740.6 million, consisting of the unrecovered net book value of - 25 thermal generation assets within the scope of the DDA as at December 31, 2025, together with - 26 deferred financi...

AI summary NS Power is seeking to securitize $740.6 million, which includes the unrecovered net book value of thermal generation assets as of December 31, 2025, and deferred financing costs from May 1, 2026, to November 30, 2026, calculated at a 6.59% WACC. This approach aligns with the 2026-2027 GRA and excludes costs already recovered through customer rates to avoid duplication.

13 Figure 3: Estimate of Upfront Financing Costs Cost Type Estimated Upfront Financing Costs Underwriting Fees $5,000,000 Capital Reserve Account Funding (0.5% of principal) 5,000,000 Legal Fees 1,500,000 Rating Agency Fees 825,000 Account...

AI summary Figure 3 presents an estimate of upfront financing costs, including underwriting fees, legal fees, and other expenses, totaling $12.5 million. These costs are associated with the financing of capital projects and are likely relevant to regulatory considerations regarding capital expenditures and cost recovery.

SPECIAL CONDITIONS (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a cap...

AI summary The special condition outlines that metering is typically installed on the low voltage side of the transformer. If primary metering is required, the customer must contribute to the additional capital cost incurred by the company.

(a) Operating, Maintenance, and Capital (full charge)

AI summary The text references 'Operating, Maintenance, and Capital (full charge)', which likely pertains to cost categorization in regulatory proceedings, involving full charges for operating, maintenance, and capital expenses.

(a) Operating, Maintenance, and Capital (full charge)

AI summary The text references 'Operating, Maintenance, and Capital (full charge)', indicating a category of costs related to operations, maintenance, and capital expenditures that are fully charged.

(1) Incandescent (a) Operating, Maintenance, and Capital (full charge)

AI summary This section outlines the operating, maintenance, and capital full charge costs associated with incandescent lighting.

(a) Operating, Maintenance, and Capital (full charge)

AI summary The text refers to Operating, Maintenance, and Capital (full charge), which likely relates to cost categories in utility regulation, including operational and capital expenditures.

l be less debt in Nova Scotia Power itself. - From an accounting perspective, Nova - Scotia Power will consolidate the limited partnership, but - the credit rating agencies will exclude the billion - dollars of securitization debt when the...

AI summary The discussion focuses on the financial structure and accounting considerations for Nova Scotia Power, including the consolidation of a limited partnership, the exclusion of securitization debt by credit rating agencies, and the establishment of a capital reserve account for credit enhancement purposes.

32 Request IR-15: 33 With respect to the 0.5 percent or $5 million capital reserve: - 1 a) Page 22 states that this level is customary for utilities undertaking securitization in the 2 United States. Please identify the utilities applying...

AI summary The request IR-15 inquires about the 0.5 percent or $5 million capital reserve, asking for examples of utilities in the U.S. using similar securitization fees, whether this is industry standard, and how NS Power estimated this figure to cover temporary collection shortfalls.

Request IR-8: - Reference: Sections 11.0 and 12.1; Figures 10-11; Appendix A - Please provide NS Power's existing accounting memorandum or other supporting analysis for the - proposed securitization transaction, including the applicable ac...

AI summary Request IR-8 asks NS Power to provide an accounting memorandum and supporting analysis for a proposed securitization transaction, covering recognition, reclassification, financing costs, asset transfers, consolidation, balance-sheet presentation, and illustrative journal entries.

Request IR-4: Please refer to Exhibit N-1 the Application, Page 20 of 51, Figure 3, Estimate of Upfront Financing Costs which includes a Capital Reserve Account Funding of 0.5% of the principal amount of $12,500,000, or $5,000,000. This fi...

AI summary The text discusses the Capital Reserve Account Funding of $5,000,000, held in cash and classified as Restricted Cash, and seeks clarification on title ownership, access processes, and potential changes to the reserve amount over time.

Request IR-5: - References: Application page 20 - Nova Scotia Power has requested approval for a $5 Million Capital Reserve Account. - Please relate the size of this requested Account to the bond payment schedule that is expected - to resu...

AI summary Nova Scotia Power has requested approval for a $5 million Capital Reserve Account. The request seeks to understand how this account size relates to the bond payment schedule, particularly whether it is sufficient to manage potential cash flow fluctuations if the bond requires semi-annual payments or has a different payment structure.