N-52024-2025 Bates White FAM Audit Report - Redacted
8 passages
In our report for the prior audit period, we offered one solid fuel procurement recommendation. We concluded and recommended: Conclusion IV-18: As NSPI's solid fuel consumption continues to fall, NSPI may face more difficult conditions in...
AI summary The audit report highlights NSPI's challenge in managing fuel procurement as solid fuel consumption decreases, particularly with contracts requiring minimum volume thresholds. NSPI accepted the recommendation to model shortfall payments and has since renegotiated the relevant contract to eliminate minimum volume provisions, addressing the issue.
nt and approval, and NSPI's ability to secure a zero-dollar lease rate for the trial period was a substantially positive outcome. However, key terms, including mobilization costs, were not documented. Conclusion IV-29: NSPI's decisions reg...
AI summary The document discusses NSPI's rail line maintenance decisions, the use of Purchase Orders for FAM-related transactions, and the execution of agreements for solid fuel services. It highlights reasonable decisions and the need for improved documentation and standardization of Purchase Orders.
to Aligne and Oracle. Conclusion V-7: NSPI's fuel handling costs at International Pier and Point Tupper Marine Terminal decreased by 67 percent and 42 percent, respectively, from the prior year. Conclusion V-8: NSPI undertook several studi...
AI summary NSPI experienced significant reductions in fuel handling costs at two marine terminals. Contract compliance with solid fuel suppliers was positive, and inventory management was reasonable. In 2025, NSPI deferred coal deliveries due to a compliance certificate affecting fuel mix and hedging strategies.
VI.B.6. NSPI's Suppliers of Biomass Fuel During the Audit Period, NSPI contracted with suppliers of biomass fuel. These included sawmills, plus Some supply agreements effective during the Audit Period were executed in 2023, with others exe...
AI summary NSPI contracted with biomass fuel suppliers during the Audit Period, including sawmills, with agreements executed in 2023, 2024, and 2025. Contracts included volume requirements, fuel categories, prices, payment terms, quality standards, and supplier certifications. Figure VI-6 summarizes the suppliers of solid fuel.
Figure VI-10: NSPI new biomass supply contracts (Q2 2025) Supplier Product Quantity (GMT) Term Primary Fuel Log Chips Primary Forest Fuel Chips Secondary Forest Biomass (Bark) In the second quarter of 2025, NSPI reported its new biomass fu...
AI summary NSPI reported a new biomass fuel supply agreement effective January 1, 2026, through December 31, 2026. However, the execution date of January 1, 2026, conflicts with the timing of its reporting in a quarterly FAM report. A recommendation is made for NSPI to include execution dates for all contracts.
ludes a revised storage configuration that uses smaller and lower height biomass fuel storage piles, rather than fewer larger piles, in order to improve ventilation and reduce compaction in the piles. Revisions to, Extension of Shared Serv...
AI summary The document discusses revisions to the storage configuration of biomass fuel piles to improve ventilation and reduce compaction. It also outlines the Shared Services Agreement between NSPI and PHP, including the energy balance process for allocating fuel consumption between the two entities.
VI.B.1.j. Contract Quantities NSPI received biomass fuel from entities during the Audit Period: The tables below show, for each supplier, the total contracted minimum volume, total received volume, and the resulting overage or underage for...
AI summary NSPI received biomass fuel from various entities during the Audit Period, with tables detailing contracted minimum volumes, received volumes, and overage or underage for each biomass product. References to the NSPI Fuel Manual and related agreements are provided for context.
he PHB boiler, and consumption in 2025 was the highest in several years. NSPI has also taken steps to adapt to the challenges in procuring bark, including higher primary fuel blends in PHB's fuel mix. Conclusion VI-10: Some of NSPI's execu...
AI summary NSPI's executed contracts lacked execution dates, and in 2024, NSPI incurred FAM costs related to biomass inventory pile combustion from PHP. The contract language does not clarify NSPI's responsibility for incremental costs. NSPI also adapted to challenges in procuring bark by using higher primary fuel blends. The energy balance process was appropriately codified into the Shared Services Agreement.