Topic:"Cost Considerations" in M03088

13 - 1 The actual number of units purchased and the associated costs have been amended since NSPI filed the response to UARB IR-5 (First Set of IRs) on July 15, 2010. This change is due to - NSPI's oversight of 6 additional vehicles that w...

AI summary The document discusses corrections to the number of vehicles purchased and their associated costs, noting that NSPI overlooked 6 additional vehicles bought in 2009 and that 16 leased vehicles were incorrectly recorded as purchased.

REDACTED 1 Request IR-4: 2 3 On November 21, 2007 the Board approved NSPI's request for the planned purchase of 31 4 work vehicles. According to the response to IR-1, filed on August 10, 2010,16 of these 5 vehicles were obtained through a...

AI summary NSPI requested approval to purchase 31 work vehicles, with 16 obtained via a capital lease from ARI Fleet Management. The decision to lease was based on cash flow considerations, and a cost-benefit analysis was not conducted.

By E-mail and Courier Ms. Lee Thomson-Lutz Manager, Capital Nova Scotia Power Inc. 14 th Floor, Barrington Tower Halifax, NS B3J 2W5 Dear Ms. Thomson-Lutz: NSPI Request for Approval of 2010 ACE Plan Work Order Greater Than $1 Million: CI #...

AI summary Nova Scotia Power Inc. (NSPI) requested approval for a $6,064,000 work vehicle replacement under the 2010 ACE Plan. The Board approved the request but expressed concerns about the quality of information submitted and directed NSPI to explain the delay in vehicle purchases and leasing decisions due to cash flow issues.

Nova Scotia Utility and Review Board Mailing address PO Box 1692, Unit "M" Halifax, Nova Scotia B3J 353 [email protected] Web www.nsuarb.ca Office 3rd Floor 1601 Lower Water Street Halifax, Nova Scotia B3J 3P6 902 424-4448 t 902 424-391...

AI summary The Nova Scotia Utility and Review Board is requesting detailed information from Nova Scotia Power Inc. regarding its decision to lease rather than purchase 16 work vehicles, the terms of the lease, and a cost-benefit analysis of the alternatives. The Board also seeks clarification on the reduction in the number of vehicles planned for purchase due to changes in the North American automobile industry and uncertainty from the truck supplier.

November 30, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: CI 38852 – Work Vehicle Replacement NSPI Responses to Bo...

AI summary NSPI submitted a cost-benefit analysis showing that leasing 16 work vehicles in 2009 resulted in approximately $125,000 in savings compared to purchasing them, in response to the Board's request for a lifecycle cost comparison.

April 08, 2011 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: CI 38852 – Work Vehicle Replacement NSPI Responses to Board...

AI summary The Nova Scotia Power Inc. (NSPI) leased 16 work vehicles in 2009 due to cash flow issues, which the Board requested a cost-benefit analysis for. NSPI argued that leasing was more cost-effective than purchasing based on a comparison of life cycle costs and the need for financial flexibility, especially considering potential changes in environmental regulations.

of cash flow flexibility was important to the Company in 2009, as considerations about the increase of the capital requirement arising from changing environmental related regulation was not yet known. As a follow up to this discussion, NSP...

AI summary NSPI updated its Net Present Value analysis for a vehicle leasing and buyout decision, aligning purchase timing with lease terms and adjusting the discount factor. The buyout in 2010 was based on cash flow considerations and saved customers $50,000 from a weighted average cost of capital perspective, though not based on detailed financial analysis.